Document:

Unassociated Document

    Exhibit
10.2

     

    LOAN
AGREEMENT

     

    

     

    between

     

    LLOYDS TSB BANK PLC, a public
limited company incorporated under the laws of England and Wales, acting through
its branch office in Staten Bolwerk 1, 2011 MK Haarlem, The Netherlands, which
branch office is registered with the Trade Register of the Chamber of Commerce
(Kamer van Koophandel)
under number 33185396

     

    - hereinafter Lender -

     

    and

     

    FERROMATIK MILACRON MASCHINENBAU
GMBH, registered in the commercial register of the Local Court Freiburg
i.Br. under HR B 260880, having its business seat at Riegeler Straße 4, D-79364
Malterdingen

     

    - hereinafter referred to as the Borrower -.

     

    

     

    WHEREAS:

     

    (A)           Pursuant
to a financing facility consisting of several debt finance facilities and a
property finance facility entered into by the Lender, Lloyds TSB Finance Ltd.,
and any other assignee and / or participant of them (together the Lenders), the Borrower, and
certain other entities of the Milacron group (as Borrowers or Guarantors) on or about 10
March, 2008 as amended, varied, supplemented, superseded, increased or extended
from time to time, and as further set out in the Asset Based Finance Agreement
(the Facility), the
Lender has agreed to grant certain financing facilities to the Borrower as well
as to other Borrowers.

     

    (B)           As
a part of the Facility, the Lender has agreed to grant to the Borrower a Loan
(as defined below) pursuant to the terms set out herein and subject to the
Finance Documents (as defined below).

     

    NOW, IT IS AGREED as
follows:

     

    
      	
              1

            	
              DEFINITIONS
      AND INTERPRETATION

            

    

     

    
      	
              1.1

            	
              Definitions

            

    

     

    In this
Agreement:

     

    “Agreement” means this Loan
Agreement;

     

    “Asset Based Finance
Agreement” means the agreement entered into by the Lender, the Borrower,
Lloyds TSB Commercial Finance Ltd., MILACRON B.V., MILACRON Netherlands B.V.,
CIMCOOL Europe B.V., CIMCOOL Industrial Products BV, MILACRON Kunststoffmaschinen Europa
GmbH, and DME Europe CVBA (as Borrowers or Guarantors) on or about 10
March, 2008 as amended, varied, supplemented, superseded, increased or extended
from time to time;

     

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

     

    “EURIBOR” means the 1
month interbank rate offered in Euro displayed on Reuters screen page
EURIBOR 01 or, if such page is replaced or Reuters screen service ceases to be
available, such rate as displayed on such other page or service specified by the
Lenders, after consultation with the Clients;

     

    “Facility Amount” means the
maximum aggregate amount to be made available under the Facility which shall be
twenty seven million euros (€27,000,000) at any time outstanding on a revolving
basis;

     

    “Finance Documents” means (i)
this Loan Agreement (ii) the Security Purpose Agreement, (iii) the Asset Based
Finance Agreement and (iv) any agreement in relation to the Facility, including
all other finance or security documents entered into by the Borrower or by any
other Borrower or Guarantor under the Facility or in connection with the
Facility, (iv) all present and future swap, hedging, foreign exchange or other
derivative transactions entered into by the Borrower or by any Borrower or
Guarantor with any person that is a Lender at the time such transaction is
entered into but only for so long as such person is a Lender;

     

    “Material Adverse Change” means
in the reasonable opinion of the Lender a material adverse effect
on:

     

    
      	
               
      

            	
              (a)

            	
              the
      business, operations, property, condition (financial or otherwise) or
      prospects of the Borrower; or

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      ability of the Borrower to perform its obligations under the Finance
      Documents; or

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      validity or enforceability of, or the effectiveness or ranking of any
      Security granted or purporting to be granted pursuant to any of, the
      Finance Documents by the Borrower;

            

    

     

    “Obligor” means the Borrower
under this Agreement, or any present or future Borrower or Guarantor under the
Finance Documents;

     

    “Parties” means the Lender and
the Borrower;

     

    “Tangible Net Worth”, means the total of the
Borrower’s capital employed in form and substance as included in the Borrower's
internal management account, plus retained earnings, less any intangible assets
of the Borrower.

     

    
      	
              1.2

            	
              Interpretation

            

    

     

    This
Agreement is made in the English language. For the avoidance of doubt, the
English language version of this Agreement shall prevail over any translation of
this Agreement. However, where a German translation of a word or phrase appears
in the text of this Agreement, the German translation of such word or phrase
shall prevail wherever such original English word or phrase translated by such
German word or phrase appears in the text of this agreement.

     

    If
certain capitalised terms are not expressly defined herein, such terms shall
have the same meaning in this agreement as is set out in the Asset Based Finance
Agreement.

     

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

     

    
      	
              2

            	
              LOAN

            

    

     

    
      	
              2.1

            	
              The
      Lender shall grant the Borrower loans from time to time in an aggregate
      amount not to exceed EUR 11,160,000.00 (in words: EURO Eleven million
      one hundred and sixty thousand, hereinafter referred to as the Loan or Loan Amount) at any
      time pursuant to the provisions of this Agreement (the Loan Agreement) and the
      Asset Based Finance Agreement.

            

    

     

    
      	
              2.2

            	
              The
      proceeds of the Loans shall be used
solely

            

    

     

    
      	
               
      

            	
              (a)

            	
              to
      finance working capital needs of the Borrowers, including to refinance
      existing credit commitments of any of the Borrowers,
  and

            

    

     

    
      	
               
      

            	
              (b)

            	
              to
      finance working capital needs of affiliates of the Borrowers, including
      through dividends, distributions, intercompany loans, repayment of
      intercompany loans and similar intragroup
  transactions.

            

    

     

    
      	
              3

            	
              PAYMENT

            

    

     

    
      	
              3.1

            	
              The
      Loan shall be paid as follows:  The Lender will provide a
      revolving facility of up to EUR 11,160,000.00, the availability under
      which will reduce in equal quarterly steps of EUR 279,000.00 subject to
      the termination of all facilities under the
  Facility.

            

    

     

    
      	
              3.2

            	
              Payments
      under the Loan shall take place at the Borrower's risk and
      expense.  The Borrower shall request payments by giving a duly
      completed payment request as set out in Schedule 1 to this Agreement (the
      Request) to the
      Lender as set out in Schedule 2 to this Agreement. Each Request is
      irrevocable.

            

    

     

    
      	
              3.3

            	
              The
      Borrower may request any amount, provided that such amount shall not
      exceed

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      undrawn portion of the Loan Amount;
and

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      maximum undrawn amount available under the Facility, as each notified by
      the Lender from time to time

            

    

     

    in each
case on the proposed utilisation date.

     

    
      	
              3.4

            	
              The
      initial payment and all future payments shall only be carried out provided
      that the securities pursuant to the Security Purpose Agreement have been
      effectively granted or their granting is ensured according to the
      reasonable opinion of the Lender.

            

    

     

    
      	
              3.5

            	
              The
      initial payment and all future payments shall further only be carried out
      provided that all information / documents have been submitted to the
      Lender as stipulated in the Asset Based Finance Agreement and all other
      conditions precedent and operation conditions as stipulated in the Asset
      Based Finance Agreement have been satisfied according to the reasonable
      opinion of the Lender, with the exception that the Borrower and Milacron
      Kunststoffmaschinen Europa GmbH may provide notarised copies of identity
      cards of their representatives (Geschäftsführer and
      Prokuristen) also
      within 15 business days after signing of this
  Agreement.

            

    

     

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

     

    
      	
              4

            	
              TERM
      / REPAYMENT

            

    

     

    
      	
              4.1

            	
              The
      Loan term shall end, and all payments under this Loan Agreement shall be
      immediately due and payable, without the requirement of a specific
      termination, on the 5th
      anniversary of the signing of this Loan Agreement (the Final Repayment Date) at
      the latest.

            

    

     

    
      	
              4.2

            	
              At
      the end of the term of the Loan pursuant to clause 4.1, or in the case of
      prior termination of the Loan to the date of total repayment, the entire
      amount of the Loan that has not yet been repaid including accumulated
      interest, fees and other contributions are immediately due for
      payment.

            

    

     

    
      	
              4.3

            	
              Subject
      to clause 4.1 and  4.2, the Borrower may at any time prior to
      the Final Repayment Date repay the then outstanding Loan Amount in part or
      in full to the Lender. The Borrower shall notify the Lender of any such
      repayment as set out in Schedule 2 to this
  Agreement.

            

    

     

    
      	
              4.4

            	
              All
      payments of the Borrower under this Loan Agreement are to be paid in EURO
      to the bank account of the Lender pursuant to clause 16.2 (Repayment Bank
      Account).

            

    

     

    
      	
              5

            	
              INTEREST

            

    

     

    As of the
date of payment, the Loan shall be charged with interest annually at an interest
rate of 2,00 % points above the 1-month-Euribor.  The interest is to
be calculated in relation to the daily balance outstanding, accrued until the
end of the month and settled in arrears on the first business day of each
calendar month for the previous month.

     

    
      	
              6

            	
              FEES
      / CHARGES / COMPENSATION

            

    

     

    
      	
              6.1

            	
              The
      arrangement fee of 0,5% of the Loan Amount is due and payable on the
      closing date of this Agreement.

            

    

     

    
      	
              6.2

            	
              The
      unused line fee of 0,25% of the Loan Amount shall be calculated based on
      the monthly average of the daily unused amounts under this Loan Agreement
      and shall be charged monthly.

            

    

     

    
      	
              6.3

            	
              The
      Borrower is obligated to pay the Lender a service charge in the aggregate
      amount of EUR 10.500 per month with regard to the servicing of the entire
      Facility shall be due by all parties, other than the Lender, of the
      Finance Documents, jointly and severally.  The service charge
      shall be due monthly on the first working day of each calendar month and,
      to the extent charged to the Borrower, shall be retained by the Lender
      through deduction from the amount of the
Loan.

            

    

     

    
      	
              6.4

            	
              If
      part of the Loan is granted as a guarantee, letter of credit or any other
      bond, a monthly fee shall be charged by the Lender at the rate equal to
      the margin charged for that month. For the avoidance of doubt, this fee
      does not include the Lender’s normal charges for issuing that bond, which
      will be charged in addition.

            

    

     

    
      	
              6.5

            	
              All
      costs (including reasonable out of pocket legal fees) and taxes incurred
      in connection with entering into and the execution of this Agreement and
      the security as well as all costs incurred in connection with foreclosure
      of the security and for the retransfer of security shall be borne by the
      Borrower.

            

    

     

    
      	
              6.6

            	
              The
      Borrower shall compensate the Lender upon first demand for all expenses,
      which have incurred, or will incur respectively, in connection with the
      preparation, the conclusion and the execution of this Loan Agreement,
      including the evaluation and granting of security (Sicherheitenbewertung and
      Sicherheitenbestellung).  These fees are due and payable
      whether or not the Loan will be granted and paid out to the Borrower for
      whatever reason.

            

    

     

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

     

    
      	
              6.7

            	
              The
      Borrower shall compensate the Lender upon first demand also for expenses
      of the Lender, which incur due to or in connection with the enforcement or
      other such protection of claims and rights resulting from or on the basis
      of this Loan Agreement, including the realisation of security (Sicherheitenverwertung).

            

    

     

    
      	
              6.8

            	
              Without
      prejudice to the foregoing, other reasonable fees or expenses may be
      charged where it is reasonably necessary to delegate any of the Lender’s
      functions as agent, security agent, or where an exceptional workload is
      involved. Such fees are to be agreed with the Borrower before being
      incurred.

            

    

     

    
      	
              6.9

            	
              All
      amounts respectively do not include statutory value-added tax (VAT), which
      may be applicable.

            

    

     

    
      	
              7

            	
              PREMATURE
      TERMINATION

            

    

     

    
      	
              7.1

            	
              Subject
      to clause 7.2 if this Agreement is terminated for any reason prior to the
      second anniversary of the signing of this Loan Agreement (Commencement
      Date), the Borrower shall pay, on a joint and several basis with all
      parties of the Finance Documents other than the Lenders, an early
      termination fee of 1% of the Facility Amount in aggregate to the
      Lenders.

            

    

     

    
      	
              7.2

            	
              The
      provisions of clause 7.1 will not apply in the event that the Lenders
      terminate this Agreement in accordance with the terms of the Finance
      Documents as set out in clause 5.2 of the Asset Based Finance
      Agreement.

            

    

     

    
      	
              7.3

            	
              At
      any time after the second anniversary of the commencement date, the
      Borrower may terminate this Agreement by giving at least 3 months notice
      to the Lender or at the Borrower’s sole discretion, by the Borrower, on a
      joint and several basis with all parties of the Finance Documents other
      than the Lenders, paying the Lenders the sum of US$200,000 (or the
      equivalent amount in Euro as at the date of payment) in aggregate to
      terminate this Agreement immediately at any
  time.

            

    

     

    
      	
              8

            	
              PAYMENTS

            

    

     

    
      	
              8.1

            	
              All
      payments of the Borrower under this Loan Agreement are to be paid by the
      due date to the Repayment Bank Account.  The Borrower is not
      entitled to assert set-off or retention rights (Aufrechnungs- oder
      Zurückbehaltungsrechte).  The payments of the Borrower
      shall not discharge the debt until the amount to be paid has been credited
      to the Lender's bank account.

            

    

     

    
      	
              8.2

            	
              If
      a due date of payment is not a bank working day, the payment shall be due
      on the following bank working day if this day is still in the same
      calendar month; otherwise, the payment shall already be due on the
      directly preceding bank working day.  Bank working days are days
      on which the banks are generally open at the place of business of the
      Borrower and the Lender.

            

    

     

    
      	
              8.3

            	
              If
      the Borrower makes payments, which are not sufficient to cover all of the
      outstanding debts under this Loan Agreement, the Lender can credit the
      received amounts against the outstanding debts that are due under the Loan
      Agreement as it sees fit.  Deviating instructions of the
      Borrower are not to be taken into
consideration.

            

    

     

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

     

    
      	
              9

            	
              DEFAULT
      OF PAYMENT

            

    

     

    
      	
              9.1

            	
              If
      amounts that are to be paid under the Loan Agreement are not rendered or
      only partly rendered on the due date, the Borrower shall be in default of
      payment without the requirement of a
reminder.

            

    

     

    
      	
              9.2

            	
              If
      the Borrower is in default with payments under this Loan Agreement, the
      Borrower shall pay default interest as of the date of default in the
      amount of 8 % p.a. above the interest rate, which results from the opening
      notification (Eröffnungsnotierung) of
      the one month EURIBOR on the next bank working day following the date of
      default until the corresponding payment has been credited to the Lender's
      bank account.

            

    

     

    
      	
              9.3

            	
              Irrespective
      of clause 9.2, the Lender is entitled to claim compensation for damages
      due to default according to the statutory
  provisions.

            

    

     

    
      	
              9.4

            	
              The
      Borrower shall render the default interest upon the first demand of the
      Lender without reasonable delay to the Lender's bank
    account.

            

    

     

    
      	
              10

            	
              GUARANTEES
      OF THE BORROWER

            

    

     

    The
Borrower warrants and guaranties by way of an independent and no-fault guarantee
that

     

    
      	
               
      

            	
              (a)

            	
              the
      fulfilment of the obligations resulting from the Loan Agreement, including
      the security agreements does not:

            

    

     

    
      	
               
      

            	
              (i)

            	
              violate
      applicable law or applicable regulations of the government or an official
      authority, or against a decision or ruling of a competent
      court;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              conflict
      with an agreement or certificate or constitute a violation against such
      agreements, or conflict with a permit or other authorisation, which the
      Borrower must observe or to which the Borrower is bound;
  or

            

    

     

    
      	
               
      

            	
              (iii)

            	
              violate
      or conflict with the provisions of the articles of association, a
      resolution of the executive board or of the shareholders and/ or the
      bylaws of the company;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      Borrower holds all rights and titles resulting from the security;
      and

            

    

     

    
      	
               
      

            	
              (c)

            	
              all
      of the information transmitted and to be transmitted to the Lender within
      the scope of this Loan Agreement is complete and correct or will be
      complete and correct.

            

    

     

    
      	
              11

            	
              SUBMISSION
      OF DOCUMENTS, OBLIGATION TO PROVIDE
INFORMATION

            

    

     

    
      	
              11.1

            	
              The
      Borrower shall, upon request of the Lender, provide proof by submitting
      appropriate documents that it has fulfilled the warranty according to
      clause 10 of this Loan Agreement.

            

    

     

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

     

    
      	
              11.2

            	
              The
      Borrower shall send its annual report and its audited annual financial
      statement to the Lender for the duration of this Loan Agreement
      immediately upon each respective compilation, at the latest, within eight
      months after expiration of its financial
year.

            

    

     

    
      	
              11.3

            	
              The
      Borrower shall inform the Lender without reasonable delay of all essential
      matters, which are capable of hindering or endangering the proper
      fulfilment of this Loan Agreement.

            

    

     

    
      	
              11.4

            	
              In
      particular, the Borrower shall immediately inform the Lender of the
      following circumstances:

            

    

     

    
      	
               
      

            	
              (a)

            	
              every
      material fact or matter which the Borrower knows, or ought to have known,
      which might influence the Lender in deciding whether or not to enter into
      this Agreement or to accept any person as an surety or
      guarantor;

            

    

     

    
      	
               
      

            	
              (b)

            	
              if
      a Material Adverse Change occurs;

            

    

     

    
      	
               
      

            	
              (c)

            	
              if
      material changes to the business or company structure of the Borrower are
      planned; this includes changes in the rights of representation of the
      Borrower;

            

    

     

    
      	
               
      

            	
              (d)

            	
              In
      addition, the Borrower is obliged to forthwith inform the Lender about all
      circumstances affecting its business which could be material to the Lender
      in the Borrower’s reasonable opinion and to provide the relevant
      documents.

            

    

     

    
      	
              11.5

            	
              The
      Lender or a third party on its behalf is entitled at any time after giving
      1 (one) day notice to examine at the Borrower’s premises books, data,
      accounts, written documents, records or other sources of information of
      the Borrower in so far as they relate to information which are subject to
      this contract. In order to carry out the review, the Lender or a third
      party on its behalf is entitled at any time during normal business hours
      to reasonable access to the business premises of the
    Borrower.

            

    

     

    
      	
              11.6

            	
              At
      the reasonable request of the Lender, it shall be provided with copies,
      and if necessary the originals, of the sources of information set out
      above.

            

    

     

    
      	
              12

            	
              FINANCIAL
      COVENANTS

            

    

     

    
      	
              12.1

            	
              Tangible
      Net Worth: The Borrower must ensure that, at all times, the Tangible Net
      Worth shall not fall below EUR 20,000,000.00 (in words: Euro Twenty
      million).

            

    

     

    
      	
              12.2

            	
              The
      Borrower acknowledges that, at all times, other covenants as provided for
      in the Asset Based Finance Agreement are to be adhered to at group
      level.

            

    

     

    
      	
              13

            	
              SECURITY

            

    

     

    
      	
              13.1

            	
              The
      Borrower shall provide the Lender (or a Security Agent named by the
      Lender) with certain security according to a security purpose agreement
      entered into between the Parties and other entities (the Security Purpose
      Agreement) in order to secure claims resulting from this Loan
      Agreement as well as to secure claims resulting from other Finance
      Documents, in each case pursuant and subject to the Security Purpose
      Agreement.

            

    

     

    
      	
              13.2

            	
              The
      details regarding the provision / assignment of securities to the Lender
      (or a security agent designated by the Lender), the purpose of the
      security, the increase, realisation and release of security are set out in
      the Security Purpose Agreement.

            

    

     

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

     

    
      	
              14

            	
              TERMINATION

            

    

     

    
      	
              14.1

            	
              The
      Lender is entitled to refuse payment of the Loan amount, in total or in
      part, or to terminate the Loan Agreement with immediate effect,
      if

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      Borrower does not render repayment of amounts that are due on
      time;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      Borrower breaches other duties resulting from this Loan Agreement,
      including the Guarantees as stipulated in clause 10, or from the Finance
      Documents, as well as those obligations resulting from the Security
      Purpose Agreement or from the security agreements listed therein and these
      breaches of duty including their consequences are not remedied within 10
      business days after written notice issued by the
  Lender;

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      Borrower does not honour its payment obligations at the time of maturity
      resulting from other commitments to the Lender or does not properly fulfil
      guarantee obligations, which it granted to the
  Lender;

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      Borrower declares insolvency or a moratorium;

            

    

     

    
      	
               
      

            	
              (e)

            	
              the
      Borrower does not fulfil a written request of the Lender to increase the
      security according to clause 2.2 of the Security Purpose Agreement within
      14 days after receipt of this
request;

            

    

     

    
      	
               
      

            	
              (f)

            	
              the
      Borrower voluntarily subjects itself to liquidation
      proceedings;

            

    

     

    
      	
               
      

            	
              (g)

            	
              insolvency
      proceedings are applied or opened against the assets of the Borrower or
      the opening of such proceedings are rejected due to lack of assets, provided that such filing is not frivolous or
      vexatious;

            

    

     

    
      	
               
      

            	
              (h)

            	
              a
      Material Adverse Change occurs, which may endanger the repayment of the
      Loan; or

            

    

     

    
      	
               
      

            	
              (i)

            	
              any
      other Finance Document concluded between the Borrower or other Borrowers
      or Guarantors and the Lenders is terminated for whatever reason with
      termination of any of the debt financing facilities or property financing
      facilities will cause all other debt financing facilities or property
      financing facilities under the Facility to be terminated
      simultaneously.

            

    

     

    
      	
              14.2

            	
              A
      termination due to voluntary liquidation according to clause 14.1 f) is
      excluded if the liquidation is directly connected to a merger or other
      form of fusion with a different company (absorbing company) and the
      absorbing company assumes all of the obligations of the Borrower resulting
      from this Loan Agreement by law or after prior approval of the
      Lender.

            

    

     

    
      	
              14.3

            	
              A
      termination due to a deterioration of assets according to clause 14.1 e)
      or h) is excluded if the Borrower provides additional securities, which
      are assessed by the Lender as being sufficient, beyond the securities
      according to clause 2.1 of the Security Purpose Agreement within 14 days
      after receipt of the written request of the
  Lender.

            

    

     

    
      	
              14.4

            	
              The
      Borrower is obligated to compensate the Lender for the damages and
      expenses, which result from the termination of the Loan
      Agreement.

            

    

     

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

     

    
      	
              15

            	
              ASSIGNMENT,
      SYNDICATION, PARTICIPATION

            

    

     

    
      	
              15.1

            	
              The
      Buyer is entitled to assign, syndicate or grant participations in its
      rights and obligations under this Agreement in accordance with and subject
      to clause 4 of the Assed Based Finance
  Agreement.

            

    

     

    
      	
              15.2

            	
              For
      the avoidance of doubt, the Lender may instruct other entities of the
      Lloyds group with the administration of the Loan without notifying the
      Borrower thereof. Clause 15.1 shall not
apply.

            

    

     

    
      	
              15.3

            	
              The
      Borrower may only assign claims and rights under this Loan Agreement, or
      respectively, encumber such claims with the rights of third parties with
      the prior written approval of the Lender,
      which shall not be unreasonably
withheld.

            

    

     

    
      	
              16

            	
              BANK
      ACCOUNTS

            

    

     

    
      	
              16.1

            	
              Borrower's
      bank account for payment:

            

    

     

    Bank:
Deutsche Bank AG, Freiburg

     

    SWIFT:                      DEUT
DE 6F

     

    IBAN:
DE06 6807 0030 0223 7600 00

     

    Purpose:

     

    
      	
              16.2

            	
              Lender's
      bank account for repayment:

            

    

     

    Bank:
Lloyds TSB Bank plc, Haarlem

     

    Swift:
LOYDNL2A

     

    IBAN:
NL52LOYD0267600089

     

    Purpose: Repayment instalment

     

    
      	
              17

            	
              MISCELLANEOUS

            

    

     

    
      	
              17.1

            	
              Notices
      to be served by the Borrower to the Lender under this Agreement shall be
      made as provided for in Schedule 2 until and unless otherwise notified by
      the Lender in writing and subject to the Agreement as set out in Schedule
      3.

