Document:

exv4w20

 

EXHIBIT
4.20

COFACE RECEIVABLES

FINANCE LIMITED

Receivables Finance

Standard Terms & Conditions

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	1.
	 	INTRODUCTION	 	 	1	 
	 
	 	 	 	 	 	 
	2.
	 	START AND LENGTH OF RELATIONSHIP BETWEEN YOU AND US	 	 	1	 
	 
	 	 	 	 	 	 
	3.
	 	OUR OWNERSHIP OF DEBTS, OFFERS AND NOTIFICATIONS	 	 	2	 
	 
	 	 	 	 	 	 
	4.
	 	PURCHASE PRICE OF DEBTS	 	 	3	 
	 
	 	 	 	 	 	 
	5.
	 	LIMITS AND PERCENTAGES	 	 	3	 
	 
	 	 	 	 	 	 
	6.
	 	DECISIONS	 	 	3	 
	 
	 	 	 	 	 	 
	7.
	 	PROTECTION OF DEBTS	 	 	4	 
	 
	 	 	 	 	 	 
	8.
	 	INSOLVENCY OF CUSTOMERS OR UNCOLLECTABLE DEBTS	 	 	5	 
	 
	 	 	 	 	 	 
	9.
	 	DISPUTES	 	 	6	 
	 
	 	 	 	 	 	 
	10.
	 	OUR ACCOUNTS	 	 	6	 
	 
	 	 	 	 	 	 
	11.
	 	CHARGES FEES AND INDEMNITIES	 	 	8	 
	 
	 	 	 	 	 	 
	12.
	 	REPURCHASES AND REPAYMENTS	 	 	10	 
	 
	 	 	 	 	 	 
	13.
	 	NOTICES TO CUSTOMERS	 	 	11	 
	 
	 	 	 	 	 	 
	14.
	 	CUSTOMERS’ ACCOUNTS AND DEBT COLLECTIONS	 	 	11	 
	 
	 	 	 	 	 	 
	15.
	 	TRUSTS AND OTHER RIGHTS	 	 	13	 
	 
	 	 	 	 	 	 
	16.
	 	YOUR UNDERTAKINGS TO US	 	 	13	 
	 
	 	 	 	 	 	 
	17.
	 	YOUR WARRANTIES TO US	 	 	16	 
	 
	 	 	 	 	 	 
	18.
	 	INTERNET SERVICE	 	 	18	 
	 
	 	 	 	 	 	 
	19.
	 	INFORMATION FOR US	 	 	19	 
	 
	 	 	 	 	 	 
	20.
	 	TERMINATION EVENTS	 	 	20	 
	 
	 	 	 	 	 	 
	21.
	 	POWER TO ACT IN YOUR NAME	 	 	22	 
	 
	 	 	 	 	 	 
	22.
	 	CONTACTING CUSTOMERS AND OTHER PARTIES	 	 	23	 
	 
	 	 	 	 	 	 
	23.
	 	ASSIGNMENT, DELEGATION AND FORCE MAJEURE	 	 	23	 
	 
	 	 	 	 	 	 
	24.
	 	UNLIMITED PARTNERSHIPS AND SOLE TRADER CLIENTS	 	 	24	 
	 
	 	 	 	 	 	 
	25.
	 	SERVICE OF NOTICES AND PROCESS	 	 	26	 
	 
	 	 	 	 	 	 
	26.
	 	INTERPRETATION OF THIS AGREEMENT	 	 	26	 
	 
	 	 	 	 	 	 
	27.
	 	GENERAL	 	 	27	 
	 
	 	 	 	 	 	 
	28.
	 	FOREIGN CURRENCIES	 	 	27	 
	 
	 	 	 	 	 	 
	29.
	 	DATA PROTECTION ACT 1998	 	 	28	 
	 
	 	 	 	 	 	 
	30.
	 	LAW AND JURISDICTION	 	 	30	 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	31.
	 	REGULATORY STATUS	 	 	30	 
	 
	 	 	 	 	 	 
	32.
	 	ANNEXE OF DEFINITIONS	 	 	30	 

-ii-

 

	1.	 	INTRODUCTION
	 
	1.1	 	We provide a number of different facilities for financing the sales ledgers of our clients.
The Receivables Finance Agreement shows;

	 	1.1.1	 	whether you have our factoring or invoice discounting facility and whether
such facility is confidential or disclosed. Please note that;

	 	•	 	with our disclosed factoring facility we will operate your sales ledger and
directly collect the Debts from your Customers;
	 
	 	•	 	with our confidential factoring facility we will operate your sales ledger
and we will collect the Debts from your Customers without disclosing our
involvement except as permitted by these conditions;
	 
	 	•	 	with our disclosed invoice discounting facility you will operate the sales
ledger and collect the debts as our disclosed agent and trustee by obtaining
Remittances In our favour;
	 
	 	•	 	with our confidential invoice discounting facility you will operate the
sales ledger and collect the Debts as our agent and trustee without disclosing
our involvement except as permitted by these conditions;
	 
	 	•	 	at any time we can cancel your agency and/or give notice of our interest to
your Customers under any facility;

	 	1.1.2	 	whether we are financing Debts due by your UK Customers or by your overseas
Customers or a combination of bath.
	 
	 	1.1.3	 	whether Debts are purchased on a recourse or a non-recourse basis; normally we
only purchase on a recourse basis so that you must bear the risk of unpaid debts and
unless stated to the contrary, these conditions are on this basis;
	 
	 	1.1.4	 	whether we are financing Debts expressed only in Sterling or in Approved
Currencies;

	1.2	 	These conditions apply to all our facilities unless stated to apply (or not to apply) to a
specific facility;
	 
	1.3	 	These conditions apply to all our clients however constituted, except where specified,
	 
	1.4	 	Certain words used in this document have special meanings which are explained in the Annexe
of Definitions at the end of this document. Their first letter is in capitals. Those which
only apply to a specific facility are so indicated.
	 
	2.	 	START AND LENGTH OF RELATIONSHIP BETWEEN YOU AND US
	 
	2.1	 	Our Agreement with you starts on the Commencement Date and will run for a minimum period of
twelve (12) months. After the end of such minimum period our relationship with you will then
continue until ended by either you or us giving to the other notice of at least six (6) months
to expire at the end of a calendar month. Such notice may be given at any time, even during
the minimum period, provided it runs out on or after the end of the minimum period. During
any period of notice you must continue to comply with all your obligations to us.

1

 

	 	 	However if all monies due to us shall not have been paid on or before the termination date
of such notice then any notice given by you shall be ineffective and this Agreement will
continue.
	 
	2.2	 	Should this Agreement end within such minimum period you must pay us a sum equal to the
shortfall between the amount of the minimum service fee that would have been earned had the
Agreement continued for the minimum period and the service fees actually earned from the
Commencement Date.
	 
	2.3	 	Should you wish to end this Agreement but give us notice of less than the minimum period of
notice we may still agree to your request, subject to an additional fee. For each month or
part of a month that your notice falls short of the minimum notice period the fee will be the
higher of:

	 	2.3.1	 	the monthly average of the service fees earned in the six calendar months (or
from the Commencement Date if within six calendar months) before we agree to accept
your request; or
	 
	 	2.3.2	 	one twelfth of the Minimum Service Fees for the twelve calendar months before
we agree to accept your request.

	2.4	 	We can also immediately end this Agreement by giving you written notice upon or at any time
after a Termination Event. If we end this agreement in this way there will be no refund of
any fees or charges and any payable shall be immediately due.
	 
	3.	 	OUR OWNERSHIP OF DEBTS, OFFERS AND NOTIFICATIONS
	 
	3.1	 	Our Agreement with you applies only to those Debts specified in the Receivables Finance
Agreement and which are created by you under whatever trading name or style you may ever carry
on business. We may alter, extend or reduce the scope of your facility to such Debts as we
agree with you.
	 
	3.2	 	Upon the terms and conditions of this Agreement you will sell and we will purchase with a
full title guarantee all your Debts which are owing to you at Commencement Date or which later
come into existence before this Agreement ends.
	 
	3.3	 	Unless you are an unlimited partnership or a sole trader then you now assign to us with full
title guarantee all Debts and their Related Rights which are in existence on the Commencement
Date or which come into existence at any time thereafter before the termination of this
Agreement. They shall vest automatically in us on the Commencement Date and thereafter upon
their coming into existence. You will include each such Debt on a Notification and ensure
that the Notification is received by us within seven days from the date of the invoice. Such
date must not be before the Goods are delivered. Such vesting will take place irrespective of
whether or not you Notify us of a Debt or even if you do not enter a Debt in your books.
	 
	3.4	 	If you are an unlimited partnership or a sole trader you will Offer to sell us all Debts and
their Related Rights in existence on the Commencement Date or which come into existence at any
time thereafter before the termination of this Agreement. We may, in our absolute discretion,
accept or refuse each Offer. We shall accept an Offer by debiting the Notified Value of the
accepted Debts to your Debtor Control Account in our books. Upon doing so our ownership of
the Debts that we

2

 

	 	 	have accepted shall be complete and the Debts thereby assigned to us. Where more than one
Debt is at the same time the subject of an Offer it shall be treated as an independent offer
to sell us each Debt so offered, which may be accepted or rejected by us entirely at our
discretion.
	 
	4.	 	PURCHASE PRICE OF DEBTS
	 
	4.1	 	The Purchase Price of each Debt covered by this Agreement is to be the amount received by us
for the Debt but less;

	 	4.1.1	 	any prompt settlement discount later claimed by the Customer; and
	 
	 	4.1.2	 	any other deductions, abatements or set-offs later claimed by the Customer;
and
	 
	 	4.1.3	 	the Early Payment Charge, the Service Fee and any Extended Service Fee; and
	 
	 	4.1.4	 	all other sums due to us.

	 	 	The Purchase Price will be payable as soon as practicable after we receive cleared funds for
the Remittance discharging the Debt. However, at our discretion an Early Payment may be
possible if your Availability permits.
	 
	4.2	 	(Additionally applicable only if you have our non-recourse facility) For each Protected Debt
for which no Remittance is received by us the Purchase Price shall be calculated and paid by
us in accordance with conditions 8.1 and 8.2.
	 
	5.	 	LIMITS AND PERCENTAGES
	 
	5.1	 	We may set up a Funding Limit for each Customer. Initially the Default Funding Limit will
apply to all your Customers. Debts in excess of a Funding Limit will be Unapproved Debts. We
can change Funding Limits at any time or reduce them to zero. We can remove any Customer from
the Default Funding Limit or declare all Default Funding Limits of not effect. If, following
a reduction of a Funding Limit, the amount of Early Payments already made exceeds your
Availability, the excess must immediately be paid back to us.
	 
	5.2	 	Most of the starting Limits are stated in the Receivables Finance Agreement including the
Default Funding Limit. However, other Funding Limits and Credit Limits (non-recourse
facility) will be established by us on or after the Commencement Date. We may at any time
increase or decrease any of the Limits with immediate effect. We or our agents Coface will
tell you of these by written notice, oral advice or making the same available through our
Internet Service, effective even if no enquiry be made.
	 
	6.	 	DECISIONS
	 
	6.1	 	We need not give reasons for any of our decisions and all decisions and information given by
us are confidential. You must treat any information regarding Funding Limits and Credit
Limits (non-recourse facility) as legally privileged and will Indemnify us against all claims
arising from breach of your duty of confidentially. We do not operate as a credit reference
service so you must not take Funding Limits or Credit Limits as our view of the
creditworthiness or otherwise of a Customer.
	 
	6.2	 	(Applicable only to our facility for Export Debts) We may at any time remove any country,
territory, region or continent from the list of Approved Countries by written notice to you or
by making the some available to you through our Internet Service, even if no enquiry be made.
However, such removal or addition shall not affect

3

 

	 	 	Debts Notified to us prior to such notice or making the same available.
	 
	6.3	 	(Applicable only to our facility for Approved Currencies) We may at any time remove a
currency from the list of Approved Currencies by written notice to you or by making the same
available to you through our internet service, even if no enquiry be made. However, such
removal or addition shall not affect Debts Notified to us prior to such notice or making the
same available.
	 
	7.	 	PROTECTION OF DEBTS
	 
	 	 	(Condition 7 is only applicable if you have our non-recourse facility)
	 
	7.1	 	Our associated company COFACE will be our agents for establishing and managing Credit Limits.
Any limit issued by them is to be treated as a Credit Limit under this Agreement. You must
comply with all their instructions and requirements. You must provide COFACE with all the
information about your Customers which we or they may require together with an indication of
the Credit Limits you want. COFACE will advise you of the Credit Limits that will apply until
further notice to the Notified Debts of those Customers. If the Credit Limit states that you
must obtain security then it is your responsibility to ensure that the security is valid and
enforceable. You must also comply with all other conditions under which a Credit Limit is
issued. If you fail to comply with any term, condition, obligation or procedure in this
Agreement or laid down by COFACE, we may change the status of a Protected Debt to an
Unprotected Debt without notice to you.
	 
	7.2	 	You must submit a request to COFACE for a Credit Limit if at any time you intend to enter
into a Sale Contract with any of the following and wish the resulting Debts to be Protected
Debts:

	 	7.2.1	 	a Customer who is not indebted to you at the Commencement Date;
	 
	 	7.2.2	 	a Customer for whom you consider the existing Credit Limit is less than the
expected Outstanding Debts of that Customer;
	 
	 	7.2.3	 	a Customer for whom a Credit Limit has previously been withdrawn or refused by
COFACE;
	 
	 	7.2.4	 	a Customer in respect of whom you have been required by COFACE to apply for a
revised Credit Limit.

	7.3	 	Debts within Credit Limits will be treated as Protected Debts in the order in which they are
Notified. Initial Debts can be Protected Debts.
	 
	7.4	 	At all times you must provide us and COFACE with all the information that we or they require,
information must be true and accurate. If you later become aware of any change to the
information given or you have knowledge that a Customer is in financial difficulties or is
insolvent. you must immediately tell us and COFACE and must not make any further deliveries
without our consent.
	 
	7.5	 	Any Credit Limit will only be valid for as long as the particulars submitted by you in
seeking such Credit Limit remain unchanged. Any alteration by you to your business, credit or
discount terms without our and COFACE’s prior written approval will automatically cancel any
Credit Limits given and the Debts within such cancelled Credit Limits shall rank as
Unprotected Debts.

4

 

	7.6	 	We or COFACE may at any time establish, change, suspend or remove a Credit Limit with
immediate effect upon notice or making the same available through their on line system or
through our Internet Service (even if no enquiry be made) or upon dispatching a written notice
about the same to you. Any Debts subsequently created or Notified will be so affected.
	 
	7.7	 	A Credit Limit previously given shall automatically be withdrawn without notice to you, If:

	 	7.7.1	 	the Customer prohibits the assignment of any Debt;
	 
	 	7.7.2	 	the Customer will not accept our ownership of Debts;
	 
	 	7.7.3	 	you are in breach of any of your obligations to us in respect of the Customer;
or
	 
	 	7.7.4	 	you request us not to pursue collection procedures against the Customer.

	 	 	Upon such withdrawal all Outstanding Protected Debts and all future Debts of that Customer
shall be treated as Unprotected Debts.

	7.8	 	Once we or you have issued legal proceedings for any Debt Outstanding, then the Credit Limit
for that Customer shall be withdrawn and you must not Deliver any further Goods without our
prior written consent.
	 
	7.9	 	A Credit Limit shall become ineffective if it relates to a Debt

	 	7.9.1	 	arising from Goods Delivered after we or Coface have refused or cancelled a
Credit Limit;
	 
	 	7.9.2	 	arising from Goods Delivered after either you have Adverse information about
the Customer or after the Customer has an Overdue Account;
	 
	 	7.9.3	 	arising from Goods delivered to an Insolvent Customer;

	7.10	 	Upon or at any time after a Termination Event, we can without notice withdraw any Credit
Limit and treat any Outstanding Protected Debts as Unprotected Debts. The exercise of this
entitlement shall be at our discretion. If this Agreement ends all Credit Limits previously
given shall automatically be withdrawn without notice and any Outstanding Debts thereupon
shall be Unprotected Debts.
	 
	8.	 	INSOLVENCY OF CUSTOMERS OR UNCOLLECTABLE DEBTS
	 
	 	 	(Condition 8 is only applicable if you have our non-recourse facility)
	 
	8.1	 	If, in respect of a Protected Debt which exceeds the threshold limit referred to in the
Receivables Finance Agreement, we decide that it is Uncollectable or if we are advised of both
the insolvency of a Customer and that Debts totaling in excess of such threshold limit have
been accepted by the Customer’s Insolvency practitioner as undisputed Debts then within thirty
(30) days thereof we will credit its or their Purchase Price to the Current Account. This
will be calculated by taking the value of such Outstanding Protected Debt and then deducting;

	 	8.1.1	 	firstly the VAT included in such Debts;
	 
	 	8.1.2	 	secondly any First Loss;
	 
	 	8.1.3	 	thirdly the amount of any Recoveries;
	 
	 	8.1.4	 	fourthly the total of any expenses that you do not have to pay as a result of
the insolvency or because the Debt is Uncollectable;
	 
	 	8.1.5	 	fifthly the greater of either the recourse percentage (stated in the
Receivables Finance Agreement) of its Notified Value or any minimum retention (stated
in the

5

 

	 	 	 	Receivables Finance Agreement) If a Customer due to pay an Unprotected Debt,
including a Debt outside a Credit Limit or included in the deductions in clause 8.1,
becomes insolvent such Debt shall forthwith become an Unapproved Debt.

	8.2	 	If a Protected Debt has been reassigned to you:

	 	8.2.1	 	you must use your best endeavors to recover payment of the Debt (including any
dividend from the estate of the Customer);
	 
	 	8.2.2	 	we may complete and lodge in your name any claim, proof or statement of Debt
In the insolvency of the Customer; and
	 
	 	8.2.3	 	you will pay to us any future sums (after deduction of any portion
representing VAT) which you recover in respect of such Protected Debt and until paid to
us you will hold such sums in trust for us.

	9.	 	DISPUTES
	 
	9.1	 	if any Customer disputes a Debt or his liability to pay us by its due date or asserts any
counterclaim or claim for reduction of or retention or set-off against a Debt (except for a
settlement discount not exceeding 5%), then:

	 	9.1.1	 	you must promptly give us full details; and
	 
	 	9.1.2	 	you must do your best to settle all such
	 
	 	9.1.3	 	disputes and claims promptly and directly with your Customers; but we may also
settle or compromise (or require that you should settle or compromise) disputes on such
terms as we may decide in our absolute discretion and you will be bound by such
compromise;
	 
	 	9.1.4	 	the Disputed Debt shall forthwith become an Unapproved Debt and any Protected
Debt subject to a Dispute shall forthwith become an Unprotected Debt,

	9.2	 	If we become aware that a Customer is disputing a Debt or his ability to pay by its due date,
we will normally, but need not, send you a notice called a “dispute notice”. You must resolve
the dispute within the period which we will tell you in such notice. The Debt will be an
Unapproved Debt and an Unprotected Debt whilst we await evidence satisfactory to us that the
dispute has been resolved.
	 
	9.3	 	You must promptly raise a credit note if a Customer is entitled to one. Unless we have
brought condition 9.4 into effect you must immediately deliver the credit note to the Customer
and include its details on your next Credit Note Listing. You will put such notice on the
credit note as we specify and it wili be credited to the Debtors Control Account
	 
	9.4	 	We may at any time tell you either that no credit notes can be dispatched to your Customers
without our prior consent or that any credit notes must be sent to us for our consent before
we then dispatch them.
	 
	9.5	 	Conditions 9.1 to 9.4 shall not affect those rights which we may have because you may have
breached this Agreement.
	 
	10.	 	OUR ACCOUNTS
	 
	10.1	 	We will keep these accounts to reflect the arrangements under the Agreement:

	 	10.1.1	 	Debtors Control Account;
	 
	 	10.1.2	 	Current Account
	 
	 	10.1.3	 	Individual Customer’s sales ledgers (factoring);

6

 

	10.2	 	To the Debtors Control Account there will, amongst other things, be:

	 	10.2.1	 	credited the following items

	 	•	 	the Notified Value of Credit Notes
	 
	 	•	 	the Notified Value of Debts subject to Repurchase
	 
	 	•	 	the Notified Value of any allowance made to the Customer
	 
	 	•	 	the Notified Value of Protected Debts where the Debtor is Insolvent or the
Debt is Uncollectible Remittances

	 	10.2.2	 	debited the following items

	 	•	 	the Notified Value of Debts
	 
	 	•	 	refunds to Customers

	10.3	 	To the Current Account there will, amongst other things, be:

	 	10.3.1	 	credited the following items

	 	•	 	Remittances
	 
	 	•	 	the Purchase Price of Protected Debts where the Debtor is Insolvent or the
Debt is Uncollectible.
	 
	 	•	 	monies paid by you to us
	 
	 	•	 	refunds and credits from us to you

	 	10.3.2	 	debited the following items

	 	•	 	all fees and charges made by us to you
	 
	 	•	 	the Early Payment Charge
	 
	 	•	 	Early Payments
	 
	 	•	 	other payments to you
	 
	 	•	 	refunds to Customers
	 
	 	•	 	VAT on our fees and charges

	10.4	 	To each Individual Customer’s sales ledger (factoring) there will, amongst other things, be:

	 	10.4.1	 	credited the following items

	 	•	 	the Notified Value of Credit Notes
	 
	 	•	 	the Notified Value of Debts upon Repurchase
	 
	 	•	 	the Notified Value of any allowance granted to the Customer
	 
	 	•	 	Remittances
	 
	 	•	 	the Purchase Price of Protected Debts if the Debtor is Insolvent or the Debt
is Uncollectable

	 	10.4.2	 	debited the following items

	 	•	 	the Notified Value of Debts
	 
	 	•	 	payments made to Customers

	10.5	 	To all our accounts we may debit or credit Adjustments and such other items as may be
necessary.
	 
	10.6	 	The Early Payment Charge will accrue from day to day on the debit balance on the Current
Account and such charge will be debited to the Current Account on the last Day of each month.
	 
	10.7	 	If any information sent with your Offer or Notification is incomplete or missing we may
reverse the entry of, or refuse to enter, the Debt in our books.
	 
	10.8	 	You may draw monies from us provided that the amount taken does not exceed the lesser of
either your Availability or the Maximum Funds in Use stated in the Receivables Finance
Agreement. Your Availability will immediately be affected if any Approved Debt is later
designated as an Unapproved Debt. If the amount drawn by you exceeds either the Maximum Funds
in Use or your Availability then you must immediately pay the excess to us without our having
to ask you.
	 
	10.9	 	We cannot permit you to draw any monies from us whilst any steps are under way towards your
Insolvency.
	 
	10.10	 	We may at any time add together the balances on all accounts recording transactions between
you and us. We

7

 

	 	 	may also at any time apply or set-off any amounts owing by you to us or the amount of Your
Responsibility against any amounts owing by us to you and for such purposes where any
amounts due by you to us, including those prospectively and contingently due, cannot
immediately be found out then we may make a reasonable estimate.
	 
	10.11	 	We will provide you with statements of the Debtors Control Account, and the Current Account.
These shall be treated as correct and binding upon you, except for those errors which shall
be obvious or contrary to law or where we receive your written notice within ten (10) days of
our despatch of such statements to you or making the same available to you via our Internet
Service.
	 
