Document:

exv4w18

 

EXHIBIT 4.18

     THE SECURITIES REPRESENTED HEREBY MAY NOT BE TRANSFERRED UNLESS (I) SUCH SECURITIES HAVE BEEN
REGISTERED FOR SALE PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED, (11) SUCH SECURITIES MAY BE
SOLD PURSUANT TO RULE 144(K),OR (111) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO IT THAT SUCH TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE
SECURITIES ACT OF 1933 OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS.

     SUBJECT TO THE PROVISIONS OF SECTION 10 HEREOF, THIS WARRANT SHALL BE VOID AFTER 5:00 P.M.
EASTERN TlME ON DECEMBER 20, 2008 (THE “EXPIRATION DATE).

No. W-

CORGI INTERNATIONAL LIMITED

WARRANT TO PURCHASE ___ AMERICAN DEPOSITARY SHARES

     For VALUE RECEIVED,                      (“Warrantholder”), is entitled to purchase,
subject to the provisions of this Warrant, from Corgi International Limited, a corporation
organized under the laws of Hong Kong (the “Company”), at any time not later than 5:00 P.M.,
Eastern time, on the Expiration Date (as defined above), at an exercise price per share equal to
$7.80 (after giving effect to the Reverse Merger); provided, however, that if such
Holder exercises any Warrant Shares prior to 5:00 p.m. (Pacific Standard Time) on August 15, 2007
or on the 10th business day following the consent of the Majority Holders of the Amendment to
Warrants, Commitment to Issue Replacement Warrants and Waiver (such early exercised Warrants
referred to as the “Early Exercised Warrants”), whichever is later, then for such Early
Exercised Warrants only at an exercise price per share equal to $5.00 (after giving effect to the
Reverse Merger) (the exercise price in effect being called the Warrant Price); provided,
further that the Company shall be required to issue to each Holder who timely exercises
their Early Exercised Warrants new Warrants at an exercise price of $6.00 per share (the
“Replacement Warrants”) to purchase the number of ADSs equal to the product (rounded down
to the nearest whole number) of (i) 0.5 and (ii) the number of Warrants Shares received upon
exercise of the Early Exercised Warrants, ___ of the Company’s American Depositary Shares
(“Warrant Shares”). The number of Warrant Shares purchasable upon exercise of this Warrant and the
Warrant Price shall be subject to adjustment from time to time as described herein.

     This Warrant is one of a series of Warrants of like tenor issued by the Company pursuant to
the Purchase Agreement, dated November 16, 2006 as amended by the Amendment to Warrants, Commitment
to Issue Replacement Warrants, Amendment to Registration Rights Agreement and Waiver, effective as
of August 22, 2007 (the “Purchase Agreement”), among the Company and the investors named therein
and initially covering an aggregate of 4,800,000 ADSs (prior to giving effect to the Reverse
Merger) (collectively, the “Company Warrants”).

 

 

Capitalized terms used herein have the respective meanings ascribed thereto in the Purchase
Agreement unless otherwise defined herein.

     Section 1. Registration. The Company shall maintain books for the transfer and
registration of the Warrant. Upon the initial issuance of this Warrant, the Company shall issue and
register the Warrant in the name of the Warrantholder.

     Section 2. Transfers. As provided herein, this Warrant may be transferred only
pursuant to a registration statement filed under the Securities Act of 1933, as amended (the
“Securities Act”), or an exemption from such registration. Subject to such restrictions, the
Company shall transfer this Warrant from time to time upon the books to be maintained by the
Company for that purpose, upon surrender hereof for transfer, properly endorsed or accompanied by
appropriate instructions for transfer and such other documents as may be reasonably required by the
Company, including, if required by the Company, an opinion of its counsel to the effect that such
transfer is exempt from the registration requirements of the Securities Act, to establish that such
transfer is being made in accordance with the terms hereof, and a new Warrant shall be issued to
the transferee and the surrendered Warrant shall be canceled by the Company.