            

    

     

    
      	
              17.2

            	
              Amendments
      to or alterations of this Agreement, including this provision, have to be
      made in writing, unless a stricter form is required by
  law.

            

    

     

    
      	
              17.3

            	
              Should
      individual provisions of this Agreement be fully or partially void or not
      executable, this shall not affect the effectiveness of the remaining
      provisions in this Agreement. The Parties undertake to replace such a void
      or inexecutable provision by a valid or implementable provision which
      comes closest to the economic effect desired by the Parties in relation to
      the void or inexecutable provision. The same applies with respect to an
      incompleteness of this agreement.

            

    

     

    
      	
              17.4

            	
              This
      Agreement is subject to the laws of the Federal Republic of Germany
      excluding conflict of law rules. Place of jurisdiction is
      Berlin.

            

    

     

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

     

    
      	
              17.5

            	
              This
      Loan Agreement shall take effect with the signing by the Borrower and the
      Lender.  The Borrower and the Lender shall each receive one
      original copy of this Loan
Agreement.

            

    

     

    

     

    
      	
              _______________,
      12 March 2008

              [Place,
      Date]

            	
              ________________,
      12 March 2008

              [Place,
      Date]

            
	
               

               

              /s/
      Guy Moillet

               

              [Signature
      Borrower]

            	
               

               

              /s/
      Mark Louman

               

              /s/
      Claudia Roswitha van der Meer

               

              [Signature
      Lender]

            
	
               

              Guy
      Moillet

              Managing
      Director

            	
               

              Mark
      Louman

              Proxyholder

               

              Claudia
      Roswitha van der Meer

              Proxyholder

               

              [Name]

            

    

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

     

    SCHEDULE
1 - Form of Request

     

    

     

    To:           Lender

     

    From:      
Borrower

     

    Date:

     

    

     

    EUR 11,160,000.00
Loan Agreement dated [_____] 2008 (the “Agreement”)

     

    

     

    Dear
Sirs

     

    
      	
              1

            	
              We
      refer to the Agreement.  This is a
  Request.

            

    

     

    
      	
              2

            	
              We
      wish to borrow a Loan on the following
terms:

            

    

     

    
      	
               
      

            	
              (a)

            	
              Utilisation
      Date: [not earlier than 5 business days from receipt of Request by
      Lender]

            

    

     

    
      	
               
      

            	
              (b)

            	
              Amount:

            

    

     

    
      	
              3

            	
              Our
      payment instructions are: [as set out in the Agreement / as
      follows:]

            

    

     

    
      	
              4

            	
              We
      confirm that each condition precedent under the Agreement which must be
      satisfied on the date of this Request is so
  satisfied.

            

    

     

    
      	
              5

            	
              We
      confirm that you may deduct from the Loan (although the amount of the Loan
      will remain the amount requested above) any outstanding fees (in
      accordance with the terms of the Agreement or the Finance
      Documents).

            

    

     

    
      	
              6

            	
              This
      Request is irrevocable.

            

    

     

    

     

    
      	
              _______________________________

               

              [Place,
      Date]

               

            
	
               

              _______________________________

               

              [Signature
      Borrower]

               

            
	
              _______________________________

               

              [Name]

            

    

     

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    
 

    SCHEDULE
2 – Communication

     

    

     

    Payment
requests (clause 3.2, Schedule 1) and repayment notifications (clause 4.3) shall
be faxed to

     

    LTSB
Haarlem / Loans Administration Department

     

    Att.
Claudia van der Meer

     

    Fax
number 0031-235517164

     

    

     

    and sent
by email to the following contact persons :

     

    Claudia
van der Meer

     

    claudia.van.der.meer@lloydstsb.nl

     

    

     

    Dominique
Waul

     

    dominique.waul@lloydstsb.nl

     

    

     

    Sarah
Folkes, Senior Collateral Controller

     

    Tel:
(+44) 1489 776559

    Fax:
(+44) 1489 773937

     

    Sarah.folkes@ltsbcf.co.uk

     

    

     

    Mandy
Jermy, Collateral Executive

     

    Tel:  01489
776656 

     

    Fax:
01489 773952

     

    amanda.jermy@ltsbcf.co.uk

     

    

     

    Barry
Shone, Collateral Controller

     

    Tel:
01489 776567

    Fax:
01489 772467

     

    Barry.Shone@ltsbcf.co.uk

     

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    
 

     

    Jane
Stacey, Senior Collateral Controller

     

    Tel:
01489 776670

    Fax:
01489 773907

     

    jane.stacey@ltsbcf.co.uk

     

    

     

    Division

     

    daybook.international@ltsbcf.com

     

    

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    
 

    SCHEDULE
3 - TELECOMMUNICATIONS INDEMNITY AGREEMENT

     

    Between

     

    
      	
              a)

            	
              Lloyds
      TSB Bank plc, having its registered office in London and a branch in
      Haarlem (hereinafter the ‘Bank’);
    and

            

    

     

    
      	
              b)

            	
              Ferromatik
      Milacron Maschinenbau GmbH, registered in the commercial register of the
      Local Court Freiburg i. Br. under HR B 260880, having its business seat at
      Riegeler Strasse 4, D-79364 Malterdingen (hereinafter called the ‘Client’),

            

    

     

    

     

    Whereas one or more mandates
and/or other agreements are currently in force between the Bank and the Client
which govern the relationship between the Bank and the Client, including the
operation and use of the Client’s account(s) and/or other facilities with the
Bank (any such mandates and agreements are hereinafter together referred to as
the ‘Mandate’);

     

    

     

    The Client and the Bank hereby
agree as follows:

     

    
      	
              1.

            	
              a)
      the Client hereby requests and authorises the Bank to act in accordance
      with telephone and/or facsimile instructions which may from time to time
      be, or purport to be, given on behalf of the Client by any of the persons
      listed in Appendix A hereto, in relation to (i) the operation of the
      Client’s account(s), (ii) any other transaction involving the Client and
      the Bank or (iii) the use by the Client of any service which the Bank
      provides, without any further enquiry on the part of the Bank being
      required as to (a) the authority of any such person or persons referred to
      in Clause 3 to give such instructions, (b) the circumstances prevailing at
      the time such instructions are given both in relation to the nature of the
      transaction and the disposition of any monies, securities or documents,
      which are the subject of such transaction or (c) otherwise. The Bank will
      be entitled to, but is under no obligation, to act in accordance with any
      instructions as aforementioned.

            
	 	 
	 	      
              b)
      In carrying out any facsimile instructions of the Client, the Bank
      undertakes to check that the signature(s) of the person or persons acting
      on behalf of the Client match(es) the relevant signature(s) set forth in
      Appendix A. Where a signature on the facsimile instruction does not
      resemble any signature shown in Appendix A, the Bank will not accept such
      instruction but may approach the relevant person stating to be acting on
      behalf of the Client for further verification or
      identification.

            
	 	 
	 	      
              c)
      The Client has requested and the Bank has agreed that the Client may, at
      its own risk, provide such signature specimens within 15 business days as
      from signing of this agreement at the very
  latest.

            

    

     

    
      	
              2.

            	
              The
      Client agrees that any acts by the Bank in accordance with Clause 1 hereof
      in respect of telephone and/or facsimile instructions shall be binding
      upon the Client. The books of the Bank shall, in the absence of manifest
      error, be prima
      facie evidence of any such instructions given by the
      Client.

            

    

     

    
      	
              3.

            	
              The
      Client hereby authorises each of the persons whose name and signature
      appear in Appendix A to jointly and/or severally act on the Client’s
      behalf for the purpose of giving instructions to the Bank by telephone or
      facsimile as specified in Clause 1. By signing Appendix A, such persons
      accept the authorisations given by the Client to them
    herein.

            

    

     

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

     

    
      	
              4.

            	
              The
      Client (i) undertakes to indemnify the Bank and to keep the Bank
      indemnified against all losses, claims, actions, proceedings, demands,
      damages, costs and expenses incurred or sustained by the Bank of whatever
      nature and howsoever arising as a result of instructions referred to under
      Clause 1 hereof and (ii) agrees not to hold the Bank responsible for
      fraudulent or unauthorised instructions made on the Clients behalf or for
      any loss (including consequential loss), damage or liability whatsoever
      resulting therefrom, except where such is caused by the Bank’s gross
      negligence or wilful misconduct. The Client undertakes and agrees to pay
      and reimburse the Bank within 5 business days of first demand and in the
      currency specified therein, for any and all payments made by the Bank as
      set out in (i) above. The Client irrevocably authorises the Bank to debit
      any of the Client’s accounts with the Bank in respect of any such payments
      and to apply amounts so debited towards discharge of any reimbursement
      obligation of the Client pursuant to this Clause
  4.

            

    

     

    
      	
              5.

            	
              Without
      prejudice to Clauses 1 and 2, the Client undertakes to confirm any
      telephone and [untested] facsimile instructions by latest by close of
      business on the following business day by way of a letter signed by one or
      more duly authorised signatories. In any event and notwithstanding any of
      the provisions hereof (including the Bank’s authority to act as set out in
      Clause 1 hereof), any telephone and/or facsimile instruction shall be
      deemed to have been confirmed by the Client 14 days after dispatch by the
      Bank to the Client of any Bank statement relating to or involving the
      relevant instruction or transaction contemplated
  thereby.

            

    

     

    
      	
              6.

            	
              The
      instructions and authorisations contained in this agreement shall remain
      in full force and effect unless and until either (i) the Bank receives a
      written notice by registered mail of termination of (a) this agreement or
      (b) the authorisation of any person as set forth in Clause 3 hereof or
      (ii) the Bank terminates this agreement. Any termination set out in 6(i)
      will be effective within five business days after receipt of such notice.
      Any termination set out in 6(ii) will have immediate
    effect.

            

    

     

    
      	
              7.

            	
              A
      termination in accordance with Clause 6 will not release the Client from
      any liability or obligation to indemnify the Bank as aforesaid in respect
      of any instructions and/or acts performed by the Bank pursuant to the
      terms of this agreement prior to the date on which such termination
      becomes effective.

            

    

     

    
      	
              8.

            	
              This
      agreement, including all rights and obligations arising or in connection
      herewith shall be governed by the laws of the
  Netherlands.

            

    

     

    
      	
              9.

            	
              All
      disputes arising from or in connection with this Agreement shall in the
      first instance be exclusively referred to the District Court of Amsterdam,
      without prejudice to the Bank’s right to submit any such dispute to any
      other court of any jurisdiction with competence to judge on the matters
      agreed herein.

            

    

     

    

     

    Signed in
_________________________ [place] , on ____________[date]

     

    for and
on behalf of  Ferromatik Milacron Maschinenbau
GmbH

     

    

     

    ______________________                     ____________________

     

    Name:                                                              Name:

     

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

     

    Title:                                                                Title:

     

    

     

    for and
on behalf of  Lloyds
TSB Bank plc

     

     

    
      ______________________                     ____________________

       

      Name:                                                              Name:

       

      Title:                                                                Title:

    

     

     

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    

     

    SCHEDULE
3 - APPENDIX A

     

    

     

     

    
      
        	
                Name

              	 
      	 
      	
                Signature

              
	 	 	 	 
	 	 	 	 
	
                1.

              	                                                                               	 
      	
                                                                                                                         

              
	 
      	 	 
      	 
      
	 	 	 	 
	
                2.

              	
                                                                                                                         

              	 
      	
                      
                                                                                                                           

                

              
	 
      	 
      	 
      	 
      
	 	 	 	 
	
                3.

              	
                                                                                               

              	 
      	
                                                                                               

              
	 
      	 
      	 
      	 
      
	 	 	 	 
	
                4.

              	
                      
                                                                                                                           

                

              	 
      	
                                                                                                                         

              
	 
      	 
      	 
      	 
      
	 	 	 	 
	
                5.

              	
                      
                                                                                                                           

                

              	 
      	
                                                                                                                         

              
	 
      	 
      	 
      	 
      
	 	 	 	 
	
                6.

              	
                                                                                               

              	 
      	
                                                                                                                         

              

      

    

     

     

     

     

     

     

     

    17Unassociated Document

    Exhibit 10.3

     

    Execution Copy

    

    

    

    

    

    

    

    

     

    COMMERCIAL TERMS

     

    FOR THE

     

    RECEIVABLES FINANCE
AGREEMENT

     

     

    BETWEEN

     

     

    LLOYDS TSB BANK PLC
(1)

     

     

    and

     

     

    CIMCOOL EUROPE B.V.
(2)

    

    

    

     

    

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    

    

    

    RECEIVABLES
FINANCE AGREEMENT

     

    

     

    This
Receivables Finance Agreement (the “Agreement”) is entered into on
12 March 2008

    

    BETWEEN

    

    
      	
              (1)

            	
              WE, LLOYDS TSB BANK PLC,
      an English public limited company whose registered office is at 25 Gresham
      Street, London, United Kingdom; acting through our branch in the
      Netherlands with offices at Staten Bolwerk 1, 2011 MK Haarlem, the
      Netherlands, and

            

    

    

    
      	
              (2)

            	
              YOU,
      CLIENT, CIMCOOL EUROPE
      B.V., a private limited liability company (besloten vennootschap met
      beperkte aansprakelijkheid), and whose registered seat (statutaire zetel) is at
      Vlaardingen, the Netherlands, registered with the Chamber of Commerce of
      Rotterdam under number 24174756 and having your office address at
      Schiedamsedijk 20, 3134 KK, Vlaardingen, the
  Netherlands,

            

    

    

    IT IS AGREED
that:

    

    
      	
              1.  

            	
              INTRODUCTION

            

    

    

    
      	
              1.1.  

            	
              In
      this Agreement, in our Operating Conditions (attached to this Commercial
      Terms as Annex I), in the Asset Based Finance Agreement and in any
      document pursuant to which a Security Interest is created in favour of us,
      we set out the terms on which we will make the Facility set out below
      available to you.  These are the only terms binding both of
      us.  They supersede all previous discussions, quotations, offer
      letters, proposals and representations. By signing this Agreement, you
      nonetheless confirm that all relevant individuals have either read,
      understood and accepted or have otherwise consented to statements about
      Data Protection which appear on either the offer letter, quotation,
      proposal or instruction letter sent to you and as contained in this
      Agreement and/or that the processing in accordance with such statements of
      Personal Data supplied by you is otherwise
  permitted.

            

    

    

    
      	
              1.2.  

            	
              We
      may, by way of a separate agreement, make stock, plant and machinery,
      property or cashflow facilities, hire purchase and/or leasing facilities
      available to you.

            

    

    

    
      	
              1.3.  

            	
              You
      confirm that you have read and understood this Agreement and the Operating
      Conditions and had the opportunity to take independent legal advice on
      your and our respective rights and
obligations.

            

    

    

    
      	
              1.4.  

            	
              To
      provide the Facility we need to have access to and to use and/or disclose
      Personal Data relating to individuals associated with your business and/or
      with your Customers’ businesses.  The terms upon which we will
      use such Personal Data are set out in the Operating
      Conditions.  You agree that you have read and understood such
      terms and that you have obtained any necessary consents from relevant
      individuals.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
              1.5.  

            	
              The
      Operating Conditions are incorporated into and form part of this
      Agreement. If there is any conflict between these Commercial Terms and the
      Operating Conditions, then these Commercial Terms will
      prevail.

            

    

    

    
      	
              1.6.  

            	
              The
      meanings of defined terms used in this Agreement are given below and in
      Part I of the Operating Conditions.

            

    

    

    2.           THE FACILITY

     

    
      
        	
                2.1  

              	
                Terms

              

      

       

    

    
      
        	
                2.1.1 Type
      of Facility:

              	
                Receivables
      Facility.

              
	 
      	
                Part
      I, II and VI of the Operating Conditions will apply to you.

                 

              
	
                2.1.2 Review
      Limit:

                 

              	
                equal
      at all times to the Aggregate Debt Financing Limit (as defined in the
      Asset Based Finance Agreement). The  Aggregate Debt Financing
      Limit is an aggregate limit which is applicable to facilities made
      available to you and your Associated Businesses.

              
	
                2.1.3 Advance
      Rate:

                 

              	
                90%.

              
	
                2.1.4 Funding
      Period:

                 

              	
                Each
      period of 90 days beginning on the last Working Day of the month in which
      an Invoice is raised.

              
	
                2.1.5 Minimum
      Term:

                 

              	
                36
      months from the Start Date.

              
	
                2.1.6 Final
      Repayment Date

                 

              	
                the
      date falling five years after the date of the Agreement

              
	
                2.1.7 Notice
      Period:

                 

              	
                3
      months.

              
	
                2.1.8 Additional
      Non-Notifiable Invoices:

                 

              	
                none

              
	
                2.1.9 Approval
      Limit:

                 

              	
                This
      will be notified to you separately.

              
	
                2.1.10 Approved
      Countries:

                 

              	
                all
      EU, G7 and OECD countries.

              
	
                2.1.11 Approved
      Currencies:

                 

              	
                None.

              

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    
      	
              2.2  

            	
              Fees
      and Charges Receivables Facility

            

    

     

    
      
        	
                2.2.1 Margin:

                 

              	
                1.75%
      per annum.

              
	
                2.2.2 Arrangement
      Fee:

                 

              	
                has
      the meaning as set forth in the Asset Based Finance
    Agreement

              
	
                2.2.3 Service
      Charge:

                 

              	
                has
      the meaning as set forth in the Asset Based Finance
    Agreement

              
	
                2.2.4 Unused
      Line Fee:

                 

              	
                has
      the meaning as set forth in the Asset Based Finance
    Agreement

              
	
                2.2.5 Guarantee
      Fee:

                 

              	
                1.75%
      per annum

              
	
                2.2.6 Interest
      Payment Date:

                 

              	
                the
      first Working Day of each month

              
	
                2.2.7 Default
      Interest:

                 

              	
                2%
      per annum

              
	
                2.2.8 Transmission
      Charges:

                 

              	
                EUR
      40

              
	
                2.2.9 Urgent
      Payment Charges:

                 

              	
                EUR
      10

              
	
                2.2.10 Account
      Opening Fee:

                 

              	
                EUR
      1,000

              
	
                2.2.11 Annual
      Account Maintenance Fee:

                 

              	
                EUR
      1,000

              

      

    

    
 3.           POWER OF ATTORNEY

     

    
      	
            	
              3.1  

            	
              You
      irrevocably provide us a power of attorney (volmacht), with the
      right of substitution, to act on your behalf and to perform all acts on
      your behalf that are necessary or desirable, which power of attorney will
      be used in the event of the assignment of Invoices to perform all acts as
      listed in 3.2 and in case of a pledge of Invoices to perform all acts as
      listed in 3.3.

            

    

     

    
      	
            	
              3.2  

            	
              The
      power of attorney in case of assignment of Invoices under a Factoring
      Facility will give authority to the holder of it
  to:

            

    

     

    
      	
            	
              ·  

            	
              perfect
      our title to an Invoice or its Related Rights;
  and/or

            

    

     

    
      	
            	
              ·  

            	
              secure
      the performance of any of your obligations to us or a
      Customer.

            

    

     

    In
accordance with this power, we may without notice to you either in our name or
in your name:

     

    
      	
              3.2.1  

            	
              complete,
      negotiate or endorse all instruments representing payment of or security
      for Invoices as well as any other amount, however
  affected;

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              3.2.2  

            	
              bring,
      conduct, compromise or defend any legal or other
    proceedings;

            

    

     

    
      	
            	
              3.2.3  

            	
              execute
      or sign any contracts or documents;

            

    

     

    
      	
              3.2.4  

            	
              complete
      or perform any other acts as we consider reasonably necessary to complete
      a Contract of Sale;

            

    

     

    
      	
            	
              3.2.5  

            	
              dispose
      of or deal with any Related Rights;
and

            

    

     

    
      	
              3.2.6  

            	
              obtain
      payment of Invoices and, if necessary, give notice of the assignment of
      Invoices to us.

            

    

     

    
      	
            	
              3.3  

            	
              The
      power of attorney in case of pledge of Invoices will give authority to the
      holder of it to:

            

    

     

    
      	
            	
              ·  

            	
              perfect
      our Security Interest to an Invoice or its Related Rights;
      and/or

            

    

     

    
      	
            	
              ·  

            	
              secure
      the performance of any of your obligations to us or a
      Customer.

            

    

     

    In
accordance with this power, we may without notice to you either in our name or
in your name:

     

    
      	
              3.3.1  

            	
              complete,
      negotiate or endorse instruments representing payment of or security for
      Invoices as well as any other amount, however
  affected;

            

    

     

    
      	
            	
              3.3.2  

            	
              bring,
      conduct, compromise or defend any legal or other
    proceedings;

            

    

     

    
      	
            	
              3.3.3  

            	
              execute
      or sign any contracts or documents;

            

    

     

    
      	
              3.3.4  

            	
              complete
      or perform any other acts as we consider reasonably necessary to complete
      a Contract of Sale;

            

    

     

    
      	
            	
              3.3.5  

            	
              dispose
      of or deal with any Related Rights;
and

            

    

     

    
      	
              3.3.6  

            	
              obtain,
      in so far as permitted pursuant to Article 3:246 Dutch Civil Code, payment
      of Invoices and, if necessary, give notice of the pledge of Invoices to
      us.

            

    

     

    You will
ratify anything lawfully done by any attorney, substitute attorney or mandate
under the powers set out above.  You cannot cancel our powers under
this clause and this power will last until all monies, obligations and
liabilities owing by you to us have been performed or satisfied in
full.

     

    4.           CONDITIONS
PRECEDENT

     

    
      	
              4.1

            	
              We
      will provide you with the Facility when we have received in a form and
      substance satisfactory to us:

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
              4.1.1  

            	
              a
      copy of your constitutional documents, consisting of: (i) your deed of
      incorporation, (ii) if applicable your current articles of association and
      (iii) an original copy of the extract pertaining to you from the trade
      register of the chamber of
commerce;

            

    

     

    
      	
              4.1.2  

            	
              a
      certified copy of a resolution of your board of directors approving the
      terms of, and the transactions contemplated by this Agreement, and
      resolving that it execute, deliver and perform this Agreement and any
      other security we require from you;

            

    

     

     

    
      	
              4.1.3  

            	
              if
      applicable, a copy of a resolution signed by all the holders of the issued
      shares in the Client, approving the terms of, and the transactions
      contemplated by this Agreement;

            

    

     

     

    
      	
              4.1.4  

            	
              if
      applicable, a copy of the advice cast by the relevant works council (ondernemingsraad) in
      respect of transactions contemplated by this Agreement or a confirmation
      from the works council that it refrains from exercising its rights to
      advise on the subject matter of this
Agreement;

            

    

     

     

    
      	
              4.1.5  

            	
              a
      corporate guarantee on first demand from Milacron Nederland B.V. and
      Milacron B.V. and a certified copy of the resolution of its governing body
      approving the granting of the
guarantee;

            

    

     

     

    
      	
              4.1.6  

            	
              any
      additional information or evidence we require to comply with our “know
      your customer” procedures, including satisfactory conclusion of any
      insolvency searches on you with the Central Insolvency Register (Centraal
      Insolventieregister), and any other searches deemed appropriate in
      this respect;

            

    

     

     

    
      	
              4.1.7  

            	
              the
      implementation of a web-based application in which reports can be
      submitted;

            

    

     

     

    
      	
              4.1.8  

            	
              copy
      of your latest audited accounts;

            

    

     

     

    
      	
              4.1.9  

            	
              a
      right of pledge in favour of us on any Invoices duly completed and signed,
      corresponding to the first Notification of
  Invoices;

            

    

     

     

    
      	
              4.1.10  

            	
              if
      applicable, originals of all the necessary consents as required by the
      Data Protection Act for the collection, processing and transfer of any
      Personal Data in relation to the Invoices assigned and pledged;
      and

            

    

     

     

    
      	
              4.1.11  

            	
              other
      conditions precedent are:

            

    

     

     

    
      	
            	
              ·  

            	
              a
      right of pledge in favour of us on any Collection Account held by you and
      on all of your stock and inventory;

            

    

     

     

    
      	
            	
              ·  

            	
              a
      right of pledge in favour of us on all shares in your share capital.