	10.12	 	You will accept a certificate signed by our Company Secretary or a director of ours as to
all or any of the following on the date referred to in the certificate:

	 	10.12.1	 	the balance on any account;
	 
	 	10.12.2	 	any loss or damage suffered by us;
	 
	 	10.12.3	 	the amount or Your Responsibility;
	 
	 	10.12.4	 	any other amount payable to us.
In any proceedings such certificate shall be conclusive evidence as to the balance, loss,
damage or amount on the date so certified.

	10.13	 	If we ask you to do anything which you are obliged to do under this Agreement you will have
to pay all costs and expenses of doing so. If you do not carry out anything which we have a
right to ask for then we may do it and you will pay all our costs and expenses.
	 
	10.14	 	All payments due from you to us shall be made as they fall due in immediately available
funds free and clear of any right of retention, set-off or counterclaim or any other
withholding or deduction. If you are required by law to make any withholding or deduction,
you will pay such additional sum as is needed so that we receive the full amount due to us
under this Agreement.
	 
	10.15	 	Where we receive a Remittance and there is no allocation to specific Debts by you or the
Customer or any other party either before or at the time of its receipt by us then we shall be
entitled to apply the unallocated portion in satisfaction of such Debts as we may decide; we
may likewise apply any payment made generally on account.
	 
	11.	 	CHARGES FEES AND INDEMNITIES
	 
	11.1	 	Our services are subject to the following fees and charges payable by you:

	 	11.1.1	 	the Arrangement Fee
	 
	 	11.1.2	 	the Early Payment Charge
	 
	 	11.1.3	 	the Service Fee, which is subject to the Minimum Service Fee
	 
	 	11.1.4	 	the Extended Service Fee
	 
	 	11.1.5	 	the Annual review Fee
	 
	 	11.1.6	 	the Excess Facility Fee
	 
	 	11.1.7	 	the Tariff Fees

	11.2	 	The Early Payment Charge will be calculated on the debit balance on the Current Account but
adjusted so that

	 	11.2.1	 	monies received by us are ignored until four (4) Working Days after we enter the
respective receipt on our accounts.
	 
	 	11.2.2	 	any monies paid to you by CHAPS shall attract Discount for an additional three (3)
Working Days;
	 
	 	11.2.3	 	Discount shall be applied to reflect the additional clearance time needed for
Remittances drawn on a bank outside

8

 

	 	 	 	England and Wales or in a foreign currency;

	 	 	Any entry on the Current Account will affect the Early Payment Charge. The Early Payment
Charge will be debited in accordance with clause 10.5.
	 
	11.3	 	If the Service Fee is based on the value of each Notified Debt we will debit this to the
Current Account when we receive your Offer or Notification, If the Service Fee is a fixed
amount we will debit this at the start of the relevant period. No refund of any service fees
can be made either if a credit note is issued or if this Agreement ends.
	 
	11.4	 	If the Receivables Finance Agreement provides for a Minimum Service Fee then this will apply
to each twelve month period from the first day of the month after the Commencement Date. You
will pay us a charge equivalent to any shortfall between the total of all service fees
received by us in that period and such Minimum Service Fee. Such shortfall shall be
calculated and debited to the Current Account monthly on a proportional basis with any
necessary adjustment being made regularly as and when required and on the date of termination
of this Agreement.
	 
	11.5	 	If at the end of the Funding Period a Debt remains Outstanding then you will thereafter pay
us an Extended Service Fee whilst the Debt remains Outstanding. This does not apply to a
Protected Debt (non-recourse) nor to a Debt which whilst it remains subject to any protection
under a credit insurance policy with COFACE where you are the insured.
	 
	11.6	 	Payments to you wili be made by BACS or CHAPS or such other method we may at any time advise
you. Payments by CHAPS will be subject to the appropriate Tariff Fee. Additionally you will
reimburse us for all charges made to us by our bankers, including but not limited to those
for:

	 	11.6.1	 	dealing with dishonoured Remittances;
	 
	 	11.6.2	 	collecting any Remittances in a currency other than Sterling;
	 
	 	11.6.3	 	collecting Remittances in Sterling drawn on a bank outside the United Kingdom;
	 
	 	11.6.4	 	making any payment in a currency other than sterling;
	 
	 	11.6.5	 	making any payment outside the United Kingdom;
	 
	 	11.6.6	 	maintaining any trust account.

	11.7	 	If we make special visits to your premises or anywhere else then you will pay all our costs
and expanses; except where these are part of our regular audit programme
	 
	11.8	 	You will fully Indemnify us against and we shall be entitled to require advance security for
all losses, costs, demands, disbursements, fees and expenses of:

	 	11.8.1	 	obtaining the release of Debts from charges, trusts or other encumbrances or
enforcing such release:
	 
	 	11.8.2	 	assignments or reassignments of Debts or Related Rights or giving notices of
assignment or reassignment;
	 
	 	11.8.3	 	taking guarantees or Indemnities from any person, including a receiver;
	 
	 	11.8.4	 	enforcing either this Agreement against you or any other party or any guarantee or
Indemnity given in respect of it;
	 
	 	11.8.5	 	all matters arising from any breach by you of this Agreement or the occurrence of a
Termination Event;

9

 

	 	11.8.6	 	dealing with disputes by Customers;
	 
	 	11.8.7	 	any Customer failing to pay a Debt to us at its full Notified Value by end of the
Funding Period, unless (non-recourse facility only) it is a Protected Debt either
unpaid solely for reason of the Customer’s Insolvency or which we determine to be
Uncollectable;
	 
	 	11.8.8	 	credit reference agency fees;
	 
	 	11.8.9	 	appointing Investigating accountants and/or lawyers;
	 
	 	11.8.10	 	having to refund a Customer under a direct debit guarantee given by us;
	 
	 	11.8.11	 	collecting any Remittance in your favour or that of any third party which is marked
“account payee” or which is otherwise restricted in its collectability;
	 
	 	11.8.12	 	failing to fulfil your obligations and conditions under this Agreement;
	 
	 	11.8.13	 	in making any payment based upon false or substantially incomplete information given
by you, including prior to this Agreement or when applying for any Limit;
	 
	 	11.8.14	 	collecting or attempting to collect any Debt (except a Protected Debt under a
non-recourse factoring facility) from the moment that we threaten proceedings,
including:

	 	(i)	 	our own internal costs, expenses and court fees;
	 
	 	(ii)	 	those of any solicitor or agent including COFACE engaged by us
to collected Debts;
	 
	 	(iii)	 	those payable to any other party to the proceedings.
	 
	 	 	 	(if you have our non-recourse facility) On a pro rata basis we will share with you
the charges, costs, expenses and fees referred to in this sub clause 11.8.12:

	 	(a)	 	where the claim involves both Protected and Unprotected Debts;
or
	 
	 	(b)	 	if you are responsible to us for a First Loss or a Recourse
Percentage in respect of the Protected Debts of that Customer.

	11.9	 	We can at any time give you one month’s notice of any increase in any or all of the Tariff
Fees or any other fees or charges. If you are dissatisfied with the proposed increase you may
then serve notice on us to end this Agreement in accordance with clause 2.1 provided that you
give such notice before the increase becomes effective. Until the Agreement ends in
accordance with such notice from you the increase shall not be effected,
	 
	11.10	 	VAT, if applicable, will be added to all fees and charges quoted by us.
	 
	12.	 	REPURCHASES AND REPAYMENTS
	 
	12.1	 	We may at any time require you to Repurchase Unapproved Debts from us. We will continue to
own all such Debts until we receive the price for all Repurchases. At this point we shall
transfer them back to you. Afterwards we shall account to you for any further sums received
by us from your Customers in respect of such Debts.
	 
	12.2	 	You will forthwith on demand repay to us any monies paid to you if:

	 	12.2.1	 	it Subsequently appears that they should not have been paid to you; or

10

 

	 	12.2.2	 	a Protected Debt is not admitted to rank for payment in the Insolvency.

	13.	 	NOTICES TO CUSTOMERS
	 
	 	 	(if you have a disclosed factoring or invoice discounting facility) Notice to each Customer
that we are the owner of the Debts must appear on each invoice and all copies. If we ask
you, you will also give a general notice to each Customer that we own all your present and
future Debts. We will tell you the wording of the notices which we can also give on your
behalf and at your expense.
	 
	14.	 	CUSTOMERS’ ACCOUNTS AND DEBT COLLECTIONS
	 
	14.1	 	(Condition 14.1 is only applicable if you have our factoring facility)

	 	14.1.1	 	Under this Condition 14.1 we will act in our name if you have our disclosed factoring
facility. We will act in your name if you have our confidential factoring facility.
	 
	 	14.1.2	 	We alone shall be entitled to collect and enforce payment of Debts in whatever way we
see fit, and you must ensure that Customers pay all their Debts to us (disclosed) or by
Remittances in our favour to our address (confidential factoring) or as we direct,
including by direct debits.
	 
	 	14.1.3	 	We will maintain your Customers’ accounts in the form of a sales ledger,
	 
	 	14.1.4	 	In our absolute discretion we can at any time grant time or other indulgence to any
Customer and compromise claims with Customers or accept payment from a Customer which
is less than the Notified Value of the Debt without discharging you from your
obligations to us
	 
	 	14.1.5	 	If any Customer refuses or fails to pay an amount in settlement of a Debt up to that
shown in the Receivables Finance Agreement as the shortfall amount, that amount shall
be treated as an Unapproved Debt. We will sand you a notice called a “shortfall
notice”, which you must treat as our demand for you Immediately to Repurchase the Debt
for the amount shown.
	 
	 	14.1.6	 	Upon request you must help us to collect Debts, whether or not we have to issue legal
proceedings against Customers. In our absolute discretion we may start, defend or
compromise any legal proceedings and you will be bound by our actions and decisions.
The proceedings may be in our or your name if you have our disclosed facility or in
your name if you have our confidential facility. You will give us all evidence that we
may at any time need, whether before, during or after any proceedings. You will make
sure that those witnesses we need will attend court. We may at any time use an
alternative dispute resolution procedure involving mediation or arbitration.
	 
	 	14.1.7	 	If you request us not to issue or continue with proceedings for a Debt, we may agree
to your request but shall not be obliged to do so. If we do agree then the Debt will
Immediately

11

 

	 	 	 	become an Unapproved Debt and/or an Unprotected Debt.
	 
	 	14.1.8	 	We Can repay to a Customer any credit balance shown on their account.
	 
	 	14.1.9	 	In most cases we will engage the services of a Group Company as our agent for
exercising our rights under this Condition 14 who may issue proceedings in your, our or
their name.

	14.2	 	(Condition 14.2 is applicable only if you have our Invoice discounting facility)

	 	14.2.1	 	We alone shall have sole and absolute discretion as to how to collect and enforce
payment of Debts. We can do this in whatever way we see fit. Until we exercise our
rights under condition 14.2.5 you must, at your expense, collect Debts and manage
Customers’ accounts for us as our undisclosed agent. You are not our agent for any
other purpose. If the agreement provides for a confidential Invoice discounting
facility you do not have to disclose to your Customers that Debts have been Assigned to
us. If the Agreement provides for a disclosed Invoice discounting facility you will
give notice of Assignment to your customers but direct them to send Remittances in our
favour but to your address.
	 
	 	14.2.2	 	Throughout the term of this Agreement you must ensure that all Debts are promptly and
correctly recorded in your Accounting Records and that your sales ledger control bears
a conspicuous notation that Debts have been sold and assigned to us.
	 
	 	14.2.3	 	During your agency we may communicate with Customers for the purposes of Debt
verification.
	 
	 	14.2.4	 	You must act promptly and efficiently when carrying out your duties as our agent.
	 
	 	14.2.5	 	We may at any time vary the terms of your agency or terminate it as we see fit. If
we so request you will glue notice to each Customer that we are the owner of all your
present and future Debts and that payment must be made direct to us. We will tell you
the wording of the notice which we can also give on your behalf. Unless we state
otherwise, such request will act as a cancellation of your agency, whereupon we alone
shall be entitled to collect and enforce payment of all Debts in whatever way we see
fit. You will fully co-operate with us end, as we direct, will help us to collect
Debts.
	 
	 	14.2.6	 	After the cancellation of your agency conditions 14.3.1 to 14.3.7 will also apply.

	14.3	 	After the cancellation of your agency:

	 	14.3.1	 	you must not say you are our agent:
	 
	 	14.3.2	 	you must Immediately send us your Accounting Records to do with Debts;
	 
	 	14.3.3	 	we will maintain your Customers’ accounts in the form of a sales ledger;
	 
	 	14.3.4	 	you must ensure that Customers pay all their Debts to us or as we direct including by
direct debits;

12

 

	 	14.3.5	 	increase the Service Fee to ten per cent (10%) of the Notified Value of Debts then
Outstanding or subsequently Notified;
	 
	 	14.3.6	 	increase the Early Payment Charge percentage by two per cent (2%);
	 
	 	14.3.7	 	clauses 14.1.3 to 14.1.9 will then apply;
	 
	 	14.3.8	 	the increases under clauses 14.3.5 and 14.3.6 do not give you any rights under clause
11.9

	15.	 	TRUSTS AND OTHER RIGHTS
	 
	15.1	 	From the moment that you receive any Remittance, you wili hold it absolutely in trust for us.
We may give notice to anyone that such trust exists.
	 
	15.2	 	When you receive a Remittance you must:

	 	15.2.1	 	immediately hand over to us the Identical Remittance or pay It into our bank account
or into a trust account for our benefit;
	 
	 	15.2.2	 	not pay it into any other account or deal with or negotiate it;
	 
	 	15.2.3	 	give us any advice received with It.

	15.3	 	A trust bank account must be run according to our instructions. This means that you must
irrevocably appoint our officers as the only persons authorised to undertake transactions on
the account.
	 
	15.4	 	You must give us a letter addressed to your bankers instructing them to transfer to our
bankers any cheques, bank giro transfers, BACS, CHAPS and other electronically transferred
funds that may be received by your bank from Customers. You will not be able to cancel such
instructions. You must indemnify our bankers so they can collect the proceeds of any
Remittances payable to you or your agents.
	 
	15.5	 	If we do not become the owner of any Debt or its Related Rights covered by this Agreement for
any reason then you will hold such Debt or its Related Rights on trust for us free from all
encumbrances.
	 
	15.6	 	You must promptly tell us about all Returned Goods. We may require you to set these aside
marked with our name as the owner. You will then deliver them to us, or deal with them as we
direct. We can, without notice, enter any premises where we believe Returned Goods or any
other Items comprised In the Related Rights are kept. We can take possession of or sell any
Returned Goods on such terms and at such prices as we consider appropriate. We shall credit
the net proceeds towards the discharge of the relative Debts. If we ask, you will deliver to
us or allow us to take away any other Items included in the Related Rights which we may deal
with as we see fit.
	 
	16.	 	YOUR UNDERTAKINGS TO US
	 
	16.1	 	Whilst this Agreement is in force and then until we have been paid all monies owing to us
(including by you and by Customers) you undertake:

	 	16.1.1	 	to ensure that all Invoices are raised and sent to Customers within seven (7) days of
Goods being Delivered and that we are Notified within the same period;
	 
	 	16.1.2	 	to make sure the payment and settlement discount terms for each Debt and any rights
of retention, abatement or rebate are not more generous than those appearing in the Receivables Finance Agreement

13

 

	 	 	 	and that these appear on every invoice and all copies;

	 	16.1.3	 	not to cancel or vary any Sale Contract or any payment terms or settlement or
discounts after Delivery unless you have our written consent;
	 
	 	16.1.4	 	to make sure that every Sale Contract shall:

	 	•	 	only be made in the ordinary course of your business stated in the Client
particulars in the Receivables Finance Agreement;
	 
	 	•	 	be subject to the law of one of the jurisdictions within the United Kingdom,
other than the Channel Islands or the Isle of Man;
	 
	 	•	 	provide for payment by the Customer in Sterling or (if you have our Foreign
Currency Facility) in an Approved Currency;
	 
	 	•	 	not include any prohibition against assignment of the debt;

	 	16.1.5	 	to make sure that neither you nor any Associate enters into any other agreement for
the factoring, charging, declaring in trust or discounting of Debts with any other
party or into any arrangement prejudicial to our outright ownership of Debts;
	 
	 	16.1.6	 	to tell us immediately you know about the following:

	 	•	 	any change or contemplated change in the directors or partners or the
control or ownership of your company, firm or business or of any guarantor or
Indemnifier of your obligations to us;
	 
	 	•	 	any threatened or pending insolvency proceedings against you, or against any
guarantor, indemnifier or Associate;
	 
	 	•	 	a all Adverse information about a Customer and any changes in the status,
address or creditworthiness of a Customer;
	 
	 	•	 	any security holder taking any steps towards or actually enforcing its
security over any part of your assets or undertaking;
	 
	 	•	 	any floating charge given by you being crystallised or becoming converted
into a fixed charge;
	 
	 	•	 	all retrospective or quantity discounts agreed with Customers;
	 
	 	•	 	any payment or settlement discount terms different from those shown in the
Receivables Finance Agreement;
	 
	 	•	 	any rights of set-off or counterclaim that Customers may have or seek to
raise;
	 
	 	•	 	any Adjustments;

	 	16.1.7	 	Immediately we ask;

	 	•	 	all retrospective or quantity discounts agreed with Customers;
	 
	 	•	 	to provide information about your Customers;
	 
	 	•	 	to give evidence satisfactory to us of any order and the completion of any
Sale contract;
	 
	 	•	 	to exercise any reservation of title to Goods in the Sale Contract;
	 
	 	•	 	to deliver to us and not to your Customer the originals of any of the items

14

 

	 	 	 	comprised in the Related Rights, together with as many copies as we may
require; we may forward these to the Customer or other persons or organisations
as appropriate at your expense;

	 	16.1.8	 	not to Notify us. until we tell you, any Debt which shall;

	 	•	 	be due by an Associate;
	 
	 	•	 	include a claim for Interest for late payment or any penalties or damages;
	 
	 	•	 	arise from Goods supplied by you on approval, trial, evaluation,
consignment, sale or return or similar terms
	 
	 	•	 	be due by a Customer who has not purchased the Goods for his business;
	 
	 	•	 	be regulated by the Consumer Credit Act 1974;
	 
	 	•	 	arise from the sale of your Capital or fixed assets;
	 
	 	•	 	be due in a currency other than Sterling (unless you have our Foreign
Currency Facility):
	 
	 	•	 	(Applicable only if you have our Export Debts facility) be dischargeable
wholly or in part by letters of credit;
	 
	 	•	 	due under a Sales Contract under which payment is to be received before the
Goods are Delivered or under a Cash Against Documents Sale;
	 
	 	•	 	due under a Sale Contract with any ministry or department of the Government
of the United Kingdom,
	 
	 	•	 	or of Scotland, Wales, Northern Ireland, the Channel Islands or the Isle of
Man; or of any foreign government;
	 
	 	•	 	be evidenced by an invoice addressed to a Customer outside any Approved
Countries;
	 
	 	•	 	be within a category of such other debts as we may specify;

	 	16.1.9	 	Immediately to cease and desist from any contra accounting arrangements with your
Customers;
	 
	 	16.1.10	 	not to Notify us of any Debt until the Goods have been Delivered;
	 
	 	16.1.11	 	to keep us advised of the Identity of your Associates;
	 
	 	16.1.12	 	promptly to perform all your further and continuing obligations to a Customer and,
if we ask, to give evidence of such performance;
	 
	 	16.1.13	 	to create such security in our favour on your undertaking and assets as we may
specify for your performance of this Agreement, or in respect of Debts intended to be
owned by us but which for any reason fail to belong to us:
	 
	 	16.1.14	 	to sign any additional documents and do anything we may need to exercise or enforce
our rights, to sign assignments of Debts or Related Rights or endorse or Assign any
Instrument or security included in the Related Rights; any such assignment of a
Scottish Debt or any of its Related Rights will support the assignment given in

15

 

	 	 	 	condition 3 but will not prejudice that earlier assignment;

	 	16.1.15	 	to follow our guidelines for the day to day efficient working of this Agreement;
	 
	 	16.1.16	 	to make sure that your warranties about Debts are complied with until they are
discharged;
	 
	 	16.1.17	 	to take all steps we may require for the protection of our interests under or
arising out of this Agreement and in mitigating any loss we may suffer and to use all
reasonable endeavours to preserve our rights against both Customers and third parties;
	 
	 	16.1.18	 	to make sure that in relation to your sole trader and unlimited partnership
Customers your processing of information about them (including any transfers to us)
compiles in all respects with the Data Acts, and is accurate;
	 
	 	16.1.19	 	to advise us promptly should you receive any notice or allegation of non-compliance
with the Data Acts;
	 
	 	16.1.20	 	to advise us promptly of all changes made to information transferred to us if you
receive a request from a Data Subject;
	 
	 	16.1.21	 	to permit us to advise your sole trader and unlimited partnership Customers about
your disclosure of information about them to us and the use we will make of such
information, including making searches with our credit reference and fraud prevention
agendas;
	 
	 	16.1.22	 	(Non-Recourse Facility only) to comply with all the requirements advised by us to
you of any credit insurance policy that we may effect in our name covering Debts vested
in us hereunder to the extent that such compliance can be effected by you;
	 
	 	16.1.23	 	(where the Receivables Finance Agreement requires you to affect a Credit Insurance
Policy) to comply with the credit insurance policy and to ensure that we are made loss
payees or joint Insured (as we may determine) and to pay all renewal premiums, make all
declarations and to produce the premium receipts to us forthwith upon each renewal.

	17.	 	YOUR WARRANTIES TO US

	17.1	 	By Notifying us of a purported Debt you will be treated as having given all of the following
warranties to us in relation to it;

	 	17.1.1	 	all the particulars Notified to us are correct and complete and the Debt has not been
previously Notified to us;
	 
	 	17.1.2	 	each Debt relates to an actual and bona fide sale and Delivery has taken place in
accordance with the Sale Contract;
	 
	 	17.1.3	 	the Debt is one to which this Agreement applies and is payable in the UK by a
Customer with an established place of business in the UK or (or if you have an Export
Debts Facility) in an Approved Country.
	 
	 	17.1.4	 	you have the absolute right to transfer the Debt to us and, except in our favour, it
is shall remain free from any security. charge, trust, option, pledge, hypothecation, encumbrance, lien or any tracing
rights

16

 

	 	 	 	adversely affecting the Debt, the Goods or the proceeds;

	 	17.1.5	 	our ownership of the Debt will not violate any laws or agreement affecting you;

	 
	 	17.1.6	 	the Notified Value of the Debt is the same as its Contracted Value:
	 
	 	17.1.7	 	you have complied and will continue to comply with all terms, conditions and
approvals under any credit Insurance policy affecting the Debt and whether issued by
COFACE or any other credit insurer and whether issued to you or us but where the policy
has been issued to us such warranty applies only to such terms, conditions and
approvals about which you may be advised);
	 
	 	17.1.8	 	all sums due or obligations by you to the Customer have been paid or performed and
you will have no other obligations towards the Customers which could reduce the amount
payable to us for the Debt;
	 
	 	17.1.9	 	no right or claim of rescission, defence, adjustment or other right or claim exists
or will arise to reduce or extinguish the Notified Value of the Debt or affect our
ability to collect the Debt at its full Notified Value without any retention, set-off
or counterclaim:
	 
	 	17.1.10	 	the correct name and address of the Customer and any required purchase order number
appear on the invoice or credit note, on any documents supplied evidencing the Debt and
all correspondence;
	 
	 	17.1.11	 	our Customer account number appears on the Offer, Notification or Client Note
Listing;
	 
	 	17.1.12	 	the Customer has obtained all the consents and certificates necessary in order to
pay the Debt to us;
	 
	 	17.1.13	 	the Invoice or credit note identifies the currency for payment as Sterling or (if
you have our Foreign Currency Facility) an Approved Currency;
	 
	 	17.1.14	 	the Customer has all unconditional authorities, licenses and permits necessary for
him lawfully to purchase the Goods and to pay for them by their due date for payment;
	 
	 	17.1.15	 	(Applicable only if you have our Export Debts facility) where the Debt is an Export
Debt you will be treated as additionally warranting to us that;

	 	•	 	the Debt is payable by a Customer with an established place of business in
the country to which the invoice is addressed, (such country being an Approved
Country) and without any set-off or counterclaim ;
	 
	 	•	 	the exportation of the Goods does not breach the laws of the United Kingdom
or any other country or territory;

	 	17.1.16	 	you have complied with all your undertakings to us which should have been performed
prior to Notification of the Debt have been performed.

