Document:

exv10w3

Exhibit 10.3

2010 AMENDED AND RESTATED

REVOLVING AND NON-REVOLVING

CREDIT LOAN AGREEMENT

     THIS 2010 AMENDED AND RESTATED REVOLVING AND NON-REVOLVING CREDIT LOAN AGREEMENT is made and
entered into as of March 4, 2010, by THE NATIONAL BANK OF SOUTH CAROLINA, its successors and
assigns (the “Lender”), and ARBORGEN, LLC, a Delaware limited liability company, its
successors and assigns (the “Borrower”) to amend and restate in its entirety that certain
Revolving Credit Loan Agreement dated as of November 30, 2007, as amended by First Amendment dated
as of June 15, 2008, and as Amended and Restated on December 16, 2008 (as amended and restated, the
“Agreement”).

RECITALS:

     WHEREAS, pursuant to a commitment letter dated October 18, 2007, Lender made to Borrower a loan
(the “Loan”) in the original principal amount of up to Ten Million Five Hundred Thousand and 00/100
Dollars ($10,500,000.00) evidenced by a revolving promissory note dated November 30, 2007
(“Original Revolving Note”) in the amount of Ten Million and 00/100 Dollars ($10,000,000.00) and an
Application for Letter of Credit (“Letter of Credit Obligation”) in the amount of Five Hundred
Thousand and 00/100 Dollars ($500,000.00) (the Revolving Note and the Letter of Credit Obligation
together with any and all extensions, renewals, and modifications thereof collectively, the
“Original Note”); and

     WHEREAS, Borrower and Lender entered into an amended commitment letter dated November 24, 2008
whereby Lender agreed to increase the Original Revolving Note to Fifteen Million and 00/100 Dollars
($15,000,000.00) evidenced by a replacement revolving promissory note dated December 16, 2008 in
the amount of Fifteen Million and 00/100 Dollars ($15,000,000.00) (“2008 Revolving Note”) with no
change to the existing Letter of Credit Obligation (the Revolving Note and existing the Letter of
Credit Obligation together with any and all extensions, renewals, and modifications thereof
collectively, the “Note”); and

     WHEREAS, Borrower and Lender entered into an amended commitment letter dated
February 24, 2010 whereby Lender has agreed to increase the 2008
Revolving Note to $16,500,000 (“Revolving Note”), continue the Credit Obligation at $500,000 and to grant a new
Non-Revolving Capital Expenditure Line of Credit in the amount of $1,500,000 (“Non-Revolving
Note”) (the Revolving Note, the Letter of Credit Obligation and the Non-Revolving Note together
with any and
all extensions, renewals, and modifications thereof collectively, the “Note”); and

     WHEREAS,
the parties agree that the amendments to the Loan and this Agreement do not constitute a
novation.

     NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

 

ARTICLE 1

DEFINITIONS

     The following words shall have the following meanings when used in this Agreement. Terms not
otherwise defined in this Agreement shall have the meanings attributed to such terms in the South
Carolina Uniform Commercial Code. All references to dollar amounts shall mean amounts in lawful
money of the United States of America.

     Advances mean a disbursement of loan proceeds pursuant to this Agreement.

     Affiliate means a person or entity which directly or indirectly through one or more intermediaries
controls, or is controlled by, or is under common control with, another person or entity; For
purposes hereof, “control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of an entity, through the ownership of equity or
voting interests.

     Borrowing Base shall mean the lesser of (i) Sixteen Million Five Hundred Thousand ($16,500,000)
Dollars, and (ii) the aggregate of 75% of the Eligible Accounts, 50% of the Eligible Inventory,
100% of the Eligible Certificates of Deposit and 50% of the Eligible Real Estate MINUS the
outstanding balance on the Non-Revolving Note.

     Change
of Control shall mean any merger, consolidation, reorganization, recapitalization or share
exchange, or any transaction or series of related transactions resulting in the sale or issuance of
ownership interests or any rights to purchase ownership interests of Borrower by Borrower, or any
transaction or series of related transactions resulting in the sale, transfer, assignment or other
conveyance or disposition of any ownership interests or any rights to ownership interests of
Borrower by any holder or holders thereof and, as a result thereof in either case, (a) the
Investors collectively (i) hold less than 75% of the voting ownership interests of Borrower,
computed on a fully diluted basis; or (ii) fail to own voting ownership interests of Borrower in an
amount sufficient to elect, or fail to have the right and power to designate, at least a majority
of the members of the Board of Directors of Borrower or (b) International Paper Company,
MeadWestvaco Corporation and their Affiliates, collectively hold less than 50% of the voting
ownership interests of Borrower, computed on a fully diluted basis. Transfer of ownership interests
among the Investors shall not constitute a Change in Control so long as International Paper
Company, MeadWestvaco Corporation and their Affiliates, considered in the aggregate, hold not less
than 50% of the voting ownership interests of Borrower, computed on a fully diluted basis.

     Collateral means all assets of the Borrower located in the United States of America, including all
real estate and fixtures, tangible and intangible personal property, Accounts, Inventory and
certificates of deposit, other than Excluded Property as defined in the Amended and Restated
Security Agreement of even date between Borrower and Lender.

     Debt Coverage means the number resulting from dividing the sum of [net income plus depreciation
plus amortization expenses plus interest expenses plus research and development expenses] by
[required principal and interest payments].

     Eligible Accounts shall have the meaning provided in Section 2.2

     Eligible Certificates of Deposit shall mean certificates of deposit owned by Borrower and issued by
Lender and pledged by Borrower to Lender.

     Eligible Inventory shall have the meaning provided in Section 2.3.

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     Eligible Real Estate shall have the meaning provided in Section 2.4.

     Investors mean International Paper Company, MeadWestvaco Corporation, Rubicon Industries USA, LLC
or any of their respective Affiliates.

     Letter of Credit means the letter of credit in the amount of $500,000 issued by Lender to secure
Borrower’s credit card obligations.

     Loan Documents shall mean and include without limitation this Agreement, the Note, the mortgages,
the Security Agreement, Environmental Indemnity Agreement, financing statements, assignment of
rents, leases and profits, Borrowing Base Certificate and all other documents executed or delivered
now, in connection with the Loan, in connection with the increase in credit, or in the future in
connection with the Loan.

     Material Adverse Effect shall mean a material adverse effect on any of (a) the operations,
business, assets, properties or financial condition of the Borrower and its subsidiaries taken as a
whole; (b) the ability of Borrower to perform any of its obligations under this Agreement or any of
the other Loan Documents; (c) the legality, validity or enforceability of this Agreement or any of
the other Loan Documents; (d) any rights and remedies of the Lenders under this Agreement or any of
the other Loan Documents; or (e) the validity, perfection or priority of a lien in favor of the
Lender on any material portion of the Collateral.

     Net Worth shall mean the “Preferred interest of member company” plus “Members’ equity interest”
without deduction or addition of “Accumulated other comprehensive loss” (as each term is defined by
Borrower’s independent accountants and shown on Borrower’s annual audited financial statements). By
way of illustration, the Net Worth shown on Borrower’s March 31, 2009 Consolidated Balance Sheet
which is attached as an exhibit to this commitment letter is $6,534,897 (Preferred interest of
member company) plus $19,594,214 (“Members’ equity
interest) for a Net Worth of $26,129,111.

     Permitted Indebtedness shall mean:

               (i) the indebtedness and other obligations to the Lender;

               (ii) indebtedness under credit cards in an amount not to exceed $500,000 at any time
outstanding; and

               (iii) other indebtedness of Borrower, including purchase money indebtedness or capital
lease obligations, not to exceed $250,000 annually.

     Permitted Investments shall mean:

               (i) investments in cash and cash equivalents;

               (ii) demand deposit accounts and certificates of deposit of Borrower;

               (iii) investments (including debt obligations) of Borrower received in connection with the
bankruptcy or reorganization of suppliers, customers and other account debtors

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and in settlement of delinquent obligations of, and other disputes with, customers, suppliers and
other Account Debtors arising in the ordinary course of business;

               (iv) receivables owing to Borrower created or acquired in the ordinary course of business and
payable on customary trade terms of such;

               (v) advances by Borrower to employees, officers, directors and managers in the ordinary
course of business for reasonable business expenses actually incurred; and

               (vi) extensions
of Borrower of trade credit in the ordinary course of business and
consistent with past practices.

Permitted Liens shall mean:

               (i) liens on the assets or properties of Borrower for priority claims imposed by
governmental requirements that are incidental to the conduct of business or the ownership
of properties and assets (including, without limitation, mechanic’s, warehousemen’s,
attorneys’ and statutory landlords’ liens) and deposits, pledges or liens to secure
workers’ compensation obligations, unemployment insurance or social security insurance,
statutory or contractual obligations, surety or appeal bonds or other liens of like
general nature incurred in the ordinary course of business and not in connection with the
borrowing of money; provided, however, that in each case, the obligation secured thereby
shall not be overdue, or, if overdue, is being contested in good faith and adequate
reserves have been set up by Borrower as the case may be;

               (ii) liens securing the payments of taxes, assessments and governmental charges or levies
that either (a) are not delinquent, or (b) are being contested in good faith by
appropriate legal or administrative proceedings and as to which adequate reserves have
been set aside on their books, and so long as during the period of any such contest,
Lender shall suffer no loss of any material privilege of doing business or any other
right, power or privilege necessary or otherwise material to the operation of its business;

               (iii) purchase money liens and capital lease obligations securing indebtedness of Borrower
for Permitted Indebtedness;

               (iv) liens consisting of zoning restrictions, easements, licenses, covenants and other
restrictions affecting the use of Borrower’s real property, which do not: (i) materially
impair the use of such property, or (ii) materially lessen the value of such property for
the purposes for which the same is held by Borrower;

               (v) bankers liens’, rights of setoff and similar liens incurred on deposits made in the
ordinary course of business;

               (vi) any interest or title of a lessor or sublessor under any operating lease of Borrower
to the extent such interest or title relates solely to the assets or properties leased
pursuant to such operating lease;

               (vii) liens in favor of the Lender;

               (viii) licenses and sublicenses granted by Borrower in the ordinary course of business; and

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               (ix) extensions,
renewals and replacements of liens referred to above.

          Special Collateral means collectively, (i) any permit or license or any contractual obligation
entered into by Borrower (A) that prohibits or requires the consent of any person other than
Borrower which has not been obtained as a condition to the creation by Borrower of a lien on any
right, title or interest in such permit, license or contractual obligation related thereto or (B)
to the extent that any requirement of law applicable thereto prohibits the creation of a lien
thereon, but only, with respect to the prohibition in (A) and (B), to the extent, and for as long
as, such prohibition is not terminated or rendered unenforceable or otherwise deemed ineffective by
the UCC or any other requirement of law, (ii) Collateral owned by Borrower that is subject to a
Permitted Lien if the contractual obligation pursuant to which such lien is granted prohibits or
requires the consent of any person other than Borrower which has not been obtained as a condition
to the creation of any other lien on such equipment.

          Tangible Net Worth shall mean the “Preferred interest of member company” plus “Members’ equity
interest” without deduction or addition of “Accumulated other comprehensive loss” and less
“Intangible Assets, net” (as each term is defined by Borrower’s independent accountants and shown
on Borrower’s annual audited financial statements). By way of illustration, the Tangible Net Worth
shown on Borrower’s March 31, 2009 Consolidated Balance Sheet which is attached as an exhibit to
this commitment letter is $6,534,897 (Preferred interest of member company) plus $19,594,214
(“Members’ equity interest) less $4,041,053 (Intangible Assets, net) for a Tangible Net Worth of
$22,088,058. Borrower shall maintain a Tangible Net Worth of not less than $16,000,000

ARTICLE 2

THE LOAN

     Section 2.1 The Loan. Lender agrees, upon the terms and subject to the conditions contained
in this Agreement, to make Advances to Borrower on the Non-Revolving Note and on the Revolving Note
from time to time during the Term of this Agreement, provided that the aggregate amount of such
Advances do not exceed the Borrowing Base. The Loan and the obligation of Borrower to repay the
same with interest shall be evidenced by the Note, as defined collectively in the preamble. The
Revolving Note and the Non-Revolving Note shall be dated the date hereof and shall bear interest,
prepayment options, late charges and be repayable as provided therein. Lender has issued the Letter
of Credit in connection with the Application for Letter of Credit.

     Section 2.2 Eligible Accounts. All of the Accounts owned by Borrower reflected in the most
recent Borrowing Base Certificate delivered by Borrower to Lender
shall be “Eligible Accounts” for
purposes of this Agreement. Eligible Accounts shall not include any Account of
Borrower:

     (a) that does not arise from the sale of goods or the performance of services by Borrower in the
ordinary course of its business;

     (b) (i) upon which Borrower’s right to receive payment is not absolute or is contingent upon the
fulfillment of any condition whatsoever, or (ii) as to which Borrower is not able to bring suit or
otherwise enforce its remedies against the Account Debtor through judicial process, or (iii) if the
Account represents a progress billing consisting of an invoice for goods sold or used or services

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rendered
pursuant to a contract under which the Account Debtor’s obligation to pay that invoice is
subject to Borrower’s completion of further performance under such contract;

     (c) to the extent that any defense, counterclaim, contra, setoff or dispute is asserted as to such
Account (but only to such extent);

     (d) that is not a true and correct statement of bona fide indebtedness incurred in the amount of
the Account for merchandise sold to or services rendered and accepted by the applicable Account
Debtor;

     (e) that (i) is not owned by Borrower, or (ii) is subject to any lien of any other person, other
than liens in favor of Lender and Permitted Liens;

     (f) that is the obligation of an Account Debtor that is the United States government or a political
subdivision thereof, or any state, county or municipality or department, agency or instrumentality
thereof unless Lender, in its sole discretion, has agreed to the contrary in writing and Borrower,
if necessary or desirable, has complied with respect to such obligation with the Federal Assignment
of Claims Act of 1940, or any applicable state, county or municipal law restricting the assignment
thereof with respect to such obligation;

     (g) that is the obligation of an Account Debtor located in a foreign country unless payment thereof
is assured by a letter of credit assigned and delivered to Lender, satisfactory to Lender as to
form, amount and issuer;

     (h) to the extent Borrower is liable for goods sold or services rendered by the applicable Account
Debtor to Borrower but only to the extent of the potential offset;

     (i) that arises with respect to goods that are delivered on a cash-on-delivery basis or placed on
consignment, guaranteed sale or other terms by reason of which the payment by the Account Debtor is
or may be conditional;

     (j) that
is in default; provided, that, without limiting the generality of the foregoing, an
Account shall be deemed in default upon the occurrence of any of the following:

     (k) the Account is not paid within sixty (60) days following its original invoice date;

     (l) the Account Debtor obligated upon such Account suspends business, makes a general assignment
for the benefit of creditors or fails to pay its debts generally as they come due; or

     (m) a petition is filed by or against any Account Debtor obligated upon such Account under any
bankruptcy law or any other federal, state or foreign (including any provincial) receivership,
insolvency relief or other law or laws for the relief of debtors;

     (n) that is the obligation of an Account Debtor for which fifty percent (50%) or more of the Dollar
amount of all Accounts owing by that Account Debtor are ineligible under the other criteria set
forth in this Section;

     (o) as to which Lender’s lien thereon is not a first priority perfected lien;

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     (p) as to which any of the representations or warranties in the Loan Documents are untrue in any
material respect;

     (q) to
the extent such Account is evidenced by a judgment, Instrument or Chattel Paper;

     (r) to the extent that such Account, together with all other Accounts owing by such Account Debtor
and its Affiliates as of any date of determination exceed 20% of all Eligible Accounts;

     (s) that is payable in any currency other than Dollars; or

     (t) that is an obligation of an account debtor whose credit is not acceptable to Bank in its
reasonable discretion.

     Section 2.3 Eligible Inventory. All of the inventory owned by the Borrower and reflected in
the most recent Borrowing Base Certificate delivered by Borrower to Bank shall be “Eligible
Inventory” for purposes of this Agreement, Eligible Inventory shall not include any Inventory
of Borrower that:

     (a) is not owned by Borrower free and clear of all liens and rights of any other person (including
the rights of a purchaser that has made progress payments and the rights of a surety that has
issued a bond to assure Borrower’s performance with respect to that Inventory), except the liens in
favor of Bank and Permitted Liens;

     (b) (i) is located on premises owned or leased by Borrower and is not encumbered by a mortgage or
deed of trust, in each case in favor of Lender, or (ii) is located at an owned or leased location
subject to a mortgage in favor of a person other than Lender;

     (c) is placed on consignment or is in transit;

     (d) obsolete, slow moving (in excess of one year’s supply), unsalable, damaged or unfit for sale;
however, Reserve Seed Inventory that otherwise qualifies shall be deemed Eligible Inventory;

     (e) consists of display items or packing or shipping materials, manufacturing supplies, stores or
replacement parts;

     (f) consists of goods which have been returned by the buyer;

     (g) is
not of a type held for sale in the ordinary course of Borrower’s business;

     (h) is not subject to a first priority lien in favor of Lender;

     (i) breaches any of the representations or warranties pertaining to Inventory set forth in the
Loan Documents in any material respect;

     (j) consists
of any costs associated with “freight-in” charges, except those charges that are
customary in, and consistent with, Borrower’s historical accounting practices;

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     (k) consists of Hazardous Materials or goods that can be transported or sold only with licenses
that are not readily available;

     (l) is not covered by casualty insurance reasonably acceptable to Lender; or

     (m) is subject to any patent or trademark license requiring the payment of royalties or fees or
requiring the consent of the licensor for a sale thereof by Lender which has not been obtained.

     Section 2.4
Eligible Real Estate. All of the real estate owned by the Borrower and reflected
in the most recent Borrowing Base Certificate delivered by Borrower to Bank shall be
“Eligible Real Estate” for purposes of this Agreement. Eligible Real Estate shall not include any
Real Property of Borrower that:

     (a) is not owned or leased by Borrower free and clear of all liens and rights of any other person
except the liens in favor of Bank and Permitted Liens;

     (b) is not encumbered by a mortgage or deed of trust, in each case in favor of Lender;

     (c) if the real property is leased by Borrower, the Lender has not approved the term of the lease
and its form and the landlord has not given its written consent to the Lender’s leasehold mortgage;

     (d) Lender has not received a title insurance policy or title insurance commitment with all
conditions of issuance satisfied, in form satisfactory to Lender. Mortgaged parcels with title
insurance that excludes coverage for access or do not have an endorsement confirming that the
mortgaged parcel is the same as an identified tax parcel shall not be Eligible Real Estate, unless
Lender shall give a written waiver.

     (e) does not have a current appraisal satisfactory to Lender.

     (f) has delinquent real property taxes or assessments; or

     (g) is subject to a lis pendens, mechanic’s lien, a boundary dispute or is other similar
controversy.

     Section 2.5 Non-Revolving Note The proceeds of the Non-Revolving Note shall be used solely
by Borrower for capital expenditure purchases approved by Lender. Prior to any Advance under the
Non-Revolving Note, Borrower shall provide Lender with a detailed list of capital expenditures
supported by invoices.