     Section 3. Exercise of Warrant. Subject to the provisions hereof, the Warrantholder
may exercise this Warrant, in whole or in part, at any time prior to its expiration upon surrender
of the Warrant, together with delivery of a duly executed Warrant exercise form, in the form
attached hereto as Appendix A (the “Exercise Agreement”) and payment by cash, certified check or
wire transfer of funds of the aggregate Warrant Price for that number of Warrant Shares then being
purchased, to the Company during normal business hours on any business day at the Company’s United
States executive offices. The Warrant Shares so purchased shall be deemed to be issued to the
Warrantholder or the Warrantholder’s designee, as the record owner of such shares, as of the close
of business on the date on which this Warrant shall have been surrendered (or the date evidence of
loss, theft or destruction thereof and security or indemnity satisfactory to the Company has been
provided to the Company), the Warrant Price shall have been paid and the completed Exercise
Agreement shall have been delivered. Certificates for the Warrant Shares so purchased shall be
delivered to the Warrantholder within a reasonable time after this Warrant shall have been so
exercised. The certificates so delivered shall be in such denominations as may be requested by the
Warrantholder and shall be registered in the name of the Warrantholder or such other name as shall
be designated by the Warrantholder, as specified in the Exercise Agreement. If this Warrant shall
have been exercised only in part, then, unless this Warrant has expired, the Company shall, at its
expense, at the time of delivery of such certificates, deliver to the Warrantholder a new Warrant
representing the right to purchase the number of shares with respect to which this Warrant shall
not then have been exercised. As used herein, “business day” means a day, other than a Saturday or
Sunday, on which banks in New York City and Hong Kong are open for the general transaction of
business. Each exercise hereof shall constitute the re-affirmation by the Warrantholder that the
representations and warranties contained in Section 5 of the Purchase Agreement are true and
correct in all material respects with respect to the Warrantholder as of the time of such exercise.

     Section 4. Compliance with the Securities Act of 1933. Except as provided in the
Purchase Agreement, the Company may cause the legend set forth on the first page of this
Warrant to be set forth on each Warrant, and a similar legend on any security issued or
issuable

 

 

upon exercise of this Warrant, unless counsel for the Company is of the opinion as to any
such security that such legend is unnecessary.

     Section 5. Payment of Taxes. The Company will pay any documentary stamp taxes
attributable to the initial issuance of Warrant Shares issuable upon the exercise of the Warrant;
provided, however, that the Company shall not be required to pay any tax or taxes which may be
payable in respect of any transfer involved in the issuance or delivery of any certificates for
Warrant Shares in a name other than that of the Warrantholder in respect of which such shares are
issued, and in such case, the Company shall not be required to issue or deliver any certificate for
Warrant Shares or any Warrant until the person requesting the same has paid to the Company the
amount of such tax or has established to the Company’s reasonable satisfaction that such tax has
been paid. The Warrantholder shall be responsible for income taxes due under federal, state or
other law, if any such tax is due.

     Section 6. Mutilated or Missing. Warrants. In case this Warrant shall be mutilated, lost,
stolen, or destroyed, the Company shall issue in exchange and substitution of and upon surrender
and cancellation of the mutilated Warrant, or in lieu of and substitution for the Warrant lost,
stolen or destroyed, a new Warrant of like tenor and for the purchase of a like number of Warrant
Shares, but only upon receipt of evidence reasonably satisfactory to the Company of such loss,
theft or destruction of the Warrant, and with respect to a lost, stolen or destroyed Warrant,
reasonable indemnity with respect thereto, if requested by the Company.

     Section 7. Reservation of Shares. The Company covenants and agrees that all Warrant
Shares that may be issued upon the exercise of the rights represented by this Warrant will, upon
issuance, be validly issued and outstanding, fully paid and nonassessable, and free from all taxes,
liens and charges with respect to the issuance thereof. The Company further covenants and agrees
that the Company will at all times prior to the Expiration Date, have authorized and reserved, free
from preemptive rights, a sufficient number of ADSs (and underlying Ordinary Shares of the Company)
to provide for the exercise of the rights represented by this Warrant. If at any time prior to the
Expiration Date the number of authorized but unissued ADSs or Ordinary Shares shall not be
sufficient to permit exercise of this Warrant, the Company will take such corporate action as may,
in the opinion of its counsel, be necessary to increase its authorized but unissued Ordinary Shares
and ADSs to such number of shares as shall be sufficient for such purposes.