	17.2	 	You warrant that prior to entering into this Agreement you have disclosed to us every fact or
matter known to you or

17

 

	 	 	which you should have reasonably known might influence us in our
decision whether or not;

	 	17.2.1	 	to enter into this Agreement on these terms; or
	 
	 	17.2.2	 	to accept any person as a guarantor or indemnifier of your obligations to us.

	17.3	 	You will immediately tell us of anything which might reasonably influence our decision to
continue with this Agreement on these terms. You will also immediately tell us of any change
in the information given to us before entering into this Agreement, particularly In the nature
of your basis, the scope of your activities or your legal status.

	18.	 	INTERNET SERVICE

	18.1	 	We will provide you with our Internet Service. You will provide all computer equipment
required at your premises and will keep this equipment virus free and suitable for use. We
shall have no responsibility for any damage, loss or corruption of your data, software or
equipment caused through the loading or operation of our Software.
	 
	18.2	 	You undertake:

	 	18.2.1	 	to use your best endeavours to keep such equipment free from any Equipment Defect or
Transmission Defect and to make suitable contingency arrangements to cover any such
defect or the withdrawal or suspension of our Internet Service;
	 
	 	18.2.2	 	immediately to load and use any Software updates which we may provide;
	 
	 	18.2.3	 	to keep secret and confidential the method of operation of our Internet Service, the
Software and all access data and security procedures and to tell us promptly if any
contravention is known or suspected;
	 
	 	18.2.4	 	on a weekly basis or more frequently if we tell you, to make back up copies on disk
of your sales ledger records, including invoices and credit notes, and to securely
store such copies away from your premises for at least four(4) months, and to advise us
of their location.

	18.3	 	You will have a non-transferable licence to use the Software. We own all rights in the
Software. You may not copy it without our prior written consent, except one copy solely for
back-up purposes.
	 
	18.4	 	You and we undertake to each other;

	 	18.4.1	 	to use all reasonable endeavours to ensure that each Transmission is completely and
correctly sent;
	 
	 	18.4.2	 	to tell the other promptly if either is aware of any Equipment Defect or Transmission
Defect and to co-operate with the other to remedy it;
	 
	 	18.4.3	 	to maintain appropriate records in support of Transmissions and to ensure that our
Internet Service is not accessible to unauthorised persons.

	18.5	 	We will maintain a Transmission Log which shall, in the absence of manifest error, be
conclusive proof and evidence of the Transmission sent or received by us.
	 
	18.6	 	We may rely upon any Transmission ostensibly sent by you even though it
may be sent without your authority. We may also rely upon any Transmission sent through
your agent or Intermediary

18

 

	18.7	 	We may without notice suspend, withdraw or reactivate the operation of our Internet Service.

	18.8	 	We shall have no responsibility to you for any loss or damage as a result of any failure or
delay in complying with our obligations in connection with our Internet Service, including
that arising from any:

	 	18.8.1	 	Equipment Defect or Transmission Defect;
	 
	 	18.8.2	 	suspension or withdrawal of our Internet Service;
	 
	 	18.8.3	 	act or omission of any third party or abnormal operating conditions;
	 
	 	18.8.4	 	failure to process any Transmission to our internal systems.

	18.9	 	Please note that any information available from our Internet Service may only be accurate to
an earlier point in time. In particular any request by you for a payment based upon any
Availability shown may not be actioned by us as further information becomes available.
	 
	18.10	 	You and we will give each Transmission the same status as if it had been in writing, signed
on behalf of the sender and physically delivered to the recipient, unless the Transmission can
be shown to have been corrupted as a result of technical failure. Transmissions shall be
treated as satisfying any legal requirement for a communication to be in writing. You waive
any rights to challenger the validity of any Transmission on the ground that it was prepared
and/or sent and/or received only in electronic form.
	 
	18.11	 	If you are an unlimited partnership or sole trader a Transmission regarding Debts shall be
treated as including the following words:

	 	 	 	“In accordance with the Receivables Finance Agreement between, Coface Receivables
Finance Limited and me/us the Debts referred to in this Transmission shall be
considered as being subject to an Offer. I/we confirm that all the warranties and
undertakings contained in the Agreement relating to Debts and their Related Rights
have been complied with and in particular the goods have been delivered and/or the
services have been completely performed. Where I/we have a disclosed facility I/We
certify that the original invoices have been sent to the Customers with notice of
assignment in the form stipulated by you. If for any reason any of these Debts and
their Associated Rights have failed to vest in you under the Agreement or following
the Offer, we hereby absolutely assign the same to you.”

	19.	 	INFORMATION FOR US

	19.1	 	You must give us a signed copy of your full set of accounts, including your directors’ or
partners’ (as the case may be) and auditors’ report or such other financial reports as we
request, for each of your accounting reference periods (as defined in the Companies Act 1985).
You must give us these items as soon as you have them, which must be no later than six months
from the end of each accounting period.
	 
	19.2	 	You must give us your management profit and loss account and balance sheet at such intervals
as we tell you. You wili also give us such other financial reports that we may ask for and you will ensure that your auditors or external
accountants report to us directly any Information we require. If

19

 

	 	 	we ask you will provide us with a copy of your partnership agreement and any amendments if you are a limited liability
partnership.

	19.3	 	You will let any employee, representative or agent of ours enter any of your business
premises or locations under your control in order to:

	 	19.3.1	 	Inspect Goods, stocks, Sale Contracts and evidence of their performance;
	 
	 	19.3.2	 	verify, check, remove or at our option be provided with copies certified by a
solicitor of all Accounting Records.

	19.4	 	We may at all times rely upon any signature, act or communication of any person purporting to
act on your behalf and the same shall be binding upon you.
	 
	19.5	 	(if you have our invoice discounting facility) You will provide us by the monthly returns
date specified in the Receivables Finance Agreement with;

	 	19.5.1	 	an aged analysis of Debts on the basis specified in condition 19.6 and correct to the
last date of the preceding month and identifying those Customers’ accounts which are
either in dispute or have been passed to solicitors, debt collectors or other third
parties for collection.
	 
	 	19.5.2	 	copy Customers’ statements for the last day of the preceding month;
	 
	 	19.5.3	 	a sales ledger control in the format we tall you reconciled to the aged analysis of
Debts;
	 
	 	19.5.4	 	a copy of your purchase ledger up to the last day of the preceding month;
	 
	 	19.5.5	 	your sales ledger control in the format we tell you reconciled to our sales ledger
control account;
	 
	 	19.5.6	 	any other information we may ask for.

	19.6	 	The basis for the analysis of Debts is that, from each invoice date, it will separately
identify the amounts of Outstanding Debts by Customer and show Customer balances as follows;
total; up to 30 days; 31 — 60 days; 51-90 days, 90-120 days and beyond 120 days, plus a
summary ageing of the totals of each of these categories.

	20.	 	TERMINATION EVENTS

	20.1	 	In addition to the right of either you or us to give notice to the other to end this
Agreement under condition 2.1, we may Immediately end It (or give you shorter notice) at any
time after any of the following events:

	 	20.1.1	 	any breech or threatened breech by you of this Agreement;
	 
	 	20.1.2	 	the breach or threatened breach or the termination of any contract between us and any
of your Associates;
	 
	 	20.1.3	 	any application by any creditor of yours for a court order that we must pay money to
your creditor or must atop paying any monies to you;
	 
	 	20.1.4	 	If you have an obligation to a third party for repayment of borrowed money which is
declared due prior to its stated maturity date or you do not pay It when due;
	 
	 	20.1.5	 	any change in your directors or partners (as the case may be), or in your ownership,
control, constitution or composition or business activities;
	 
	 	20.1.6	 	breach or termination by you or a third party of any representation, warranty or
undertaking given to us;

20

 

	 	20.1.7	 	the termination of any waiver, consent, ranking or priority arrangement in our
favour;
	 
	 	20.1.8	 	your ceasing or threatening to cease to carry on the business referred to in the
client particulars in the Receivables Finance Agreement.;
	 
	 	20.1.9	 	your Insolvency;
	 
	 	20.1.10	 	the Insolvency or death of any person who has given a guarantee or indemnity for
your obligations to us, or the service of a notice of Intention to and such guarantee
or indemnity or the legal disability of that person:
	 
	 	20.1.11	 	If any Associate factors or discounts its debts with another party or is threatened
with Insolvency proceedings or becomes Insolvent.
	 
	 	20.1.12	 	your failure for a period of forty five (45) days to deliver a Notification to us;
	 
	 	20.1.13	 	a criminal conviction (except a non-prisonable motoring offence) being imposed on
any of your directors, partners or (if you are a sole trader) yourself;
	 
	 	20.1.14	 	If any statement made to us at any time is or is found to be false or substantially
incomplete such as to have materially influenced our decision to enter into this
Agreement, or for COFACE or ourselves to Issue or vary any Limit or to make any
payment.

	20.2	 	Upon or at any time after a Termination Event (whether or not we use our right Immediately to
end this Agreement). we may, with or without notice to you and without affecting any other
rights under this Agreement, do any or all of the following;

	 	20.2.1	 	reduce the Early Payment Percentage to zero or such other figure as we may decide;
	 
	 	20.2.2	 	designate all or any Outstanding Debts as Unprotected Debts and/or Unapproved Debts;
	 
	 	20.2.3	 	create a special reserve against your Availability to cover Your Responsibility;
	 
	 	20.2.4	 	add together the balances on all accounts recording transactions between you and us;
	 
	 	20.2.5	 	demand that you pay us immediately any debit balance on the Current Account plus all
charges accrued but not yet debited to any account and an amount equal to all credit
balances on Customers accounts;
	 
	 	20.2.6	 	require you to Repurchase any Debts then Outstanding;
	 
	 	20.2.7	 	cancel your agency to collect Debts;
	 
	 	20.2.8	 	give notice of Assignment to Customers (where any confidential facility previously
existed);
	 
	 	20.2.9	 	convert any invoice discounting facility to a factoring facility;
	 
	 	20.2.10	 	increase the service fee to ten per cent of the Notified Value of the Debts then
Outstanding or subsequently Notified;
	 
	 	20.2.11	 	Increase the Early Payment Charge by 2% above Base Rate.

	20.3	 	Upon the ending of this Agreement, for whatever reason:

	 	20.3.1	 	(non-recourse facility only) all Protected Debts shall forthwith become Unprotected
Debts and Unapproved Debts;
	 
	 	20.3.2	 	you must Repurchase all Outstanding Debts from us at a price equivalent to the debit
balance on the Current Account and all other sums due to us and

21

 

	 	 	 	we shall continue to own all Debts subject to Repurchase until so paid;

	 	20.3.3	 	you will not attempt to cancel any notices of assignment or assignation given to
Customers or attempt to collect Debts until you have paid the Repurchase price under
condition 20.3.2;
	 
	 	20.3.4	 	you will be responsible for all credit balances on Customers’ accounts and Indemnify
us in respect of all claims for them;
	 
	 	20.3.5	 	you will not Notify us of any Debts arising after the date on which this Agreement
ends: and
	 
	 	20.3.6	 	we shall pay you any credit balance on the Current Account less the amount of Your
Responsibility but allowing sufficient time for clearance of Customers’ cheques.

	20.4	 	Except as otherwise provided, the ending of this Agreement shall not affect our respective
rights and obligations in respect of:

	 	20.4.1	 	any Debts which shall have come into existence prior to such termination; and
	 
	 	20.4.2	 	all transactions or events having their inception prior to such termination,
including the continued running of the discounting charge and our rights to set-off
monies’ or combine accounts.

	 	 	Such rights and obligations shall remain in full force and effect until all monies due from
you shall have been received by us and all monies due from us to you shall have been paid.

	20.5	 	Any discharge of your obligations to us shall be of no affect to the extent that any receipt
by us shall later be set aside under insolvency law.

	21.	 	POWER TO ACT IN YOUR NAME

	21.1	 	To ensure that you carry out your obligations to us and as security for all sums which shall
become due to us, you irrevocably appoint us and our directors, Company Secretary and
officers, and those of COFACE at any time, jointly and each of them severally to act as your
attorneys as we or they think fit and solely for our benefit in order to do any of the
following:

	 	21.1.1	 	complete and perfect our title to or deal with any Debt, Related Rights or Returned
Goods;
	 
	 	21.1.2	 	obtain payment of and give valid discharges for any Debt;
	 
	 	21.1.3	 	secure performance of any of your obligations to us or any Customer or to any Insurer
providing credit or other insurance to either you or us;
	 
	 	21.1.4	 	sign and deliver Offers to us;
	 
	 	21.1.5	 	to effect a credit Insurance policy covering debts, administer the policy and pay all
premiums.

	21.2	 	For these purposes, your attorneys may do any of the following:

	 	21.2.1	 	sign all documents;
	 
	 	21.2.2	 	endorse and/or negotiate all Remittances;
	 
	 	21.2.3	 	make all payments;
	 
	 	21.2.4	 	conduct, defend or compromise any legal proceedings and settle any Indebtedness;
	 
	 	21.2.5	 	take all other steps they consider necessary.

	21.3	 	These powers shall continue both during and after the ending of this Agreement or during any
disability on your part until all sums due to us have been paid. You wili ratify and confirm
whatever shall be lawfully done under these powers.
	 
	21.4	 	You also irrevocably appoint any assignee of ours or any person to

22

 

	 	 	whom we may novate this Agreement to perform any of the acts set out above. We may also appoint or remove a
substitute attorney.

	22.	 	CONTACTING CUSTOMERS AND OTHER PARTIES

	22.1	 	We may:

	 	22.1.1	 	communicate with your Customers as we think necessary;
	 
	 	22.1.2	 	provide your bank, auditors, accountants, other professional advisers and any
guarantors and/or Indemnifiers to this Agreement with such information about your
accounts with us as they may ask or we may consider necessary;
	 
	 	22.1.3	 	obtain from your bank, auditors, accountants and other professional advisers such
information as we may request.

	22.2	 	We may disclose this Agreement and any information which we have obtained:

	 	22.2.1	 	to any actual or potential assignee, transferee or sub-participant;
	 
	 	22.2.2	 	to any agency, security trustee. agent and/or arranger in connection with any
financing of any such assignee, transferee or sub-participant;
	 
	 	22.2.3	 	in any listing particulars, prospectus or offering circular;
	 
	 	22.2.4	 	to any or potential credit insurer;
	 
	 	22.2.5	 	to any person with legal authority to receive the same.

	22.3	 	You confirm that you have authorised the persons referred to in condition 22.1.3 to give us
such information.
	 
	22.4	 	You will hold us harmless and make no claim if we inadvertently disclose to any third party
this Agreement or anything about It or you.

	23.	 	ASSIGNMENT, DELEGATION AND FORCE MAJEURE

	23.1	 	As we see fit we may delegate all or any of our rights and duties under this Agreement to any
party of our choosing.
	 
	23.2	 	You also consent to our novating to any other party any or all of our obligations, rights and
remedies. This Agreement shall bind and ensure to the benefit of our successor’s and
assignees.
	 
	23.3	 	Except where the context otherwise requires references to “we” or “us” shall include our
successors, assignees and transferees in clauses and conditions conferring benefits and/or
rights on us; in clauses and conditions imposing obligations on us, such references shall
extend to such successors, assignees and transferees only If they shall specifically assume
such obligations.
	 
	23.4	 	You will not, without our prior written consent:

	 	23.4.1	 	Assign, grant security over or charge any of your rights or benefits or delegate any
of your duties under this Agreement;
	 
	 	23.4.2	 	dispose of any plan of your business, assets or undertaking, except in the ordinary
course of your business;
	 
	 	23.4.3	 	create any securities. mortgages or charges on or over your assets or undertaking.

	23.5	 	We shall not be liable to you for any consequential, secondary or indirect loss, injury or
damage or any loss of or damage to goodwill, profits or anticipated savings. However nothing
shall operate to excuse us from liability caused by the fraud of any of our officers.

23

 

	23.6	 	We shall have no liability to you if we are delayed in or unable to perform our duties
directly or indirectly because of an event of Force Majeure.
	 
	23.7	 	Any waiver or apparent waiver by us of any breach of any obligation or provision in this
Agreement cannot be treated as a general waiver or be construed as implying or establishing
consent to any subsequent breach.
	 
	23.8	 	Where any Debt is subject to credit insurance under a policy in our name then the insurers
shall have full rights of subrogation to all our and to all your rights and actions in respect
of the Debt and to any securities attached to it.

	24.	 	UNLIMITED PARTNERSHIPS AND SOLE TRADER CLIENTS

	 	 	If you are an unlimited partnership, the provisions or conditions 24.1 to 24.9 and 24.11
additionally apply. If you are a sole trader conditions 24.10 and 24.11 additionally apply.

	24.1	 	Any reference to you shall be treated as a reference to both your firm (under whatever name
or trading style you may use) and to any one or more of your partners. Your undertakings and
warranties to us shall also be treated as given by you and by each of your partners all of
whose obligations to us shall be joint and several.
	 
	24.2	 	The persons signing this Agreement comprise you and all your partners.

	 
	24.3	 	We shall have all of these rights namely to:

	 	24.3.1	 	release or conclude an arrangement or Compromise with you or any one or more of your
partners, without affecting our rights against the others;
	 
	 	24.3.2	 	treat a notice or demand by us to any of your partners as a notice or demand given to
the others;
	 
	 	24.3.3	 	treat a notice or demand by any of your partners to us as a notice or demand given by
you or all of your partners (but we shall not be obliged to treat a notice or demand in
this way);
	 
	 	24.3.4	 	treat this Agreement as binding upon any executor, administrator or personal
representative of any of your partners and upon any committee, receiver, trustee,
supervisor or other persons acting on behalf of any of you; and
	 
	 	24.3.5	 	treat any variation of this Agreement which is required to be signed by you as
binding on you if signed by one or more of your partners.

	24.4	 	We may immediately end this Agreement at any time after the death, retirement, dismissal or
other event by which any of your partners shall cease to be a member of your partnership or
after the dissolution of the partnership for any reason,
	 
	24.5	 	We may treat condition 21.1 as if there were added after the words “to act as your attorneys”
the words “and to act as the attorneys of each of your partners”.
	 
	24.6	 	If at any time a partner dies or ceases (or intends to cease) to be a member of your
partnership (a “Retiring Partner”) you will immediately give us written
notice of that fact. Without affecting any other rights of ours under this Agreement the
following provisions shall apply:

	 	24.6.1	 	a Retiring Partner in respect of whom such notice has been given to and acknowledged
by us in writing will have no rights or liabilities in respect of any Debts created
after the date of such acknowledgement but

24

 

	 	 	 	shall remain fully liable to us for Debts created before such acknowledgement; and

	 	24.6.2	 	until we receive and acknowledge such notice in respect of a Retiring Partner he
shall remain fully liable to us.

	24.7	 	If you Intend to:

	 	24.7.1	 	take in a new partner; or

	 	24.7.2	 	change your trading style, or adopt another style; or
	 
	 	24.7.3	 	change your domicile to a legal jurisdiction outside England Wales; or
	 
	 	24.7.4	 	change your constitution or become a limited liability partnership; or
	 
	 	24.7.5	 	transfer your assets or business to another legal entity

	 	 	then you must immediately give us written notice of such intention and sign such documents
at your expense as we may require. However, we may within one month of such notice
immediately end this Agreement or may exercise our rights under this Agreement as if such
intention were a Termination Event.

	24.8	 	Until we exercise any rights set out above or any of our rights following a Termination
Event, this Agreement shall remain effective despite any change in your constitution,
composition or legal personality and whether by death, retirement, addition or otherwise.
Despite any addition to or change In the name or trading style or the members of your
partnership we may treat the Agreement as continuing. Unless otherwise agreed we may account
to the partnership or exercise all rights of set-off or retention as if there had been no such
change.

	24.9	 	You warrant that each partner’s residential address is correctly stated in the Client
particulars in the Receivables Finance Agreement. You wili advise us of any changes.
	 
	24.10	 	If you are a sole trader:

	 	24.10.1	 	we may treat the Agreement as binding upon any executor, administrator or personal
representative of yours; and
	 
	 	24.10.2	 	you will immediately give us written notice of any intention to change or add to
your name or trading style or to enter into a partnership with any person or
incorporate your business and sign such documents, at your expense as we may require;
however we may within one month of such notice immediately end this Agreement or may
exercise our rights under this Agreement as if such intention were a Termination Event;
and
	 
	 	24.10.3	 	if you enter into a partnership or Incorporate In breach of condition 24.10.2 and we
accept Offers or act upon Notifications in respect of the Debts of such partnership or
corporation, we shall be entitled to treat them as subject to all the terms of this
Agreement; your partnership or corporation (as the case may be) shall be bound by this
Agreement; and this Agreement shall then be treated as amended mutatis mutandis.

	24.11	 	Whether you are a partnership or sole trader:

	 	24.11.1	 	we are authorised to pay all sums due to you under this Agreement to your bank
account detailed in the client particulars to the Receivables Finance Agreement, and
such authority shall remain in effect

25

 

	 	 	 	until we otherwise agree following your written request; and

	 	24.11.2	 	you must give us a signed copy of your annual profit and loss account and balance
sheet and any notes attached to them duly certified by a firm of Chartered or Certified
Accountants as soon as you have them, which must be no later than 8 months from the end
of each of your financial years.

	25.	 	SERVICE OF NOTICES AND PROCESS

	25.1	 	Except as otherwise stated, any written notice from us to you and any proceedings issued by
us requiring service on you may be given or served by delivering it at or posting it to;

	 	25.1.1	 	your address stated Iin the Client particulars Iin the Receivables Finance Agreement,
or such other address advised to and acknowledged by us as being effective for the
purposes of this condition; or
	 
	 	25.1.2	 	your registered office if you are incorporated; or
	 
	 	25.1.3	 	any address last known to us at which you carried on business; or
	 
	 	25.1.4	 	if you are an unlimited or limited partnership additionally by:

	 	(i)	 	delivering it at or posting it to the residential or business
address last known to us of any partner; or
	 
	 	(ii)	 	handing it to any partner or officer of yours; or

	 	25.1.5	 	if you are a sole trader additionally by:

	 	(i)	 	delivering it at or posting it to your residential address or
business address last known to us; or
	 
	 	(ii)	 	handing it to you personally

	25.2	 	However you are constituted it may also be handed to any officer of yours or be given by fax
or e-mail to your number or address last known to us for communication by such means or by
making the same available to you via our Internet Service oven if no access is made by you.
	 
	25.3	 	Any notice or process from us to you shall be considered delivered or served at the following
times:

	 	25.3.1	 	if delivered — at the time of delivery; or
	 
	 	25.3.2	 	if sent by post — 46 hours from the time of posting; or
	 
	 	25.3.3	 	if sent by fax, a-mall or electronic medium — at the time of transmission; or
	 
	 	25.3.4	 	if made available on our Internet Service — at the time it is made available; or
	 
	 	25.3.5	 	if handed over- at the time of handing over.