     Section 2.6 Conditions Precedent to Each Advance. Lender’s obligation to make any Advance
to or for the account of Borrower under this Agreement is subject to the following conditions
precedent, with all documents, instruments, opinions, reports and
other items required under this Agreement to be in form and substance satisfactory to Lender:

     (a) Lender shall have received evidence that this Agreement and all Loan Documents have been duly
authorized, executed, and delivered by Borrower to Lender.

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     (b) Lender shall have received such opinions of counsel, supplemental opinions, and documents as
Lender may reasonably request.

     (c) The security interests in the Collateral shall have been duly authorized, created, and
perfected with first lien priority (subject to Permitted Liens) and shall be in full force and
effect.

     (d) Lender, at its option and for its sole benefit, shall have conducted an audit of Borrower’s
Accounts and Inventory

     (e) Borrower shall have paid to Lender all fees, costs, and expenses specified in this Agreement
and the Loan Documents as are then due and payable.

     (f) There shall not exist at the time of any Advance a condition which would constitute an Event of
Default under this Agreement.

     (g) With respect to an Advance under the Revolving Note, Borrower shall have delivered an accurate
and current Borrowing Base Certificate, in substantially the form attached hereto as Schedule 2.4,
certified by an officer of the Borrower.

     (h) With respect to an Advance under the Non-Revolving Note, Borrower shall have delivered to
Lender documentation related to the capital expenditure to be paid by the Advance which is
satisfactory to Lender and Lender has given its approval of such Advance.

     (i) Borrower shall have delivered to Lender Borrower’s most recent quarterly financial statement
within forty five (45) days of the quarter end and the most recent year end audited financial
statements within one hundred twenty (120) days of year end.

     Section 2.7
Making Loan Advances. Advances under the Revolving Note or the Non- Revolving Note may
be requested only in writing subject to the limitations set forth below. Each Advance shall be
conclusively deemed to have been made at the request of and for the benefit of Borrower (a) when
credited to any deposit account of Borrower maintained with Lender or (b) when advanced in
accordance with the instructions of an authorized person. Any request made after 2:00 PM on any
Business Day shall be treated as having been requested on the next succeeding Business Day. Under
no circumstances shall Lender be required to make any Advance in any amount less than $10,000.00.
Upon Lender’s determination that the Conditions Precedent have been satisfied, the Lender agrees to
make the Advance within twenty-four (24) hours of the request.

     Section 2.8 Mandatory Loan Repayments. Borrower agrees to make the following mandatory Loan
repayments:

     (a) If at any time the aggregate principal amount of the outstanding Advances shall exceed the
applicable Borrowing Base, Borrower shall immediately pay to Lender an amount equal to the
difference between the outstanding principal balance of the Advances and the Borrowing Base.

     (b) On or before February 28, 2011, Borrower shall pay to Lender in full the outstanding balance of
the Revolving Note and the Non-Revolving Note, including the aggregate unpaid principal amount of
all Advances then outstanding and all accrued unpaid interest, together with all other outstanding
applicable fees, costs and charges, if any, not yet paid.

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     (c) Borrower shall repay on demand all amounts outstanding on the Letter of Credit Obligation upon
written notice of Lender.

     (d) If during the term of the Loan, the aggregate new capital received by Borrower (through member
capital contributions or otherwise but excluding member capital contributions required pursuant to
Section 4.8) is between $10 million and $20 million, the maximum credit availability under the
Revolving Note shall be reduced from $16,500,000 to $11,500,000.

     (e) If during the term of the Loan, the aggregate capital raised by Borrower (through member
capital contributions or otherwise but excluding member capital contributions required pursuant to
Section 4.8) is greater than $20 million, the maximum credit availability under the Revolving Note
shall be reduced to $7,500,000 and the Borrower shall repay the Non-Revolving Note immediately.

     Section 2.9 Loan Account. Lender shall maintain on its books a record of account in which
Lender shall make entries for each Advance and such other debits and credits as shall be
appropriate in connection with the credit facility. Lender shall provide Borrower with periodic
statements of Borrower’s account, which statements shall be considered to be correct and
conclusively binding on Borrower unless Borrower notifies Lender to the contrary within thirty (30)
days after Borrower’s receipt of any such statement which Borrower deems to be incorrect.

     Section 2.10 Use of Proceeds of the Loan. Proceeds of the Revolving Note shall be used
solely for working capital needs of Borrower and other lawful corporate purposes. Proceeds of the
Non-Revolving Note shall be used solely for the capital expenditures approved by Lender.

     Section 2.11 Security. The obligations (collectively, the “Obligations”) of the
Borrower under the Loan Documents shall be secured by the following documents (collectively, the
“Security Documents”):

     (a) A first lien mortgage and security agreement (collectively, the “Mortgages”) granting
Lender a first mortgage lien on each parcel of real property owned in fee simple or leased by
Borrower and listed on Schedule 2.11 other than Borrower’s (1) Mississippi property consisting of
approximately one acre in the aggregate, (2) Evans County, Georgia leased property consisting of
approximately 29 acres, and (3) Colleton County, South Carolina leased property known as the
Gravano Tract (collectively, the “Real Property”).

     (i) Borrower shall deliver to Lender all mortgages required to be delivered pursuant to
Section 2.11(a)

     (ii) Borrower shall obtain appropriate endorsements for the Loan to the title insurance policies
more particularly set forth in Schedule 2.11(a)(ii)  insuring the first mortgage lien priority of
the Mortgages securing the Loan, or new policies as may be required by state law.

     (b) A leasehold mortgage granting Lender a leasehold mortgage on all leased Real
Property other than Borrower’s Evans County, Georgia leased property consisting of approximately 29
acres and Colleton County, South Carolina leased property known as the Gravano Tract and title
insurance for those leasehold mortgages which are appraised and included as may be required by
Lender for inclusion as Eligible Real Property.

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     (c) A
landlord consent in form satisfactory to Lender for each leased Real Property;
provided, however, a landlord consent shall not be required for Borrower’s Evans County Georgia
leased property consisting of approximately 29 acres and Colleton
County, South Carolina leased
property known as the Gravano Tract.

     (d) A first lien security interest in all fixtures attached to the Real Property

     (e) A first lien security interest in all tangible and intangible property of Borrower,
including without limitation Accounts, Inventory, and Certificates of Deposit;

     (f) A first assignment of leases, rents, and profits and security agreement with respect to
the Real Property;

     (g) UCC-1 financing statements (the “Financing Statements”) relating to the foregoing,
including local filings for fixtures, timber and farm products in respect of all parcels of Real
Property;

     (h) Such allocation of the Loans as may be required by the title insurance company and such
value allocation as may be required for the recordation of the mortages and deeds of trust in the
various states; and

     (i) All other documents and instruments which may be reasonably required by the Lender to
evidence or secure the Loan described in the commitment letter, as amended.

     Section 2.12 Special Collateral In the event that Borrower has Special Collateral,
Lender agrees to release such Special Collateral from the Lender’s lien after Lender has determined
in Lender’s reasonable discretion that such Collateral meets the definition of Special Collateral
and that the release is necessary for the conduct of Borrower’s ordinary course business.

     Section 2.13 Future Major Transaction Borrower contemplates a future major transaction
which would involve the Investors transferring some of their interests in Borrower and the addition
of new owners (a “Major Transaction”). After review of such documentation relating to the proposed
Major Transaction as Bank deems advisable in its reasonable discretion, Bank agrees not to
unreasonably withhold its approval of a Major Transaction which does not involve a Change in
Control. Notwithstanding any provision to the contrary herein [including the provisions of Section
4.6(g)], Bank hereby consents to a Major Transaction that (a) raises not less than Ten and 00/100
Million ($10,000,000.00) and (b) does not result in a Change in Control.

     Section 2.14 Investments in Foreign Subsidiaries Borrower has
historically made investments and contributions to its foreign subsidiaries (each “Foreign
Subsidiaries Investment”). After review of such documentation as Bank deems advisable in its
reasonable discretion, Bank agrees not to unreasonably withhold its approval of specific proposed
Foreign Subsidiaries Investments; however, Bank hereby agrees to Foreign Subsidiaries Investments
of up to $350,000 per month.

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ARTICLE 3

REPRESENTATIONS AND WARRANTIES

     Section 3.1 General Representations and Warranties of Borrower. To induce Lender to
extend credit to Borrower as provided herein, Borrower represents and warrants, which
representations and warranties shall continue until all indebtedness of Borrower to Lender arising
hereunder is paid in full, as follows:

     (a) Borrower is a Delaware limited liability company duly organized, validly existing, and in
good standing in its state of organization and in each state in which it owns real property, which,
on the date hereof these states are Delaware, South Carolina, Alabama, Arkansas, Florida, Georgia,
Mississippi and Texas.

     (b) The execution and delivery by Borrower of the Loan Documents and the performance by
Borrower of its obligations thereunder have been duly authorized by
all necessary member and/or
manager action and do not conflict with or constitute a violation of Borrower’s articles of
organization, operating agreement, or other organizational documents.

     (c) The Loan Documents have been duly executed and delivered on behalf of Borrower and
constitute legal, valid, and binding obligations of Borrower and are enforceable in accordance with
their respective terms, except as enforceability may be limited by bankruptcy, insolvency or laws
affecting creditors’ rights generally.

     (d) To the best knowledge of Borrower, the execution and delivery by Borrower of the Loan
Documents and the performance by Borrower of its obligations thereunder, do not and will not
violate any provisions of any existing law, regulation, order, injunction, or decree applicable to
Borrower or by which Borrower’s assets are bound, and do not and will not conflict with or
constitute a breach under any agreement to which Borrower is a party of by which Borrower or its
assets are bound in each case, which could have a Material Adverse Effect.

     (e) There are no actions, suits or proceedings pending or, to the best knowledge of Borrower,
threatened against or affecting Borrower or any of Borrower’s properties or assets before any court
or any governmental department, commission, board, agency or instrumentality, which, if determined
adversely to Borrower, would have a Material Adverse Effect.;

     (f) To the best knowledge of Borrower, except as created or to be created under or permitted
by the Loan Documents, there are no mortgages, deeds of trust, pledges, liens, security interests,
assignments or other charges or encumbrances of any nature whatsoever on the Property or any other
collateral for the Obligations, other than Permitted Liens.

     (g) To the best knowledge of Borrower, all material, written information and data furnished to
Lender by Borrower were, on the date such writings, information and data were exhibited or
furnished, in all material respects accurate and correct.

     (h) Borrower has filed all required foreign, federal, state, and local tax returns as they
have become due and has paid all taxes as shown on such returns or any assessments received by it
to the extent that such taxes or assessments have become due unless such taxes are being contested
in good faith by appropriate proceedings.

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     (i) Each of the financial statements of Borrower (“Financial Statements”) delivered to Lender,
fairly reflect, to the best knowledge of Borrower, the financial condition of Borrower as of the
date of the Financial Statements, and show all known liabilities, direct and contingent, of
Borrower as of the date stated. Borrower has made no investments in, have no interest in, loans
to, advances to, or guarantees of the obligations of any company, individual or other entity except
as disclosed in the Financial Statements and other than Permitted Liens and Permitted Indebtedness.

     (j) Each
Borrowing Base is accurate and accurately states the value of the Eligible Accounts
and Eligible Inventory. The Borrowing Base does not include any Accounts or Inventory which is
required to be excluded from the Borrowing Base pursuant to Article 2.

     (k) Compliance with Patriot Act. Neither Borrower nor any shareholder, member or
partner in Borrower nor any owner of a direct or indirect interest in Borrower (a) is listed on any
Government Lists (as defined below), (b) is a person who has been determined by competent authority
to be subject to the prohibitions contained in Presidential Executive Order No. 13224 (Sept. 23,
2001) or any other similar prohibitions contained in the rules and regulations of OFAC (as defined
below) or in any enabling legislation or other Presidential Executive Orders in respect thereof,
(c) has been previously indicted for or convicted of any felony involving a crime or crimes of
moral turpitude or for any Patriot Act Offense (as defined below), or (d) is not currently under
investigation by any governmental authority for alleged criminal activity. For purposes hereof, the
term “Patriot Act Offense” means any violation of the criminal laws of the United States of
America or of any of the several states, or that would be a criminal violation if committed within
the jurisdiction of the United States of America or any of the several states, relating to
terrorism or the laundering of monetary instruments, including any offense under (a) the criminal
laws against terrorism; (b) the criminal laws against money laundering, (c) the Bank Secrecy Act,
as amended, (d) the Money Laundering Control Act of 1986, as amended, or (e) the Patriot Act (as
defined herein). “Patriot Act Offense” also includes the crimes of conspiracy to commit, or
aiding and abetting another to commit, a Patriot Act Offense. For purposes hereof, “Patriot
Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, as the same may be amended from
time to time, and corresponding provisions of future laws. For purposes hereof, the term
“Government Lists” means (i) the Specially Designated Nationals and Blocked Persons Lists
maintained by Office of Foreign Assets Control (“OFAC”), (ii) any other list of terrorists,
terrorist organizations or narcotics traffickers maintained pursuant to any of the Rules and
Regulations of OFAC that Lender notified Borrower in writing is now included in “Governmental Lists”,
or (iii) any similar lists maintained by the United States Department of State, the United States
Department of Commerce or any other governmental authority or pursuant to any Executive Order of
the President of the United States of America that Lender notified Borrower in writing is now
included in “Governmental Lists”.

     (l) Neither the business nor the properties of Borrower are affected by any prior or existing
fire, explosion, accident, strike, lock-out or other labor disputes, storm, act of God or other
casualty (whether or not covered by insurance), adversely affecting such business or the properties
or operations of Borrower.

     (m) To the extent approvals of any kind are required, Borrower has obtained: (i) all
governmental approvals and authorizations, together with any required registrations or filings with
the appropriate governmental authorities; and (ii) all necessary consents, approvals, waivers,
notifications of tenants, creditors, lessors, and other nongovernmental persons required in
connection with the indebtedness secured hereby.

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     Section 3.2 Representations and Warranties Concerning the Real Property.
Borrower represents and warrants to Lender as of the date of this Agreement, as follows:

     (a) To the best knowledge of Borrower, Borrower has obtained all necessary certificates,
licenses and other approvals, governmental and otherwise, necessary
for the operation of the Real
Property and the conduct of its business and all required zoning, building code, land use,
environmental and other similar permits or approvals, all of which are in full force and effect as
of the date hereof and not subject to revocation, suspension, forfeiture or modification.

     (b) To the best knowledge of Borrower, the Real Property and the present and contemplated use
and occupancy thereof are in compliance in all material respects with all applicable zoning
ordinances, building codes, land use and environmental laws and other similar laws.

     (c) To the best knowledge of Borrower, the Real Property is served by all utilities required
for the current or contemplated use thereof. All utility service is provided by public utilities and
the Real Property has accepted or is equipped to accept such utility service.

     (d) Schedule 2.11 accurately describes all of the real property that Borrower owns or leases
and upon which inventory is located. Borrower agrees to notify Lender if Borrower acquires
additional owned or leased real property and to supplement and update Schedule 2.11 to add such
additional real property. Lender is authorized to file additional Financing Statements in the
locations of or relating to such additional real property interests. Borrower agrees to execute and
deliver a mortgage or deed of trust for each additional parcel of real property added to Schedule
2.11 other than any leased property where the delivery of such mortgage or deed of trust would
violate the terms of such underlying lease.

ARTICLE 4

COVENANTS OF THE BORROWER

     Section 4.1 General Affirmative Covenants. Borrower hereby covenants and agrees with
Lender that until such time as all indebtedness of Borrower to Lender arising hereunder is paid in
full, it shall:

     (a) Make all payments required under the Obligations as and when due.

     (b) Reserve and keep in force all licenses, permits, and franchises necessary for the proper
conduct of its business(es) and duly pay and discharge all taxes, assessments, and governmental
charges against the Property before the date on which penalties attach thereto, unless and to the
extent only that the same shall be contested in good faith and by appropriate proceedings. Upon
request of Lender, Borrower shall promptly provide
Lender with copies of receipts indicating the payment of such taxes, assessments, and
governmental charges.

     (c) Comply with all cash reserve requirements set forth in the Contribution Agreements between
Borrower, International Paper, Mead Westvaco, and Rubicon and in the Company’s operating agreement.

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     (d) Upon request by Lender, execute and deliver to Lender financing statements in form and
substance satisfactory to Lender to perfect or continue any and all security interests of Lender in
any collateral securing the Obligations.

     (e) After reasonable, prior notice, permit any representative or agent of Lender at Lender’s
sole cost and expense to examine and audit any or all of
Borrower’s books and records when requested
by Lender, at Lender’s sole cost and expense, during normal business hours.

     (f) Inform Lender immediately of any material adverse change in the financial condition of
Borrower. Borrower shall also promptly inform Lender of any litigation or threatened litigation
which might substantially affect Borrower’s financial condition.

     (g) Maintain Borrower’s property and equipment in a state of good repair in accordance with
past practices, normal wear and tear excepted and except for obsolete or unused equipment.

     (h) Pay all reasonable costs of closing the loan or loans contemplated hereunder and all
reasonable expenses of Lender with respect thereto including, but not
limited to, legal fees of
Lender’s counsel and including reasonable legal fees incurred by the Lender subsequent to the
closing of the loan or loans contemplated hereunder but incurred in connection with collection of
the Obligations, advances, recording expenses, intangible taxes (if any), other recording taxes,
expenses of foreclosure (including reasonable attorneys’ fees) and similar items, specifically
including reasonable attorneys’ fees and all reasonable expenses incurred by Lender in the defense
or prosecution of any litigation to which Lender becomes or is made a party because Lender is the
holder of the mortgage or security interest referred to in the Loan Documents.

     (i) Borrower shall notify Lender in writing within ten (10) days thereof (i) an Event of
Default, (ii) in the event of any default by Borrower of any obligation undertaken under any other
obligation to any other creditor or financial institution; (iii) should any mortgage, lien,
encumbrance or any other security instrument whatsoever be filed against the Collateral other than
Permitted Liens; (iv) of any actions, suits and proceedings before any court or governmental
department, commission, board, bureau, agency or instrumentality, domestic or foreign, which might
have a Material Adverse Effect; (v) in the event of any default by Borrower of any real estate
lease wherein Borrower is the tenant.

     (j) Borrower shall notify Lender immediately upon the breach of any condition contained in any
lease for all or any portion of the Real Property by any tenant thereunder, make all efforts to
have said breach cured by such tenant, and perform all obligations required of it under any of such
leases.

     Section 4.2 Borrower Information Covenants. Borrower hereby covenants and agrees with
Lender that until such time as all indebtedness of Borrower to Lender arising hereunder is paid in
full, it shall provide the following information to Lender:

     (a) Audited annual complete financial statements of Borrower prepared in accordance with
generally accepted accounting principles applied on a consistent basis and in accordance with the
same accounting principles and methods as are used by Borrower to report income and losses in
accordance with generally accepted accounting principles, including a balance sheet, income
statement, and statement of cash flow, compiled by certified public accountants reasonably
acceptable to Lender. The financial statements shall be in reasonable detail, setting forth

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comparative
figures for the preceding fiscal year, and include appropriate notes. The financial
statements shall be delivered within one hundred twenty (120) days of fiscal year end.

     (b) All annual federal income tax returns filed by Borrower, together with all supporting
schedules.