     Section 8. Adjustments. Subject and pursuant to the provisions of this Section 8, the
Warrant Price and number of Warrant Shares subject to this Warrant shall be subject to adjustment
from time to time as set forth hereinafter.

          (a) If the Company shall, at any time or from time to time while this Warrant is outstanding,
pay a dividend or make a distribution on its Ordinary Shares or ADSs in Ordinary Shares or ADSs,
subdivide its outstanding Ordinary Shares or ADSs into a greater number of shares or combine its
outstanding Ordinary Shares or ADSs into a smaller number of shares or issue by reclassification of
its outstanding Ordinary Shares or ADSs any shares of its capital stock (including any such
reclassification in connection with a consolidation or merger in which the Company is the
continuing corporation), then (i) the Warrant Price in effect immediately
prior to the date on which such change shall become effective shall be adjusted by multiplying

 

 

such Warrant Price by a fraction, the numerator of which shall be the number of Ordinary Shares or
ADSs, as applicable, outstanding immediately prior to such change and the denominator of which
shall be the number of Ordinary Shares or ADSs, as applicable, outstanding immediately after giving
effect to such change and (ii) the number of Warrant Shares purchasable upon exercise of this
Warrant shall be adjusted by multiplying the number of Warrant Shares purchasable upon exercise of
this Warrant immediately prior to the date on which such change shall become effective by a
fraction, the numerator of which is shall be the Warrant Price in effect immediately prior to the
date on which such change shall become effective and the denominator of which shall be the Warrant
Price in effect immediately after giving effect to such change, calculated in accordance with
clause (i) above. Such adjustments shall be made successively whenever any event listed above shall
occur.

          (b) If any capital reorganization, reclassification of the capital stock of the Company,
consolidation or merger of the Company with another corporation in which the Company is not the
survivor, or sale, transfer or other disposition of all or substantially all of the Company’s
assets to another corporation shall be effected, then, as a condition of such reorganization,
reclassification, consolidation, merger, sale, transfer or other disposition, lawful and adequate
provision shall be made whereby each Warrantholder shall thereafter have the right to purchase and
receive upon the basis and upon the terms and conditions herein specified and in lieu of the
Warrant Shares immediately theretofore issuable upon exercise of the Warrant, such shares of stock,
securities or assets as would have been issuable or payable with respect to or in exchange for a
number of Warrant Shares equal to the number of Warrant Shares immediately theretofore issuable
upon exercise of the Warrant, had such reorganization, reclassification, consolidation, merger,
sale, transfer or other disposition not taken place, and in any such case appropriate provision
shall be made with respect to the rights and interests of each Warrantholder to the end that the
provisions hereof (including, without limitation, provision for adjustment of the Warrant Price)
shall thereafter be applicable, as nearly equivalent as may be practicable in relation to any
shares of stock, securities or assets thereafter deliverable upon the exercise hereof. The Company
shall not effect any such consolidation, merger, sale, transfer or other disposition unless prior
to or simultaneously with the consummation thereof the successor corporation (if other than the
Company) resulting from such consolidation or merger, or the corporation purchasing or otherwise
acquiring such assets or other appropriate corporation or entity shall assume the obligation to
deliver to the Warrantholder, at the last address of the Warrantholder appearing on the books of
the Company, such shares of stock, securities or assets as, in accordance with the foregoing
provisions, the Warrantholder may be entitled to purchase, and the other obligations under this
Warrant. The provisions of this paragraph (b) shall similarly apply to successive reorganizations,
reclassifications, consolidations, mergers, sales, transfers or other dispositions.

