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Unassociated Document

    EXHIBIT
      10.1

    

      

       

      LOAN
        AND SECURITY AGREEMENT

      

      By
        and Between

      

      WESTERNBANK
        PUERTO RICO

      (BUSINESS
        CREDIT DIVISION)

      as
        Lender

       

      And

      

      INYX
        EUROPE LIMITED

       

      And

      

      CELLTECH
        MANUFACTURING

      SERVICES
        LIMITED

       

      as
        Borrowers

       

      Dated:
        AUGUST30, 2005

      

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        LOAN
          AND SECURITY AGREEMENT

      

      

      This
        Loan
        and Security Agreement, dated as of August 30, 2005, is entered into by and
        between Westernbank Puerto Rico, a Puerto Rico Banking corporation (“Lender”)
        and Inyx Europe Limited (“Inyx EU”), an England And Wales corporation and
        Celltech Manufacturing Services Limited (the name of which is in the process
        of
        being changed to “Ashton Pharmaceuticals Limited) (“CMSL”), an England and Wales
        corporation (Inyx EU and CMSL are sometimes hereinafter referred to as
“Borrower” or “Borrowers”).

      

      WITNESSETH

       

      WHEREAS,
        Inyx EU’s parent corporation, Inyx, Inc.(“Inyx”) and Borrowers’ Affiliates, Inyx
        USA, Ltd.(“Inyx USA”) and Inyx Pharma Limited (“Inyx Pharma”) and Lender have
        entered into certain financing arrangements pursuant to which Lender has
        made
        loans and provided other financial accommodations to such Persons;

       

      WHEREAS,
        Inyx EU wishes to purchase all of the issued and outstanding shares of Capital
        Stock of CMSL from Seller in order to acquire CMSL’s business and
        assets;

       

      WHEREAS,
        Borrowers and certain of their Affiliates have requested that Lender provide
        Borrowers with a credit facility and financial accommodations to be used
        in part
        to help pay the purchase price of such stock and for working capital;
        and

       

      WHEREAS,
        Lender is willing to provide such credit facility and to make loans and provide
        such financial accommodations on the terms and conditions set forth
        herein;

      

      NOW
        THEREFORE, in consideration of the mutual conditions and agreements set forth
        herein, and for other good and valuable consideration, the receipt and
        sufficiency of which is hereby acknowledged, the parties hereto agree as
        follows:

      

      Section
        1. DEFINITIONS

       

      All
        terms
        used herein which are defined in Article 1 or Article 9 of the Uniform
        Commercial Code shall have the meanings given therein unless otherwise defined
        in this Agreement. All references to the plural herein shall also mean the
        singular and to the singular shall also mean the plural unless the context
        otherwise requires. All references to Borrower and Lender or pursuant to
        the
        definitions set forth in the recitals hereto, or to any other person herein,
        shall include their respective successors and assigns. The words "hereof",
        "herein", "hereunder", "this Agreement" and words of similar import when
        used in
        this Agreement shall refer to this Agreement as a whole and not any particular
        provision of this Agreement and as this Agreement now exists or may hereafter
        be
        amended, modified, supplemented, extended, renewed, restated or replaced.
        The
        word "including" when used in this Agreement shall mean "including, without
        limitation". An Event of Default shall exist or continue or be continuing
        until
        such Event of Default is waived in accordance with Section 11.3 or is cured
        in a
        manner satisfactory to Lender, if such Event of Default is capable
        of being cured as determined by Lender. Any accounting term used herein unless
        otherwise defined in this Agreement shall have the meanings customarily given
        to
        such term in accordance with GAAP. For purposes of this Agreement, the following
        terms shall have the respective meanings given to them below:

      

      
        
          
          

        

        
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      1.1
        “Accounts” shall mean all present and future rights of Borrower to payment for
        goods sold or leased or for services rendered, which are not evidenced by
        instruments or chattel paper, and whether or not earned by
        performance.

      

      1.2
        “Adjusted Net Worth” shall mean as to any Person, at any time, in accordance
        with GAAP (except as otherwise set forth below), on a consolidated basis
        for
        such Person and its subsidiaries (if any), the amount equal to the sum of:
        (a)
        the difference between: (i) the aggregate net book value of all assets of
        such
        Person and its subsidiaries, calculating the book value of inventory for
        this
        purpose on a first-in-first-out basis, after deducting from such book values
        all
        appropriate reserves in accordance with GAAP (including all reserves for
        doubtful receivables, obsolescence, depreciation and amortization) and (ii)
        the
        aggregate amount of the indebtedness and other liabilities of such Person
        and
        its subsidiaries (including tax and other proper accruals) plus
        (b)
        indebtedness of such Person and its subsidiaries which is subordinated in
        right
        of payment to the full and final payment of all of the Obligations on terms
        and
        conditions acceptable to Lender plus
        (c) the
        aggregate excess of the appraised value of all assets of such Person and
        its
        subsidiaries over the net book value of all assets of such Person and its
        subsidiaries (after deducting from such book values all appropriate reserves
        in
        accordance with GAAP, including all reserves for doubtful receivables,
        obsolescence, depreciation and amortization), based on appraisals acceptable
        to
        Lender.

      

      1.3
        “Affiliate” shall mean, with respect to a specified Person, any other Person
        which directly or indirectly, through one or more intermediaries, controls
        or is
        controlled by or is under common control with such Person, and without limiting
        the generality of the foregoing, includes (a) any Person which beneficially
        owns
        or holds ten percent (10%) or more of any class of voting stock of such Person
        or other equity interests in such Person, (b) any Person of which such Person
        or
        a Subsidiary of such Person beneficially owns or holds ten percent (10%)
        or more
        of any class of voting stock or in which such Person beneficially owns or
        holds
        ten percent (10%) or more of the equity interests and (c) any director or
        executive officer of such Person. For the purposes of this definition, the
        term
“control” (including with correlative meanings, the terms (“controlled by and
        under common control with”), as used with respect to any Person, means the
        possession, directly or indirectly, of the power to direct or cause the
        direction of the management and policies of such Person, whether through
        the
        ownership of voting stock, by agreement or otherwise.

      

      
        
          
          

        

        
          -3-

          
            

          

        

      

      1.4
        “Ashton Real Property” shall mean the real property, together will all
        buildings, structures and other improvements located thereon, of CMSL located
        in
        Ashton, England forming part of CMSL’s assets and all licenses, easements and
        appurtenances thereto.

      

      1.5
        “Availability Reserves” shall mean, as of any date of determination, such
        amounts as Lender may from time to time establish and revise in good faith
        reducing the amount of Revolving Loans and Letter of Credit Accommodations
        which
        would otherwise be available to Borrowers under the lending formula(s) provided
        for herein: (a) to reflect events, conditions, contingencies or risks which,
        as
        determined by Lender in good faith, do or may affect either (i) the Collateral
        or any other property which is security for the Obligations or its value,
        (ii)
        the assets, business or prospects of any Borrower or any Obligor or (iii)
        the
        security interests and other rights of Lender in the Collateral (including
        the
        enforceability, perfection and priority thereof) or (b) to reflect Lender's
        good
        faith belief that any collateral report or financial information furnished
        by or
        on behalf of Borrowers, or any Obligor to Lender is or may have been incomplete,
        inaccurate or misleading in any material respect or (c) to reflect outstanding
        Letter of Credit Accommodations as provided in Section 2.2 hereof or (d)
        in
        respect of any state of facts which Lender determines in good faith constitutes
        an Event of Default or may, with notice or passage of time or both, constitute
        an Event of Default.

      

      1.6
        “Blocked Accounts” shall have the meaning set forth in section 6.3
        hereof.

      

      1.7
        “Business Day” shall mean any day other than a Saturday, Sunday, or other day on
        which commercial banks are authorized or required to close under the laws
        of the
        Commonwealth of Puerto Rico and a day on which Lender is open for the
        transaction of business.

      

      1.8
        “Capital Lease” shall mean, as applied to any Person, any lease of (or any
        agreement conveying the right to use) any property (whether real, personal
        or
        mixed) by such Person as lessee which in accordance with GAAP, is required
        to be
        reflected as a liability on the balance sheet of such Person.

      

      1.9
        “Capital Stock” shall mean, with respect to any Person, any and all shares,
        interests, participations or other equivalents (however designated) of such
        Person’s capital stock, partnership interests or limited liability company
        interests at any time outstanding, and any and all rights, warrants or options
        exchangeable for or convertible into such capital stock or other interests
        (but
        excluding any debt security that is exchangeable for or convertible into
        such
        capital stock).

      

      
        
          
          

        

        
          -4-

          
            

          

        

      

      1.10
        “Cash Equivalents” shall mean, at any time, (a) any evidence of indebtedness
        with a maturity date of one hundred eighty (180) days or less issued or directly
        and fully guaranteed or insured by the United States of America of any agency
        or
        instrumentality thereof; provided that,
        the
        full faith and credit of the United States of America is pledged in support
        thereof; (b) certificates of deposit or bankers’ acceptances with a maturity of
        one hundred eighty (180) days or less of any financial institution that is
        a
        member of the Federal Reserve System having combined capital and surplus
        and
        undivided profits of not less than $250,000,000; (c) commercial paper (including
        variable rate demand notes) with a maturity of one hundred eighty (180) days
        or
        less issued by a corporation (except an Affiliate of a Borrower) organized
        under
        the laws of any State of the United States of America or the District of
        Columbia and rated at least A-1 by Standard & Poor’s Ratings Service, a
        division of The McGraw-Hill Companies, Inc. or at least P-1 by Moody’s Investors
        Service, Inc.; (d) repurchase obligations with a term of not more than thirty
        (30) days for underlying security of the types described in clause (a) above
        entered into with any financial institution having combined capital and surplus
        and undivided profits of not less than $250,000,000; (e) repurchase agreements
        and reverse repurchase agreements relating to marketable direct obligations
        issued or unconditionally guaranteed by the United States of America or issued
        by any governmental agency thereof and backed by the full faith and credit
        of
        the United States of America, in each case maturing within one hundred eighty
        (180) days or less from the date of acquisition; provided,
        that,
        the
        terms of such agreements comply with the guidelines set forth in the Federal
        Financial Agreements of Depository Institutions with Securities Dealers and
        Others, as adopted by the Comptroller of the Currency on October 31, 1985;
        and
        (f) investments in money market funds and mutual funds which invest
        substantially all of their assets in securities of the types described in
        clauses (a) through (e) above.

      

      1.11
        “Change of Control” shall mean (a) the transfer (in one transaction or a series
        of transactions) of all or substantially all of the assets of a Borrower
        to any
        Person or group (as such term is used in Section 13(d)(3) of the Securities
        And
        Exchange Act of 1934[the Exchange Act]); (b) the liquidation or dissolution
        of a
        Borrower or the adoption of a plan by the stockholders of a Borrower relating
        to
        the dissolution or liquidation of any Borrower; (c) the acquisition by any
        Person or group (as such term is used in Section 13(d)(3) of the Exchange
        Act),
        of beneficial ownership directly or indirectly, of a majority of the voting
        power of the total outstanding voting stock of any Borrower or (d) during
        any
        period of one (1) year, individuals who at the beginning of such period
        constituted the Board of Directors of any Borrower cease for any reason to
        constitute a majority of the Board of Directors of such Borrower, then still
        in
        office; or (e) the failure of (i) the present beneficial holders of voting
        stock
        of Inyx to own and control, directly or indirectly fifty percent(50%)of the
        voting power of the total outstanding voting stock of Inyx, and (ii) Inyx
        to own
        and control, directly or indirectly, one hundred (100%) percent of the voting
        power of the total outstanding voting stock of Borrowers.

      

      
        
          
          

        

        
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      1.12
        “Closing Date” shall mean the date of making of the initial Loans hereunder by
        Lender for the closing of the transactions contemplated by the Purchase
        Agreements.

      

      1.13
        “Code” shall mean the Internal Revenue Code of 1986, as amended.

      

      1.14
        “Collateral” shall have the meaning set forth in Section 5 hereof.

      

      1.15
        “Collateral Access Agreement” shall mean an agreement in writing, in form and
        substance satisfactory to Lender, from any lessor of premises to any Borrower
        or
        any other Person to whom any Collateral(including Inventory, Equipment, bills
        of
        lading or other documents of title)is consigned or who has custody, control
        or
        possession of any such Collateral or is otherwise the owner or operator of
        any
        premises on which any of such Collateral is located, pursuant to which such
        lessor, consignee or other Person, inter
        alia,
        acknowledges, in form and substance satisfactory to Lender, Lender’s first
        priority lien and security interest in such Collateral, and agrees to waive
        any
        and all claims such lessor, consignee or other Person may at any time have
        against such Collateral and agrees to permit Lender access to, and the right
        to
        remain on the premises of such lessor, consignee or other Person, so as to
        exercise Lenders rights and remedies and otherwise deal with such Collateral
        and
        in the case of any Person who at any time has custody, control or possession
        of
        any bills of lading or other documents of title, agrees to hold such bills
        of
        lading or other documents as bailee for Lender and to follow all instructions
        of
        Lender with respect thereto.

      

      1.16
        “Contract Manufacturing Customer” shall mean any Person for whom Borrower
        manufactures, processes, provides services, conducts operations or performs
        work, on or with respect to Inventory owned by such Person, or sold by such
        Person to Borrower with the understanding that such Person will repurchase
        such
        Inventory from Borrower.

      

      1.17
        “Currency Reserves” shall mean, as of any date of determination, such amounts as
        Lender may from time to time establish and revise in good faith reducing
        the
        amount of Revolving Loans and Letter of Credit Accommodations which would
        otherwise be available to Borrowers under the lending formula(s) provided
        for
        herein: (a) to reflect events, conditions, contingencies or risks which,
        as
        determined by Lender in good faith, do or may affect the exchange rate between
        the Reference Currency and British Pounds Sterling, Euros or any other currency
        in which any Borrower does business, (b) to reflect Lender’s good faith belief
        that any exchange controls may be imposed which would affect the payment
        of any
        of the Obligations (c) to reflect any devaluation of the British Pound Sterling,
        the Euro or any other currency in which a Borrower does business or other
        fluctuation in exchange rates of any such currency with respect to the Reference
        Currency or (d) in respect of any state of facts which Lender determines
        in good
        faith or may, affect Borrowers’ ability to repay the Obligations in the
        Reference Currency.

      

      
        
          
          

        

        
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      1.18
        “Debt” shall include, as to any Person, at any time (without duplication) (a)
        any liability, whether or not contingent, of such Person in respect of borrowed
        money, (b) all obligations of such Person evidenced by bonds, notes, debentures,
        or other similar instruments, (c) all obligations of such Person to pay the
        deferred purchase price of property or services, except (i) trade accounts
        payable not unpaid more than one hundred twenty (120)days past the invoice
        date
        (ii) other accounts payable and current accrued expenses payable of such
        Person
        arising in the ordinary course of business which are not past due by more
        than
        ninety (90) days, (d) all obligations of such Person under a Capital Lease,
        (e)
        all indebtedness or other obligations of others guaranteed by such Person,
        (f)
        all obligations secured by a lien or security interest existing on property
        owned by such Person, whether or not the obligations secured thereby have
        been
        assumed by such Person or are non recourse to the credit of such Person,
        (g) all
        reimbursement obligations of such Person (whether contingent or otherwise)
        in
        respect of letters of credit, bankers acceptances, surety or other bonds
        or
        similar instruments and (h) all obligations of such Person with respect to
        redeemable stock or repurchase or redemption obligations with respect to
        any
        Capital Stock or other equity securities issued by such Person.

      

      1.19
        “Dilution” shall mean, for any period, the ratio of (a) the aggregate amount of
        reductions in Accounts other than as a result of payments in cash, for such
        period to (b) the aggregate amount of total sales, for such period.

      

      1.20
“Due
        Date” shall mean March 31, 2008.

      

      1.21
        “EBITDA” shall mean, with respect to any Person, for the period in
        question,

      the
        sum
        of (a) Net Income After Tax of such Person during such period plus
        (b) to
        the extent deducted in determining Net Income After Tax, the sum of (i) interest
        expense during such period, plus
        (ii) all
        provisions for any Federal, Commonwealth, state, local, United Kingdom, and/or
        foreign income taxes made by such Person during such period plus
        (iii)
        all depreciation and amortization expenses of Person during such period all
        determined on a consolidated basis for such Person and its Subsidiaries,
        if
        any.

      

      1.22
        "Eligible Accounts" shall mean Accounts created by a Borrower which are and
        continue to be acceptable to Lender based on the criteria set forth below.
        In
        general, Accounts shall be Eligible Accounts if:

      

      (a) such
        Accounts arise from the actual and bona fide
        sale and
        delivery by a Borrower or rendition of services by a Borrower in the ordinary
        course of its business which transactions are completed in accordance with
        the
        terms and provisions contained in any documents related thereto;

       

      (b) such
        Accounts are not unpaid (i) more than one hundred twenty (120) days after
        the
        date of the original invoice for them and (ii) more than sixty (60) days
        past
        the due date thereof(but never more than one hundred twenty (120) days past
        the
        original invoice date);

      

      
        
          
          

        

        
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      (c) such
        Accounts comply with the terms and conditions contained in Section 7.2(c)
        of
        this Agreement;

       

      (d) such
        Accounts do not arise from sales on consignment, guaranteed sale, sale and
        return, sale on approval, or other terms under which payment by the account
        debtor may be conditional or contingent;

       

      (e)
        the
        chief executive office of the account debtor with respect to such Accounts
        is
        located in the United States of America, the Commonwealth of Puerto Rico,
        the
        United Kingdom or at Lender’s option: if (i) the account debtor has delivered to
        a Borrower an irrevocable letter of credit issued or confirmed by a bank
        satisfactory to Lender and payable only in the United States of America and
        in
        U.S. dollars sufficient to cover such Account in form and substance satisfactory
        to Lender and if required by Lender the original of such letter of credit
        has
        been delivered to Lender or Lender’s agent and the issuer thereof notified of
        the assignment of the proceeds of such letter of credit to Lender, or (ii)
        such
        account is subject to credit insurance payable to Lender issued by an insurer
        and on terms and in an amount acceptable to Lender or (iii) such Accounts
        are
        otherwise acceptable in all respects to Lender (subject to such lending formula
        with respect thereto as Lender may determine);

       

      (f)
        such
        Accounts do not consist of progress billings, bill and hold invoices or
        retainage invoices, except as to progress billings and bill and hold invoices,
        if Lender shall have received an agreement in writing from the account debtor
        in
        form and substance satisfactory to Lender confirming the unconditional
        obligation of the account debtor, with respect to progress billings, to pay
        such
        progress billings and, with respect to bill and hold invoices, to take the
        goods
        related thereto and pay such invoice;

       

      (g) the
        account debtor with respect to such Accounts has not asserted a counterclaim,
        defense or dispute and does not have, and does not engage in transactions
        which
        may give rise to, any right of setoff against such Accounts (but the portion
        of
        the Accounts of such account debtor in excess of the amount at any time and
        from
        time to time owed by Borrower to such account debtor or claimed owed by such
        account debtor may be deemed Eligible Accounts);

       

      (h) there
        are
        no facts, events or occurrences which would impair the validity, enforceability
        or collect ability of such Accounts or reduce the amount payable or delay
        payment thereunder;

       

      (i) such
        Accounts are subject to the first priority, valid and perfected security
        interest of Lender and any goods giving rise thereto are not, and were not
        at
        the time of the sale thereof, subject to any liens except those permitted
        in
        this Agreement;

       

      (j) neither
        the account debtor nor any officer or employee of the account debtor with
        respect to such Accounts is an officer, employee or agent of or Affiliated
        with
        any Borrower directly or indirectly by virtue of family membership, ownership,
        control, management or otherwise;

       

      (k) the
        account debtors with respect to such Accounts are not any foreign government,
        the United States of America, any State, political subdivision, department,
        agency or instrumentality thereof, unless, if the account debtor is the United
        States of America, any State, political subdivision, department, agency or
        instrumentality thereof, upon Lender's request, the Federal Assignment of
        Claims
        Act of 1940, as amended or any similar State or local law, if applicable,
        has
        been complied with in a manner satisfactory to Lender; 

       

      
        
          
          

        

        
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      (l) there
        are
        no proceedings or actions which are threatened or pending against the account
        debtors with respect to such Accounts which might result in any material
        adverse
        change in any such account debtor's financial condition;

       

      (m)
        such
        Accounts of a single account debtor or its affiliates do not constitute more
        than fifty percent (50%) of all otherwise Eligible Accounts (but the portion
        of
        the Accounts not in excess of such percentage may be deemed Eligible
        Accounts);

       

      (n)
        such
        Accounts are not owed by an account debtor who has Accounts unpaid more than
        one
        hundred twenty (120) days after the date of the original invoice for them
        which
        constitute more than fifty percent (50%) percent of the total Accounts of
        such
        account debtor;

       

      (o) such
        Accounts are owed by account debtors whose total indebtedness to Borrowers
        does
        not exceed the credit limit with respect to such account debtors as determined
        by Lender from time to time (but the portion of the Accounts not in excess
        of
        such credit limit may be deemed Eligible Accounts); and

       

      (p) such
        Accounts are owed by account debtors deemed creditworthy at all times by
        Lender,
        as determined by Lender. 