     (c) Quarterly financial statements in accordance with the same accounting principles and
methods as are used by Borrower to report income and losses in accordance with generally accepted
accounting principles (except for lack of footnotes and subject to year-end adjustments), including
a balance sheet, income statement, and statement of cash flow delivered within forty five (45) days
of the end of each quarter.

     (d) Monthly Borrowing Base Certificates meeting the requirements of this Loan Agreement
delivered to Lender by the fifth business day of each month.

     Section 4.3
Insurance Covenants. Borrower hereby covenants and agrees with Lender that
until such time as all indebtedness of Borrower to Lender arising hereunder is paid in full, it
shall:

     (a) Title Insurance. Provide ALTA mortgagee title insurance policies on each of the
parcels of Real Property which are owned in fee simple.

     (b) Maintenance of Insurance. Maintain at all times such insurance or evidence of
insurance as Lender may reasonably require, including but not limited to the following:

     (i) Casualty Insurance. Insurance against loss or damage by standard perils included
within the classification “All Risks Special Form Cause of Loss” (including coverage for damage
caused by windstorm and hail and coverage caused by earthquake). Such insurance shall (1) be in an
aggregate amount equal to the full replacement cost of the Property and fixtures (without out
deduction for physical depreciation), which for purposes of this Agreement shall mean actual
replacement value (exclusive of cost of excavations, foundations,
ground utilities and footings); (2) have deductibles acceptable
to Lender; (3) be paid annually in advance; (4) contain a
“Replacement Cost Endorsement” and an “Agreed Upon Amount Endorsement” with a waiver of
depreciation; and (5) include such other coverage endorsements as shall be required by Lender.

     (ii) Public Liability Insurance. Public liability insurance covering Borrower and
Contractor in form, amount, and coverage as may be required by Lender from time to time, issued by
insurance companies acceptable to Lender.

     (iii) Other Insurance. To obtain such other insurance as Lender may require, and to
deliver to Lender on request such certificates, policies, or other evidence of insurance as the
Lender may require.

     (iv) Leased Real Property. With respect to that leased Real Property where the
landlord is obligated to maintain insurance on such leased Real Property, Borrower shall not be
required to maintain insurance when such insurance is maintained by the landlord

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     (c) Borrower will contract with financially sound and reputable insurers. Such insurance shall
be in such minimum amounts that Borrower will not be deemed a co-insurer under applicable insurance
laws, regulations and policies and otherwise shall be in such amounts, contain such terms, be in
such forms and be for such periods as may be reasonably satisfactory to Lender. In addition, all
such insurance shall be payable to Lender as loss payee under a “standard” or “New York” loss payee
clause. Borrower shall maintain all such workers’ compensation or similar insurance as may be
required by law.

     (d) Collection
of Insurance Proceeds. To cooperate with Lender in obtaining for Lender
the benefits of any insurance or other proceeds lawfully or equitably payable to it in connection
with the transactions contemplated hereby and the collection of any indebtedness or obligations of
Borrower to Lender incurred hereunder (including the payment by Borrower of the expense of an
independent appraisal on behalf of Lender in case of a casualty affecting the Property). Lender
agrees that so long as no Default of Event of Default has occurred and is continuing, the insurance
proceeds relating to casualty loss to fixtures or buildings shall be deposited with Lender and paid
to Borrower for the repair or replacement of the fixtures and buildings that were damaged or
destroyed. In the Event of Default, such insurance proceeds may be held by Lender as cash
collateral for the Loan.

     Section 4.4
Net Worth Borrower shall maintain a Net Worth of not less than $20,000,000
and a Tangible Net Worth of not less than $16,000,000.

     Section 4.5 Distribution to Affiliates Borrower shall not make any distributions,
loans or advances to Borrower’s members or any Affiliate, without Lender’s prior written consent,
other than Permitted Investments and distributions by Borrower to its members in an amount
necessary to pay taxes due and owing by such member in respect of the income or profits of
Borrower.

     Section 4.6 Negative Covenants of the Borrower. Borrower hereby covenants and agrees
with Lender that until such time as all indebtedness of Borrower to Lender arising hereunder is
paid in full, that Borrower will not, without the written consent of Lender:

     (a) Permit or allow transfer, sale, or pledge of any interest in Borrower; Suffer or permit
dissolution or liquidation either in whole or in part or redeem or retire any membership interests.

     (b) Guarantee, endorse, or otherwise become surety for or upon the obligation of any person,
firm, or corporation, other than Permitted Indebtedness or Permitted Liens.

     (c) Create, incur or assume indebtedness other than Permitted Indebtedness.

     (d) Sell, transfer, mortgage, assign, pledge, lease, grant a security interest in, or encumber
any of Borrower’s assets, except sales in the ordinary course of Borrower’s
business, sale of assets that are obsolete or no longer used or useful in Borrower’s business
or trade-ins and assignments of delinquent accounts.

     (e) Merge or consolidate with any person.

     (f) Amend Borrower’s operating agreement without Lender’s consent which consent shall not be
unreasonably withheld.

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     (g) Allow any change in ownership in Borrower, including allowing existing Member to
disassociate from Borrower or admitting any new Member; however, the Investors may transfer
membership interests to Affiliates and among the Investors without the Lender’s consent and Rubicon
Industries USA, LLC and its Affiliates may disassociate without the Lender’s consent.

     (h) Enter into any lease of a material portion of a parcel of the Real Property subsequent to
the closing date, except leases satisfactory to the Lender.

     Notwithstanding anything to contrary, Lender hereby consents to a transfer of interest in
Borrower of up to ten percent (10%) interest in the aggregate measured from November 30, 2007. Any
additional transfers of interests in Borrower shall require: (i) Borrower to submit to Lender in
writing the information necessary, as determined in Lender’s sole discretion, to evaluate any such
transfer, and (ii) Lender’s prior written consent, which shall not be unreasonably withheld.

     Section 4.7 Patriot Act Compliance. Borrower will use its good faith and commercially
reasonable efforts to comply with the Patriot Act and all applicable requirements of governmental
authorities having jurisdiction of Borrower and the Property, including those relating to money
laundering and terrorism. Lender shall have the right to audit Borrower’s compliance with the
Patriot Act and all applicable requirements of governmental authorities having jurisdiction of
Borrower and the Property, including those relating to money laundering and terrorism. In the event
that Borrower fails to comply with the Patriot Act or any such requirements of governmental
authorities, then Lender may, at its option, cause Borrower to comply therewith and any and all
reasonable costs and expenses incurred by Lender in connection therewith shall be secured by this
Mortgage and the other Loan Documents and shall be immediately due and payable.

     Section 4.8 Member Contributions For fiscal year ending March 31, 2010, the member
owners of Borrower shall make cash equity contributions of $8.9 million for any research and
development expenditures of up to $11.9 million and shall contribute a matching amount for any
research and development expenditures over $11.9 million. For the seventeen month period from April
1, 2009 through August 31, 2010, the member owners of Borrower shall make cash equity contributions
that exceed the Borrower’s research and development expenditures by not less than $1.5 million. The
calculation of member capital contributions shall not include the Preferred Interest of
International Paper. Once Debt Coverage is equal to 1.1 or greater, any excess cash flow may be
allocated to research and development expenditures and the required member contributions shall be
reduced by the amount of such excess cash flow.

ARTICLE 5

EVENTS OF DEFAULT

     Section 5.1 Events of Default. Each of the following events shall constitute an Event
of Default under this Agreement:

     (a) (i) A failure to pay the Note in full on the Maturity Date, (ii) failure to make a
mandatory loan repayment pursuant to Section 2.6 within ten (10) days, or (iii) default in the
payment of any other installment of interest or principal or any other sum payable pursuant to any
Loan Document within ten (10) days of notice from Lender.

     (b) A draw upon the Letter of Credit by the beneficiary of the Letter of Credit;

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     (c) Borrower’s
failure to perform any other obligation, covenant or agreement in the Loan
Documents including this Loan Agreement beyond any applicable grace period, provided, however, that
if such obligation, covenant or agreement is not an obligation, covenant or agreement for the
payment of money and is susceptible of being cured by Borrower, no default shall be deemed to have
occurred so long as Borrower promptly commences to cure and diligently pursues such cure to
completion and such cure is completed within sixty (60) days.

     (d) The
dissolution or termination of existence of Borrower;

     (e) Any proceeding is commenced by Borrower under any bankruptcy or insolvency laws;

     (f) Any proceeding is commenced against Borrower under any bankruptcy or insolvency laws and
such proceeding is not dismissed within thirty (30) after such commencement;

     (g) The transfer or assignment by Borrower of assets for the benefit of any one or more
creditors or all or substantially all of its assets except in the ordinary course of business;

     (h) If
any judgment aggregating, with other outstanding judgments, in excess of One Hundred
Thousand and No/100 Dollars ($100,000.00) is rendered against Borrower or if any attachment,
injunction, or execution is issued against any of the collateral for the Obligations or against
Borrower having an aggregate value in excess of One Hundred Thousand and No/l00 Dollars
($100,000.00), and such judgment, attachment, injunction, or execution is not promptly vacated,
discharged, satisfied, bonded, or stayed pending appeal within sixty
(60) days;

     (i) Any material representation or warranty made by or on behalf of Borrower in connection
with the Obligations, in the Loan Documents or in a Borrowing Base Certificate is materially false,
incomplete or misleading when made;

     (j) Borrower permits or suffers any lien, encumbrance, or security interest to arise or attach
to any Collateral, other than Permitted Liens that is not removed within thirty (30) days.

     (k) The discovery of any “Hazardous Substances” as defined in the Environmental Indemnity
Agreement (the “Indemnity Agreement”) of even date herewith executed by the Borrower in
favor of Lender, on the Property, which might have a Material Adverse Effect on the value of such
property; provided, however, that such discovery of any such Hazardous Substances on the Property
shall not constitute an Event of Default provided that Borrower within thirty (30) days after
written demand for performance thereof by Lender (or such shorter period of time as may be required
under any applicable law, regulation, order, or agreement), commences to perform, or causes to
be commenced, and thereafter diligently prosecutes to completion, all site monitoring,
containment, cleanup, removal, restoration, or other remedial work of any kind or nature reasonably
necessary or desirable under any applicable local, state, or federal law or regulation, or required
under any judicial order, or by any governmental entity, to remedy the effect of the presence of
such hazardous substances.

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ARTICLE 6

CONSEQUENCES OF DEFAULT; REMEDIES OF LENDER

     Section 6.1 Remedies of Lender. In addition to any other right or remedy provided
elsewhere in this Agreement, in any of the Loan Documents, or by applicable law, upon an Event of
Default Lender may, at its option:

     (a) Terminate any obligation to advance funds hereunder and, at its option, declare the
Obligations to be, and the Obligations shall thereupon forthwith become, immediately due and
payable, without any notice, presentment, demand or protest, all of which are hereby expressly
waived. Lender shall, upon the occurrence of an event which would constitute an Event of Default
hereunder, but for the giving of notice or passage of time or both, have no further obligation to
advance funds hereunder. Nothing herein shall be deemed to grant the Borrower a right of
reinstatement after acceleration of amounts due under the Obligations. Borrower shall thereupon be
obligated to pay Lender the full unpaid balance of principal and interest of the Obligations,
including unpaid interest thereon to the date of payment, notwithstanding anything to the contrary
in this Agreement, the Note or any other Loan Document.

     (b) With or without accelerating the Loan, advance funds under the Note directly to third
parties to cure any default by Borrower, including without limitation payments for property taxes,
insurance premiums, maintenance and repair, and management fees, payment of other expenses
concerning the Property, payment or performance of any obligation by Borrower under any lease
affecting the Property, and payment of Lender’s attorney’s fees and other fees and expenses. All of
said advances shall be deemed made under the Note and shall be payable immediately with interest at
the Default Rate (as such term is defined in the Note).

     (c) Enforce any and/or all of the Loan Documents, and, by way of illustration but not by way
of limitation, cause all and singular the property described in the Mortgage and/or any of the
other Loan Documents to be seized and sold under executory process as an entirety or in parcels, as
Lender may determine, in accordance with applicable law except as
modified by this Agreement.

     (d) Appoint or seek appointment of a receiver, without notice and without regard to the
solvency of Borrower or the adequacy of the security, for the purpose of preserving the Property,
preventing waste, and to protect all rights accruing to Lender by virtue of this Agreement and the
Loan Documents. All expenses incurred in connection with the appointment of such receiver, or in
protecting, preserving, or improving the Property, shall be charged against Borrower and shall be
secured by the Mortgage and Leasehold Mortgage and enforced as a lien against the Property.

     (e) Set-off and apply, to the maximum extent permitted by law, any and all deposits, funds or
assets at any time held by Lender, and any and all other indebtedness
owing by Lender, to or for the benefit, credit or account of Borrower against any amounts
owing to Lender under any one or more of the Loan Documents.

     (f) Exercise any other right, privilege or remedy available to Lender as may be provided by
any other Loan Document, and any other security documents heretofore or hereafter executed in favor
of Lender or under applicable law, including any right, privilege or remedy available at law or in
equity.

     Section 6.2
Remedies Cumulative. All powers and remedies given by this Article or this
Agreement to Lender shall be cumulative and not exclusive of any other right or remedy or of any

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other powers and remedies available to Lender under the Loan Documents, by judicial
proceedings or otherwise, to enforce the performance or observance of the covenants and agreements
of Borrower contained in this Agreement, and no delay or omission of Lender to exercise any right
or power accruing upon any default occurring shall impair any such
right or power, or shall be
construed to be a waiver of any such default or an acquiescence therein. Every power and remedy
given by this Article or this Loan Agreement or by law to Lender may be exercised from time to
time, and as often as may be deemed expedient, by Lender. No waiver of any default hereunder shall
extend to or affect any other or subsequent default or impair any rights or remedies consequent
thereon.

     Section 6.3
Professional Fees; Costs of Collection. Should Lender, at its
sole option, elect to employ the services of any attorney at law, expert witness or other
professional to represent it in the enforcement of the Obligations, or to participate in any legal
proceedings in any way connected herewith as plaintiff, defendant, intervenor or other interested
party (including, without limitation, any bankruptcy or appellate proceeding), Borrower does hereby
agree to pay to Lender all costs associated therewith, including, without limitation, the
reasonable fees and expenses of said attorneys, expert witnesses or
other professionals actually
incurred.

     Section 6.4 Waiver of Exemptions. Borrower does hereby expressly waive in
favor of Lender and its assigns, to the fullest extent allowed by law, any and all exemptions from
seizure provided by any law, rule or regulation of the State of South Carolina, the United States, or any other state.

     Section 6.5
Waiver of Notice. Except as otherwise expressly provided
herein, Borrower does hereby expressly waive any notice by Lender of any Event of Default or any
notice or demand by Lender of any breach of any obligation undertaken by Borrower in favor of
Lender.

ARTICLE 7

MISCELLANEOUS

     Section 7.1 Amendments and Waiver. No failure or delay on the part of Lender in
exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or power preclude any other or further exercise thereof or the
exercise of any other right or power hereunder. No notice to or demand on Borrower in any case
shall entitle Borrower to any other or further notice or demand in similar or other circumstances.

     Section 7.2 Interest Limitation. Regardless of any provisions contained in
this Agreement or in any of the other documents to be delivered hereunder, Lender shall never be
entitled to receive, collect or apply interest on the Obligations in an amount in excess of the
maximum rate of interest permitted to be charged by applicable law and, in the event that Lender
should ever receive or collect as purported interest such amount which would be excessive, interest
shall be applied to the reduction of the unpaid principal balance of the Obligations and if the
principal balances of the Obligations are paid in full, any remaining excess shall be forthwith
paid to Borrower. In determining whether or not the interest rate paid or payable under any
specific contingency exceeds the highest lawful rate, Borrower and
Lender shall, to the maximum
extent permitted under applicable law, (1) characterize any non-principal payment as an expense,
fee or premium rather than as interest; (2) excuse voluntary prepayment and the effects
thereof; and (3) “spread” the total amount of interest throughout the entire term of this Agreement
so that the interest rate is uniform throughout the entire term of this Agreement.

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     Section 7.3 Not a Novation. Borrower and Lender acknowledge and agree that the increase
in credit granted by Lender to Borrower hereunder is a future advance under the terms of the
Mortgage and no party intends a novation be created. Notwithstanding any terms to the contrary,
nothing contained herein shall be construed as a novation or adversely affect the indebtedness due
under the Note. The Loan, as amended, shall continue to be secured as provided herein. Nothing
herein shall be construed to alter or effect the priority or existence of the liens created by the
Mortgage, the Security Agreement, Financing Statements, or other loan documents. Borrower hereby
waives any right to raise the defenses of estoppel, waiver, laches, novation, accord and satisfaction, release or similar legal theories which may be based on the loan documents as amended or
alleged as a result of any act of Lender pursuant to the loan documents as amended.

     Section 7.4 No Assignment. Borrower may not assign or delegate, in whole or in part,
any of its rights or duties under this Agreement or any of the Loan Documents.

     Section 7.5 Agreement Survives Closing. Lender makes the Loan under this Agreement
in reliance upon the warranties and covenants of Borrower in this Agreement and the other Loan
Documents and such warranties and covenants shall survive the execution and delivery of the Loan
Documents and shall continue until the Obligations and any other sums
to be paid under the terms
of the Loan Documents are paid in full, regardless of any investigation made by Lender.

     Section 7.6 Notices. Whenever this Agreement requires or permits any notice, request
or demand by one party to the other, the notice, request or demand must be in writing and shall be
deemed to have been given if it is enclosed in an envelope addressed
to the party to be notified at
the address stated below (or such other address as may have been designated by written notice)
properly stamped, sealed, and deposited in the United States mail as certified or registered mail,
return receipt requested. The address of each party for the purposes of this Section are as follows:

	 	 	 	 	 

	 

	 	If to the Borrower :
	 	ArborGen, LLC

180 MeadWestvaco Road 

Summerville, SC 29484

Attn: Chief Financial Officer
	 
	 	 	 	 
	 

	 	If to the Lender:
	 	The National Bank of South Carolina 

Attention: Kevin Futrell 

158 Meeting Street 

Charleston, South Carolina 29401

     Section 7.7
Execution and Counterparts. This Agreement may be executed in
any number of counterparts, each of which when so executed shall be deemed to be an original and
all of which when taken together shall constitute but one and the same instrument.

     Section 7.8 Governing Law. This Agreement shall be deemed to be a contract made under
the laws of the State of South Carolina and for all purposes shall be
governed by and construed in
accordance with the laws of the said State.

     Section 7.9 Headings. Article and Section headings used in this Agreement are for
convenience of reference only and shall not be deemed to be a part of this Agreement for any
purpose.

-22-

 

     Section 7.10 Successors and Assigns. This Agreement shall be binding upon and
shall inure to the benefit of the parties and their respective heirs, successors and assigns.

     Section 7.11
Commitment Letter Terms. The terms and conditions of the Commitment
Letter are hereby incorporated by reference. In the event of any
inconsistency between the terms of
this Agreement and the terms of the Commitment Letter, the terms of the Loan Agreement shall
control.