            

    

     

     

    
      	
              5.  

            	
              GUARANTEE

            

    

     

     

    5.1           You
irrevocably and unconditionally:

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              5.1.1  

            	
              guarantee
      to us punctual performance by each Guaranteed Company of its Secured
      Obligations up to a maximum amount of EUR 7,000,000 (seven million euro)
      (for the purpose of this clause: the "Maximum
      Amount");

            

    

     

    
      	
            	
              5.1.2  

            	
              undertake,
      by way of its own and independent obligation, with us that whenever a
      Guaranteed Company does not pay any amount when due under or in connection
      with its Secured Obligations, that you shall immediately on demand pay
      that amount or, if less, the Maximum Amount, as if you were the principal
      obligor;

            

    

     

    
      	
              5.2

            	
              This
      guarantee is an independent guarantee and not a suretyship (borgtocht). You agree
      to and hereby waive any rights you may have under title 7.14 Dutch Civil
      Code, if any, which waiver is hereby accepted by
  us.

            

    

     

    
      	
              5.3

            	
              This
      guarantee is a continuing guarantee and will extend to the ultimate
      balance of sums payable by any Guaranteed Company under its Secured
      Obligations (but never exceeding the Maximum Amount), regardless of any
      intermediate payment or discharge in whole or in
  part.

            

    

     

    
      	
              5.4

            	
              Until
      all amounts which may be or become payable by a Guaranteed Company under
      or in connection with its Secured Obligations have been irrevocably paid
      in full, you will not exercise any rights which you may have by reason of
      performance by you of a Guaranteed Company's obligations to be indemnified
      by that Guaranteed Company and you subordinate in favour of us any rights
      which you may acquire by way of recourse or subrogation in connection with
      any right against any Guaranteed Company until all amounts which may be or
      become payable any Guaranteed Company under or in connection with the
      Secured Obligations have been irrevocably paid in
  full.

            

    

     

    
      	
              6.  

            	
              GOVERNING
      LAW AND JURISDICTION

            

    

     

    This
Agreement shall be governed by and construed in accordance with the law of the
Netherlands. You accept the jurisdiction of the competent court of the
Netherlands to hear and determine any proceedings arising out of this
Agreement.  However, you agree that we may bring proceedings in the
courts of any other jurisdiction.

     

    To
confirm agreement to the terms and conditions contained in this Agreement
together with all its Schedules, Annexes and other documents forming part of the
documentation of the subject matter of agreement the parties have executed two
originals of this Agreement on the date set out above.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    

     

    
      
        	
                LLOYDS TSB BANK
      PLC

                represented
by:

                 

              	 
      
	
                 

                1.

              	
                 

                Mark
      Louman

                Proxyholder
      A

                Name

              	
                 

                /s/
      Mark Louman

                Signature

              
	
                 

                2.

              	
                 

                Claudia
      Roswitha van der Meer

                Proxyholder
      A

                Name

              	
                 

                /s/
      Claudia Roswitha van der Meer

                Signature

              

      

       

    

    
      	
              CIMCOOL EUROPE
      B.V.

              duly represented
      by:

               

            	 
      
	
              René van
Geemen

              Managing
      Director

               

              Gerrit Jue

              Managing
      Director

              Name

            	
              /s/ René van
      Geemen

               

               

              /s/ Gerrit Jue

              Signature

               

               

            

    

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    ANNEXURE
I

    Operating
Conditions

    

    
 

    

    

    

    

    

    

    

    

    

    

    

    

    

    Guidance
Note:

     

     

    The
Agreement is in relation to various products offered by Lloyds TSB Bank PLC in
the Netherlands, and comprises two parts (a) the Commercial Terms and (b) the
Operating Conditions.

     

    The
Commercial Terms and the Operating Conditions jointly set out the terms on which
the Facility has been made available to you.

     

    In so far
as you have applied for a Euro Invoice Discounting Facility, then Parts I, II
and III of the Operating Conditions will apply to you.

     

    In so far
as you have applied for an Export and/or Currency Invoice Discounting Facility,
then Parts I, II and V of the Operating Conditions will apply to
you.

     

    In so far
as you have applied for a Factoring Facility, then Parts I, II and IV of the
Operating Conditions will apply to you.

     

    In so far
as you have applied for a Receivables Facility, then Parts I, II and VI of the
Operating Conditions will apply to you.

    
 

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    

    OPERATING
CONDITIONS

    

    FOR

    

    RECEIVABLES
FINANCE AGREEMENT

    

    BETWEEN

    

    LLOYDS
TSB BANK PLC, NETHERLANDS BRANCH
(1)

    

    AND

    

    CIMCOOL EUROPE B.V.
(2)

    

    

    

    

    

    

    

    

    We
acknowledge receipt of these Operating Conditions (Part I, Part II, and Part VI)
which form part of our agreement with you.

    

    

    

    

    

    /s/ René van Geemen

    

    /s/
Gerrit Jue

    

    For and
on behalf of Cimcool Europe B.V.

    

    

    12 March
2008

    Date

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    
      
        	
                OPERATING
      CONDITIONS – PART I

              	
                14

              
	
                DEFINITIONS

              	
                14

              
	
                Section
      1 General Definitions

              	
                14

              
	
                Section
      2 Definitions related to Dutch law

              	
                20

              
	
                OPERATING
      CONDITIONS - PART II

              	
                24

              
	
                PROVISIONS
      RELATING TO ALL CLIENTS

              	
                24

              
	
                1 LENGTH OF THE
      AGREEMENT

              	
                24

              
	
                2 NOTIFICATION,
      INVOICE CLASSIFICATION AND APPROVAL LIMITS

              	
                24

              
	
                3 PAYING FOR
      INVOICES

              	
                25

              
	
                4 CURRENT AND OTHER
      ACCOUNTS

              	
                25

              
	
                5 COLLECTION OF
      INVOICES

              	
                27

              
	
                6 OUR FEES AND
      CHARGES

              	
                28

              
	
                7 EXPENSES, SET OFF AND
      INDEMNITY

              	
                29

              
	
                8 WARRANTIES

              	
                30

              
	
                9 UNDERTAKINGS

              	
                32

              
	
                10 TERMINATION
      EVENTS

              	
                35

              
	
                11 ASSIGNMENT OR PLEDGE
      OF INVOICES

              	
                37

              
	
                12 REPURCHASE

              	
                38

              
	
                13 COMMUNICATIONS
      BETWEEN US

              	
                38

              
	
                14 VARIATIONS

              	
                39

              
	
                15 COMMUNICATIONS WITH
      PROFESSIONALS AND OTHERS

              	
                40

              
	
                16 DATA
      PROTECTION

              	
                40

              
	
                17 PARTNERSHIPS AND SOLE
      TRADERS

              	
                41

              
	
                18 NOTICES

              	
                43

              
	
                19 GENERAL

              	
                43

              
	
                20 INTERPRETATION

              	
                43

              
	
                OPERATING
      CONDITIONS - PART III

              	
                45

              
	
                PROVISIONS
      RELATING TO INVOICE DISCOUNTING CLIENTS ONLY

              	
                45

              
	
                1 AGENCY
      APPOINTMENT

              	
                45

              

      

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      
        	
                2 PLEDGE OF INVOICES -
      DISCLOSED

              	
                46

              
	
                3 PLEDGE OF INVOICES -
      UNDISCLOSED

              	
                48

              
	
                4 INFORMATION AND
      REPORTING REQUIREMENTS

              	
                49

              
	
                5 NON-NOTIFIABLE
      INVOICES

              	
                50

              
	
                6 OUR
      SERVICES

              	
                51

              
	
                7 DISCOUNTING CLIENTS
      WHICH BECOME FACTORING CLIENTS

              	
                52

              
	
                8 FEES

              	
                53

              
	
                9 EXPORT/CURRENCY
      INVOICES

              	
                54

              
	
                ANNEXURE
      I

              	
                55

              
	
                List
      of Customers

              	
                55

              
	
                ANNEXURE
      II

              	
                56

              
	
                Form
      of Disclosed Pledge Agreement

              	
                56

              
	
                Schedule
      I

              	
                58

              
	
                Detail
      of Invoices

              	
                58

              
	
                ANNEXURE
      III

              	
                59

              
	
                Form
      of Notification to Customers

              	
                59

              
	
                ANNEXURE
      IV

              	
                61

              
	
                Form
      of Undisclosed Pledge Agreement

              	
                61

              
	
                Schedule
      I

              	
                63

              
	
                Detail
      of Invoices

              	
                63

              
	
                OPERATING
      CONDITIONS - PART IV

              	
                64

              
	
                PROVISIONS
      RELATING TO FACTORING CLIENTS ONLY

              	
                64

              
	
                1 OUR
      SERVICES

              	
                64

              
	
                2 ASSIGNMENT OF
      INVOICES

              	
                64

              
	
                3 YOUR
      RESPONSIBILITIES

              	
                66

              
	
                4 OUR FEES AND CHARGES
      FOR FACTORING CLIENTS

              	
                66

              
	
                5 CURRENCY
      INVOICES

              	
                67

              
	
                ANNEXURE
      I

              	
                68

              
	
                List
      of Customers

              	
                68

              
	
                ANNEXURE
      II

              	
                69

              

      

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      
        	
                Assignment
      Agreement

              	
                69

              
	
                Schedule
      I

              	
                71

              
	
                Detail
      of Invoices

              	
                71

              
	
                ANNEXURE
      III

              	
                72

              
	
                Form
      of Notification to Customers

              	
                72

              
	
                OPERATING
      CONDITIONS - PART V

              	
                74

              
	
                PROVISIONS
      RELATING TO EXPORT AND CURRENCY FACILITIES

              	
                74

              
	
                1 EXPORT AND CURRENCY
      FACILITIES

              	
                74

              
	
                2 OUR FEES AND
      CHARGES

              	
                74

              
	
                OPERATING
      CONDITIONS - PART VI

              	
                75

              
	
                PROVISIONS
      RELATING TO RECEIVABLES FACILITIES

              	
                75

              
	
                1 PURPOSE OF THE
      FACILITY

              	
                75

              
	
                2 DRAWDOWN

              	
                75

              
	
                3 INTEREST

              	
                75

              
	
                4 REPAYMENT

              	
                76

              
	
                5 PREPAYMENT

              	
                76

              
	
                6 SECURITY

              	
                76

              
	
                7 PLEDGE OF INVOICES -
      DISCLOSED

              	
                77

              
	
                8 PLEDGE OF INVOICES -
      UNDISCLOSED

              	
                79

              
	
                9 INFORMATION AND
      REPORTING REQUIREMENTS

              	
                80

              
	
                10 NON-NOTIFIABLE
      INVOICES

              	
                81

              
	
                11 OUR
      SERVICES

              	
                82

              
	
                12 FEES

              	
                83

              
	
                ANNEXURE
      I

              	
                85

              
	
                List
      of Customers

              	
                85

              
	
                ANNEXURE
      II

              	
                86

              
	
                Form
      of Disclosed Pledge Agreement

              	
                86

              
	
                Schedule
      I

              	
                88

              
	
                Detail
      of Invoices

              	
                88

              
	
                ANNEXURE
      III

              	
                89

              

      

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      
        	
                Form
      of Notification to Customers

              	
                89

              
	
                ANNEXURE
      IV

              	
                91

              
	
                Form
      of Undisclosed Pledge Agreement

              	
                91

              
	
                Schedule
      I

              	
                93

              
	
                Detail
      of Invoices

              	
                93

              
	
                ANNEXURE
      IV

              	
                94

              
	
                Form
      of Draw Down Request

              	
                94

              

      

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

     

    OPERATING
CONDITIONS – PART I

     

    

    DEFINITIONS

     

    In the
Agreement the following words have the meaning set out opposite
them:

    

     

    Section
1 General Definitions

     

    

    

    
      	
              “Account
      Opening Fee”

            	
              any
      fee referred to in the Commercial Terms calculated in the manner set out
      in Operating Conditions – Part II – Provisions relating to all
      clients;

               

            
	
              “Annual
      Account Maintenance Fee”

            	
              any
      fee referred to in the Commercial Terms calculated in the manner set out
      in Operating Conditions – Part II – Provisions relating to all
      clients;

               

            
	
              “Additional
      Service Fee”

            	
              the
      fee charged to Factoring Clients in respect of Invoices still unpaid at
      the ending of the Funding Period;

               

            
	
              “Advance
      Rate”

            	
              any
      percentage to be paid by us on account of the Nominal Amount of each
      Approved Invoice specified in the Commercial Terms as varied in accordance
      with the Agreement from time to time;

               

            
	
              “Advance”

            	
              the
      amount paid by us on account of the Nominal Amount of each Approved
      Invoice, in the case of Invoice Discounting, Factoring Clients and
      Receivables Clients, calculated by applying the Advance Rate to such
      Invoice;

               

            
	
              “Approved
      Currency”

            	
              any
      currency referred to in the Commercial Terms or any other currency which
      we may approve from time to time but excluding any currency which we
      notify you is not or no longer an Approved Currency;

               

            
	
              “Approval
      Limit”

            	
              any
      limit established by us in discussion with you and notified to you from
      time to time in relation to the maximum value of Invoices owing by some or
      all of your Customers expressed either as a fixed monetary amount or a
      percentage of all your Invoices outstanding from time to
time;

               

            
	
              “Approved
      Invoice”

            	
              all
      or part of any Notified Invoice not classified by us as Disapproved and
      “Approved” shall be construed accordingly;

               

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    
      	
              “Approved
      Country”

            	
              any
      country referred to in the Commercial Terms or agreed by us from time to
      time but excluding any country which we notify you is not or no longer an
      Approved Currency;

            

    

     

    
      	
              "Asset
      Based Finance Agreement"

            	
              The
      asset based finance agreement of even date herewith between you, us and
      some of your Associated Businesses.

               

            
	
              “Associated
      Business”

            	
              - Cimcool
      Europe B.V.;

               

              - Cimcool
      Industrial Products B.V.;

               

              - D-M-E
      Europe CVBA;

               

              - Ferromatik
      Milacron Machinenbau GmbH; and

               

              any
      other person or business which is owned or controlled by:

               

              (i)     you or
      your spouse; or

               

              (ii)    any
      director or partner of yours; or

               

              (iii)   anyone who
      directly or indirectly controls (or who can take control of) you;
      or

               

              (iv)   anyone you
      control (or you can take control of);or

               

              (v)    any
      holding company;

               

            
	
              “Availability”

            	
              the
      amount of any Invoice Discounting, Factoring Facility or Receivables
      Facility available to you calculated as set out in condition 4.4 of the
      Operating Conditions – Part II – Provisions relating to all
      Clients;

               

            
	
              “Bank”

            	
              Lloyds
      TSB Bank plc and its successors or assigns;

               

            
	
              “Base
      Rate”

            	
              the
      published base rate of the Bank from time to time;

               

            
	
              “Collection
      Account”

            	
              any
      bank account into which payments from Customers in respect of Invoices are
      required to be paid;

               

            
	
              “Collection
      Date”

            	
              in
      the case of any Invoice which is: (a) paid in cash: the date of receipt of
      the cash by you; (b) paid by cheque or other instrument: the date on which
      funds representing the same are cleared by your bankers for interest; (c)
      paid by TARGET or CSS: the date on which funds are credited to a
      Collection Account;

            

    

     

    
      	
              “Commercial
      Terms”

            	
              the
      terms set out in the main body of the Agreement (other than the Operating
      Conditions) as varied, amended, supplemented or replaced from time to
      time;

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    
      	
              “Contingent
      Instrument”

            	
              a
      guarantee, bond or letter of credit issued by us or an Issuer pursuant to
      any Contingent Liability Facility;

               

            
	
              “Contingent
      Liability Facility”

            	
              any
      Facility provided by us to you offering you the option to request the
      issue of Contingent Instruments;

               

            
	
              “Contract
      of Sale”

            	
              a
      contract in any form (including a purchase order) for the sale or hire of
      goods and/or provision of services to a Customer under which an Invoice
      arises;

               

            
	
              “Counter
      Indemnity”

            	
              an
      indemnity provided by us to an Issuer in their preferred form for all
      monies, obligations and liabilities incurred under a Contingent
      Instrument;

               

            
	
              “Credit
      Balance(s)”

            	
              any
      credit balance on the Current Account;

               

            
	
              “Currency
      Invoice”

            	
              any
      Invoice payable in an Approved Currency (other than Euro);

               

            
	
              “Current
      Account”

            	
              an
      account administered by us with account number 267600011 designated LTSB
      re Cimcool Europe BV;

               

            
	
              “Customer”

            	
              a
      party under a Contract of Sale obliged to pay you the Invoice and, where
      the context so permits, a prospective Customer;

               

            
	
              “Debit
      Balance(s)”

            	
              any
      debit balance on the Current Account;

               

            
	
              “Delivered”

            	
              in
      relation to Goods:

               

              (i)    physical
      delivery to (or to the order of) a Customer;

               

              (ii)           the
      Customer taking the risk in the Goods;

               

              (iii)           performance
      of the Contract of Sale;

               

               in
      relation to services: completed and “Deliver” and “Delivery” are to be
      construed accordingly;

               

            
	
              “Disapproved
      Invoice”

            	
              all
      or part of any Invoice classified by us as disapproved in accordance with
      condition 2 and ‘Disapproved’ is to be construed accordingly;

               

            
	
              “Drawdown
      Date”

            	
              means
      the date on which the relevant Advance as requested in the Drawdown
      Request must be available to you;

               

            
	
              “Drawdown
      Request”

            	
              means
      a notice sent by you to us requesting an Advance substantially in the
      relevant form set out in Annexure V of Operating Conditions Part
      VI;

               

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
      	
              “EEA”

            	
              European
      Economic Area;

               

            
	
              “EURIBOR”

            	
              has
      the meaning as set forth in the Asset Based Finance
Agreement;

               

            
	
              “Euro”
      or “€”

            	
              the
      single currency of the member states of the European Union which have
      adopted the Euro as their lawful currency in accordance with the
      legislation of the European Union relating to European Economic and
      Monetary Union, or if different, the lawful currency of Belgium or the
      Netherlands (as applicable);

               

            
	
              “Export
      Facility”

            	
              a
      Facility where we have agreed to pay for your Export
Invoices;

               

            
	
              “Export
      Invoice”

            	
              an
      Invoice which is:

               

              (i)    addressed to a
      Customer in one of the countries referred to in the Commercial Terms;
      and

               

              (ii)   expressed
      either in an Approved Currency or Euro;

               

            
	
              “Facility”

            	
              means
      each or all (as the context requires) of any Invoice Discounting Facility,
      Factoring Facility, Receivables Facility or Export and/or Currency
      Facility, made available by us to you from time to time under the terms of
      the Agreement;

               

            
	
              “Factoring
      Client”

            	
              a
      client to whom a Factoring Facility is made available;

               

            
	
              “Factoring
      Facility”

            	
              a
      debt purchase facility provided on the terms of the
Agreement;

               

            
	
              “Fees
      and Charges”

            	
              all
      those fees and charges to which we are entitled for providing any Facility
      (and any VAT thereon);

               

            
	
               "Guaranteed
      Company"

            	
              Cimcool
      Industrial Products B.V., D-M-E Europe CVBA and Ferromatik Milacron
      Machinenbau GmbH;

               

            
	
              “Goods”

            	
              any
      goods the subject of a Contract of Sale;

               

            
	
              “Invoice”

            	
              any
      present, future or contingent obligation (including any tax or duty) of a
      Customer to make payment under a Contract of Sale (whether invoiced or
      not) and, where the context permits, includes part of an
      Invoice;

               

            
	
              “Invoice
      Discounting Client”

            	
              a
      client to whom an Invoice Discounting Facility is made
      available;

               

            
	
              “Invoice
      Discounting Facility”

            	
              a
      debt purchase facility provided on the terms of the
Agreement;

               

            
	
              “Issuer”

            	
              a
      bank or other financial institution approved by us which issues a
      Contingent Instrument on your
behalf;

            

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    
      	
              “Margin”

            	
              the
      Margin specified in the Commercial Terms;

               

            
	
              “Minimum
      Fee”

            	
              any
      minimum fee specified in the Commercial Terms;

               

            
	
              “Minimum
      Term”

            	
              the
      shortest period for which the Agreement must operate specified in the
      Commercial Terms;

               

            
	
              “Net
      Value”

            	
              in
      relation to any Invoice, the amount actually received by us in settlement
      or discharge after taking into account all deductions, discounts and
      off-sets;

               

            
	
              “Nominal
      Amount”

            	
              the
      amount received by us in or towards each Invoice together with its Related
      Rights;

               

            
	
              “Non-Notifiable
      Invoices”

            	
              those
      Invoices described as non-notifiable in the Operating Conditions for
      Invoice Discounting Clients and Receivable Clients and specified as
      Additional Non-Notifiable Invoices in the Commercial Terms;

               

            
	
              “Notice
      Period”

            	
              the
      period of notice to be served to terminate the Agreement specified in the
      Commercial Terms;

               

            
	
              “Notification”

            	
              your
      notification to us in the format we specify of the existence and amount of
      Invoices and other matters referred to in conditions 9.1.7 and 9.1.8 of
      the Operating Conditions – Part II – Provisions relating to all Clients
      and “Notified” and “Notify” are to be construed accordingly;

               

            
	
              “Notified
      Value”

            	
              the
      full amount of each Invoice given in a Notification (including any
      applicable tax or duty) and before any discount for prompt payment or
      otherwise;

               

            
	
              “Operating
      Conditions”

            	
              the
      terms and conditions on which we will provide a Facility to you
      incorporated in the Agreement, signed by you for identification as
      amended, varied, supplemented or replaced from time to time;

               

            
	
              “Receivables
      Client”

            	
              a
      client to whom a Receivables Facility is made available;

               

            
	
              “Receivables
      Facility”

            	
              a
      loan facility provided on the terms of the Agreement;

               

            
	
              “Reserve”

            	
              any
      reserve applied by us to your Availability in such amount as we may
      determine from time to time;

               

            
	
              “Review
      Limit”

            	
              the
      amount equal at all times to the Aggregate Debt Financing Limit (as
      defined in the Asset Based Finance Agreement);

               

            
	
              "Secured
      Obligations"

            	
              all
      obligations representing indebtedness for borrowed money, present or
      future, absolute or contingent, matured or not, at any time owing by you
      or any Guaranteed Company to us under or in connection with the Asset
      Based Finance Agreement or the Financing Documents (as defined in the
      Asset Based Finance Agreement), provided, however, that any such
      obligation arises out of a loan arrangement providing for revolving
      working capital loans;

               

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    
      	
              “Service
      Fee”

            	
              the
      fee charged for the provision of our services to you calculated, unless
      otherwise agreed, as provided in Operating Conditions – Part II –
      Provisions relating to all clients;

               

            
	
              “Start
      Date”

            	
              the
      later of:

               

              (a)
      the date of the Agreement; and

               

              (b)
      the date on which we confirm that you have satisfied any conditions
      precedent specified by us;

               

            
	
              “TARGET”

            	
              same
      day transmission of cleared funds through the Trans-European Automated
      Real-time Gross Settlement Express Transfer System;

               

            
	
              “Termination
      Event”

            	
              any
      of the events set out in Operating Conditions – Part II – Provisions
      relating to all clients;

               

            
	
              “Urgent
      Payment Charge”

            	
              any
      fee referred to in the Commercial Terms calculated in the manner set out
      in Operating Conditions – Part II – Provisions relating to all clients;
      and

               

            
	
              “Website”

            	
              in
      the case of Invoice Discounting Clients or Receivables Facility Clients
      www.ltsbcf-solutionsplus.co.uk referred to as N-able, in the case of
      Factoring Clients, www.cashconnect.co.uk referred to as Cash Connect and,
      in any case, includes any additional or alternative domain name by which
      we may communicate with you over the internet from time to
      time.