      General
        criteria for Eligible Accounts may be established and revised from time to
        time
        by Lender in good faith. Any Accounts which are not Eligible Accounts shall
        nevertheless be part of the Collateral.

      

      1.23
        "Eligible Inventory" shall mean Inventory consisting of finished goods held
        for
        resale in the ordinary course of the business of Borrower and raw materials
        for
        such finished goods which are acceptable to Lender based on the criteria
        set
        forth below. In general, Eligible Inventory shall not include (a)
        work-in-process, except, in Lender’s discretion, bulk finished solid drugs
        listed by Borrower as work in process, immediately prior to bottling;
        (b)
        components which are not part of finished goods; (c)
        spare
        parts for equipment; (d)
        packaging and shipping materials; (e)
        supplies used or consumed in Borrowers business; (f)
        Inventory at premises other than those owned and controlled by Borrowers,
        except
        if Lender shall have received an agreement in writing from the person in
        possession of such Inventory and/or the owner or operator of such premises
        in
        form and substance satisfactory to Lender acknowledging Lender's first priority
        security interest in the Inventory, waiving security interests and claims
        by
        such person against the Inventory and permitting Lender access to, and the
        right
        to remain on, the premises so as to exercise Lender's rights and remedies
        and
        otherwise deal with the Collateral; (g)
        Inventory subject to a security interest or lien in favor of any person other
        than Lender except those permitted in this Agreement; (h)
        bill
        and hold goods; (i)
        unserviceable, obsolete or slow moving Inventory; (j)
        Inventory which is not subject to the first priority, valid and perfected
        security interest of Lender; (k)
        returned, damaged and/or defective Inventory; and (l)
        Inventory purchased or sold on consignment. General criteria for Eligible
        Inventory may be established and revised from time to time by Lender in good
        faith. Any Inventory which is not Eligible Inventory shall nevertheless be
        part
        of the Collateral.

      

      
        
          
          

        

        
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      1.24
        "Environmental Laws" shall mean all foreign(including United Kingdom), Federal,
        State and local laws (including common law), legislation, rules, codes,
        licenses, permits (including any conditions imposed therein), authorizations,
        judicial or administrative decisions, injunctions or agreements between any
        Borrower and any governmental authority, (a) relating to pollution and the
        protection, preservation or restoration of the environment (including air,
        water
        vapor, surface water, ground water, drinking water, drinking water supply,
        surface land, subsurface land, plant and animal life or any other natural
        resource), or to human health or safety, (b) relating to the exposure to,
        or the
        use, storage, recycling, treatment, generation, manufacture, processing,
        distribution, transportation, handling, labeling, production, release or
        disposal, or threatened release, of Hazardous Materials, or (c) relating
        to all
        laws with regard to record keeping, notification, disclosure and reporting
        requirements respecting Hazardous Materials. The term "Environmental Laws"
        includes (i) the Federal Comprehensive Environmental Response, Compensation
        and
        Liability Act of 1980, the Federal Superfund Amendments and Reauthorization
        Act,
        the Federal Water Pollution Control Act of 1972, the Federal Clean Water
        Act,
        the Federal Clean Air Act, the Federal Resource Conservation and Recovery
        Act of
        1976 (including the Hazardous and Solid Waste Amendments thereto), the Federal
        Solid Waste Disposal and the Federal Toxic Substances Control Act, the Federal
        Insecticide, Fungicide and Rodenticide Act, and the Federal Safe Drinking
        Water
        Act of 1974, (ii) applicable state counterparts to such laws, (iii) any common
        law or equitable doctrine that may impose liability or obligations for injuries
        or damages due to, or threatened as a result of, the presence of or exposure
        to
        any Hazardous Materials, and (iv) means
        all
        applicable United Kingdom laws and regulations in force at any time relating
        to
        Environmental Matters or the Environment (for purposes of determining applicable
        United Kingdom environmental laws: (A) Environment means
        ecological systems, living organisms (including human beings) and all or
        any of
        the following media (whether alone or in combination): air (including air
        within
        buildings or other structures and whether above or below ground); land
        (including buildings and any other structures or erections in, on or under
        it or
        any soil and anything below the surface of the land); land covered with water;
        and water (including water under or within land or in pipe or sewerage systems
        and sea, ground and surface water); (B) Environmental Matters means all or
        any
        of: waste (including packaging waste), contaminated land, discharges to land,
        ground, surface and coastal waters and sewers, the abstraction of water,
        the
        extraction of natural resources, emissions to air, noise, vibration and light,
        dangerous materials, common law, including nuisance, trespass and negligence,
        statutory nuisance, radiation, radioactive substances and material,; and
        the
        conservation or protection of species, habitats, biodiversity, flora and
        fauna.

       

      
        
          
          

        

        
          -10-

          
            

          

        

      

      1.25
         “Equipment” shall mean all of each Borrower’s now owned and hereafter
        acquired equipment, wherever located, including machinery, data processing
        and
        computer equipment, computers and computer hardware and software (whether
        owned
        or licensed and including embedded software), vehicles, tools, furniture,
        fixtures, racks, shelves, material handling equipment, all attachments,
        accessions and property now or hereafter affixed thereto or used in connection
        therewith, and substitutions and replacements thereof, wherever
        located.

       

      1.26
        "Event of Default" shall mean the occurrence or existence of any event or
        condition described in Section 10.1 hereof.

      

      1.27
        “Excess Availability” shall mean the amount, as determined by Lender, calculated
        at any time, equal to: (a) the lesser of: (i) the amount of the Loans available
        to Borrowers as of such time based on the applicable lending formulas and
        subject to the sublimits and Availability Reserves and Currency Reserves
        from
        time to time established by Lender hereunder, and (ii) the Maximum Credit
        minus
        (b) the
        sum of: (i) the amount of all then outstanding and unpaid Obligations plus
        (ii)
        the aggregate amount of all then outstanding and unpaid trade payables and
        accrued expenses of Borrowers which are more than sixty (60) days past due
        as of
        such time, plus (iii) the amount of checks issued by Borrowers to pay trade
        payables, but not yet sent and the book overdraft of Borrowers.

       

      1.28
        “Excess Cash Flow” shall mean with respect to any Person for any period the
        difference between (a) the sum of (i) the Net Income After Tax , plus
        (ii)
        depreciation, plus
        (iii)
        amortization, for such Person for such period, plus
        (iv) any
        non cash charges included in the calculation of Net Income After Tax, of
        such
        Person for such period minus
        (b) the
        sum of (i) regularly scheduled principal payments on Debt(including without
        limitation, the principal portion of payments in respect of capitalized lease
        obligations), plus
        (ii)
        other capital expenditures in excess of the amount of financing therefore
        which
        financing is permitted under this Agreement, plus
        (iii)
        any non cash gains included in the calculation of Net Income After Tax, of
        such
        Person for such period, all determined on a consolidated basis for such Person
        and its Subsidiaries, if any .

      

      1.29
        “Financing Agreements” shall mean, collectively, this Agreement and all notes,
        guarantees, security agreement documents and instruments now or at any time
        hereafter executed and/or delivered by a Borrower or any Obligor in connection
        with this Agreement, as the same now exist or may hereafter be amended,
        modified, supplemented, extended, renewed, restated or replaced.

      

      1.30
        “Foreign Accounts” shall mean Accounts, the chief executive office of the
        account debtor with respect to such Accounts is not located in the United
        States
        of America or the Commonwealth of Puerto Rico or the United
        Kingdom.

      

      
        
          
          

        

        
          -11-

          
            

          

        

      

      1.31
        "Hazardous Materials" shall mean any hazardous, toxic or dangerous substances,
        materials and wastes, including hydrocarbons (including naturally occurring
        or
        man-made petroleum and hydrocarbons), flammable explosives, asbestos, urea
        formaldehyde insulation, radioactive materials, biological substances,
        polychlorinated biphenyls, pesticides, herbicides and any other kind and/or
        type
        of pollutants or contaminants (including materials which include hazardous
        constituents), sewage, sludge, industrial slag, solvents and/or any other
        similar substances, materials, or wastes and including any other substances,
        materials or wastes that are or become regulated under any Environmental
        Law
        (including any that are or become classified as hazardous or toxic under
        any
        Environmental Law).

      

      1.32
        “Income Before Taxes” with respect to any period of Borrowers shall mean the
        amount shown on the line item denominated “Income before provision (benefit) for
        income taxes”, shown on Borrower’s financial statements for such period,
        prepared in accordance with GAAP, i.e., the consolidated pre tax net income
        of
        Borrowers for such period.

      

      1.33
        “Information Certificate” shall mean the Information Certificate of Borrowers,
        Exhibit A to this Agreement, containing material information with respect
        to
        Borrowers and their respective business and assets, provided by or on behalf
        of
        Borrower to Lender in connection with the preparation of this Agreement and
        the
        other Financing Agreements and the financing arrangements provided for
        therein.

      

      1.34
        “Intellectual Property” shall mean as to Borrowers such now owned and hereafter
        arising or acquired patents, patent rights, patent applications, copyrights,
        works which are the subject matter of copyrights, copyright registrations,
        trademarks, trade names, trade styles, trademark and service mark applications,
        and licenses and rights to use any of the foregoing; all extensions, renewals,
        reissues, divisions, continuations, and continuations in part of any of the
        foregoing; all rights to sue for past, present and future infringement of
        any of
        the foregoing; inventions, trade secrets, formulae, processes, compounds,
        drawings, designs, blueprints, surveys, reports, manuals, and operating
        standards; goodwill (including any goodwill associated with any trademark
        or the
        license of any trademark); customer and other lists in whatever form maintained;
        trade secret rights, copyright rights, rights in works of authorship, domain
        names and domain name registration; software and contract rights relating
        to
        computer software programs, in whatever form created or maintained.

      

      1.35 “Inventory”
        shall mean all of Borrowers now owned and hereafter existing or acquired
        raw
        materials, work in process, finished goods and all other inventory of whatsoever
        kind or nature, wherever located.

       

      1.36 “Letter
        of Credit Accommodations” shall mean the letters of credit, merchandise purchase
        or other guaranties which are from time to time either (a) issued or opened
        by
        Lender for the account of Borrower or any Obligor or (b) with respect to
        which
        Lender has agreed to indemnify the issuer or guaranteed to the issuer the
        performance by Borrower of its obligations to such issuer.

      

      
        
          
          

        

        
          -12-

          
            

          

        

      

      1.37
        “Licenses” shall mean all MHRA licenses, permits and authorizations of a
        Borrower and all Intellectual Property relating thereto or the products which
        may be sold thereunder, including those MHRA licenses, permits and
        authorizations described on Schedule 1.37 hereto and that Intellectual Property
        relating thereto or the products which may be sold thereunder described on
        Schedule 1.37 hereto, as the same may be amended, supplemented or
        modified.

      

      1.38
        “Loans” shall mean the Revolving Loans and the Term Loans.

      

       1.39
        “Manufacturing Contracts” shall mean all present and future contracts,
        agreements and other arrangements, pursuant to which a Borrower manufactures
        Inventory, goods or products for, or render sources to, a third party, including
        those described on schedule 1.39 hereto, as the same may be amended,
        supplemented or modified.

      

      1.40
        “Material Adverse Effect” shall mean a material adverse effect on (a) the
        financial condition, business, performance or operation of a Borrower, or
        (b)
        the legality, validity or enforceability of this Agreement or any of the
        other
        Financing Agreements; (c) the legality, validity, enforceability, perfection
        or
        priority of the security interests and liens of Lender upon the Collateral
        or
        any other property which is security for the Obligations; (d) the Collateral
        of
        Borrower or the value of the Collateral; (e) the ability of a Borrower to
        repay
        the Obligations or of a Borrower to perform its obligations under this Agreement
        or any of the other Financing Agreements; or (f) the ability of Lender to
        enforce the Obligations or realize upon the Collateral or otherwise with
        respect
        to the rights and remedies of Lender under this Agreement or any of the other
        Financing Agreements.

      

      
        
          1.41 
            “Material
            Contract” shall mean (a) any contract or other agreement (other
            than the Financing Agreements), written or oral, of Borrowers involving
            monetary
            liability of or to any Person in an amount in excess of $1,000,000 in
            any fiscal
            year and (b) any other contract or other agreement (other than the Financing
            Agreements), whether written or oral, to which a Borrower is a party
            as to which
            the breach, nonperformance, cancellation or failure to renew by any party
            thereto would have a material adverse effect on the business, assets,
            condition
            (financial or otherwise) or results of operations or prospects of Borrower
            or
            the validity or enforceability of this Agreement, any of the other Financing
            Agreements, or any of the rights and remedies of Lender hereunder or
            thereunder.

        

      

      

      
        	 	
                1.42

              	
                “Maximum
                  Credit” shall mean the amount of
                  $36,500,000.

              

      

      

      
        
          1.43  
            “Net
            Amount of Eligible Accounts” shall mean the gross amount of Eligible
            Accounts less (a) sales, excise or similar taxes included in the amount
            thereof
            and (b) returns, discounts, claims, credits and allowances of any nature
            at any
            time issued, owing, granted, outstanding, available or claimed with respect
            thereto.

           

          
            
              
              

            

            
              -13-

              
                

              

            

          

          1.44 “Net
            Income After Tax” shall mean, with respect to any Person for any period, the
            aggregate of the net income (loss) of such Person and its Subsidiaries,
            if any
            on a consolidated basis, for such period (excluding to the extent included
            therein any extraordinary or non-recurring gains and extraordinary non-cash
            charges to property, plant and equipment or goodwill) after deducting
            all
            charges (including income taxes) which should be deducted before arriving
            at the
            net income (loss) for such period, all as determined in accordance with
            GAAP;
provided that,
            (a) the
            net income of any Person that is not a wholly-owned Subsidiary or that
            is
            accounted for by the equity method of accounting shall be included only
            to the
            extent of the amount of dividends or distributions paid or payable to
            such
            Person or a wholly-owned Subsidiary of such Person; and (b) the effect
            of any
            change in accounting principles adopted by such Person or its Subsidiaries
            after
            the date hereof shall be excluded. For the purposes of this definition,
            net
            income excludes any gain and non-cash loss (but not any cash loss) realized
            upon
            the sale or other disposition of any assets that are not sold in the
            ordinary
            course of business (including, without limitation, dispositions pursuant
            to sale
            and leaseback transactions) or of any Capital Stock of such Person or
            a
            Subsidiary of such Person and any net income realized as a result of
            changes in
            accounting principles or the application thereof to such Person.

           

          1.45 
            "Obligations" shall mean any and all Revolving Loans, Term Loans, Letter
            of
            Credit Accommodations, and all other obligations, liabilities and indebtedness
            of every kind, nature and description owing by Borrowers to Lender and/or
            its
            affiliates, including principal, interest, charges, fees, costs and expenses,
            however evidenced, whether as principal, surety, endorser, guarantor
            or
            otherwise, whether arising under this Agreement or otherwise, whether
            now
            existing or hereafter arising, whether arising before, during or after
            the
            initial or any renewal term of this Agreement or after the commencement
            of any
            case with respect to Borrower under the Bankruptcy Code or any similar
            statute
            (including the payment of interest and other amounts which would accrue
            and
            become due but for the commencement of such case, whether or not such
            amounts
            are allowed or allowable in whole or in part in such case), whether direct
            or
            indirect, absolute or contingent, joint or several, due or not due, primary
            or
            secondary, liquidated or unliquidated, secured or unsecured, and however
            acquired by Lender.

        

      

      

      1.46
        “Obligor” shall mean any guarantor, endorser, acceptor, surety or other person
        liable on or with respect to the Obligations or who is the owner of any property
        which is security for the Obligations, other than Borrower.

      

      1.47
        “Parent Financing Agreements” shall mean the Loan And Security Agreement”
        between Inyx and Inyx USA, Ltd. and Lender, dated as of March 31, 2005, as
        amended and the other “Financing Agreements” as defined, and referred to,
        therein, as any of same have been and may hereafter be amended, from time
        to
        time.

      

      
        
          
          

        

        
          -14-

          
            

          

        

      

      1.48 "Payment
        Account" shall have the meaning set forth in Section 6.3 hereof.

      

      1.49
        “Permitted Liens” shall mean those liens, encumbrances and security interests
        (i) allowed by Section 9.8(b) through (f) hereof or (ii) as may otherwise
        be
        consented to by Lender, in writing.

      

      1.50
        “Person” or “person” shall mean any individual, sole proprietorship,
        partnership, corporation (including any corporation which elects Subchapter
        S
        status under the Internal Revenue Code of 1986, as amended or N corporation
        status under the Puerto Rico Internal Revenue Code of 1994, as amended),
        limited
        liability company, limited liability partnership, business trust, unincorporated
        association, joint stock corporation, trust, joint venture or other entity
        or
        any government or any agency or instrumentality or political subdivision
        thereof.

       

      1.51 “Prime
        Rate” shall mean the rate from time to time advised by Westernbank Puerto Rico,
        or its successors, to its clients as its prime rate, whether or not such
        advised
        rate is the best rate available at such bank. 

      

      1.52
        “Purchase Agreements” shall mean individually and collectively the “Agreement
        for the Sale and Purchase of the entire Issued Share Capital of Celltech
        Manufacturing Services Limited”, dated August 25, 2005 between Seller and Inyx
        EU and Inyx , together with bills of sale, deeds, assignment and assumption
        agreements and such other instruments of transfer as are referred to therein
        and
        all side letters with respect thereto, and all agreements, documents and
        instruments executed and/or delivered in connection therewith; provided that,
        the
        term “Purchase Agreements” as used herein shall not include any of the
“Financing Agreements” as such term is defined herein.

      

      1.53 “Purchased
        Stock” shall mean all of the issued and outstanding shares of Capital Stock of
        CMSL, to be acquired by Inyx EU pursuant to the Purchase
        Agreements.

      

      1.54
“PUT
        Agreement” shall mean an agreement entered into between Lender and a Contract
        Manufacturing Customer, in form and substance satisfactory to Lender, pursuant
        to which the Contract Manufacturing Customer, among other things, agrees
        with
        Lender to:

       

      (a)
        Purchase, repurchase, take delivery of, and make payment for, at a price
        acceptable to Lender, Inventory purchased by a Borrower from the Contract
        Manufacturing Customer;

       

      (b)
        Purchase, at a price acceptable to Lender, services provided or work performed
        by Borrower, for such Contract Manufacturing Customer;

       

      (c)
        Purchase, repurchase, take delivery of, and make payment for, at a price
        acceptable to Lender, the outstanding amount of Borrower’s purchase orders for
        inventory or products for such Contract Manufacturing Customer and all work
        in
        process and finished goods manufactured or processed or worked on by a Borrower
        for such Contract Manufacturing Customer; and

       

      (d)
        Pay
        to Lender all invoices rendered by Borrower for goods and services, in
        accordance with the invoice term, without any offset, set-off, defense or
        counterclaim whatsoever, for any reason.

      

      
        
          
          

        

        
          -15-

          
            

          

        

      

      1.55
        “Real Estate Security” shall include the mortgage liens on the Real Property
and
        interests of Borrower described in Schedule 1.55 hereto (the Mortgages),
        (b) the
        mortgage notes described on Schedule 1.55 hereto pledged or to be pledged
        to
        Lender and (c) liens and security interests in favor of Lender on all other
        Real
        Property of Borrowers, all on the terms and subject to the provisions contained
        herein and in the other applicable Financing Agreements.

      

      1.56 “Real
        Property” shall mean all now owned and hereafter acquired real property of any
        Borrower, including the Ashton Real Property together with all buildings,
        structures and other improvements located thereon and all licenses, easements
        and appurtenances relating thereto, whenever located.

      

      1.57 “Receivables”
        shall mean all of the following now owned or hereafter arising
        or acquired property of Borrower: (a) all Accounts; (b) all interest, fees,
        late
        charges, penalties, collection fees and other amounts due or to become due
        or
        otherwise payable in connection with any Account; (c) all payment intangibles
        of
        Borrower; (d) all letters of credit, indemnities, guarantees, security or
        other
        deposits and proceeds thereof issued payable to Borrower or otherwise in
        favor
        of or delivered to Borrower in connection with any Account; or (e) all other
        accounts, contract rights, chattel paper, instruments, notes, general
        intangibles and other forms of obligations owing to Borrower, whether from
        the
        sale and lease of goods or other property, licensing of any property (including
        Intellectual Property or other general intangibles), rendition of services
        or
        from loans or advances by Borrower or to or for the benefit of any third
        person,
        including loans or advances to any Affiliates or Subsidiaries of Borrower
        or
        otherwise associated with any Accounts, Inventory or general intangibles
        of
        Borrower (including without limitation, chooses in action, causes of action,
        tax
        refunds, tax refund claims, any funds which may become payable to Borrower
        in
        connection with the termination of any employee benefit plan and any other
        amounts payable to Borrower from any employee benefit plan) and claims against
        carriers and shippers, rights to indemnification, business interruption
        insurance and proceeds thereof, casualty or any similar types of insurance
        and
        any process thereof and proceeds of insurance covering the lives of employees
        on
        which Borrower is a beneficiary.