     Section 7.12
Rights of Third Parties; Indemnity. All conditions of the obligations of
Lender hereunder, including the obligation to make advances, are imposed solely and exclusively
for the benefit of Lender and its successors and assigns and no other person shall have standing to
require satisfaction of such conditions in accordance with their terms or be entitled to assume
that Lender will make advances in the absence of strict compliance with any or all the terms and
conditions hereof and no other person shall, under any circumstances, be deemed to be a beneficiary
of such conditions, any and all of which may be freely waived in whole or in part by Lender at any
time and from time to time in its sole discretion. Lender shall have no obligations as to third
parties concerning the quality of the construction by Borrower of the Improvements or the absence
therefrom of defects. Borrower agrees to and shall indemnify and defend Lender from any losses,
claims, damages, or other liabilities or legal process arising by reason of the execution hereof or
the consummation of the transactions contemplated hereby or resulting from the disbursement of the
Loan proceeds or from the condition of the Property whether related to the quality of construction
or otherwise and whether arising during or after the term of the Loan made by Lender to Borrower in
connection herewith. This provision shall survive the prepayment of the Loan and shall continue in
full force and effect so long as the possibility of such liability, claims or losses exists.

     Section 7.13 No Warranties or Duties. Notwithstanding any provision in any document or
instrument to the contrary, Lender’s right of approval, if any, of any documents, instruments,
reports, plans and specifications, environmental conditions, and any reports from any inspectors,
engineers, or other person, or any agents, employees or representatives of Lender, shall not be
deemed a representation or warranty as to the adequacy or safety of the plans and specifications,
the construction of the Improvements, the condition of the Property, or any other matter, it being
the intention of the parties that all of the foregoing is for the sole benefit of Lender and may
not be relied upon by Borrower or any other person, including without limitation any guarantors,
contractors, subcontractors, tenants, or their employees, agents, invitees and licensees.

     Section 7.14 Payment of Third Parties. Notwithstanding any provision in any document
or instrument to the contrary, Lender shall have no duty to pay or provide for payment to any
contractor, subcontractor, materialman, laborer, or supplier of Borrower, in connection with the
construction of the Improvements or otherwise, nor shall Lender have any duty to insure or verify
that advances under the Loan are applied to any such payment.

     Section 7.15 No Third Party Beneficiaries. There are no intended third party
beneficiaries of this Agreement.

     Section 7.16 Waiver of Stay. IN THE EVENT OF THE COMMENCEMENT OF BANKRUPTCY
PROCEEDINGS BY OR AGAINST BORROWER, TO THE EXTENT NOW OR HEREAFTER
PERMITTED BY LAW, BORROWER
HEREBY WAIVES THE BENEFIT OF THE AUTOMATIC STAY PROVIDED FOR BY 11 U.S.C. § 362 AND/OR ANY STAY,
INJUNCTION, OR RESTRAINING ORDER ISSUED PURSUANT TO 11 U.S.C. § 105 OR

-23-

 

OTHERWISE. TO THAT END, BORROWER AGREES THAT IT WILL NOT SEEK OR ASSERT ANY SUCH STAY,
INJUNCTION, OR RESTRAINING ORDER AND BORROWER HEREBY IRREVOCABLY
CONSENTS TO AND AGREES NOT TO OPPOSE THE MODIFICATION OF ANY SUCH STAY TO ALLOW FOR THE ENFORCEMENT BY BANK OF THE
MORTGAGE OR LEASEHOLD MORTGAGE AND THE FORECLOSURE OR OTHER REALIZATION UPON THE COLLATERAL
PROVIDED FOR THEREIN.

     Section 7.17 Waiver of Jury Trial. BORROWER HEREBY WAIVES TRIAL BY JURY WITH RESPECT
TO ANY ACTION, CLAIM, SUIT OR PROCEEDING ON OR ARISING OUT OF THE
NOTE, THE OBLIGATIONS, AND/OR
THE CONDUCT OF THE RELATIONSHIP BETWEEN BANK AND BORROWER. ANY LITIGATION ARISING HEREUNDER OR
RELATED HERETO MAY BE TRIED BY THE SOUTH CAROLINA COURTS FOR CHARLESTON COUNTY OR THE FEDERAL
COURTS OF SOUTH CAROLINA, AND BORROWER HEREBY CONSENTS TO THE JURISDICTION OF SUCH COURTS.

     Section 7.18 Terms. Whenever the context and construction so require, all words used
in the singular number herein shall be deemed to have been used in the plural, and vice versa, and
the masculine gender shall include the feminine and neuter and the neuter shall include the
masculine and feminine.

     Section 7.19 Publicity. At Lender’s request, and subject to applicable laws,
regulations and restrictions, Borrower shall place upon the Property a sign or signs advertising
the fact that financing is being provided by Lender subject to
restrictive covenants, local zoning
and sign ordinances affecting the Property. Lender shall also have the right to secure printed
publicity through newspaper and other media concerning the Property and source of financing.

     Section 7.20
Savings Clause. Invalidation of any one or more of the provisions of this
Loan Agreement shall in no way affect any one of the other provisions hereof, which shall remain
in full force and effect.

     Section 7.21
Entire Agreement. THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT
BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

     Section 7.22 No Cost to Lender. The Loans shall be made without cost to Lender. All
brokerage and real estate commissions shall be payable solely by
Borrower, and all  other costs,
including but not limited to attorneys’ fees of Lender and Borrower, or other interested party,
other professional fees, intangible taxes and all expenses of all kinds incurred in connection with
the Loans, shall be borne by Borrower, and Borrower agrees to indemnify Lender and save it
harmless from the payment, defense and/or expense of any claim or demand for such commissions,
fees, costs, taxes and expenses, whether valid or not.

     Section 7.23
Time is of the Essence. THE PARTIES HERETO AGREE THAT TIME IS OF THE
ESSENCE AS TO EVERY PROVISION OF THIS AGREEMENT.

[Signature Page and Exhibits to Follow.]

-24-

 

     IN
WITNESS WHEREOF, the parties hereto have caused their respective hands and
seals to be placed on this Amended and Restated Revolving Credit Loan Agreement as of the date
first above written.

	 	 	 	 	 	 	 	 	 

	IN PRESENCE OF:	 	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 	 	 
	[ILLEGIBLE]	 	 	 	THE NATIONAL BANK OF SOUTH CAROLINA	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By: 	[ILLEGIBLE]	 	 
	 

	 	 	 	Its:
	 
SVP
	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	ARBORGEN, LLC, a Delaware

limited liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By: 
	/s/ Barbara H. Wells	 	 
	 

	 	 	 	Name:
	Barbara H. Wells
	 	 
	 

	 	 	 	Its:
	 	Chief Executive Officer	 	 
	 
	 

	 	 	 	By:
	/s/ Geoffrey Clear	 	 
	 

	 	 	 	Name:
	Geoffrey Clear
	 	 
	 

	 	 	 	Its:
	 	Chief Financial Officerexv10w4

Exhibit 10.4

Multi Option Credit Facility

Multi Option Credit Facility

Borrower

 

 

ArborGen
New Zealand Unlimited (1976303) a company duly registered and having
its principal place of business in New Zealand at 1943 State Highway 30, RD 2, Whakatane

(the “Borrower”)

Westpac NZ

Westpac New Zealand Limited (1763882) incorporated in New Zealand and having its principal
place of business in New Zealand at 188 Quay Street. Auckland

(“Westpac NZ”)

This Agreement is dated the 28th day of October 2009

signature section

This Agreement is signed on behalf of the Borrower by:

	 	 	 

	/s/ Geoffrey
P. Clear
	 	 
	 

Director

	 	 
	 
	 	 
	/s/ Barbara H. Wells
	 	 
	 

Director

	 	 

This Agreement is signed by Westpac NZ by its attorney:

	 	 	 

	/s/ TIMOTHY URQUHART-HAY

	 	 
	 

Attorney TIMOTHY URQUHART-HAY

	 	 
	 
	 	 
	in the presence of:
	 	 
	 
	 	 
	/s/ JOSEPHINE MARIA SANTOS
	 	 
	 

Signature of Witness

	 	 
	 
	 	 
	JOSEPHINE MARIA SANTOS
	 	 
	 

Print Name

	 	 
	 
	 	 
	LEGAL EXECUTIVE
	 	 
	 

Occupation

	 	 
	 
	 	 
	WESTPAC NEW ZEALAND LIMITED 

LEGAL SERVICES UNIT 

AUCKLAND
	 	 
	 

Address

	 	 

Introduction

Westpac NZ has agreed to provide the Borrower with a multi option credit facility of an
amount up to $6,000,000 on the terms and, subject to the conditions of this Agreement.

 

 

CERTIFICATE OF NON-REVOCATION OF POWER OF ATTORNEY

I, TIMOTHY JULIAN URQUHART-HAY, of Auckland in New Zealand, Bank Officer

HEREBY CERTIFY —

	1.	 	THAT by Deed dated 6 September 2006, a copy of which is deposited with Land Information
New Zealand and numbered 7032934.1, WESTPAC NEW ZEALAND LIMITED, incorporated in New
Zealand and having its principal place of business at 188 Quay Street, Auckland appointed
me its attorney on the terms and subject to the conditions set out in that Deed.
	 
	2.	 	THAT at the date of this certificate I am a Tier Two Attorney for Westpac New Zealand
Limited.
	 
	3.	 	THAT at the date of this certificate I have not received any notice or information of the
revocation of that appointment by the winding up or dissolution of Westpac New Zealand
Limited or otherwise.

SIGNED at Auckland

On this
13th day of November 2009

	 	 	 

	/s/ Timothy Urquhart-Hay
	 	 
	 

Timothy Urquhart-Hay

	 	 

 

 

Agreement

	1.	 	condition precedent
	 
	1.1	 	Pre-condition

	 	 	The obligations of Westpac NZ under this Agreement are subject to the condition precedent
that it must have received all of the following in form and substance satisfactory to it:

	 	a)	 	the original of this Agreement duly executed by the Borrower, the original of the
Deed of Subordination executed by the Borrower and the parties listed in schedule 1
therein, and the original of the ISDA Master Agreement and Schedule executed by
the Borrower;
	 
	 	b)	 	a certificate from a director of the Borrower in the form set out in the schedule
and a verification certificate from a director of each of ArborGen Australia Pty Limited
and ArborGen Australia Holdings Pty Limited;
	 
	 	c)	 	the Security (where necessary duly registered), the other Bank Documents and any
ancillary documentation as may have been notified to the Borrower by Westpac NZ or its
solicitors as being related to this Agreement, the Facilities, the Security and/or the
other Bank Documents;
	 
	 	d)	 	evidence that all necessary Authorisations to enable the Borrower to enter into
this Agreement, the Security and the other Bank Documents have been obtained and remain
in full force and effect and that the Borrower has all necessary Authorisations
(including under the Resource Management Act 1991) to carry on business;
	 
	 	e)	 	evidence of registration of any financing statement in respect of the Security;
	 
	 	f)	 	details of the location (by State/Territory) of the ArborGen Group’s Australian
assets (including Australian assets owned by the Borrower), and the value of such assets;
	 
	 	g)	 	confirmation from the Borrower that there has been no material adverse change in
the ArborGen Group’s business, evidenced by current trading and contract retention,
prior to drawdown of the Facilities; and
	 
	 	h)	 	any other documents or evidence (including legal opinions) as Westpac NZ or its solicitors
may require.

	1.2	 	Failure to satisfy precondition
	 
	 	 	If the conditions contained in clause 1.1 is not satisfied or waived before
30 November 2009 then Westpac NZ may terminate this Agreement whereupon it
will have no further liability or obligation to the Borrower.
	 
	2.	 	availability of commitment
	 
	2.1	 	Commitment
	 
	 	 	Westpac NZ will make Advances available to the Borrower provided that:

	 	a)	 	the Borrower has complied with the relevant drawdown procedure; and
	 
	 	b)	 	no Event of Default or Potential Event of Default has occurred and is continuing
or will occur as a result of the making of the Advance.

	2.2	 	Termination of facilities
	 
	 	 	On termination of the Facilities or any of them:

	 	a)	 	Westpac NZ’s obligations to make the Facilities available will terminate;
	 
	 	b)	 	the Commitment will be cancelled;
	 
	 	c)	 	the Borrower must immediately pay or repay to Westpac NZ all Outstanding Moneys
(notwithstanding that the due date for repayment has not otherwise occurred); and
	 
	 	d)	 	Westpac NZ will have no further obligations to the Borrower.

	2.3	 	Effect of termination
	 
	 	 	Termination of the Facilities will not affect any of the Borrower’s obligations to Westpac NZ
under this Agreement including obligations under the indemnities in clause 11 or
the Borrower’s obligations under the Security, which will remain binding upon it until all
Outstanding Moneys have been repaid in full.
	 
	3.	 	procedure for drawdown
	 
	3.1	 	Short term money market advances

	 	a)	 	telephone advice
	 
	 	 	 	Where the Borrower wishes to raise an Advance through the domestic short term money
market for all or any part of the Commitment an Authorised Dealer must advise Westpac
NZ by telephoning a Money Market Dealer at Auckland at the Money Market Telephone
Number of:

	 	i)	 	the amount of the Advance which it wishes to drawdown, being
$100,000 or a higher integral multiple of $50,000 and being
equal to or less than the Available Commitment; and
	 
	 	ii)	 	the term of the Advance which must be no more than 29 days
and expire on a date no later than the Termination Date,

	 	 	 	and Westpac NZ will then inform the Borrower of the offer rate (expressed
as a yield percent per annum to maturity) which, together with the Margin, Westpac
NZ would charge if the Advance was made.
	 
	 	b)	 	acceptance  of quote

 

 

	 	 	 	If the Borrower accepts the offer rate quoted it must advise Westpac NZ by telephone at
the time of Westpac NZ’s offer and Westpac NZ will deposit the Advance requested into the
account nominated by the Borrower.
	 
	 	c)	 	interest and repayment
	 
	 	 	 	Interest on each Advance under the short term money market line will accrue at Westpac
NZ’s Offer Rate plus the Margin and will be payable by the Borrower to Westpac NZ at the end
of the term of the Advance together with the principal amount of the Advance.

	3.2	 	Wholesale advances

	 	a)	 	telephone advice
	 
	 	 	 	Where the Borrower wishes to raise a wholesale Advance for all or any part of the
Commitment an Authorised Dealer must advise Westpac NZ by telephoning a Money Market
Dealer at Auckland at the Money Market Telephone Number of:

	 	i)	 	the amount of the Advance which it wishes to drawdown, being $100,000
or a higher integral multiple of $50,000 and being equal to or less than the
Available Commitment; and
	 
	 	ii)	 	the term of the Advance which must be 30, 60, 90 or 180 days and
expire on a date no later than the Termination Date,

	 	 	 	and Westpac NZ will then inform the Borrower of the offer rate (expressed
as a yield percent per annum to maturity) which, together with the Margin, Westpac
NZ would charge if the Advance was made;
	 
	 	b)	 	acceptance of quote
	 
	 	 	 	If the Borrower accepts the offer rate quoted it must advise Westpac NZ by
telephone at the time of Westpac NZ’s offer and Westpac NZ will deposit the Advance
requested into the account nominated by the Borrower.
	 
	 	c)	 	interest and repayment
	 
	 	 	 	Interest on each wholesale Advance will accrue at Westpac NZ’s Offer Rate plus the
Margin and will be payable by the Borrower to Westpac NZ at the end of the term of the
Advance together with the principal amount of the Advance.

	3.3	 	Fixed rate advances

	 	a)	 	request
	 
	 	 	 	Where the Borrower wishes to raise a fixed rate Advance for all or any part of the
Commitment, the Borrower may, on giving Westpac NZ not less than 5 Banking Days’
written notice, request Westpac NZ to set a fixed rate for:

	 	i)	 	the fixed rate Advance which it wishes to drawdown, being at least
$100,000 and being equal to or less than the Available Commitment; and
	 
	 	ii)	 	the fixed rate period the Borrower may request, in any event being
not less than 180 days and expiring on a date not later than the Termination Date.

	 	b)	 	notification
	 
	 	 	 	Subject to Westpac NZ being able to enter into suitable arrangements to provide the
fixed rate Advance requested by the Borrower Westpac NZ will, following the receipt of
a request under clause 3.3(a), notify the Borrower by telephone of a fixed interest
rate for the Fixed Rate Period (as Westpac NZ in its discretion determines). If Westpac
NZ does not notify the Borrower pursuant to this clause 3.3(b), it will be deemed not
to have agreed to the Borrower’s request.
	 
	 	c)	 	acceptance
	 
	 	 	 	The Borrower must, during the same telephone conversation, notify Westpac NZ whether or
not it accepts the fixed interest rate offered by Westpac NZ. If the Borrower accepts
the rate offered,
interest at the relevant Fixed Rate will be payable on the Advance. The Borrower
acknowledges that, in accepting any Fixed Rate under this clause, it is fully aware of
the consequences of potential movements (whether adverse or otherwise) in interest
rates.
	 
	 	d)	 	interest

	 	i)	 	Interest on each fixed rate Advance will be calculated at the Fixed
Rate for that Advance on the basis of the actual number of days elapsed and a 365
day year. Interest will accrue from day to day from the date the fixed rate
Advance is drawn down until the Advance is repaid in full, and must be paid by
consecutive monthly payments on each Interest Payment Date.
	 
	 	ii)	 	The first interest payment on a fixed rate Advance will be due and
payable on the Interest Payment Date which immediately follows the drawdown date
of the fixed rate Advance. Each payment will be for the period beginning on the
drawdown date or the previous Interest Payment Date (as the case may be) and
ending on (but excluding) the next Interest Payment Date.
	 
	 	iii)	 	The principal amount of each fixed rate Advance, together with all
unpaid interest accrued, will be payable by the Borrower to Westpac NZ at the end
of the Fixed Rate Period of that Advance.

	 	e)	 	prepayment
	 
	 	 	 	The Borrower has no right to repay a fixed rate Advance other than at the end of the
Fixed Rate Period for that Advance. Westpac NZ may nevertheless accept any prepayment.
However if it does, the Borrower must, at the time of the prepayment, pay to Westpac NZ
any losses, costs, penalties and expenses certified by Westpac NZ to have been
sustained or incurred as a consequence of the prepayment.

 

 

	3.4	 	Alternative currency advances

	 	a)	 	notice
	 
	 	 	 	Not less than 5 Banking Days prior to any Banking Day on which the
Borrower wishes to draw the Commitment or any part of it by way of an Alternative
Currency Advance, the Borrower must deliver to Westpac NZ a drawdown notice signed by
an authorised signatory setting out:

	 	i)	 	the amount of the Advance which it wishes to drawdown in the
Alternative Currency in which the Advance is to be denominated, being $100,000 or
a higher integral multiple of $100,000 and the Dollar Equivalent of the Advance
being equal to or less than the Available Commitment and not exceeding a maximum
amount of $1,500,000 (Alternative Currency Limit);
	 
	 	ii)	 	the date on which the Advance is required to be made;
	 
	 	iii)	 	details of the term of the Advance which must be a period of 30,
60, 90 or 180 days or another term Westpac NZ and the Borrower may
agree but so that the term selected expires on or before the Termination Date; and
	 
	 	iv)	 	the account of the Borrower to which the proceeds of the Alternative
Currency Advance are to be credited.
	 