            

    

    

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    

    

     

    Section
2 Definitions related to Dutch law

     

    

    
      	
              “Currency
      Facility”

            	
              a
      Facility where we have agreed to pay for your Currency Invoices owing by a
      Customer in the Netherlands;

               

            
	
              “CSS”

            	
              clearing
      and settlement system (Equens) in the
      Netherlands for domestic giro payments;

               

            
	
              “Data
      Protection Act”

            	
              the
      Dutch Data Protection Act (Wet Bescherming
      Persoonsgegevens) as amended, and any related
      regulations;

               

            
	
              “Domestic
      Invoice”

            	
              an
      Invoice payable in Euro arising from
      a Contract of Sale performed in the Netherlands, the invoice for which is
      addressed to a location in the Netherlands;

               

            
	
              “Dutch
      Civil Code”

            	
              the
      Dutch civil code, as amended from time to time (Burgerlijk
      Wetboek);

               

            
	
              “Insolvency/Insolvent”

            	
              in
      relation to any company or firm constituting a distinct legal entity
      (rechtspersoon)
      means:

               

              i. the
      appointment of a voluntary liquidator (vereffenaar) in view of
      the dissolution of the company or firm (article 19 et seq. of the Dutch
      Civil Code) or the passing of a resolution to wind up or dissolve the
      company or firm; or

               

              ii. the
      opening with respect to the entity or any material subsidiary of the
      entity of a moratorium (surséance van betaling)
      within the meaning of Title II Insolvency Act (Faillissementswet);
      or

               

              iii. the
      opening with respect to the entity or any material subsidiary of the
      entity of a bankruptcy proceeding (faillissement) within
      the meaning of Title I Insolvency Act (Faillissementswet);
      or

               

              iv. only
      insofar as applicable, the opening of an emergency proceeding (noodregeling), winding
      up order (liquidatieprocedure) or
      asset liquidation proceeding (saneringsmaatregel)
      within the meaning of Article 3:160 et seq. Act on
      Financial Supervision (Wet op het financieel
      toezicht),

            

    

     

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    
      

       

    

     

    
      	 	
              in
      relation to an individual (sole trader (eenmanszaak), independent professional
      (beroepsbeoefenaar), etc.),
      means:

               

              i. the
      opening with respect to the individual of a moratorium (surséance van betaling) within the
      meaning of Title II Insolvency Act (Faillissementswet); or

               

              ii.
      the opening with respect to the individual of a bankruptcy proceeding
      (faillissement) within the meaning
      of Title I Insolvency Act (Faillissementswet); or

               

              iii.
      the opening with respect to the individual of the liabiliies winding up
      scheme (schuldsaneringsregeling)
      within the meaning of Title III Insolvency Act (Faillissiementswet),

               

              in
      relation to any company, firm, individual or group, means:

               

              i.
      any creditor seizing (conservatoir of
      executoriaal beslag leggen) or taking possession of any of its
      assets whether through the implementation of any Security Interest or
      pursuant to an approval from the competent court (verlof) or through measures of forced
      execution (parate executie);
      or

               

              ii.
      the transfer to its creditors as payment, or the grant to its creditors, a
      Security Interest covering a substantial portion of its fixed assets;
      or

               

              iii.
      receiving an injunction to pay or a notification instituting a suit
      demanding the conviction of the individual or entity; or

               

              iv.
      commencing negotiations with one or more creditors for the general
      readjustment or rescheduling of, or a moratorium in regard to, all or part
      of its indebtedness (onderhands
      akkoord); or

               

              v. suspending
      or ceasing or threatening to suspend or cease its business or making a
      resolution or decision to this effect; or

               

              vi. allowing
      any judgment, order or award of any court or tribunal for payment of money
      to remain unsatisfied for 7 days or more; or

               

              vii. being
      subject to an injunction (voorlopige
      voorziening), order or other action that prohibits, prevents or
      restricts it from dealing with its assets or business; or

               

              viii. being
      incapable of paying the principal or interest on its debts generally as
      they fall due, or failure to honour a guarantee granted by it for any debt
      when called, after any grace periods have expired; or

               

            

    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    
      	 	
              ix.
      taking any steps toward or being subject to a judicial, administrative or
      arbitral proceeding that results in a decision placing the individual or
      entity in one of the situations described in the preceding two
      sub-paragraphs, or likely to cause the opening of a conciliation,
      safeguard, judicial work-out or judicial liquidation proceeding in regard
      to it; or

               

              x.
      occurrence of an event after the signature of the Agreement or the
      discovery of a fact that was not disclosed to us at or before signature,
      that is of a nature to affect in a material adverse way the business
      activities, financial or economic situation, the profitability or the
      assets or liabilities or the capacity of the individual or entity to
      fulfil its obligations;

               

            
	
              “Personal
      Data”

            	
              personal
      data relating to a living individual as defined under the Data Protection
      Act;

               

            
	
              “Related
      Rights”

            	
              (i)
      all your rights under a Contract of Sale (includingyour right to
      damages);

               

              (ii)
      all (negotiable and non negotiable) instruments, security, bonds,
      guarantees, and indemnities relating to an Invoice;

               

              (iii)
      all documents, ledgers, databases and computer files (including operating
      systems) recording or evidencing Invoices;

               

              (iv)
      all Goods returned to or repossessed by you or rejected by a Customer and
      all documents of title to such Goods;

               

              (v)
      any credit insurance in respect of an Invoice;

               

              (vi)
      any
      time sheets or proofs of delivery; and

               

              (vii) any
      and all dependent rights (afhankelijke rechten)
      and ancillary rights (nevenrechten),
      privileges and other rights inherent, attached and/or associated with the
      Invoices, including without limitation title retention rights which you
      undertake to provide in the case of a sale of goods;

               

            
	
              “Security
      Interest”

            	
              any
      mortgage, pledge, lien, or any other arrangement for the purpose of or
      having a similar effect to creating security or any title retention
      rights;

               

            

    

    
 

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

     

    
      	
              “Sensitive
      Personal Data”

            	
              sensitive
      personal data relating to a living individual as defined under the Data
      Protection Act;

               

            
	
              “We”
      or “us”

            	
              Lloyds
      TSB Bank plc acting through its Netherlands branch and our transferees and
      assignees; and

               

            
	
              “Working
      Day”

            	
              a
      day when the Bank is open for all normal business in Amsterdam and in
      England and Wales.

            

    

     

    

    

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    

     

    OPERATING
CONDITIONS - PART II

     

    PROVISIONS
RELATING TO ALL CLIENTS

     

     

    
      	
              1  

            	
              LENGTH
      OF THE AGREEMENT

            

    

     

    
      	
              1.1  

            	
              The
      Agreement will begin on the Start Date and, subject to condition 1.3, will
      continue for the Minimum Term and thereafter until terminated by either of
      us.

            

    

     

    
      	
              1.2  

            	
              We
      may each terminate the Agreement by serving written notice to terminate on
      the other, but, subject to condition 1.3, we must give each other notice
      of at least the Notice Period and each of us may only terminate the
      Agreement at the end of a calendar month coinciding with or ending after
      the end of the Minimum Term.

            

    

     

    
      	
              1.3  

            	
              We
      may also terminate the Agreement:

            

    

     

    
      	
            	
              1.3.1  

            	
              if
      it becomes unlawful in any applicable jurisdiction for us to perform any
      of our obligations contemplated by the Agreement or to fund or maintain
      the Facility,

            

    

     

    
      	
            	
              1.3.2  

            	
              if
      a material adverse change in the tax regime applicable to us occurs and
      such change is not due to wilful misconduct or gross negligence on our
      side (unless you at your discretion pay us an amount required to put us in
      the same position we would have been had the tax regime change not
      occurred, in which case we do not have the right to terminate the
      Agreement); and

            

    

     

    
      	
            	
              1.3.3  

            	
              at
      any time after the occurrence of a Termination
  Event.

            

    

     

    
      	
              2  

            	
              NOTIFICATION,
      INVOICE CLASSIFICATION AND APPROVAL
LIMITS

            

    

     

    
      	
              2.1  

            	
              You
      will Notify us on a weekly basis through the Website of all your Invoices
      existing on or arising after the Start
Date.

            

    

     

    
      	
              2.2  

            	
              We
      will classify all Notified Invoices as either Approved or
      Disapproved.  Any Invoice which is not Disapproved will be
      Approved.

            

    

     

    
      	
              2.3  

            	
              We
      may Disapprove any Notified
Invoice:

            

    

     

    
      	
            	
              2.3.1  

            	
              which,
      when added to all other unpaid Invoices owing by a particular Customer,
      exceeds any Approval Limit; or

            

    

     

    
      
        	
              	
                2.3.2  

              	
                which
      is not paid by the end of the Funding Period (or which on the Start Date
      has not been paid within that time period);
or

              

      

       

    

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              2.3.3  

            	
              which
      is disputed by a Customer; or

            

    

     

    
      	
            	
              2.3.4  

            	
              in
      relation to which you breach any warranty or undertaking given to
      us.

            

    

     

    We may
Disapprove an Invoice at any time, even if it was previously Approved and vice
versa.

     

    
      	
              2.4  

            	
              We
      will tell you of any Approval Limits set by
us.

            

    

     

    
      	
              3  

            	
              USE
      OF FACILITY

            

    

     

    
      	
              3.1  

            	
              We
      will allow you to make withdrawals from the Current Account up to the
      amount of your Availability as calculated in condition 4 or, if less, the
      Review Limit.

            

    

     

    
      	
              3.2  

            	
              We
      will allow you to request Contingent Instruments to be issued up to the
      amount of your Availability as calculated in condition 4 or, if less, the
      Review Limit. If an Issuer agrees to issue the Contingent Instrument
      requested, we will, upon the issuance of the relevant Contingent
      Instrument, reserve a portion of your Availability equal to the amount of
      the Contingent Instrument.

            

    

     

    
      	
              3.3  

            	
              Unless
      we agree otherwise all transactions between us will be accounted for in
      Euro.

            

    

     

    
      	
              4  

            	
              CURRENT
      AND OTHER ACCOUNTS

            

    

     

    
      	
              4.1  

            	
              We
      will operate an account in your name called the Current Account to record
      transactions relating to the
Facility.

            

    

     

    
      	
              4.2  

            	
              You
      will credit to the Current Account on each Collection Date amounts
      received by you on any Collection Account in or towards payment for
      Invoices.

            

    

     

    
      	
              4.3  

            	
              We
      will debit to the Current Account:

            

    

     

    
      	
            	
              4.3.1  

            	
              withdrawals
      and any other payments made to you or to your
  order;

            

    

     

    
      	
            	
              4.3.2  

            	
              all
      Fees and Charges (including any value added tax);
  and

            

    

     

    
      	
            	
              4.3.3  

            	
              any
      other sums actually, contingently or prospectively payable by you to us
      whether under the Agreement or any other facility made available by us to
      you.

            

    

     

    
      	
              4.4  

            	
              In
      order to calculate Availability, we will apply the Advance Rate to the
      Notified Value of all Approved Invoices and add any Credit Balance and
      then deduct:

            

    

     

    
      	
            	
              4.4.1  

            	
              any
      Debit Balance;

            

    

     

    
      	
            	
              4.4.2  

            	
              any
      amounts outstanding under Contingent
  Instruments;

            

    

     

    
      	
            	
              4.4.3  

            	
              any
      Reserves; and

            

    

     

    
      	
            	
              4.4.4  

            	
              any
      accrued Fees and Charges.

            

    

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    
      	
              4.5

            	
              The
      Debit Balance must not exceed the Review Limit. If we are providing a
      Facility (or any loan, hire purchase or lease facility) to you and
      Associated Businesses, the global aggregate Debit Balances of all you and
      all Current Accounts of the Associated Businesses and debit balances on
      such loan, hire purchase or lease accounts shall not exceed any aggregate
      Review Limit specified in the Commercial
Terms.

            

    

     

    
      	
              4.6

            	
              If
      your Availability is a negative figure or if you exceed any Approval Limit
      or any Review Limit whether as a result of us Disapproving an Approved
      Invoice, exercising our rights under conditions 4.7, 4.8 or 10.2
      or for any other reason, then, in the first instance, you must immediately
      pay us the excess on our demand.

            

    

     

    4.7           We
may at any time, by written notice to you, with immediate effect
vary:

     

    
      	
               
      

            	
              4.7.1

            	
              the
      Advance Rate in respect of all outstanding Approved Invoices and/or
      Invoices Notified to us after the date of such notice;
    and/or

            

    

     

    
      	
              4.7.2

            	
              any
      Approval Limits; and/or

            

    

     

    
      	
               
      

            	
              4.7.3

            	
              the
      proportion of your Export Invoices in respect of which we will make
      Advances.

            

    

     

    
      	
              4.8

            	
              We
      may also from time to time apply a Reserve.  We will determine
      the amount of any Reserve after consultation with you and will notify it
      to you from time to time.

            

    

     

    
      	
              4.9

            	
              In
      addition to the Current Account, we may maintain such other accounts as we
      consider necessary for the operation of the
  Agreement.

            

    

     

    
      	
              5  

            	
              COLLECTION
      OF INVOICES

            

    

     

    
      	
              5.1  

            	
              If
      you are a client whose Facility is disclosed or whose agency to collect
      Invoices has been terminated, subject to the rights of any credit insurer,
      these conditions will apply to you.

            

    

     

    
      	
              5.2  

            	
              We
      may take whatever action we think is suitable to obtain payment of
      Invoices from your Customers.  We may demand, exercise, obtain
      or otherwise deal with the Related Rights in whatever way we think is
      suitable (or refrain from so doing). We may settle, compromise or adjust
      any claim brought by or against us, upon such terms as we see
      fit.  We may bring, carry on, defend or compromise any legal
      proceedings or form of alternative dispute resolution in any part of the
      world and in your or our name.  We may engage collection agents,
      bailiffs or lawyers or such other professionals as we feel necessary for
      this purpose.

            

    

     

    
      	
              5.3  

            	
              We
      do not have to bring or defend any proceedings, by or against us, even if
      you ask us to do so.

            

    

     

    
      	
              5.4  

            	
              We
      may allow a Customer a longer period to pay or agree to accept less than
      the Notified Value of an Invoice and this will not affect your obligations
      to us.

            

    

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    
      	
              5.5  

            	
              You
      will:

            

    

     

    
      	
            	
              5.5.1  

            	
              at
      your expense, help us to collect Invoices, by, for example, assisting us
      to review your records and other evidence, providing witness statements
      and procuring witnesses’ attendance at court or during investigative or
      expertise proceedings; and

            

    

     

    
      	
            	
              5.5.2  

            	
              be
      bound by any act, decision or omission of ours in the exercise of our
      rights including any reduction in, or extinction of, the Purchase
      Price.

            

    

     

    
      	
              5.6  

            	
              We
      may sell any returned Goods on such terms as we consider appropriate and
      we will treat the proceeds of sale as if they were payment of or towards
      the relevant Invoice.

            

    

     

    
      	
              5.7  

            	
              We
      will not pay you compensation or damages and we will not have broken the
      Agreement if your Customer does not pay an
  Invoice.

            

    

     

    
      	
              5.8  

            	
              This
      Condition 5 is not applicable to Receivables
  Clients.

            

    

     

    
      	
              6  

            	
              OUR
      FEES AND CHARGES

            

    

     

    
      	
              6.1  

            	
              We
      will on the Start Date charge you the Account Opening Fee for opening the
      Current Account.

            

    

     

    
      	
              6.2  

            	
              We
      will annually charge you the Annual Account Maintenance Fee, unless in any
      year the payment charges in the year reach EUR 1,000 in which case we will
      waive the Annual Account Maintenance Fee for that
  year.

            

    

     

    
      	
              6.3  

            	
              For
      the purposes of calculating the Unused Line Fee, any payment of or towards
      an Invoice shall be credited to the Current Account on its Collection
      Date. We will debit any Unused Line Fee specified in the Commercial Terms
      to your Current Account at the intervals agreed with
  you.

            

    

     

    
      	
              6.4  

            	
              We
      will charge one twelfth of the Unused Line Fee monthly in arrears on the
      amount by which during the preceding calendar
  month:

            

    

     

    
      	
            	
              6.4.1  

            	
              your
      average Debit Balance; or

            

    

     

    
      	
            	
              6.4.2  

            	
              where
      we have agreed to make Facilities available to you and Associated
      Businesses, your and their combined average Debit
  Balances;

            

    

     

    falls
short of the Review Limit (or any aggregate Review Limit where one has been
agreed), it being understood that the Unused Line Fee is an aggregate payable by
you or any Associated Business.

     

    
      	
              6.5  

            	
              If
      we provide services to a level of intensity which were not envisaged by us
      at the time of entry into the Agreement (which includes you communicating
      with us other than via the Website) then, in addition to the Service
      Charge, we may make a reasonable charge for all costs and expenses
      (including the cost of our administrative time and resulting loss of
      profit) for providing such
services.

            

    

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    
      	
              6.6  

            	
              If
      at any time you exceed your Availability, then, in addition to demanding
      immediate repayment of the excess, we may by notice to you increase our
      Fees and Charges to reflect our increased
risk.

            

    

     

    
      	
              6.7  

            	
              Value
      Added Tax, where applicable, shall be added to all our Fees and
      Charges. To the
      extent that VAT would become chargeable, we shall promptly provide an
      appropriate VAT invoice.

            

    

     

    
      	
              6.8  

            	
              We
      will make all payments to you or to your order through CSS. For every
      urgent outward payment (spoedbetaling) we will
      charge the Urgent Payment Charge indicated in the Commercial Terms. If we
      agree to make a payment to you other than by CSS we will charge you the
      Transmission Charges indicated in the Commercial
  Terms.

            

    

     

    
      	
              7  

            	
              EXPENSES,
      SET OFF AND INDEMNITY

            

    

     

    
      	
              7.1  

            	
              You
      will indemnify us (and in the case of condition 7.1.6 any bank operating
      the Collection Account or other account nominated by us) for all losses,
      costs, liabilities and expenses (including legal fees) incurred by us (or
      such bank) (and any additional administrative time incurred by us charged
      at such rate as we shall reasonably determine) directly or indirectly as a
      result of:

            

    

     

    
      	
              7.1.1  

            	
              preserving
      or enforcing our rights under the Agreement and any security given for
      it;

            

    

     

    
      	
              7.1.2  

            	
              exercising
      any of our rights under condition 5 or dealing with disputes relating to
      an Invoice;

            

    

     

    
      	
              7.1.3  

            	
              obtaining
      or enforcing a release of Invoices and Related Rights or waiver of rights,
      from any person with a Security
Interest;

            

    

     

    
      	
              7.1.4  

            	
              the
      occurrence of a Termination Event;

            

    

     

    
      	
              7.1.5  

            	
              accepting
      and/or acting upon information or instructions purporting to come from you
      even if that information or those instructions subsequently prove to have
      been incorrect or unauthorised by you (except to the extent that our
      officers have been negligent or
fraudulent);

            

    

     

    
      	
              7.1.6  

            	
              collecting
      and/or crediting to any Collection Account (or any other account nominated
      by us) any cheque or other negotiable instrument payable to you or
      endorsed in your favour;

            

    

     

    
      	
              7.1.7  

            	
              any
      claim by a Customer against us; or

            

    

     

    
      	
              7.1.8  

            	
              you
      breaching the Data Protection Act.

            

    

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    
      	
              7.2  

            	
              We
      may charge you a reasonable fee
for:

            

    

     

    
      	
            	
              7.2.1  

            	
              providing
      any consent, waiver or variation of the Agreement;
  or

            

    

     

    
      	
            	
              7.2.2  

            	
              making
      an Advance which exceeds your
Availability.

            

    

     

    
      	
              7.3  

            	
              We
      may (but are not obliged) at any time without notice to you
      to:

            

    

     

    
      	
            	
              7.3.1  

            	
              set
      off against our liability to you any liability you owe to us;
      and/or

            

    

     

    
      	
            	
              7.3.2  

            	
              combine
      or consolidate all or any of your accounts with
  us;

            

    

     

    in either
case whether arising under the Agreement or any other facility provided by
us.  All your accounts with us, which may be opened for legal,
technical or administrative reasons (and which may have separate names), will be
deemed and will be treated contractually as sub-accounts of a single current
account recording debits and credits that are connected and indivisible, giving
rise to a right of set-off even if the legal conditions for set-off are not
fulfilled.  In order to effect such set off or combination of
accounts, we may convert currencies at the Bank’s spot rate of exchange
prevailing at the time of set off or combination.  Your liability to
us includes any amounts owing by you for goods, work or services provided to you
by another of our clients.  We may make a reasonable estimate of any
amounts contingently or prospectively due from you to us which cannot be
calculated on the date we exercise set off.  We may make debit entries
on your account to effect the intent of the set-off provisions of the
Agreement.  You may not exercise any right of set off or counterclaim
against monies due from you to us.

     

    
      	
              7.4  

            	
              You
      will be responsible for any stamp duty or other tax payable on any
      document transferring title by assignment or pledge (whether to you or us)
      to Invoices, Related Rights or
Goods.

            

    

     

    
      	
              7.5  

            	
              We
      may at any time, at your request or at our discretion, convert any payment
      received by us in or towards settlement of Invoices and/or any of our
      obligations to you or your obligations to us which are owed in a currency
      other than Euro into Euro at the Bank’s prevailing spot rate of
      exchange.  Where the currency of the Current Account is
      different to that in which a Customer pays an Invoice and/or that in which
      the Nominal Amount is paid and as a result there is an exchange rate loss
      or gain when the Invoice is paid, we shall debit any loss and credit any
      gain to the Current Account.

            

    

     

    
      	
              8  

            	
              WARRANTIES

            

    

     

    
      	
              8.1  

            	
              On
      the date of the Agreement and each time you Notify Invoices to us, you
      warrant that:

            

    

     

    
      	
            	
              8.1.1  

            	
              except
      as disclosed to us in writing before the Start Date, there are no Security
      Interests affecting your Invoices and you have not sold your Invoices to
      any other person;

            

    

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              8.1.2  

            	
              you
      have told us about every material fact or matter which you know, or ought
      to have known, might influence us in deciding whether to enter into the
      Agreement or to classify an Invoice as Approved or Disapproved or to
      accept person as a guarantor or in determining any Review Limit or
      Approval Limit; and

            

    

     

    
      	
            	
              8.1.3  

            	
              all
      reports, accounts, and other information supplied to us are accurate and
      complete.

            

    

     

    
      	
              8.2  

            	
              The
      warranty in clause 8.1.2
      includes any past Insolvency of your directors or shareholders or of any
      company in which they have been interested or any disqualification at any
      time of any of your directors or any holder of a corporate mandate acting
      as a director or corporate mandate
holder.