     (c) In case the Company shall fix a payment date for the making of a distribution to all
holders of is Ordinary Shares or ADSs (including any such distribution made in connection with a
consolidation or merger in which the Company is the continuing corporation) of evidences of
indebtedness or assets (other than cash dividends or cash distributions payable out of consolidated
earnings or earned surplus or dividends or distributions referred to in Section 8(a)), or
subscription rights or warrants, the Warrant Price to be in effect after such payment date shall be
determined by multiplying the Warrant Price in effect immediately prior to such payment date
by a fraction, the numerator of which shall be the total number of Ordinary Shares or ADSs, as

 

 

applicable, outstanding multiplied by the Market Price (as defined below) per Ordinary Share or
ADS, as applicable, prior to such payment date, less the fair market value (as determined by the
Company’s Board of Directors in good faith) of said assets or evidences of indebtedness so
distributed, or of such subscription rights or warrants, and the denominator of which shall be the
total number of Ordinary Shares or ADSs, as applicable, outstanding multiplied by such Market Price
per Ordinary Share or ADS, as applicable, immediately prior to such payment date. “Market Price” as
of a particular date (the “Valuation Date”) shall mean the following: (a) if the Ordinary Shares or
the ADSs, as applicable, are then listed on a national stock exchange, the closing sale price of
one Ordinary Share or ADS on such exchange on the last trading day prior to the Valuation Date; (b)
if the Ordinary Shares or the ADSs, as applicable, are then quoted on the National Association of
Securities Dealers, Inc. OTC Bulletin Board (the “Bulletin Board”) or such similar quotation system
or association, the closing sale price of one Ordinary Share or ADS on the Bulletin Board or such
other quotation system or association on the last trading day prior to the Valuation Date or, if no
such closing sale price is available, the average of the high bid and the low asked price quoted
thereon on the last trading day prior to the Valuation Date; or (c) if the Ordinary Shares or the
ADSs, as applicable, are not then listed on a national stock exchange or quoted on the Bulletin
Board or such other quotation system or association, the fair market value of one Ordinary Share or
ADS, as applicable, as of the Valuation Date, as determined in good faith by the Board of Directors
of the Company and the Warrantholder. If the Ordinary Shares or the ADSs, as applicable, are not
then listed on a national securities exchange, the Bulletin Board or such other quotation system or
association, the Board of Directors of the Company shall respond promptly, in writing, to an
inquiry by the Warrantholder prior to the exercise hereunder as to the fair market value of an
Ordinary Share or an ADS, as applicable, as determined by the Board of Directors of the Company. In
the event that the Board of Directors of the Company and the Warrantholder are unable to agree upon
the fair market value in respect of subpart (c) of this paragraph, the Company and the
Warrantholder shall jointly select an appraiser, who is experienced in such matters. The decision
of such appraiser shall be final and conclusive, and the cost of such appraiser shall be borne
equally by the Company and the Warrantholder. Such adjustment shall be made successively whenever
such a payment date is fixed.

     (d) An adjustment to the Warrant Price shall become effective immediately after the payment
date in the case of each dividend or distribution and immediately after the effective date of each
other event which requires an adjustment.

     (e) In the event that, as a result of an adjustment made pursuant to this Section 8, the
Warrantholder shall become entitled to receive any shares of capital stock of the Company other
than Ordinary Shares or ADSs, the number of such other shares so receivable upon exercise of this
Warrant shall be subject thereafter to adjustment from time to time in a manner and on terms as
nearly equivalent as practicable to the provisions with respect to the Warrant Shares contained in
this Warrant.

     Section 9. Fractional Interest. The Company shall not be required to issue fractions
of Warrant Shares upon the exercise of this Warrant. If any fractional share of an ADS would,
except for the provisions of the first sentence of this Section 9, be deliverable upon such
exercise, the Company, in lieu of delivering such fractional share, shall pay to the
exercising

 

 

Warrantholder an amount in cash equal to the Market Price of such fractional ADS on the
date of exercise.

     Section 10. Extension of Expiration Date; Termination upon Company Sale.