	 	The drawdown notice will be unconditional and
irrevocable.

	 	b)	 	interest and repayment

	 	i)	 	The Borrower must pay Westpac NZ interest on each Alternative Currency Advance
in arrears on the last day of the term of the Advance together with the principal
amount of the Advance.
	 
	 	ii)	 	Interest on each Alternative Currency Advance will accrue at Westpac
NZ’s Offer Rate (calculated on the basis of a 360 day year unless pounds
sterling or Hong Kong dollars are selected in which case it shall be calculated on
the basis of a 365 day year) plus the Margin and be calculated from day to
day beginning on and including the first day of the term of the relevant
Alternative Currency Advance and ending on, but excluding, the last day of that
term.

	 	c)	 	top up
	 
	 	 	 	If at any time Westpac NZ, in its absolute discretion, determines that either
the Principal Outstanding exceeds the Commitment, or the Alternative Currency Advance
exceeds the Alternative Currency Limit (the amount of the excess called the
“Shortfall”) then, without prejudice to any other rights which Westpac NZ may have
under this Agreement, Westpac NZ may, in its discretion, give notice to the Borrower
requiring the Borrower within 5 Banking Days to do any of the following;

	 	i)	 	provide Westpac NZ with additional security with a value (in the
opinion of Westpac NZ) of not less than the Shortfall, which security is to be, in
form and substance, satisfactory to Westpac NZ;
	 
	 	ii)	 	deposit in an account with Westpac NZ, in the currency Westpac NZ
specifies, cash deposits in cleared funds equal to the Dollar Equivalent of the
Shortfall, which deposits, subject to the prior written consent of Westpac NZ,
will be incapable of assignment or of being the subject of a Security Interest or
of being withdrawn by the Borrower until all obligations (present and future,
direct and contingent) of the Borrower under the Bank Documents have been
performed and satisfied; or
	 
	 	iii)	 	repay in the Alternative Currency or Dollars to Westpac NZ an amount
equal or equivalent to the Shortfall.

	 	d)	 	funding risk and non-availability

	 	i)	 	Notwithstanding anything to the contrary in this Agreement, if Westpac
NZ at any time determines (which determination will be conclusive and binding on
the Borrower) for any reason including:

	 	1)	 	any change in national or international financial,
political or economic conditions, currency exchange rates, currency
availability or exchange controls; or
	 
	 	2)	 	the occurrence of an event or contingency which
materially and adversely affects any interbank market, or any relevant
foreign exchange market generally;

	 	 	 	that the making or continuation of an Alternative Currency Advance is impracticable,
impossible or adversely affects the return to Westpac NZ, then Westpac NZ will as soon as
practicable give written notice to the Borrower.
	 
	 	ii)	 	During a period (“the Grace Period”) of 30 days from the
giving of notice under clause 3.5(d)(i) or such shorter period (including a
nil period) as Westpac NZ may reasonably consider to be appropriate in the
particular circumstances, Westpac NZ will negotiate with the Borrower a
mutually acceptable alternative basis to make (or continue to make) the
Facility available. Should there be no alternative basis acceptable to both
parties, the right of the Borrower to borrow any Alternative Currency
Advance under the Facility will be terminated and the Borrower must repay
any part of the Commitment already provided under the Facility pursuant to
any Alternative Currency Advance (together with accrued interest and such
amounts as may be necessary to compensate Westpac NZ for any losses or
expenses of liquidation of or re-employing fixed deposits) within 14
days from the end of the Grace Period.

	3.5	 	Telephone communications

	 	a)	 	validity of instructions
	 
	 	 	 	Westpac NZ will be under no obligation to enquire as to the validity of any
telephone instructions or acceptance which it receives or to require any evidence as to
the authenticity, validity or legality of any telephone advice received or as to the
authority of the person giving the telephone advice to act on behalf of the Borrower.
	 
	 	b)	 	authority to tape calls
	 
	 	 	 	The Borrower acknowledges that Westpac NZ may from time to time keep tape
recordings of telephone conversations between Westpac NZ, the Borrower and the
Authorised Dealers and consents on behalf of itself and the Authorised Dealers to the
recording of these telephone conversations. The Borrower must ensure that all
Authorised Dealers are aware that their conversations with Westpac NZ may be taped.

 

 

	4.	 	payment
	 
	4.1	 	Payment
	 
	 	 	The Borrower must not later than 3.00pm on the due date for repayment of any Advance or
payment of interest or any other Outstanding Moneys, pay to Westpac NZ an amount equal to the
amount of the Advance, interest or such other moneys in cleared funds in Dollars (or, in the
case of an Alternative Currency Advance, in the Alternative Currency in which it is
denominated) to the account and/or in the manner as Westpac NZ may from time to time advise.
	 
	 	 	Amounts due and payable by the Borrower will be debited from the Westpac NZ
account nominated by the Borrower. If the Borrower does not nominate an account,
Westpac NZ may, at any time, debit from any account of the Borrower with Westpac NZ any
amounts due and payable by the Borrower.
	 
	4.2	 	Mandatory prepayment — Free Cash Flow
	 
	 	 	The Borrower must ensure that on 30 September 2010, and annually thereafter 5 days
after the compliance certificate for the September quarter, 100% of Free Cash Flow for the
preceding 12 month period is applied in or towards prepayment of Advances.
	 
	4.3	 	Banking days
	 
	 	 	If any payment by the Borrower falls due on a day which is not a Banking Day it must be
made on the following Banking Day.
	 
	5.	 	fees, charges, expenses and review entitlement
	 
	5.1	 	Fees, charges and expenses payable
	 
	 	 	The Borrower must pay to Westpac NZ, subject to the terms below, the
following:

	 	a)	 	establishment fee
	 
	 	 	 	A non-refundable establishment fee of $60,000 payable in one sum on or before
execution of this Agreement;
	 
	 	b)	 	line of credit charge
	 
	 	 	 	A line of credit charge payable in arrears with the first charge being in respect
of the period from the date of this Agreement to the last Banking Day of the month in
which that date occurs and thereafter monthly on the last Banking Day of each month
through the term of this Agreement and calculated at the rate of 0.08333% per month on
the Commitment or the highest daily balance outstanding during that month, whichever is
the greatest. The line fee is payable regardless of the Commitment being utilised or
not during that month;
	 
	 	c)	 	expenses
	 
	 	 	 	The expenses of Westpac NZ and each Attorney or Officer in relation to:

	 	i)	 	the Outstanding Moneys;
	 
	 	ii)	 	the preparation, execution and completion of each Bank Document, and any
subsequent consent, approval, waiver, amendment or release;
	 
	 	iii)	 	any contemplated, attempted or actual enforcement of any Bank
Document or the actual or contemplated, attempted or actual exercise or defence
of any Power; and
	 
	 	iv)	 	any enquiry by a Governmental Agency concerning the Borrower or
related to a Bank Document.

	 	 	 	This includes expenses incurred in retaining consultants to evaluate matters of concern
to Westpac NZ while a Potential Event of Default or an Event of Default is subsisting.
It also includes administrative time and costs including the time of Officers and other
employees of Westpac NZ (whose time and costs are to be charged at reasonable rates).
It will include, in each case, legal fees and expenses on a full indemnity basis plus
goods and services tax on those amounts.
	 
	 	 	 	All these expenses are payable by the Borrower within 10 Banking Days.
	 
	 	d)	 	government charges
	 
	 	 	 	Any government duties, taxes and charges on the Bank Documents and payments and
receipts under them.

	5.2	 	Review of fees, margin
	 
	 	 	Westpac NZ may, by 3 Banking Days notice to the Borrower, increase or
decrease:

	 	a)	 	the charge referred to in clause 5.1(b); and/or
	 
	 	b)	 	the Margin,
	 
	 	provided no increase will take effect within 12 months after the
date of this Agreement.

	6.	 	interest on arrears
	 
	6.1	 	Default interest payable
	 
	 	 	If the Borrower does not pay any sum payable on the due date, it must pay interest on
that overdue sum at the Default Rate from the due date until the Borrower remedies the
default and pays all default interest.

 

 

	6.2	 	Default in payment
	 
	 	 	If the Borrower does not pay any sum on or before 14 days after the date on which
payment was due (taking into account any applicable remedy or grace period), then the
following rules apply:

	 	a)	 	Interest on all amounts on which interest is payable will be calculated at the
Default Rate;
	 
	 	b)	 	Interest at the Default Rate:

	 	i)	 	will accrue during the period beginning on the date the last payment was due and paid
by the Borrower and ending on the date the Borrower remedies the
default and pays all default interest. Where no payments have been made by
the Borrower, the period begins on the date of drawdown;
	 
	 	ii)	 	will be calculated on a daily basis by reference to successive periods
of durations selected by Westpac NZ from time to time. Each period will
begin on the last day of the previous period except for the first period which will
begin on the due date;
	 
	 	iii)	 	will be payable on the last day of each period and on the date of receipt of the
overdue sum by Westpac NZ. Any interest which is not paid when due will be added to the
overdue sum and will itself bear interest under this clause.

	7.	 	deduction from payments
	 
	7.1	 	Gross up of Borrower’s withholding tax
	 
	 	 	The Borrower must not make any payment subject to any condition, restriction or claim it may
have against Westpac NZ. The Borrower may only make a withholding or deduction from money it
pays to Westpac NZ under this Agreement if that withholding or deduction is required by law.
If the law requires the Borrower to make a withholding or deduction then the following rules
apply:

	 	a)	 	the Borrower must make sure that the withholding or deduction is for not more
than the minimum amount required by that law;
	 
	 	b)	 	the Borrower must make sure that the withholding or deduction is paid to the
relevant Governmental Agency by the due date for payment;
	 
	 	c)	 	the Borrower must send Westpac NZ, within 30 days of the withholding or
deduction, a receipt showing that the withholding or deduction has been paid to the
relevant Governmental Agency;
	 
	 	d)	 	the Borrower must increase the amount it pays to Westpac NZ so that Westpac NZ
receives the amount it would have received had there been no withholding or deduction.

	7.2	 	Gross-up for Westpac NZ’s withholding tax
	 
	 	 	If the law requires Westpac NZ to make a deduction or withholding from any amount
received or receivable by it under this Agreement or any other Bank Document (including any
sum received or receivable under this clause 7.2, but excluding any Tax on its overall net
income) then the Borrower must increase the amount it pays to Westpac NZ so that Westpac NZ
receives the amount it would have received had there been no withholding or deduction.
	 
	7.3	 	Indemnity for Tax on funding
	 
	 	 	If:

	 	a)	 	Westpac NZ (or any person on its behalf) is required by law to make a deduction or
withholding for, or on account of, Tax or on any other account from an amount paid or
payable to a person from whom it has borrowed or obtained moneys to enable it to fund
any Advances or any other payment by it under this Agreement or any other Bank Document;
and
	 
	 	b)	 	as a result Westpac NZ is required to increase its payment, or makes an
additional payment, to that person or to a taxation authority,

	 	 	then the Borrower will indemnify and hold Westpac NZ harmless against that increased
or additional payment and must, on demand by Westpac NZ, pay to Westpac NZ the amount
which, after receiving
that amount and making that increased or additional payment, will place Westpac NZ in the
same position in which it would have been had no increased or additional payment been made.
	 
	7.4	 	Tax credit
	 
	 	 	If Westpac NZ receives the benefit of a Tax credit, refund or allowance resulting from
an increased amount paid by the Borrower under this clause then the following rules apply:

	 	a)	 	Westpac NZ will provide the Borrower with that part of the Tax credit, refund or
allowance that Westpac NZ determines was obtained as a result of the increased amount
the Borrower paid;
	 
	 	b)	 	the amount determined by Westpac NZ will be calculated so Westpac NZ is in no
better or worse position than it would have been had no amount been paid by the Borrower
under this clause;
	 
	 	c)	 	Westpac NZ is under no obligation to disclose any information relating to the calculation
of its Tax liability or benefits;
	 
	 	d)	 	this clause does not interfere with Westpac NZ’s right to arrange its Tax affairs
as it wishes and, in particular, Westpac NZ may apply Tax credits, refunds and
allowances available to it as it likes.

	8.	 	undertakings
	 
	8.1	 	Term of obligations
	 
	 	 	Each obligation of the Borrower in this Agreement continues from the date of this Agreement
until the Outstanding Moneys are fully and finally repaid and whether or not Westpac NZ has
exercised any Power.

 

 

	8.2	 	General undertakings
	 
	 	 	The Borrower undertakes to Westpac NZ as follows, except to the extent that Westpac NZ
agrees otherwise:

	 	a)	 	corporate existence
	 
	 	 	 	It must do everything necessary to maintain its corporate existence and must not
transfer its jurisdiction of incorporation.
	 
	 	b)	 	compliance with law
	 
	 	 	 	It must comply with all laws binding on it where non-compliance, in the opinion of
Westpac NZ may have a Material Adverse Effect.
	 
	 	c)	 	environmental law
	 
	 	 	 	It must maintain procedures which, in the opinion of Westpac NZ, are adequate to
monitor:

	 	i)	 	its compliance with Environmental Law; and
	 
	 	ii)	 	circumstances which may give rise to a claim, to a requirement of
substantial expenditure by it, or to a requirement that it cease or materially
change its activities.

	 	 	 	Westpac NZ may have an audit conducted of the Borrower’s assets and procedures and any
circumstances in relation to the Borrower’s assets where Westpac NZ reasonably suspects
that:

	 	i)	 	the Borrower is not complying, or might not in future comply, with an
Environmental Law or this clause 8.2(c); and
	 
	 	ii)	 	that non-compliance may have a Material Adverse Effect.

	 	 	 	The Borrower must do everything necessary to facilitate that audit and it will be at
the Borrower’s expense.
	 
	 	 	 	Where the monitoring procedures or the audit referred to above reveal any material
non-compliance with Environmental Law or any circumstances requiring remedial action,
the Borrower must remedy any non-compliance or take the necessary remedial action
immediately and at its cost.
	 
	 	d)	 	authorisations
	 
	 	 	 	It must comply with all Authorisations and it must maintain procedures which in
Westpac NZ’s reasonable opinion are adequate to monitor its compliance with all
Authorisations.
	 
	 	e)	 	negative pledge
	 
	 	 	 	It must not create a Security Interest over any of its assets other than:

	 	i)	 	a Security;
	 
	 	ii)	 	a lien arising only by operation of law in the ordinary course of day-to-day
trading;
	 
	 	iii)	 	any arrangement constituted by a retention of title in connection
with the acquisition of goods from a supplier that is discharged within 90 days of
its creation; and
	 
	 	iv)	 	any deemed security interest arising under section 17(b) of the
Personal Property Securities Act 1999.

	 	f)	 	insurance
	 
	 	 	 	It must make sure that all of its assets of an insurable nature that are
customarily insured (other than its crop assets) are insured at all times to Westpac
NZ’s satisfaction:

	 	i)	 	with a New Zealand insurer approved by Westpac NZ;
	 
	 	ii)	 	against fire, earthquake, flood, riot, explosion, weather damage, theft,
burglary, marine risks and other risks as it is prudent in accordance with best
commercial practice to insure against;
	 
	 	iii)	 	against third party liability as is prudent in accordance with best
commercial practice; and
	 
	 	iv)	 	for an amount at least equal to its full replacement cost or on another basis
acceptable to Westpac NZ.

	 	 	 	It must give the policy or a certificate of currency to Westpac NZ on request.
	 
	 	 	 	It must pay the insurance premiums when due and, if requested by Westpac NZ,
provide evidence of payment to Westpac NZ.
	 
	 	 	 	It must not do, fail to do or permit anything which might prejudice the insurance
cover.
	 
	 	 	 	It must provide Westpac NZ with the information in relation to insurance as Westpac NZ
may from time to time require acting reasonably.
	 
	 	g)	 	pay taxes
	 
	 	 	 	It must pay all Taxes payable by it when due, but:

	 	i)	 	it need not pay Taxes for which it has set aside sufficient reserves
and which are being contested in good faith, except where failure to pay those
Taxes may have a Material Adverse Effect or where payment is required by law; and
	 
	 	ii)	 	on the final determination or settlement of the contest it must pay
contested Taxes which it is liable to pay.

	 	h)	 	conduct of business and major transactions
	 
	 	 	 	It must conduct its business efficiently. It must not:

	 	i)	 	materially change the nature or scope of its business; or
	 
	 	ii)	 	enter into a Major Transaction unless that Major Transaction has been
unanimously approved by the shareholders of the Borrower (or, if Westpac NZ so
consents, by a special resolution within the meaning of the Companies Act 1993).

	 	i)	 	amalgamation

 

 

	 	 	 	It must not enter into or become the subject of an Amalgamation.
	 
	 	j)	 	shares and shareholder assistance
	 
	 	 	 	It must not:

	 	i)	 	acquire or redeem any of the Borrower’s own shares;
	 
	 	ii)	 	give financial assistance for the purpose of, or in connection with the purchase of
shares issued or to be issued by the Borrower, or by its holding company whether directly or
indirectly; or
	 
	 	iii)	 	cancel or reduce the liability of a member to the Borrower in relation to a share held
by the member.

	 	k)	 	distributions
	 
	 	 	 	Unless it is complying with the financial ratios in clause 8.4, it must not make any
Distribution other than:

	 	i)	 	a Permitted Payment; and
	 
	 	ii)	 	dividends paid out of profits in accordance with current accounting practice.

	 	l)	 	records and accounts
	 
	 	 	 	It must keep records and accounts relating to itself and its business and must
prepare accounts and, if so requested by Westpac NZ, have them audited in accordance with the
law and current accounting practice even where the law does not require it to appoint an
auditor.
	 
	 	m)	 	accounting standards
	 
	 	 	 	It must ensure that the financial statements of the Borrower, and the Borrower and
its Subsidiaries (if any), at any time delivered to Westpac NZ:

	 	i)	 	are prepared in accordance with Current Accounting Practice;
	 
	 	ii)	 	give a true and fair view of its financial position and operations (and those of
its Subsidiaries, if any) as at the date, and for the period to which the financial
statements relate;
	 
	 	iii)	 	together with the notes to them, disclose all liabilities (actual or contingent)
of the Borrower and its Subsidiaries (if any); and
	 
	 	iv)	 	are prepared and delivered to all relevant persons within the period in which they are
required by law or under any agreement to be delivered.

	 	n)	 	inspection
	 
	 	 	 	It must allow Westpac NZ or persons authorised by Westpac NZ or by an Officer at any time
during normal business hours to inspect assets, premises and records of the Borrower and
require the provision of copies of the records. It must do everything in its power to assist
that inspection and provide those copies. It must ensure that its employees and officers do
the same.
	 
	 	o)	 	acquisition of assets
	 
	 	 	 	It must immediately notify Westpac NZ if it:

	 	i)	 	enters into an agreement to purchase, or otherwise acquire, an estate or interest
in land (other than a lease for a term (including all renewal options) of less than
three years); or
	 
	 	ii)	 	creates or acquires a Subsidiary.

	 	p)	 	notify events of default
	 
	 	 	 	It must notify Westpac NZ of the occurrence of any Event of Default or Potential Event of
Default immediately upon becoming aware of it, giving full details of it and of any action
taken (or to be taken) in respect of it.
	 
	 	q)	 	full disclosure
	 
	 	 	 	It has disclosed to Westpac NZ all facts and circumstances which might adversely
affect the decision of a person considering whether or not to provide Indebtedness to the
Borrower and must disclose to Westpac NZ,
immediately it becomes aware of them, any facts or circumstances which might adversely
affect the decision of a person considering whether or not to continue to provide
Indebtedness to the Borrower.
	 
	 	r)	 	Personal Property Securities Act 1999
	 
	 	 	 	WheneverWestpac NZ asks it to do anything to better secure any property which secures or
is intended to secure financial accommodation made available to it by Westpac NZ (including,
without limitation, the Facility), the Borrower must do it (or procure that it is done)
immediately at its own cost. This may include signing and delivering documents and anything
else that Westpac NZ requires to ensure that Westpac NZ has perfected security interest(s)
under the Personal Property Securities Act 1999 (“PPSA”).
	 