	25.4	 	Any notice in writing by you to us under this Agreement shall take effect at the time it is
received by us at our registered office.

	26.	 	INTERPRETATION OF THIS AGREEMENT

	26.1	 	Any reference to a statute includes any amendment or replacement or re-enactment or that
statute for the time being and any order and any subordinate legislation made under it.
	 
	26.2	 	The singular includes the plural and vice versa. Reference to any gender shall include any
other gender. References to a person or party shall be construed as references to any person,
firm, company, corporation, association, partnership, government, whether local,

26

 

	 	 	national or supra-national or other official body.

	26.3	 	The meaning of general words introduced by the word “other” is not to be limited by reference
to any preceding words.
	 
	26.4	 	Where the meaning of a word or expression in this Agreement has to be considered in relation
to any place outside England and Wales and such word or expression has no exact counterpart in
that place, it is to have the meaning of its closest equivalent as conclusively determined by
us.
	 
	26.5	 	The interpretation and construction of this Agreement shall not be affected by any headings,
which are for convenience only.
	 
	27.	 	GENERAL
	 
	27.1	 	The whole Agreement between you and us consists of only or the Receivables Finance Agreement
these Standard Terms and Conditions any security granted by you in our favour, any annexes or
schedules to any of them and any documents referred to in any of them as being expressly
incorporated into our relationship. References to “the Agreement” or “this Agreement” include
all such documents and all subsequent amendments, variations or extensions to any of them. If
there is any conflict between the terms of the Receivables Finance Agreement and these
Standard Terms and Conditions then those in the Receivables Finance Agreement are to be
prevail. All earlier agreements, prior negotiations, quotations, warranties, advertisements
and representations shall be of no effect unless expressly stated to be incorporated herein.
You have not relied upon any representation made to you by us or on our behalf or been influenced, induced or persuaded to enter
into this Agreement by any representation.
	 
	27.2	 	We may use all or any of the rights and remedies contained in this Agreement. They are not
exclusive of each other or of any rights or remedies given to us by law. If we choose not to
enforce or cannot enforce any term or condition, this will not affect our right to enforce the
rest of the Agreement or to enforce that term or condition at a later date. Also, such rights
and remedies shall not be affected if we compromise with any Customer.
	 
	27.3	 	This Agreement is considered by both you and us to be reasonable. Should any part of it be
valid only if some other part were deleted then the Agreement will apply as if it were so
deleted. The remainder of this Agreement will not be affected by such deletion.
	 
	27.4	 	Except where condition 5.1 (where we may change Limits at our complete discretion) any change
to the Agreement must be in writing and signed by or on behalf of the party to be bound and in
your case by a director, partner or proprietor as applicable.
	 
	28.	 	FOREIGN CURRENCIES
	 
	 	 	(Condition 28 only applies if you have our Foreign Currency Facility)
	 
	28.1	 	Where Debts are expressed in different currencies each currency must be separately Notified
to us.
	 
	28.2	 	If the Receivables Finance Agreement shows that in respect of Debts in Approved Currencies,
their Early Payments and the Purchase Price shall be payable by us only in Sterling. then;

	 	28.2.1	 	we will provisionally calculate the Sterling Purchase Price at the rate of exchange
quoted by our bankers for them to buy the

27

 

	 	 	 	currency of the Debt on the day that we debit the Notified Value to the Debtors
Control Account; and
	 
	 	28.2.2	 	on the date that any Remittance is credited to the Debtors Control Account, we will
adjust the Sterling Purchase Price using the rate of exchange quoted to us by our
bankers for them to buy the currency of the Remittance on the day of such debit; and

	28.3	 	Any part of Your Responsibilities to us in a foreign currency may be converted into Sterling.
We shall use the rate of exchange notified by our bakers for the date that any obligation
arises or make an estimate. Where we have to add together the balances on two or more
accounts recording transactions between you and us and such accounts are in different
currencies, we will use the prevailing spot rate as advised to us by our bankers.
	 
	28.4	 	Where any Remittance is received by or paid into our bank or a trust bank account which is
drawn on a bank outside the UK it will be sent by our bank or the trust bank either for
negotiation or collection but may be ignored when calculating your Availability until we
receive confirmation that such Remittance has been cleared for value;
	 
	28.5	 	We may, at any time, remove any currency from the definition of Approved Currencies by
written notice to you or by making the same available through our Internet Service even If no
enquiry be made. However this shall not affect Debts Notified to us prior to our despatch of
such notice or making the same available.
	 
	28.6	 	If we keep any account in a currency other than Sterling then any sum expressed in this
Agreement in Sterling shall be treated as if the words “or its currency equivalent” were also
added.
	 
	29.	 	DATA PROTECTION ACT 1998
	 
	 	 	(Applicable only if you are an unlimited partnership or a sole trader)
	 
	29.1	 	You consent to our storing and processing information about you on our computers, the
computers of any Group Company used by us or Group Companies and in any other way. You
confirm your awareness that this will be used by us for credit or financial assessments,
making payments, recovering monies, training purposes and preparing statistics. Information
about you will also be used so that we or Group Companies can develop and Improve our services
to you and other clients and to protect our interests (including establishing limits for the
benefit of other clients or obtaining settlement of Your Responsibility). We may also use
such information to prevent fraud and money laundering.
	 
	29.2	 	We may use some or all of the information held or to be held about you (from wherever
obtained) to decide whether to continue with this Agreement or to vary its terms.
	 
	29.3	 	We or Group Companies may make decisions about you solely using an automated decision making
process, such as credit scoring. However you will be told if a significant decision is made
only using such a process and you can then request a review of the decision, using other
means.
	 
	29.4	 	We may from time to time make searches of your record at our credit reference agency where
your record includes searches made and information given by other businesses; details of our
searches will be kept by such agency and will be available to other subscribers.

28

 

	29.5	 	We may at any time search your record with our fraud prevention agency but if at any time you
give us or procure the giving of false or inaccurate Information and we suspect fraud we will
record this; It is therefore Important that you always give us accurate Information; our fraud
prevention agency will use Information recorded for statistical analysis about fraud and will
also share it with us and other organisations who may use it to:

	 	29.5.1	 	help make decisions about credit and credit related services for you and members of
your household; and
	 
	 	29.5.2	 	help make decisions on Insurance proposals and Insurance claims, for you and members
of your household; and
	 
	 	29.5.3	 	trace debtors, recover debt, prevent fraud and to manage your accounts or Insurance
policies; and
	 
	 	29.5.4	 	check your identity to prevent money laundering, unless other satisfactory proof of
identity is furnished.

	29.6	 	We may give information about you. this Agreement any account maintained for you, your
performance under it, any debts you sell to us and any financial information about you to:

	 	29.6.1	 	any Group Company — so that they may make credit, financial or insurance decisions
and for statistical analysis;
	 
	 	29.6.2	 	any guarantor or indemnifier of your obligations to us — so they can assess their
obligations to us so we can enforce such obligations;
	 
	 	29.6.3	 	our or your bankers or any advisers or other persons acting on our or your behalf -
so they can carry out their services to us or to you;
	 
	 	29.6.4	 	any business providing a similar service to ours to whom you may wish to transfer -
to facilitate such a transfer;
	 
	 	29.6.5	 	any business to whom we may wish to transfer Debts — to facilitate such a transfer;
	 
	 	29.6.6	 	anyone else to whom we transfer our rights or duties under this Agreement — so they
can comply with or enforce this Agreement;
	 
	 	29.6.7	 	any Introducer of your business to us — to enable them better to serve you and in
connection with any commissions due; and
	 
	 	29.6.8	 	any company from whom we may obtain funding or with whom we may share the obligations
and risks hereunder — so they can comply with their agreement with us.
	 
	 	29.6.9	 	our or your insurers — so they can quote for and issue any policy or deal with any
claims;
	 
	 	29.6.10	 	any business carrying out services for us.

	29.7	 	Unless you object or have objected we and other Group Companies may also contact you (by
letter, telephone or email);

	 	29.7.1	 	about services and products which we or they Consider may be of interest to you;
and/or
	 
	 	29.7.2	 	to carry out market research about our or their services and products.

	29.8	 	For training and/or security purposes, your phone calls with us may be monitored and/or
recorded.
	 
	29.9	 	We may transfer information we hold about you to Group Companies or responsible third parties
in countries outside the European Economic Area

29

 

	 	 	for any of the purposes stated above. Whilst the level of data protection in such countries
may not be as high as in the United Kingdom we will use our best endeavours to protect your
information.

	29.10	 	If you are a sole trader or a partner in the Client and want to have details of those credit
reference agencies and other third parties referred to above from whom we obtain and to whom
we may give information about you please contact our Compliance Department on 01923 478100.
You have a legal right to these details. You can also obtain a copy of the information we
hold about you if an application is made in writing. However a fag will be payable.
	 
	30.	 	LAW AND JURISDICTION
	 
	30.1	 	Our relationship with you is to be governed and interpreted by English law. You submit to
the jurisdiction of the English courts. We may, however, use the courts of any other
jurisdiction.
	 
	31.	 	REGULATORY STATUS
	 
	31.1	 	Coface Receivables Finance Limited is an appointed representative of Coface UK which is
authorised in France by the ‘Commission de Controls des Assurances, des Mutuelles et des
Institutions de Prévoyance’ (CCAMIP) and regulated by the Financial Services Authority for the
conduct of UK business.
	 
	32.	 	ANNEXE OF DEFINITIONS

In this Agreement the following expressions have the meanings set out against each of them.

	 	 	“Accounting Records” Any of the following:

	 	1	 	accounting books, records and ledgers, financial and management accounts:
	 
	 	2	 	computer data or materials about your financial position, purchases and sales;
	 
	 	3	 	invoices, credit notes or documents evidencing entries in any of the above;
	 
	 	4	 	such other documents relating to Debts as we may specify.

	 	 	“Adjustments” Any entry on your Customers’ accounts or the Current account which changes the
Notified Value of Debts.
	 
	 	 	“Adverse Information” Any event of which you may become aware and which has led or may lead
to a deterioration of your Customer’s financial situation.
	 
	 	 	“Agreement” The Receivable Finance Agreement. these Standard Terms and Conditions, any
document evidencing or comprising security in our favour over your undertaking or assets,
any document referred to in any of them as being expressly incorporated into the
relationship between you and us, together with all amendments, variations, replacements,
additions at any time and from time to time applicable to any of them.
	 
	 	 	“Annual Review Fee” The fee so stated in the Receivables Finance agreement.
	 
	 	 	“Approved Countries” (Applicable only to our Export Debt facility) The countries, areas or
territories referred to in the Receivables Finance Agreement and such other countries or
territories as we may advise you.
	 
	 	 	“Approved Currencies” (Applicable only to our Foreign Currency Facility) The Euro, United
States Dollar and such other currencies as we advise you.

30

 

	 	 	“Approved Debt” Any Debt (Including a Protected Debt) which is not an Unapproved Debt.
	 
	 	 	“Arrangement Fee” The fee specified in the Receivables Finance Agreement to cover our
Initial costs of setting up your facility.
	 
	 	 	“Annual Review Fee” The fee stated in the Receivables Finance Agreement and which is payable
on each anniversary of the Commencement Date.
	 
	 	 	“Assign/Assignment” The transfer of ownership which includes in Scotland the giving of an
assignation.
	 
	 	 	“Associate”
In relation to the person or party named:

	 	1	 	Any Subsidiary or holding company as defined in sections 736 and 736A of the
Companies Acts 1985 to 1989 or Articles 4 or 4A of the Companies (No. 2) (Northern
Ireland) Order 1990; or
	 
	 	2	 	any other form of associate as defined in section 184 of the Consumer Credit
Act 1974; or
	 
	 	3	 	a director, partner, shareholder or employee or the spouse of any of them; or
	 
	 	4	 	any company in which such person or party has an interest other than purely for
investment purposes in a publicly quoted company; or
	 
	 	5	 	its parent undertaking as defined in section 258 of the Companies Act 1985.

	 	 	“Availability” The maximum amount that can be drawn from us (including by way of Early
Payments) which will be calculated by:

	 	(1)	 	taking the debit balance on the Debtors Control Account at the close of
business on the preceding Working Day and deducting the value of all Unapproved Debts
on such day; and
	 
	 	(2)	 	multiplying the resultant sum in (1) by the Early Payment Percentage stated in
the Receivables Finance Agreement; and
	 
	 	(3)	 	from the resultant sum in (2) deducting:

	 	•	 	any debit balance on the Current Account existing at the close of business
on the preceding Working Day; and
	 
	 	•	 	the amount of Your Responsibility; and
	 
	 	•	 	any special reserves created at our discretion.

	 	 	“BACS” The Bankers Automated Clearing System.
	 
	 	 	“Base Rate” The Sterling Base Rate per annum quoted, from time to time, by Barclays Bank Plc
or its successors or such other bank as we may tell you.
	 
	 	 	“Cash Against Documents Sale” A Sale Contract where the payment terms provide that you keep
title to the Goods until full payment has been made to the person responsible for handing
the documents of title over to the Customer.
	 
	 	 	“CHAPS” The Clearing Houses Automated Payments System.
	 
	 	 	“Commencement Date” The date so specified in the Receivables Finance Agreement.
	 
	 	 	“COFACE” Compagnie Francaise d’Assurance pour le Commerce Exterleur SA.
	 
	 	 	“Concentration Limit” The percentage shown in the Receivables Finance Agreement of the
balance of all Outstanding Notified Eligible Debts so that the Debts of any Debtor or

31

 

	 	 	Group Debtor in excess of such percentage become Unapproved Debts.
	 
	 	 	“Contracted Value” The amount of a Debt payable by a Customer in accordance with the Sale
Contract after taking into account any deduction, discount, claim or allowance.
	 
	 	 	“Credit Limit” (Applicable only to our non-recourse facility) The maximum value decided by
us and/or COFACE of the Debts due by a Customer which we are prepared to designate as
Protected Debts,
	 
	 	 	“Credit Note Listing” Your advice to us, in such way as we specify. including in a
Transmission, of credit notes which have not previously been advised to us together with
such reasons for the issue of a credit note as we may require.
	 
	 	 	“Current Account” An account operated by us to calculate the Early Payment Charge.
	 
	 	 	“Customer” Anyone incurring any indebtedness under a Sale Contract except a private
individual, buying Goods for a purpose other than his trade, business or profession.
	 
	 	 	“Data Acts” The Data Protection Acts of 1984 and 1998.
	 
	 	 	“Data Subjects” Has the same meaning as in the Data Acts.
	 
	 	 	“Debt” Any present future or contingent obligation of a Customer to make payment under a
Sale Contract together with its Related Rights or where the context allows a part of such
obligation or its Related Rights, including:

	 	(1)	 	the future right to recover sums due following the determination, assessment or
agreement of the amount of the obligation; and
	 
	 	(2)	 	VAT; and
	 
	 	(3)	 	all duties and charges.

	 	 	“Debtors Control Account” An account reflecting the prospective Purchase Price of all
Outstanding Debts.
	 
	 	 	“Default Funding Limit” The amount shown in the Receivables Finance Agreement or such other
amount as we may tell you up to which amount the Debts of each of your Customers shall be
treated as Approved Debts.
	 
	 	 	“Delivered” In relation to Goods:

	 	(1)	 	their removal from your control and from your premises, carriers and agents;
and
	 
	 	(2)	 	their physical delivery to the Customer or to the Customer’s order or carrier;
and
	 
	 	(3)	 	the assumption of risk therein by the Customer; and
	 
	 	(4)	 	complete performance of the Sale Contract.

	 	 	In relation to services; fully performed.
	 
	 	 	“Dispute/Disputed” Any disagreement regarding the amount or validity of a Debt or the
validity of your or our rights thereto, including any claim to reduce the amount payable
through a set-off or counterclaim.
	 
	 	 	“Early Payment” A part payment of the Purchase Price of a Debt earlier than the date for
payment of the Purchase Price under clause 4.1.
	 
	 	 	“Early Payment Charge” In consideration of an Early Payment a discount against the Purchase
Price calculated at the rate stated in the Receivables Finance Agreement upon each Early
Payment- In respect of Outstanding Debts (and for administrative convenience any amount
debited to the Current Account is to be treated as an Early Payment) which will accrue from
day to day on the debit balance of the Current Account and be debited monthly to that
Account.

32

 

	 	 	“Early Payment Percentage” The percentage initially referred to in the Receivables Finance
Agreement to be used in the calculation of your Availability.
	 
	 	 	“Equipment Defect” Any malfunction, failure, defect, downtime or unavailability of computer
equipment or software or any ancillary service or link including telephone or other
communication systems.
	 
	 	 	“Excess Facility Fee” Such fee as may be agreed either for (I) any service or facility
beyond that covered by this Agreement; or (II) allowing monies to be drawn or remaining
drawn in excess of your Availability or the Maximum Funds in use (if this is less than your
Availability).
	 
	 	 	“Export Debt” (Applicable only to our Export Debts facility) A Debt where the invoice is
addressed to a Customer in an Approved Country outside the United Kingdom.
	 
	 	 	“Export Debts Facility” Our extension of the Receivables Finance Agreement to Export debts.
	 
	 	 	“Extended Service Fee” For each Debt (except a Protected Debt) that remains outstanding
beyond the end of the Funding Period, the percentage thereof specified in the Receivables
Finance Agreement for each period of thirty days or part thereof until it is either
discharged, written off or reassigned to you.
	 
	 	 	“First Loss” (Applicable only to our non-recourse facility) The higher of either the amount
or the percentage shown in the Receivables Finance Agreement as the First Loss up to which
Debts whilst within a Credit Limit shall be Unprotected Debts.
	 
	 	 	“Force Majeure” Any circumstances outside our or a Customer’s reasonable control, including
an act of God, any exchange control, governmental or other official regulations or
requirements, the outbreak of war, nuclear explosion or contamination, any terrorist act,
revolution, civil insurrection, strike, lockout, industrial action or failure or
non-operation of postal, banking or communication services.
	 
	 	 	“Foreign Currency Facility” Our extension of the Receivables Finance Agreement to Approved
Currency Debts.
	 
	 	 	“Funding Limit” A monetary limit established by us from time to time in respect of each
Customer so that Debts in excess of such limit will be treated as Unapproved Debts.
	 
	 	 	“Funding Period” The period initially specified in the Receivables Finance Agreement, after
which an Approved Debt (unless it is a Protected Debt) will rank as an Unapproved Debt, but
which may be extended by us at our discretion.
	 
	 	 	“Goods” Any merchandise or services the subject of a Sale Contract.
	 
	 	 	“Group Company” Any company within the Natexis Group or the COFACE Group, including COFACE,
COFACE UK Limited, Cofacerating.UK Limited and COFACE Debt Purchase Limited.
	 
	 	 	“Group Customer” Any Customer where another Customer appears to us to be an Associate or
have a common director, partner, proprietor or shareholder, or is a Subsidiary of the other
or both are the Subsidiaries of another company or are otherwise affiliated or under common
control (whether directly or Indirectly).
	 
	 	 	“Initial Debt” A Debt whose invoice date exceeds sixty (60) days before the Commencement
Date (non-recourse only).

33

 

	 	 	“Insolvency Practitioner” (applicable only to our non-recourse facility) The person having
control over the Customer’s assets following the Customer’s Insolvency.
	 
	 	 	“Insolvent”

	 	(A)	 	In relation to you or any guarantor or Indemnifier of your obligations to us -
any of or the occurrence of any of the following:

	 	(1)	 	the issue of a petition or application, the calling of a
meeting or making proposals, for any of the matters listed in sub section ‘B’
below;
	 
	 	(2)	 	any part of your or their income or assets being subject to any
of the following:

	 	•	 	seizure, distress, diligence or lien;
	 
	 	•	 	enforcement of security rights;
	 
	 	•	 	execution of legal process;
	 
	 	•	 	sequestration;
	 
	 	•	 	an injunction or interdict;
	 
	 	•	 	attachment;
	 
	 	•	 	other legal process;

	 	(3)	 	the service of any statutory demand under the Insolvency Act
1966;
	 
	 	(4)	 	the entry or making of any judgment, order, decree or award
which shall remain unsatisfied or whose terms shall not be complied with for
seven (7) days (except pending any appeal);
	 
	 	(5)	 	an application for a garnishee order;
	 
	 	(6)	 	of payments of debts: giving notice of the intended suspension
	 
	 	(7)	 	becoming apparently insolvent;
	 
	 	(8)	 	an application for a Moratorium under the Insolvency Act 2000;
	 
	 	and the taking of any steps for the commencement of any proceedings in respect of
any of the above matters.

	 	(B)	 	In relation to a Customer — any of the following;

	 	(1)	 	In relation to an individual bankruptcy, apparent insolvency or
sequestration, or the granting of a trust dead for the benefit of creditors;
	 
	 	(2)	 	In relation to a company — a resolution for voluntary winding
up by reason of insolvency, a winding up order, an administrative order, the
appointment of an administrator under the Insolvency Act 1986 or the
appointment of a provisional liquidator or receiver (whether in or out of
court) or an administrative receiver of any of its assets or income or a
judicial factor;
	 
	 	(3)	 	In relation to a partnership — its bankruptcy, apparent
insolvency or sequestration or its winding up or the appointment to it of an
administrator under the Insolvency Act 1986 or

34

 

	 	 	 	the appointment of a judicial factor or an order for the bankruptcy or
sequestration of any partner or the grant by a partner of a trust deed for
creditors;

	 	(4)	 	In relation to any person — entry into a voluntary arrangement
under the Insolvency Act 1966 or a valid assignment or composition or other
arrangement for the benefit of creditors generally;
	 
	 	(5)	 	such condition as are by any other system of law to that person
to achieve substantially the same effect as items (1) to (4) in this subsection
(B).

	 	 	“Insolvency” shall be construed accordingly.
	 
	 	 	“Internet Service” A computerised data enquiry and transmission system between you and us as
updated from time to time.
	 
	 	 	“Limits” Any percentage, limit, period, level, date, figure, threshold, amount or balance
referred to in this Agreement and, without affecting the generality of this list, including:

	 	•	 	First Loss;
	 
	 	•	 	Recourse Percentage
	 
	 	•	 	Early Payment Percentage
	 
	 	•	 	Maximum Funds in Use;
	 
	 	•	 	Funding Period;
	 
	 	•	 	Funding Limit;
	 
	 	•	 	Default Funding Limit
	 
	 	•	 	Concentration Limit;
	 
	 	•	 	Credit Limits;
	 
	 	•	 	Shortfall Amount

	 	 	(but excluding any fee or charge referred to in the Receivables Finance Agreement).
	 
	 	 	“Maximum Funds In Use” Either the amount (if any) referred to in the Sales Finance Agreement
or such other amount as we tell you from time to time.
	 
	 	 	“Minimum Service Fee” The total of Service Fees specified in the Receivables Finance
Agreement and in calculating whether you have paid the Minimum Service Fees then any Service
Fees in respect of Debts in existence on the Commencement Date and all Early Payment
Charges, all Extended Service Fees and all other fees and charges are to be disregarded.
	 
	 	 	“Non-Notifiable Debt” A Debt which must not be Notified to us until we tell you, including
specifically those referred to in condition 16.1.7.
	 
	 	 	“Notification” Your notification to us, in such way as we may specify, including In a
Transmission, of Debts and credit notes which have not previously been Notified to us
together with such evidence of the performance of the Sale Contract or reasons for a credit
note as we may specify (Not applicable to clients who are unlimited partnerships or sole
traders).
	 
	 	 	“Notified/Notify/Notifying” Inclusion of a Debt in an Offer or Notification or including a
Credit Note in a Credit Note Listing.
	 