      

      1.58 “Records”
        shall mean all of Borrower’s present and future books of account of every kind
        or nature, purchase and sale agreements, invoices, ledger cards, bills of
        lading
        and other shipping evidence, statements, correspondence, memoranda, credit
        files
        and other data relating to the Collateral or any account debtor, together
        with
        the tapes, disks, diskettes, electronic or virtual files and other data and
        software storage media and devices, file cabinets or containers in or on
        which
        the foregoing are stored (including any rights of a Borrower with respect
        to the
        foregoing maintained with or by any other person).

      

      
        
          
          

        

        
          -16-

          
            

          

        

        
          
          

        

      

      1.59
        “Reference Currency” shall mean United States Dollars.

      

      1.60
        “Restricted Junior Payment” shall mean (a) any dividend or other distribution,
direct
        or
        indirect, on account of any shares of any class of Capital Stock of a Borrower
        now or hereafter outstanding or any payment on account of a return of capital
        (or the setting aside or otherwise depositing or investing of any sums for
        such
        purpose) or (b) any redemption, retirement, purchase, defeasance or other
        acquisition, direct of indirect, of any shares of any class of Capital Stock
        of
        any Borrower or any Affiliate of a Borrower now or hereafter outstanding
        (or the
        setting aside or otherwise depositing or investing of any sums for such purpose)
        or (c) any payment, direct or indirect, of any interest, principal of or
        premium, if any, on any redemption, retirement, purchase or other acquisition,
        direct or indirect, of any Subordinated Debt (or the setting aside or otherwise
        depositing or investing of any sums for such purpose or (d) any payment of
        money
        or transfer of any interest in any asset to any Affiliate of Borrower, except
        as
        permitted by Section 9.11(a) hereof.

      

      1.61 "Revolving
        Loans" shall mean the loans now or hereafter made by Lender to or for the
        benefit of Borrower on a revolving basis (involving advances, repayments
        and
        readvances) as set forth in Section 2.1 hereof. 

      

      1.62
        "Seller" shall mean UCB Pharma Limited a company registered in England and
        its
        successors and assigns.

      

      1.63
        “Solvent” shall mean, at any time with respect to any Person, that at such time
        such Person (a) is able to pay its debts as they mature and has (and has
        a
        reasonable basis to believe it will continue to have) sufficient capital
        (and
        not unreasonably small capital) to carry on its business consistent with
        its
        practices as of the date thereof, and (b) the assets and properties of such
        Person at a fair valuation (and including as assets for this purpose at a
        fair
        valuation all rights of subrogation, contribution or indemnification arising
        pursuant to any guarantees given by such Person) are greater than the
        indebtedness of such Person, and including subordinated and contingent
        liabilities computed at the amount which, such person has a reasonable basis
        to
        believe, represents an amount which can reasonably be expected to become
        an
        actual or matured liability (and including as to contingent liabilities arising
        pursuant to any guarantee the face amount of such liability as reduced to
        reflect the probability of it becoming a matured liability).

      

      1.64 “Subordinated
        Debt” shall mean all liabilities, indebtedness and obligations of Borrower or
        any Obligor to any Person the payment of which is restricted by this Agreement
        or any of the other Financing Agreements.

      

      
        
          
          

        

        
          -17-

          
            

          

        

      

      1.65 “Subsidiary
        or Subsidiaries” shall mean, with respect to any Person, any corporation,
        association, limited liability company, limited liability partnership, or
        other
        limited or general partnership, trust, association or other business entity,
        of
        which an aggregate of at least a majority of the outstanding Capital Stock
        or
        other interests entitled to vote in the election of the Board of Directors
        of
        such corporation, managers, trustees or other controlling persons (whether
        or
        not the right so to vote exists or has been suspended by reason of the happening
        of a contingency), or an equivalent controlling interest therein, of such
        Person
        is, at the time directly or indirectly, owned by such Person and/or one or
        more
        subsidiaries of such Person.

      

      1.66 “Suppressed
        Availability” shall mean the amount, as determined by Lender, calculated at any
        time, which Borrower shall otherwise be entitled to borrow under applicable
        lending formulas but which shall not be available to, and which shall be
        withheld from, Borrower.

      

      1.67
        “Tangible Net Worth” shall mean, as of the date of any determination thereof,
        the difference between (a) the amount of the capital stock accounts (net
        of
        treasury stock, at cost) of Borrower and its Subsidiaries as of such date
        plus
        (or
        minus in the case of a deficit) the surplus and retained earnings of Borrower
        and its Subsidiaries as of such date, plus
        indebtedness of such Borrower and its Subsidiaries which is subordinated
        in
        right of payment to the full and final payment of all of the Obligations
        on
        terms and conditions acceptable to Lender, plus
        the
        portion of the Term Loans maturing more than one(1) year from such date of
        determination, determined on a consolidated basis and in accordance with
        GAAP
minus
        (b) all
        Intellectual Property (including any amount for goodwill, however designated,
        representing the cost of acquisition of business and investments in excess
        of
        the book value thereof), unamortized debt discount and expense, unamortized
        deferred charges, deferred research and development costs, any write-up of
        asset
        value after the date of this Agreement, non-competition covenants, signing
        bonuses, prepaid expenses and other forms of prepaid assets, deferred taxes,
        loans, advances and/or other amounts due from shareholders, directors, officers,
        managers and/or employees, intercompany accounts, investments in and receivables
        due from affiliates, deposits for insurance, utilities and the like and any
        other assets treated as intangible assets under GAAP, as of such date, all
        determined on a consolidated basis for Borrower and its Subsidiaries and
        in
        accordance with GAAP.

      

      1.68
        “Term Loans” shall mean the term loans made by Lender to Inyx EU as provided for
        in Section 2.3 hereof and guaranteed by CMSL.

      

      
        
          1.69  
            “Uniform
            Commercial Code” or “UCC” shall include the Puerto Rico “Commercial
            Transactions Act” and “UCC” shall mean the Uniform Commercial Code.

        

      

      

      
        
          
          

        

        
          -18-

          
            

          

        

        
          
          

        

      

      1.70 "Value"
        shall mean, as determined by Lender in good faith, with respect to Inventory,
        (a) the lower of (i) cost computed on a first-in-first-out basis in accordance
        with GAAP or (ii) market value or (b) any other valuation method acceptable
        to,
        and approved in writing by, Lender, in its sole discretion . 

      

      1.71
        “Voluntary Prepayment” shall mean the prepayments in respect of the Term Loans
        described in Section 2.3(f) hereof.

      

      1.72
        “Voting Stock” or voting stock shall mean with respect to any Person, (a) one(1)
        or more classes of Capital Stock of such Person having general voting powers
        to
        elect at least a majority of the Board of Directors, managers, trustees or
        other
        persons performing similar functions, even if at the time any other class
        or
        classes of Capital Stock have, or might have, voting power by reason of the
        happening of any contingency or (b) any Capital Stock of such Person convertible
        or exchangeable without restriction at the option of the holder thereof into
        Capital Stock of such Person described in clause (a) of this definition.
        

       

      1.73 "Working
        Capital" shall mean as to any Person, at any time, in accordance with GAAP,
        on a
        consolidated basis for such Person and its Subsidiaries (if any), the amount
        equal to the difference between: (a) the aggregate net book value of all
        current
        assets of such Person and its subsidiaries (as determined in accordance with
        GAAP), calculating the book value of inventory for this purpose on a
        first-in-first-out basis and excluding prepaid expenses, and (b) all current
        liabilities of such Person and its Subsidiaries (as determined in accordance
        with GAAP), provided,
        that,
        as to
        Borrower, for purposes of Section 9.14, the liabilities of Borrower to Lender
        under this Agreement, shall not be considered current liabilities (whether
        or
        not classified as current liabilities in accordance with GAAP).

      

      Section
        2. Credit
        Facilities.

      

      2.1 Revolving
        Loans.

      

      (a) Subject
        to and upon the terms and conditions contained herein, Lender agrees to make
        Revolving Loans to CMSL from time to time in amounts requested by Borrower
        up to
        the amount equal to: 

      

      (i)
        Up to
        eighty five percent (85%) of the Net Amount of Eligible Accounts from the
        sale
        of pharmaceutical products and services, other than Foreign
        Accounts;

       

      plus

       

      (ii)
        Up
        to sixty percent (60%) of the Value of Eligible Inventory,

       

       less

       

      (iii)
        Any
        Availability Reserves,

       

       less

       

      (iv)
        Any
        Currency Reserves;

       

      
        
          
          

        

        
          -19-

          
            

          

        

      

      provided that,
        except
        in Lender’s discretion, the aggregate amount of Revolving Loans at any time
        outstanding pursuant to (x) Section 2.1(a)(i) and (ii) hereof shall in no
        event
        exceed Eleven Million Six Hundred Twenty Four Thousand Dollars ($11,700,000)
        and
        (y) Section 2.1(a)(ii) hereof shall in no event exceed Five Million Dollars
        ($5,000,000).

       

      (b)
        Lender may, in its discretion, from time to time, upon not less than five
        (5)
        days prior notice to Borrower, (i) reduce the lending formula with respect
        to
        Eligible Accounts and Eligible Inventory, to the extent that Lender determines
        in good faith that: (A) the Dilution with respect to the Accounts for any
        period
        has increased in any material respect or may be reasonably anticipated to
        increase in any material respect above historical levels, or (B) the general
        creditworthiness of account debtors has declined or (C) the Dilution as of
        the
        close of any month is greater than five percent (5%) for such month or (ii)
        reduce the lending formula(s) with respect to Eligible Inventory, to the
        extent
        that Lender determines that: (A) the number of days of the turnover of the
        Inventory for any period has changed in any material respect or (B) the
        liquidation value of the Eligible Inventory, or any category thereof, has
        decreased, or (C) the nature and quality of the Inventory has deteriorated.
        In
        determining whether to reduce the lending formula(s), Lender may consider
        events, conditions, contingencies or risks which are also considered in
        determining Eligible Accounts, Eligible Inventory or in establishing
        Availability Reserves or Currency Reserves. Lender anticipates that any
        reduction on account of a determination by Lender under Section 2.1(b)(i)(C)
        hereof will be at a rate which is not less than twice the percentage determined
        thereunder.

       

      (c)
        Except in Lender's discretion, the aggregate amount of the Loans and the
        Letter
        of Credit Accommodations outstanding at any time shall not exceed the Maximum
        Credit. In the event that the outstanding amount of any component of the
        Loans,
        or the aggregate amount of the outstanding Loans and Letter of Credit
        Accommodations exceed the amounts available under the lending formulas, the
        sublimits for the Maximum Amount of Revolving Loans, for Inventory or for
        Letter
        of Credit Accommodations set forth in Section 2.2(d) or the Maximum Credit,
        as
        applicable, such event shall not limit, waive or otherwise affect any rights
        of
        Lender in that circumstance or on any future occasions and Borrower shall,
        upon
        demand by Lender, which may be made at any time or from time to time,
        immediately repay to Lender the entire amount of any such excess(es) for
        which
        payment is demanded.

       

      (d)
        Lender may treat the then undrawn amounts of outstanding Letter of Credit
        Accommodations for the purpose of purchasing Eligible Inventory as Revolving
        Loans to the extent Lender is in effect basing the issuance of the Letter
        of
        Credit Accommodations on the Value of the Eligible Inventory being purchased
        with such Letter of Credit Accommodations. In determining the actual amounts
        of
        such Letter of Credit Accommodations to be so treated for purposes of the
        sublimit, the outstanding Revolving Loans and Availability Reserves and Currency
        Reserves shall be attributed first to any components of the lending formulas
        in
        Section 2.1(a) that are not subject to such sublimit, before being
        attributed to the components of the lending formulas subject to such
        sublimit.

       

      
        
          
          

        

        
          -20-

          
            

          

        

      

      (e)
        Subject
        to the terms and conditions contained herein, Lender may, in its discretion
        make
        Revolving Loans to CMSL from time to time, in amounts requested by Borrower,
        up
        to a percentage of Foreign Accounts, which meet the criteria of Section
        1.20(e)(i) or (ii) hereof and are otherwise Eligible Accounts, determined
        by
        Lender on an account by account basis from time to time and as may be revised
        by
        Lender from time to time. The amount of any such Revolving Loans shall be
        included within the sublimits for Revolving Loans specified in Section 2.1(a)
        hereof. 

       

      (f)
        Lender may, in its discretion, increase the advance rate specified in Section
        2.1(a)(ii) hereof from sixty percent (60%) to eighty five percent (85%) of
        the
        Value of Eligible Inventory, which is:

       

      (i)
        Finished goods Inventory, manufactured for a Contract Manufacturing Customer,
        and

       

      (ii)
        The
        subject of a PUT Agreement, satisfactory to Lender in all respects;

       

      provided that;
        Lender
        shall establish a separate sublimit for Loans with respect to this Inventory,
        included within the $5,000,000 sublimit for Eligible Inventory, specified
        in
        Section 2.1(a) hereof .

      

      2.2   
        Letter
        Of Credit Accommodations.

      

      (a)
        Subject to and upon the terms and conditions contained herein, at the request
        of
        Borrower, Lender agrees to provide or arrange for Letter of Credit
        Accommodations for the account of CMSL containing terms and conditions
        acceptable to Lender and the issuer thereof. Any payments made by Lender
        to any
        issuer thereof and/or related parties in connection with the Letter of Credit
        Accommodations shall constitute additional Revolving Loans to CMSL pursuant
        to
        this Section 2.2.

       

      (b)
        In
        addition to any charges, fees or expenses charged by any bank or issuer in
        connection with the Letter of Credit Accommodations Borrower shall pay to
        Lender
        a letter of credit fee at a rate equal to one percent (1.00%) per annum on
        the
        daily outstanding balance of the Letter of Credit Accommodations for the
        immediately preceding month (or part thereof), payable in arrears as of the
        first day of each succeeding month, except that Borrower shall pay to Lender
        such letter of credit fee, at Lender's option, without notice, at a rate
        equal
        to three percent (3.00%) per annum on such daily outstanding balance for:
        (i)
        the period from and after the date of termination or non-renewal hereof until
        Lender has received full and final payment of all Obligations (notwithstanding
        entry of a judgment against Borrower) and (ii) the period from and after
        the
        date of the occurrence of an Event of Default for so long as such Event of
        Default is continuing as determined by Lender. Such letter of credit fee
        shall
        be calculated on the basis of a three hundred sixty (360) day year and actual
        days elapsed and the obligation of Borrower to pay such fee shall survive
        the
        termination or non-renewal of this Agreement.

       

      (c)
        No
        Letter of Credit Accommodations shall be available unless on the date of
        the
        proposed issuance of any Letter of Credit Accommodations the Revolving Loans
        available to CMSL (subject to the Maximum Credit and any Availability Reserves
        and any Currency Resreves) are equal to or greater than: (i) if the proposed
        Letter of Credit Accommodation is for the purpose of purchasing Eligible
        Inventory, other than Inventory described in Section 2.1(f) hereof, the sum
        of
        (A) forty percent (40%) of the Value of such Eligible Inventory, plus (B)
        freight, taxes, duty and other amounts which Lender estimates must be paid
        in
        connection with such Inventory upon arrival and for delivery to one of
        Borrower's locations for Eligible Inventory within England and (ii) if the
        proposed Letter of Credit Accommodation is for any other purpose an amount
        equal
        to one hundred percent(100%) of the face amount thereof and all other
        commitments and obligations made or incurred by Lender with respect thereto.
        Effective on the issuance of each Letter of Credit Accommodation an Availability
        Reserve shall be established in the applicable amount set forth in Section
        2.2(c)(i) or Section 2.2(c)(ii).

       

      
        
          
          

        

        
          -21-

          
            

          

        

        
          
          

        

      

      (d)
        Except in Lender's discretion, the amount of all outstanding Letter of Credit
        Accommodations and all other commitments and obligations made or incurred
        by
        Lender in connection therewith shall not at any time exceed Two Million Five
        Hundred Thousand ($2,500,000) in the aggregate, included within the overall
        Revolving Loans. At any time an Event of Default exists or has occurred and
        is
        continuing, upon Lender's request, Borrower will either furnish cash collateral
        to secure the reimbursement obligations to the issuer in connection with
        any
        Letter of Credit Accommodations or furnish cash collateral to Lender for
        the
        Letter of Credit Accommodations and in either case, the Revolving Loans
        otherwise available to CMSL shall not be reduced as provided in Section 2.2(c)
        to the extent of such cash collateral.

       

      (e)
        Borrower shall indemnify and hold Lender harmless from and against any and
        all
        losses, claims, damages, liabilities, costs and expenses which Lender may
        suffer
        or incur in connection with any Letter of Credit Accommodations and any
        documents, drafts or acceptances relating thereto, including any losses,
        claims,
        damages, liabilities, costs and expenses due to any action taken by any issuer
        or correspondent or any other person with respect to any Letter of Credit
        Accommodation. Borrower assumes all risks with respect to the acts or omissions
        of the drawer under or beneficiary of, or any other person with respect to,
        any
        Letter of Credit Accommodation and for such purposes the drawer or beneficiary
        shall be deemed Borrower’s agent. Borrower assume all risks for, and agree to
        pay, all foreign, Federal, State and local taxes, duties and levies relating
        to
        any goods subject to any Letter of Credit Accommodations and any documents,
        drafts or acceptances thereunder. Borrower hereby releases and holds Lender
        harmless from and against any acts, waivers, errors, delays or omissions,
        whether caused by Borrower, by any issuer or correspondent or otherwise with
        respect to or relating to any Letter of Credit Accommodation. The provisions
        of
        this Section 2.2(e) shall survive the payment of Obligations and the termination
        or non-renewal of this Agreement.

       

      (f)
        Nothing contained herein shall be deemed or construed to grant Borrower any
        right or authority to pledge the credit of Lender in any manner. Lender shall
        have no liability of any kind with respect to any Letter of Credit Accommodation
        provided by an issuer other than Lender unless Lender has duly executed and
        delivered to such issuer the application or a guarantee or indemnification
        in
        writing with respect to such Letter of Credit Accommodation. Borrower shall
        be
        bound by any interpretation made in good faith by Lender, or any other issuer
        or
        correspondent under or in connection with any Letter of Credit Accommodation
        or
        any documents, drafts or acceptances thereunder, notwithstanding that such
        interpretation may be inconsistent with any instructions of Borrower. Lender
        shall have the sole and exclusive right and authority to, and Borrower shall
        not: (i) at any time an Event of Default exists or has occurred and
        is
        continuing, (A) approve or resolve any questions of non-compliance of documents,
        (B) give any instructions as to acceptance or rejection of any documents
        or
        goods or (C) execute any and all applications for steamship or airway
        guaranties, indemnities or delivery orders, and (ii) at all times,
        (A) grant any extensions of the maturity of, time of payment for,
        or time
        of presentation of, any drafts, acceptances, or documents, and (B) agree
        to any
        amendments, renewals, extensions, modifications, changes or cancellations
        of any
        of the terms or conditions of any of the applications, Letter of Credit
        Accommodations, or documents, drafts or acceptances thereunder or any letters
        of
        credit included in the Collateral. Lender may take such actions either in
        its
        own name or in Borrower’s names.

       

      
        
          
          

        

        
          -22-

          
            

          

        

        
          
          

        

      

      (g)
        Any
        rights, remedies, duties or obligations granted or undertaken by Borrower
        to any
        issuer or correspondent in any application for any Letter of Credit
        Accommodation, or any other agreement in favor of any issuer or correspondent
        relating to any Letter of Credit Accommodation, shall be deemed to have been
        granted or undertaken by Borrower to Lender. Any duties or obligations
        undertaken by Lender to any issuer or correspondent in any application for
        any
        Letter of Credit Accommodation, or any other agreement by Lender in favor
        of any
        issuer or correspondent relating to any Letter of Credit Accommodation, shall
        be
        deemed to have been undertaken by Borrower to Lender and to apply in all
        respects to Borrower.

      

      2.3  Term
        Loans.
        Lender
        is or will be making four (4) Term Loans to Inyx EU as follows:

       

      (a)
        (i)
        Lender intends to make a Term Loan to Inyx EU for the purpose of acquiring
        the
        Purchased Stock and to be used as provided in section 6.6 (a) and (c) hereof,
        in
        the original principal amount of the lesser of (A) $3,000,000 and (B) seventy
        five percent (75%) of the “Fair Market Value” of the Ashton Real Property. This
        Term Loan (“Term Loan A”) is and will be (A) evidenced by a Term Loan A
        Promissory Note in the original principal amount disbursed duly executed
        and
        delivered by Inyx EU to Lender concurrently with disbursement thereof, (B)
        repaid together with interest and other amounts, in accordance with this
        Agreement, the Term Loan A Promissory Note, and the other Financing Agreements,
        calculated on the basis of 180 consecutive monthly installments payable on
        the
        1st day of each month, commencing December 1, 2005, of which all installments
        except the last installment, shall each be in the principal amount of (1)
        the
        amount disbursed divided by (2) 180 and the last installment and final payment
        shall be the amount of the entire unpaid balance of such Term Loan and Term
        Loan
        A Promissory Note and due on the Due Date, together with interest and other
        amounts as provided herein and in the Term Loan A Promissory Note and (C)
        secured by all of the Collateral. All amounts drawn under Term Loan A and
        the
        Term Loan A Promissory Note shall be payable calculated on the basis of 180
        equal monthly payments of principal with a final payment of the then remaining
        principal balance, interest and other amounts, as provided herein and in
        the
        Term Loan A Promissory Note, on the Due Date. Inyx EU shall execute and deliver
        to Lender a Term Loan A Promissory Note at the time of disbursement of this
        Term
        Loan A in the principal amount of such disbursement. Interest only shall
        be
        payable monthly with respect to Term Loan A on September 1, 2005, October
        1,
        2005 and November 1, 2005.