            

    

     

    
      	
              8.3  

            	
              In
      relation to each Invoice Notified to us, you warrant, both on the date of
      Notification and on each Working Day until that Invoice is paid,
      that:

            

    

     

    
      	
            	
              8.3.1  

            	
              the
      Contract of Sale giving rise to the
Invoice:

            

    

     

    
      	
            	
              8.3.1.1  

            	
              is
      valid and enforceable against the
Customer;

            

    

     

    
      	
            	
              8.3.1.2  

            	
              is
      governed by Dutch law or another law approved by us in
      writing;

            

    

     

    
      	
            	
              8.3.1.3  

            	
              provides
      for the Customer to submit to the jurisdiction of the Dutch Courts or the
      courts of an Approved Country;

            

    

     

    
      	
            	
              8.3.1.4  

            	
              does
      not include any prohibition against assignment, pledge or assignation of
      the Invoice or the Contract of
Sale;

            

    

     

    
      	
            	
              8.3.1.5  

            	
              provides
      for payment in Euro or an Approved
Currency;

            

    

     

    
      	
            	
              8.3.1.6  

            	
              provides
      for payment on or before the end of the Funding
  Period;

            

    

     

    
      	
            	
              8.3.1.7  

            	
              does
      not provide for cash on delivery, sale or return or for payment in advance
      or by stage payments; and

            

    

     

    
      	
            	
              8.3.1.8  

            	
              arises
      from your normal trading activities disclosed to us before the Start
      Date;

            

    

     

    
      	
            	
              8.3.2  

            	
              the
      Invoice relates to an actual sale and you have delivered the Goods or
      carried out the works or services to which the Invoice relates according
      to the Contract of Sale;

            

    

     

    
      	
            	
              8.3.3  

            	
              you
      have sent to your Customers all Invoices Notified to us and, in the case
      of Invoice Discounting Clients whose Agreement is disclosed or Factoring
      Clients, those invoices and all reminders and statements include notices
      of assignment, pledge or assignation in our preferred
  form;

            

    

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              8.3.4  

            	
              the
      details of the Invoice Notified to us are correct and complete and the
      Invoice has not been Notified to us
before;

            

    

     

    
      	
            	
              8.3.5  

            	
              the
      Notified Value of each Invoice is the amount due in respect of it and any
      prompt payment or bulk order discount does not exceed that agreed by
      us;

            

    

     

    
      	
            	
              8.3.6  

            	
              no
      right of set-off, compensation or counterclaim exists which will reduce or
      extinguish the Notified Value of an Invoice or affect our ability to
      collect the Invoice in full;

            

    

     

    
      	
            	
              8.3.7  

            	
              so
      far as you are aware, the Customer is creditworthy and is not
      Insolvent;

            

    

     

    
      	
            	
              8.3.8  

            	
              the
      Customer is not an Associated
Business;

            

    

     

    
      	
            	
              8.3.9  

            	
              to
      the extent referred to in the Invoice, the Contract of Sale has been
      performed and the Invoice has become
due;

            

    

     

    
      	
            	
              8.3.10  

            	
              there
      is no Security Interest, tracing or other third party right or claim which
      may adversely affect our title to an Invoice or our Security Interest
      relating to that Invoice, its Related Rights or
  Goods;

            

    

     

    
      	
            	
              8.3.11  

            	
              the
      Customer has an established place of business in the Netherlands or an
      Approved Country;

            

    

     

    
      	
            	
              8.3.12  

            	
              in
      relation to Invoice Discounting Clients and Receivables Clients, the
      Invoice is not a Non-Notifiable
Invoice;

            

    

     

    
      	
            	
              8.3.13  

            	
              if
      the Invoice is an Export Invoice, you additionally warrant
      that:

            

    

     

    
      	
            	
              8.3.13.1  

            	
              the
      Customer has all licences and permits necessary to import and pay for the
      Goods and/or services in the Approved Country;
  and

            

    

     

    
      	
            	
              8.3.13.2  

            	
              the
      export of the Goods or services and payment by the Customer is not
      unlawful under any applicable law.

            

    

     

    
      	
              9  

            	
              UNDERTAKINGS

            

    

     

    
      	
              9.1  

            	
              You
      agree with us that you will:

            

    

     

    
      	
            	
              9.1.1  

            	
              tell
      us immediately:

            

    

     

    
      	
            	
              9.1.1.1  

            	
              about
      any material dispute (whether justifiable or not) between you and a
      Customer and any claim or attempt by a Customer to pay less than the
      Notified Value of an Invoice and give us copies of any
      correspondence;

            

    

     

    
      	
            	
              9.1.1.2  

            	
              anything
      which may materially affect a Customer’s
  creditworthiness;

            

    

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              9.1.1.3  

            	
              if
      any person claims or tries to claim title to your
  Goods;

            

    

     

    
      	
            	
              9.1.1.4  

            	
              if
      whomever controls or manages your company or business
    changes;

            

    

     

    
      	
            	
              9.1.1.5  

            	
              if
      you breach any of your warranties to
us;

            

    

     

    
      	
            	
              9.1.1.5.1  

            	
              about
      any Associated Business and if they start or cease
  trading;

            

    

     

    
      	
            	
              9.1.1.5.2  

            	
              about
      any returned Goods; or

            

    

     

    
      	
            	
              9.1.1.5.3  

            	
              if
      you purchase Goods or services from or owe any money to any Customer or
      there are any contracts or other arrangements between you and your
      Customer, which could reduce the Notified Value of an
    Invoice;

            

    

     

    
      	
            	
              9.1.2  

            	
              if
      we ask:

            

    

     

    
      	
            	
              9.1.2.1  

            	
              give
      us any information about your Customers that we
  require;

            

    

     

    
      	
            	
              9.1.2.2  

            	
              send
      us proofs of delivery or other evidence that you have delivered Goods or
      performed your services according to the Contract of
  Sale;

            

    

     

    
      	
            	
              9.1.2.3  

            	
              tell
      us about your bank accounts and if you open any bank account and, if we
      request, send us copies of any bank statements; for the avoidance of
      doubt, we are aware that you have opened bank accounts for outgoing
      payments;

            

    

     

    
      	
            	
              9.1.2.4  

            	
              at
      your own expense, formally pledge (as instructed) to us in the way we
      require specific Invoices and their Related Rights including any credit
      insurance; or

            

    

     

    
      	
            	
              9.1.2.5  

            	
              keep
      any returned Goods separate from other Goods and deliver them to us or
      deal with them as we direct;

            

    

     

    
      	
            	
              9.1.3  

            	
              try
      to promptly resolve any Customer’s disputes and
  claims;

            

    

     

    
      	
            	
              9.1.4  

            	
              ensure
      that all Invoices are paid at any time into a Collection
      Account;

            

    

     

    
      	
            	
              9.1.5  

            	
              not
      vary any payment terms or settlement discount in respect of any Invoice
      nor waive, vary, rescind or terminate any Contract of
  Sale;

            

    

     

    
      	
            	
              9.1.6  

            	
              promptly
      perform any continuing obligations under any Contract of Sale, such as
      repairing or maintaining Goods, providing drawings, documents or
      information, or performing any other services or
    obligations;

            

    

     

    
      	
            	
              9.1.7  

            	
              promptly
      raise and send to a Customer any credit note that is validly due and then
      Notify it to us.  However, we may at any time require you
      either:

            

    

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              9.1.6.1  

            	
              to
      send credit notes to us for approval and we may send or refuse to send
      them to your Customers; or

            

    

     

    
      	
            	
              9.1.6.2  

            	
              to
      cease issuing credit notes without our specific
  agreement;

            

    

     

    
      	
            	
              9.1.8  

            	
              promptly
      Notify us of any other matters (such as early payment or bulk purchase
      discounts) which may cause the Notified Value of  Invoices to be
      reduced or extinguished and not, without our specific agreement, grant any
      prompt payment or bulk purchase
discount;

            

    

     

    
      	
            	
              9.1.9  

            	
              comply
      with any procedure we set in relation to the day to day administration of
      the Agreement and send us any documents we ask
  for;

            

    

     

    
      	
            	
              9.1.10  

            	
              allow
      our employees or agents to enter your premises (or any location where
      Goods or records are stored) at any reasonable time in order
      to:

            

    

     

    
      	
            	
              9.1.9.1  

            	
              audit
      and verify your sales ledger and to ensure that you are adhering to the
      procedures we require;

            

    

     

    
      	
            	
              9.1.9.2  

            	
              remove
      (or at your expense) copy or check the terms of Contracts of Sale, your
      purchase ledgers, your accounting records (including the status of your
      preferential creditors), correspondence, orders and any other documents or
      computer files we require; or

            

    

     

    
      	
            	
              9.1.9.3  

            	
              review
      those Related Rights capable of review, inspect Goods, or complete a
      Contract of Sale or collateral
contract;

            

    

     

    
      	
            	
              9.1.11  

            	
              maintain
      accurate accounting books and records and have them audited at least once
      every year and as soon as the accounts have been signed off or at the
      latest within eight months of the end of your financial year send us a
      copy of your audited accounts, together with any statement or report from
      your auditors and the annual management
report;

            

    

     

    
      	
            	
              9.1.12  

            	
              each
      month provide us with a profit and loss account and balance sheet of each
      trading entity and from Milacron B.V. (referred to as Europe) and a
      reconciliation between the month end open item sales ledger and the
      statement from LloydsTSB and promptly send us any other financial or other
      information we may request relating to your business or
      affairs;

            

    

     

    
      	
            	
              9.1.13  

            	
              give
      our bankers such instructions or indemnities as they may require to
      collect non-transferable instruments made payable to you;
    and

            

    

     

    
      	
            	
              9.1.14  

            	
              provide
      us with such security as we may from time to time reasonably require to
      secure the Secured Obligations.

            

    

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    
      	
              9.2  

            	
              You
      will not:

            

    

     

    
      	
            	
              9.2.1  

            	
              except
      where we have agreed in writing, create any Security
      Interest  over your Invoices or rights under the Agreement nor
      factor nor discount your Invoices other than to us;
  and/or

            

    

     

    
      	
            	
              9.2.2  

            	
              enter
      into any hire purchase or equipment leasing facilities without first
      obtaining an offer from us.

            

    

     

    
      	
            	
              9.2.3  

            	
              open
      any bank account (which is not a Collection Account) without our prior
      consent.

            

    

     

    
      	
              10  

            	
              TERMINATION
      EVENTS

            

    

     

    
      	
              10.1  

            	
              Each
      of the following is a Termination
Event:

            

    

     

    
      	
            	
              10.1.1  

            	
              you
      breach or threaten to breach any warranty, undertaking or other obligation
      given or undertaken by you in the
Agreement;

            

    

     

    
      	
            	
              10.1.2  

            	
              you
      fail to pay any sum due from you to us under the
  Agreement;

            

    

     

    
      	
            	
              10.1.3  

            	
              you
      become Insolvent, or any step is taken which could result in you becoming
      Insolvent;

            

    

     

    
      	
            	
              10.1.4  

            	
              you fail to pay any sum due under
      any other financing facility made available by us or any other person to
      you or otherwise breach the terms of any such
  facility;

            

    

     

    
      	
            	
              10.1.5  

            	
              any
      person who has given us a guarantee or indemnity or granted a Security
      Interest as security for your obligations to us dies or becomes Insolvent
      or gives or attempts to give notice terminating, amending or withdrawing
      such guarantee, indemnity or
security;

            

    

     

    
      	
            	
              10.1.6  

            	
              you
      sell or dispose of the whole or a substantial part of your undertaking,
      property or assets or cease to carry on the business conducted by you on
      the date of the Agreement;

            

    

     

    
      	
            	
              10.1.7  

            	
              without
      our prior written consent, there is a material change in composition of
      your board of directors or partners or senior management or any change in
      the ownership of 10 per cent or more of your shares (unless such change is
      a result of a transfer of shares to an Associated Business) or in your
      constitution or composition;

            

    

     

    
      	
            	
              10.1.8  

            	
              we
      reasonably consider there is a deterioration in your overall financial
      condition or in your operating performance or your overall management and
      control or in your general day to day administration and organisation or
      in your sales ledger administration or credit control
      procedures;

            

    

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              10.1.9  

            	
              any
      person, who has waived or released its rights to your Invoices or their
      Related Rights, withdraws or attempts to withdraw, such waiver or release
      or otherwise asserts any interest in your Invoices or Related
      Rights;

            

    

     

    
      	
            	
              10.1.10  

            	
              you
      attempt to reject any variation to the Operating Conditions made by
      us;

            

    

     

    
      	
            	
              10.1.11  

            	
              any
      of the Secured Obligations owing by a Guaranteed Company become due and
      payable; and

            

    

     

    
      	
            	
              10.1.12  

            	
              the
      Agreement or any guarantee, indemnity or Security Interest granted as
      security for your obligations to us ceases to be legally valid, binding or
      enforceable or it is or becomes unlawful for you or any other person to
      perform your or their obligations under the Agreement or such guarantee,
      indemnity or security and any such defect is not remedied within 10
      Working Days after determination of such
defect.

            

    

     

    
      	
              10.2  

            	
              Upon
      or at any time after a Termination Event has occurred (whether or not we
      actually terminate the Agreement) or following the expiry of any notice to
      terminate the Agreement, we may by written notice to you (and as well as
      exercising any of our other rights under the Agreement or any other
      facility we have made available to you) do all or any of the following
      (either at the same time or at separate
times):

            

    

     

    
      	
            	
              10.2.1  

            	
              if
      the Facility is confidential, disclose this Facility to your Customers and
      simultaneously or at a later date cancel your agency to collect
      Invoices;

            

    

     

    
      	
            	
              10.2.2  

            	
              reduce
      the Advance Rate to zero or such other percentage as we may
      decide;

            

    

     

    
      	
            	
              10.2.3  

            	
              classify
      all or any Invoices as Disapproved;

            

    

     

    
      	
            	
              10.2.4  

            	
              apply a Reserve in such amount as
      we may decide;

            

    

     

    
      	
            	
              10.2.5  

            	
              combine
      your Current Accounts (if you have more than one) and any loan or other
      accounts maintained by us;

            

    

     

    
      	
            	
              10.2.6  

            	
              refuse
      requests for withdrawals from the Current
  Account;

            

    

     

    
      	
            	
              10.2.7  

            	
              demand
      immediate payment of:

            

    

     

    
      	
            	
              10.2.7.1  

            	
              any
      Debit Balance on your Current Account (or combined Current
      Accounts);

            

    

     

    
      	
            	
              10.2.7.2  

            	
              any
      Fees and Charges or other monies or liabilities which you owe us actually,
      contingently or prospectively.  If we cannot calculate the
      precise amount owing to us on the date of demand we may include a
      reasonable estimate in our demand;

            

    

     

    
      	
            	
              10.2.8  

            	
              debit
      to your Current Account, in addition to any ot her fees to which we may be
      entitled, a fee equal to 10% of the Notified Value of all Invoices
      (including VAT) which are unpaid on the date we serve notice under this
      clause and which come into existence thereafter.  You agree that
      this fee represents a reasonable estimate by us of the costs of the
      additional services and administration which will be provided by us
      following a Termination Event;

            

    

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              10.2.9  

            	
              terminate
      the Agreement and charge you the fees for early termination (if
      applicable) referred to in the Asset Based Finance
    Agreement;

            

    

     

    
      	
            	
              10.2.10  

            	
              at
      your cost appoint accountants or any other professional to investigate
      your business, assets or affairs, to ascertain your financial position or,
      in the case of Invoice Discounting Clients, review your sales ledger
      administration and/or credit control
procedures;

            

    

     

    
      	
            	
              10.2.11  

            	
              if
      you are an Invoice Discounting Client, request you to start Notifying
      Non-Notifiable Invoices to us and/or convert you to a Factoring
      Client.

            

    

     

    
      	
              10.3  

            	
              Termination
      of the Agreement will not affect any of your or our respective rights and
      obligations which arose under it prior to such termination and, in
      particular, our rights in respect of Invoices assigned or pledged to us
      and our power of attorney will survive such termination.  You
      will continue, subject to applicable Insolvency laws, to Notify Invoices
      to us after termination of the Agreement and after the occurrence of a
      Termination Event until, in either case, repayment of all Debit Balances.
      Such rights and obligations shall only cease when all monies due from you
      to us and from us to you have been paid in
full.

            

    

     

    
      	
              11  

            	
              ASSIGNMENT
      OR PLEDGE OF INVOICES

            

    

     

    
      	
              11.1  

            	
              In
      the event the Facility relates to Factoring, you will undertake to assign
      on a disclosed basis to us all your Invoices which are outstanding on the
      Start Date and you undertake to assign on a disclosed basis in advance all
      your Invoices, which arise after the Start Date until the Agreement
      terminates. The relevant provisions on assignment in the Operating
      Conditions Part II and Part IV for Factoring Clients apply
      accordingly.

            

    

     

    
      	
              11.2  

            	
              In
      the event the Facility relates to Invoice Discounting, Invoice Discounting
      or Receivables Financing, with export and currency facilities, you will
      undertake to pledge either on a disclosed basis (openbaar pandrecht) or
      on an undisclosed basis (stil pandrecht) to us
      all your Invoices which are outstanding on the Start Date and you
      undertake to pledge either on a disclosed basis (openbaar pandrecht) or
      on an undisclosed basis (stil pandrecht) in
      advance all your Invoices, which arise after the Start Date until the
      Agreement terminates. The relevant provisions to pledge either on a
      disclosed basis (openbaar pandrecht) or
      on an undisclosed basis (stil pandrecht) in the
      Operating Conditions Part II, Part III or Part V for Invoice Discounting
      Clients apply accordingly.

            

    

     

    
      	
              11.3  

            	
              We
      grant you the authority as provided in Art. 3:246 paragraph 4 of the Dutch
      Civil Code, to have and accept the right to, until the occurrence of a
      default (verzuim), to collect
      any Invoices from any relevant debtor without restriction and to make if
      possible the Invoices due and payable. Following default, we shall
      henceforth exclusively be entitled to collect the pledged or assigned
      Invoices, to receive payments and to make – if possible – the pledged or
      assigned Invoices due and payable.

            

    

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    
      	
              11.4  

            	
              Notwithstanding
      the provisions of condition 5 above, upon the occurrence of a Termination
      Event which constitutes a default (verzuim) within the
      meaning of Article 6:81 and Article 3:248 of the Dutch Civil
      Code:

            

    

     

    
      	
              (i)  

            	
              we
      can take, and are hereby authorised to take, all necessary judicial and
      extra-judicial measures.  If we do take measures as mentioned in
      the previous sentence, you will offer any and all required support,
      including but not limited to all necessary documents and information with
      regard to the relevant Invoice;

            

    

     

    
      	
              (ii)  

            	
              in
      the case of an undisclosed pledge or assignment, you will promptly notify
      (mededeling) in
      writing, at your own costs, the existence of the pledge or assignment
      to:

            

    

     

    
      	
              (a)  

            	
              a
      third party or the court process server (deurwaarder) acting on
      behalf of such third party making an attachment (beslag) on its
      Invoices; or

            

    

     

    
      	
              (b)  

            	
              its
      bankruptcy trustee (curator), administrator
      (bewindvoerder)
      or similar officer in any jurisdiction;
or

            

    

     

    
      	
              (c)  

            	
              any
      other relevant person, as the case may
be.

            

    

     

    you may
serve notice to instruct any relevant debtor owing pledged or assigned Invoices
to make any and all payments in or towards satisfaction of such pledged or
assigned Invoices to us in accordance with Article 3:246 of the Dutch Civil
Code.

     

    
      	
                    
      11.5

            	
              You
      are not entitled to request the President of the competent court (rechtbank) to order
      that the Invoices shall be sold in a manner deviating from the provisions
      of Article 3:250 of the Dutch Civil
Code.

            

    

     

    
      	
              12  

            	
              REPURCHASE

            

    

     

    
      	
              12.1  

            	
              We
      may at any time (i) reassign all or any Invoices and their Related Rights,
      (ii) or release the pledge of all or any Invoices and their Related
      Rights, to you.

            

    

     

    
      	
              12.2  

            	
              The
      repurchase price payable by you to us for any Invoice repurchased by you
      will be its Notified Value plus all relative Fees and Charges less all
      sums received in or towards discharge of the Invoice.  If we
      require you to repurchase all of your Invoices, then, for administrative
      convenience, their repurchase price will be the Debit Balance after we
      have debited all Fees and Charges and any other monies and liabilities
      actually, contingently or prospectively owing by you to
  us.

            

    

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

    
      	
              12.3  

            	
              Upon
      payment of the repurchase price for an Invoice, our rights in that Invoice
      and its Related Rights will transfer to you.  We will, if
      requested by you, at your expense, execute a formal re-assignment or
      release letter to you of any Invoices repurchased and give notice of such
      repurchase to your Customers.

            

    

     

    
      	
              12.4  

            	
              This
      Condition 12 is not applicable to Receivable
  Clients.

            

    

     

    
      	
              13  

            	
              COMMUNICATIONS
      BETWEEN US

            

    

     

    
      	
              13.1  

            	
              Unless
      we agree otherwise, you will Notify us of all Invoices, credit and debit
      notes, daily cash collections (if you are an Invoice Discounting Client)
      and all other sale and purchase ledger information electronically through
      the Website and in such format as we may
  require.

            

    

     

    
      	
              13.2  

            	
              We
      will provide regular statements to you relating to your accounts with us
      electronically through the Website, unless we agree otherwise. It is your
      responsibility to access this information and other communications from us
      by accessing the Website on a regular basis.  Unless you notify
      us within 30 days of us posting your statement to the Website that any
      item is incorrect, then, that statement will be binding upon you, unless
      we have made an obvious error.

            

    

     

    
      	
              13.3  

            	
              All
      information we provide to each other through the Website (unless corrupted
      as a result of technical failure) has the same status as if it had been in
      writing or other printed form and signed by the provider and neither of us
      will challenge the validity of such information solely because it was
      prepared, sent or received only in electronic form.  Where the
      Agreement requires a consent, waiver or notice given by us to be in
      writing such condition shall (unless it is notice to terminate or a
      variation of the Commercial Terms) be satisfied if it is transmitted
      through the Website.  We may require you to provide hard copies
      of any information provided by you
  electronically.

            

    

     

    
      	
              13.4  

            	
              In
      any proceedings or claim, you will accept and be bound by a certificate
      signed by us as to the balance on any accounts and the amounts due and
      owing by either of us to the other, unless we have made an obvious
      error.

            

    

     

    
      	
              13.5  

            	
              We
      may accept and rely upon any signature, communication or information
      ostensibly sent by you even though you may not actually have given or sent
      it or the sender or provider had no authority to send or provide
      it.  This applies whether the communication is written, oral or
      through the Website.

            

    

     

    
      	
              13.6  

            	
              In
      regard to the form of pledge and/or assignment that you must provide us on
      each Notification Date, you will provide us with an original form manually
      signed by a duly authorised representative or, or in any other form as
      agreed with you, from time to time.

            

    

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    
      	
              14  

            	
              VARIATIONS

            

    

     

    
      	
              14.1  

            	
              The
      Agreement incorporates the Operating Conditions in force from time to
      time.  Variations to these Operating Conditions can be made by
      us after consultation with you. Any variation shall take effect
      immediately after we have reached an agreement on the variations to be
      made.

            

    

     

    
      	
              14.2  

            	
              If
      we are unable to reach an agreement (acting upon good faith) on the
      variation of the Operating Conditions, we shall agree upon a date which is
      not later than two months after cessation of our negotiations to reach an
      agreement, after which date you shall cease to use the Facility and repay
      all amounts outstanding.

            

    

     

    
      	
              14.3  

            	
              The
      Agreement incorporates the Commercial Terms in force from time to
      time.  We may mutually agree to change the Commercial Terms. In
      these circumstances, we shall both agree revised Commercial Terms which
      are to apply and they will be provided to you in hard copy
      form.  Any such revised Commercial Terms which are then signed
      on behalf of each of us shall be deemed to be the new Commercial Terms and
      shall vary the previous Commercial Terms from the date of the last
      signature on such revised Commercial
Terms.

            

    

     

    
      	
              15  

            	
              COMMUNICATIONS
      WITH PROFESSIONALS AND OTHERS

            

    

     

    
      	
              15.1  

            	
              We
      may:

            

    

     

    
      	
            	
              15.1.1  

            	
              provide
      your bank, the Bank or any company in the Bank’s group or your auditors,
      accountants and other professional advisers with such information as they
      may require in relation to your business and affairs and the terms,
      operation and account balances under the
  Agreement;

            

    

     

    
      	
            	
              15.1.2  

            	
              obtain
      from your bank, auditors, accountants and other professional advisers such
      information as we may require;
and/or

            

    

     

    
      	
            	
              15.1.3  

            	
              subject
      to us consulting with you prior thereto, obtain from your Customers their
      consent to taking of references from their
  bankers.

            

    

     

    
      	
              15.2  

            	
              You
      have (or will) authorise the persons referred to above to give us such
      information.