	 	 	“Notified Value” The amount of the Debt as shown in an Offer, Notification or Client Advice.
	 
	 	 	“Offer” An unconditional offer to sell us a Debt with full title guarantee to be made in
such form and with such evidence of the performance of the Sale Contract as we may specify.
(Applicable only to unlimited partnerships and sole traders).
	 
	 	 	“Outstanding” A Debt for which we have not received payment from the Customer, you or a
third party,

35

 

	 	 	“Overdue Account” Where a Debt has not been paid on the data, in the currency and in the
place specified in the Sale Contract.
	 
	 	 	“Protected Debt” (Applicable only to our non-recourse facility) A Debt (except an Initial
Debt) within a Credit Limit in respect of which:

	 	1	 	you are not in breach of any warranty or undertaking to us;
	 
	 	2	 	the value does not comprise discount wrongly claimed by the Customer: and
	 
	 	3	 	there is no dispute.

	 	 	“Purchase Price” The price payable by us for a Debt calculated in accordance with conditions 4 and (If you have our non-recourse facility) conditions 8.1 and 8.2.
	 
	 	 	“Receivables Finance Agreement” The document signed by or on behalf of you and us, setting
out other agreed matters together with additional details of matters referred to in these
conditions.
	 
	 	 	“Recoveries” Any amount received by you from the Customer or any third party in connection
with the Debt, whether before or after we pay you the Purchase Price including:

	 	•	 	any interest on late payment;
	 
	 	•	 	realisations of any security;
	 
	 	•	 	the value of any Credit Note raised;
	 
	 	•	 	any value arising from the exercise of any set-off;
	 
	 	•	 	any proceeds of Goods which you have or could have been recovered and kept; with the
value of such proceeds being the actual value obtained from recovered Goods and where
you could have recovered Goods or kept the proceeds but did not do so then the value
will be treated as twenty five per cent (25%) of their Contracted Value

	 	 	“Related Rights” Any of the following in relation to any Debt or Returned Goods:

	 	(1)	 	all your rights by law as an unpaid vendor or under the Sale Contract but
without any obligation on us to complete the Sale Contract;
	 
	 	(2)	 	all evidence of the Sale Contract or its performance or any disputes arising;
	 
	 	(3)	 	documents of title to goods, warehouse keepers receipts, bills of lading,
shipping documents, airway bills, certificates of origin, customs forms, commercial and
consular Invoices, Insurance documents or similar;
	 
	 	(4)	 	the benefit of all insurances Including credit insurances;
	 
	 	(5)	 	all Remittances, securities, bonds, guarantees and indemnities;
	 
	 	(8)	 	all Accounting Records to do with the Debt:
	 
	 	(7)	 	the right to call for the ownership of all Returned Goods:
	 
	 	(8)	 	Interest.

	 	 	“Remittances” Cash, cheques, bills of exchange, negotiable and non-negotiable instruments,
letters of credit, orders, drafts, promissory notes, electronic payments and any other

36

 

	 	 	instruments, methods or forms of payment or engagement received by us, you or your agents
towards a Debt.
	 
	 	 	“Repurchase” Our right to require you to buy back, and in respect of a Scottish Debt to take
a reassignment from us of, an Outstanding Debt at a price equivalent to the lesser of its
Notified Value and all other sums due in respect of it.
	 
	 	 	“Returned Goods” Any Goods relating to or purporting to comply with a Sale Contract which
any Customer shall for any reason:

	 	(1)	 	reject or give notice of rejection; or
	 
	 	(2)	 	return or attempt to or wish to return to you or us; or
	 
	 	(3)	 	which you or we recover from a Customer.

	 	 	“Sale Contract” A contract in any form. Including a purchase order, between you and a
Customer for the sale or hire of Goods or the provision of services or work done and
materials supplied against payment of a price.
	 
	 	 	“Scottish Debt” Debts arising under Sale Contracts where either those Sale Contracts are
governed by Scots law or the Invoices for the Debts are addressed to Customers in Scotland.
	 
	 	 	“Service Fee” A fee (including any Minimum Service Fee) as specified in the Receivables
Finance Agreement for:

	 	(1)	 	the provision of our Internet Service
	 
	 	(2)	 	the provision of a monthly statement and management information.
and in factoring
	 
	 	(3)	 	the normal operation of your Customers’ accounts including:

	 	•	 	sales ledger management
	 
	 	•	 	arranging collections
	 
	 	•	 	cash reconciliations
	 
	 	•	 	assisting dispute resolutions

	 	 	and under Non-Recourse Agreement

	 	(4)	 	accepting the obligation to pay you the Purchase Price of Protected Debts in
certain circumstances.

	 	 	“Software” The software provided by us to enable you to use our Internet Service.
	 
	 	 	“Sterling” The lawful currency from time to time of the UK;
	 
	 	 	“Subsidiary”

	 	(1)	 	A subsidiary within the meaning of section 736 of the Companies Act 1985; and
	 
	 	(2)	 	unless the context otherwise requires, a subsidiary undertaking within the
meaning of sections 258-260 of the Companies Act 1985 as substituted by section 21 of
the Companies Act 1989.

	 	 	“Tariff Fees” any fees or charges payable by you to us referred to in the Receivables
Financing Agreement (other than those listed in Conditions 11.1.1 to 11.1.6 of these
Standard Terms and Conditions.
	 
	 	 	“Termination Event” Any event listed in condition 20.1 or as otherwise specified by us as
such an event.
	 
	 	 	“Transmission” Any item of information transmitted between you and us using the Internet
Service.
	 
	 	 	“Transmission Defect” Any programming error, corruption or other defect or any delay or
failure or breach of security in a Transmission.
	 
	 	 	“Transmissions Log” A record maintained by
us of Transmissions.
	 
	 	 	“Unapproved Debt” A Debt which is or shall be:

	 	(1)	 	either Disputed by the Customer for any reason including the Customer’s
liability to pay us or to pay it by its due date for payment or

37

 

	 	 	 	subject to a Dispute between us and you for any reason:

	 	(2)	 	the subject of a breach of any undertaking or warranty given to us about it or
any other obligations of yours to us arising from It; or
	 
	 	(3)	 	owing by any Customer in excess of the Concentration Limit; or
	 
	 	(4)	 	a Non-Notifiable Debt; or
	 
	 	(5)	 	due by a Customer who also supplies goods or services to you; or
	 
	 	(6)	 	specified by us at any other time; or
	 
	 	(7)	 	due by Customer where five (5%) per cent or more of its Debts remain
Outstanding beyond end of their Funding Periods.
	 
	 	(6)	 	in excess of the Customer’s Funding Limit; or
	 
	 	(9)	 	owing by a Customer who is Insolvent (except whilst the Debt is an Protected
Debt under our non-recourse facility); or
	 
	 	(10)	 	(applicable only to our recourse facility) which remains Outstanding beyond the
end of the Funding Period or in respect of which we have threatened legal proceedings.

	 	 	“Uncollectable” (Applicable only to our non-recourse facility) Outstanding because of the
Customer’s financial inability to pay as conclusively determined by us.
	 
	 	 	“Unprotected Debt” (Applicable only to our non-recourse facility) A Debt which is not an
Protected Debt including all Debts on termination of this Agreement and all Debts within
categories (1) to (8) of the definition of “Unapproved Debt”.
	 
	 	 	“United Kingdom/U.K.,” The United Kingdom of Great Britain and Northern Ireland, the Channel
Islands and the Isle of Man.
	 
	 	 	“U.K. Debt” A Debt evidenced by an Invoice addressed to a Customer in the United Kingdom.
	 
	 	 	“VAT” Value Added Tax.
	 
	 	 	“Working Day” A day when our offices and our bank are both normally open for the conduct of
all normal business.
	 
	 	 	“Your Responsibility” Monies payable or possibly payable to us in the future including
liability:

	 	(1)	 	arising from debts transferred to us by any of your suppliers; or
	 
	 	(2)	 	as a guarantor or indemnifier of another client of ours; or
	 
	 	(3)	 	for the breach of your obligations to us; or
	 
	 	(4)	 	for legal costs and expenses;
	 
	 	and our reasonable estimate of such monies where the amount cannot be immediately found out.

38

 

The same persons who signed the Receivables Finance Agreement between you:

Corgi Classics Ltd 

and us, Coface Receivables Finance Limited, have also signed below in order to identify the
attached conditions which are Incorporated into the Agreement.

	 	 	 
	Corgi Classics Ltd
	 	 
	 
	 	 
	 
	 	 
	Signature 1: 

	 	Date: 

	 
	 	 
	Full name
	 	 
	(please print):  

	 	Position: 

	 
	 	 
	 
	 	 
	Signature 2: 

	 	Date: 

	 
	 	 
	Full name
	 	 
	(please print): 

	 	Position: 

	 
	 	 
	 
	 	 
	COFACE RECEIVABLES FINANCE LIMITED
	 
	 	 
	 
	 	 
	Signature 1: 

	 	Date: 

	 
	 	 
	Full name
	 	 
	(please print): 

	 	Position: 

 

 

	3.	 	Facility Particulars

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	3.1	 	 	The Early Payment Percentage is (definition of “Availability”):
	 	 	75*% 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	3.2	 	 	The Maximum Funds in Use must not exceed (condition 10.8):
	 		£5,000,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	3.3	 	 	The Funding Period from the invoice date of a Debt Is:
(conditions 11.5 and 11.8.7):
	 	 	123 Days	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	3.4	 	 	The Early Payment Charge Is at the following rate per annum
above Base Rate (conditions 4.1.3, 10.6. 11.1.2 and 11.2):
	 	 	1.75%	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	but with a minimum Early Payment Charge of:
	 	 	3%	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	3.5	 	 	The Service Fee is at the following percentage of the Notified
Value of each Debt (conditions 4.1,11.1,11.3):
	 	 	0%	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	but with a minimum Service Fee in each twelve month period
commencing on the first day of the month following the
Commencement Date and each anniversary thereof of:
	 		£12,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	3.6	 	 	The Extended Service Fee is at the following percentage of the
Notified Value of each Debt for each 30 day period or part
thereof after the end of the Funding Period that the Debt
remains outstanding (condition 11.5):
	 	 	0%	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	3.7	 	 	The Arrangement Fee payable on signature of this Agreement Is
(condition 11.1.1):
	 		£1,000	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	3.8	 	 	The Annual Review Fee payable on each anniversary of the
Commencement Date after each month end is (condition 11.1.5):
	 		£0	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	3.9	 	 	The Concentration Limit is (definitions of “Concentration
Limit” and “Unapproved Debt”):
	 	 	30%	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	3.10	 	 	The Shortfall Amount is (condition 14.1.5):
	 		£25	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	3.11	 	 	The Monthly Returns date after month end is (condition 19.5):
	 	 	10 Days
	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	3.12	 	 	The Default Funding Limit per Customer Is (condition 5.1):
	 		£10,000	 

 

			
	*	 	It has been agreed that the Early Payment Percentage will be increased to 85% for a period of
two months from commencement

	4.	 	The additional conditions to be completed before we will make Early Payments are:

 

 

	 	•	 	Our obtaining confirmation that there are no outstanding judgements registered
against any Director or Shareholder
	 
	 	•	 	We are to be noted as loss payee on the credit inurance policy that you hold with us
	 
	 	•	 	Satisfactory completion of Anti-Money Laundering processes
	 
	 	•	 	Receipt of account to year end 31.3.2006

	5.	 	Additional Conditions applying at all times

	 	•	 	You will supply us with a Sales Ledger Reconciliation, aged debtors, aged creditors
and monthly management accounts by the 10th of the following month
	 
	 	•	 	All monies received from your customers to be paid into a trust account set up by
and controlled by us
	 
	 	•	 	Copy invoices, orders and delivery notes will be held by you to our order and copies
provided to us at our request
	 
	 	•	 	Full customer trading styles and addresses and also payment terms are shown on all
invoices
	 
	 	•	 	Initially we will require your account to be subject to quarterly audits, we will
bear the cost of one audit per annum. Audits will be dispersed to your account subject
to the rates as shown on our standard tariff

	6.	 	Your account will be subject to our Standard Tariff Fees as varied from time to time. Our
current Tariff Fees are attached.exv4w21

 

EXHIBIT
4.21

ALL ASSETS DEBENTURE

GIVEN BY

Corgi Classics Ltd

IN FAVOUR OF

COFACE RECEIVABLES FINANCE LIMITED

Note to HM Land Registry: Clauses 12.2 and 12.4 of this fixed and floating charge contain a consent
for the entry of a restriction against each affected registered title.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	1.

	 	COVENANT TO PAY
	 	 	1	 
	 
	 	 	 	 	 	 
	2.

	 	CHARGING PROVISIONS
	 	 	1	 
	 
	 	 	 	 	 	 
	3.

	 	COMPANY’S OBLIGATIONS
	 	 	4	 
	 
	 	 	 	 	 	 
	4.

	 	ADDITIONAL OBLIGATIONS OF THE COMPANY
	 	 	8	 
	 
	 	 	 	 	 	 
	5.

	 	FURTHER ASSISTANCE, POWER OF ATTORNEY AND RIGHTS IN
RELATION TO SECURITIES
	 	 	11	 
	 
	 	 	 	 	 	 
	6.

	 	ACTS OF DEFAULT
	 	 	13	 
	 
	 	 	 	 	 	 
	7.

	 	POWER OF POSSESSION AND SALE
	 	 	17	 
	 
	 	 	 	 	 	 
	8.

	 	APPOINTMENT OF RECEIVER AND HIS POWERS
	 	 	17	 
	 
	 	 	 	 	 	 
	9.

	 	ADDITIONAL POWERS
	 	 	21	 
	 
	 	 	 	 	 	 
	10.

	 	APPLICATION OF MONIES
	 	 	22	 
	 
	 	 	 	 	 	 
	11.

	 	PROTECTION OF THIRD PARTIES
	 	 	23	 
	 
	 	 	 	 	 	 
	12.

	 	H.M. LAND REGISTRY
	 	 	24	 
	 
	 	 	 	 	 	 
	13.

	 	CONTINUING AND ADDITIONAL SECURITY
	 	 	25	 
	 
	 	 	 	 	 	 
	14.

	 	INDEMNITIES
	 	 	25	 
	 
	 	 	 	 	 	 
	15.

	 	DISCHARGE
	 	 	27	 
	 
	 	 	 	 	 	 
	16.

	 	SERVICE OF NOTICES AND PROCESS
	 	 	27	 
	 
	 	 	 	 	 	 
	17.

	 	JURISDICTION
	 	 	28	 
	 
	 	 	 	 	 	 
	18.

	 	REPRESENTATIONS, WARRANTIES AND UNDERTAKING Y COMPANY
	 	 	28	 
	 
	 	 	 	 	 	 
	19.

	 	TRANSFERS AND DISCLOSURES
	 	 	29	 
	 
	 	 	 	 	 	 
	20.

	 	MiSCELLANEOUS
	 	 	29	 
	 
	 	 	 	 	 	 
	21.

	 	DEFINITIONS AND INTERPRETATION
	 	 	31	 
	 
	 	 	 	 	 	 
	SCHEDULES	 	 	 	 
	EXECUTION	 	 	 	 

-i- 

 

THIS CHARGE is made on the date shown immediately after the Sixth Schedule hereto BY THE PARTY
DESCRIBED IN THE FIRST SCHEDULE HERETO (the “Company”) of the one part in favour of COFACE
RECEIVABLES FINANCE LIMITED registered in England and Wales with number 04933860 (the “Security
Holder”) of the other part.

	1.	 	COVENANT TO PAY

	1.1	 	The Company agrees with the Security Holder:

	 	1.1.1	 	to pay the Secured Monies, which are now or shall be due, owing and payable to
the Security Holder, in accordance with the terms of the transaction, security,
instrument or other obligation giving rise to the Company’s Indebtedness to the
Security Holder, including those under the Financing Agreement; and
	 
	 	1.1.2	 	to discharge all obligations and liabilities, whether actual, accruing or
contingent, now or in future due, owing or incurred to the Security Holder by the
Company, in whatever currency denominated and on whatever account and howsoever
arising, whether alone or jointly and in whatever style, name or form and whether as
principal or surety.

	2.	 	CHARGING PROVISIONS

	2.1	 	As security for the discharge of the Secured Liabilities, the Company, with full title
guarantee, now gives the following mortgages and charges in favour of the Security Holder,
namely:

	 	2.1.1	 	a fixed charge by way of legal mortgage on all freehold and leasehold property
owned by the Company, including but not limited to land of which the Company is
registered as proprietor at H.M. Land Registry (details of which are set out in the
Second Schedule to this deed);
	 
	 	2.1.2	 	a fixed charge on all of the following assets, whether now or in future
belonging to the Company or to which the Company may be entitled:

	 	(i)	 	the freehold and leasehold properties of
the Company not effectively mortgaged under clause 2.1.1 including
such as may hereafter be acquired;
	 
	 	(ii)	 	all fixtures and fittings (including
trade fixtures and fittings) and fixed plant and machinery in, on or
attached to the property subject to the legal mortgage under clause
2.1.1 and all spare parts, replacements, modifications and additions
for or to the same and the benefit of all contracts and warranties
relating to the same;
	 
	 	(iii)	 	any other freehold and leasehold
property which the Company shall own, together with all fixtures and
fittings (including 

 

 

	 	 	 	trade fixtures and fittings) and fixed plant and
machinery in, on or attached to such property and all spare parts,
replacements, modifications and additions for or to the same and the
benefit of all contracts and warranties relating to the same;
	 
	 	(iv)	 	all plant and machinery and other
equipment listed in the Fourth Schedule and all spare parts,
replacements, modifications and additions for or to the same and the
benefit of all contracts and warranties relating to the same;
	 
	 	(v)	 	all fixed plant and machinery, including
all spare parts, replacements, modifications and additions for or to
the same, not listed in the Fourth Schedule and the benefit of all
contracts and warranties relating to the same;
	 
	 	(vi)	 	all goodwill, unpaid and/or uncalled
capital for the time being of the Company;
	 
	 	(vii)	 	all the Company’s Intellectual Property;
	 
	 	(viii)	 	all the Company’s Securities;
	 
	 	(ix)	 	all loan capital, indebtedness or
liabilities on any account or in any manner owing to the Company
from any Subsidiary of the Company or from any other Group Company;
	 
	 	(x)	 	all amounts realised by an administrator
or liquidator of the Company, upon enforcement or execution of any
order of the Court under Part IV of the Insolvency Act 1986;
	 
	 	(xi)	 	all documents of title to any item of
property which at any time and for any purpose has been or may be
deposited with the Security Holder;
	 
	 	(xii)	 	the assets mentioned in the title
documents referred to in the immediately preceding sub-paragraph;
	 
	 	(xiii)	 	all monies from time to time payable to the Company under or
pursuant to the insurances, including without limitation the right
to the refund of any premiums;
	 
	 	(xiv)	 	all the Company’s Fixed Charge Debts;
	 
	 	(xv)	 	all claims and causes of action,
including (without limitation) claims for breach of duty or
restitution;

	 	2.1.3	 	a floating charge on the remainder of the undertaking, property rights and
assets of the Company whatsoever and wheresoever, both present and future, 

2

 

	 	 	 	not subject to the above charges and any Items not effectively charged as fixed charges under
clause 2.1.1 and 2.1.2 above including all the Company’s Floating Charge Debts present
and future.

	2.2	 	If the Security Holder shall enforce any of the above charges then the floating charges
created by this deed shall immediately and without further formality become fixed charges.
However, the Security Holder may also at any time give written notice to the Company
immediately converting all or any of the floating charges into fixed charges in respect of the
whole or any part of the Mortgaged Property subject to such floating charges except where any
Moratorium is applied for or in force, when no notice may be given until any application is
rejected or upon the expiry of such Moratorium. Such written notice may contain all such
instructions to the Company as are necessary to ensure the fixed nature of such charges.
	 
	2.3	 	This deed shall take effect subject to the provisions of the prior Encumbrances over the
Company’s assets detailed in the Third Schedule, except as otherwise varied by any separate
deed.
	 
	2.4	 	The floating charges created by this deed shall, unless otherwise agreed by the Security
Holder in writing, automatically and without notice be converted into fixed charges:

	 	2.4.1	 	as to such part of the Mortgaged Property as may become subject to any
Encumbrance (unless either detailed in the Third Schedule or permitted in writing by
the Security Holder) or to any disposition or dealing prohibited by this deed (unless
permitted in writing by the Security Holder) immediately preceding such part becoming
subject thereto; or
	 
	 	2.4.2	 	as to such part of the Mortgaged Property as may become subject to seizure or
sale under any form of distress sequestration, diligence, or execution or other legal
process thereon being threatened immediately preceding such part becoming subject
thereto; or
	 
	 	2.4.3	 	upon the Company becoming Insolvent, (unless it is an event in sub-clauses
(7)(10)(11) and (12) of the definition of Insolvent).

This clause 2.4 shall be ineffective whilst any Moratorium is applied for or in
force until the application is rejected or the Moratorium expires. Following such
conversion into a fixed charge the Security Holder may give such further
instructions as are necessary to ensure the fixed nature of the charges.

	2.5	 	Without affecting the fixed nature of the charges hereby created (or intended to be created)
the Security Holder, until notice to the contrary be given to the Company, hereby consents to
the Company disposing of any part of a fixture, fitting, plant or machinery which is worn out,
inoperative or in need of replacement for the continued working of the relevant fixture,
fitting, plant or machinery provided that (i) the same be forthwith replaced by a spare or
replacement part enabling such continued working; (ii) that any monies obtained from the scrap
or salvage value of such item be forthwith paid into a bank account under the Security
Holder’s control.

3

 

	2.6	 	Paragraph 14 of Schedule B1 to the Insolvency Act 1986 (as introduced by the Enterprise Act
2002) applies to all the floating charges hereby created and the floating charges hereby
created are qualifying charges for the purposes of the said paragraph 14. The Security Holder
may appoint an Administrator of the Company at any time after an Act of Default or other event
as a result of which this security shall become enforceable. Such appointment shall be for
the purposes and upon the terms contained in the said Schedule B1 to the Insolvency Act 1986.
	 