      (ii)
        For
        purposes of this Section 2.3(a) the term “Fair Market Value” with respect to the
        Ashton Real Property means the fair value of such property, determined by
        appraisals acceptable to Lender.

      

      
        
          
          

        

        
          -23-

          
            

          

        

        
          
          

        

      

      (b)(i)
        Lender intends to make a Term Loan to Inyx EU for the purpose of acquiring
        the
        Purchased Stock and to be used as provided in Section 6.6 (a) and (c) hereof,
        in
        the original principal amount of the lesser of (A) $9,800,000 and (B) eighty
        percent (80%) of the Orderly Liquidation Value” of the CMSL Equipment. This Term
        Loan (“Term Loan B”) is and will be (A) evidenced by a Term Loan B Promissory
        Note in the original principal amount disbursed duly executed and delivered
        by
        Inyx EU to Lender concurrently with disbursement thereof, (B) repaid together
        with interest and other amounts, in accordance with this Agreement, the Term
        Loan B Promissory Note and the other Financing Agreements in consecutive
        monthly
        installments, payable on the 1st
        day of
        each month, commencing December 1, 2005, of which all installments except
        the
        last installment, shall each be in the principal amount of (1) the amount
        disbursed divided by (2) 60 and the last installment and final payment shall
        be
        the amount of the entire unpaid balance of such Term Loan and Term Loan B
        Promissory Note and due on the Due Date, together with interest and other
        amounts as provided herein and in the Term Loan B Promissory Note and (C)
        secured by all of the Collateral. Term Loan B shall in no event exceed
        $9,800,000, during the term of this Agreement. All amounts drawn under Term
        Loan
        B and the Term Loan B Promissory Note shall be payable calculated on the
        basis
        of 60 equal monthly payments of principal with a final payment of the then
        remaining principal balance, interest and other amounts, as provided herein
        and
        in the Term Loan B Promissory Note, on the Due Date. Inyx EU shall execute
        and
        deliver to Lender a Term Loan B Promissory Note at the time of disbursement
        of
        this Term Loan B in the principal amount of such disbursement. Interest only
        shall be payable monthly with respect to Term Loan B on September 1, 2005,
        October 1, 2005 and November 1, 2005. 

       

      (ii)
        As
        used in this Section 2.3(b), “CMSL Equipment” means Equipment owned by CMSL (A)
        which is not fixtures, (B) which is not subject to a lien or security interest
        of any other Person, (C) which is not leased, (D) which is not worn-out or
        obsolete, (E) which is in good working order and (F) which is part of the
        assets
        of CMSL.

       

      (iii)
        For
        purposes of this Section 2.3(b) the term “Orderly Liquidation Value”, with
        respect to CMSL Equipment, means the value of such Equipment based on the
        estimated gross amount that such Equipment should realize if sold piecemeal
        on a
        negotiated basis with the seller being compelled to sell, given a reasonable
        period of time in which to find a purchaser, with the purchaser buying as
        is,
        where is, for cash, reduced by expenses, and with the purchaser assuming
        any
        costs to dismantle and remove, as determined by appraisals conducted at Inyx
        EU’s expense, by independent appraisers acceptable to Lender.

      

      
        
          
          

        

        
          -24-

          
            

          

        

      

      (c)
        (i)
        Lender
        intends to make a Term Loan to Inyx EU for the purpose of acquiring the
        Purchased Stock and to be used as provided in section 6.6 (a) and (c) hereof,
        in
        the original principal amount of the lesser of (i) $3,000,000 and (ii) fifty
        percent (50%) of the “Net Fair Market Value of the Eligible Licenses”. This Term
        Loan (“Term Loan C”) is and will be (A) evidenced by a Term Loan C Promissory
        Note in the original principal amount disbursed duly executed and delivered
        by
        Inyx EU to Lender concurrently with disbursement thereof, (B) repaid together
        with interest and other amounts, in accordance with this Agreement, the Term
        Loan C Promissory Note and the other Financing Agreements in consecutive
        monthly
        installments, payable on the 1st
        day of
        each month, commencing December 1, 2005, of which all installments except
        the
        last installment, shall each be in the principal amount of (1) the amount
        disbursed divided by (2) 60 and the last installment and final payment shall
        be
        the amount of the entire unpaid balance of such Term Loan and Term Loan C
        Promissory Note and due on the Due Date, together with interest and other
        amounts as provided herein and in the Term Loan C Promissory Note and (C)
        secured by all of the Collateral. Term Loan C shall in no event exceed
        $3,000,000, during the term of this Agreement. All amounts drawn under Term
        Loan
        C and the Term Loan C Promissory Note shall be payable calculated on the
        basis
        of 60 equal monthly payments of principal with a final payment of the then
        remaining principal balance, interest and other amounts, as provided herein
        and
        in the Term Loan C Promissory Note, on the Due Date. Inyx EU shall execute
        and
        deliver to Lender a Term Loan C Promissory Note at the time of disbursement
        of
        this Term Loan C in the principal amount of such disbursement. Interest only
        shall be payable monthly with respect to Term Loan C on September 1, 2005,
        October 1, 2005 and November 1, 2005.

       

      (ii)
        For
        purposes of this Section 2.3(c) the Net Fair Market Value of Eligible Licenses
        will be the fair market value of such Licenses determined by appraisals
        conducted at the expense of Inyx EU by independent appraisers acceptable
        to
        Lender, reduced by the amount of all reserves and contingencies, determined
        by
        Lender, in its discretion. “Eligible Licenses s” for this purpose are Licenses
        (A) owned by CMSL, (B) which are legal, valid, binding and enforceable by
        CMSL
        to Lender’s satisfaction, (C) which are recorded or registered in the name of
        CMSL in the appropriate filing or recording office therefore, (D) which are
        free
        and clear of all liens, security interests claims, charges, encumbrances
        and
        rights of third parties (including claims of infringement), (E) which by
        their
        respect terms do not terminate or expire prior to the Due Date, (F) which
        are
        assignable and which may be encumbered to Lender’s satisfaction, (G) with the
        terms of which CMSL is in full compliance and as to which no event has occurred
        which with or without the giving of notice or passage of time or both would
        give
        to a right of termination or revocation thereof, (H) as to which CMSL has
        not
        received any notice of termination or revocation, (I) which are shown on
        Schedule 1.37 hereto and (J) which are otherwise acceptable to
        Lender.

      

      (d)
        (i)
        Lender intends to make a Term Loan to Inyx EU for the purpose of for the
        purpose
        of acquiring the Purchased Stock and to be used as provided in section 6.6
        (a)
        and (c) hereof, in the original principal amount of the lesser of (A) $9,000,000
        or (B) the sum of (1) twenty five percent (25%) of the Net Fair Market Value
        of
        the Ashton Real Property plus (2) thirty six percent (36%) of the Fair Market
        Value of the 

       

       

      
        
          
          

        

        
          -25-

          
            

          

        

      

      CMSL
        Equipment, owned by CMSL plus (3) fifty percent (50%) of the Net Fair Market
        Value of the Eligible Licenses. This Term Loan (“Term Loan D”) is and will be
        (A) evidenced by a Term Loan D Promissory Note in the original principal
        amount
        disbursed, duly executed and delivered by Inyx EU to Lender concurrently
        herewith, (B) subject to mandatory prepayments in respect thereof, repaid
        together with interest and other amounts in accordance with this Agreement,
        the
        Term Loan D Promissory Note, and the other Financing Agreements, calculated
        on
        the basis of 60 consecutive monthly installments, payable on the 1st
        day of
        each month commencing December 1, 2005, of which all installments, except
        the
        last installment shall each be in the principal amount of (1) the amount
        disbursed divided by (2) 60 and the last installment and final payment shall
        be
        the amount of the entire unpaid balance of such Term Loan and Term Loan D
        Promissory Note and due on the Due Date, together with interest and other
        amounts as provided herein and in the Term Loan D Promissory Note and (C)
        secured by all of the Collateral. All amounts drawn under Term Loan D and
        the
        Term Loan D Promissory Note shall be payable calculated on the basis of 60
        equal
        monthly payments of principal, with the final payment of the then remaining
        principal balance, interest and other amounts, as provided herein and in
        the
        Term Loan D Promissory Note, on the Due Date. Inyx EU shall execute and deliver
        to Lender a Term Loan D Promissory Note at the time of disbursement of this
        Term
        Loan D, in the principal amount of such disbursement. Interest only shall
        be
        payable monthly with respect to Term Loan D on September 1, 2005, October
        1,
        2005 and November 1, 2005.

       

      (ii)
        Term
        Loan D and the Term Loan D Promissory Note shall be subject to mandatory
        prepayments. Commencing with the fiscal quarter of Borrower beginning January
        1,
        2006, Inyx EU shall make and pay to Lender, quarterly, as a mandatory prepayment
        in respect of Term Loan D and the Term Loan D Promissory Note, on the
        30th
        day
        after the close of each fiscal quarter of Borrower, the greater of (A) fifty
        percent (50%) of Borrowers’ Excess Cash Flow for the preceding fiscal quarter of
        Borrowers and (B) the average amount of Borrowers’ Excess Availability during
        such preceding fiscal quarter.
        Such
        mandatory prepayments are in addition to all other payments of principal,
        interest and charges payable by Inyx EU to Lender in respect of Term loan
        D and
        will be due and payable on the thirtieth (30th) day after the close of each
        fiscal quarter of Borrowers, and with respect to Borrower’s Excess Cash Flow,
        based on Borrower’s internally prepared financial statements; provided
        that,
        if
        Borrower’s audited financial statements for any fiscal year (which Borrower
        agrees to furnish to Lender within one hundred twenty (120) days from the
        close
        of each of its fiscal years) shall reflect that Borrowers’ Excess Cash Flow, for
        the preceding fiscal year, shall be in
        excess
        of that
        reported by Borrowers to Lender in its internally prepared financial statements
        for the fiscal quarters within such fiscal year then Borrowers shall pay
        to
        Lender, on demand, as an additional mandatory prepayment in respect of Term
        Loan
        D and the Term Loan D Promissory Note, fifty percent (50%) of such excess.
        If
        Borrower’s audited financial statements for any fiscal year shall reflect that
        Borrowers’ Excess Cash Flow, for the preceding fiscal year, shall be
        less
        than
        that
        reported by Borrowers to Lender in its internally prepared financial statements
        for the fiscal quarters within such fiscal year no repayment shall be made
        by
        Lender to Borrowers and Borrowers shall not receive any adjustment or credit
        in
        respect thereof. In the event Borrower or any Affiliate of Borrower shall
        change
        its fiscal year, appropriate adjustment shall be made in the periods based
        on
        which the Excess Cash Flow and mandatory prepayments will be determined.
        All
        mandatory prepayments of principal of Term Loan D shall be applied to payments
        falling due in inverse order of maturity.

       

      
        
          
          

        

        
          -26-

          
            

          

        

      

      (iii)
        As
        used in this Section 2.3(d) the terms “Net Fair Market Value of the Eligible
        Licenses, “CMSL Equipment” and “Fair Market Value” shall have the respective
        meanings prescribed in Section 2.3(c) hereof (with respect to Licenses),
        Section
        2.3(b) hereof (with respect to Equipment) and Section 2.3(a) hereof (with
        respect to the Ashton Real Property).

      

      (e)
        Notwithstanding any other provision of this Agreement or the Term Loan
        Promissory Notes, all Term Loans and Term Loan Promissory Notes shall become
        immediately due and payable upon the termination or non-renewal of this
        Agreement, or in Lender’s discretion upon the occurrence of an Event of Default
        under this Agreement or any of the other Financing Agreements. 

      

      (f)
        (i)
        Inyx EU may make “Voluntary Prepayments” of Term Loan D and the Term Loan D
        Promissory Note only, without premium or penalty, in integral multiples of
        $100,000, but only under the following terms and conditions:

       

      (A)
        as of
        both the date of notice of intent to make such Voluntary Prepayment and the
        date
        of making of such prepayment and after giving effect thereto, no Event of
        Default or act, condition or event which with the giving of notice or passage
        of
        time or both would constitute an Event of Default shall exist or have occurred,
        including a failure to comply with any of the provisions of Section 9.14,
        9.16,
        9.15 or 9.17 hereof,

       

      (B)
        As of
        both the date of notice of intent to make such Voluntary Prepayment and the
        date
        of making of such prepayment and after giving effect thereto, Borrower shall
        be
        Solvent;

       

      (C)
        Inyx
        EU shall have given Lender at least ten (10) Business Days prior written
        notice
        of its intent to make the Voluntary Prepayment, stating the amount of such
        Voluntary Prepayment and the date on which such Voluntary Prepayment is to
        be
        made;

       

      (D)
        All
        mandatory prepayments required to be made in respect of Term Loan D, pursuant
        to
        Section 2.3(d) hereof, shall have been made;

       

      (E)
        The
        amount of all Voluntary Prepayments made in any fiscal year of Borrower may
        not
        exceed ten percent (10%) of Borrowers’ Excess Cash Flow for the preceding fiscal
        year; and

       

      (F)
        The
        amount of all Voluntary Prepayments made in any fiscal year of Borrower may
        not
        exceed ten percent (10%) of the outstanding balance of all Term Loans as
        of the
        first day of such fiscal year.

       

      (ii)
        All
        Voluntary Prepayments shall be applied to Term Loan D to payments falling
        due in
        inverse order of maturity.

       

      (iii)
        The
        aggregate amount of all Voluntary Prepayments made during any fiscal year
        of
        Borrower shall reduce the amount of dividends, if
        any,
        that
        Borrower may pay, pursuant to Section 9.19 hereof during such fiscal year;
        provided that,
        the
        aggregate amount of all Voluntary Prepayments made and dividends if
        any,
        that
        maybe declared or paid, during any fiscal year of Borrowers (as may be permitted
        by Section 9.19 hereof) may not exceed twenty five percent (25%) of Borrowers’
        Excess Cash Flow for the preceding fiscal year.

       

      (iv)
        Inyx
        EU having given notice of the intent to make a Voluntary Prepayment described
        in
        Section 2.3(f)(i)(C) hereof and all of the other conditions specified in
        this
        section 2.3(f) having been met, the amount of the Voluntary Prepayment specified
        therein shall be due and payable on the date specified therein.

      
        
          
          

        

        
          -27-

          
            

          

        

      

      2.4
        Availability
        Reserves.
        All
        Revolving Loans otherwise available to a Borrower pursuant to the lending
        formulas and subject to the Maximum Credit and other applicable limits hereunder
        shall be subject to Lender's continuing right to establish and revise
        Availability Reserves and Currency Reserves. 

      

      2.5
        Maximum
        Credit. Except
        in
        Lender's discretion, the aggregate amount of all of the Loans at any time
        shall
        not exceed the Maximum Credit. In the event that the outstanding amount of
        any
        component of the Loans, or the aggregate amount of the outstanding Loans,
        exceed
        the amounts available under the lending formulas, or the Maximum Credit,
        as
        applicable, such event shall not limit, waive or otherwise affect any rights
        of
        Lender in that circumstance or on any future occasions and Borrower shall,
        upon
        demand by Lender, which may be made at any time or from time to time,
        immediately repay to Lender the entire amount of any such excess(es) for
        which
        payment is demanded. The Maximum Credit shall have the following
        sublimits:

      
        
          	 	 
	
                  (a)
                    Revolving Loans-

                	
                  $11,700,000;
                    

                
	
                  (b)
                    Eligible Inventory 

                	 
	
                  (included
                    within the Revolving Loans) - 

                	
                  $
                    5,000,000;

                
	
                  (c)
                    Eligible Inventory Subject to PUT Agreements (included within
                    

                	 
	
                  the
                    Eligible Inventory sublimit) -

                	
                  $
                    5,000,000;

                
	
                  (d)
                    Letter Of Credit Accommodations (included within the Revolving
                    Loans) -
                    

                	
                  $2,500,000;
                    

                
	
                  (e)
                    Term Loan A- 

                	
                  $
                    3,000,000; 

                
	
                  (f)
                    Term Loan B-

                	
                  $
                    9,800,000; 

                
	
                  (g)
                    Term Loan C-

                	
                  $
                    3,000,000; and

                
	
                  (h)
                    Term Loan D

                	
                  $9,000,000.

                
	 	 

        
Section
        3. Interest
        And Fees.

      

      3.1
        Interest.

       

      (a)
        (a)
        Borrower shall pay to Lender interest on the outstanding principal amount
        of (i)
        the non contingent Obligations, except the Term Loans, at the rate of one
        percent (1.00%) per annum in excess of the Prime Rate, (ii) Term Loan A,
        Term
        Loan B and Term Loan C, at the 

       

      
        
          
          

        

        
          -28-

          
            

          

        

      

      rate
        of
        two percent (2.00%) per annum in excess of the Prime Rate and (iii) Term
        Loan D,
        at the rate of fifteen percent (15%) per annum; except that,
        at
        Lender's option, without notice, Borrower shall pay to Lender interest at
        the
        rate of (i) three percent (3.00%) per annum in excess of the Prime Rate:
        (A) on
        all of the non contingent Obligations, except the Term Loans for (1) the
        period
        from and after the date of termination or non-renewal hereof until such time
        as
        Lender has received full and final payment of all such Obligations
        (notwithstanding entry of any judgment against Borrower), and (2) the period
        from and after the date of the occurrence of an Event of Default for so long
        as
        such Event of Default is continuing as determined by Lender and (B) on the
        Revolving Loans, at any time outstanding in excess of the amounts available
        to
        Borrower under Section 2 (whether or not such excess(es), arise or are made
        with
        or without Lender's knowledge or consent and whether made before or after
        an
        Event of Default), (ii) four percent (4.00%) per annum in excess of the Prime
        Rate on Term Loan A, Term Loan B and Term Loan C for the periods specified
        in
        Section 3.1(a)(i)(A)(1) and (2) hereof and (iii) seventeen percent (17%)
        per
        annum on Term Loan D for the periods specified in Section 3.1(a)(i)(A)(1)
        and
        (2) hereof; provided 
        that,
        the
        minimum interest rate, at all times payable hereunder, shall never be less
        than
        six and one half percent (6.50%) per annum on the non contingent Obligations,
        except the Term Loans and (y) seven and one half percent (7.50%) per annum
        on
        Term Loan A, Term Loan B and Term Loan C.

       

      (b)
        Interest shall be payable by Borrower to Lender monthly in arrears not later
        than the first day of each calendar month and shall be calculated on the
        basis
        of a three hundred sixty (360) day year and actual days elapsed. The interest
        rate shall increase or decrease by an amount equal to each increase or decrease
        in the Prime Rate effective on the first day of the month after any change
        in
        such Prime Rate is advised or announced. The increase or decrease shall be
        based
        on the Prime Rate in effect on the last day of the month in which any such
        change occurs. All interest accruing hereunder on and after an Event of Default
        or termination or non-renewal hereof shall be payable on demand. In no event
        shall charges constituting interest payable by Borrower to Lender exceed
        the
        maximum amount or the rate permitted under any applicable law or regulation,
        and
        if any part or provision of this Agreement is in contravention of any such
        law
        or regulation, such part or provision shall be deemed amended to conform
        thereto.

      

      3.2 Closing
        Fee.
        Borrower shall pay to Lender as a closing fee of one and one half percent
        (1.50)% of the Maximum Credit, which shall be fully earned as of and payable
        on
        the date hereof.

      

      3.3 Servicing
        Fee.
        Borrower shall pay to Lender monthly a servicing fee in an amount equal to
        $2,500 in respect of Lender's services for each month (or part thereof) while
        this Agreement remains in effect and for so long thereafter as any of the
        Obligations are outstanding, which fee shall be fully earned as of and payable
        in advance on the date hereof and on the first day of each month hereafter.
        

      

      
        
          
          

        

        
          -29-

          
            

          

        

      

      3.4 Unused
        Line Fee.
        Borrower shall pay to Lender monthly, an unused line fee at a rate equal
        to one
        half of one percent (0.50%) percent per annum calculated upon the amount
        by
        which $10,000,000 exceeds the average daily principal balance of the outstanding
        Revolving Loans and Letter of Credit Accommodations during the immediately
        preceding month (or part thereof), while this Agreement is in effect and
        for so
        long thereafter as any of the Obligations are outstanding, which fee shall
        be
        payable on the first day of each month in arrears.

      

      3.5
        Letter
        of Credit Fees.
        Borrower
        shall pay Lender fees for Letter of Credit Accommodations as stated in Section
        2.2(b) hereof.