	 	 	 	The Borrower waives any rights to receive a copy of a verification statement under the PPSA
and agrees, to the extent permitted by law, that in respect of any arrangement between the
Borrower and Westpac NZ:

	 	i)	 	sections 114(1)(a), 133 and 134 of the PPSA shall not apply;
	 
	 	ii)	 	the Borrower shall have none of the rights referred to in paragraphs
(c) to (e) and (h) to (i) of section 107(2) of the PPSA; and
	 
	 	iii)	 	where Westpac NZ has rights in addition to those in Part 9 of the PPSA, those
rights shall continue to apply and, in particular, shall not be limited by section 109
of the PPSA.

	 	 	 	The Borrower must, immediately upon request by Westpac NZ, procure from any person considered
by Westpac NZ to be relevant to its security position such agreements and waivers (including
as equivalent to those above) as Westpac NZ may at any time require.

 

 

	 	s)	 	further security
	 
	 	 	 	If required to by Westpac NZ, the Borrower must:

	 	i)	 	execute and deliver the additional securities Westpac NZ may from time to time
require; and
	 
	 	ii)	 	produce to Westpac NZ the resolutions, documents, legal opinions or other evidence
as it may require in order to be satisfied as to the enforceability of any additional
securities.

	 	t)	 	guarantors and related parties
	 
	 	 	 	It must procure that each other Related Party and each corporate Guarantor complies
with clauses 8.2(a) to 8.2(k) both inclusive and clauses 8.2(n) to 8.2(p) both
inclusive as though the obligations contained were obligations of each other
Related Party and each corporate Guarantor and references to the Borrower were
references to each other Related Party and each corporate Guarantor.
	 
	 	u)	 	indebtedness
	 
	 	 	 	The ArborGen Group must not incur any financial indebtedness, other than Permitted
Indebtedness.
	 
	 	v)	 	disposals of assets
	 
	 	 	 	It must not, either by a single transaction or series of transactions, whether
related or not and whether voluntary or involuntary, dispose of any asset other than in
the ordinary course of business and provided that it does not exceed more than $200,000
in any Financial Year of its assets or undertakings.
	 
	 	w)	 	compromise with creditors
	 
	 	 	 	It must not enter into or make any proposal for a compromise with its creditors
generally except on terms previously approved by Westpac NZ in writing.
	 
	 	x)	 	share alteration
	 
	 	 	 	It must not alter, or allow to be altered, any term attaching to any of its
own shares, in a manner which may cancel or reduce the liability of any shareholder in
relation to a share held prior to that alteration (or consent to, or enter into, any
arrangement which would have that effect).
	 
	 	z)	 	Facility use
	 
	 	 	 	It must not apply any of the Facilities towards capital reductions, interest
repayments, dividends and/or management fees, other than Permitted Payments.
	 
	8.3 	financial information
	 
	 	 	 	It undertakes that it will provide, or cause to be provided, to Westpac NZ:

	 	a)	 	annual report
	 
	 	 	 	as soon as practicable (and in any event not later than 120 days) after the last
days of each of its financial years, its audited statement of financial performance, position
and cash flow (on a consolidated basis) made up as at the last day of its financial year;
	 
	 	b)	 	quarterly management accounts
	 
	 	 	 	as soon as practicable (and in any event not later than 45 days) after the end of each
financial quarter, its unaudited quarterly management accounts on a consolidated basis (which
shall include commentary along with a balance sheet, profit and loss statement, and
performance against budget and forecasts including year to date figures);
	 
	 	c)	 	list of contracts
	 
	 	 	 	as soon as practicable (and in any event not later than 45 days) after the end of each
financial quarter, written certification signed by two directors detailing all strategic
relationship agreements and non strategic relationship agreements (“Contracts”), currently
held or which have been renewed, varied (including the form of such a Contract), changed,
revoked or expired in the previous financial quarter and any Contracts due to expire in the
next financial quarter;
	 
	 	d)	 	annual plan
	 
	 	 	 	as soon as practicable (and in any event not later that 14 days) after the commencement of each
financial year, an updated annual business plan and budget for the following financial year for the
ArborGen Group;
	 
	 	e)	 	compliance certificate
	 
	 	 	 	as soon as practicable (and in any event not later than 45 days) after the end of each
financial quarter, the first one at 31 December 2009, written certification signed by two
directors, or one director and either the CEO or CFO of the Borrower, certifying compliance
(and containing detailed calculations demonstrating such compliance) with the financial
covenants and undertakings set out in clause 8.4 of this Agreement and that its creditors of
the ArborGen Group have been paid in accordance with the agreed creditor terms of the
relevant company; and
	 
	 	f)	 	other information
	 
	 	 	 	promptly (and in any event within 7 days after request by Westpac NZ) any other
information in relation to the assets or financial condition or business of the ArborGen
Group which Westpac NZ may reasonably request.

	8.4	 	Financial Covenants
	 
	 	 	It undertakes that while any of Westpac NZ’s Facilities remain in place it will ensure
that:

	 	a)	 	Interest Cover

 

 

its EBIT for each financial year is not less than 1.75 times its Funding Costs for
that financial year at all times (tested only at 31 December and 31 March (annually) on a
12 month rolling basis), provided that:

	 	i)	 	on 31 December 2009, EBIT will be measured for the period 1 April 2009 to 31
December 2009 and annualised; and

	 	ii)	 	Total Bank Interest shall be calculated on an annualised basis for the first 12
months after settlement and thereafter on an annual rolling basis.

For the avoidance of doubt, EBIT shall exclude the establishment fee payable under this
Agreement and the property valuation fees for the Mortgaged Properties payable prior to
drawdown under this Agreement.

EBIT is the Borrower’s net profit before Funding Costs, income Tax and Abnormals for the
relevant financial year (but excluding the Borrower’s general manager’s salary where such
salary is funded by the Parent) but after depreciation, research and development expenses
and payments and other benefits to directors and shareholders (excluding Permitted
Payments) for the relevant financial year. Funding Costs comprise all interest, charges and
fees related to funding other than the establishment fee. Abnormals are items, as
determined by Westpac NZ in its sole discretion, that are not expected to occur frequently
and are distinct from the Borrower’s ordinary operations.

	 	b)	 	Equity Ratio

at all times it maintains Shareholders Funds of not less than 60% of Adjusted Tangible
Assets. Shareholders Funds is the Borrower’s Adjusted Tangible Assets less Adjusted Total
Liabilities. Adjusted Tangible Assets is the aggregate of the book values of all of the
Borrower’s assets excluding assets of an intangible nature (except goodwill included in the
ArborGen Group’s accounts ( which shall be included and, as at the date of settlement, is
approximately $11,750,000), advances to shareholders, investments in related and associate
companies and future asset revaluations provided that the value of land and buildings will
be based on the latest registered valuations provided to and approved by Westpac NZ in its
sole discretion (or as individually approved by Westpac NZ) with such valuation being at
the date of the Agreement approximately $10,149,000. Adjusted
Total Liabilities is the
aggregate of the book values of all of the Borrower’s liabilities excluding only advances
from shareholders.

	 	c)	 	Loan to Value Ratio

at all times the amount owing to both Westpac NZ and WBC is not to exceed 50% of the value
of the Secured Property (as determined by Westpac NZ, from time to time). If that limit is
exceeded, Westpac NZ may require either:

	 	(i)	 	the prepayment of part of the facilities; or

	 	(ii)	 	the provision of further security,

so that the this clause is complied with.

	 	d)	 	Capital expenditure

all capital expenditure shall be incurred in accordance with the annual budget provided to
Westpac NZ.

	9.	 	events of default
	 
	9.1	 	Events of default

	 	 	Each of the following is an Event of Default (whether or not it is in the control of the
Borrower).

	 	a)	 	payment

The Borrower fails to pay on the due date any amount payable by it under this
Agreement (time being of the essence);

	 	b)	 	obligations under bank documents

The Borrower fails to comply with any of its other obligations under a Bank
Document;

	 	c)	 	obligations of guarantor

A Guarantor fails to comply with any of its obligations under a Bank Document;

	 	d)	 	cross default

	 	i)	 	Any Indebtedness (being not less than $20,000) of the
Borrower or any Guarantor to anyone is not paid when due (or within an
applicable grace period) or becomes due or capable of being declared due and
payable before its stated maturity;

	 	ii)	 	In the case of Indebtedness in respect of the purchase
price of an asset or service in the ordinary course of business, this will
only apply if it is not paid within 90 days of the due date or if the vendor
has earlier taken any step to recover the asset or withdraw the service;

	 	iii)	 	Any facility or obligation to provide loans or credit to
the Borrower or a Guarantor or to acquire or underwrite Indebtedness is
terminated early;

	 	iv)	 	Any other Security Interest affecting the assets of the
Borrower is enforced or becomes enforceable; or

	 	v)	 	Any material lease held by the Borrower becomes liable to
forfeiture;

	 	e)	 	insolvency

 

 

	 	i)	 	The Borrower or any Guarantor is unable to pay its debts, or are deemed or
presumed to be unable to pay its debts, or stop or suspend or threaten to stop or
suspend payment of all or a class of its debts;

	 	ii)	 	Any step is taken for the Bankruptcy of the Borrower or
any Guarantor. This includes the Borrower or any Guarantor being declared to
be a corporation at risk under the Corporations (Investigation and Management)
Act 1989;

	 	f)	 	minority buy-out
	 
	 	 	 	A shareholder of the Borrower gives notice to the Borrower requiring it to purchase
that shareholder’s shares under section 111 of the Companies Act 1993;
	 
	 	h)	 	limitation of bank documents
	 
	 	 	 	All or any part of this Agreement, a Security or any other Bank Document is
terminated or is or becomes illegal, invalid, unenforceable or of limited force and
effect or a party becomes entitled to terminate, limit, cancel, rescind or avoid
all or any part of any of those documents;
	 
	 	i)	 	material adverse change
	 
	 	 	 	Any event or series of events, whether related or not, occurs (including a material
adverse change in the business, assets or financial condition of the Borrower, its
Subsidiaries or a Guarantor or the value of their respective assets), which in the
reasonable opinion of Westpac NZ, may have a Material Adverse Effect;
	 
	 	j)	 	compulsory acquisition
	 
	 	 	 	All or any part of the assets of the Borrower is compulsorily acquired or any step
is taken for its acquisition;
	 
	 	k)	 	guarantor
	 
	 	 	 	A Guarantor gives notice stopping its obligations or a human Guarantor dies, ceases
to be of full legal capacity or commits an act of bankruptcy;
	 
	 	l)	 	change of control
	 
	 	 	 	In the opinion of Westpac NZ, there is a material change in the direct or indirect
ownership, management or control of the Borrower or of any corporate Guarantor;
	 
	 	m)	 	environmental event
	 
	 	 	 	The Borrower or any other person breaches an Environmental Law or Authorisation
and, in the reasonable opinion of Westpac NZ, that breach may have a Material
Adverse Effect on or cause a claim or demand to be made against the Borrower or
assets of the Borrower by a Governmental Agency or any other person requiring
either:

	 	i)	 	the cessation or modification of any activities being, or
proposed to be, conducted by the Borrower; or
	 
	 	ii)	 	the carrying out of, or demand for payment for, any clean up,
rehabilitation or remediation of any assets of the Borrower;

	 	n)	 	information
	 
	 	 	 	Any information provided by the Borrower to Westpac NZ is untrue, misleading or
deceptive in any material respect;
	 
	 	o)	 	pay debts of another company
	 
	 	 	 	An order is made requiring the Borrower, the Guarantor or any Subsidiary, to pay
any debts of another company;
	 
	 	p)	 	related party
	 
	 	 	 	Any of the events in paragraphs (e), (f), (g), (i), (j), (l), (m) or (n) occurs in
relation to any other Related Party as though references to the Borrower in each
paragraph were references to each other Related Party.
	 
	 	q)	 	General Manager’s Salary
	 
	 	 	 	The Parent fails to pay the annual salary of Rob van Rossen and/or any General
Manager of the Borrower appointed in replacement of Rob van Rossen (being $350,000
as at the date of this Agreement).

	9.2	 	consequences
	 
	 	 	At any time after an Event of Default, and without prejudice to any other remedies, Westpac
NZ may immediately by notice to the Borrower terminate the Facilities with the consequences
set out in clause 2.2.

	9.3	 	event of review
	 
	 	 	In the event that any strategic relationship agreement is not renewed or replaced on
similar terms, and the likely financial effect of the loss of that strategic relationship
agreement would, in Westpac NZ’s sole opinion, materially adversely affect ArborGen Group’s
ability to meet its obligations under the Bank Documents (including but not limited to
compliance with clause 8.4), Westpac NZ will be entitled to review the terms and conditions
upon which it is prepared to continue to provide the facilities under this Agreement.

	10.	 	change in circumstances
	 
	10.1	 	Increased costs
	 
	 	 	If as a result of:

	 	a)	 	Westpac NZ complying with any law; or

 

 

	 	b)	 	any change in or introduction of any law or change in the interpretation or
application of any law by any Governmental Agency or court which:

	 	i)	 	imposes, modifies or deems applicable any reserve,
capital adequacy, prudential deposit, liquidity or similar requirement against
assets of, or deposits with any branch of Westpac NZ;

	 	ii)	 	imposes on Westpac NZ any other requirement with respect
to this Agreement or any other Bank Document; or

	 	iii)	 	changes the risk weighting for capital adequacy purposes of
any of the Facilities provided pursuant to this Agreement;

	 	 	any of the following occur:

	 	c)	 	the cost to Westpac NZ of making, funding or maintaining any of the
Facilities is increased; or

	 	d)	 	the moneys payable to Westpac NZ or the effective return to Westpac NZ
under or in connection with this Agreement is reduced; or

	 	e)	 	Westpac NZ makes any payment or foregoes any interest or other return on, or
calculated by reference to, any sum received or receivable by it under any Bank
Document; or

	 	f)	 	Westpac NZ is unable to obtain the rate of return on capital (including
any notional return on capital calculated on a risk adjusted basis) which it would
have received at the date of this Agreement;

	 	 	then:

	 	g)	 	Westpac NZ will use its best efforts promptly to notify the Borrower in
writing of these events, provided that failure to do so will not affect Westpac NZ’s
rights under this clause; and

	 	h)	 	the Borrower must pay on demand, from time to time, for the account of
Westpac NZ, the amount certified by an Officer which will compensate Westpac NZ for
its increased cost, reduction, payment or foregone interest or other return.

	10.2	 	Survival of obligations
	 
	 	 	The obligations of the Borrower under clause 10.1 will survive termination of the
Facilities and payment or repayment of all Outstanding Moneys.
	 
	10.3	 	Re-negotiation of facilities
	 
	 	 	If an additional amount is required to be paid under clause 10.1 then, without
limiting the Borrower’s obligations under this Agreement, Westpac NZ will, at the
request of the Borrower given within 30 days of notice from Westpac NZ, consult
with the Borrower with a view to renegotiating the terms of the affected Facilities
in order to mitigate or avoid any additional amounts payable under clause 10.1
provided that nothing in this clause will require Westpac NZ to act to its
detriment.
	 
	10.4	 	Illegality

	 	 	If as a result of:

	 	a)	 	the introduction or amendment of any law; or

	 	b)	 	any other circumstance affecting any interbank market or
any relevant foreign exchange market generally;

	 	 	it is unlawful, impracticable or impossible for Westpac NZ to make, fund
or allow to remain outstanding all or any of the Facilities or to comply
with its obligations or exercise its rights under this Agreement, then
Westpac NZ will as soon as practicable give written notice to the
Borrower; and

	 	c)	 	Westpac NZ will not thereafter be obliged to make Advances
under this Agreement and the amount of the Available Commitment will be
reduced to zero; and

	 	d)	 	Westpac NZ will be entitled, to terminate the Facilities,
with effect from the date Westpac NZ specifies and with the consequences set
out in clause 2.2.

	11	 	indemnity

	11.1	 	General indemnity

	 	 	The Borrower agrees to indemnify Westpac NZ, every Officer, every employee of
Westpac NZ and each Attorney on demand against any loss, cost, expense, charge,
damage, claim or liability which Westpac NZ, an Officer, an employee of Westpac NZ,
or an Attorney may suffer or incur as a direct consequence of:

	 	a)	 	an Event of Default or Potential Event of Default;

	 	b)	 	any exercise, contemplated exercise or attempted exercise of
any Power or the failure to exercise any Power;

	 	c)	 	Westpac NZ receiving an amount under any Bank Document on a
date other than the due date; or

	 	d)	 	any Advance requested under clause 3 not being made for
any reason (excluding default by Westpac NZ) on the date notified by the
Borrower to Westpac NZ as the drawdown date.

	11.2	 	Examples

	 	 	Without limitation, the indemnity in clause 11.1 will extend to:

	 	a)	 	any losses, costs, penalties and expenses incurred by reason
of the liquidation or re-employment of deposits or other funds acquired or
contracted for by Westpac NZ (including loss of margin); and

	 	b)	 	any losses, costs, penalties and expenses which may be
incurred by Westpac NZ in:

	 	i)	 	terminating any options or forward rate
agreements or interest or currency swap contracts entered into in
connection with the Facilities; or

 

 

	 	ii)	 	entering into any new contracts which it deems appropriate to protect
the return it would otherwise have expected under this Agreement.

	11.3	 	Currency indemnity

	 	 	If for any reason:

	 	a)	 	Westpac NZ receives or recovers an amount under a Bank
Document in a currency other than the currency in which it should have been
paid and, after Westpac NZ has converted that other currency to the correct
currency there is not enough to pay off the full amount then due under the
Bank Document; or

	 	b)	 	Westpac NZ obtains any judgment or court order against the
Borrower in a currency other than the currency in which the Outstanding Moneys
are due, and Westpac NZ incurs any loss from the conversion of any amount
actually received by it from that other currency to the correct currency,

	 	 	 	then, as a separate and independent indemnity obligation, the Borrower must pay
Westpac NZ the full amount of any shortfall or of any such loss incurred by Westpac
NZ.

	11.4	 	Unconditional indemnities

	 	 	The indemnities in this clause 11 are unconditional and irrevocable and will
survive termination of the Facilities and payment of all Outstanding Moneys and the
release of any Security and will not be discharged or impaired by any act,
omission, matter or thing which might discharge them but for this provision.