	3.	 	COMPANY’S OBLIGATIONS
	 
	3.1	 	The Company agrees with the Security Holder that whilst this security exists, it:

	 	3.1.1	 	will not sell, transfer, lease, licence, assign or dispose of or otherwise
deal with the Mortgaged Property subject to the floating charges herein except by way
of sale at full value in the ordinary course of its business now being carried on and
for the avoidance of doubt the sale, discounting, factoring, assignment or other
dealing with its Floating Charge Debts is not in the ordinary course of its business;
	 
	 	3.1.2	 	except as permitted by clause 2.5 will not sell, transfer, lease, license,
assign, dispose of or otherwise deal with of any of the Mortgaged Property subject to
the fixed charges herein without the prior written consent of the Security Holder which
may be applied for in the form set out in part 1 of the Fifth Schedule and which the
Security Holder may consent to in the form set out in part 2 of the Fifth Schedule;
	 
	 	3.1.3	 	will not sell, transfer, lease, licence, assign, dispose of or otherwise deal
with any part of its undertaking or goodwill (including diverting or encouraging the
diversion of its sales via any Group Company);
	 
	 	3.1.4	 	affix to the fixed plant and machinery subject to the fixed charge herein a
fireproof notice stating that such plant or machinery is charged to the Security Holder
by way of fixed charge;
	 
	 	3.1.5	 	without affecting or limiting the generality of any other provisions of this
deed, will not without the prior written consent of the Security Holder dispose or part
with possession of the whole or any part of any of the Mortgaged Property or permit any
person:

	 	(i)	 	to be registered (jointly whether with
the Company or otherwise) as a proprietor under the Land
Registration Acts of any of the Mortgaged Property nor create or
permit to arise any overriding interest (within the definition in
those Acts) affecting the same; or
	 
	 	(ii)	 	to become entitled to any right,
easement, covenant, interest, encumbrance or other title which might
adversely affect the use, value or marketability of any of the
Mortgaged Property;

4

 

	 	3.1.6	 	will not create or attempt to create or permit to subsist in favour of any
person other than the Security Holder any Encumbrance on or affecting the Mortgaged
Property or any part thereof except a lien over property (other than land) arising by
operation of law in the ordinary course of trading;
	 
	 	3.1.7	 	will pay any monies received from the disposition, leasing or other dealing
with any part of the Mortgaged Property subject to Fixed Charges into such bank account
under the control of the Security Holder as the Security Holder may specify or as
otherwise directed by the Security Holder;
	 
	 	3.1.8	 	will authorise its bankers from time to time to provide copy statements and
full particulars of all the Company’s accounts and facilities with them whenever
requested by the Security Holder;
	 
	 	3.1.9	 	will provide such financial and other information as the Security Holder may
reasonably request regarding the Company’s and its Subsidiary’s assets, affairs,
business and financial condition;
	 
	 	3.1.10	 	will, immediately it becomes aware, provide the Security Holder with details of any
present or future litigation, arbitration or administrative proceedings in progress,
pending or, to the knowledge of the Company, threatened against it which might have a
material adverse effect on the Company’s ability to perform its obligations under this
deed;
	 
	 	3.1.11	 	will grant the Security Holder or its solicitors on request all reasonable facilities
to enable it or them to carry out, at the Company’s expense, such investigation of
title to the Mortgaged Property and enquiries about it as would be carried out by a
prudent mortgagee;
	 
	 	3.1.12	 	will use its best endeavours to detect any infringement of its rights to the
Intellectual Property; if aware of such Infringement, will immediately give the
Security Holder all information available to it about such infringement and will
commence and diligently prosecute (or permit the Security Holder in the name but at the
expense of the Company to commence and prosecute) all proceedings necessary to prevent
such infringement or to recover damages;
	 
	 	3.1.13	 	will do everything needed to ensure that the Intellectual Property, to which the
Company is or may become entitled, is valid and subsisting and remains owned by the
Company and will take all such actions and proceedings as are necessary to protect such
Intellectual Property and will ensure that any rights which the Company has in respect
of the Intellectual Property of third parties are preserved; if any such Intellectual
Property shall at any time lapse or become void, will do everything necessary to
restore such Intellectual Property to the Company;
	 
	 	3.1.14	 	will comply in all material respects with all laws concerning the Mortgaged Property
and every notice, order, direction, licence, consent, approval,

5

 

	 	 	 	permission lawfully made or given in respect of it and likewise with the
requirements of any competent authority;

	 	3.1.15	 	will duly and promptly pay all monies which may become due in respect of any of the
Securities; (it being acknowledged by the Company that the Security Holder shall not
incur any liability whatsoever for such monies);
	 
	 	3.1.16	 	will deposit with the Security Holder, forthwith upon the execution of this deed, all
certificates or documents of title in respect of the Securities, together as
appropriate with duly executed instruments of transfer or assignments thereof in blank;
(it being acknowledged that the Security Holder shall at any time be entitled to have
any of the Securities registered either in the name of the Security Holder or nominees
selected by the Security Holder);
	 
	 	3.1.17	 	will ensure the delivery or payment to the Security Holder of all Securities or the
certificates or other documents of title to or representing the same, together with
executed instruments of transfer or assignments in blank; (it being acknowledged that
the Security Holder may arrange for any of them to be registered either in the name of
the Security Holder or nominees or agents selected by the Security Holder) and will, if
so requested by the Security Holder, transfer all or any of the securities to such
nominees or agents as the Security Holder may select;
	 
	 	3.1.18	 	will ensure its centre of main interest, and that of each of its Subsidiaries, (for
the purposes of Council Regulation (EC) No 1346/2000 of 29 May 2000 on Insolvency
Proceedings) including, but not limited to, its headquarter functions is located at all
times within England and Wales and will not move such centres of main interest to any
other jurisdiction without the prior written consent of the Security Holder, which the
Security Holder may withhold at the Security Holder’s sole discretion, or otherwise
diminish in or divert from England and Wales the substantive management and control of
its business or that of any Subsidiary or any of the Mortgaged Property;
	 
	 	3.1.19	 	will deal with the Fixed Charge Debts and their Related Rights as if they were Debts
and their Related Rights purchased by the Security Holder under the Financing Agreement
and in particular will not deal with the same or bank any Remittances in respect of
them except in accordance with the Financing Agreement;
	 
	 	3.1.20	 	will execute an assignment of any of the Company’s Fixed Charge Debts in favour of
the Security Holder in such form as the Security Holder requires, whenever the Security
Holder so demands and will likewise execute an assignment of the Company’s Floating
Charge Debts at any time following the floating charge thereon becoming a fixed charge;
	 
	 	3.1.21	 	will only deal with the Company’s Floating Charge Debts by way of getting and
realising the same in the ordinary course of its business but factoring,

6

 

	 	 	 	discounting or assigning the same is not to be treated as in the ordinary course
of business;

	 	3.1.22	 	until any contrary direction, demand or requirement by the Security Holder under this
deed will only pay Remittances, which the Company may receive in respect of the
Company’s Floating Charge Debts, into a bank account under the Company’s control;
	 
	 	3.1.23	 	following the charge over the Company’s Floating Charge Debts becoming a fixed charge
will, as directed by the Security Holder, open such bank accounts in the name of the
Company with such mandates as the Security Holder may specify; (such bank accounts can
include separate designated accounts or trust accounts or accounts where the officers
of the Security Holder are irrevocably appointed as the only persons able to operate
the accounts) and will thereafter pay into such bank accounts all Remittances which the
Company may receive in respect of its Floating Charge Debts;
	 
	 	3.1.24	 	following the charge over the Company’s Floating Charge Debts becoming a fixed
charge, will, as directed by the Security Holder, give the following instructions:

	 	(i)	 	to the debtors to pay Remittances in
respect of the Company’s Floating Charge Debts direct into such bank
account under the control of the Security Holder (and whether in the
name of the Company or the Security Holder) as the Security Holder
may specify and whether or not this is an account opened under the
terms hereof; and/or
	 
	 	(ii)	 	to debtors to pay Remittances in respect
of the Company’s Floating Charge Debts to such address, or post
office box under the control of the Security Holder or to such
person employed by or only accepting instructions from the Security
Holder as the Security Holder may specify; and/or
	 
	 	(iii)	 	to the Company’s bankers that all
Remittances in respect of Floating Charge Debts deposited by any
means into any of the Company’s bank accounts shall forthwith be
transferred to such bank account as the Security Holder may specify
(whether the specified bank account is in the name of the Company or
the Security Holder and whether or not it is an account opened under
the terms thereof) but in each case without affecting the right of
the Security Holder under this deed to give other directions;

	 	3.1.25	 	following the charge over the Company’s Floating Charge Debts becoming a fixed
charge, will only pay or otherwise deal with the monies in any of the Company’s bank
accounts in accordance with the written directions from time

7

 

	 	 	 	to time given by the Security Holder (subject only to any rights which the bank
at which the account is held has in respect thereof).

	4.	 	ADDITIONAL OBLIGATIONS OF THE COMPANY
	 
	4.1	 	The Company agrees that, at all times during the continuance of this security, it:

	 	4.1.1	 	will conduct and carry on its business, and procure that each of its
Subsidiaries conducts and carries on its business, in a proper and efficient manner and
will not make any material alteration to the Company’s business, constituting a change
from that carried on at the date hereof;
	 
	 	4.1.2	 	will maintain proper and up to date books of account of its business and of
each of its Subsidiaries; and will keep such books of account and all other documents
and records relating to the affairs of the Company and of each of its Subsidiaries at
the Company’s or the Subsidiary’s registered office or at such other place where the
same ought to be kept and will promptly provide copies thereof to the Security Holder
upon request and will permit or procure for the Security Holder free access at all
reasonable times to inspect such of them as the Security Holder may require and will
provide the Security Holder with or procure for the Security Holder all information and
facilities it may require;
	 
	 	4.1.3	 	will deliver to the Security Holder the copies of its audited financial
statements (and those of its Subsidiaries if not consolidated) and any reports and
notes accompanying them within 6 months of each year end;
	 
	 	4.1.4	 	will punctually pay all its debts and liabilities becoming due and payable and
which would, on the winding up of the Company, have priority over the charges created
by this deed;
	 
	 	4.1.5	 	will on the basis of all full indemnity punctually pay or cause to be paid and
until such payment indemnify the Security Holder and any Receiver against all outgoings
payable in respect of the Mortgaged Property and will promptly produce the receipts for
them to the Security Holder upon request and will pay on demand all costs, charges and
expenses incurred by or on behalf of any of them in or about the enforcement or
preservation or attempted enforcement or preservation of any of the security created by
or pursuant to this deed or of any of the Mortgaged Property;
	 
	 	4.1.6	 	will keep all the Company’s freehold and leasehold property and that of its
Subsidiaries in good and substantial repair and will allow the Security Holder its
agents and representatives free access, at all reasonable times, to view the state and
condition of any such property, but without the Security Holder becoming liable to
account as a mortgagee in possession and where the Security Holder reasonably believes
it to be necessary, to require testing or the taking of samples at the expense of the
Company to verify the Company’s

8

 

	 	 	 	compliance with Environmental Law applicable to the Company and/or the Company’s
Environmental Licences;

	 	4.1.7	 	will observe and perform all the lessee’s covenants in any lease under which
any of the Mortgaged Property may be held and will take no action which might lead to
such lease being surrendered or forfeited;
	 
	 	4.1.8	 	will allow the Security Holder, at the expense of the Company, to carry out
repairs or take any action which the Security Holder shall reasonably consider
necessary should the Company fail to observe or perform its obligations as a lessee;
	 
	 	4.1.9	 	will not exercise the powers of leasing or accepting surrenders of leases,
conferred on a mortgagee in possession by Sections 99 and 100 of the Law & Property Act
1925, or any other powers of leasing or accepting surrenders of leases, without the
prior written consent of the Security Holder;
	 
	 	4.1.10	 	will make sure that an order of the Court is obtained, under Section 38(4) of the
Landlord and Tenant Act 1954, excluding the security of tenure provisions of that Act,
before granting any lease;
	 
	 	4.1.11	 	will insure and keep insured those parts of the Mortgaged Property as are of an
insurable nature against loss or damage by fire and other risks usually insured against
and such other risks that the Security Holder shall reasonably require to their full
insurable value with insurers approved by the Security Holder;
	 
	 	4.1.12	 	will make sure that all insurances will be endorsed with notice of the interest of
the Security Holder in them and will produce to the Security Holder the receipts for
each current premium within fifteen days of its becoming due; failing such production
the Security Holder may effect or renew any Insurances as the Security Holder shall
think fit at the Company’s expense;
	 
	 	4.1.13	 	will observe and perform all restrictive and other covenants and stipulations for the
time being affecting the Mortgaged Property or its use or enjoyment;
	 
	 	4.1.14	 	will not do or allow anything to be done on the Company’s freehold or leasehold
property which shall be treated as a development or a change of use within the meaning
of the Town and Country Planning Acts unless the prior written consent of the Security
Holder has been obtained;
	 
	 	4.1.15	 	will not infringe the Town and Country Planning Acts in any way which prejudices the
Security Holder’s security over the Mortgaged Property;
	 
	 	4.1.16	 	will deposit with the Security Holder all deeds and documents of title relating to
the Company’s freehold and leasehold property and the insurance policies relating to
the same, (subject only to the requirements of any prior Encumbrance or of the
Company’s landlord);

9

 

	 	4.1.17	 	will not permit any person to become entitled to any proprietary right or interest
which might affect the value of the assets subject to the fixed charges herein;
	 
	 	4.1.18	 	will acquire, maintain and comply with all Environmental Licences (if any) needed for
its use or occupation of the Mortgaged Property or for the conduct of its current
business and will provide the Security Holder with copies of all such Environmental
Licences their terms and conditions and any variations or amendments to them;
	 
	 	4.1.19	 	the Company will comply with all applicable Environmental Laws and will not do or
permit any act or omission whereby its Environmental Licences (if any) could be varied
or revoked;
	 
	 	4.1.20	 	will ensure that no discharge, spillage, release or emission of any prescribed,
dangerous, noxious or offensive substance or any controlled waste will occur on, into
or from any of the Mortgaged Property or any premises adjoining any part of it; and no
such substances or any controlled waste will be stored or disposed of on or in any part
of the Mortgaged Property or, in any adjoining premises except in accordance with the
requirements of the applicable Environmental Laws;
	 
	 	4.1.21	 	will not be in breach of any Environmental Laws or the terms of any Environmental
Licence or incur or become subject to any civil or criminal liability thereunder;
	 
	 	4.1.22	 	will promptly on becoming aware of it inform the Security Holder of any Environmental
Claim which is made or threatened against the Company and of any requirement which is
imposed pursuant to any Environmental Licence or Environmental Law which requires the
Company to make any investment or capital expenditure or take or desist from taking any
action in order to comply with Environmental Law or such Environmental Licence;
	 
	 	4.1.23	 	will notify the Security Holder forthwith upon becoming aware of any Relevant
Substance present at, on or under or brought on to any of the Mortgaged Properties
which might give rise to any Environmental Claim or which might lead to or cause a
change in value of any of the Mortgaged Property;
	 
	 	4.1.24	 	to the extent not already specified will procure that each of its Subsidiaries
carries out the same acts and does the same things in relation to such Subsidiary and
its assets and undertaking as are specified in sub-clauses 4.1.1 to 4.1.23 inclusive in
relation to the Company.

	4.2	 	If the Company holds property as a tenant or lessee and shall be required by the landlord
either to insure or to reimburse the Company’s landlord for any insurance premium paid by him
then the Company shall be treated as having complied with its insuring obligation under this
deed if it duly and promptly complies with such requirements. However this

10

 

	 	 	shall not affect the right of the Security Holder to require the Company to produce
satisfactory evidence that the Company has compiled with the landlord’s requirements.

	5.	 	FURTHER ASSURANCE, POWER OF ATTORNEY AND RIGHTS IN RELATION TO SECURITIES
	 
	5.1	 	At the Security Holder’s request, the Company will immediately sign, seal, execute, deliver
and perfect all Encumbrances, deeds and instruments and do all such other acts and things as
the Security Holder or any Receiver or Administrator appointed hereunder may require in order
to perfect or enforce this security or to use the powers given to each of them in this deed or
to enforce the obligations of the Company under this deed.
	 
	5.2	 	The Encumbrances, deeds and instruments referred to in clause 5.1 shall be prepared by or on
behalf of the Security Holder at the expense of the Company and shall contain (a) an Immediate
power of sale without notice, (b) a clause excluding section 93 Law of Property Act 1925 and
excluding the restrictions contained in section 103 Law of Property Act 1925 and (c) such
other clauses for the benefit of the Security Holder as the Security Holder may reasonably
require.
	 
	5.3	 	The Company will, if called upon by the Security Holder, execute a legal or equitable
assignment of any part of the Mortgaged Property, then subject to a fixed charge in such terms
as the Security Holder may require. The Company will then give notice of such assignment to
such persons as the Security Holder may specify and take such other steps as the Security
Holder may require to perfect such assignment.
	 
	5.4	 	The Company irrevocably appoints the Security Holder, any directors, officers or managers for
the time being of the Security Holder and any other person authorised by the directors of the
Security Holder and any Receiver appointed hereunder, jointly and each of them severally, to
be the lawful attorneys of the Company. Such appointment gives each attorney the power in the
Company’s name and on its behalf and as its act and deed:

	 	5.4.1	 	to do all things which the Company may be required to do under this deed or
which may be required for the full exercise of any of the powers given by this deed to
either a Receiver or the Security Holder;
	 
	 	5.4.2	 	to sign, execute, seal, deliver and perfect any documents or instruments which
may be required:

	 	(i)	 	for perfecting the title of the Security
Holder to the Mortgaged Property or the Receivership Assets (as the
case may be) or in vesting the same in the Security Holder, its
nominees or any purchaser;
	 
	 	(ii)	 	for the full exercise of all or any of
the powers conferred by this deed on either the Receiver or the
Security Holder or which may by either of them be considered
expedient in

11

 

	 	 	 	connection with any disposition, realisation or getting in by
either of them of the Receivership Assets; or

	 	(iii)	 	in connection with the exercise of any
power under this deed and including but not limited to a power in
favour of any Receiver to dispose of for value any of the assets of
the Company over which the Receiver may not have been appointed and
which are located at the Receivership Assets over which he has been
appointed, without being liable for any losses suffered by the
Company.

	 	 	 	Each attorney so appointed may appoint substitute attorneys to carry out all or any
of such purposes. The Company agrees to ratify and confirm any instrument, act or
thing which any such attorney or substitute attorney may lawfully execute or do.

	5.5	 	The provisions of this clause 5 are in addition to and not in substitution for the covenants
for further assurance deemed to be included in this deed by virtue of the Law of Property
(Miscellaneous Provisions) Act 1994.
	 
	5.6	 	Subject to clause 5.8 the Security Holder and its nominees may at any time exercise in the
name of the Company any voting rights and all powers given to trustees by the Trustee Act 2000
in respect of any securities or property subject to a trust and any powers or rights which may
be exercisable by the registered holder of the Securities or by the bearer thereof at any time
after the same shall become subject to a fixed charge and such exercise shall not require any
consent or authority from the Company.
	 
	5.7	 	After the same shall become subject to a fixed charge and until an Act of Default the
Security Holder will hold all dividends, distributions, interest and other monies received in
respect of the Securities for the account of the Company and will, subject to any right of
set-off, pay the same to the Company upon request.
	 
	5.8	 	After the same shall become subject to a fixed charge and until an Act of Default the
Security Holder will exercise all voting and other rights attached to the Securities as the
Company may from time to time in writing reasonably direct, however the Security Holder need
not comply with any such direction where compliance would, in the Security Holder’s opinion,
be prejudicial to the Security created by this deed.
	 
	6.	 	ACTS OF DEFAULT
	 
	6.1	 	The Secured Monies shall become payable and the charges and securities in favour of the
Security Holder shall immediately become enforceable, without notice or demand, by the
Security Holder at any time after any of the following events occur (except where any
Moratorium is applied for or is in force, when enforcement action or other action shall not be
taken until any application is rejected or upon the expiry of such Moratorium);

	 	6.1.1	 	the Company shall breach any of its obligations under this deed or the
Financing Agreement or any other agreement with the Security Holder;

12

 

	 	6.1.2	 	the Company shall default in paying any of the Secured Monies as and when they
become due;
	 
	 	6.1.3	 	the Company shall fail to give the Security Holder such information as may
reasonably be requested as to the business, affairs or assets of the Company or any of
its Subsidiaries;
	 
	 	6.1.4	 	if any representation, warranty or undertaking at any time made by the Company
to the Security Holder is or was, in the reasonable opinion of the Security Holder,
incorrect or misleading in any respect or, being on an undertaking, shall not be
complied with by the Company;
	 
	 	6.1.5	 	the Company’s or any Subsidiary’s principal undertaking or a substantial part
of it, is disposed of or an attempt is made to dispose of the same without the prior
written approval of the Security Holder;
	 
	 	6.1.6	 	any Group Company shall be insolvent;
	 
	 	6.1.7	 	any Group Company suspends or threatens to suspend a substantial part of its
business or if the Security Holder receives information, from the Company, any Group
Company or any responsible third party, whether orally or in writing, that any of them
is contemplating or is likely to suspend a substantial part of its business;
	 
	 	6.1.8	 	any Group Company shall commence negotiations with any of its creditors with a
view to the general readjustment or rescheduling of its indebtedness;
	 
	 	6.1.9	 	any Group Company shall default under any of the following with any party:

	 	(i)	 	a trust deed;
	 
	 	(ii)	 	a loan agreement;
	 
	 	(iii)	 	an Encumbrance;
	 
	 	(iv)	 	any other agreement or obligation
relating to borrowing or financing (including all liabilities in
respect of accepting, endorsing or discounting any notes or bills
and all liabilities under debt purchase, factoring, discounting and
similar agreements);
	 
	 	(v)	 	any guarantee or indemnity;

	 	6.1.10	 	any borrowing or any other money payable by any Group Company:

	 	(i)	 	becomes payable or is capable of being
declared payable prior to its stated date of maturity or any
creditor becomes entitled to declare the same so due and payable; or

13

 

	 	(ii)	 	is not paid when due;

	 	6.1.11	 	any Encumbrance created by any Group Company in favour of another party becomes
enforceable;
	 
	 	6.1.12	 	any guarantee, indemnity or other security for any of the Secured Liabilities fails
or ceases in any respect to have full force and effect or to be continuing or is
terminated or disputed or is in the opinion of the Security Holder in jeopardy, invalid
or unenforceable;
	 
	 	6.1.13	 	any governmental authority permits or procures or threatens any reorganisation,
transfer or appropriation (whether with or without compensation) of a substantial part
of the business or assets of the Company or any of its Subsidiaries;
	 
	 	6.1.14	 	the Company or any of its Subsidiaries shall, without the prior written consent of
the Security Holder, change the nature of its business or trading in any way which the
Security Holder considers prejudicial to this security;
	 
	 	6.1.15	 	it is unlawful for the Company to perform or comply with any of its obligations under
this deed or under any other agreement between the Company and the Security Holder or
such obligations of the Company are not or cease to be legally valid, binding and
enforceable;
	 
	 	6.1.16	 	without the prior written consent of the Security Holder any single person, or group
of persons acting in concert as defined in the City Code on Takeovers and Mergers,
acquires more than one-half in nominal value of the equity share capital (as defined in
section 744 Companies Act 1985) of the Company or control (as defined in Section 435
insolvency Act 1986) of the Company is acquired by any person and/or his associates (as
defined in that section) not having at the date of this deed control of the Company or
the power to take control of the Company changes;
	 
	 	6.1.17	 	in the opinion of the Security Holder, a material adverse change occurs in the
financial condition, results of operations or business of the Company or any of its
Subsidiaries;
	 
	 	6.1.18	 	the Security Holder becomes exposed to any actual or potential liability in relation
to Environmental Law in connection with any property owned, occupied or leased by the
Company or any Subsidiary or, where in consequence of the application of any
Environmental Law, the Claims of the Security Holder are subordinated to the claims of
any Environmental Regulator or third party;
	 
	 	6.1.19	 	there occurs, in relation to the Company, any of its Subsidiaries or any Group
Company (as the case may be) in any country or territory in which it carries on
business or to the jurisdiction of whose courts any part of its assets is subject, any
event which, in the reasonable opinion of the Security Holder,

14

 

	 	 	 	appears in that country or territory to correspond with, or have an effect
equivalent or similar to, any of those mentioned in any of the other sub-clauses
of this clause 6.1 or the Company or any of its Subsidiaries or its Group
Companies otherwise becomes subject, in any such country or territory, to the
operation of any law relating to insolvency, bankruptcy or liquidation;

	 	6.1.20	 	this deed or the Financing Agreement is alleged by the Company to be ineffective for
any reason;
	 
	 	6.1.21	 	the Company repudiates or shows an intention to repudiate this deed, or the Financing
Agreement or any agreement or arrangement between the Company and the Security Holder;
	 
	 	6.1.22	 	any event occurs or circumstance arises which, in the opinion of the Security Holder
is likely materially and adversely to affect the ability of the Company to perform all
or any of its obligations under or otherwise to comply with the terms of this deed or
the Financing Agreement or any agreement or arrangement between the Company and the
Security Holder;
	 
	 	6.1.23	 	the auditors of the Company or of any of its Subsidiaries qualify their report on the
audited financial statements of the Company or of any of its Subsidiaries in any way
whatsoever, except where the qualification is of a technical nature and the remedy for
the matter giving rise to the qualification would have no effect on the results of the
Company or the Subsidiary for the period to which such accounts relate;
	 
	 	6.1.24	 	the Security Holder receives from any person a notice of intention to appoint an
Administrator of the Company or the Company requests the Security Holder to appoint an
Administrator or a Receiver of the Company;
	 
	 	6.1.25	 	an application is made for the appointment of an Administrator; or a petition is
presented for an administration order in respect of the Company; or an Administrator is
appointed in relation to the Company.