            

    

     

    
      	
              15.3  

            	
              We
      may disclose such information about you and any other person as we see fit
      to any potential assignee, transferee, sub-participant or delegate of our
      rights or obligations under the
Agreement.

            

    

     

    
      	
              16  

            	
              DATA
      PROTECTION

            

    

     

    
      	
              16.1  

            	
              You
      agree that any and all information you supply to us or that we may
      otherwise acquire relating to any individual associated with or engaged by
      your business and/or a Customer’s business (including but not limited to a
      sole trader, director, shareholder, partner, member, employee, guarantor
      and/or indemnifier) may be used by us for the purposes
  of:

            

    

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              16.1.1  

            	
              deciding
      whether to enter into the Agreement with
you;

            

    

     

    
      	
            	
              16.1.2  

            	
              performance
      of the Agreement and/or any other ancillary or related
      agreement;

            

    

     

    
      	
            	
              16.1.3  

            	
              exercising
      our right and/or obligations under the Agreement and/or any other
      ancillary or related agreements;
and/or

            

    

     

    
      	
            	
              16.1.4  

            	
              preventing
      fraud and/or money laundering;

            

    

     

    any may
be disclosed to and/or used by the Bank and any company in the Bank’s group
and/or any credit reference agencies and fraud prevention and/or prosecution
agencies.

     

    
      	
              16.2  

            	
              Where
      you provide Personal Data to us about any individual who is not a party to
      the Agreement, you warrant and undertake that the Personal Data have been
      collected, processed and transferred in accordance with applicable data
      protection laws (including the Data Protection Act) and that the
      individuals concerned have explicitly agreed to the use and disclosure of
      such Personal Data (which may include Sensitive Personal Data) in
      accordance with the terms of this condition
16.

            

    

     

    
      	
              16.3  

            	
              You
      warrant that you are registered under the Data Protection Act as a data
      controller, that you have duly completed any and all filings, declarations
      or other formalities required by law in this regard, and that your
      registration, declarations and filings cover the processing of Personal
      Data in accordance with the
Agreement.

            

    

     

    
      	
              16.4  

            	
              You
      warrant that you shall process any Personal Data of which we are a data
      controller (as defined under the Data Protection Act) in accordance with
      any and all data protection legislation in force from time to
      time.  In processing such Personal Data, you shall act only upon
      instructions given to you by us, unless otherwise required by law and/or
      by the data subject where
appropriate.

            

    

     

    
      	
              16.5  

            	
              You
      warrant to take appropriate technical and organisational security measures
      in order to safeguard the Personal Data being processed in accordance with
      the Agreement, from accidental loss or destruction, from alteration or
      unauthorised disclosure or access, and from any unlawful forms of
      processing.  You shall notify us immediately of any breaches of
      security in relation to such Personal Data immediately upon becoming aware
      of such breaches.  We shall be entitled to carry out and/or
      engage a third party to carry out on our behalf, an audit of your premises
      to check your compliance with this condition 16.  You warrant
      that any third party you authorise to have access to the Personal Data
      will respect and maintain the security and confidentiality of the Personal
      Data and will only act under your
instructions.

            

    

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

     

    
      	
              16.6  

            	
              We
      shall be entitled to transfer any Personal Data processed in accordance
      with the Agreement outside the EEA.  You warrant and undertake
      that you have obtained any necessary consents from relevant individuals
      and/or agencies for such transfer.

            

    

     

    
      	
              16.7  

            	
              Each
      party shall appoint and identify to the other party a named individual
      within its organisation to act as a point of contact for the other party
      or any regulator relating to Personal
Data.

            

    

     

    
      	
              17  

            	
              PARTNERSHIPS
      AND SOLE TRADERS

            

    

     

    
      	
              17.1  

            	
              Where
      you are a partnership, the provisions of this condition 17
      apply.

            

    

     

    
      	
              17.2  

            	
              The
      undertakings and warranties contained in the Agreement are given by each
      member or partner and your obligations to us are joint and
      several.

            

    

     

    
      	
              17.3  

            	
              We
      may:

            

    

     

    
      	
            	
              17.3.1  

            	
              release
      or reach a compromise with any member or partner without affecting our
      rights against the other members or partners or the
      partnership;

            

    

     

    
      	
            	
              17.3.2  

            	
              treat
      a notice or demand by us to any member or partner as a notice or demand
      given to the other members or partners or to the partnership (but we need
      not treat a notice or demand in such
manner);

            

    

     

    
      	
            	
              17.3.3  

            	
              treat
      a notice or demand by any member or partner to us, as a notice or demand
      given by the firm or all the members or partners (but we need not treat a
      notice or demand in such manner);

            

    

     

    
      	
            	
              17.3.4  

            	
              treat
      the Agreement as binding upon any successors, heirs, assigns or personal
      representative of any of you and upon any agent, administrator, liquidator
      or other persons acting on behalf of any of you, whether court-appointed
      or voluntary; and

            

    

     

    
      	
            	
              17.3.5  

            	
              require
      you to include wording on each Notification so that it takes effect as an
      offer by you to sell us the Invoices referred to in
  it.

            

    

     

    
      	
              17.4  

            	
              You
      will notify us in writing as soon as any member or partner leaves the
      partnership.

            

    

     

    
      	
              17.5  

            	
              A
      retiring member or partner will have no obligations to us in respect of
      Invoices assigned or pledged to us after you have notified us of his
      retirement.  However, he will remain liable to us for all
      matters occurring prior to such
notification.

            

    

     

    
      	
              17.6  

            	
              You
      warrant that the individuals or entities signing the Agreement comprise
      all your members or partners.  You will notify us of the
      admission of a new member or partner to your partnership.  You
      will procure that any new member or partner executes such documents we may
      require to ensure that he is bound by the terms of the Agreement and is
      placed under the same obligations as you.  If you change your
      trading style, or adopt another style, or incorporate your business, you
      will notify us of such fact, and if required by us, enter into such
      further agreement with us as may be
necessary.

            

    

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

     

    
      	
              17.7  

            	
              Notwithstanding
      any change in your partnership, we may account to you or exercise all our
      rights against you, including our right of set off as if there had been no
      such change.

            

    

     

    
      	
              17.8  

            	
              If
      required by us, you will take all steps necessary to enable us to proceed
      to any legal formalities we deem necessary for the recognition of the
      Agreement.

            

    

     

    
      	
              17.9  

            	
              If
      you are a sole trader, you will seek our consent before entering into a
      partnership with another person or incorporating your
      business.

            

    

     

    
      	
              18  

            	
              NOTICES

            

    

     

    
      	
              18.1  

            	
              Any
      notice given by us to you to terminate the Agreement or vary the
      Commercial Terms shall be in writing and sent by post or by
      courier.  Any other notice from us to you may be given by post,
      courier, telephone, facsimile or e-mail.  Any notice served by
      post shall be addressed to you at either your address stated in the
      Commercial Terms, your registered office or the address last known to us
      at which you carried on business.

            

    

     

    
      	
              18.2  

            	
              Notices
      and other communications sent or given by us shall be treated as
      served:

            

    

     

    
      	
            	
              18.2.1  

            	
              if
      delivered by courier: at the time of
delivery;

            

    

     

    
      	
            	
              18.2.2  

            	
              if
      posted: 48 hours after posting or upon receipt (whichever is earlier);
      and

            

    

     

    
      	
            	
              18.2.3  

            	
              if
      sent or given by telephone, facsimile or e-mail at the time of the
      conversation or transmission (unless the sender knows or ought reasonably
      to have been aware of a transmission
failure).

            

    

     

    
      	
              18.3  

            	
              Any
      notice given by you to us, including notice to terminate the Agreement,
      must be in writing and sent by registered post, return receipt requested,
      to us at our registered office or such other address as we advise to you
      in writing for this purpose and will take effect when it is received by
      us.

            

    

     

    
      	
              19  

            	
              GENERAL

            

    

     

    
      	
              19.1  

            	
              We
      may novate or assign any of our obligations, rights and remedies under the
      Agreement or sub-contract or delegate our obligations or
      duties.  You will not assign any of your rights nor delegate any
      of your duties under the Agreement.

            

    

     

    
      	
              19.2  

            	
              No
      delay or omission by us in exercising any of our rights or remedies shall
      impair or operate as a waiver of them.  No waiver by us of any
      breach of your obligations to us shall constitute a waiver of any other
      breach.  No single, partial or defective exercise by us of any
      right shall preclude our further exercise of our rights.  Our
      rights are cumulative and not exclusive of any rights provided at law or
      in equity.

            

    

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

     

    
      	
              19.3  

            	
              The
      terms of the Agreement are agreed by us and by you to be reasonable.
      However, if any provision is valid only if some other provision or a part
      of it is deleted then such other part or provision shall be treated as
      deleted.

            

    

     

    
      	
              19.4  

            	
              Except
      where specifically provided, the Agreement may only be enforced by the
      parties to it and the parties may rescind or vary it without the consent
      of any other person.

            

    

     

    
      	
              20  

            	
              INTERPRETATION

            

    

     

    
      	
              20.1  

            	
              In
      the Agreement:

            

    

     

    
      	
              20.2  

            	
              unless
      the context otherwise provides, the singular includes the plural and vice
      versa;

            

    

     

    
      	
              20.3  

            	
              a
      reference to any gender includes any other
  gender;

            

    

     

    
      	
              20.4  

            	
              the
      headings are for convenience only and shall be ignored in its
      interpretation;

            

    

     

    
      	
              20.5  

            	
              references
      to a “clause” or “condition” are to a clause of the Commercial Terms or a
      condition of the Operating Conditions and, unless otherwise specified, any
      reference to a condition, is to a condition in the Operating Conditions –
      Part II – Provisions relating to all
Clients;

            

    

     

    
      	
              20.6  

            	
              references
      to the “Agreement” are to the receivables finance agreement entered into
      by both of us and the Operating Conditions incorporated therein as varied,
      replaced or supplemented from time to
time;

            

    

     

    
      	
              20.7  

            	
              any
      reference to a “person” is to any individual, firm, company, corporation
      or partnership;

            

    

     

    
      	
              20.8  

            	
              the
      meaning of general words introduced by the word “other” is not to be
      limited by reference to any preceding word indicating a particular class
      of acts, matters or things;

            

    

     

    
      	
              20.9  

            	
              unless
      the context otherwise requires, where in or in relation to any place
      outside the Netherlands, the meaning of a word or expression used in the
      Agreement is to be considered and such word or expression has no
      counterpart in that place, it is to have the meaning of its closest
      equivalent in that place;

            

    

     

    
      	
              20.10  

            	
              any
      reference to a law, decree or any subordinate or other legislation or
      regulation shall be construed as a reference to that legislation or
      regulation as subsequently amended or re-enacted and shall include all
      subordinate text deriving authority from any
  law;

            

    

     

    
      	
              20.11  

            	
              any
      term or phrase defined in the Dutch Civil Code (whether capitalised or
      not) bears the same meaning in the
Agreement;

            

    

     

    
      	
              20.12  

            	
              any
      reference to “we” or “us” includes our transferees and assignees;
      and

            

    

     

    
      	
              20.13  

            	
              any
      reference to “you” means you in whatever name or style you carry on
      business.

            

    

     

    
      
         

      

      
        44

        
          

        

      

      
         

        
          Execution
copy

        

      

    

    

     

    OPERATING
CONDITIONS - PART III

     

    PROVISIONS
RELATING TO INVOICE DISCOUNTING CLIENTS ONLY

     

     

    
      	
              1  

            	
              AGENCY
      APPOINTMENT

            

    

     

    
      	
              1.1.  

            	
              We
      appoint you as our agent, at your expense, to administer Customers’
      accounts and to collect and enforce payment of Invoices for our
      benefit.  You accept such appointment and agree to act promptly
      and efficiently in carrying out your duties and to follow any instructions
      which we may give you.  You will ensure that all Invoices are
      promptly and accurately entered in your sales ledger.  You will
      instruct your bankers to transfer to the Collection Account all credit
      transfers received by you.  You will not instruct a lawyer or
      other agent to collect any Invoice without our prior written approval and,
      then, only on terms approved by us.

            

    

     

    
      	
              1.2.  

            	
              You
      will open a Collection Account in respect of each Invoice Discounting,
      Currency and/or Export Facility made available by us to
      you.  All balances in the Collection Account are held solely for
      our account and benefit in escrow and you will notify the bank holding the
      Collection Account of such exclusivity and take all steps necessary,
      including the conclusion of an escrow agreement, to implement the
      exclusivity.  Until notice from us to the contrary, you will
      direct your Customers to settle their Invoices by making payment directly
      into that account.  If you receive payment (even if it is made
      payable to us) you will immediately upon receipt pay it into the
      Collection Account.  Alternatively, if we require, you will
      deliver to us or pay into such bank account as we may nominate all cash or
      other remittances endorsing the same where necessary. You will keep any
      payment received by you as our agent, pending payment into the Collection
      Account or to any other account nominated by us, separate from your own
      money.

            

    

     

    
      	
              1.3.  

            	
              [You
      shall grant, whether or not in advance, for our benefit, a disclosed first
      priority right of pledge (openbaar pandrecht eerste in
      rang) over the balances in the Collection Account in our favour, in
      the manner set forth in Article 3:236 paragraph 1 jo. Article 3:98 jo 3:94
      paragraph 1 of the Dutch Civil Code, and in accordance with the form
      advised by us.]

            

    

     

    
      	
              1.4.  

            	
              Where
      we have agreed that the Agreement is disclosed, then you will include the
      wording which we will provide to you on each
  Invoice.

            

    

     

    
      	
              1.5.  

            	
              Where
      we have agreed that the Agreement is confidential, then, for the moment,
      neither you nor we will notify your Customers that you have pledged your
      Invoices to us.  However, we may at any time vary or terminate
      your agency to collect either some or all of your Invoices.  We
      may:

            

    

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              1.5.1.  

            	
              give
      (or require you to give) notice to some or all of your Customers of the
      pledge of their Invoices and the Related Rights to
  us;

            

    

     

    
      	
            	
              1.5.2.  

            	
              either
      simultaneously with giving such notice or at a later date, instruct your
      Customers to pay us directly;

            

    

     

    
      	
            	
              1.5.3.  

            	
              require
      you to send us a copy of your sales and purchase ledger and such other
      records as we may require;

            

    

     

    
      	
            	
              1.5.4.  

            	
              require
      you to forward all Invoices to us for issuing by us and we will, at your
      expense, administer Customers’
accounts.

            

    

     

    
      	
              1.6.  

            	
              You
      will confirm to your Customers the effect of any notice served on them and
      if your agency to collect Invoices has been terminated you will cease to
      hold yourself out as our agent to collect Invoices.  The
      provisions of condition 5 of the Operating Conditions – Part II –
      Provisions relating to all Clients shall then
  apply.

            

    

     

    
      	
              1.7.  

            	
              You
      will pay those costs specified in the Commercial Terms for maintaining the
      Collection Account.

            

    

     

    
      	
              1.8.  

            	
              You
      hereby authorise us or any person nominated by us to contact your
      Customers to verify the amount of each Invoice due from them, the due date
      for payment and in the case of overdue Invoices, the date when payment can
      be expected.  You will assist us or our nominee in any way we
      require and you authorise us and them to disclose their identity if
      required to do so by law or if requested by a
  Customer.

            

    

     

    
      	
              2.  

            	
              PLEDGE
      OF INVOICES - DISCLOSED

            

    

     

    
      	
              2.1.  

            	
              You
      hereby pledge to us on the terms of the
  Agreement:

            

    

     

    
      	
            	
              2.1.1.  

            	
              all
      your Invoices which are outstanding on the Start Date;
  and

            

    

     

    
      	
            	
              2.1.2.  

            	
              all
      your Invoices, which arise after the Start Date until the Agreement
      terminates, from the list of Customers set out in Annex I to these
      Operating Conditions, as agreed and amended by the parties from time to
      time.

            

    

     

    In order
to perfect the pledge of the Invoices as referred to in 2.1.1 and 2.1.2 you will
execute a deed of pledge substantially in accordance with the form of agreement
as set out in Annex II to these Operating Conditions, and Notify in writing all
Customers set out in Annex I to these Operating Conditions of the pledge of
their Invoices to us in the form set in Annex III and, insofar as necessary, you
hereby provide us the authority to effect such Notification ourselves, in the
event you fail to deliver such Notifications.

     

    Other
than as set our above, neither of us needs to take any further action to pledge
your current and future Invoices pledged by this clause.

     

    At the
same time as you pledge your Invoices to us, you also pledge (and will offer to
pledge) to us Related Rights in relation to those Invoices.  We will
credit to your Current Account the Notified Value of any invoices and their
Related Rights so pledged by you to us. Neither of us needs to take any other
further action to pledge to us such Related Rights, but you agree to deliver
such further documents and take such further action as we may reasonably require
in furtherance of the Agreement in regard to the pledge of such Related Rights.
It is specified that in the case of Related Rights which are constituted by
negotiable instruments such as bills of exchange, drafts and notes, such
instruments will be endorsed to our favour upon the pledge of the corresponding
Invoices, in view of collection of such instruments on their maturity
dates.

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

     

    
      	
              2.2  

            	
              If
      an Invoice or its Related Rights is for any reason not formally pledged to
      us, you will hold such Invoice and its Related Rights for us as our agent
      and for our account and benefit.  If you receive any cash or
      other forms of payment for any Invoices,
then:

            

    

     

    
      	
            	
              2.2.1.  

            	
              you
      will hold them for us as our agent and for our account and
      benefit;

            

    

     

    
      	
            	
              2.2.2.  

            	
              you
      will immediately deliver such payments to us (endorsed to us, if
      necessary) or pay them into the Collection Account, the Current Account or
      any such bank account as we tell you, but you must not pay them into any
      other bank account; and

            

    

     

    
      	
            	
              2.2.3.  

            	
              For
      the avoidance of doubt, we hereby remind you that this Facility is with
      recourse, being expressly agreed that we shall have recourse against you
      in relation to any pledge of Invoices and Related Rights, as expressly
      agreed between us.

            

    

     

    
      	
              2.3.  

            	
              As
      security of your payment obligations under the Agreement, you hereby
      pledge in our favour whether or not in advance, in accordance with Article
      3:236 Dutch Civil Code, any credit rights arising from the Invoices, as
      well as the Invoices themselves and their Related Rights, for the amount
      resulting from the difference between the aggregate Nominal Amount of the
      Notified Invoices and the application of the Advance Rate to such
      aggregate Purchase Price. Upon payment by the Customers of any Invoice,
      the pledge shall be deemed to be automatically extended to any amounts
      collected. Enforcement of this pledge shall be effected by means of
      set-off, compensation or
counterclaim.

            

    

     

    
      	
              2.4.  

            	
              Article
      3:236 paragraph 2 jo. article 3:98 jo. 3:97 and 3:94 paragraph 1 of the
      Dutch Civil Code apply, mutatis mutandis, to all Invoices and Related
      Rights that come into existence after the date of execution of the
      Agreement.

            

    

     

    
      	
              2.5.  

            	
              Notwithstanding
      (but without prejudice to) the foregoing, in order to render the pledge
      enforceable against third parties, you will deliver to us on or prior to
      each date of Notification a valid and duly completed and signed pledge
      form covering the Notified Invoices and their Related Rights, and you will
      deliver such further documents and take such further actions as we may
      reasonably require in furtherance of the Agreement.  A sample
      pledge form for this purpose is attached as Annex
  II.

            

    

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

     

    
      	
              3.  

            	
              PLEDGE
      OF INVOICES - UNDISCLOSED

            

    

     

    
      	
              3.1  

            	
              You
      hereby pledge to us on the terms of the
  Agreement:

            

    

     

    
      	
            	
              3.1.1  

            	
              all
      your Invoices which are outstanding on the Start Date;
  and

            

    

     

    
      	
            	
              3.1.2  

            	
              all
      your Invoices, which arise after the Start Date until the Agreement
      terminates, from the list of Customers set out in Annex I to these
      Operating Conditions, as agreed and amended by the parties from time to
      time.

            

    

     

    In order
to perfect the pledge of the Invoices as referred to in 3.1.1 you undertake to
submit a signed form of pledge agreement (and any ancillary or supporting
document) as set out in Annex IV to these Operating Conditions together with
Annex I to these Operating Conditions disclosing the transaction details
relating to all Customers, no later than two Business Days after the execution
of the Agreement, for registration purposes with the competent Dutch tax
authorities (Inspectie der
Registratie en Successie) and, insofar as necessary, you hereby provide
us the authority to effect such registration ourselves, in the event you fail to
deliver such registrations.

     

    In order
to perfect the pledge of the Invoices as referred to in 3.1.2 you undertake to,
on a [monthly1] basis, submit a signed pledge agreement as
set out in Annex IV to these Operating Conditions, no later than two Business
Days after the preceding [month2], for registration purposes and any ancillary
or supporting document with the competent Dutch tax authorities (Inspectie der Registratie en
Successie) and, insofar as necessary, you hereby provide us the authority
to effect such registration ourselves, in the event you fail to deliver such
registrations.

     

    Neither
of us needs to take any further action to pledge of your current and future
Invoices pledged by this clause.

     

    At the
same time as you pledge your Invoices to us, you also pledge (and will offer to
pledge) to us Related Rights in relation to those Invoices.  We will
credit to your Current Account the Notified Value of any Invoices and their
Related Rights so pledged by you to us. Neither of us needs to take any other
further action to pledge to us such Related Rights, but you agree to deliver
such further documents and take such further actions as we may reasonably
require in furtherance of the Agreement in regard to the pledge of such Related
Rights. It is specified that in the case of Related Rights which are constituted
by negotiable instruments such as bills of exchange, drafts and notes, such
instruments will be endorsed to our favour upon the pledge of the corresponding
Invoices, in view of collection of such instruments on their maturity
dates.

     

    
      

      
        1 Monthly
/ quarterly / semi-annual / annual.

      

      
        2 Month /
quarter / half year / year.

      

    

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

     

    
      	
              3.2  

            	
              If
      an Invoice or its Related Rights is for any reason not formally pledged to
      us, you will hold such Invoice and its Related Rights for us as our agent
      and for our account and benefit.  If you receive any cash or
      other forms of payment for any Invoices,
then:

            

    

     

    
      	
            	
              3.2.1  

            	
              you
      will hold them for us as our agent and for our account and benefit;
      and

            

    

     

    
      	
            	
              3.2.2  

            	
              you
      will immediately deliver such payments to us (endorsed to us, if
      necessary) or pay them into the Collection Account or any such bank
      account as we tell you, but you must not pay them into any other bank
      account.

            

    

     

    
      	
              3.3  

            	
              For
      the avoidance of doubt, we shall have recourse against you in relation to
      any pledge of Invoices and Related Rights, in accordance with the terms of
      this Agreement.

            

    

     

    
      	
              3.4  

            	
              As
      security of your payment obligations under the Agreement, you hereby
      pledge in our favour whether or not in advance, in accordance with Article
      3:239 Dutch Civil Code, any credit rights arising from the Invoices, as
      well as the Invoices themselves and their Related Rights, for the amount
      resulting from the difference between the aggregate Nominal Amount of the
      Notified Invoices and the application of the Advance Rate to such
      aggregate Purchase Price. Upon payment by the Customers of any Invoice,
      the pledge shall be deemed to be automatically extended to any amounts
      collected. Enforcement of this pledge shall be effected by means of
      set-off, compensation or
counterclaim.

            

    

     

    
      	
              3.5  

            	
              Article
      3:239 paragraph 1 jo. article 3:98 jo. 3:97 and 3:94 paragraph 1 of the
      Dutch Civil Code apply, mutatis mutandis, to all Invoices and Related
      Rights that come into existence after the date of execution of the
      Agreement.

            

    

     

    
      	
              4.  

            	
              INFORMATION
      AND REPORTING REQUIREMENTS

            

    

     

    
      	
              4.1  

            	
              You
      will maintain a monthly open item ageing analysis, in such form as we may
      require, showing the position of each Customer’s account on the last day
      of each month, including details of any outstanding credit
      balances.