     (a) If the Company fails to cause any Registration Statement covering Registrable Securities
(as defined in the Registration Rights Agreement) to be declared effective prior to the applicable
dates set forth in the Registration Rights Agreement, or if any of the events specified in Section
2(c)(ii) of the Registration Rights Agreement occurs, and the Blackout Period (as defined in the
Registration Rights Agreement) (whether alone, or in combination with any other Blackout Period)
continues for more than 60 days in any 12 month period, or for more than a total of 90 days, then
the Expiration Date of this Warrant shall be extended one day for each day beyond the 60-day or
90-day limits, as the case may be, that the Blackout Period continues.

     (b) Notwithstanding the other provisions of this Warrant, the Expiration Date shall be
accelerated so that this Warrant shall expire upon the consummation of a Company Sale. As used
herein, “Company Sale” shall mean (x) the cash sale of all or substantially all of the Company’s
assets, in a single transaction or series of related transactions, or (y) the merger or other
combination of the Company with .another entity in which the holders of the Company’s equity
securities immediately prior to such merger or other combination receive only cash in payment for
their equity securities.

     Section 11. Benefits. Nothing in this Warrant shall be construed to give any person,
firm or corporation (other than the Company and the Warrantholder) any legal or equitable right,
remedy or claim, it being agreed that this Warrant shall be for the sole and exclusive benefit of
the Company and the Warrantholder.

     Section 12. Notices to Warrantholder. Upon the happening of any event requiring an
adjustment of the Warrant Price, the Company shall promptly give written notice thereof to the
Warrantholder at the address appearing in the records of the Company, stating the adjusted Warrant
Price and the adjusted number of Warrant Shares resulting from such event and setting forth in
reasonable detail the method of calculation and the facts upon which such calculation is based.
Failure to give such notice to the Warrantholder or any defect therein shall not affect the
legality or validity of the subject adjustment.

     Section 13. Identity of Transfer Agent. The Transfer Agent for the ADSs is the Bank
 of New York. Upon the appointment of any subsequent transfer agent for the Warrant Shares or other
shares of the Company’s capital stock issuable upon the exercise of the rights of purchase
represented by the Warrant, the Company will mail to the Warrantholder a statement setting forth
the name and address of such transfer agent.

     Section 14. Notices. Unless otherwise provided, any notice required or permitted under
this Warrant shall be given in writing and shall be deemed effectively given as hereinafter
described (i) if given by personal delivery, then such notice shall be deemed given upon such
delivery, (ii) if given by telex or facsimile, then such notice shall be deemed given upon
receipt

 

 

of confirmation of complete transmittal, (iii) if given by mail, then such notice shall be
deemed given upon the earlier of (A) receipt of such notice by the recipient or (B) three days
after such notice is deposited in first class mail, postage prepaid, and (iv) if given by an
internationally recognized overnight air courier, then such notice shall be deemed given one
business day after delivery to such carrier. All notices shall be addressed as follows: if to the
Warrantholder, at its address as set forth in the Company’s books and records and, if to the
Company, at the address as follows, or at such other address as the Warrantholder or the Company
may designate by ten days’ advance written notice to the other:

If to the Company:

Corgi International Limited

  201 North Civic Drive, #239

   Walnut Creek, California 94596

  Attention:Jack Lawrence, CFO and COO

With a copy to:

Orrick, Herrington & Sutcliffe LLP

The Orrick Building

405 Howard Street

San Francisco, CA 94105

Attention: Lawrence T. Kane Fax: (415) 773-5759

     Section 15. Registration Rights. The initial Warrantholder is entitled to the benefit
of certain registration rights with respect to the Warrant Shares as provided in the Registration
Rights Agreement, and any subsequent Warrantholder may be entitled to such rights.

     Section 16. Successors. All the covenants and provisions hereof by or for the benefit
of the Warrantholder shall bind and inure to the benefit of its respective successors and assigns
hereunder.