	6.2	 	Upon or any time after an Act of Default:

	 	6.2.1	 	the Security Holder shall cease to be under any further commitment to the
Company and may at any time thereafter declare the Secured Monies (or such of them as
the Security Holder may specify) either to be immediately due and payable or to be
payable at any time thereafter immediately on demand, even if this conflicts with the
terms of any other agreement or arrangement; and/or
	 
	 	6.2.2	 	the Company shall immediately on demand provide cash cover for all of its
contingent liabilities to the Security Holder (including under the Financing Agreement)
and for all notes or bills accepted, endorsed or discounted and all guarantees or other
instruments entered into by the Security Holder; and/or

15

 

	 	6.2.3	 	the Security Holder may retain any monies in any account under its control for
such period as the Security Holder reasonably considers necessary to ensure the
Company’s compliance with the terms of this deed; and/or
	 
	 	6.2.4	 	all of the securities, mortgages and charges herein shall become enforceable;
and/or
	 
	 	6.2.5	 	the Security Holder may exercise in the name of the Company any voting rights
attached to the Securities and all powers given to trustees by Sections 10(3) and (4)
of the Trustee Act 1925 (as amended by Section 9 of the Trustee investments Act 1961)
in respect of Securities, property subject to a trust and any powers or rights
exercisable by the registered holder of any of the Securities or by the bearer thereof
as it sees fit. The Security Holder will not then need any consent or authority from
the Company.

	7.	 	POWER OF POSSESSION AND SALE
	 
	7.1	 	At any time on or after an Act of Default the Security Holder may, without further notice,
without the restrictions contained in section 103 Law of Property Act 1925 exercise all the
powers conferred upon mortgagees by the Law of Property Act 1925 as varied or extended by this
deed and all the powers and discretions conferred on a Receiver whether expressly by this
deed, by law or by reference. However these rights may not be exercised where any Moratorium
is applied for or in force until any application is rejected or upon the expiry of such
Moratorium.
	 
	8.	 	APPOINTMENT OF RECEIVER AND HIS POWERS
	 
	8.1	 	Section 109 of the Law of Property Act 1925 (restricting the power to appoint a receiver)
shall not apply to this deed. At any time after an Act of Default or after any other event,
as a result of which this security shall become enforceable or, If the Company at any time so
requests in writing, the Security Holder may without further notice to the Company appoint any
person to be a Receiver of the Receivership Assets. However no such appointment may be made
either where any Moratorium is in force or pending determination of any application for a
Moratorium. The Security Holder may remove any Receiver. In case of the removal, retirement
or death of any Receiver, the Security Holder may appoint another in his place.
	 
	8.2	 	The Security Holder may appoint more than one person to act as the Receiver. Where more than
one person shall be appointed to act as Receiver, those so appointed shall carry out their
duties, exercise their rights, and be subject to their obligations jointly as well as
severally. References in this deed to the “Receiver” shall be to each and all of them as
appropriate.
	 
	8.3	 	Any appointment, removal or fixing of the remuneration of the Receiver shall be made in
writing and be signed by any director or authorised officer of the Security Holder.
	 
	8.4	 	Any Receiver appointed under this deed (whether appointed solely or jointly) shall be the
agent of the Company. He shall be in the same position as and with the powers of a

16

 

	 	 	Receiver appointed under the Law of Property Act 1925. The Company shall be solely responsible
for his acts, omissions, losses, misconduct, defaults and remuneration. The Security Holder shall
not in any way be liable or responsible either to the Company or to any other person for any of
them.

	8.5	 	So far as is necessary to deal with the Receivership Assets the Receiver:

	 	8.5.1	 	shall have the power to do or omit to do on behalf of the Company anything
which the Company Itself could do or omit to do as if neither a Receiver nor a
liquidator were appointed;
	 
	 	8.5.2	 	shall also have all powers from time to time conferred on receivers by statute
without, in the case of powers conferred by the Law of Property Act 1925, the
restrictions contained in Section 103 of that Act, and without any further consent by
or notice from the Company;
	 
	 	8.5.3	 	may exercise his powers in such way at such time and on such terms as he shall
think fit, necessary or expedient and whether in his name or the name of the Company.

	8.6	 	Without limiting the effect of clause 8.5, the Receiver shall, without the need for any
consent on the part of the Company, have all of the following powers in relation to the
Receivership Assets, unless any shall specifically be excluded by the terms of his
appointment;

	 	8.6.1	 	to enter upon, take possession of, collect and get in the Receivership Assets
and for that purpose to have possession of all records, correspondence and other
documents relating to the Receivership Assets;
	 
	 	8.6.2	 	to lease the Receivership Assets, in the name of the Company or otherwise
(whether or not the Receiver shall have taken possession thereof);
	 
	 	8.6.3	 	to carry on or permit the carrying on of all or any part of the business of
the Company relating to the Receivership Assets and to manage, develop, reconstruct,
amalgamate or diversify the Company’s business relating to the Receivership Assets,
Including purchasing supplies and materials;
	 
	 	8.6.4	 	to do all acts which the Company might do for the protection or improvement or
realisation of the Receivership Assets or for obtaining income or returns from them;
	 
	 	8.6.5	 	to raise or borrow any money, which may be needed from time to time for any of
the purposes of the Receiver’s appointment, whether in the name of the Company or
otherwise; for such purpose the Receiver shall have power to secure any monies so
borrowed by mortgage or charge over the Receivership Assets, whether ranking in
priority to or pari passu with or after any or all of the charges created by this deed;

17

 

	 	8.6.6	 	to sell or concur in selling the Receivership Assets including by public or
private treaty, by tender, for cash or on credit, in one lot or in parcels, with or
without special conditions or stipulations as to title, time or mode of payment of
purchase money or otherwise and whether forthwith upon his appointment or later;
	 
	 	8.6.7	 	to allow the whole or any part of the sale monies of the Receivership Assets
to remain outstanding on mortgage of the property sold or on any other security or even
without any security and without being responsible for any loss caused and with full
power to buy in and rescind or vary any contract for sale and to resell without being
responsible for loss;
	 
	 	8.6.8	 	to let or let on hire, lease or surrender and accept surrenders of the
Receivership Assets;
	 
	 	8.6.9	 	to execute assurances of the Receivership Assets in the name and on behalf of
the Company or otherwise and to do all other acts and things for completing the sale of
the Receivership Assets;
	 
	 	8.6.10	 	to sever fixtures belonging to the Company which form part of the Receivership Assets
and sell them separately from any other part of the Receivership Assets;
	 
	 	8.6.11	 	to make any arrangement or compromise with any person in respect of the Receivership
Assets;
	 
	 	8.6.12	 	to repair, decorate, furnish, maintain, alter, improve, renew or add to any of the
Receivership Assets as he shall think fit and effect, maintain, renew or increase
indemnity insurance and other insurances and obtain bonds in respect of the
Receivership Assets;
	 
	 	8.6.13	 	to settle, arrange, compromise, and submit to arbitration any accounts, claims,
questions or disputes whatsoever which may arise in connection with the business of the
Company or any part of the Receivership Assets or in any way relating to the security
constituted thereon by this deed and to bring, prosecute, defend, enforce, compromise,
submit to and discontinue any actions, suits, arbitrations or proceedings whatsoever
relating to the Receivership Assets whether civil or criminal;
	 
	 	8.6.14	 	to enter into, complete, disclaim, abandon or disregard, determine or rectify any of
the outstanding contracts or arrangements of the Company and allow time for payment of
any debts, either with or without security;
	 
	 	8.6.15	 	to exercise or permit the Company or any nominee of the Company to exercise any
powers or rights incidental to the ownership of the Receivership Assets, in such manner
as he may think fit;

18

 

	 	8.6.16	 	to form a Subsidiary of the Company and transfer, lease or license to such Subsidiary
or any other person all or any part of the Receivership Assets on such terms and
conditions as he may think fit;
	 
	 	8.6.17	 	to give complete discharges in respect of all monies and other assets which may come
into the hands of the Receiver in the exercise of his powers in relation to the
Receivership Assets;
	 
	 	8.6.18	 	to carry out and enforce specific performance of or obtain the benefit of any of the
Company’s contracts or those entered into in exercise of the powers or authorities
conferred by this deed;
	 
	 	8.6.19	 	to make, or require the directors of the Company to make, calls upon the shareholders
of the Company in respect of any capital of the Company;
	 
	 	8.6.20	 	to enforce payment of any call so made by action (in the name of the Company or the
Receiver) or in any other way;
	 
	 	8.6.21	 	to demand and get in all rents and other income, whether accrued before or after the
date of his appointment;
	 
	 	8.6.22	 	to exercise the powers conferred on a landlord or a tenant under the Landlord and
Tenant Acts 1927 and 1954 but without liability for powers so exercised;
	 
	 	8.6.23	 	to do all things necessary to make sure that the Company performs or observes all of
its obligations to the Security Holder;
	 
	 	8.6.24	 	to delegate to any person, for such time as the Security Holder shall approve, any of
the powers conferred upon the Receiver;
	 
	 	8.6.25	 	to employ and dismiss managers, solicitors, accountants and other professionally
qualified persons, officers, agents, auctioneers, workmen and employees for the purpose
of carrying out any of the powers and duties of the Receiver or the obligations of the
Company at such salaries or remuneration and on such other terms of service as the
Receiver in his discretion may think fit;
	 
	 	8.6.26	 	to have access to and make use of the premises, plant, equipment and accounting and
other records of the Company and the services of its staff in order to exercise his
powers and duties;
	 
	 	8.6.27	 	to do all such other acts and things without limitation, as the Receiver may consider
to be incidental or conducive to the lawful exercise of his powers and duties;
	 
	 	8.6.28	 	to use the Company’s seal and to draw, accept, make or endorse any bill of exchange
or promissory note in the name and on behalf of the Company;

19

 

	 	8.6.29	 	rank and claim in the bankruptcy, insolvency, sequestration or liquidation of any
person indebted to the Company and to receive dividends, and to accede to trust deeds
for the creditors of any such person;
	 
	 	8.6.30	 	make any payment which is necessary or incidental to the performance of his
functions.

	8.7	 	The Security Holder may at any time give up possession of any part of the Receivership Assets
and/or withdraw from the receivership.

	9.	 	ADDITIONAL POWERS

	9.1	 	In addition to the powers of leasing or accepting surrenders of leases conferred on
mortgagees by Sections 99 and 100 of the Law of Property Act 1925, it shall be lawful for the
Security Holder or any Receiver without the restrictions contained in those Sections:

	 	9.1.1	 	to grant any lease of the Receivership Assets upon such terms as the Security
Holder or the Receiver shall in its absolute and unfettered discretion think; and
	 
	 	9.1.2	 	to accept a surrender of any lease of the Receivership Assets on such terms as
the Security Holder or the Receiver in its or his discretion shall think fit.

	9.2	 	Section 103 of the Law of Property Act 1925 (restricting the power of sale) shall not apply.
However the power of sale and the other powers conferred on mortgagees by that Act shall apply
to this security but without the Act’s restrictions as to giving notice or otherwise.
Accordingly for the purposes of a sale or other exercise of any such powers the whole of the
Secured Monies shall be treated as due and payable immediately upon the execution and delivery
of this document.
	 
	9.3	 	The restrictions on the right of consolidating mortgage securities, which are contained in
Section 93 of the Law of Property Act, shall not apply to this security.
	 
	9.4	 	The Security Holder may, at any time without discharging or in any other way affecting this
security or any remedy that the Security Holder may have, grant to the Company (or to any
other person) time or indulgence or abstain from perfecting or enforcing any remedies,
securities, guarantees or rights which the Security Holder may now or afterwards have from or
against the Company or any other person.
	 
	9.5	 	If the Security Holder receives or is treated as having received notice of any subsequent
mortgage or charge affecting any of the Receivership Assets then the Security Holder may open
a new account with the Company. If it does not open a new account, it shall nevertheless be
treated as if it had done so at the time when it received or was treated as having received
such notice. From that time all payments made by the Company to the Security Holder shall be
credited or be treated as having been credited to the new account. Such payments shall not
operate to reduce the amount secured by this deed when the Security Holder received or was
treated as having received such notice.

20

 

	9.6	 	The Security Holder may from time to time determine the remuneration of any Receiver and
section 109(6) Law of Property Act 1925 shall be varied accordingly. A Receiver shall be
entitled to remuneration appropriate to the work and responsibilities involved upon the basis
of charging from time to time adopted by the Receiver in accordance with the current practice
of his firm, which can include a fixed fee or an hourly rate or a commission or a combination
of the same.

	10.	 	APPLICATION OF MONIES

	10.1	 	All monies received by the Security Holder or by the Receiver under or by virtue of this deed
shall be applied in the following order:

	 	10.1.1	 	in the discharge of all liabilities having priority to the mortgages and charges
hereby created or the matters referred to hereafter in this clause 10.1;
	 
	 	10.1.2	 	in payment of all costs, charges and expenses incurred in or incidental to the
exercise or performance (or attempted exercise or performance) of any of the powers or
authorities conferred by or in any other way connected with this deed; and then
	 
	 	10.1.3	 	in payment to the Receiver of his remuneration fixed in accordance with clause 9.6 of
this deed; and then
	 
	 	10.1.4	 	in payment to the Security Holder of the Secured Monies due to the Security Holder in
such order as the Security Holder in its absolute discretion thinks fit; and then
	 
	 	10.1.5	 	in payment to the Company of any surplus.

	10.2	 	Any surplus shall not carry interest. The Receiver or the Security Holder may pay any
surplus into any of the Company’s bank accounts including an account opened specifically for
such purpose. The Security Holder shall then have no further liability for such surplus.
	 
	10.3	 	Following the enforcement of this security, any monies received by the Security Holder may be
appropriated by the Security Holder in its discretion in or towards the payment and discharge
of any part of the Secured Monies.
	 
	10.4	 	The Security Holder or the Receiver may credit any monies to a suspense account for so long
and in such manner as the Security Holder may from time to time determine. The Receiver may
retain the same for such period as the Receiver and the Security Holder consider expedient.
	 
	10.5	 	All monies received by the Company under any insurance policy on the Mortgaged Property shall
be treated as part of the Mortgaged Property subject only to any rights of third parties
having priority and to the requirements of any lease of the Mortgaged Property. They shall be
applied at the discretion of the Security Holder either in reducing the Secured Monies or
towards making good the loss or damage for which the monies

21

 

	 	 	became payable. Any monies received by the Company under any insurance on the Mortgaged
Property shall be held on trust for payment to the Security Holder pending such application.
Section 109(8) of the Law of Properties Act 1925 shall not apply.

	10.6	 	Neither the Security Holder nor any Receiver shall have any liability or responsibility of
any kind to the Company arising out of the exercise or non-exercise of the right to enforce
recovery of the Fixed Charge Debts or the Floating Charge Debts or shall be obliged to make
any enquiry as to the sufficiency of any sums received in respect of any Fixed Charge Debts or
the Floating Charge Debts or to make any claims or take any other action to collect or enforce
the same.

	11.	 	PROTECTION OF THIRD PARTIES

	11.1	 	No person paying or handing over monies to the Receiver and obtaining a discharge shall have
any responsibility or liability to see to their correct application.

	11.2	 	No person dealing with the Security Holder or the Receiver need enquire:

	 	11.2.1	 	whether any event has happened giving either the Security Holder or the Receiver the
right to exercise any of his powers;
	 
	 	11.2.2	 	as to the propriety or regularity of any act purporting or intending to be an
exercise of such powers;
	 
	 	11.2.3	 	as to the validity or regularity of the appointment of any Receiver or Administrator
purporting to act or to have been appointed as such; or
	 
	 	11.2.4	 	whether any money remains owing upon this security.

	11.3	 	All the protection to purchasers contained in Sections 104 and 107 of the Law of Property Act
1925 shall apply to any person purchasing from or dealing with the Receiver or the Security
Holder as if the Secured Monies had become due and the statutory power of sale and appointing
a receiver in relation to the Receivership Assets had arisen on the date of this deed.
	 
	11.4	 	No person dealing with the Security Holder, or the Receiver shall be affected by express
notice that any act is unnecessary or improper.
	 
	12.	 	H.M. LAND REGISTRY
	 
	12.1	 	The Company will notify the Security Holder of any freehold or leasehold property which it
now owns or which it may own after the date of this deed.
	 
	12.2	 	The Company irrevocably consents to the Security Holder applying to the Chief Land Registrar
in Form RX1 for the registration of the following restriction to be entered on the Company’s
title to any freehold or leasehold land, including any unregistered land which is or ought to
be the subject of a first registration of title at the Land Registry in the following terms:

22

 

	 	 	 	“Restriction
	 
	 	 	 	No disposition of the registered estate by the proprietor of the registered
estate is to be registered without a written consent signed by the
proprietor for the time being of the charge dated
____________ in favor of
Coface Receivables Finance Limited (Company number 04933860) referred to in
the Charges Register or its Solicitors”.

	12.3	 	in respect of any property charged pursuant to clauses 2.1.1 and 2.1.2 title to which is
registered at the Land Registry the Company hereby represents and warrants that the security
created by this deed does not contravene any of the provisions of the memorandum and articles
of association or any other constitutional documents of the Company.
	 
	12.4	 	in the event that the Security Holder requires arrangements to be entered into pursuant to
which any proprietor of a registered charge, which has priority at the Land Registry to the
charge created by this deed, Is to postpone its interest in any property charged hereunder to
the Security Holder’s interest in the same, then the Company consents and will procure the
consent of the proprietor of any such charge to the Security Holder’s application to the Chief
Land Registrar in form RX1 for the registration of the following restriction against such
registered charges (and against any title to any unregistered property which is or ought to be
the subject of a first registration at the Land Registry at the date of this deed) or any
other registered titles.

	 	 	 	“Restriction
	 
	 	 	 	No disposition of the registered estate by the proprietor of the registered
estate is to be registered without a written consent signed by the
proprietor far the time being of the charge dated ____________ in favour of
Coface Receivables Finance Limited (Company number 04933860) referred to in
the Charges Register or its Solicitors”.

	13.	 	CONTINUING AND ADDITIONAL SECURITY
	 
	13.1	 	This security is a continuing security. It shall apply to all the Secured Monies despite any
interim settlement of account partial payment or other matter until a final discharge of this
security shall be given by the Security Holder to the Company for the ultimate balance from
time to time owing in respect of the Secured Liabilities.
	 
	13.2	 	This security is in addition to and shall not merge or otherwise prejudice or affect any
other right or remedy of the Security Holder or any assignment, bill, note, guarantee,
mortgage or other security row or in future in favour of the Security Holder or held by or
available to the Security Holder whether created by the Company or any third party.
	 
	13.3	 	This security shall not in any way be prejudiced or affected by:

	 	13.3.1	 	any guarantee, mortgage or other security now or in future held by or available to
the Security Holder or by the invalidity of any of them or by the

23

 

	 	 	 	Security Holder now or afterwards dealing with, exchanging, releasing, modifying
or abstaining from perfecting or enforcing any of them or any rights which it
may now or afterwards have; or

	 	13.3.2	 	by the Security Holder giving time for payment or indulgence or compounding with the
Company or any other persons.

	14.	 	INDEMNITIES
	 
	14.1	 	All monies received or held by the Security Holder or by a Receiver under this deed at any
time on or after an Event of Default in a currency other than a currency in which the Secured
Liabilities are denominated may from time to time be sold for such one or more of the
currencies in which the Secured Liabilities are denominated as the Security Holder or Receiver
considers necessary or desirable. Neither the Security Holder nor any Receiver shall have any
liability to the Company in respect of any loss resulting from any fluctuation in exchange
rates after any such sale.
	 
	14.2	 	The Company will indemnify the Security Holder against all costs charges and expenses
incurred in relation to all sales under clause 14.1 and against any shortfall between:

	 	14.2.1	 	any amount received or recovered by the Security Holder in respect of any of the
Secured Liabilities which is converted in accordance with clause 14.1 into the currency
in which such liability was payable; and
	 
	 	14.2.2	 	the amount payable to the Security Holder under this deed in the currency of such
liability.

	14.3	 	The Company will indemnify the Security Holder, any Administrator or Receiver, any attorney,
agent or other person appointed by the Security Holder under this deed and the Security
Holder’s officers and employees (each an “indemnified Party”) in respect of all costs, losses,
actions, claims, expenses, demands or liabilities whether in contract, tort or otherwise and
whether arising at common law, in equity or by statute which may be incurred by, or made
against, any of the indemnified Parties (or by or against any manager, agent, officer or
employee for whose liability, act or omission any of them may be answerable) at any time
relating to or arising directly or indirectly out of or as a consequence of:

	 	14.3.1	 	anything done or omitted in the exercise of or purported exercise of the powers
contained in this deed; or
	 
	 	14.3.2	 	any breach by the Company of any of its obligations under this deed; or
	 
	 	14.3.3	 	any Environmental Claim made or asserted against an Indemnified Party which would not
have arisen if this deed had not been executed and which was not caused by the willful
default of the relevant indemnified Party.

24

 

	14.4	 	Each indemnified Party shall have the benefit and may enforce the terms of this deed in
accordance with the provisions of the Contracts (Rights of Third Parties) Act 1999 in order to
enforce or to enjoy the benefit of any term of this deed.
	 
	14.5	 	Despite clause 14.4 or any other provision of this deed, the Security Holder and the Company
shall be entitled to agree variations to this deed without notifying the other indemnified
Parties or seeking the consent of such indemnified Parties or any of them to the variation.
	 
	14.6	 	All fees, costs and expenses payable under or pursuant to this deed shall be paid together
with an amount equal to any value added tax payable by the Security Holder in respect of the
same.
	 
	15.	 	DISCHARGE
	 
	15.1	 	Upon payment and complete discharge and performance of all the Secured Liabilities and of all
costs, charges and expenses incurred by the Security Holder under or in relation to this deed,
the Security Holder shall, at the request and cost of the Company, duly discharge this
security and any further security given in accordance with its terms. The Security Holder
will also transfer to the Company any of the Mortgaged Property which has been assigned or
transferred to the Security Holder.
	 
	15.2	 	Any release, discharge or settlement between the Company and the Security Holder shall be
conditional upon no security, disposition or payment to the Security Holder by the Company or
any other person being void, set aside or ordered to be refunded pursuant to any enactment or
law relating to bankruptcy liquidation, administration or insolvency or for any other reason
whatsoever and if such condition is not fulfilled the Security Holder shall be entitled to
enforce this deed as if such release, discharge or settlement had not occurred and any such
payment had not been made.
	 