      

      3.6
        Facility
        Fee.
        Borrower
        shall pay to Lender commencing September 1, 2006, and annually thereafter
        as a
        facility fee the amount of $50,000 for providing the revolving credit facility,
        which shall be fully earned as of and payable on such dates.

       

      3.7
        Success
        Fee.
        In the
        event that Borrower has positive Income Before Taxes in excess of Zero
        Dollars($0) for any three(3) of its fiscal years ending during the
        Term(including any renewal thereof) of this Agreement then Borrower shall
        pay to
        Lender a “success fee” in the amount of the greater of (a) $100,000 and (b)ten
        percent (10%) the Income Before Taxes of Borrower for such fiscal year,
        determined on a consolidated basis and in accordance with GAAP, for and with
        respect to each such fiscal year. Such fee is in addition to all other fees,
        interest and charges payable by Borrower to Lender and such fee will be due
        and
        payable on the thirtieth (30th) day after the close of each of fiscal year
        of
        Borrower for which it has Income Before Taxes equal to or greater then Zero
        Dollars($0), based on Borrower’s internally prepared financial statements; but
        adjusted accordingly, if necessary, upon receipt of Borrower’s preliminary
        audited consolidated and consolidating financial statements, which Borrower
        agrees to furnish to Lender within ninety (90) days from the close of Borrower’s
        fiscal year. Lender may charge such fees to Borrower’s loan account, without
        prior notice. In the event Borrower shall change its fiscal year, appropriate
        adjustment shall be made in the periods based on which the “success fee” will be
        determined. 

      

      3.8
        Early
        Termination Fee.
        If for
        any reason this Agreement is terminated prior to the end of the then current
        term or any renewal term of this Agreement, in view of the impracticality
        and
        extreme difficulty of ascertaining actual damages and by mutual agreement
        of the
        parties as to a reasonable calculation of Lender’s lost profits as a result
        thereof, Borrower agrees to pay to Lender, on demand an early termination
        fee in
        the amount set forth below if such termination or failure is effective in
        the
        period indicated:

      

        
          
            	
                    Amount

                  	 	
                    Period

                  
	 	 	 
	
                    (a)
                      5% of the Maximum Credit

                  	 	
                    From
                      the date hereof to and including March 31, 2006;

                  
	 	 	 
	
                    (b)
                      3% of the sublimit on Revolving Loans plus 3% of the then 

                  	 	
                    From
                      April 1, 2006 to and including March
                      31, 2007; and

                  
	
                    outstanding
                      balance of
                      the Term Loans

                  	 	
                  
	 	 	 
	
                    (d)
                      1% of the sublimit on Revolving Loans plus 1% of the then 

                  	 	
                    From
                      April 1, 2007, to and including March 30, 2008 or if this
                      

                  
	
                    outstanding
                      balance of
                      the Term Loans

                  	 	
                    Agreement
                      is extended for an additional period as provided
                      herein,

                  
	
                  	 	
                    to
                      and including
                      the end of the then current
                      term;

                  

          

           

          
            
              
              

            

            
              -30-

              
                

              

            

          

        

      

      provided that;
        (a)
        Borrower shall pay one half (1/2) the amount of the early termination fee
        computed
        above if and only if, all Loans are repaid simultaneously from the proceeds
        of
the
        issue
        and sale of by Inyx of shares of its Capital Stock and (b) Borrower may repay
        all Loans simultaneously at any time and shall pay the full amount of the
        early
        termination fee computed above. Such early termination fee shall be presumed
        to
        be the amount of damages sustained by Lender as a result of such early
        termination and Borrower agrees that it is reasonable under the circumstances
        currently existing. In addition, Lender shall be entitled to such early
        termination fee upon the occurrence of any Event of Default described in
        Sections 10.1(g) or 10.1(h) hereof even if Lender does not exercise its right
        to
        terminate this Agreement; but Lender elects, at its option, to provide financing
        to Borrower or permit the use of cash collateral under the Bankruptcy Code.
        The
        early termination fee provided for in this Section 3.8 shall be deemed included
        in the Obligations. Borrower waives any claim for reduction of fees whether
        or
        not such fees are treated as a penalty.

      

      3.9
        Special
        Interest Computation.
        Interest on the initial Loans will accrue and be calculated as of and from
        August 26, 2005, notwithstanding that this Agreement will be signed and such
        Loans made available to Borrower at a later date.

      

      Section
        4.  Conditions
        Precedent.

      

      4.1 Conditions
        Precedent to Initial Loans and Letter of Credit Accommodations.
        Each of
        the following is a condition precedent to Lender making the initial Loans,
        and
        providing the initial Letter of Credit Accommodations hereunder:

      

      (a)
        Lender shall have received, in form and substance satisfactory to Lender,
        (i)
        evidence that Lender has valid, perfected and first priority security interests
        in and liens upon the Collateral and any other property which is intended
        to be
        security for the Obligations, subject only to Permitted Liens, (ii) all
        releases, terminations and such other documents as Lender may request to
        evidence and effectuate the termination by others who have provided financial
        accommodations to any Borrower of their respective financing arrangements
        with
        each such Borrower and the termination and release by it or them, as the
        case
        may be, of any interest in and to any assets and properties of Borrower,
        duly
        authorized, executed and delivered by it or each of them, including, but
        not
        limited to, (A) UCC termination statements for all UCC financing statements
        previously filed by it or any of them or their predecessors, as secured party
        and Borrower, as debtor and (B) satisfactions and discharges of any mortgages,
        deeds of trust or deeds to secure debt by any Borrower in favor of others
        in
        form acceptable for recording in the appropriate government office and
        (iii)
        evidence
        that the Purchase Agreements have been duly executed and delivered by and
        to the
        appropriate parties thereto and the transactions contemplated under the terms
        of
        the Purchase Agreements have been consummated prior to or contemporaneously
        with
        the execution of this Agreement.

       

      
        
          
          

        

        
          -31-

          
            

          

        

      

      (b)
        All
        requisite corporate and other actions and proceedings in connection with
        this
        Agreement and the other Financing Agreements shall be satisfactory in form
        and
        substance to Lender, and Lender shall have received all information and copies
        of all documents, including records of requisite corporate and other actions
        and
        proceedings which Lender may have requested in connection therewith, such
        documents where requested by Lender or its counsel to be certified by
        appropriate corporate officers or governmental authorities.

       

      (c)
        No
        material adverse change shall have occurred in the assets, business or prospects
        of Borrower since the date of Lender's latest field examination and no change
        or
        event shall have occurred which would impair the ability of any Borrower
        to
        perform its obligations hereunder or under any of the other Financing Agreements
        to which it is a party or of Lender to enforce the Obligations or realize
        upon
        the Collateral.

       

      (d)
        Lender shall have completed a field review of the Records and such other
        information with respect to the Collateral as Lender may require to determine
        the amount of Revolving Loans and Term Loans available to Borrower, the results
        of which shall be satisfactory to Lender, not more than three (3) business
        days
        prior to the Closing Date.

       

      (e)
        Lender shall have received, in form and substance satisfactory to Lender,
        all
        consents, waivers, acknowledgments and other agreements from third persons
        which
        Lender may deem necessary or desirable in order to permit, protect and perfect
        its security interests in and liens upon the Collateral or to effectuate
        the
        provisions or purposes of this Agreement and the other Financing Agreements,
        including acknowledgments by counter parties to licensing agreements and
        other
        Manufacturing Contracts, lessors, mortgagees and warehousemen of Lender's
        liens
        and security interests in the Collateral, waivers by such persons of any
        security interests, liens or other claims by such persons to the Collateral
        and
        agreements permitting Lender access to, and the right to remain on, the premises
        to exercise its rights and remedies and otherwise deal with the
        Collateral.

       

      (f)
        Lender shall have received, in form and substance satisfactory to Lender,
        (i)
        such opinion letters of counsel to Borrower and counsel to Lender with respect
        to the Purchase Agreements, the Financing Agreements, and the security interests
        and liens of Lender in the Collateral as Lender may request and as to such
        other
        matters as Lender may request.

       

      (g)
        The
        other Financing Agreements requested or submitted by Lender from or to Borrower
        and all instruments and documents hereunder and thereunder shall have been
        duly
        executed and delivered to Lender, in form and substance satisfactory to
        Lender.

       

      (h)
        Lender shall have received, in form and substance satisfactory to Lender
        (i) all
agreements
        with respect to (i) the Blocked Accounts and (ii)all investment property
        and all
        other deposit accounts of Borrower as Lender may require, duly authorized,
        executed and delivered by Borrower and the appropriate depository, financial
        or
        other applicable institution.

       

      
        
          
          

        

        
          -32-

          
            

          

        

        
          
          

        

      

      (i)
        Excess Availability and Suppressed Availability, as of the Closing Date,
        shall
        not be less than $2,000,000 and $500,000 respectively(included within such
        Excess Availability), after giving the effect to the Loans to be made to
        be
        provided in connection with the initial transactions hereunder.

       

      (j)
        All
        indebtedness owing by (i) any Borrower to any Affiliate, (ii) by any guarantor
        of the Obligations to Borrower, (iii) by Borrower to any stockholder, officer
        or
        director of Borrower whether of not on Affiliate of Borrower, (iv) by a Borrower
        to any other Borrower or (v) by any Affiliate of Borrower to Borrower, shall
        have been fully subordinated to the Obligations to Lenders
        satisfaction.

       

      (k)
        Lender shall have received, in form and substance satisfactory to Lender,
        (i) a
        pro forma and market value balance sheet of each Borrower, reflecting the
        initial transactions contemplated hereunder, including, but not limited to,
        (A)
        the Loans and Letter Of Credit Accommodations to be provided by Lender to
        Borrowers, (B) the use of the proceeds of the initial Loans as provided herein
        and (C) the consummation of the acquisition of the Purchased Stock by Borrower
        from Seller and the other transactions contemplated by the Purchase Agreements
        and (ii) a projection and forecast of each Borrower’s cash flow for its current
        and three (3) succeeding fiscal years all accompanied by a certificate, dated
        as
        of the Closing Date, of the chief executive officer and chief financial officer
        of each Borrower, stating that such pro-forma balance sheet, market value
        balance sheet and projection of cash flow, represents the reasonable, good
        faith
        opinion of such officers as to the subject matter thereof as of the date
        of such
        certificate and as to such other matters as Lender may request.

       

      (l)
        Lender shall have received evidence of insurance and loss payee endorsements
        required hereunder and under the other Financing Agreements, in form and
        substance satisfactory to Lender, and certificates of insurance policies
        and/or
        endorsements naming Lender as loss payee, all of which insurance shall be
        in
        amounts, for periods, with coverage and otherwise satisfactory to Lender,
        in
        form and substance, including policies covering business and environmental
        risk
        with respect to the Collateral.

       

      (m)
        Lender shall have received a pledge in form and substance satisfactory to
        Lender
        of all of the Capital Stock of each Borrower.

       

      (n)
        Lender shall have received assignments of all Material Contracts, leases,
        rent
        proceeds from leases, distribution rights, permits, Licenses, Manufacturing
        Contracts, and other Intellectual Property and all consents and agreements
        of
        counter parties or other third parties with respect thereof, as Lender shall
        have required, all in form and substance satisfactory to Lender.

       

      (o)
        All
        fees, costs and expenses owing to Lender, including the fees and disbursements
        of Lender’s counsel shall have been paid, concurrently with the execution
        hereof.

       

      (p)
        Borrower shall have delivered to Lender, at its expense, an environmental
        audit
        of the Ashton Real Property conducted by an environmental engineering firm
        acceptable to Lender and in form, scope and methodology satisfactory to Lender
        confirming that (i) Borrower and Seller is each in compliance with all
        Environmental Laws, in all material respects and (ii)there is no material
        potential or actual liability of Borrower for any remedial action with respect
        to any environmental condition or any other significant environmental
        problem.

       

      
        
          
          

        

        
          -33-

          
            

          

        

        
          
          

        

      

      (q)
        Lender shall have received evidence of payments or certificates, to its
        satisfaction that all Federal, Commonwealth, British, municipal and other
        taxes
        or charges of any Governmental Agency owing or claimed owing by Borrower
        (directly or as a transferee of the assets of the Company) have been paid
        or
        adequate provision for the payment thereof, including payment plans, to Lender’s
        satisfaction, has been made.

       

      (r)
        Borrower shall be in full compliance with the financial covenants contained
        in
        Sections 9.14, 9.15, 9.16 and 9.17 hereof.

       

      (s)
        Borrower shall have furnished evidence to Lender that all property taxes
        on the
        Real Estate Security then due have been paid, Borrower shall have executed
        and
        delivered to Lender all Real Estate Security and Lender shall have received
        mortgagee title policies with respect thereto in such amounts and from such
        insurers and with such affirmative coverage’s as Lender may request, or in
        Lender’s discretion title opinions from Lender’s counsel, all in form and
        substance satisfactory to Lender.

       

      (t)
        Lender shall have received recent surveys of the Ashton Real Property prepared
        by a licensed engineer, satisfactory to Lender, conforming to the descriptions
        and showing no encroachments and certified to Lender and Lender shall have
        received appraisals for the Ashton Real Property from appraisers acceptable
        to
        Lender, addressed to Lender, all in form and substance and showing such values
        therefor, as shall be acceptable to Lender.

       

      (u)
        The
        market value balance sheets of Borrowers, the certificate and the projection
        referred to in Section 4.1 (k) hereof shall reflect to Lender’s satisfaction
        that each Borrower is Solvent.

       

      (v)
        Lender shall have received evidence of zoning of the Ashton Real Property
        disclosing no violation of applicable regulations, satisfactory to Lender
        and
        flood zone certificates for the Ashton Real Property, satisfactory to
        Lender.

       

      (w)
        Lender shall have received, in form and substance satisfactory to Lender,
        a
        guarantee of payment of the Obligations by each Affiliate of Borrower requested
        by Lender, secured
        by first and only liens and security interests (except for those permitted
        by
        Section 9.8(a) hereof) in each such Person’s assets in favor of Lender,
        including real property, Equipment, Inventory and Accounts of Inyx, Inyx
        USA,
        Ltd. and Inyx Pharma, Limited, (x) With respect to the Purchase Agreements
        and
        the Purchased Stock:

       

      (i)
        The
        Purchase Agreements shall be satisfactory to Lender, in form and
        substance;

       

      (ii)
        Lender shall have received, in form and substance satisfactory to Lender,
        evidence that the Purchase Agreements, have been duly executed and delivered
        by
        and to the appropriate parties thereto, constitute the legal, valid and binding
        obligations of the parties thereto and the transactions contemplated under
        the
        terms of the Purchase Agreements shall have closed and have been consummated
        prior to or contemporaneously with the making of the initial Loans;

       

      (iii)
        Lender shall have received, in form and substance satisfactory to Lender,
        the
        agreement of the Seller consenting to the collateral assignment by Borrower
        to
        Lender of all of Borrower's rights and remedies and claims for damages,
        indemnification or other relief under the Purchase Agreements and granting
        Lender such other rights as Lender may require, duly authorized, executed
        and
        delivered by Seller;

       

      
        
          
          

        

        
          -34-

          
            

          

        

      

      (iv)
        Lender shall have received in form and substance satisfactory to Lender
        such
        opinion
        letters of counsel to the Seller with respect to the Purchase Agreement and
        the
        consummation of the transactions contemplated thereby and as to such other
        matters as Lender may request;

       

      (v)
        Lender shall have received in form and substance satisfactory to Lender evidence
        that all payments required to be made by Borrower in connection with the
        Purchase Agreements have been, or concurrently with the making of the Initial
        Loans will be, made; 

       

      (vi)
        The
        purchase price for the Purchased Stock payable by Borrower to Seller shall
        not
        exceed $23,500,000;

       

      (vii)
        No
        court
        of competent jurisdiction shall have issued any injunction, restraining order
        or
        other order which prohibits consummation of the transactions described in
        the
        Purchase Agreements and no governmental or other action or proceeding shall
        have
        been threatened or commenced, seeking any injunction, restraining order or
        other
        order which seeks to void or otherwise modify the transactions described
        in the
        Purchase Agreements, no law,
        regulation, order, judgment or decree of any governmental authority shall
        exist
        which has or could reasonably be expected to have a Material Adverse Effect
        on
        the transactions contemplated by the Purchase Agreements and Borrower shall
        have
        obtained all consents required for the consummation of the transactions
        contemplated by the Purchase Agreements, in each case to Lender’s satisfaction;
        and

       

      (viii)
        Borrower shall have acquired from Seller, pursuant to the Purchase Agreements
        good and marketable title to the Purchased Stock to Lender’s satisfaction free
        and clear of all liens, claims, charges, encumbrances, security interest
        and
        rights of third parties, except Permitted Liens.

       

      (y)
        Lender shall have received all such subordination agreements, non-disturbance
        agreements, assignments of leases, landlord’s consents and other agreements and
        consents from landlords, subtenants and mortgagees and as Lender shall
        request.

       

      (z)
        Lender shall have received estoppel certificates from all of Seller’s landlords,
        customers, suppliers and others with whom Borrower will do business or have
        contractual arrangements showing that no defaults thereunder exist or that
        any
        alleged default will not have a Material Adverse Effect.

       

      (aa)
        Lender shall have received appraisals for the Real Estate Security and the
        CMSL
        Equipment from appraisers acceptable to Lender, addressed to Lender, all
        in form
        and substance and showing such values therefor, as shall be acceptable to
        Lender.

       

      (bb)
        Lender shall have received evidence satisfactory to Lender that all payments
        required to be made by Inyx EU to acquire the Purchased Stock and pay the
        purchase price therefore, will be made concurrently with the making of the
        Initial Loans.

       

      (cc)
        Lender shall have received background reports, satisfactory to Lender in
        all
        respects, on the principal shareholders and officers of Borrower.

       

      
        
          
          

        

        
          -35-

          
            

          

        

      

      (dd)
        The
        payment of not less than $10,000,000 of the purchase price payable to the
        Seller
        under the Purchase Agreements (i) shall have been deferred by Seller on terms
        and conditions acceptable to Lender (ii) shall be evidenced by a note issued
        and
        delivered by Inyx EU to Seller, in form and substance satisfactory to Lender,
        the payment of which note shall be fully subordinated to the payment of the
        Obligations to Lender’s satisfaction and which subordination shall be reflected
        in such Note to Lender’s satisfaction and (iii) the Seller shall have entered
        into such subordination and intercreditor agreements with Lender with respect
        thereto and with respect to any security therefor as Lender shall have
        requested, all in form and substance satisfactory to Lender.

       

      (ee)
        Lender shall have received appraisals for all Licenses from appraisers
        acceptable to Lender, addressed to Lender, all in form and substance and
        showing
        such values therefor, as shall be acceptable to Lender.

      

      (ff)
        All
        actions shall have been taken to Lenders satisfaction, so that:

       

      (i)
        CMSL
        may legally and validly guaranty the Obligations of Inyx EU to
        Lender,

       

      (ii)
        Inyx
        EU may legally, and validly guaranty the Obligations of CMSL to Lender, and
        

       

      (iii)
        Borrowers may legally and validly guaranty the obligations and liabilities
        of
        Inyx, Inyx USA and Inyx Pharma to Lender, 

       

      (iv)
        Inyx
        Pharma may legally and validly guaranty the Obligations of Borrowers to Lender,
        and

       

      (v)
        Inyx
        EU and CMSL may both legally and validly be and undertake the liabilities
        of
        Borrowers under this Agreement,

      including
        such declarations, opinions of independent auditors and other matters necessary
        to effect a “whitewash” as required and all such Persons shall have executed and
        delivered such guarantees to Lender all in form and substance satisfactory
        to
        Lender.

       

      (gg)
        Inyx
        EU and CMSL shall have entered into a loan agreement, in form and substance
        satisfactory to Lender providing for the making and funding of loans by CMSL
        to
        Inyx EU in amounts and at times sufficient to enable Inyx EU to pay the
        Obligations to Lender, which agreement shall been assigned to Lender, to
        its
        satisfaction.

      

      Notwithstanding
        that all conditions specified in this Section 4.1 have not been complied
        with or
        fulfilled by the Closing Date, Lender may permit Borrower periods of up to
        thirty (30) days from the Closing Date to comply with and satisfy one or
        more of
        the conditions specified in this Section 4.1 hereof which have not been complied
        with and satisfied as of the Closing Date and may defer funding of, fund
        partially or not fund at all, any or all of the initial and future Loans
        as
        Lender shall determine, unless and until such conditions have been satisfied,
        all in Lender’s discretion. Lender shall have no liability to Borrower
        whatsoever for not funding any or all of the Loans if any such condition
        is not
        satisfied within such thirty (30) day period.