            

    

     

    
      	
              4.2  

            	
              You
      will supply to us wherever possible via the Website (or at our option make
      available for inspection by us) the following documents and/or information
      forthwith upon our request:

            

    

     

    
      	
            	
              4.2.1  

            	
              copies
      of Invoices and all debit and credit notes or other documents evidencing
      how an Invoice is reduced, paid or otherwise
  satisfied;

            

    

     

    
      	
            	
              4.2.2  

            	
              the
      full terms of any Contract of Sale;

            

    

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              4.2.3  

            	
              proof
      of the complete performance of each Contract of
  Sale;

            

    

     

    
      	
            	
              4.2.4  

            	
              such
      other information and evidence as we may require relating to Invoices
      Related Rights or Contracts of
Sale;

            

    

     

    
      	
            	
              4.2.5  

            	
              daily
      a report detailing monies collected by you as our agent;
    and

            

    

     

    
      	
            	
              4.2.6  

            	
              within
      15 days of the end of the month to which they relate or promptly upon our
      request copies of:

            

    

     

    
      	
            	
              4.2.6.1  

            	
              your
      open item ageing analysis;

            

    

     

    
      	
            	
              4.2.6.2  

            	
              your
      sales ledger control account with a reconciliation of it to our month end
      statement;

            

    

     

    
      	
            	
              4.2.6.3  

            	
              your
      reconciliation of cash receipts into the Collection
    Account;

            

    

     

    
      	
            	
              4.2.6.4  

            	
              your
      purchase ledger; and

            

    

     

    
      	
            	
              4.2.6.5  

            	
              within
      one month (or other such period as we may reasonably specify) of the end
      of the month to which they relate your monthly management
      accounts.

            

    

     

    
      	
              5.  

            	
              NON-NOTIFIABLE
      INVOICES

            

    

     

    
      	
              5.1  

            	
              Until
      we give you notice to the contrary, you must not Notify us of the
      following Invoices:

            

    

     

    
      	
            	
              5.1.1  

            	
              Invoices
      due from a director, officer, shareholder or employee of
      yours;

            

    

     

    
      	
            	
              5.1.2  

            	
              Invoices
      due from any other person with which you maintain, other than your
      habitual commercial or professional dealings, de facto or de jure economic or
      financial links whether direct or indirect, or with which you have
      shareholders, partners, directors, officers or managers in
      common;

            

    

     

    
      	
            	
              5.1.3  

            	
              Invoices
      due from the sale of any of your capital
assets;

            

    

     

    
      	
            	
              5.1.4  

            	
              Invoices
      which are not due in respect of your trade, occupation or
      profession;

            

    

     

    
      	
            	
              5.1.5  

            	
              Invoices
      where the Customer does not have an established place of
      business;

            

    

     

    
      	
            	
              5.1.6  

            	
              Invoices
      arising under a hire purchase, leasing or consumer credit sale
      agreement;

            

    

     

    
      	
            	
              5.1.7  

            	
              Invoices
      due in respect of Goods delivered on sale or return or on
      approval;

            

    

     

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              5.1.8  

            	
              Invoices
      arising under any Contract of Sale involving advance payments, conditional
      sales, consignment sales, sales for which a provisional or pro forma
      invoice has been issued, and Invoices for costs, interest for late payment
      or other penalties to be paid by the
Customer;

            

    

     

    
      	
            	
              5.1.9  

            	
              Invoices
      arising under any Contract of Sale with the State or any local government
      body or any entity subject to public law and benefiting from sovereign or
      other immunity;

            

    

     

    
      	
            	
              5.1.10  

            	
              Invoices
      arising under any Contract of Sale with a Customer who supplies goods or
      services to you and which may therefore be subject to rights of set-off,
      contra accounting, compensation, defence or
  cross-claim;

            

    

     

    
      	
            	
              5.1.11  

            	
              those
      additional Invoices referred to in the Agreement as Additional
      Non-Notifiable Invoices; and/or

            

    

     

    
      	
            	
              5.1.12  

            	
              Export
      Invoices representing more than 10% of all your Invoices outstanding from
      time to time. We may at any time require you to Notify us of
      Non-Notifiable Invoices.

            

    

     

    
      	
              5.2  

            	
              We
      will Disapprove Non-Notifiable
Invoices.

            

    

     

    
      	
              5.3  

            	
              We
      shall only make a Service Fee in respect of Non-Notifiable Invoices after
      we have given you notice under condition 5.2
  above.

            

    

     

    
      	
              6.  

            	
              OUR
      SERVICES

            

    

     

    
      	
              6.1  

            	
              In
      return for the Service Fee we will at your request or at any other time
      should we so decide provide the following services relative to Notified
      Invoices:

            

    

     

    
      	
            	
              6.1.1  

            	
              advice
      on improvements to your collection procedures and assessing your need for
      credit insurance;

            

    

     

    
      	
            	
              6.1.2  

            	
              general
      advice on standard sales contracts, terms of payment, the use of
      settlement discounts, evaluating the effect of changing invoicing methods
      and terms;

            

    

     

    
      	
            	
              6.1.3  

            	
              provision
      of statistical information based upon Invoices Notified to
    us;

            

    

     

    
      	
            	
              6.1.4  

            	
              advice
      on export debtor procedures and the specific requirements of major trading
      countries where we have arrangements with
  correspondents;

            

    

     

    
      	
            	
              6.1.5  

            	
              assistance
      in reviewing general terms and conditions of suppliers in relation to
      their reservations of title;

            

    

     

    
      	
            	
              6.1.6  

            	
              advice
      on your relationship with your
bankers;

            

    

     

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              6.1.7  

            	
              checking
      and advising you on the accuracy of the monthly reconciliation of your
      sales ledger to our month end
statement;

            

    

     

    
      	
            	
              6.1.8  

            	
              advice
      on your need for foreign exchange facilities or contingent liability
      cover;

            

    

     

    
      	
            	
              6.1.9  

            	
              daily
      information as to the status of your accounts with
  us;

            

    

     

    
      	
            	
              6.1.10  

            	
              reviewing
      your reconciliation and monitoring the operation of the Collection
      Account, including detailing dishonoured cheques or other defects in
      payment;

            

    

     

    
      	
            	
              6.1.11  

            	
              liaising
      with lawyers or other agents instructed to collect Invoices;
      or

            

    

     

    
      	
            	
              6.1.12  

            	
              inspecting
      your books and records relating to Invoices,
  including:

            

    

     

    
      	
            	
              6.1.13  

            	
              general
      systems;

            

    

     

    
      	
            	
              6.1.13.1  

            	
              maintenance
      of sales ledger;

            

    

     

    
      	
            	
              6.1.13.2  

            	
              dunning
      cycles;

            

    

     

    
      	
            	
              6.1.13.3  

            	
              overdue
      Invoices;

            

    

     

    
      	
            	
              6.1.13.4  

            	
              control
      systems.

            

    

     

    
      	
              6.2  

            	
              The
      provision of any of the services in this condition 6 shall be without
      responsibility on our part to the fullest extent permitted by
      law.

            

    

     

    
      	
              7.  

            	
              DISCOUNTING
      CLIENTS WHICH BECOME FACTORING
CLIENTS

            

    

     

    
      	
              7.1  

            	
              If
      following a Termination Event we exercise our rights to cancel your agency
      to collect Invoices and disclose this Facility to your Customers, we may
      also convert you to a Factoring Client in which
  case:

            

    

     

    
      	
            	
              7.1.1  

            	
              we
      will send you (at the same time as we serve notice on you) details of the
      revised Commercial Terms which will include an increased Service Fee to
      reflect the additional services provided by us to Factoring Clients and an
      Additional Service Fee which we will charge in respect of Invoices which
      remain outstanding more than [3 months] after the end of the month in
      which the Invoice is raised;

            

    

     

    
      	
            	
              7.1.2  

            	
              we
      will provide you with access rights to Cash Connect which is the Website
      interface for Factoring Clients;

            

    

     

    
      	
            	
              7.1.3  

            	
              Operating
      Conditions – Part III – Provisions relating to Invoice Discounting only,
      will cease to apply to you and Operating Conditions – Part IV – Provisions
      relating to Factoring Clients only will become applicable;
    and

            

    

     

    
      
        
        

      

      
        52

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              7.1.4  

            	
              all
      Invoices subsequently issued by you will be endorsed as assigned to
      us.

            

    

     

    
      	
              7.2  

            	
              You
      will automatically become a Factoring Client on service of the notice at
      condition 7.1.1 and will then be bound by the those Operating Conditions
      which apply to Factoring Clients in place of those which apply to Invoice
      Discounting Clients.

            

    

     

    
      	
              8.  

            	
              FEES

            

    

     

    
      	
              8.1  

            	
              If
      we have agreed a Minimum Fee:

            

    

     

    
      	
            	
              8.1.1  

            	
              we
      will debit to your Current Account on the last Working Day of each month
      any shortfall between the actual Service Fee paid by you in that month and
      the monthly amount of any Minimum Fee;
and

            

    

     

    
      	
            	
              8.1.2  

            	
              that
      calculation will commence in the calendar month after the month in which
      the Start Date occurs.

            

    

     

    
      	
              8.2  

            	
              We
      will debit any Monitoring Fee, Audit Fee, Arrangement Fee, Facility Fee,
      Documentation Fee or Unused Line Fee specified in the Commercial Terms to
      your Current Account at the intervals agreed with
  you.

            

    

     

    
      	
              8.3  

            	
              We
      will charge one twelfth of the Unused Line Fee monthly in arrears on the
      amount by which during the preceding calendar
  month:

            

    

     

    
      	
            	
              8.3.1  

            	
              your
      average Debit Balance; or

            

    

     

    
      	
            	
              8.3.2  

            	
              where
      we have agreed to make Facilities available to you and any other members
      of your group, your and their combined average Debit Balances;
      or

            

    

     

    
      	
            	
              8.3.3  

            	
              where
      we have agreed to make a stock finance facility available to you and/or
      any other member(s) of your group (and agreed to take it into account for
      these purposes) the combined average Debit Balance on any such stock
      finance loan account(s) and your and their combined Debit
      Balances;

            

    

     

    falls
short by more than the Agreed Percentage of the Review Limit (or any aggregate
Review Limit of the Facility/facility as indicated in condition 8.3, where one
has been agreed).

     

    
      	
              8.4  

            	
              If
      we provide services to a level of intensity which were not envisaged by us
      at the time of entry into the Agreement (which includes you communicating
      with us other than via the Website) then, in addition to the Service
      Charge, we may make a reasonable charge for all costs and expenses
      (including the cost of our administrative time and resulting loss of
      profit) for providing such
services.

            

    

     

    
      
        
        

      

      
        53

        
          

        

      

      
        
        

      

    

     

    
      	
              8.5  

            	
              If
      at any time you exceed your Availability, then, in addition to demanding
      immediate repayment of the excess, we may by notice to you increase our
      Fees and Charges to reflect our increased
risk.

            

    

     

    
      	
              9.  

            	
              EXPORT/CURRENCY
      INVOICES

            

    

     

    
      	
              9.1  

            	
              We
      may Approve, make Advances and pay the Nominal Amount in Euro for Export
      Invoices Notified to us representing up to 10% of all your Invoices
      outstanding from time to time.  If we do this we may adjust the
      Service Charge to compensate for the additional work involved and a
      reasonable profit margin thereon.

            

    

     

    
      	
              9.2  

            	
              Unless
      we have agreed to make Currency Facility available all Currency Invoices
      will be converted into Euro at the Bank’s spot rate of exchange on the day
      on which the Invoice is Notified to
us.

            

    

     

    
 

    
      
         

      

      
        54

        
          

        

      

      
         

      

    

    

    

     

    ANNEXURE
I

     

     

    List
of Customers

     

    

    
      
         

      

      
        55

        
          

        

      

      
         

      

    

     

    ANNEXURE
II

     

    Form
of Disclosed Pledge Agreement

     

    Confidential

     

    

     

    To:           LLOYDS TSB BANK
PLC

    Staten
Bolwerk 1, 2011 MK Haarlem, the Netherlands

    

    

    Date:                                           
2008

    

    Dear
Sirs,

    

    DEED
OF PLEDGE

    

    
      	
              1.

            	
              We
      refer to the receivables finance agreement dated on or about the date
      hereof (the “Agreement”) as the same
      may be amended, supplemented or restated from time to time, under which we
      have undertaken to perform certain obligations pursuant to borrowings
      made, which obligations shall, as a condition of the commitments being
      made available under the Agreement, be secured, inter alia, by means of a
      first priority right of pledge that shall be vested over the Invoices for
      your benefit.

            

    

    

    
      	
              2.

            	
              Terms
      defined in the Agreement shall have the same meaning in this letter,
      unless a contrary indication
appears.

            

    

    

    
      	
              3.

            	
              In
      furtherance of our obligations as set forth above, we are providing for
      your benefit, a disclosed first ranking right of pledge (openbaar pandrecht eerste in
      rang) over the Invoices listed in Schedule I, in your favour, in
      the manner set forth in Article 3:236 paragraph 1 jo. Article 3:98 and
      3:94 paragraph 1 of the Dutch Civil Code, for such period as determined in
      accordance with the Agreement, and as security for the full and proper
      fulfilment of our obligations.

            

    

    

    
      	
              4.

            	
              We
      acknowledge and agree, that if and to the extent that the Invoices are
      subject to any right of pledge or other encumbrance, which take priority
      over this deed of pledge, this right of pledge will have been created with
      the highest possible priority (rangorde) available at
      such time of creation.

            

    

    

    
      	
              5.

            	
              This
      letter shall form an integral and inherent part of the
      Agreement.

            

    

    

    
      	
              6.

            	
              This
      letter may be signed in any number of counterparts, all of which taken
      together shall constitute one and the same instrument.  Delivery
      of an executed signature page by facsimile shall be as effective as
      delivery of a manually executed
document.

            

    

    

    
      	
              7.

            	
              This
      letter shall be governed by, and construed in accordance with, the law of
      the Netherlands.  The parties hereto submit to the non-exclusive
      jurisdiction of the courts of the Netherlands.  The parties
      hereto waive any defence of inconvenient forum, which may be
      available.

            

    

     

    
      
        
        

      

      
        56

        
          

        

      

      
        
        

      

    

    
 

    Please
acknowledge your agreement to the terms of this letter by countersigning the
attached copy of this letter.

    

    Yours
faithfully

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

    for and
on behalf of

    [u]

    

    

    We agree
to the terms set out above.

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

    for and
on behalf of

    LLOYDS
TSB BANK PLC

     

    

     

    
      
         

      

      
        57

        
          

        

      

      
         

      

    

     

    Schedule
I

     

     

    Detail
of Invoices

     

    
      	
              Invoice
      No.

            	
              Amount
      (including interest)

            	
              Currency

            	
              Invoice
      Date

            	
              Maturity
      Date

            	
              Approved
      Debtor

            
	 
      	 
      	 
      	 
      	 
      	 
      

    

    

     

    

     

    
      
         

      

      
        58

        
          

        

      

      
         

      

    

    

     

    ANNEXURE
III

     

    Form
of Notification to Customers

     

    
    

    
      	

              To: 

            	BY REGISTERED
      MAIL
	
               
      

            	
              [Customer]

            

    

    
      	
               
      

            	
              Attn:
      [u]

            

    

    
      	
               
      

            	
              [address]

            

    

    

    
    

    
      	From:	[Client]
	
               
      

            	
              [address]

            

    

    

    
      	
              Cc:

            	
              [u]

            

    

     

     

     

    
      	
               
      

            	
              [city], [date]

            

    

     

    
      	
               
      

            	
              Dear
      Sir/Madam,

            

    

     

    
      	
              RE:

            	
              [Company name] -
      NOTIFICATION OF PLEDGE OF
RECEIVABLES

            

    

     

    We refer
to a disclosed deed of pledge of receivables, dated [u], by and between [Client] and Lloyds TSB Bank PLC (the “Deed of Pledge”). Capitalised
terms used in this Notification to Customers shall have the same meaning given
thereto in the Deed of Pledge.

     

    On behalf
of Lloyds TSB Bank PLC we hereby notify you that pursuant to the Deed of Pledge,
we have created a first priority right of pledge over any and all Invoices
payable by you to the Client, by way of security in favour of the Bank for its
obligations under the Receivables Finance Agreement.

     

    
      We
instruct you to pay all accounts receivable due to [u] to the Bank to the following
account: [u].

    

     

    
      Please
acknowledge receipt of this notice by signing and returning this letter
us.

    

     

    
      Yours
sincerely,

    

     

    
      [u]

    

     

    
      By:

    

     

    
      [authorised
signatory]

    

     

    
      
        
        

      

      
        59

        
          

        

      

      
        
        

      

    

     

    
      	
              For
      acknowledgement of receipt:

            

    

     

    
      [Customer]

    

     

    
      Name:

    

     

    
      Title:

    

     

    Date:

    

    
      
         

      

      
        60

        
          

        

      

      
         

      

    

     

    ANNEXURE
IV

     

    Form
of Undisclosed Pledge Agreement

     

    Confidential

     

    

    To:           LLOYDS TSB BANK
PLC

    Staten
Bolwerk 1, 2011 MK Haarlem, the Netherlands

    

    

    Date:                                           
2008

    

    Dear
Sirs,

    

    DEED
OF PLEDGE

    

    
      	
              1.

            	
              We
      refer to the receivables finance agreement dated on or about the date
      hereof (the “Agreement”) as the same may be amended, supplemented or
      restated from time to time, under which we have undertaken to perform
      certain obligations pursuant to borrowings made, which obligations shall,
      as a condition of the commitments being made available under the
      Agreement, be secured, inter alia, by means of a first priority right of
      pledge that shall be vested over the Invoices for your
      benefit.

            

    

    

    
      	
              2.

            	
              Terms
      defined in the Agreement shall have the same meaning in this letter,
      unless a contrary indication
appears.

            

    

    

    
      	
              3.

            	
              In
      furtherance of our obligations as set forth above, we are providing for
      your benefit, an undisclosed first ranking right of pledge (stil pandrecht eerste in
      rang) over the Invoices listed in Schedule I, in your favour, in
      the manner set forth in Article 3:239 paragraph 1 jo. Article 3:98 and
      3:94 paragraph 1 of the Dutch Civil Code, for such period as determined in
      accordance with the Agreement, and as security for the full and proper
      fulfilment of our obligations.

            

    

    

    
      	
              4.

            	
              We
      acknowledge and agree, that if and to the extent that the Invoices are
      subject to any right of pledge or other encumbrance, which take priority
      over this deed of pledge, this right of pledge will have been created with
      the highest possible priority (rangorde) available at
      such time of creation.

            

    

    

    
      	
              5.

            	
              As
      of the date hereof, we, or our representative, shall submit this letter
      for registration with the competent Dutch tax authorities (Inspectie Registratie en
      Successie) with a copy to
you.

            

    

    

    
      	
              6.

            	
              This
      letter shall form an integral and inherent part of the
      Agreement.

            

    

    

    
      	
              7.

            	
              This
      letter may be signed in any number of counterparts, all of which taken
      together shall constitute one and the same instrument.  Delivery
      of an executed signature page by facsimile shall be as effective as
      delivery of a manually executed
document.

            

    

     

    
      
        
        

      

      
        61

        
          

        

      

      
        
        

      

    

    
 

    
      	
              8.

            	
              This
      letter shall be governed by, and construed in accordance with, the law of
      the Netherlands.  The parties hereto submit to the non-exclusive
      jurisdiction of the courts of the Netherlands.  The parties
      hereto waive any defence of inconvenient forum, which may be
      available.

            

    

     

    Please
acknowledge your agreement to the terms of this letter by countersigning the
attached copy of this letter.

    

    Yours
faithfully

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

    for and
on behalf of

    [u]

    

    

    We agree
to the terms set out above.

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

    for and
on behalf of

    LLOYDS
TSB BANK PLC

    
      
         

      

      
        62

        
          

        

      

      
         

      

    

    

     

    Schedule
I

     

    Detail
of Invoices

     

    
      	
              Invoice
      No.

            	
              Amount
      (including interest)

            	
              Currency

            	
              Invoice
      Date

            	
              Maturity
      Date

            	
              Approved
      Debtor

            
	 
      	 
      	 
      	 
      	 
      	 
      

    

    

     

    

     

     

    

     

     

    

     

     

    

     

     

    

     

    
      
         

      

      
        63

        
          

        

      

      
         

      

    

    

     

    OPERATING
CONDITIONS - PART IV

     

    PROVISIONS
RELATING TO FACTORING CLIENTS ONLY

     

     

     

    
      	
              1  

            	
              OUR
      SERVICES

            

    

     

    
      	
              1.1  

            	
              We
      will:

            

    

     

    
      	
            	
              1.1.1  

            	
              run
      your sales ledger; and

            

    

     

    
      	
            	
              1.1.2  

            	
              collect
      payment of your invoices from your Customers by sending them monthly
      statements and reminder letters where necessary in a format agreed with
      them.

            

    

     

    
      	
              1.2  

            	
              We
      may:

            

    

     

    
      	
            	
              1.2.1  

            	
              give
      you information about Customers’ and possible new Customers’ credit status
      within a reasonable period of you asking us.  We will not be
      liable to pay any compensation or damages if the information we give is
      not accurate;

            

    

     

    
      	
            	
              1.2.2  

            	
              approve,
      make Advances and pay the Nominal Amount in Euro in respect of Export
      and/or Currency Invoices; or

            

    

     

    
      	
            	
              1.2.3  

            	
              provide
      certain additional services.

            

    

     

    
      	
              2  

            	
              ASSIGNMENT
      OF INVOICES

            

    

     

    
      	
              2.1  

            	
              You
      hereby assign (or if such assignment is ineffective for any reason you
      will undertake to pledge) to us on the terms of the
    Agreement:

            

    

     

    
      	
            	
              2.1.1  

            	
              all
      your Invoices which are outstanding on the Start Date;
  and

            

    

     

    
      	
            	
              2.1.2  

            	
              all
      your Invoices, which arise after the Start Date until the Agreement
      terminates,

            

    

     

    from the
list of Customers set out in Annex I to these Operating Conditions, as agreed
and amended by the parties from time to time.

     

    In order
to perfect the assignment of the Invoices as referred to in 2.1.1 you will
notify in writing, in accordance with the notification form set out in Annex III
to these Operating Conditions, all Customers set out in Annex I to these
Operating Conditions of the assignment of their Invoices to us and, insofar as
necessary, you hereby provide us the authority to effect such notification
ourselves, in the event you fail to deliver such notifications.

     

    
      
        
        

      

      
        64

        
          

        

      

      
        
        

      

    

    
       

      In order
to perfect the assignment of the Invoices as referred to in 2.1.2 you will
execute a deed of assignment substantially in accordance with the form of
agreement as set out in Annex II to these Operating Conditions, and notify in
writing all Customers as set out in Annex I to these Operating Conditions of the
assignment of their Invoices to us in the form set in Annex III and, insofar as
necessary, you hereby provide us the authority to effect such notification
ourselves, in the event you fail to deliver such
notifications.

    

     

    Neither
of us needs to take any further action to transfer to us ownership of your
current and future Invoices assigned by this clause.

     

    At the
same time as you assign your Invoices to us, you also assign (and will offer to
assign) to us Related Rights in relation to those Invoices.  We will
credit to your Current Account the Notified Value of any Invoices and their
Related Rights so assigned by you to us. Neither of us needs to take any other
further action to transfer to us such Related Rights, but you agree to deliver
such further documents and take such further actions as we may reasonably
require in furtherance of the Agreement in regard to the transfer of such
Related Rights. It is specified that in the case of Related Rights which are
constituted by negotiable instruments such as bills of exchange, drafts and
notes, such instruments will be endorsed to our favour upon the assignment of
the corresponding Invoices, in view of collection of such instruments on their
maturity dates.