     Section 17. Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This Warrant
shall be governed by, and construed in accordance with, the internal laws of the State of New York,
without reference to the choice of law provisions thereof. The Company and, by accepting this
Warrant, the Warrantholder, each irrevocably submits to the exclusive jurisdiction of the courts of
the State of New York located in New York County and the United States District Court for the
Southern District of New York for the purpose of any suit, action, proceeding or judgment relating
to or arising out of this Warrant and the transactions contemplated hereby. Service of process in
connection with any such suit, action or proceeding may be served on each party hereto anywhere in
the world by the same methods as are specified for the giving of notices under this Warrant. The
Company and, by accepting this Warrant, the Warrantholder, each irrevocably consents to the
jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in
such court. The Company and, by accepting this Warrant, the Warrantholder, each irrevocably waives
any objection to the laying of venue of
any such suit, action or proceeding brought in such courts and irrevocably waives any claim
that

 

 

any such suit, action or proceeding brought in any such court has been brought in an
inconvenient forum. EACH OF THE COMPANY AND, BY ITS ACCEPTANCE HEREOF, THE WARRANTHOLDER HEREBY
WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS WARRANT AND
REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

     Section 18. Call Provision. Notwithstanding any other provision contained in this
Warrant to the contrary, in the event that the closing bid price per ADS as traded on the Nasdaq
Global Market (or such other exchange or stock market on which the ADSs may then be listed or
quoted) equals or exceeds $11.70 (appropriately adjusted for any stock split, reverse stock split,
stock dividend or other reclassification or combination of the ADSs occurring after the date
hereof) for ten (10) consecutive trading days commencing after the Registration Statement (as
defined in the Registration Rights Agreement) has been declared effective, the Company, upon thirty
(30) days prior written notice (the “Notice Period”) given to the Warrantholder within one business
day immediately following the end of such ten (10) trading day period, may demand that the
Warrantholder exercise its cash exercise rights hereunder, and the Warrantholder must exercise its
rights hereunder prior to the end of the Notice Period; provided that (i) the Company
simultaneously gives a similar notice to all holders of Company Warrants, (ii) all of the ADSs
issuable hereunder either (A) are registered pursuant to an effective Registration Statement (as
defined in the Registration Rights Agreement) which has not been suspended and for which no stop
order is in effect, and pursuant to which the Warrantholder is able to sell such ADSs at all times
during the Notice Period or (B) no longer constitute Registrable Securities (as defined in the
Registration Rights Agreement) and (iii) this Warrant is fully exercisable for the full amount of
Warrant Shares covered hereby. If such exercise is not made or if only a partial exercise is made,
any and all rights to further exercise the Warrant shall cease upon the expiration of the Notice
Period.

     Section 19. No Rights as Stockholder. Prior to the exercise of this Warrant, the
Warrantholder shall not have or exercise any rights as a stockholder of the Company by virtue of
its ownership of this Warrant.

     Section 20. Amendment; Waiver. Any term of this Warrant may be amended or waived
(including the adjustment provisions included in Section 8 of this Warrant) upon the written
consent of the Company and the holders of Company Warrants representing at least 50% of the number
of ADSs then subject to all outstanding Company Warrants (the “Majority Holders”); provided, that
(x) any such amendment or waiver must apply to all Company Warrants; and (y) the number of Warrant
Shares subject to this Warrant, the Warrant Price and the Expiration Date may not be adversely
amended, and the right to exercise this Warrant may not be altered or waived, without the written
consent of the Warrantholder.

     Section 21. Section Headings. The section headings in this Warrant are for the
convenience of the Company and the Warrantholder and in no way alter, modify, amend, limit or
restrict the provisions hereof.

 

 

     IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed, as of the ___
day of August, 2007

	 	 	 	 	 
	 	CORGI INTERNATIONAL LIMITED

 	 
	 	     By:  	 	 
	 	 	Jack Lawrence, Chief Financial Officer, Chief Operating Officer 
	 
	 	 	 	 
	 

 

 

APPENDIX A CORGI INTERNATIONAL LIMITED WARRANT EXERCISE FORM

To Corgi International Limited:

     The undersigned hereby irrevocably elects to exercise the right of purchase represented by the
within Warrant (“Warrant”) for, and to purchase thereunder by the payment of the Warrant Price and
surrender of the Warrant, American Depositary Shares (“Warrant Shares”) provided for therein, and
requests that certificates for the Warrant Shares be issued as follows:

                                                            

Name

                                                            

Address

                                                            

                                                            

Federal Tax ID or Social Security No.