	12.	 	power of attorney

	 	 	The Borrower appoints Westpac NZ and every Officer severally its attorney to do
what it agreed to do in any Bank Document but fails to do. Each attorney may also
delegate its powers (including delegation). This appointment is made for valuable
consideration and the Borrower may not revoke it.

	13.	 	application of moneys received

	 	 	All money received or recovered by Westpac NZ under or by virtue of this Agreement
will be applied in the manner and order determined by Westpac NZ.

	14.	 	set off and combination

	14.1	 	Set off

	 	 	If the Borrower has any money in any account with Westpac NZ, then Westpac NZ can
use it to pay amounts the Borrower owes under this Agreement but need not do so. If
the Borrower is in default, Westpac NZ can use money which has not yet matured due
and convert money in the Borrower’s account in foreign currencies. To the maximum
extent allowed by law, the Borrower gives up any right to set off any amounts
Westpac NZ owes it against the Outstanding Moneys.

	14.2	 	Contingent amounts

	 	 	If at any time an amount is contingently due from the Borrower or an amount due is
not quantified, Westpac NZ may retain and withhold repayment of any money in any account of the Borrower and the payment of interest
or other moneys pending that amount becoming due and/or being quantified and may
set off the maximum liability which may at any time be or become owing to Westpac
NZ by the Borrower and in each case without prior notice or demand.

	14.3	 	Combination

	 	 	Subject to any applicable Bank Document, where the Borrower has two or more
accounts with Westpac NZ:

	 	a)	 	Westpac NZ may at any time combine any two or more of those
accounts. It may do so without notice and whether or not it has allowed a set
off for a calculation of interest between any of those accounts;

	 	b)	 	Westpac NZ may at any time combine any two or more of those
accounts even where one or more of the combined accounts are in different
currencies and may effect currency exchanges appropriate to implement that
combination; and

	 	c)	 	if Westpac NZ combines two or more accounts, it may decline
to pay cheques and it may otherwise act as if the combined accounts had always
been one account.

	14.4	 	Contractual rights

	 	 	Westpac NZ’s rights under this clause are contractual rights affecting the terms
upon which a credit balance is held and the creation of those rights does not
constitute the creation of a Security Interest in respect of that credit balance.

	14.5	 	Deposits with Westpac NZ

	 	 	Any moneys which, pursuant to a Bank Document, are deposited at any time by the
Borrower with Westpac NZ (or withheld by Westpac NZ from a payment to the Borrower
and retained on deposit with it) must, unless otherwise provided, be held on the
following basis:

	 	a)	 	each deposit and all rights of the Borrower relating to it
must be incapable of assignment by the Borrower or of being the subject of a
Security Interest except:

	 	i)	 	in favour of Westpac NZ; or

	 	ii)	 	with the prior written consent of Westpac NZ; and

 

 

	 	b)	 	the Borrower must have no right to withdraw any moneys from a deposit until
all obligations of the Borrower under
the Bank Documents (present and future, direct and contingent) have been
performed and complied with, except:

	 	i)	 	as expressly permitted by the terms of any
Bank Documents under which that deposit was made;

	 	ii)	 	for the purpose of complying with its
obligations under the Bank Documents; or

	 	iii)	 	with the prior written consent of Westpac NZ.

	14.6	 	Interest

	 	 	Each amount deposited with Westpac NZ under clause 14.5 will (unless otherwise
agreed) bear interest calculated by reference to successive deposit periods of a
duration agreed by Westpac NZ and the Borrower (or, in the absence of agreement, as
Westpac NZ may nominate). The rate of interest applicable to a deposit period will
be as agreed by Westpac NZ and the Borrower (or, in the absence of agreement, as
Westpac NZ certifies as applicable to deposits of similar size and maturity placed
with it by customers). As long as no Event of Default or Potential Event of Default
has occurred (in which case interest is to be added to the deposit) and subject to
clause 14.1, that interest is to be paid to the Borrower as it may direct.

	15.	 	notices

	15.1	 	Notices from Westpac NZ

	 	 	Any Officer can sign a demand, certificate or other document for Westpac NZ.
Westpac NZ can:

	 	a)	 	deliver the document personally;

	 	b)	 	send it through the post to the place where the Borrower:

	 	i)	 	carries on business; or

	 	ii)	 	has its registered office,
or the place most recently known to the person signing the
document as such a place;

	 	c)	 	leave it at any one of these places; or

	 	d)	 	send it by facsimile to the Borrower’s last known
facsimile number.

	15.2	 	Procedure for delivery

	 	 	If the document is sent through the post, it is to be regarded as having arrived on
the third Banking Day after posting, even if it never arrived. If it is sent by
facsimile, it is to be regarded as having arrived when the sending machine receives
a confirmation that it has been sent in its entirety.

	15.3	 	Authenticity of notices

	 	 	Where any document is given or appears to have been given by an Authorised Dealer
or director on behalf of the Borrower to Westpac NZ by facsimile, Westpac NZ will
have no obligation to make any enquiry or require any evidence as to the validity
of that document even where that
document proves not to have been authorised or not to have been signed or given by
the person who appears to have signed or given it.

	15.4	 	Notices from the Borrower

	 	 	The Borrower can give notice to Westpac NZ by delivering, posting, leaving or
faxing it to the branch of Westpac NZ where the Borrower maintains its accounts or
any other address which Westpac NZ may have given the Borrower.

	16.	 	assignment

	16.1	 	Westpac NZ may assign

	 	 	Westpac NZ can transfer this Agreement and all or part of the Outstanding Moneys to
someone else. If it does, this Agreement and any transferred Bank Document will
apply to the transferee as if it was Westpac NZ. To the maximum extent allowed by
law, any transfer will be free of any set off, equity or cross claim which the
Borrower would have had against Westpac NZ or the transferee of any Bank Document
but for this clause.

	16.2	 	No increased costs

	 	 	If Westpac NZ assigns its rights under this Agreement, the Borrower will not be
required to pay any net increase in the aggregate amount payable under this
Agreement that is a direct consequence of that assignment or change of office.

	16.3	 	Borrower may not assign

	 	 	The Borrower may not assign or otherwise transfer or grant any Security Interest
over any of its rights and obligations under this Agreement or any other Bank
Document.

	16.4	 	Disclosure of information

	 	 	Westpac NZ may disclose to a Related Company, potential assignee or transferee of
its rights or obligations under any Bank Document or any other relevant party any
information about the Borrower as Westpac NZ considers necessary or desirable for
its business purposes. However before disclosing to any potential assignee or
transferee Westpac NZ will, in relation to information which is not publicly
available:

	 	a)	 	advise the Borrower of its intention; and

	 	b)	 	require an undertaking protecting the confidentiality of that
information from any potential assignee or transferee or other relevant party.

 

 

	17.	 	consents and opinions
	 
	 	 	Except where expressly stated, Westpac NZ may give or withhold, or give conditionally,
approvals and consents, may be satisfied or unsatisfied, may form opinions and may exercise
its Powers, at its absolute discretion.
	 
	18.	 	certificate as to amount of outstanding moneys
	 
	 	 	The Borrower agrees that a certificate from Westpac NZ setting out the amount which it owes
under this Agreement is proof that it owes the amount stated, unless it proves to the
contrary.
	 
	19.	 	saving of agreement
	 
	 	 	If any clause in this Agreement is not enforceable in any country because of the laws of
that country then that will not affect:

	 	a)	 	the other clauses of this Agreement; or
	 
	 	b)	 	the enforceability of that clause in any other country.

	20.	 	no merger
	 
	 	 	No Power and nothing in this Agreement or any Bank Document, is adversely affected
merely because of the existence of any other Bank Document, or by judgment, right or remedy
against any person which Westpac NZ or someone claiming through Westpac NZ may have at any
time.
	 
	21.	 	protection of officers
	 
	 	 	To the extent permitted by law, neither Westpac NZ nor any Officer or Attorney will be liable
in respect of any conduct, (including but not limited to the agreement to provide the
Facility), omission, delay, negligence or breach of duty in the exercise or failure to
exercise a Power or for any loss (including consequential loss) which results. However,
Westpac NZ and any Officer or Attorney will be liable where liability arises from its own
fraud or wilful misconduct or gross negligence.
	 
	22.	 	governing law and jurisdiction
	 
	 	 	The law of New Zealand applies to this Agreement. The Borrower accepts the non-exclusive
jurisdiction of its courts.
	 
	23.	 	no reliance on Westpac NZ
	 
	 	 	The Borrower confirms that:

	 	a)	 	it has not entered into any Bank Document in reliance on, or as a result of any conduct of
any kind of or on behalf of Westpac NZ or any Related Company of Westpac NZ (including any
advice, warranty, representation or undertaking); and
	 
	 	b)	 	neither Westpac NZ nor any Related Company of Westpac NZ is obliged to do anything
(including disclose anything or give advice),
	 
	 	 	 	except as expressly set out in the Bank
Documents or in writing signed by or on behalf of Westpac NZ or any Related
Company of Westpac NZ.

	24.	 	counterpart execution
	 
	 	 	This Agreement may be executed in two or more counterparts, all of which will be deemed to
constitute the same instrument. Westpac NZ may accept as an original a facsimile copy of this
Agreement executed by the Borrower and a facsimile copy, when taken with a counterpart
executed by Westpac NZ, will be deemed to be one original copy of this Agreement.
	 
	25.	 	interpretation
	 
	25.1	 	Definitions

 

 

The following definitions apply, unless the context requires otherwise:

Advance means each principal amount lent (or to be lent) to the Borrower under any
Facility;

Agreement means this agreement and any variations or additions to it agreed in
writing between the parties;

Alternative Currency means Australian dollars;

Amalgamation means an amalgamation
under Part XIII of the Companies Act 1993;

ArborGen Group means the Borrower, ArborGen Australia Holdings Pty Limited and ArborGen
Australia Pty Limited and its wholly owned subsidiaries;

Attorney means a person appointed as attorney under this Agreement or any Bank Document;

Authorisation includes:

	 	a)	 	any consent, authorisation, registration, filing, lodgement, agreement, notarisation,
certificate, permission, licence, permit, approval, authority or exemption from, by or with a
Governmental Agency; and
	 
	 	b)	 	in relation to anything which will be proscribed or restricted in whole or part by law if a
Governmental Agency intervenes or acts in any way within a specified period after lodgement,
filing, registration or notification, the expiry of that period without that intervention or
action;

Authorised Dealer means Rob van Rossen, Patrick Crabbe or any other person notified from
time to time in writing by the Borrower to Westpac NZ_as being entitled to draw under the relevant
Facility;

Available Commitment means, at any time, the Commitment at that time less the Principal
Outstanding and all Requested Moneys;

Bank Document means a document or agreement:

	 	a)	 	to which Westpac NZ and any one or more of the Borrower and/or any Guarantor are or become
parties or purport to be or become parties; or
	 
	 	b)	 	under which obligations arise or are intended to arise from any one or more of the Borrower
and/or any Guarantor to, or for the benefit of, Westpac NZ;

(in each case whether or not the parties are involved or it arises as a result of an
assignment or transfer). It includes this Agreement and any Security;

Banking Day means any day (other than a Saturday or Sunday) on which registered banks
are open for business of the nature required by this Agreement in Auckland and, if on that day a
transfer of funds is to be made under this Agreement, the city to which the funds are to be
transferred;

Bankruptcy includes liquidation, receivership, statutory management, administration,
reconstruction, striking off or removal from the register under the Companies Act, winding-up,
dissolution, assignment for the benefit of creditors, arrangement or compromise with creditors and
bankruptcy;

Commitment means $6,000,000, reducing by $500,000 on 30 September each year during the
term of the Facility and the amounts required by clause 4.2 of this Agreement;

Deed of Subordination means the deed of subordination between Westpac NZ, the Borrower
and the parties listed in schedule 1 therein, dated on or about the date of this Agreement;

Default Rate means the aggregate of Westpac NZ’s indicator lending rate from time to time
and 7% per annum;

Distribution has the meaning set out in section 2(1) of the Companies Act 1993;

Dollar and $ means the lawful currency of New Zealand;

Dollar Equivalent means, in relation to an amount denominated in a currency other than
Dollars, the amount of Dollars with which Westpac NZ would be able to purchase that amount of that
currency for delivery on the day in question, calculated at its spot rate of exchange for the
purchase of that currency with Dollars (as conclusively certified by Westpac NZ as applying at
approximately 11:00 am (New Zealand time) 2 Banking Days prior to the day in question in a foreign
exchange market as determined by Westpac NZ) and, in relation to an amount denominated in Dollars,
that amount;

EBITDA means, in respect of any period, for the Borrower’s Net Profit for that period
and adjusted to exclude (by adding back), to the extent included:

	 	a)	 	any deduction in respect of interest;
	 
	 	b)	 	any deduction in respect of tax expense;
	 
	 	c)	 	any deduction in respect of amortisation of goodwill; and
	 
	 	d)	 	any deduction in respect of depreciation expense,
	 
	 	 	 	in each case of, or made, incurred or paid by, the Borrower during that period;

Environment means the natural physical surroundings of humankind (whether affecting
individuals or groups of individuals) and any human made changes to them and any buildings;

 

 

Environmental Law means a provision or law which relates to an aspect of Planning, the
Environment or the health, safety and welfare of humans individually or collectively;

Event of Default means any of the events mentioned in clause 9;

Facility and Facilities means the facilities referred to in clause 3 through
which the Commitment is, or is to be, made available to the Borrower under this Agreement;

Fixed Rate means a rate of interest for a fixed rate Advance determined under clause
3.3(b) and accepted under clause 3.3(c);

Fixed Rate Period means the fixed rate period determined under clause 3.3(b);

Financial Year means a financial year of the Borrower ending on its annual balance
date, being unless Westpac NZ otherwise agrees in writing, 31 March each year;

Free Cash Flow means, in respect of any period, EBITDA for that period
(without double counting):

	 	(a)	 	minus interest expense;
	 
	 	(b)	 	minus any principal repayments or prepayments (whether voluntary or mandatory) of the Facility
made during the relevant period;
	 
	 	(c)	 	minus capital expenditure (as approved by Westpac NZ pursuant to clause 8.4(d) of this
Agreement) incurred during the relevant period;
	 
	 	(d)	 	plus any net decrease or minus any net increase in Working Capital for the relevant period; and
	 
	 	(e)	 	minus cash taxes paid and payable during the relevant period;

Governmental Agency means any government or any governmental, semi-governmental or
judicial entity or authority including any local government, statutory or self-regulatory
organisation established, approved or authorised under law, and any stock exchange, in any case
having jurisdiction in relation to the affairs of any party to a Bank Document or to whose control
or jurisdiction any party to a Bank Document has consented;

Guarantee means any guarantee, indemnity, letter of credit, legally binding letter of comfort
or suretyship. It includes any obligation or irrevocable offer to be responsible for a debt (as
defined below) or for the insolvency or financial condition of another person. It also includes any
other obligation or irrevocable offer to pay a debt or to purchase a debt, to provide funds for the
payment or discharge of a debt (whether by the advance of money, the purchase of or subscription
for shares, stock or other interests issued by another person, the purchase of assets or services,
or otherwise), or to indemnify against the consequences of default in the payment of a debt. For
the purposes of this definition debt includes Indebtedness of another person, Distribution, capital
or premium on shares, stock or other interests issued by another person;

Guarantor means anyone who creates or enters into a Guarantee in support of any Outstanding
Moneys;

Indebtedness means any obligation or indebtedness, present or future, actual, prospective
or contingent;

Interest Calculation Date means in relation to fixed rate Advances the date falling on
the day in each calendar month which numerically corresponds to the drawdown date of each Advance
provided that where there is no numerically corresponding day in any calendar month then it will be
the first day in the next calendar month;

Interest Payment Date means, unless Westpac NZ determines otherwise, the date falling
on the day after each Interest Calculation Date provided that:

	 	a)	 	where the Interest Calculation Date would otherwise fall on a non-Banking Day then the
Interest Payment Date will be the Banking Day after the next Banking Day; and
	 
	 	b)	 	where the Interest Calculation Date would otherwise fall on a Banking Day which immediately
precedes a non-Banking Day then the Interest Payment Date will be the next Banking Day;

Loan Note means the loan agreement dated 31 October 2007 between Trees &
Technology Limited and the Borrower, as assigned on 31 October 2007 from Trees &
Technology Limited to Rubicon Forests Holdings Limited, further assigned on 31 October 2007
from Rubicon Forests Holdings Limited to Rubicon Industries USA LLC and contributed on or about 31
October 2007 from Rubicon Industries USA LLC to ArborGen LLC;

Major Transaction has the meaning given to it in section 129 of the Companies Act 1993;

Margin means, subject to clause 5.2, 1.75% per annum;

Material Adverse Effect means a material adverse effect on:

	 	a)	 	the ability of the Borrower or any Guarantor to perform its obligations under any
Bank Document; or
	 
	 	b)	 	the financial condition or business of the Borrower and each Guarantor (taken as a
whole);

Money Market Dealer means a money market dealer of Westpac NZ;

 

 

Money Market Telephone Number means (09) 309 4662 or any other telephone number as may be
substituted for that number from time to time or any other number that Westpac NZ may notify to the
Borrower as a telephone number of a Money Market Dealer;

Mortgaged Properties means the following properties over which Westpac NZ is taking a
first ranking registered mortgage:

	 	a)	 	Kaikohe Nursery, situated at State Highway 12, Kaikohe, Northland, comprised and described
in certificates of title NA95C/849, NA49A/209 and NA408/142 (North Auckland Land Registry);
	 
	 	b)	 	Puha Nursery, situated at Whatatutu Road, Te Karaka, Gisborne, comprised and described in
certificates of title GS5C/1232, GS6C/1271, GS5C/1233 and GS3A/1461 (Gisborne Land Registry);
	 
	 	c)	 	the property situated at 197 Main Road, Spring Grove, Tasman, comprised and described in
certificates of title NL143/71 and NL12B/877 (Nelson Land Registry);
	 
	 	d)	 	the property situated at 2765 State Highway 63, Wairau Valley, Marlborough, comprised and
described in certificate of title MB6A/589 (Marlborough Land Registry);
	 
	 	e)	 	the property situated at 939 Seaview Road, Seddon, Marlborough, comprised and described in
certificate of title MB5D/28 (Marlborough Land Registry);
	 
	 	f)	 	the property situated at 1927 State Highway 30, Te Teko, comprised and described in
certificate of title 317587 (South Auckland Land Registry); and
	 
	 	g)	 	the property situated at 14 lona Avenue, Kinleith, comprised and described in certificates
of title 149742 and 149743 (South Auckland Land Registry).