	16.	 	SERVICE OF NOTICES AND PROCESS
	 
	16.1	 	Except as stated to the contrary herein any written notice from the Security Holder to the
Company and any proceedings issued by the Security Holder requiring service on the Company may
be given or served by delivering it at or posting it to:

	 	16.1.1	 	the Company’s registered office or to such other address of the Company advised to
and acknowledged by the Security Holder as being effective for the purposes of this
clause; or
	 
	 	16.1.2	 	any address last known to the Security Holder at which the Company carried on
business.
	 
	 	 	 	It may also be handed to any of the Company’s officers and, if the Company be a
limited liability partnership, to any of its members. Such notice may also be given
by facsimile transmission or electronic medium to the Company’s number or address
advised to and acknowledged by the Security Holder as suitable for communication by
such means.

25

 

	16.2	 	Any such notice or process shall be considered served:

	 	16.2.1	 	if delivered—at the time of delivery; or
	 
	 	16.2.2	 	if sent by post—48 hours from the time of posting; or
	 
	 	16.2.3	 	if sent by facsimile transmission or electronic medium—at the time of transmission;
or
	 
	 	16.2.4	 	If handed over—at the time of handing over.

	16.3	 	Any notice in writing by the Company to the Security Holder required hereunder shall take
effect at the time it is received by the Security Holder at its registered office or at such
other address the Security Holder may advise in writing to the Company for this purpose.
	 
	17.	 	JURISDICTION
	 
	17.1	 	This deed shall be interpreted and shall be governed by the laws of England. The Company
will accept the non-exclusive jurisdiction of the English Courts in connection with any matter
arising under this deed.
	 
	18.	 	REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS BY COMPANY
	 
	18.1	 	The Company certifies that the execution of this deed has been duly authorised by a
resolution of the Company’s Board of Directors or a duly constituted Partners’ meeting (as the
case may be) and that it does not break any of the provisions of the Company’s Memorandum and
Articles of Association or the partnership agreement (as the case may be) or of any other
Encumbrance, security or agreement entered into prior to the date of this deed or the laws of
any jurisdiction applying to the Company.
	 
	18.2	 	The Company represents and warrants to the Security Holder that:

	 	18.2.1	 	it is and will at all times be the sole beneficial owner with full title guarantee of
all the Mortgaged Property and that no Encumbrances affect it except the Encumbrances
(if any) set out in the Third Schedule and general liens in the ordinary course of
business;
	 
	 	18.2.2	 	it has and will at all times have the necessary power to enter into and perform its
obligations under this deed;
	 
	 	18.2.3	 	this deed constitutes its legal, valid, binding and enforceable obligations and is an
effective security over all and every part of the Mortgaged Property in accordance with
its terms;
	 
	 	18.2.4	 	all necessary authorisations and consents to enable or entitle it to enter into this
deed have been obtained and these will remain in full force and effect during the
existence of this security;

26

 

	 	18.2.5	 	the Company has obtained and maintained all such Insurance policies as would be
maintained by prudent companies carrying on business of the type carried on by the
Company at all relevant times and has complied in all material respects with the terms
and conditions of such policies.

	18.3	 	The Company undertakes that no Encumbrances (other than a general lien in the ordinary course
of business) ranking in priority to or pari passu with the charges created by this deed will
arise after the date of this deed over the Mortgaged Property.
	 
	19.	 	TRANSFERS AND DISCLOSURES
	 
	19.1	 	This deed is freely transferable by the Security Holder. References in this deed to the
“Security Holder” shall include its successors, assignees and transferees.
	 
	19.2	 	This deed shall remain binding on the Company notwithstanding any change in the constitution
of the Security Holder or its absorption in, or amalgamation with, or the acquisition of all
or part of its undertaking by, any other person, or any reconstruction or reorganisation of
any kind. The security granted by this deed shall remain valid and effective in all respects
in favour of the Security Holder and any assignee, transferee or other successor in title of
the Security Holder in the same manner as if such assignee, transferee or other successor in
title has been named in this deed as a party instead of, or in addition to the Security
Holder.
	 
	19.3	 	The Company may not assign or transfer any of its obligations under this deed. Nor may the
Company enter into any transaction which would result in any such obligations passing to
another person.
	 
	19.4	 	The Security Holder may disclose any information about the Company or any of its Subsidiaries
or any other Group Company or any partner and any other person connected or associated with
any of them to any member of the Security Holder’s Group and/or to any person to whom it is
proposing to transfer or assign or has transferred or assigned this deed. The Company
represents and warrants that it has and (so far as permitted by law) will maintain any
necessary authority by or on behalf of any such persons to agree to the provisions of this
clause.
	 
	20.	 	MISCELLANEOUS
	 
	20.1	 	No delay or omission on the part of the Security Holder in exercising any right or remedy
under this deed shall impair that right or remedy or operate as or be taken to be a waiver of
it. Any single, partial or defective exercise of any such right or remedy shall not prevent
the further exercise of that or any other right or remedy.
	 
	20.2	 	The Security Holder’s rights under this deed are cumulative. They are not exclusive of any
rights provided by law. They may be exercised from time to time and as often as the Security
Holder sees fit.
	 
	20.3	 	Any waiver by the Security Holder of any terms of this deed or any consent or approval given
by the Security Holder under it shall only be effective if given in writing. Such

27

 

	 	 	consent and approval shall then only apply for the purpose stated and be subject to any
written terms and conditions imposed by the Security Holder.

	20.4	 	If at any time any one or more of the provisions of this deed is or becomes illegal, invalid
or unenforceable in any respect under the laws of any jurisdiction then neither the legality,
validity or enforceability of the remaining provisions of this deed nor the legality, validity
or enforceability of such provision under the law of any other jurisdiction shall be in any
way affected or impaired as a result.
	 
	20.5	 	Any certificate signed by a director or authorised officer of the Security Holder as to the
amount of the Secured Monies at the date of such certificate shall, in the absence of manifest
error or error in law, be conclusive evidence of such amount and be binding on the Company.
	 
	20.6	 	This deed may be executed in any number of counterparts. It will then be as effective as if
all signatures on the counterparts were on a single copy of this deed.
	 
	20.7	 	The paper on which this deed is written is, and will remain at all times, the property of the
Security Holder, even after the discharge of this security.
	 
	20.8	 	The Security Holder shall not be obliged to make any claim or demand on the Company or any
other person liable to the Security Holder or to resort to any Collateral Instrument or other
means of payment before enforcing this deed. No action taken or omitted in connection with
any such Collateral Instrument or other means of payment shall discharge, reduce, prejudice or
affect the liability of the Company.
	 
	20.9	 	Any money received pursuant to the realisation of any security created pursuant to this deed
(whether before or after any incapacity of the Company or any other person liable) may be
placed to the credit of a suspense account with a view to preserving the rights of the
Security Holder to prove for the whole of its claims against the Company or against any other
person liable or may be applied in or towards satisfaction of the Secured Liabilities in such
manner and order as the Security Holder may in its discretion decide.
	 
	20.10	 	The Company agrees to be bound by the other terms of this deed notwithstanding that any
charges contained in this deed may be terminated or released or may be or become invalid or
unenforceable against the Company whether or not the deficiency is known to the Security
Holder.
	 
	20.11	 	Any appointment or removal of a Receiver and any consents under this deed may be made or
given in writing signed or sealed by any successors or assigns of the Security Holder and
accordingly the Company hereby irrevocably appoints each successor and assign of the Security
Holder (and their directors, officers or managers and any person authorised by their
directors) to be its attorney in the terms and for the purposes set out in clause 5.
	 
	20.12	 	Any liability or power which may be exercised or any determination which may be made under
this deed by the Security Holder may be exercised or made in its absolute and unfettered
discretion and it shall not be obliged to give reasons therefor.

28

 

	20.13	 	Unless expressly provided for in this deed no express term of this deed is enforceable
pursuant to the Contracts (Rights of Third Parties) Act 1999 by any person who is not a party
to this deed.
	 
	20.14	 	If the Security Holder receives notice of any subsequent Encumbrance affecting the Mortgaged
Property or any part thereof, the Security Holder may open a new account for the Company. If
it does not do so then, unless the Security Holder gives express written notice to the
contrary to the Company, it shall nevertheless be treated as if it had opened a new account at
the time when it received such notice and as from that time all payments made by or on behalf
of the Company to the Security Holder shall be credited or be treated as having been credited
to the new account and shall not operate to reduce the amount due from the Company to the
Security Holder at the time when it received such notice.
	 
	21.	 	DEFINITIONS AND INTERPRETATION
	 
	21.1	 	In this deed any words whose meaning is defined in the Financing Agreement shall have the
same meaning.
	 
	21.2	 	In this deed the following words shall have the meaning set out after each of them:

“Act of Default” in relation to the Company, any event set out in clause 6.1.

“Administrator” Any person appointed under Schedule B1 of the Insolvency Act 1986 to
manage the Company’s affairs, business and property.

“Collateral instrument” Notes, bills of exchange, certificates of deposit and other
negotiable and non-negotiable instruments, guarantees and any other documents or
instruments which contain or evidence an obligation (with or without security) to
pay, discharge or be responsible directly or indirectly for, any liabilities of any
parson and includes any document or instrument creating or evidencing an
Encumbrance.

“Debt” has the same meaning as in the Financing Agreement.

“Encumbrance” Any mortgage, charge, pledge, lien, assignment, hypothecation,
security interest, title retention, flawed asset agreement, preferential right,
trust arrangement or other security arrangement, whether by law or agreement.

“Environment”

	 	(1)	 	Land, including, without limitation, surface land, sub-surface
strata, sea bed and river bed under water (as defined in paragraph (2)
immediately below) and natural and man-made structures;
	 
	 	(2)	 	water, including, without limitation, coastal and inland
waters, surface waters, aquatic sediment, ground waters and water in drains and
sewers;

29

 

	 	(3)	 	air, including, without limitation, air inside buildings and
other natural and man-made structures above or below ground; and
	 
	 	(4)	 	any living systems or organisms supported by the media set out
in (1), (2), or (3) above.

“Environmental Claim” in relation to the Environment and Environmental Laws any
written claim, demand, suit or notice from a third party or any order of a court of
competent jurisdiction; or any suit, claim, demand or notice from any Environmental
Regulator or any charge or condition imposed by any Environmental Regulator or any
notice served by any Environmental Regulator requiring remediation or any written
indication from any Environmental Regulator that a requirement to carry out
Remediation will be imposed.

“Environmental Laws” All European Community, national, state, federal, regional or
local laws, common law, statutes, ordinances, directives, directions, regulations,
notices, relevant clean-up standards, judgments, decrees or orders, codes of
practice, the requirements and conditions of all Environmental Licenses both express
and implied, covenants, agreements, circulars, guidance notes, judicial and
administrative interpretations of each of the foregoing concerning (without
limitation) the protection of human health or the Environment or the conditions of
the workplace and worker health and safety and process safety, or the generation,
transportation, storage, treatment or disposal of any Relevant Substance, as
enacted, amended, replaced or supplemented from time to time.

“Environmental Licence” Any permits, consents, licences, certificates, notices,
filings, lodgements, agreements, directions, declarations, exemptions, variations,
renewals and amendments and other authorisations and approvals required or provided
under Environmental Law.

“Environmental Regulator” Any governmental entity or other public or quasi public
authority or privatised utility having responsibility for any matters concerning the
Environment or Environmental Law.

“Financing Agreement” The agreement for the sale and purchase of Debts and/or a
conditional sale agreement and/or any other type of agreement between the Company
and the Security Holder, details of which are set out in the Sixth Schedule and any
amendments or alternations to it or them and any replacement of it which may be
agreed between the Company and the Security Holder.

“Fixed Charge Debts” All the Company’s Non-Vesting Debts and their respective
Related Rights and all the Company’s Floating Charge Debts following the conversion
of the floating charge thereon into a fixed charge.

“Floating Charge Debts” All sums due and owing or accruing due and owing to the
Company whether or not on account of its trading both present and future except:

30

 

	 	(1)	 	Fixed Charge Debts (if any); and
	 
	 	(2)	 	any Debts whilst they remain absolutely and effectively vested
in or held on trust for the Security Holder under the Financing Agreement and
whether such vesting results from a legal or equitable assignment.

“Group Company” The Company and its Subsidiaries, its holding company (as defined in
Section 736 of the Companies Act 1985) and the Subsidiaries of its holding company.

“Insolvent” The happening of any of the following events in relation to the Company
or, if the Company be a limited liability partnership, in relation to any partner
therein:

	 	(1)	 	a distress or execution being levied on or issued against any
of the Mortgaged Property;
	 
	 	(2)	 	entering or seeking to enter into any scheme of arrangement of
its affairs or composition in satisfaction of its or his debts with its or his
creditors whether in accordance with the Insolvency Act 1986 or otherwise;
	 
	 	(3)	 	the taking of any action for its winding up, dissolution or
re-organisation (otherwise than for the purposes of an amalgamation or
reconstruction while solvent on terms previously approved in writing by the
Security Holder) or the taking of any action for the appointment of a Receiver,
administrative receiver, Administrator, trustee or similar officer over it or
him of all or any part of its or his revenue or assets;
	 
	 	(4)	 	a petition being presented or an order being made for the
winding up of the Company;
	 
	 	(5)	 	the Security Holder receiving from any person a notice of
intention to appoint an Administrator, an Administrator being appointed, a
petition being presented, an application made, an administration order being
sought on the basis of an undertaking to present a petition, or any other step
being taken for the purpose of the appointment of an Administrator or the
Security Holder reasonably believing that any such petition, application or
other step is imminent or an administration order being made in relation to the
Company;
	 
	 	(6)	 	a meeting of creditors being called for winding up the Company
or for any other purpose referred to in the Insolvency Act 1986;
	 
	 	(7)	 	a statutory demand under the Insolvency Act 1986 being served;
	 
	 	(8)	 	an encumbrancer taking possession of any part of the
undertaking or property of the Company or of a partner or a Receiver being
appointed over the whole or any part of the assets of the Company or a partner;

31

 

	 	(9)	 	entering into any informal arrangement or composition with or
for the benefit of the Company’s or a partner’s general body of creditors;
	 
	 	(10)	 	being unable to pay its or his debts as they become due;
	 
	 	(11)	 	being deemed insolvent under the Insolvency Act 1986;
	 
	 	(12)	 	the issue of a statutory demand or a bankruptcy petition
against any partner;
	 
	 	(13)	 	applying for a Moratorium or entering into a standstill with
respect to all or any class of its debts or announcing an Intention to do so.

“Insurances” All present and future contracts or policies of insurance (including
life assurance policies) taken out by the Company or in which the Company from time
to time has any Interest.

“Intellectual Property” All patents, trade marks and service marks (whether
registered or not) trade names, registered designs, design rights including
applications for and rights to apply for any of the aforesaid matters,
semi-conductor topography rights, database rights, copyrights, computer programs,
know-how, trade secrets and all other intellectual or intangible property or rights
and all licences, agreements and connected rights relating to intellectual and
intangible property, in each case now or from time to time hereafter owned by the
Company, including any renewals, revivals or extensions thereof and wherever
subsisting in the world and the Company’s licences and rights to use or exploit any
of the aforesaid owned or possessed by any third party.

“Moratorium” A moratorium in respect of the Company under Schedule Al to the
Insolvency Act 1986 (as introduced by the Insolvency Act 2000).

“Mortgaged Property” The subject matter of the mortgages and charges (or any or any
part of them, If the context so allows) created by this deed including those set out
in clause 2.

“Non-Vesting Debts” All or any Debts of the Company purchased or to be purchased by
the Security Holder pursuant to the Financing Agreement but which either (i) fail to
vest absolutely and effectively in the Security Holder for any reason, together with
the Related Rights to such Debts or (ii) are found to vest in the Security Holder by
way of security.

“Receiver” includes a receiver or manager or receiver and manager or an
administrative receiver as defined in Section 29(2) of the Insolvency Act 1989 or a
receiver of part only of the property of the Company or a receiver only of the
income arising from such property or from part of it or where the context so permits
an Administrator.

32

 

“Receivership Assets” Such part of the Mortgaged Property, not being the whole or
substantially the whole of the Company’s property, as the Security Holder may
specify.

“Related Rights” Has the same meaning as in the Financing Agreement.

“Relevant Substance” Any natural or artificial substance in solid or liquid form or
in the form of a gas or vapour whether alone or in combination with any substance
capable of causing harm to man or any other living organism supported by the
Environment or damaging the Environment or public health or welfare including, but
not limited to, any controlled, special, hazardous, toxic or dangerous waste.

“Remediation” Any and all investigating, sampling, analysing, removing, remedying,
cleaning-up, abating, containing or ameliorating the presence in or effect on the
Environment of any contamination or pollution including, without limitation, the
removal, treatment and disposal of material and the treatment and monitoring of
ground waters and gases and emissions to air and the obtaining of expert technical
and legal advice (including all project management functions) in relation thereto.

“Remittance” Cash, cheques, bills of exchange, negotiable and non negotiable
instruments, letters of credit, orders, drafts, promissory notes, electronic
payments and any other instruments, methods or forms of payment or engagement.

“Secured Liabilities” Both the Secured Monies and the obligations and liabilities
referred to in clause 1.1.2.

“Secured Monies” All the monies which now or at any time in future may be owing due
and/or payable (but remaining unpaid) by the Company to the Security Holder in any
manner and for any reason on any account; Secured Monies include all such monies due
by the Company, either alone or jointly with any other person or on any partnership
account (even though the whole of any part of such monies is represented or secured
by any mortgages, guarantees, trust receipts, bills of exchange, leasing, hire or
conditional sale agreements, assignments, agreements for discounting or factoring of
debts or any other agreements or securities) and whether or not any of them have or
has fallen due or become payable and whether or not default shall have been made in
respect thereof; Secured Monies also means any of the following items, whether now
or in the future:

	 	(1)	 	all monies due or payable under the Financing Agreement or any
other agreement between the Company and the Security Holder whether or not for
the sale and purchase of debts;
	 
	 	(2)	 	all monies which the Security Holder can charge to the Company
and all costs, charges and expenses incurred by the Security Holder after
default in payment of any such monies or of breach by the Company of any of the
provisions of this deed;

33

 

	 	(3)	 	the charges of surveyors and/or solicitors instructed by the
Security Holder in connection with any part of the Mortgaged Property;
	 
	 	(4)	 	all advances which the Security Holder has made or shall make
to the Company;
	 
	 	(5)	 	any indebtedness now or hereafter to be incurred by the
Security Holder for or at the request of the Company, including all monies
which the Security Holder shall pay or become liable to pay for or on account
of the Company or any other person at the request or order of the Company or
under its authority, either alone or jointly with any other person and whether
or not by any of the following:

	 	5.1	 	the Security Holder making direct advances; or
	 
	 	5.2	 	the Security Holder drawing, accepting,
endorsing, paying or discounting any Remittance; or
	 
	 	5.3	 	the Security Holder entering into any bond,
guarantee, indemnity or letter of credit; or
	 
	 	5.4	 	the Security Holder confirming orders; or
	 
	 	5.5	 	the Security Holder otherwise accepting any
other liability for or on behalf of the Company;

	 	(6)	 	all costs charges and expenses which the Security Holder may
from time to time incur in:

	 	6.1	 	stamping, perfecting, registering or enforcing
this security; or
	 
	 	6.2	 	the negotiations for the preparation and
execution of this deed and the Financing Agreement or any priority
arrangement, waiver or consent in respect of them; or
	 
	 	6.3	 	obtaining payment or discharge of Secured
Monies; or
	 
	 	6.4	 	paying any rent, rates, taxes or outgoings for
the Mortgaged Property; or
	 
	 	6.5	 	insuring, repairing, maintaining, managing or
realising any part of the Mortgaged Property; or
	 
	 	6.6	 	the preservation or exercise of any rights
under or in connection with this deed or any attempt to do so; or
	 
	 	6.7	 	giving a discharge or release of this security;
or

34

 

	 	6.8	 	dealing with or obtaining advice about any
other matter or question arising out of or in connection with this
deed;

with the Intention that the Security Holder shall be afforded a full
complete and unlimited indemnity against all costs, charges and expenses
paid or incurred by it and whether arising directly or indirectly in respect
of this security or of any other security held by the Security Holder for
the Secured Monies and such costs, charges and expenses shall include the
appropriate proportion of the salaries, bonuses, national insurance and
direct expenses of any staff or officers of the Security Holder and the fair
and reasonable proportion of the overheads of the Security Holder
attributable to such staff and officers;

	 	(7)	 	all monies expended by any attorney appointed under clause 5.4
in exercising his powers;
	 
	 	(8)	 	interest on all monies due and owing to the Security Holder at
such rate as may from time to time be payable pursuant to any agreement or
arrangement relating thereto, and in the absence of any agreement or
arrangement at four per cent above the Base Rate from time to time of Barclays
Bank Plc accruing from day to day and compounded monthly.

“Securities” All stocks, shares, bonds and securities of any kind whatsoever and
whether marketable or otherwise and all other interests (including but not limited
to loan capital) both present and future held by the Company in any person and
includes all allotments, rights, monies, benefits, advantages and other property
whatsoever at any time accruing, offered or arising in respect of or incidental to
the same and all money or property offered at any time by way of dividend,
conversion, redemption, bonus, substitution preference, option, exchange or
otherwise in respect thereof.

“Security Holder” Where the context permits includes its officers, agents and
representatives.

“Security Holder’s Group” The Security Holder, its Subsidiaries, its holding company
(as defined in Section 736 of the Companies Act 1985) and the Subsidiaries of its
holding company.

“Subsidiary”

	 	(1)	 	A subsidiary within the meaning of Section 736 of the Companies
Act 1985; and
	 
	 	(2)	 	unless the context otherwise requires, a subsidiary undertaking
within the meaning of Sections 258-260 of the Companies Act 1985 as substituted
by Section 21 of the Companies Act 1989.

In the construction and interpretation of this deed:

35

 

	 	21.3.1	 	the singular shall include the plural and vice versa; reference to one gender shall
include a reference to any other genders;
	 
	 	21.3.2	 	references to persons shall be treated as including individuals, firms, partnerships,
corporations, organs of government, whether local, national or supra national and any
other entity recognised by law;
	 
	 	21.3.3	 	references to any Act of Parliament shall be treated as including each Act as
amended, modified or re-enacted from time to time and all rules, regulations, orders
and subordinate legislation made in accordance with it;
	 
	 	21.3.4	 	references to “clauses” and to “schedules” are to those in this deed unless otherwise
stated;
	 
	 	21.3.5	 	where the Company has an obligation to carry out an act then it shall be fully
responsible for the costs and expenses of doing so;
	 
	 	21.3.6	 	where the Security Holder acts in accordance with this deed the Company will
indemnify the Security Holder against all costs and expenses incurred;
	 
	 	21.3.7	 	where any discretion is vested in a Receiver or the Security Holder it shall be
treated as an absolute discretion;
	 
	 	21.3.8	 	each of the provisions of this deed shall be severable and distinct from one another;
	 
	 	21.3.9	 	references to this “deed” and other documents referred to in it includes any
supplemental or collateral document to each of them or which is entered into pursuant
to each of them and any document varying, supplementing, novating or replacing the same
from time to time;
	 
	 	21.3.10	 	references to “charges” shall be treated as references to the mortgages and/or
charges created by this deed;
	 
	 	21.3.11	 	references to this “security” shall be treated as reference to the security created
by this deed;
	 
	 	21.3.12	 	headings to clauses are for reference only and shall not affect the Interpretation
of this deed;
	 
	 	21.3.13	 	the meaning of general words introduced by the word “other” or the word “otherwise”
shall not be limited by reference to any preceding word or enumeration indicating a
particular class of acts, matters or things.

36

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00130-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00130-of-00352.parquet"}]]