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	and delivered by
	 	(certified mail to the above address, or	 	 	 	 	 	 
	 

	 	 	 	(electronically
(provide DWAC Instructions) or
	 	
	 	 
	 

	 	 	 	(other (specify):
	 	 		 	 	 

and, if the number of Warrant Shares shall not be all the Warrant Shares purchasable upon exercise
of the Warrant, that a new Warrant for the balance of the Warrant Shares purchasable upon exercise
of this Warrant be registered in the name of the undersigned Warrantholder or the undersigned’s
Assignee as below indicated and delivered to the address stated below.

Dated:                                        , ____

	 	 	 
	Note: The signature must correspond
with the name of the Warrantholder as written on the
first page of the Warrant in every particular,
without alteration or enlargement or any change
whatever, unless the Warrant has been assigned.

	 	
Signature:                                        

                                                                                

Name (please print)

                                                                                

                                                                                

Address

                                                                                

Federal Identification or Social Security No.

Assignee:exv4w19

 

EXHIBIT 4.19

COFACE RECEIVABLES

FINANCE LIMITED

Receivables Finance

Agreement

This document is important. If you are in any doubt about its effect then,
before you sign it, you should consult your solicitors or accountants about
your resulting obligations

 

 

We, Coface Receivables Finance Limited, (English Company Number 04933860), agree with you, the
Client referred to in the Client Particulars at the end of this document to provide you with a
receivables finance facility as set out below which are also subject to our separate Standard Terms
and Conditions.

	1.	 	Date and Commencement
	 
	 	 	This Agreement is made on the date shown before the signatures below and its Commencement
Date is                                          2006.
	 
	2.	 	Type of Facility
	 
	 	 	You will sell to us and we will purchase your Debts on the following basis:

	 	2.1	 	You have an invoice discounting facility, which means you will maintain the
sales ledger;
	 
	 	2.2	 	We appoint you until further notice to act as our undisclosed collection agents
to collect Debts from your Customers.
	 
	 	2.3	 	A recourse basis applies which means that if a Debt is not paid to us by the
end of the Funding Period, you must repay to us what we have already paid to you.
	 
	 	2.4	 	Your Debts to which the Agreement applies are:

	 	•	 	All UK Debts and all Export Debts from the following Approved Countries
	 
	 	•	 	As defined in your insurance policy held with Coface

	 	 	 	and which are invoiced in the currency(ies) set out in paragraph 2.6
	 
	 	2.5	 	We will purchase your Debts invoiced in Sterling. You also have a Foreign
Currency Facility so we will purchase your Debts invoiced in Approved Currencies and we
will pay the Purchase Price only in the Approved Currency of the Debt
	 
	 	2.6	 	Approved currencies are: GBP, Euro and USD

2

 

	3.	 	Facility Particulars

	 	 	 	 	 	 	 
	3.1	 	The Early Payment Percentage is (definition of “Availability”):
	 	 	75 	*%
	 	 	 
	 	 	 	 
	3.2	 	The Maximum Funds In Use must not exceed (condition 10.8):
	 	£	5,000,000	 
	 	 	 
	 	 	 	 
	3.3	 	The
Funding Period from the invoice date of a Debt is: (conditions 11.5 and 11.8.7):
	 	123 Days	 
	 	 	 
	 	 	 	 
	3.4	 	The Early Payment Charge is at the following rate per
annum above Base Rate (conditions 4.1.3, 10.6, 11.1.2 and 11.2):
	 	 	1.75	%
	 	 	 
	 	 	 	 
	 	 	but with a minimum Early Payment Charge of:
	 	 	3	%
	 	 	 
	 	 	 	 
	3.5	 	The Service Fee is at the following percentage of the Notified
Value of each Debt (conditions 4.1, 11.1, 11.3):
	 	 	0	%
	 	 	 
	 	 	 	 
	 	 	but with a minimum Service Fee in each twelve month period
commencing on the first day of the month following the
Commencement Date and each anniversary thereof of:
	 	£	12,000	 
	 	 	 