Net Profit means, in respect of any period, the amount equal to the net profit after
tax of the Borrower for that period as would be disclosed in the consolidated financial statements
of the Borrower if they were prepared for that period, but excluding (by way of deduction or adding
back, as the case may be):

	 	a)	 	gains or losses on the sale of assets;
	 
	 	b)	 	write downs of assets;
	 
	 	c)	 	equity accounted profits and losses (except to the extent received or incurred); and
	 
	 	d)	 	unrealised gains or losses on foreign exchange and hedging arrangements,

in each case of,
or made by, or incurred by, or paid by, the Borrower for that period. For the avoidance of doubt,
any non-recurring or abnormal items other than the above exclusions and the amount of any
management fee, if any (if agreed by Westpac NZ) paid or payable during that period will be
included in Net Profit;

Officer includes each employee of Westpac NZ whose title includes the word Manager or
occupying an office whose title includes the word Manager and any person (who need not be
an employee) authorised by Westpac NZ;

Other Property means all of the Borrower’s present and future interests in, and all of the
Borrower’s present and future rights in relation to, any land and any other assets, other than
Personal Property;

Outstanding Moneys means, at any time, the Principal Outstanding and all other moneys
payable, including contingently payable, by the Borrower under this Agreement including accrued
interest (including default interest), fees, costs and other expenses whether or not those sums are
then due and owing;

Parent means ArborGen New Zealand Holdings LLC;

Permitted Indebtedness means:

	 	a)	 	indebtedness incurred under the Bank Documents;
	 
	 	b)	 	indebtedness which is fully subordinated to debt incurred under the Bank Documents on terms
equivalent to those in the Deed of Subordination or otherwise satisfactory to Westpac NZ in all
respects including, for the avoidance of doubt, the Loan Note;
	 
	 	c)	 	indebtedness to which Westpac NZ consents in writing (unless the consent was conditional
and any of the conditions are not complied with); and
	 
	 	d)	 	indebtedness to any other Guarantor.

Permitted Payment means:

	 	a)	 	the payment of $6,000,000 to the Parent following the first advance hereunder; and
	 
	 	b)	 	any payment made available to the Parent by the Borrower from time to time, subject to the
following conditions:

	 	i)	 	such payment is not more than any payment made in the preceding 12 months by the Parent to
the Borrower to fund the Borrower’s operating activities (but excluding the General Manager’s
Salary);
	 
	 	ii)	 	Westpac NZ has provided its prior written consent to such a payment (such consent not to
be unreasonably withheld);
	 
	 	iii)	 	the consequence of such a payment will not breach the financial covenants in clause 8.4
of this Agreement and the Borrower has provided a certificate to Westpac NZ (from two directors of
the Borrower, or one director and either the chief financial officer or the chief executive officer
of the Borrower) which certifies that neither the Advance (if any) to fund the payment nor the
payment itself, will trigger an Event of Default or a Potential Event of Default; and
	 
	 	iv)	 	that following a payment, the Borrower is able to make the $500,000 payment in reduction
of the Commitment and 100% of the Free Cash Flow payment set out in clause 4.2.

Personal Property means all of the Borrower’s present and after-acquired personal
property to which the PPSA applies, and all of the Borrower’s present and future rights in relation
to any personal property to which the PPSA applies;

 

 

Planning includes any obligation or requirement to apply for, renew, hold or
comply with any Authorisations, relating to the conduct of, any activity in or the use of any
part of the Environment and any restrictions on that activity or use;

Potential Event of Default means any event which, with the giving of notice,
lapse of time or satisfaction of any condition or happening of any event, would constitute an
Event of Default;

Power means a power, right, authority, discretion or remedy which is conferred on
Westpac NZ, an Officer or an Attorney by a Bank Document or by law in relation to a Bank
Document;

Principal Outstanding means, at any time, the aggregate of the principal amount
outstanding of all Advances at that time;

Related Company has the meaning given to that term in the Companies Act 1993 but
on the basis that Subsidiary has the meaning given to it in this Agreement and that
body corporate includes any entity;

Related Party means the Borrower, each of the corporate Guarantors and each
Subsidiary of the Borrower and each corporate Guarantor;

Requested Moneys means the total of all Advances requested but not yet drawn down;

Secured Property means the Personal Property and Other Property, and includes any
part of it;

Security means any security or undertaking provided by the Borrower or any of the
Guarantors, or procured by the Borrower to be provided, to or for the benefit of Westpac NZ
from time to time in respect of the Borrower’s obligations under this Agreement;

Security Interest includes:

	 	a)	 	any mortgage, encumbrance, fixed or floating charge, pledge, lien, financial lease, sale
and lease back or sale and repurchase;
	 
	 	b)	 	any security or preferential interest or arrangement of any kind; and
	 
	 	c)	 	any other right of or arrangement with any person the effect of which is to have its
claims satisfied in priority to other unsecured and unsubordinated creditors with, or from
the proceeds of, any asset.

It includes retention of title arrangements other than in the ordinary course of
day-to-day trading and a deposit of money or any other asset by way of security or support.
It excludes a charge or lien arising in favour of a Governmental Agency only by operation of
statute unless there is default in payment of money secured by the charge or lien;

Subsidiary has the meaning given to it in the Financial Reporting Act 1993;

Tax includes any tax, levy, impost, deduction, charge, rate, duty or withholding
which is levied or imposed by a Governmental Agency and is required by law to be paid and any
related interest, penalty, charge, fee or other amount;

Termination Date means the date that is three years from the date of execution of
this Agreement and the Security that is in a form satisfactory to Westpac NZ in all respects;

WBC means Westpac Banking Corporation (ABN 33 007 457 141);

Westpac NZ’s Offer Rate means in respect of:

	 	a)	 	a short term money market Advance under clause 3.1 a fixed rate Advance under clause 3.3
and an alternative currency Advance under clause 3.4, the rate quoted in respect of that
Advance as the rate which Westpac NZ will charge to raise funds on the first day of the term
of the Advance of a similar term and amount to the term and amount of the relevant Advance
and, in respect of an Advance under clause 3.1, 3.3, accepted by the Borrower in accordance
with clause 3.1(b), 3.3(c);
	 
	 	b)	 	a wholesale Advance under clause 3.2 the rate quoted in respect of that Advance as Westpac
NZ’s bank bill bid rate (rounded upwards to the nearest first decimal place at the time the
Advance is made) for bank accepted bills of a similar term and amount to the term and amount
of the relevant Advance and accepted by the Borrower in accordance with clause 3.2(b).

Working Capital means, on any date, the amount equal to the aggregate of:

	 	a)	 	accounts receivable (less any provision for doubtful debts);
	 
	 	b)	 	inventory;
	 
	 	c)	 	sundry debtors and prepayments; and
	 
	 	d)	 	other current assets (other than cash), less:
	 
	 	e)	 	accounts payable; and
	 
	 	f)	 	accrued provisions (but excluding provisions in respect of tax), of the Borrower on
that date, each item being referenced to the consolidated financial statements of the Borrower
as if they were prepared on that date.

	25.2	 	General
	 
	 	 	Headings are for convenience only. They do not affect interpretation. The following
rules apply unless the context requires otherwise:

	 	a)	 	Singular includes the plural and the converse;
	 
	 	b)	 	A gender includes all genders;

 

 

	 	c)	 	Where a word or phrase is defined, its other grammatical forms have a corresponding
meaning;
	 
	 	d)	 	Reference to a clause or schedule is a reference to a clause of, or a schedule to,
this Agreement;
	 
	 	e)	 	An example does not limit what else might be included;
	 
	 	f)	 	Reference to a party to this Agreement or another agreement or document includes the
party’s successors and permitted substitutes or assigns;
	 
	 	g)	 	Reference to an agreement or document is to the agreement or document as amended,
novated, supplemented or replaced from time to time, except to the extent prohibited by this
Agreement;
	 
	 	h)	 	Reference to legislation or to a provision of legislation includes a modification or
re-enactment of it, a legislative provision substituted for it and a regulation or statutory
instrument issued under it;
	 
	 	i)	 	Reference to an asset includes any real or personal, present or future, tangible or
intangible property, right or asset (including any Authorisation) and any right, interest,
revenue or benefit in, under or derived from any property right or asset;
	 
	 	j)	 	An Event of Default is continuing until it has been waived in writing by
Westpac NZ;
	 
	 	k)	 	Reference to cleared funds means funds which are freely transferable and immediately
available for disbursement;
	 
	 	l)	 	Reference to a law includes present or future common or customary law and any
statute, statutory instrument, subordinate legislation, regulation, by-law, order or other
legislative measure or any judgment or judicial or administrative order or determination or
decision, in any jurisdiction;
	 
	 	m)	 	Reference to a person includes a natural person, company, corporation, trust,
partnership, firm, joint venture or Governmental Agency, in each case whether or not having
separate legal personality, and any association of entities;
	 
	 	n)	 	Reference to Tax on overall net income of Westpac NZ means tax imposed by the
jurisdiction in which Westpac NZ’s lending branch is located on all or part of its net
income, profits or gains (whether worldwide, or only insofar as such net income, profits or
gains are considered to arise in or relate to a particular jurisdiction, or otherwise);
	 
	 	o)	 	Reference to writing includes a facsimile transmission and any means of reproducing words
in a tangible and permanently visible form.
	 
	 	q)	 	References to Borrower or Guarantor are references to each of them severally as well as to
two or more of them jointly, and the obligations and agreements on their part in this
Agreement will bind every two or more of them jointly and each of them severally.

	25.3	 	Determination, statement and certificate conclusive
	 
	 	 	Except where this Agreement provides otherwise, any determination, statement or certificate
by Westpac NZ or an Officer provided for in this Agreement is conclusive and will bind the
Borrower in the absence of manifest error.
	 
	25.4	 	Document or agreement
	 
	 	 	A reference to an agreement includes a Security Interest, Guarantee, undertaking, deed,
agreement or legally enforceable arrangement whether or not in writing. A reference to a
document includes an agreement (as so defined) in writing, or a certificate, notice,
instrument or document.
	 
	25.5	 	Current accounting practice
	 
	 	 	Reference to Current Accounting Practice is to accounting principles and practices
applying by New Zealand law (and includes generally accepted accounting practice within the
meaning of the Financial Reporting Act 1993) or (if not inconsistent with that law) otherwise
generally accepted in New Zealand, consistently applied. A reference to an accounting term is
to be interpreted according to those principles and practices.

 

 

Schedule 1

director’s certificate

	 	 	 

	TO:

	 	Westpac New Zealand Limited and Westpac Banking Corporation
	 

	 	Legal Services
	 

	 	AUCKLAND
	 

	 	(together the “Banks”)
	 
	 	 
	AND TO:

	 	Minter Ellison Rudd Watts

I,              a director of [              ] (the “Borrower”) on behalf of the board of directors of the Borrower certify that:

	1.	 	Board resolutions

	1.1	 	The board of directors of the Company (Board), having taken all relevant factors
into account, has passed all necessary resolutions (Resolutions) to:

	 	(a)	 	approve the transactions (Transactions) contemplated by the documents listed in the
schedule to this certificate (Documents) and the Documents themselves;

	 	(b)	 	authorise execution of the Documents by the Company in the manner in which they have
actually been executed; and

	 	(c)	 	authorise the persons specified in paragraph 10 below to give any notices and other
communications and take any other action required under, or in connection with, the
Documents on behalf of the Company.

	1.2	 	The Resolutions were duly passed

    [OPTION 1 (Written resolutions)]

    [in writing signed by [all of] the directors of the Company [entitled to receive notice of a
board meeting].]

    OR

    [OPTION 2 (Meeting)]

    [at a meeting of the Board:

	 	(a)	 	which was properly convened; and

	 	(b)	 	in respect of which all quorum requirements were duly observed.]

	1.3	 	The Resolutions remain in full force and effect.

	2.	 	Directors’ self-interested transactions

	2.1	 	[OPTION 1 (No Interested Directors)] [To the best of my knowledge and belief and
after making due enquiry of each director (as that term is defined in section 126 of the
Companies Act 1993 (Act)) of the Company, no such director has an interest (as that term is
defined in section 139 of the Act) in the Transactions.]

    OR

	2.1	 	[OPTION 2 (Interested Directors)] [To the best of my knowledge and belief and
after making due enquiry of each director (as that term is defined in section 126 of the Act)
of the Company, it has been determined that one or more of the directors (as that term is
defined in section 126 of the Act) of the Company is, or may be, interested (as that term is
defined in section 139 of the Act) in the Transactions and such interests have been entered in
the interests register accordingly. The Transactions have been disclosed to all shareholders
of the Company.]

	2.2	 	All of the entitled persons of the Company have agreed in writing (under section
107(3) of the Act) to the Company’s entry into and performance of the Documents and the
Transactions (so that nothing in sections 140 and 141 of the Act will apply to the
Transactions). A true and complete copy of the entitled person agreement is attached.

 

	2.3	 	In approving the Documents and the Transactions, the Board, after taking into
account all relevant factors, considers that the Company is receiving, or will receive, fair value
under them.
	 
	3.	 	Corporate benefit etc.
	 
	 	 	In approving the Documents and the Transactions, the Board, after taking into account all relevant
factors, is satisfied that it is proper for the Company to enter into the Documents and the
Transactions and that:
	 
	 	 	[OPTION 1 (Benefit of Company)] [the Company’s entry into and performance of the Documents and the
Transactions is in the best interests of the Company.]
	 
	 	 	OR
	 
	 	 	[OPTION 2 (Benefit of Holding Company)] [(pursuant to an express provision in the
constitution of the Company) the Company’s entry into and performance of the Documents and the
Transactions is in the best interests of the Company’s holding company [and as the Company is not a
wholly-owned subsidiary of the Company’s holding company, the prior agreement to the Company’s
entry into and performance of the Documents and the Transactions has been obtained from all of the
Company’s shareholders, other than that holding company].
	 
	4.	 	Shareholder resolutions and approval
	 
	4.1	 	[OPTION 1 (No major transaction)] [It has been determined that the Transactions do
not constitute a “major
transaction” for the purposes of section 129 of the Act.
	 
	 	 	OR
	 
	4.1	 	[OPTION 2 (Major transaction)] [It has been determined that the Transactions are [or may
be] a “major transaction” for the purposes of section 129
of the Act. Accordingly, [all of] the
[sole] shareholder[s] of the Company
[have][has] by special resolution:

	 	(a)	 	approved the Documents and the Transactions; and
	 
	 	(b)	 	confirmed, approved and ratified the Resolutions.

	 	 	The special resolutions remain in full force and effect.]
	 
	5.	 	Due execution
	 
	 	 	Each of the Documents has been properly executed by the Company in compliance with [its
constitution and]
section 180(1) of the Act. Each Document that is a deed has been properly executed and delivered in
compliance with section 9 of the Property Law Act 2007.
	 
	6. 	 	 Solvency
	 
	6.1	 	I am not aware of any liquidation proceedings that have been commenced by any
person against the Company, or that are intended or anticipated by the Company.
	 
	6.2	 	Having taken into account all relevant factors, [(including, in the case of a
guarantee, all rights of contribution and subrogation to which the Company would be
entitled if called upon to perform its obligations and the solvency of the guaranteed parties)],
the Board is satisfied that the value of the consideration or benefit received, or to be received,
by the Company is not less than the value of the consideration provided, or to be
provided, by the Company.
	 
	6.3	 	The Company:

	 	(a)	 	is able to pay its due debts and is not insolvent;
	 
	 	(b)	 	will be able to perform its obligations under the Documents and the Transactions when required
to do so;
	 
	 	(c)	 	will not become unable to pay its due debts or insolvent as a result of the Documents or the
Transactions;

 

 

	 	(d)	 	is not engaged, nor is it about to engage, in a business or transaction for which its assets
are, given the nature of its business or transaction, unreasonably small within the meaning of
section 346 of the PLA;
	 
	 	(e)	 	does not intend to incur nor does it believe (acting reasonably) that it is incurring
debts beyond its ability to pay; and
	 
	 	(f)	 	has no intention of prejudicing any of its creditors by its entry into the Documents or the
Transactions.

	7.	 	Financial assistance
	 
	 	 	[OPTION 1 (No Financial Assistance)] [The Transactions do not include or involve any provision by
the Company (directly or indirectly) of financial assistance in connection with the purchase of a
share issued, or to be issued, by the Company or its holding company.]
	 
	 	 	OR
	 
	 	 	[OPTION 2 (Financial Assistance)]
	 
	7.1	 	[The Transactions do [or may] include or involve the provision by the Company
(directly or indirectly) of financial assistance in connection with the purchase of a share issued
or to be issued by the Company or its holding company.
	 
	7.2	 	All of the Company’s entitled persons have agreed in writing under section
107(1)(e) of the Act to the giving of the financial assistance otherwise than in accordance with
sections 76 to 80 of the Act.
	 
	7.3	 	The Board, after taking into account all relevant factors, is satisfied on
reasonable grounds that the Company will, immediately after the giving of the financial assistance,
satisfy the solvency test as set out in section 4 for the purposes of section 108(5) and section
108(5)(A) of the Act.
	 
	7.4	 	Each of the directors of the Company who voted in favour of the giving of the
financial assistance has signed a certificate, stating that, in their opinion, the Company will,
immediately after the financial assistance is given, satisfy the solvency test, and those directors
continue to be satisfied on reasonable grounds that the solvency test will be satisfied immediately
after the financial assistance is given.]
	 
	8.	 	Consents and Authorisations
	 
	 	 	[OPTION 1 (No Consents)] [Except for any consent, approval or authorisation previously referred to
in this certificate, no consents, approvals or authorisations are required by the Company for entry
into, execution or performance of the Documents and the Transactions.]
	 
	 	 	OR
	 
	 	 	[OPTION 2 (Consents Obtained)] [All consents, approvals and authorisations required by the Company
in connection with the entry into, execution and performance of the Documents and the Transactions
have been obtained on an unconditional and unqualified basis and remain in full force and effect.]
	 
	9.	 	Constitutional documents
	 
	 	 	The Company does not have a constitution.
	 
	 	 	OR
	 
	 	 	The copy of the [certificate of incorporation and the] constitution of the Company [(incorporating
all amendments)]
[which is held on its records as maintained on the Companies Office website as at the date of this
certificate][which is attached to this certificate] is complete, correct and includes all
alterations to date.
	 
	10.	 	Authorised signatories
	 
	 	 	The following are the true signatures of the persons who have
been authorised ([any one of them acting alone]/[any two of them acting together]) to give any notices and other communications, and
to take any other action required, under or in connection with the Documents on behalf of the
Company.

 

 

	 	 	 	 	 
	Name	 	Position	 	Signature
	 
	 	 
	 	 
	 	 	 	 	 
	 	 	 	 	 
	 
	 	 
	 	 
	 	 	 	 	 
	 	 	 	 	 
	 
	 	 
	 	 
	 	 	 	 	 
	 	 	 	 	 
	 
	 	 
	 	 

DATED at                    this     day of      
              200 .

	 	 	 	 	 	 	 

	Signature:

	 	/s/ Geoffrey P. Clear
	 	 	 	/s/ Barbara H. Wells
	 

	 	 
	 	 	 	 
	 

	 	Geoffrey P. Clear
	 	 	 	Barbara H. Wells
	 
	 	 	 	 	 	 
	Full Name:

	 	Geoffrey P. Clear
	 	 	 	 

Account
from which the Borrower requests interest to be debited:                                         

Schedule of Documents

	1	 	[Insert description of the Transaction Documents]
	 
	2.	 	[Any other document connected with, incidental to or deemed desirable by the
[Company/Lender] to give effect to, any of the documents listed above.]

 

 

Schedule 2

Drawdown Notice

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