     

     

    
      	
              2.2  

            	
              If
      an Invoice or its Related Rights is for any reason not formally assigned
      to us, you will hold such Invoice and its Related Rights for us as our
      agent and for our account and benefit.  If you receive any cash
      or other forms of payment for any Invoices,
  then:

            

    

     

    
      	
            	
              2.2.1  

            	
              you
      will hold them for us as our agent and for our account and benefit;
      and

            

    

     

    
      	
            	
              2.2.2  

            	
              you
      will immediately deliver such payments to us (endorsed to us, if
      necessary) or pay them into the Collection Account or any such bank
      account as we tell you, but you must not pay them into any other bank
      account.

            

    

     

    
      	
              2.3  

            	
              For
      the avoidance of doubt, we shall have recourse against you in relation to
      any assignment of Invoices and Related Rights in accordance with the terms
      of this Agreement.

            

    

     

    
      	
              2.4  

            	
              As
      security of your payment obligations under the Agreement, you hereby
      pledge in our favour, in accordance with Article 3:236 Dutch Civil Code,
      any credit rights arising from the Invoices, as well as the Invoices
      themselves and their Related Rights, for the amount resulting from the
      difference between the aggregate Nominal Amount of the Notified Invoices
      and the application of the Advance Rate to such aggregate Purchase Price.
      Upon payment by the Customers of any Invoice, the pledge shall be deemed
      to be automatically extended to any amounts collected. Enforcement of this
      pledge shall be effected by means of set-off, compensation or
      counterclaim. Article 3:236 paragraph 1 jo. Article 3:98 jo. 3:97 and 3:94
      paragraph 1 of the Dutch Civil Code apply, mutatis mutandis, to all
      Invoices and related Rights that come into existence after the date of
      execution of the Agreement.

            

    

     

    
      
        
        

      

      
        65

        
          

        

      

      
        
        

      

    

     

    
      	
              2.5  

            	
              Notwithstanding
      (but without prejudice to) the foregoing, in order to render the
      assignment and pledge enforceable against third parties, you will deliver
      to us on or prior to each date of Notification a valid and duly completed
      and signed transfer and pledge form covering the Notified Invoices and
      their Related Rights, and you will deliver such further documents and take
      such further actions as we may reasonably require in furtherance of the
      Agreement.  A sample transfer and pledge form for this purpose
      is attached as Annex II. You undertake to on a [monthly3] basis submit the signed transfer and
      pledge form, no later than two Business Days after the preceding
      [month4], for registration purposes and any
      ancillary or supporting document with the competent Dutch tax authorities
      (Inspectie der
      Registratie en Successie).

            

    

     

    
      	
              2.6  

            	
              In
      relation to a Factoring Facility provided on a recourse basis, if and as
      soon as the Customer fails to pay any amount when due (as shown on the
      relevant Invoice) under the Contract of Sale in respect of a Invoice
      accepted by the Bank, the Bank shall have the sole right to reassign all
      or any Invoices and their Related Rights to you in accordance with
      condition 12 of the Operating Conditions – Part II – Provisions relating
      to all Clients.

            

    

     

    
      	
              3  

            	
              YOUR
      RESPONSIBILITIES

            

    

     

    
      	
              3.1  

            	
              You
      must:

            

    

     

    
      	
            	
              3.1.1  

            	
              raise
      Invoices in the normal course but including wording which we will provide
      to you indicating that each one has been assigned to us and ensure that
      all Invoices are promptly and accurately entered in your sales
      ledger;

            

    

     

    
      	
            	
              3.1.2  

            	
              send
      notices of assignment in a form satisfactory to us of your Invoices to you
      Customers;

            

    

     

    
      	
            	
              3.1.3  

            	
              not
      attempt to collect payment for any Invoices for your own
      account;

            

    

     

    
      	
            	
              3.1.4  

            	
              not
      agree to settle any Invoices;

            

    

     

    
      	
            	
              3.1.5  

            	
              only
      issue credit notes in accordance with the Operating Conditions;
      and

            

    

     

    
      	
            	
              3.1.6  

            	
              within
      one month (or other such period as we may reasonably specify) of the end
      of the quarter to which they relate send your quarterly management
      accounts to us.

            

    

     

    
      	
              4  

            	
              OUR
      FEES AND CHARGES FOR FACTORING
CLIENTS

            

    

     

    
      	
              4.1  

            	
              For
      the purpose of calculating any Minimum Fee expressed as an annual
      fee:

            

    

     

    
       

      
        

        
          3 Monthly / quarterly
/ semi-annual / annual.

        

        
          4 Month / quarter /
half year / year.

        

      

       

    

     

    
      
        
        

      

      
        66

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              4.1.1  

            	
              “annual”
      means the period from 1 July in any year to 30 June in the next
      year.  The first annual charge will reflect the period from the
      Start Date to the next 30th
      June; and

            

    

     

    
      	
            	
              4.1.2  

            	
              we
      will divide the fee by 365 and multiply that figure by the number of
      relevant days elapsed to the date of calculation of the
    fee.

            

    

     

    
      	
              4.2  

            	
              We
      will apply any Additional Service Fee percentage specified in the
      Commercial Terms to the Notified Value of all Invoices which remain
      outstanding at the end of the Funding Period.  We will charge
      this fee in arrears on the last Working Day of each month in respect of
      that month.

            

    

     

    
      	
              4.3  

            	
              We
      may vary the Service Fee or any Minimum Fee on giving you [2] months
      written notice which expires on or after the end of any Minimum
      Term.

            

    

     

     

    
      	
              4.4  

            	
              We
      may vary the Discount Charge on giving you [3] months written notice which
      expires at any time after the end of the Minimum
  Term.

            

    

     

     

    
      	
              5  

            	
              CURRENCY
      INVOICES

            

    

     

     

    
      	
              5.1  

            	
              If
      an Invoice is a Currency Invoice, we will calculate the Nominal Amount in
      Euro at the exchange rate agreed between us.  If we do not agree
      on an exchange rate, we will use the exchange rate on the date we make the
      Advance.

            

    

     

     

    
      	
              5.2  

            	
              We
      may at your request set up separate Current Accounts for each currency in
      which we agree to make Advances.

            

    

     

     

    
      	
              5.3  

            	
              If
      we make Advances in a currency other than Euro we may calculate the
      Discount Charge on the Debit Balance by adding the margin to the Bank’s
      short term offer rate for the currency in question as determined by us
      either daily or weekly.

            

    

     

    
 

    
      
         

      

      
        67

        
          

        

      

      
         

      

    

    

    

     

    ANNEXURE
I

     

    List
of Customers

     

    

    
      
         

      

      
        68

        
          

        

      

      
         

      

    

    

    

     

    ANNEXURE
II

     

    Assignment
Agreement

     

    Confidential

     

    

     

    To:           LLOYDS TSB BANK
PLC

    Staten
Bolwerk 1, 2011 MK Haarlem, the Netherlands

     

     

    Date:                                           
2008

     

    Dear
Sirs,

    

    DEED
OF ASSIGNMENT

    

    
      	
              1.

            	
              We
      refer to the receivables finance agreement dated on or about the date
      hereof (the “Agreement”) as the same may be amended, supplemented or
      restated from time to time, under which we have undertaken to assume
      responsibility for the collection of the Invoices which results into an
      assignment of the Invoices as listed herein in Schedule
  I.

            

    

    

    
      	
              2.

            	
              Terms
      defined in the Agreement shall have the same meaning in this letter,
      unless a contrary indication
appears.

            

    

    

    
      	
              3.

            	
              In
      furtherance of our obligations as set forth above, title to the Invoices
      is transferred to you by (i) execution and delivery of this deed of
      assignment and (ii) giving notice to the Customers, in accordance with
      Article 3:94(1) of the Dutch Civil
Code.

            

    

    

    
      	
              4.

            	
              We
      acknowledge and agree, that if and to the extent that the Invoices are
      subject to any assignment or other encumbrance, which take priority over
      this deed of assignment, this assignment will have been created with the
      highest possible priority (rangorde) available at
      such time of creation.

            

    

    

    
      	
              5.

            	
              This
      letter shall form an integral and inherent part of the
      Agreement.

            

    

    

    
      	
              6.

            	
              This
      letter may be signed in any number of counterparts, all of which taken
      together shall constitute one and the same instrument.  Delivery
      of an executed signature page by facsimile shall be as effective as
      delivery of a manually executed
document.

            

    

    

    
      	
              7.

            	
              This
      letter shall be governed by, and construed in accordance with, the law of
      the Netherlands.  The parties hereto submit to the non-exclusive
      jurisdiction of the courts of the Netherlands.  The parties
      hereto waive any defence of inconvenient forum, which may be
      available.

            

    

    

    Please
acknowledge your agreement to the terms of this letter by countersigning the
attached copy of this letter.

     

    
      
        
        

      

      
        69

        
          

        

      

      
        
        

      

    

    
 

    Yours
faithfully

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

    for and
on behalf of

    [u]

    

    

    We agree
to the terms set out above.

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

    for and
on behalf of

    LLOYDS
TSB BANK PLC

     

    

     

    
      
         

      

      
        70

        
          

        

      

      
         

      

    

     

    Schedule
I

     

    Detail
of Invoices

     

    
      	
              Invoice
      No.

            	
              Amount
      (including interest)

            	
              Currency

            	
              Invoice
      Date

            	
              Maturity
      Date

            	
              Approved
      Debtor

            
	
               
      

               

            	 
      	 
      	 
      	 
      	 
      

    

    

     

    

     

     

    

     

    
      
         

      

      
        71

        
          

        

      

      
         

      

    

    

     

    ANNEXURE
III

     

    Form
of Notification to Customers

     

    
    

    
      	To:	BY REGISTERED
      MAIL
	
               
      

            	
              [Customer]

            

    

    
      	
               
      

            	
              Attn:
      [u]

            

    

    
      	
               
      

            	
              [address]

            

    

    

    
    

    
      	From:	[Client]
	
               
      

            	
              [address]

            

    

    

    
      	
              Cc:

            	
              [u]

            

    

     

     

    
      	
               
      

            	
              [city], [date]

            

    

     

    
      	
               
      

            	
              Dear
      Sir/Madam,

            

    

     

    
      	
              RE:

            	
              [Company name] -
      NOTIFICATION OF ASSIGNMENT

            

    

     

    We refer
to the assignment of receivables, dated [u], by and between [Company] and Lloyds TSB Bank PLC (the “Assignment Agreement”).
Capitalised terms used in this Notification shall have the same meaning given
thereto in the Assignment Agreement.

     

    On behalf
of the Company we hereby notify you that pursuant to the Assignment Agreement,
payments in respect of this claim must be made, from the date of this notice, to
the Bank at [fill in details
Collection Account and specifics of payment].

     

    
      Please
acknowledge receipt of this notice by signing and returning this letter
us.

    

     

    
      Yours
sincerely,

    

     

    
      [u]

    

     

    By:

     

    [authorised
signatory]

     

    
      
        
        

      

      
        72

        
          

        

      

      
        
        

      

    

    
       

      For
acknowledgement of receipt:

    

     

    [Customer]

     

    Name:

     

    Title:

     

    Date:

    

    

    
      
         

      

      
        73

        
          

        

      

      
         

      

    

    

     

    OPERATING
CONDITIONS - PART V

     

     

    PROVISIONS
RELATING TO EXPORT AND CURRENCY FACILITIES

     

     

    
      	
              1  

            	
              EXPORT
      AND CURRENCY FACILITIES

            

    

     

    
      	
              1.1  

            	
              Export
      Facilities will only be made available in respect of Invoices owing by
      Customers from Approved Countries and denominated in Approved
      Currencies.

            

    

     

    
      	
              1.2  

            	
              We
      may maintain separate Current Accounts for each currency and each Approved
      Country in which we agree to make
Advances.

            

    

     

    
      	
              1.3  

            	
              Currency
      Facilities will only be provided in an Approved Currency other than
      Euro.

            

    

     

    
      	
              1.4  

            	
              Unless
      we agree otherwise, you will arrange for Currency Invoices in respect of
      which we agree to provide an Export Facility to be credit insured and for
      our interest to be noted on the insurance
  policy.

            

    

     

    
      	
              2  

            	
              OUR
      FEES AND CHARGES

            

    

     

    
      	
              2.1  

            	
              We
      will calculate and charge the Service Fee payable on Currency Invoices in
      the Approved Currency in which such Invoices are
      denominated.  On each anniversary of the Start Date we will
      convert those Service Fees paid by you on such Currency Invoices into Euro
      at the Bank’s spot rate of exchange on the date of such conversion and add
      them to the other service fees paid by you during that year to determine
      if you have paid any Minimum Fee we have
agreed.

            

    

     

    
      
         

      

      
        74

        
          

        

      

      
         

      

    

    

     

    OPERATING
CONDITIONS - PART VI

     

    PROVISIONS
RELATING TO RECEIVABLES FACILITIES

     

     

     

    
      	
              1.  

            	
              PURPOSE
      OF THE FACILITY

            

    

     

    
      	
              1.1  

            	
              You
      shall apply all amounts borrowed in accordance with the Asset Based
      Finance Agreement.

            

    

     

    
      	
              2.  

            	
              INTEREST

            

    

     

    
      	
                      
      2.1

            	
              The
      rate of interest on the Facility is the percentage rate per annum which is
      the aggregate of the applicable:

            

    

     

    
      	
            	
              3.6.1  

            	
              Margin;
      and

            

    

     

    
      	
            	
              2.1.1  

            	
              EURIBOR.

            

    

     

    We shall
notify you promptly upon the determination of the rate of interest under the
Agreement.

     

    
      	
              2.2  

            	
              You
      shall pay accrued interest on the Facility in arrears on each Interest
      Payment Date, on which date we shall charge your Current Account with the
      amount due.

            

    

     

    
      	
              2.3  

            	
              If
      you fail to pay any amount payable under the Agreement on its due date,
      interest shall accrue on the overdue amount from the due date up to the
      date of actual payment (both before and after judgement) at the rate
      determined as the Default Interest.

            

    

     

    Any
interest, commission or fee accruing under the Agreement will accrue from day to
day and is calculated on the basis of the actual number of days elapsed and a
year of 360 days.

     

    
      	
              3.  

            	
              REPAYMENT

            

    

     

    
      	
                      
      3.1

            	
              You
      shall repay all amounts outstanding under the Facility on the Final
      Repayment Date.

            

    

     

    
      	
              4.  

            	
              PREPAYMENT

            

    

     

    
      	
              4.1

            	
              Any prepayment shall be made in
      accordance with the provisions of this Agreement and you may reborrow
      amounts subject to the provisions of this
  Agreement.

            

    

     

    
      	
              5.  

            	
              SECURITY

            

    

     

    As
security for your Secured Obligations you shall grant in our favour, whether or
not in advance, an undisclosed first priority right of pledge (stil pandrecht eerste in
rang) on all your Invoices in the manner set forth in Article 3:239
paragraph 1 of the Dutch Civil Code, and in accordance with the form requested
by us.

     

    
      
        
        

      

      
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                5.1

              	
                Until
      notice from us to the contrary, you will direct your Customers to settle
      their Invoices by making payment directly into a Collection Account. If
      you receive payment you will immediately upon receipt pay it into the
      Current Account

              

      

       

    

    
      	
              5.2

            	
              As
      security for your Secured Obligations you shall grant in our favour,
      whether or not in advance, a disclosed first priority right of pledge
      (openbaar pandrecht
      eerste in rang) over the balances in the Collection Accounts, in
      the manner set forth in Article 3:236 paragraph 2 jo. Article 3:98 jo 3:94
      paragraph 1 of the Dutch Civil Code, and in accordance with the form
      requested by us.

            

    

     

    
      	
              5.3

            	
              As
      security for your Secured Obligations you shall grant in our favour,
      whether or not in advance, a non-possessory first priority right of pledge
      (vuistloos pandrecht
      eerste in rang) over all of your stock and inventory, in the manner
      set forth in Article 3:237 of the Dutch Civil Code, and in accordance with
      the form requested by us.

            

    

     

    
      	
              5.4

            	
              Where
      we have agreed that the Agreement is confidential, then, for the moment,
      neither you nor we will notify your Customers that you have pledged your
      Invoices to us.  However, we may at any time vary or terminate
      your agency to collect either some or all of your Invoices.  We
      may:

            

    

     

    
      	
               
      

            	
              5.4.1

            	
              give
      (or require you to give) notice to some or all of your Customers of the
      pledge of their Invoices and the Related Rights to
  us;

            

    

     

    
      	
               
      

            	
              5.4.2

            	
              either
      simultaneously with giving such notice or at a later date, instruct your
      Customers to pay us directly;

            

    

     

    5.4.3           require
you to send us a copy of your sales and purchase ledger and such other records
as we may require;

     

    
      	
               
      

            	
              5.4.4

            	
              require
      you to forward all Invoices to us for issuing by us and we will, at your
      expense, administer Customers’
accounts.

            

    

     

    
      	
              5.5

            	
              You
      will confirm to your Customers the effect of any notice served on them and
      you will cease collect Invoices.  The provisions of condition 5
      of the Operating Conditions – Part II – Provisions relating to all Clients
      shall then apply.

            

    

     

    
      	
              5.6

            	
              You
      will pay those costs specified in the Commercial Terms for maintaining the
      Collection Account.

            

    

     

    
      	
              5.7

            	
              You
      hereby authorise us or any person nominated by us to contact your
      Customers to verify the amount of each Invoice due from them, the due date
      for payment and in the case of overdue Invoices, the date when payment can
      be expected.  You will assist us or our nominee in any way we
      require and you authorise us and them to disclose their identity if
      required to do so by law or if requested by a
  Customer.

            

    

     

    
      
        
        

      

      
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              6  

            	
              INFORMATION
      AND REPORTING REQUIREMENTS

            

    

     

    
      	
              6.1

            	
              You
      will maintain a monthly open item ageing analysis, in such form as we may
      require, showing the position of each Customer’s account on the last day
      of each month, including details of any outstanding credit
      balances.

            

    

     

    
      	
              6.2

            	
              You
      will supply to us wherever possible via the Website (or at our option make
      available for inspection by us) the following documents and/or information
      forthwith upon our request:

            

    

     

    
      	
               
      

            	
              6.2.1

            	
              copies
      of Invoices and all debit and credit notes or other documents evidencing
      how an Invoice is reduced, paid or otherwise
  satisfied;

            

    

     

    6.2.2         the
full terms of any Contract of Sale;

     

    6.2.3         proof
of the complete performance of each Contract of Sale;

     

    
      	
               
      

            	
              6.2.4

            	
              such
      other information and evidence as we may require relating to Invoices
      Related Rights or Contracts of
Sale;

            

    

     

    6.2.5         daily
a report detailing monies collected by you as our agent; and

     

    
      	
               
      

            	
              6.2.6

            	
              within
      15 days of the end of the month to which they relate or promptly upon our
      request copies of:

            

    

     

    6.2.7         your
open item ageing analysis;

     

    
      	
               
      

            	
              6.2.8

            	
              your
      sales ledger control account with a reconciliation of it to our month end
      statement;

            

    

     

    6.2.9         your
reconciliation of cash receipts into the Collection Account;

     

    6.2.10       your
purchase ledger; and

     

    
       

      
        	
                 
      

              	
                6.2.11

              	
                      
                  within
      one month (or other such period as we may reasonably specify) of the end
      of the month to which they relate your monthly management
      accounts.

                

              

      

    

     

    7           NON-NOTIFIABLE
INVOICES

     

    
      	
              7.1

            	
              Until
      we give you notice to the contrary, you must not Notify us of the
      following Invoices:

            

    

     

    7.1.1        Invoices
due from a director, officer, shareholder or employee of yours;

     

    
      	
               
      

            	
              7.1.2

            	
              Invoices
      due from any other person with which you maintain, other than your
      habitual commercial or professional dealings, de facto or de jure economic or
      financial links whether direct or indirect, or with which you have
      shareholders, partners, directors, officers or managers in
      common;

            

    

     

    
      
        
        

      

      
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    7.1.3        Invoices
due from the sale of any of your capital assets;\

     

    7.1.4        Invoices
which are not due in respect of your trade, occupation or
profession;

     

    7.1.5        Invoices
where the Customer does not have an established place of business;

     

    
      	
               
      

            	
              7.1.6

            	
              Invoices
      arising under a hire purchase, leasing or consumer credit sale
      agreement;

            

    

     

    7.1.7        Invoices
due in respect of Goods delivered on sale or return or on approval;

     

    
      	
               
      

            	
              7.1.8

            	
              Invoices
      arising under any Contract of Sale involving advance payments, conditional
      sales, consignment sales, sales for which a provisional or pro forma
      invoice has been issued, and Invoices for costs, interest for late payment
      or other penalties to be paid by the
Customer;

            

    

     

    
      	
               
      

            	
              7.1.9

            	
              Invoices
      arising under any Contract of Sale with the State or any local government
      body or any entity subject to public law and benefiting from sovereign or
      other immunity;

            

    

     

    
      	
                            
      7.1.10

            	
              Invoices
      arising under any Contract of Sale with a Customer who supplies goods or
      services to you and which may therefore be subject to rights of set-off,
      contra accounting, compensation, defence or
  cross-claim;

            

    

     

    
      	
                            
      7.1.11

            	
              those
      additional Invoices referred to in the Agreement as Additional
      Non-Notifiable Invoices; and/or

            

    

     

    
      	
                            
      7.1.12

            	
              Export
      Invoices representing more than 10% of all your Invoices outstanding from
      time to time. We may at any time require you to Notify us of
      Non-Notifiable Invoices.

            

    

     

    7.1.13      We
will Disapprove Non-Notifiable Invoices.

     

    
      	
                             
      7.1.14

            	
              We
      shall only make a Service Fee in respect of Non-Notifiable Invoices after
      we have given you notice under condition 5.2
  above.

            

    

     

    8           OUR
SERVICES

     

    
      	
              8.1

            	
              In
      return for the Service Charge we will at your request or at any other time
      should we so decide provide the following services relative to Notified
      Invoices:

            

    

     

    
      	
               
      

            	
              8.1.1

            	
              advice
      on improvements to your collection procedures and assessing your need for
      credit insurance;

            

    

     

    
      	
               
      

            	
              8.1.2

            	
              general
      advice on standard sales contracts, terms of payment, the use of
      settlement discounts, evaluating the effect of changing invoicing methods
      and terms;

            

    

     

    8.1.3           provision
of statistical information based upon Invoices Notified to us;

     

    
      
        
        

      

      
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              8.1.4

            	
              advice
      on export debtor procedures and the specific requirements of major trading
      countries where we have arrangements with
  correspondents;

            

    

     

    
      	
               
      

            	
              8.1.5

            	
              assistance
      in reviewing general terms and conditions of suppliers in relation to
      their reservations of title;

            

    

     

    8.1.6        advice
on your relationship with your bankers;

     

    
      	
               
      

            	
              8.1.7

            	
              checking
      and advising you on the accuracy of the monthly reconciliation of your
      sales ledger to our month end
statement;

            

    

     

    8.1.8        advice
on your need for foreign exchange facilities or contingent liability
cover;

     

    8.1.9        daily
information as to the status of your accounts with us;

     

    
      	
                             
      8.1.10

            	
              reviewing
      your reconciliation and monitoring the operation of the Collection
      Account, including detailing dishonoured cheques or other defects in
      payment;

            

    

     

    
      	
            	
               
      

            	
              8.1.11     
      liaising with lawyers or other agents instructed to collect Invoices;
      or

            

    

     

    8.1.12       inspecting
your books and records relating to Invoices, including:

     

    8.1.13       general
systems;

     

    8.1.14       maintenance
of sales ledger;

     

    8.1.15       dunning
cycles;

     

    8.1.16       overdue
Invoices;

     

    8.1.17       control
systems.

     

    
      	
              8.2

            	
              The
      provision of any of the services in this condition 9 shall be without
      responsibility on our part to the fullest extent permitted by
      law.

            

    

     

     

     

    
 

    

    
      
         

      

      
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    ANNEXURE
I

     

    List
of Customers

     

    

     

    

     

    

    80

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