	 	 	 	 
	3.6	 	The Extended Service Fee is at the following percentage of the
Notified Value of each Debt for each 30 day period or part
thereof after the end of the Funding Period that the Debt
remains outstanding (condition 11.5);
	 	 	0	%
	 	 	 
	 	 	 	 
	3.7	 	The Arrangement Fee payable on signature of this Agreement is
(condition 11.1.1);
	 	£	1,000	 
	 	 	 
	 	 	 	 
	3.8	 	The Annual Review Fee payable on each anniversary of the
Commencement Date after each month end is (condition 11.1.5):
	 	£	0	 
	 	 	 
	 	 	 	 
	3.9	 	The Concentration Limit is (definition of “Concentration Limit”
and “Unapproved Debt”):
	 	 	30	%
	 	 	 
	 	 	 	 
	3.10	 	The Shortfall Amount is (condition 14.1.5):
	 	£	25	 
	 	 	 
	 	 	 	 
	3.11	 	The Monthly Returns date after month end is (condition 19.5):
	 	10 Days	 
	 	 	 
	 	 	 	 
	3.12	 	The Default Funding Limit per Customer is (condition 5.1):
	 	£	10,000	 

 

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

3

 

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

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

	5.	 	Additional Conditions applying at all times

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

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

4

 

	 	 	 
	CLIENT PARTICULARS
	 	 
	 
	 	 
	NAME:

	 	Corgi Classics Ltd
	 
	 	 
	COMPANIES REGISTRATION NO:

	 	 03034370
	 
	 	 
	*REGISTERED IN ENGLAND AND WALES
	 	 
	 
	 	 
	ADDRESS:

	 	Meridian East
	 
	 	 
	 

	 	Meridian Business Park
	 
	 	 
	 

	 	Leicester
	 
	 	 
	 

	 	LE19 1RL
	 
	 	 
	NATURE OF YOUR BUSINESS:

	 	Design, marketing and distribution of
precision die cast collectables.
	 
	 	 

	 	 	 
	YOUR CREDIT TERMS:

	 	For Customers in the U.K; these do not exceed 90 days
from date of invoice with a settlement discount not
exceeding 0%.
	 
	 	 
	 

	 	For Customers In Approved Countries these do not exceed
90 days from date of Invoice with a settlement discount
not exceeding 0%.

5

 

SIGNATURES

To confirm the respective consent of each party to this Agreement (including its separate Standard
Terms and Conditions) and to acknowledge having had the opportunity to take independent legal
advice both parties have executed and delivered this Agreement as a deed below on the                 day
of            2006.

Signed on behalf of the Client by the following who are duly authorised

Director’s Signature

Director’s Full Names

Director and/Company Secretary’s

Signature

Director and/Company Secretary’s

Full Names

*Delete as appropriate

Signed by the following as attorney for Coface Receivables Finance Limited in the presence of the
witness stated below

Attorney’s Signature

Attorney’s Name

Witness’s Signature

Witness’s Name

Witness’s Address

6

 

Standard Tariff Fees

The following list of standard fees will be debited to your account as appropriate;

	 	 	 
	Excess Facility Fee

	 	 1% of value
	 

	 	 To a minimum of £100
	 
	 	 
	CHAPS Payments

	 	 £30
	 
	 	 
	BACS Payments

	 	 Free of charge
	 
	 	 
	Payments in Currencies other than Facility Currency

	 	 £50 + banks costs
	 
	 	 
	Payments to Third Parties

	 	 £50
	 
	 	 
	Legal Action Letters

	 	 £10
	 
	 	 
	Unpaid Remittance

	 	 £15
	 
	 	 
	Alteration to Agreement Operating Terms

	 	 £100
	 
	 	 
	Copy Statements/Reports
(greater than 3 months old)

	 	 £10 per document
	 
	 	 
	Audit / Special Visits

	 	 £500 per day
	 
	 	 
	Audit / Bank Letters

	 	 £50
	 
	 	 
	Document Registration Fee

	 	 £150
	 
	 	 
	Trust Account Charges

	 	 As charged by our bankers

7

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