      

      4.2
        Conditions
        Precedent to All Loans And Letter of Credit Accommodations.
        Each of
        the following is an additional condition precedent to Lender making Loans
        to
        Borrower, including the initial and any future Loans:

      

      
        
          
          

        

        
          -36-

          
            

          

        

        
          
          

        

      

      (a)
        all
        representations and warranties contained herein and in the other Financing
        Agreements shall be true and correct in all material respects with the same
        effect as though such representations and warranties had been made on and
        as of
        the date of the making of each such Loan and after giving effect
        thereto;

       

      (b)
        no
        Event of Default and no event or condition which, with notice or passage
        of time
        or both, would constitute an Event of Default, shall exist or have occurred
        and
        be continuing on and as of the date of the making of such Loan, and after
        giving
        effect thereto;

       

      (c)
        No
        law, regulation, order, judgment or decree of any governmental authority
        shall
        exist, and no action, suit, investigation, litigation or proceeding shall
        be
        pending or threatened in any court or before any arbitrator or Governmental
        Authority, which (i) purports to enjoin, prohibit, restrain or otherwise
        affect
        (A) the making of the Loans or (B) the consummation of the transactions
        contemplated pursuant to the terms hereof or the other Financing Agreements
        or
        (ii) has or could reasonably be expected to have a Material Adverse Effect;
        and

       

      (d)
        Lender shall have received such certificates, from such persons and in such
        detail, as to the forgoing matters and as to such other matters covered by
        this
        Agreement, as it may have requested.

      

      4.3
        Additional Conditions Precedent to Term Loans.
        Each of
        the following is an additional condition precedent to Lender making
        disbursements of any portion of any Term Loan to Borrower of amounts thereof
        not
        disbursed at closing as part of the initial Loans:

       

      (a)
        Any
        condition precedent specified in Section 4.1 hereof or elsewhere herein to
        the
        making of the initial Loans not satisfied at the time of making of the initial
        Loans the satisfaction of which had been deferred by Lender shall have been
        fulfilled to Lender’s satisfaction;

       

      (b)
        All
        such conditions shall have been satisfied within the time prescribed, to
        Lenders
        satisfaction;

       

      (c)
        No
        material adverse change shall have occurred in the assets, business or prospects
        of Borrower since the Closing Date and no change or event shall have occurred
        which would impair the ability of Borrower or any Obligor to perform its
        obligations hereunder or under any of the other Financing Agreements to which
        it
        is a party or of Lender to enforce the Obligations or realize upon the
        Collateral;

       

      (d)
        Lender shall have approved the purpose for which the proceeds of such Term
        Loan
        are to be used; and

       

      (e)
        All
        conditions specified in Section 4.2 hereof must continue to be satisfied
        at and
        as of the date of each disbursement.

      

      4.4
        United
        Kingdom Specific Conditions Precedent.
        The
        receipt by the Lender of a certified copy of each of the following, in form
        and
        substance satisfactory to Lender are each additional conditions precedent
        to
        Lender making the initial Loans, and providing the initial Letter of Credit
        Accommodations hereunder:

       

      
        
          
          

        

        
          -37-

          
            

          

        

        
          
          

        

      

       

      
        	
              	(a)	
                the
                  certificate of incorporation (and any relative certificate of
                  incorporation on change of name) of each of Inyx EU and
                  CMSL;

              

      

       

      
        	
              	(b)	
                the
                  memorandum and articles of association of each of Inyx EU and
                  CMSL;

              

      

       

      
        	
              	(c)	
                the
                  minutes of a meeting of the board of directors of Inyx EU and CMSL
                  (including the resolutions passed at those
                  meetings):

              

      

       

      
        	 	
                (i)
                  approving and authorizing the execution, delivery and performance
                  of each
                  Financing Agreement to which it is to be a party on the terms and
                  conditions of those documents subject always, where appropriate,
                  to the
                  provisions of sections 151 to 158 (inclusive) of the
                  Act;

              

      

       

      
        	 	
                (ii)
                  showing that the relevant board meeting was quorate, that due
                  consideration was given by all the relevant directors present of
                  the
                  relevant company's obligations and liabilities arising under those
                  documents and that all declarations of interests required in connection
                  with any Financing Agreement to which it is to be a party were
                  made;
                  and

              

      

       

      
        	 	
                (iii)
                  authorizing any director whose name and specimen signature is set
                  out in
                  those minutes to sign or otherwise attest the execution of those
                  documents
                  and any other documents to be executed or delivered pursuant to
                  those
                  documents;

              

      

       

      
        	
              	(d)	
                a
                  certificate of the Borrowers confirming that borrowing or guaranteeing
                  of
                  the Loans would not cause any borrowing, guaranteeing or similar
                  limit
                  binding to be exceeded;

              

      

       

      
        	
              	(e)	
                a
                  special resolution of the members of CMSL;

              

      

       

      
        
          	
                	(f)	
                  the
                    statutory declarations made for the purpose of section 155
                    of the Act
                    in the prescribed form by all of the directors of CMSL together
                    with a
                    Certified Copy of each statutory report by each of those companies'
                    auditors required under section 156(4) of the Act;

                

        

      

       

      
        
          	
                	(g)	
                  the
                    register of directors of CMSL (including the resignation letters
                    of the
                    existing directors of CMSL and forms 288b) and Inyx EU, board
                    memorandum
                    given by the directors of CMSL, members register for Inyx EU
                    showing Inyx,
                    Inc as parent and updated members register for CMSL showing Inyx
                    EU as
                    parent;

                

        

      

       

      
        
          	
                	(h)	
                  a
                    letter addressed to the Lender from the auditors of Inyx EU and
                    CMSL
                    confirming that the aggregate of their respective assets as stated
                    in
                    their respective accounting records exceeds the aggregate of
                    their
                    liabilities as so stated (net assets
                    letter);

                

        

      

       

      
        
          
          

        

        
          -38-

          
            

          

        

         

      

      
        
          	
                	(i)	
                  evidence
                    that all security interests, mortgages, pledges, charges or any
                    other
                    encumbrance over the assets and undertakings of the Borrowers
                    have been
                    released and discharged and that there are no security interests,
                    mortgages, pledges, charges or any other encumbrance over the
                    assets
                    (other than Permitted Liens) and in particular evidence that
                    the overdraft
                    facility and company composite guarantee that supports this overdraft
                    facility provided to CSML and other members of the CSML's group
                    by Royal
                    Bank of Scotland plc has been
                    discharged;

                

        

      

       

      
        
          	
                	(j)	
                  share
                    certificates in relation to the entire issued share capital of
                    CMSL and
                    Inyx EU together with duly executed blank stock transfer forms;
                    

                

        

      

       

      
        
          
            
              
                	
                      	(k)	
                        The
                          following documents, instruments, agreements and
                          reports:

                      

              

            

          

        

      

       

      
        	 	
                (i)
                  Security Agreement given by Inyx
                  EU;

              

      

       

      
        	 	
                (ii)Security
                  Agreement given by CMSL;

              

      

       

      (iii)
        Mortgage of Shares given by Inyx, Inc in respect of its shares in Inyx
        EU;

       

      (iv)
        Mortgage of Shares given by Inyx, Inc in respect of its shares in Inyx
        Pharma;

       

      (v)
        Receipts Accounts letter from each of Inyx EU and CMSL to the
        Lender;

       

      (vi)
        Supplemental Security Agreement given by Inyx Pharma;

       

      (vii)
        Real Estate Report on title in a form satisfactory to the Lender;

       

      (viii)All
        deeds, documents and ancillary papers (or an undertaking to procure the same)
        relating to the Real Property including official copies of Land Registry
        entries, counterpart leases , licences and other deeds or documents necessary
        or
        desirable to assist the Lender to enforce its Security;

       

      (ix)
        The
        results of Land Registry searches in favour of the Lender on the appropriate
        forms against all of the registered titles comprising the real property giving
        not less than 10 Business Days' priority beyond the date of the security
        agreement and showing no adverse entries;

       

      (x)
        An
        effective discharge of all mortgages, charges and liens affecting the real
        property including completed forms and fees for all resultant registration
        formalities;

       

      (xi)
        Such
        land registry application forms as the Lender may require (in a form approved
        by
        the Lender) and an undertaking from the Borrower's solicitors to use reasonable
        endeavours forthwith to submit to the Land Registry within the priority period,
        (and if necessary to take all steps necessary to extend the priority period
        conferred y the Land Registry in favour of the Lender), the application to
        register the Debenture as a first ranking charge and to deal promptly and
        satisfy any requisitions raised by the Land Registry in connection with the
        application and to pay all necessary Land Registry fees in connection with
        the
        application; and

       

      (xii)
        Legal opinion of Allen & Overy;

       

      
        
          
          

        

        
          -39-

          
            

          

        

         

      

      
        
          
            	
                  	
                    (l)

                  	
                    notice
                      to the Seller and any third party of the assignment of Inyx
                      EU's and
                      Inyx's rights and interests in and to the Purchase Agreement,
                      Relevant
                      Contracts and bank accounts in a form and content satisfactory
                      to the
                      Lender forthwith upon the Lender's request together with an
                      acknowledgment
                      duly executed by the
                      Seller;

                  

          

        

      

       

      
        
          	
                	(m)	
                  a
                    Certified Copy of the Disclosure
                    Letter;

                

        

      

       

      
        
          	
                	(n)	
                  all
                    items comprising the Information
                    Package;

                

        

      

       

      
        
          	
                	(o)	
                  certified
                    copies of all Relevant
                    Contracts;

                

        

      

       

      
        
          	
                	(p)	
                  all
                    searches, registrations, recordings and filings of or with respect
                    to the
                    Financing Agreements which in the opinion of counsel to the Lender
                    are
                    necessary to render effective the security intended to be created
                    thereby;
                    and

                

        

      

       

      
        
          
            	
                  	
                    (q)

                  	
                    all
                      other documents deliverable under the Financing Agreements
                      to be governed
                      by English law;

                  

          

        

      

       

      
        	
              	(s)	
                a
                  certificate from a director of Inyx EU certifying that as at
                  Completion:

              

      

       

      (i) each
        of
        the conditions precedent to the consummation of the transactions contemplated
        by
        the Purchase Agreement has been satisfied or, with the consent of the Lender,
        waived;

       

      (ii) other
        than with the consent of the Lender, none of Inyx EU's rights under the Purchase
        Agreement has been waived or varied;

       

      (iii) Inyx
        EU
        is not aware of any breach of warranty under the Purchase Agreement;
        and

       

      (iv) Inyx
        EU
        will be the beneficial owner of the all the issued share capital in
        CMSL.

       

      
        
          
          

        

        
          -40-

          
            

          

        

        
          
          

        

      

      For
        purposes of this Section 4.4 “Completion” means
        the
        completion of the acquisition of the stock of CMSL pursuant to the Purchase
        Agreement.

       

      Section
        5. Grant
        of Security Interest.

      

      5.1
        Grant
        of Security Interest.
        To
        secure payment and performance of all Obligations, each Borrower hereby grants
        to Lender a continuing security interest in, a lien upon, and a right of
        set off
        against, and hereby assigns to Lender as security, the following property
        and
        interests in property of such Borrower, whether now owned or hereafter acquired
        or existing, and wherever located (together with all other collateral security
        for the Obligations at any time granted to or held or acquired by Lender
        collectively (the “Collateral”).

      

      (a)
        all
        Accounts;

       

      (b)
        all
        present and future general intangibles, including all Intellectual
        Property;

       

      (c)
        all
        Inventory;

       

      (d)
        all
        Equipment;

       

      (e)
        all
        Real Property and fixtures and all Real Estate Security;

       

      (f)
        all
        chattel paper, including all tangible and electronic chattel paper;

       

      (g)
        all
        instruments, including all promissory notes;

       

      
        	
                 

              	
                (h)
                  all documents;

              

      

       

      (i)
        all
        deposit accounts;

       

      (j)
        all
        letters of credit, banker’s acceptances and similar instruments and including
        all letter of credit rights;

       

      (k)
        all
        supporting obligations and all present and future liens, security interests,
        rights, remedies, title and interest in, to and in respect of Receivables
        and
        other Collateral, including (i) rights and remedies under or relating to
        guaranties, contracts of surety ship, letters of credit and credit and other
        insurance related to the Collateral, (ii) rights of stoppage in transit,
        replevin, repossession, reclamation and other rights and remedies of an unpaid
        vendor, lienor or secured party, (iii) goods described in invoices, documents,
        contracts or instruments with respect to, or otherwise representing or
        evidencing, Receivables or other collateral, including returned, repossessed
        and
        reclaimed goods, and (iv) deposits by and property of account debtors or
        other
        persons securing the obligations of account debtors;

       

      (l)
        all
        (i) investment property (including securities, whether certificated or
        uncertificated, securities accounts, security entitlements, commodity contracts
        or commodity accounts) and (ii) monies, credit balances, deposits and other
        property of Borrower, now or hereafter held or received by or in transit
        to
        Lender or at any other depository or other institution from or for the account
        of Borrower whether for safekeeping, pledge, custody, transmission, collection
        or otherwise;

       

      (m)
        all
        commercial tort claims, including, without limitation, those identified in
        the
        Information Certificate;

       

      
        
          
          

        

        
          -41-

          
            

          

        

        
          
          

        

      

      (n)
        to
        the extent not otherwise described above, all Receivables and all
        goods;

       

      (o)
        all
        Records;

       

      (p)
        the
        leases of all premises leased by Borrower(including an assignment
        thereof);

       

      (q)
        all
        motor vehicles; 

       

      (r)
        all
        shares of Capital Stock of each Subsidiary of a Borrower and the certificates
        representing such shares;

       

      (s)
        all
        Manufacturing Contracts and assignment of proceeds of all Manufacturing
        Contracts;

       

      (t)
        all
        Licenses; and

       

      (u)
        all
        products and proceeds of the foregoing in any form, including insurance proceeds
        and all claims against third parties for loss or damage to or destruction
        of or
        other involuntary conversion of any kind or nature of any or all of the other
        collateral and any indemnities, warranties and guaranties payable by reason
        of
        loss or damage to or otherwise with respect to any of the foregoing
        items.

       

      5.2
        Perfection
        of Security Interest.
        Each
        Borrower irrevocably and unconditionally authorize Lender (or its agent)
        to file
        at any time and from time to time such financing statements and other
        instruments and documents with respect to the Collateral naming Lender or
        its
        designee as the secured party and Borrower as debtor, as Lender may require,
        and
        including any other information with respect to a Borrower or otherwise required
        by (a) Article 9 of the Uniform Commercial Code of such jurisdiction as Lender
        may determine and (b) other applicable laws of such jurisdictions as Lender
        may
        determine, together with any amendments and continuations with respect thereto,
        which authorization shall apply to all financing statements and other
        instruments and documents filed on, prior to or after the date hereof. Each
        Borrower hereby ratifies and approves all financing statements and other
        instruments and documents naming Lender or its designee as secured party
        and
        Borrower as debtor with respect to the Collateral (and any amendments with
        respect to such financing statements and other instruments and documents)
        filed
        by or on behalf of Lender prior to the date hereof and ratify and confirm
        the
        authorization of Lender to file such financing statements and other instruments
        and documents (and amendments, if any). Each Borrower hereby authorizes Lender
        to adopt on behalf of Borrower any symbol required for authenticating any
        electronic filing. In the event that the description of the Collateral in
        any
        financing statement and other instruments and documents naming Lender or
        its
        designee as the secured party and Borrower as debtor includes assets and
        properties of Borrower that do not at any time constitute Collateral, whether
        hereunder, under any of the other Financing Agreements, or otherwise, the
        filing
        of such financing statement and other instruments and documents shall
        nonetheless be deemed authorized by Borrower to the extent of the Collateral
        included in such description and it shall not render the financing statements
        and other instruments and documents ineffective as to any of the Collateral
        or
        otherwise affect the financing statement as it applies to any of the Collateral.
        In no event shall Borrower at any time file, or permit or cause to be filed,
        any
        correction statement or termination statement with respect to any financing
        statement and other instruments and documents (or amendment or continuation
        with
        respect thereto) naming Lender or its designee as secured party and any Borrower
        as debtor.

      

      
        
          
          

        

        
          -42-

          
            

          

        

        
          
          

        

      

      Section
        6. Collection
        And Administration

      

      6.1 Borrower’s
        Loan Account.
        Lender
        shall maintain one or more loan account(s) on its books in which shall be
        recorded (a) all Loans, Letter of Credit Accommodations and other Obligations
        and the Collateral, (b) all payments made by or on behalf of each Borrower
        and
        (c) all other appropriate debits and credits as provided in this Agreement,
        including fees, charges, costs, expenses and interest. All entries in the
        loan
        account(s) shall be made in accordance with Lender's customary practices
        as in
        effect from time to time.

      

      6.2 Statements.
        Within
        ten (10) Business Days after the first day of the month, Lender shall render
        to
        Borrower each month a statement setting forth the balance in the Borrower’s loan
        account(s) maintained by Lender for Borrower pursuant to the provisions of
        this
        Agreement, including principal, interest, fees, costs and expenses. Each
        such
        statement shall be subject to subsequent adjustment by Lender but shall,
        absent
        manifest errors or omissions, be considered correct and deemed accepted by
        Borrower and conclusively binding upon Borrower as an account stated except
        to
        the extent that Lender receives a written notice from Borrower of any specific
        exceptions of Borrower thereto within thirty (30) days after the date such
        statement has been mailed by Lender. Until such time as Lender shall have
        rendered to Borrower a written statement as provided above, the balance in
        Borrower’s loan account(s) shall be presumptive evidence of the amounts due and
        owing to Lender by Borrower.

       

      6.3 Collection
        of Accounts.
        

      

      (a) At
        Lender’s request, Borrowers shall establish and maintain, at their expense,
        blocked accounts or lock boxes and related blocked accounts (in either case,
        "Blocked Accounts"), as Lender may specify, with such banks as are acceptable
        to
        Lender. Each Borrower shall promptly deposit and direct their respective
        account
        debtors, to directly remit all payments on Receivables, including Accounts
        and
        all payments constituting proceeds of Inventory, Equipment or other Collateral
        in the identical form in which such payments are made, whether by cash, check
        or
        other manner into such accounts as Lender may specify, which may be a Blocked
        Account or an account(s) of Lender (“Lender Accounts”). The banks at which the
        Blocked Accounts are established shall enter into an agreement, in form and
        substance satisfactory to Lender, providing that all items received or deposited
        in the Blocked Accounts are the property of Lender, that the depository bank
        has
        no lien upon, or right to setoff against, the Blocked Account(s) or Lender
        Account, the items received for deposit therein, or the funds from time to
        time
        on deposit therein and that the depository bank will wire, or otherwise
        transfer, in immediately available funds and in the Reference Currency on
        a not
        less than weekly basis all funds received or deposited into the Blocked Accounts
        to (i) such bank accounts of Lender as Lender may from time to time designate
        for such purpose in Lender’s discretion(“Payment Account[s]”) and (ii) in
        Lenders discretion, such bank accounts as Lender may from time to time designate
        for such purpose(which may or may not be an account of Lender) ("Intermediate
        Account)"). Lender will wire, or otherwise transfer, in immediately available
        funds and in the Reference Currency on a not less than weekly basis all funds
        received or deposited into the Lender Accounts to such bank accounts of Lender
        as Lender may from time to time designate for such purpose in Lender’s
        discretion(“Payment Account[s]”). The bank at which an Intermediate Account is
        established shall enter into an agreement, in form and substance satisfactory
        to
        Lender, providing that all items received or deposited in the Intermediate
        Account are the property of Lender and that the depository bank will wire,
        or
        otherwise transfer, in immediately available funds and in the Reference
        Currency, on a daily basis, all funds received or deposited into the
        Intermediate Account to such bank accounts of Lender as Lender may from time
        to
        time designate for such purpose (“Payment Account”). Borrowers agree that all
        payments made to such Blocked Accounts or Lender Accounts or other funds
        received and collected by Lender, whether on the Accounts or as proceeds
        of
        Inventory, Equipment or other Collateral or otherwise shall be the property
        of
        Lender.

       

      
        
          
          

        

        
          -43-

          
            

          

        

        
          
          

        

      

      (b) For
        purposes of calculating the amount of the Loans available to Borrowers, such
        payments will be applied (conditional upon final collection) to the Obligations
        on the Business Day of receipt by Lender of immediately available funds in
        the
        Reference Currency in the applicable Payment Account, provided such payments
        and
        notice thereof are received in accordance with Lender's usual and customary
        practices as in effect from time to time and within sufficient time to credit
        Borrowers’ loan account on such day, and if not, then on the next Business Day.
        For the purposes of calculating interest on the Obligations, payments or
        other
        funds received will be applied (conditional upon final collection) to the
        Obligations one(1) Business Day(s) following the date of receipt of immediately
        available funds by Lender in the applicable Payment Account provided such
        payments or other funds and notice thereof are received in accordance with
        Lender's usual and customary practices as in effect from time to time and
        within
        sufficient time to credit Borrowers’ loan account on such day, and if not, then
        on the next Business Day.

       

      (c) Each
        Borrower and all of their respective Subsidiaries and other Affiliates,
        shareholders, directors, employees or agents shall, acting as trustee for
        Lender, receive, as the property of Lender, any monies, checks, notes, drafts
        or
        any other payment relating to and/or proceeds of Accounts or other Collateral
        which come into their possession or under their control and immediately upon
        receipt thereof, shall deposit or cause the same to be deposited in the Blocked
        Accounts or Lender Accounts, as has been specified by Lender, or remit the
        same
        or cause the same to be remitted, in kind, to Lender. In no event shall the
        same
        be commingled with a Borrower’s own funds. Borrowers agree to reimburse Lender
        on demand for any amounts owed or paid to any bank at which a Blocked Account
        or
        Lender Account is established or any other bank or person involved in the
        transfer of funds to or from the Blocked Accounts or Lender Accounts arising
        out
        of Lender's payments to or indemnification of such bank or person. The
        obligation of Borrower to reimburse Lender for such amounts pursuant to this
        Section 6.3 shall survive the termination or non-renewal of this
        Agreement.

       

      6.4 Payments.
        All
        Obligations shall be payable to the Payment Account as provided in Section
        6.3
        or such other place as Lender may designate from time to time. Lender may
        apply
        payments received or collected from each Borrower or for the account of each
        Borrower (including the monetary proceeds of collections or of realization
        upon
        any Collateral) to such of the Obligations, whether or not then due, in such
        order and manner as Lender determines. At Lender's option, all principal,
        interest, fees, costs, expenses and other charges provided for in this Agreement
        or the other Financing Agreements may be charged directly to the loan account(s)
        of each Borrower. Borrowers shall make all payments to Lender on the Obligations
        free and clear of, and without deduction or withholding for or on account
        of,
        any setoff, counterclaim, defense, duties, taxes, levies, imposts, fees,
        deductions, withholding, restrictions or conditions of any kind. If after
        receipt of any payment of, or proceeds of Collateral applied to the payment
        of,
        any of the Obligations, Lender is required to surrender or return such payment
        or proceeds to any Person for any reason, then the Obligations intended to
        be
        satisfied by such payment or proceeds shall be reinstated and continue and
        this
        Agreement shall continue in full force and effect as if such payment or proceeds
        had not been received by Lender. Borrower shall be liable to pay to Lender,
        and
        do hereby indemnify and hold Lender harmless for the amount of any payments
        or
        proceeds surrendered or returned. This Section 6.4 shall remain effective
        notwithstanding any contrary action which may be taken by Lender in reliance
        upon such payment or proceeds. This Section 6.4 shall survive the payment
        of the
        Obligations and the termination or non-renewal of this Agreement.
        Without
        limiting the forgoing all payments made by any Borrower un-der this Agreement,
        and the other Financing Agreements shall be made without reduction for or
        on
        account of, any pre-sent or future income or other taxes, levies, imposts,
        duties, charges, fees, deductions, withholdings, now or here-after imposed,
        levied, collected, withheld or assessed by any country (or by any political
        subdivision or taxing authority thereof or therein, including England) other
        than taxes of the Commonwealth of Puerto Rico measured by or based upon the
        overall net income of the Lender (such taxes being called "Taxes"). If any
        Taxes
        are required to be withheld from any amounts payable to the Lender hereunder
        or
        any other Financing Agreement, the amounts so payable to the Lender shall
        be
        increased to the extent necessary to yield to the Lender (after payment of
        all
        Taxes) interest or any such other amounts payable hereunder at the rates
        or in
        the amounts specified in this Agreement or such other Financing Agreement.
        It is
        understood and agreed that the Borrowers shall be obligated to so "gross-up"
        with respect to payments to the Lender under or in connection with the Loans
        and
        Letter of Credit Accommodations even though a Borrower claims an exemption
        from
the
        payment or withholding of Taxes imposed under the laws of England or any
        governmental agency or body thereof with respect to such payments to the
        Lender.
        Whenever any Tax is payable by a Borrower, as promptly as possible thereafter,
        such Borrower shall send to the Lend-er, a certified copy of an original
        official receipt showing payment thereof. If a Borrower fails to pay any
        Taxes
        when due to the appropriate taxing authority or fails to remit to the Lender
        the
        required re-ceipts or other required documentary evidence, Borrowers shall
        indemnify the Lender for any incremental taxes, interest or penalties that
        may
        become payable by the Lender as a result of any such failure. If
        any
        Taxes are required to be withheld from any amounts payable to the Lender
        hereunder or any other Financing Agreement,
        Lender
        may, but shall not be required to, on behalf of Borrowers, increase
        the amounts payable to the Lender to the extent necessary to yield to Lender
        (after payment of all Taxes) interest or any such other amounts payable
        hereunder at the rates or in the amounts specified in this Agreement or other
        Financing Agreement and Lender may, on behalf of the Borrowers, so "gross-up"
        payments to the Lender under or in connection with the Loans and Letter of
        Credit Accommodations. 

      

      
        
          
          

        

        
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      6.5 Authorization
        to Make Loans.
        Lender
        is authorized to make the Loans and provide Letter of Credit Accommodations
        based upon telephonic or other instructions received from anyone purporting
        to
        be an officer of a Borrower or other authorized person or, at the discretion
        of
        Lender, if such Loans are necessary to satisfy any Obligations. All requests
        for
        Loans and Letter of Credit Accommodations, hereunder shall specify the date
        on
        which the requested advance is to be made or established (which day shall
        be a
        Business Day) and the amount of the requested Loan and Letter of Credit
        Accommodation. Requests received before 11:00 a.m. Atlantic Standard Time
        on a
        Business Day shall be processed on that day. Requests received after 11:00
        a.m.
        Atlantic Standard time on any day shall be deemed to have been made as of
        the
        opening of business on the immediately following business day. All Loans
        and
        Letter of Credit Accommodations under this Agreement shall be conclusively
        presumed to have been made to, and at the request of and for the benefit
        of,
        Borrower when deposited to the credit of a Borrower or otherwise disbursed
        or
        established in accordance with the instructions of Borrowers’ Agent or in
        accordance with the terms and conditions of this Agreement.

      

      6.6 Use
        of
        Proceeds.
        Borrowers shall use the initial proceeds of the Loans provided by Lender
        to
        Borrowers hereunder only for (a) payments (i) by Borrowers to each of the
        persons listed in the disbursement direction letter furnished by Borrowers
        to
        Lender on or about the date hereof, and (ii) by Inyx EU to the Seller in
        respect
        of the purchase price for the Purchased Stock under the Purchase Agreements,
        (b)
        working capital and (c) costs, expenses and fees in connection with the
        preparation, negotiation, execution and delivery of this Agreement and the
        other
        Financing Agreements, all in the amounts shown on Schedule 6.6 hereto. All
        other
        Loans and Letter of Credit Accommodations made by Lender to Borrowers pursuant
        to the provisions hereof shall be used by Borrowers only for general operating,
        working capital and other proper corporate purposes of Borrowers not otherwise
        prohibited by the terms hereof. None of the proceeds will be used, directly
        or
        indirectly, for the purpose of purchasing or carrying any margin security
        or for
        the purposes of reducing or retiring any indebtedness which was originally
        incurred to purchase or carry any margin security or for any other purpose
        which
        might cause any of the Loans to be considered a "purpose credit" within the
        meaning of Regulation U of the Board of Governors of the Federal Reserve
        System,
        as amended. Lender may, on behalf of and for the account of Borrower, pay
        directly to the Seller and to the other Persons specified in the disbursement
        direction letter, the respective amounts payable to them, pursuant to such
        letter and this Section 6.6.

      

      6.7
        Reference
        Currency.
        (a) All
        Loans shall be made and disbursed and all Obligations shall be payable and
        paid,
        in the Reference Currency.

       

      (b)
        All
        Revolving Loans otherwise available to Borrower pursuant to the lending formulas
        and subject to the Maximum Credit and other applicable limits hereunder shall
        be
        subject to Lender's continuing right to establish and revise Currency Reserves.
        

       

      
        
          
          

        

        
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      (c)
        All
        risks of currency devaluation, other fluctuations in exchange rates or the
        imposition of any exchange controls will be borne by Borrower and Borrower
        shall
        be liable to pay to Lender, and does hereby indemnify and hold Lender harmless
        for any loss or damage resulting from any devaluation of currency (including
        the
        amount thereof), any other fluctuations in exchange rates and/or the imposition
        of any exchange controls affecting the Loans disbursed or the repayments
        thereof, as provided herein.

       

      (d)
        Deposits to any Blocked Account or Lender Account in currency other than
        the
        Reference Currency shall be converted to the Reference Currency, by purchase
        of
        the Reference Currency at Borrowers’ cost and expense and at the rate of
        exchange, then utilized by the bank effecting such conversion.

      

      Section
        7. Collateral
        Reporting And Covenants.

      

      7.1 Collateral
        Reporting.
        Borrowers shall provide Lender with the following documents in a form
        satisfactory to Lender: (a) on a regular basis as required by Lender, a schedule
        of Accounts, sales made, credits issued and cash received; (b) on a monthly
        basis or more frequently as Lender may request, (i) perpetual inventory reports
        or other inventory reports acceptable to Lender, (ii) inventory reports by
        category, (iii) aging of accounts payable, (iv) a report of any Inventory
        shrinkage or Equipment which has been stolen, and (v) a report of any Equipment
        which has been sold, exchanged or otherwise transferred or disposed of, (c)
        upon
        Lender's request, (i) copies of customer statements and credit memos, remittance
        advices and reports, and copies of deposit slips and bank statements, (ii)
        copies of shipping and delivery documents, and (iii) copies of purchase orders,
        invoices and delivery documents for Inventory and Equipment acquired by
        Borrower; (d) aging of accounts receivable on a weekly basis or more frequently
        as Lender may request; and (e) such other reports as to the Collateral as
        Lender
        shall request from time to time. If any of Borrower's records or reports
        of the
        Collateral are prepared or maintained by an accounting service, contractor,
        shipper or other agent, Borrower hereby irrevocably authorize such service,
        contractor, shipper or agent to deliver such records, reports, and related
        documents to Lender and to follow Lender's instructions with respect to further
        services at any time that an Event of Default exists or has occurred and
        is
        continuing.

      

      7.2 Accounts
        Covenants.

       

      (a)
        Borrowers shall notify Lender promptly of: (i) any material delay in a
        Borrower’s performance of any of its obligations to any account debtor or the
        assertion of any claims, offsets, defenses or counterclaims by any account
        debtor, or any disputes with account debtors, or any settlement, adjustment
        or
        compromise thereof, (ii) all material adverse information relating to the
        financial condition of any account debtor and (iii) any event or circumstance
        which, to Borrower’s knowledge would cause Lender to consider any then existing
        Accounts as no longer constituting Eligible Accounts. No credit, discount,
        allowance or extension or agreement for any of the foregoing shall be granted
        to
        any account debtor without Lender's consent, except in the ordinary course
        of
        Borrower’s business in accordance with practices and policies previously
        disclosed in writing to Lender. So long as no Event of Default exists or
        has
        occurred and is continuing, Borrower shall have the right to settle, adjust
        or
        compromise any claim, offset, counterclaim or dispute with any account debtor.
        At any time that an Event of Default exists or has occurred and is continuing,
        Lender shall, at its option, have the exclusive right to settle, adjust or
        compromise any claim, offset, counterclaim or dispute with account debtors
        or
        grant any credits, discounts or allowances.

       

      
        
          
          

        

        
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      (b)
        Without limiting the obligation of Borrowers to deliver any other information
        to
        Lender, Borrower shall promptly report to Lender any return of Inventory
        by any
        one account debtor if the inventory so returned in such case has a value
        in
        excess of $10,000. At any time that Inventory is returned, reclaimed or
        repossessed, the Account (or portion thereof) which arose from the sale of
        such
        returned, reclaimed or repossessed Inventory shall not be deemed an Eligible
        Account. In the event any account debtor returns Inventory when an Event
        of
        Default exists or has occurred and is continuing, Borrower shall, upon Lender's
        request, (i) hold the returned Inventory in trust for Lender, (ii) segregate
        all
        returned Inventory from all of its other property, (iii) dispose of the returned
        Inventory solely according to Lender's instructions, and (iv) not issue any
        credits, discounts or allowances with respect thereto without Lender's prior
        written consent.

       

      (c)
        With
        respect to each Account: (i) the amounts shown on any invoice delivered to
        Lender or schedule thereof delivered to Lender shall be true and complete,
        (ii)
        no payments shall be made thereon except payments immediately delivered to
        Lender pursuant to the terms of this Agreement, (iii) no credit, discount,
        allowance or extension or agreement for any of the foregoing shall be granted
        to
        any account debtor except as reported to Lender in accordance with this
        Agreement and except for credits, discounts, allowances or extensions made
        or
        given in the ordinary course of a Borrower’s business in accordance with
        practices and policies previously disclosed to Lender, (iv) there shall be
        no
        setoffs, deductions, contras, defenses, counterclaims or disputes existing
        or
        asserted with respect thereto except as reported to Lender in accordance
        with
        the terms of this Agreement and (v) none of the transactions giving rise
        thereto
        will violate any applicable Commonwealth, State or Federal laws or regulations,
        all documentation relating thereto will be legally sufficient under such
        laws
        and regulations and all such documentation will be legally enforceable in
        accordance with its terms.

       

      (d)
        Lender shall have the right at any time or times, in Lender's name or in
        the
        name of a nominee of Lender, to verify the validity, amount or any other
        matter
        relating to any Account or other Collateral, by mail, telephone, facsimile
        transmission or otherwise.

       

      (e)
        Borrowers shall deliver or cause to be delivered to Lender, with appropriate
        endorsement and assignment, with full recourse to Borrowers, all chattel
        paper
        and instruments which a Borrower now owns or may at any time acquire immediately
        upon a Borrower’s receipt thereof, except as Lender may otherwise
        agree.

       

      (f)
        Lender may, at any time or times that an Event of Default exists or has occurred
        and is continuing, (i) notify any or all account debtors or other obligors
        in
        respect thereof that the Receivables, including the Accounts have been assigned
        to Lender and that Lender has a security interest therein and Lender may
        direct
        any or all accounts debtors and other obligors to make payment of thereof
        directly to Lender, (ii) extend the time of payment of, compromise, settle
        or
        adjust for cash, credit, return of merchandise or otherwise, and upon any
        terms
        or conditions, any and all Receivables including the Accounts or other
        obligations included in the Collateral and thereby discharge or release the
        account debtor or any other party or parties in any way liable for payment
        thereof without affecting any of the Obligations, (iii) demand, collect or
        enforce payment of any Receivables, including the Accounts or such other
        obligations, but without any duty to do so, and Lender shall not be liable
        for
        its failure to collect or enforce the payment thereof nor for the negligence
        of
        its agents or attorneys with respect thereto and (iv) take whatever other
        action
        Lender may deem necessary or desirable for the protection of its interests.
        At
        any time that an Event of Default exists or has occurred and is continuing,
        at
        Lender's request, all invoices and statements sent to any account debtor
        shall
        state that the Accounts and such other obligations have been assigned to
        Lender
        and are payable directly and only to Lender and Borrowers shall deliver to
        Lender such originals of documents evidencing the sale and delivery or lease
        of
        goods or the performance of services giving rise to any Accounts as Lender
        may
        require. 

      

      
        
          
          

        

        
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      7.3
        Inventory
        Covenants.
        With
        respect to the Inventory: (a) Borrowers shall at all times maintain inventory
        records reasonably satisfactory to Lender, keeping correct and accurate records
        itemizing and describing the kind, type, quality and quantity of Inventory,
        each
        Borrower's cost therefor and daily or weekly withdrawals therefrom and additions
        thereto; (b) Borrowers shall conduct (i) a physical count of the Inventory
        at
        least once each year, but at any time or times as Lender may request on or
        after
        an Event of Default, and (ii) test counts of inventory at any time or times
        as
        Lender may request utilizing a third party service therefore designated by
        Lender, and promptly following such physical inventory and test counts of
        inventory shall supply Lender with a report in the form and with such
        specificity as may be reasonably satisfactory to Lender concerning such physical
        count and test counts; (c) Borrowers shall not remove any Inventory from
        the
        locations set forth or permitted herein, without the prior written consent
        of
        Lender, except for sales of Inventory in the ordinary course of a Borrower’s
        business and except to move Inventory directly from one location set forth
        or
        permitted herein to another such location; (d) upon Lender's request, Borrowers
        shall, at there expense, no more than four times in any twelve (12) month
        period, but at any time or times as Lender may request on or after an Event
        of
        Default, deliver or cause to be delivered to Lender written reports or
        appraisals as to the Inventory in form, scope and methodology acceptable
        to
        Lender and by an appraiser acceptable to Lender, addressed to Lender or upon
        which Lender is expressly permitted to rely; (e) Borrowers shall produce,
        use,
        store and maintain the Inventory with all reasonable care and caution and
        in
        accordance with applicable standards of any insurance and in conformity with
        applicable laws (including the requirements of the Federal Fair Labor Standards
        Act of 1938, as amended and all rules, regulations and orders related thereto);
        (f) Borrowers shall assume all responsibility and liability arising from
        or
        relating to the production, use, sale or other disposition of the Inventory;
        (g)
        Borrowers shall not sell Inventory to any customer on approval, or any other
        basis which entitles the customer to return or may obligate a Borrower to
        repurchase such Inventory; (h) Borrowers shall keep the Inventory in good
        and
        marketable condition, and (i) Borrower shall not, without prior written notice
        to Lender, acquire or accept any Inventory on consignment or approval.

       

      7.4
        Equipment
        Covenants.
        With
        respect to the Equipment: (a) upon Lender's request, Borrowers shall, at
        their
        expense, at any time or times as Lender may request on or after an Event
        of
        Default, deliver or cause to be delivered to Lender written reports or
        appraisals as to the Equipment in form, scope and methodology acceptable
        to
        Lender and by an appraiser acceptable to Lender; (b) Borrowers shall keep
        the
        Equipment in good order, repair, running and marketable condition (ordinary
        wear
        and tear excepted); (c) Borrowers shall use the Equipment with all reasonable
        care and caution and in accordance with applicable standards of any insurance
        and in conformity with all applicable laws; (d) the Equipment is and shall
        be
        used in Borrowers’ business and not for personal, family, household or farming
        use; (e) Borrowers shall not remove any Equipment from the locations set
        forth
        or permitted herein, except to the extent necessary to have any Equipment
        repaired or maintained in the ordinary course of the business of a Borrower
        or
        to move Equipment directly from one location set forth or permitted herein
        to
        another such location and except for the movement of motor vehicles used
        by or
        for the benefit of a Borrower in the ordinary course of business; (f) the
        Equipment is now and shall remain personal property and Borrowers shall not
        permit any of the Equipment to be or become a part of or permanently affixed
        to
        real property; and (g) Borrowers assume all responsibility and liability
        arising
        from the use of the Equipment. Borrowers shall deliver to Lender within five(5)
        Business Days of the close of each month a schedule of all Equipment at the
        Ashton Real Property used by any Borrower that has been furnished by a third
        party for use by such Borrower in connection with a Manufacturing Contract
        or
        License and is not owned by such Borrower, in such detail, containing such
        information and in such form as shall be satisfactory to Lender and accompanied
        by a certificate of an officer of Borrowers, in form and substance satisfactory
        to Lender.

      

      
        
          
          

        

        
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        7.5
          Trade
          Name Covenants.
          With
          respect to its trade names and trademarks (a) each Borrower shall at all
          times
          maintain its registered trade names and trademarks, except for trade names
          and
          trademarks no longer used or useful in such Borrower’s business; (b) Borrowers
          shall not at any time, grant any person, a license except for trade names
          and
          trademarks no longer used or useful in a Borrower’s business, to use any trade
          name or trademarks; (c) upon Lender’s request, Borrowers’ shall, at their
          expense, no more than twice in any twelve (12) months period, but at any
          time or
          times as Lender may request on or after an Event of Default, deliver or
          cause to
          be delivered to Lender written reports or appraisals as to its trade names
          and
          trademarks in form, scope and methodology acceptable to Lender and by an
          appraisers acceptable to Lender, addressed to Lender or upon which Lender
          is
          expressly permitted to rely; and (d) a Borrower shall not use its trade
          names or
          trademarks to sell any assets or property other than assets and property
          in a
          business classification similar to that currently being carried on by such
          Borrower.

      

       

      7.6 Power
        of Attorney.
        Each
        Borrower hereby irrevocably designates and appoints Lender (and all persons
        designated by Lender) as such Borrower’s true and lawful attorney-in-fact, and
        authorizes Lender, in Borrower’s or Lender’s name, to: (a) at any time an Event
        of Default or event which with notice or passage of time or both would
        constitute an Event of Default exists or has occurred and is continuing (i)
        demand payment on Accounts or chattel paper or other proceeds of Inventory
        or
        other Collateral, (ii) enforce payment of Receivables including Accounts
        by
        legal proceedings or otherwise, (iii) enforce and exercise all of Borrower’s
        rights and remedies to collect any Receivables including Accounts or other
        Collateral, (iv) sell or assign any Receivable, including any Accounts upon
        such
        terms, for such amount and at such time or times as the Lender deems advisable,
        (v) settle, adjust, compromise, extend or renew any Receivable, including
        any
        Account or any Chattel Paper (vi) discharge and release any Receivable,
        including any Account, (vii) prepare, file and sign such Borrower’s name on any
        proof of claim in bankruptcy or other similar document against an account
        debtor, (viii) notify the post office authorities to change the address for
        delivery of Borrower's mail to an address designated by Lender, and open
        and
        dispose of all mail addressed to Borrower, and (ix) do all acts and things
        which
        are necessary, in Lender's determination, to fulfill Borrower’s obligations
        under this Agreement and the other Financing Agreements and (b) at any time
        to
        (i) take control in any manner of any item of payment or proceeds thereof,
        (ii)
        have access to any lockbox or postal box into which any Borrower's mail is
        deposited, (iii) endorse any Borrower's name upon any items of payment or
        proceeds thereof and deposit the same in the Lender's account for application
        to
        the Obligations, (iv) endorse any Borrower's name upon any chattel paper,
        document, instrument, invoice, or similar document or agreement relating
        to any
        Receivables including Account or any goods pertaining thereto or any other
        Collateral, (v) sign any Borrower's name on any verification of Accounts
        and
        notices thereof to account debtors and (vi) execute in any Borrower's name
        and
        file any UCC financing statements or amendments thereto. Borrowers hereby
        release Lender and its officers, employees and designees from any liabilities
        arising from any act or acts under this power of attorney and in furtherance
        thereof, whether of omission or commission, except as a result of Lender's
        own
        gross negligence or willful misconduct as determined pursuant to a final
        non-appealable order of a court of competent jurisdiction.

      

      
        
          
          

        

        
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      7.7 Right
        to Cure.
        Lender
        may, at its option, (a) cure any default by a Borrower under any agreement
        with
        a third party or pay or bond on appeal any judgment entered against Borrower,
        (b) discharge taxes, liens, security interests or other encumbrances at any
        time
        levied on or existing with respect to the Collateral, (c) pay or bond on
        appeal
        any judgment entered against a Borrower and (d) pay any amount, incur any
        expense or perform any act which, in Lender's judgment, is necessary or
        appropriate to preserve, protect, insure or maintain the Collateral and the
        rights of Lender with respect thereto. Lender may add any amounts so expended
        to
        the Obligations and charge Borrowers’ accounts therefor, such amounts to be
        repayable by Borrowers on demand. Lender shall be under no obligation to
        effect
        such cure, payment or bonding and shall not, by doing so, be deemed to have
        assumed any obligation or liability of any Borrower. Any payment made or
        other
        action taken by Lender under this Section shall be without prejudice to any
        right to assert an Event of Default hereunder and to proceed
        accordingly.

      

      7.8 Access
        to Premises.
        From
        time to time as requested by Lender, at the cost and expense of Borrowers
        (a)
        Lender or its designee shall have complete access to all of Borrowers’ premises
        during normal business hours and after notice to Borrowers or at any time
        and
        without notice to Borrowers if an Event of Default exists or has occurred
        and is
        continuing, for the purposes of inspecting, verifying and auditing the
        Collateral and all of Borrower’s books and records, including the Records, and
        (b) Borrowers shall promptly furnish to Lender such copies of such books
        and
        records or extracts therefrom as Lender may request, and (c) use during normal
        business hours such of a Borrower’s personnel, equipment, supplies and premises
        as may be reasonably necessary for the foregoing and if an Event of Default
        exists or has occurred and is continuing for the collection of Accounts and
        realization of other Collateral.

      

       

      
        
          
          

        

        
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      7.9
        Chattel
        Paper Covenants.
        (a)
        Each Borrower represent and warrant to Lender that Borrower does not have
        any
        chattel paper (whether tangible or electronic) or instruments as of the date
        hereof, except as set forth in Schedule 7.9 hereto. In the event that Borrower
        shall be entitled to or shall receive any chattel paper or instrument after
        the
        date hereof, Borrower shall promptly notify Lender thereof in writing. Promptly
        upon the receipt thereof by or on behalf of Borrower (including by any agent
        or
        representative), Borrower shall deliver, or cause to be delivered to Lender,
        all
        tangible chattel paper and instruments that Borrower has or may at any time
        acquire, accompanied by such instruments of transfer or assignment duly executed
        in blank as Lender may from time to time specify in each case except as Lender
        may otherwise agree. At Lender’s option, Borrower shall, and Lender may at any
        time on behalf of Borrower, cause the original of any such instrument or
        chattel
        paper to be conspicuously marked in a form and manner acceptable to Lender
        with
        the following legend referring to chattel paper or instruments as applicable:
        “This ______________________________________ is subject to the security interest
        of Westernbank Puerto Rico and any sale, transfer, assignment or encumbrance
        of
        this ___________________________________________ violates the rights of such
        secured party”.

       

      (b)
        In
        the event that Borrower shall at any time hold or acquire an interest in
        any
        electronic chattel paper or any “transferable record” (as such term is defined
        in Section 201 of the Federal Electronic Signatures in Global and National
        Commerce Act or in Section 16 of the Uniform Electronic Transactions Act
        as in
        effect in any relevant jurisdiction), Borrower shall promptly notify Lender
        thereof in writing. Promptly upon Lenders request, Borrower shall take, or
        cause
        to be taken, such actions as Lender may request to give Lender control of
        such
        electronic chattel paper under Section 9-105 of the UCC and control of such
        transferable record under Section 201 of the Federal Electronic Signatures
        in
        Global and National Commence Act or, as the case may be, Section 16 of the
        Uniform Electronic Transactions Act, as in effect in such
        jurisdiction.

       

      7.10
        Letters
        of Credit.
        Borrower represents and warrants to Lender that Borrower is not the beneficiary
        or otherwise entitled to any right to payment under any letter of credit,
        banker’s acceptance or similar instrument as of the date hereof. In the event
        that Borrower shall be entitled to or shall receive any right to payment
        under
        any Letter of Credit banker’s acceptance or any similar instrument, whether as
        beneficiary thereof or otherwise after the date hereof, Borrower shall promptly
        notify Lender thereof in writing. Borrower shall immediately, as Lender may
        specify, either (i) deliver, or cause to be delivered to Lender, with respect
        to
        any such letter of credit, banker’s acceptance or similar instrument, the
        written agreement of the issuer and any other nominated person obligated
        to make
        any payment in respect thereof (including any confirming or negotiating bank),
        in form and substance satisfactory to Lender consenting to the assignment
        of the
        proceeds of the letter of credit to Lender by Borrower and agreeing to make
        all
        payment thereon directly to Lender or as Lender may otherwise direct or (ii)
        cause Lender to become, at such person’s expense, the transferee beneficiary of
        the letter of credit, banker’s acceptance or similar instrument (as the case may
        be.

      

      
        
          
          

        

        
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      7.11
        Deposit
        Accounts.
        Borrowers represent and warrant to Lender that Borrowers do not have any
        deposit
        accounts as of the date hereof, except as set forth in Schedule 8.8 hereto.
        Borrowers shall not, directly or indirectly, after the date hereof open,
        establish or maintain any deposit account unless each of the following
        conditions is satisfied: (i) Lender shall have received not less than fifteen
        (15) Business Days prior written notice of the intention of a Borrower to
        open
        or establish such account which notice shall specify in reasonable detail
        and
        specificity acceptable to Lender the name of the account, the owner of the
        account, the name and address of the bank at which such account is to be
        opened
        or established, the individual at such bank with whom such Lender is dealing
        and
        the purpose of the account and Lender shall have consented thereto in writing,
        (ii) the bank where such account is opened or maintained shall be reasonably
        acceptable to Lender and (iii) on or before the opening of such deposit account,
        Borrowers shall as Lender may specify, either (A) deliver to ender a Deposit
        Account Control Agreement in form and substance satisfactory to Lender with
        respect to such deposit account duly authorized, executed and delivered by
        such
        Person and the bank at which such deposit account is opened and maintained
        or
        (B) arrange for Lender to become the customer of the bank with respect to
        the
        deposit account on terms and conditions acceptable to lender. The terms of
        this
        subsection 7.11 shall not apply to deposit accounts specifically and exclusively
        used for payroll, payroll taxes and other employee wage and benefit payments
        to
        or for the benefit of a Borrower’s salaried employees.

      

      7.12
        Investment
        Property.
        Borrowers represent and warrant to Lender that Borrowers’ do not own or hold,
        directly or indirectly, beneficially or as record owner or both, any investment
        property, as of the date hereof, or have any investment account, securities
        account, commodity account or other similar account with any bank or other
        financial institution or other securities intermediary or commodity intermediary
        as of the date hereof, in each case except as set forth in Schedule 7.12
        hereto.
        In the event that any Borrower shall be entitled to or shall at any time
        after
        the date hereof hold or acquire any certificated securities, Borrowers shall
        promptly endorse, assign and deliver the same to Lender, accompanied by such
        instruments of transfer or assignment duly executed in blank as Lender may
        from
        time to time specify. If any securities now owned or hereafter acquired by
        Borrowers are uncertificated and are issued to a Borrower or its nominee
        directly by the issuer thereof, Borrower shall immediately notify Lender
        thereof
        and shall as Lender may specify, either (i) cause the issuer to agree to
        comply
        with instructions from Lender as to such securities, without further consent
        of
        any of Borrowers or such nominee, or (ii) arrange for Lender to become the
        registered owner of the securities. Borrowers shall not, directly or indirectly,
        after the date hereof open, establish or maintain any investment account,
        securities account, commodity account or any other similar account (other
        than a
        deposit account) with any securities intermediary or commodity intermediary
        unless each of the following conditions is satisfied (i) Lender shall have
        received not less than fifteen (15) Business Days prior written notice of
        the
        intention of Borrowers to open or establish such account which notice shall
        specify in reasonable detail and specificity acceptable to Lender the name
        of
        the account, the owner of the account, the name and address of the securities
        intermediary or commodity intermediary at which such account is to be opened
        or
        established, the individual at such intermediary with whom a Borrowers is
        dealing and the purpose of the account and Lender shall have consented thereto
        in writing, (ii) the securities intermediary or commodity intermediary (as
        the
        case may be) where such account is opened or maintained shall be acceptable
        to
        Lender, and (iii) on or before the opening of such investment account,
        securities account or other similar account with a securities intermediary
        or
        commodity intermediary, such person shall as Lender may specify, either (A)
        execute and deliver, and cause to be executed and delivered to Lender, a
        Pledge
        Agreement and an Investment Property Control Agreement in form and substance
        satisfactory to Lender with respect thereto duly authorized, executed and
        delivered by Borrowers and such securities intermediary or commodity
        intermediary or (B) arrange for Lender to become the entitlement holder with
        respect to such investment property on terms and conditions acceptable to
        Lender. 

      

      
        
          
          

        

        
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      7.13
        Tort
        Claims.
        Borrower
        represents and warrants to Lender that Borrower does not have any commercial
        tort claims as of the date hereof, except as set forth on Schedule 7.11 hereto.
        In the event that Borrower shall at any time after the date hereof have any
        commercial tort claims Borrower shall promptly notify Lender thereof in writing,
        which notice shall (i) set forth in reasonable detail the basis for and nature
        of such commercial tort claim and (ii) include the express grant by Borrower
        to
        Lender of a security interest in such commercial tort claim (and the proceeds
        thereof). In the event that such notice does not include such grant of a
        security interest, the sending thereof by Borrower to Lender shall be deemed
        to
        constitute such grant to Lender. Upon the sending of such notice, any commercial
        tort claim described therein shall constitute part of the Collateral and
        shall
        be deemed included therein. Without limiting the authorization of Lender
        provided herein or otherwise arising by the execution by Borrower of this
        Agreement or any of the other Financing Agreements, Lender is hereby irrevocably
        authorized from time to time and at any time to file such financing statements
        naming Lender or its designee as secured party and Borrower as debtor, or
        any
        amendments to any financing statements, covering any such commercial tort
        claim
        as Collateral. In addition, Borrower shall promptly upon request by Lender,
        execute and deliver, or cause to be executed and delivered, to Lender such
        other
        agreements, documents and instruments as Lender may require in connection
        with
        such commercial tort claim.

      

      7.14
        Third
        Party Possession.
        Borrowers represent and warrant to Lender that no Borrower has any goods,
        documents of title or other collateral in the custody, control or possession
        of
        a third party as of the date hereof, except for goods located in England
        in
        transit to a location of a Borrower permitted herein in the ordinary course
        of
        business of such Borrower in the possession of the carrier transporting such
        goods. In the event that any goods, documents of title or other collateral
        are
        at any time after the date hereof in the custody, control or possession of
        any
        other person or such carriers, Borrowers shall promptly notify Lender thereof
        in
        writing; provided that,
        as to
        such carriers, Borrowers need only notify Lender on an aggregate basis. Promptly
        upon Lender’s request, Borrowers shall deliver a Collateral Access Agreement in
        form and substance satisfactory to Lender, duly authorized, executed and
        delivered by any such person and the applicable Borrower.

      

      7.15
        Additional
        Actions.
        Borrowers shall take any other actions reasonably requested by Lender from
        time
        to time to cause the attachment, perfection and first priority of, and the
        ability of Lender to enforce, the security interest of Lender in any and
        all of
        the Collateral, including, without limitation, (i) executing, delivering
        and,
        where appropriate, filing, financing statements and other instruments or
        documents and amendments relating thereto under the UCC or other applicable
        law,
        to the extent, if any, a Borrower’s signature thereon is required therefor, (ii)
        causing Lender’s name to be noted as secured party on any certificate of title
        for a titled good if such notation is a condition to attachment, perfection
        or
        priority of, or ability of Lender to enforce, the security interest of Lender
        in
        such Collateral, (iii) complying with any provision of any statute, regulation
        or treaty of the United States, any State of the United States, Puerto Rico
        and
        England or any other country or the European Union as to any Collateral if
        compliance with such provision is a condition to attachment, perfection or
        priority of, or ability of Lender to enforce, the security interest of Lender
        in
        such Collateral, (iv) obtaining the consents and approvals of any governmental
        authority or third party, including, without limitation, any consent of any
        licensor, lessor or other person obligated on Collateral, and taking all
        actions
        required by any earlier versions of the UCC or by other law, as applicable
        in
        any relevant jurisdiction and (v) transferring any and all deposit accounts
        and
        investment property to a financial institution or account specified by
        Lender.

      

      
        
          
          

        

        
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      Section
        8. Representations
        And Warranties.

       

      Borrowers
        hereby represent and warrant to Lender the following (which shall survive
        the
        execution and delivery of this Agreement), the truth and accuracy of which
        are a
        continuing condition of the making of Loans and providing Letter of Credit
        Accommodations by Lender to Borrowers:

      

      8.1
        Corporate
        Existence, Power And Authority; Subsidiaries.
        Each
        Borrower is a limited company (corporation), duly organized, validly existing
        and registered under the laws of England And Wales. Each Borrower is duly
        qualified as a foreign corporation in good standing in all jurisdictions
        where
        the nature and extent of the business transacted by it or the ownership of
        assets makes such qualification necessary, except for those jurisdictions
        in
        which the failure to so qualify would not have a Material Adverse Effect.
        The
        execution, delivery and performance of this Agreement, the other Financing
        Agreements and the transactions contemplated hereunder and thereunder (a)
        are
        all within each Borrower’s corporate powers, (b) have been duly authorized, (c)
        are not in contravention of law or the terms of any Borrower’s certificate of
        incorporation, memorandum and articles of association , or other organizational
        documentation, or any indenture, agreement or undertaking to which any Borrower
        is a party or by which any Borrower or its property is bound and (d) except
        for
        those arising pursuant to the Financing Agreements will not result in the
        creation or imposition of, or require or give rise to any obligation to grant,
        any lien, security interest, charge or other encumbrance upon any property
        of
        Borrower. This Agreement and the other Financing Agreements constitute legal,
        valid and binding obligations of Borrower enforceable in accordance with
        their
        respective terms. 

      

      8.2 Financial
        Statements; No Material Adverse Change.
        All
        financial statements relating to any Borrower or its Affiliates which have
        been
        or may hereafter be delivered by Borrowers or any of their Affiliates to
        Lender
        have been prepared in accordance with GAAP and fairly present the financial
        condition and the results of operations of Borrower and such Affiliates as
        of
        the dates and for the periods set forth therein. Except as disclosed in any
        interim financial statements furnished by Borrowers or any of their Affiliates
        to Lender prior to the date of this Agreement, there has been no material
        adverse change in the assets, liabilities, properties and condition, financial
        or otherwise, of any Borrower or any of its Affiliates since the date of
        the
        most recent audited financial statements furnished by to Lender prior to
        the
        date of this Agreement.

      

      8.3 Chief
        Executive Office; Collateral Locations.
        The
        chief executive office of each Borrower and such Person’s Records concerning
        Accounts are located only at the address set forth below on the signature
        page
        hereto and its only other places of business and the only other locations
        of
        Collateral, if any, are the addresses set forth in the Information Certificate.
        The Information Certificate correctly identifies any of such locations which
        are
        not owned by a Borrower and sets forth the owners and/or operators thereof
        and
        to the best of Borrowers’ knowledge, the holders of any mortgages on such
        locations.

      
 

      
        
          
          

        

        
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      8.4 Priority
        of Liens; Title to Properties.
        The
        security interests and liens granted to Lender under this Agreement and the
        other Financing Agreements constitute valid and perfected first priority
        liens
        and security interests in and upon the Collateral subject only to those non
        material liens indicated on Part 1 of Schedule 8.4 hereto, the existence
        of
        which has previously been approved, in writing by Lender. Each Borrower has
        good
        and marketable title to all of its properties and assets, including the
        Purchased Stock subject to no liens, mortgages, pledges, security interests,
        encumbrances or charges of any kind, except those granted to Lender and such
        others as may be specifically listed on Parts 1 and 2 of Schedule 8.4 hereto
        (including those permitted by Section 9.8(f) hereof) and as to those listed,
        if
        any, on Part 2 of Schedule 8.4 hereto only as specifically set forth therein
        and
        only on the assets and properties specifically identified therein.

      

      8.5 Tax
        Returns.
        Except
        as disclosed in the Information Certificate, each Borrower has filed, or
        caused
        to be filed, in a timely manner all tax returns, reports and declarations
        which
        are required to be filed by it (without requests for extension, except as
        previously disclosed in writing to Lender). All information in such tax returns,
        reports and declarations is complete and accurate in all material respects.
        Each
        Borrower has paid or caused to be paid all taxes due and payable or claimed
        due
        and payable in any assessment received by it, except taxes the validity of
        which
        are being contested in good faith by appropriate proceedings diligently pursued
        and available to such Borrower and with respect to which adequate reserves
        have
        been set aside on its books. Adequate provision has been made for the payment
        of
        all accrued and unpaid Federal, State, Commonwealth, United Kingdom, county,
        local, foreign and other taxes whether or not yet due and payable and whether
        or
        not disputed.

      

      8.6 Litigation.
        Except
        as set forth on the Information Certificate or in Schedule 8.6 hereto, there
        is
        no present investigation by any governmental agency pending, or to the best
        of
        any Borrower’s knowledge threatened, against or affecting a Borrower, its assets
        or business and there is no action, suit, proceeding or claim by any Person
        pending, or to the best of each Borrower’s knowledge threatened, against any
        Borrower or its assets or goodwill, or against or affecting any transactions
        contemplated by this Agreement or the Purchase Agreements, which if adversely
        determined against a Borrower would result in any material adverse change
        in the
        assets, business or prospects of any Borrower or would impair the ability
        of any
        Borrower to perform its obligations hereunder or under any of the other
        Financing Agreements to which it is a party or of Lender to enforce any
        Obligations or realize upon any Collateral.

      

      8.7 Compliance
        with Other Agreements and Applicable Laws.
        Borrower is not in default in any material respect under, or in violation
        in any
        material respect of any of the terms of, any agreement, contract, instrument,
        lease or other commitment to which it is a party or by which it or any of
        its
        assets are bound and Borrower is in compliance in all material respects with
        all
        applicable provisions of laws, rules, regulations, licenses, permits, approvals
        and orders of any foreign, English, Federal, State or local governmental
        authority.

      

      8.8 Bank
        Accounts.
        All of
        the deposit accounts, merchant payment accounts, investment accounts or other
        accounts in the name of or used by any Borrower maintained at any bank or
        other
        financial institution are set forth on Schedule 8.8 hereto.

       

      8.9 Accuracy
        and Completeness of Information.
        All
        information furnished by or on behalf of any Borrower in writing to Lender
        in
        connection with this Agreement, or any other Financing Agreements or any
        transaction contemplated hereby or thereby, including all information on
        the
        Information Certificate is true and correct in all material respects on the
        date
        as of which such information is dated or certified and does not omit any
        material fact necessary in order to make such information not misleading.
        No
        event or circumstance has occurred which has had or could reasonably be expected
        to have a Material Adverse Effect which has not been fully and accurately
        disclosed to Lender in writing.

      

      8.10 Survival
        of Warranties; Cumulative.
        All
        representations and warranties contained in this Agreement or any of the
        other
        Financing Agreements shall survive the execution and delivery of this Agreement
        and shall be deemed to have been made again to Lender on the date of each
        additional borrowing or other credit accommodation hereunder and shall be
        conclusively presumed to have been relied on by Lender regardless of any
        investigation made or information possessed by Lender. The representations
        and
        warranties set forth herein shall be cumulative and in addition to any other
        representations or warranties which any Borrower shall now or hereafter give,
        or
        cause to be given, to Lender.

      

      
        
          
          

        

        
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      8.11
        Intellectual
        Property.
        Each
        Borrower owns or licenses or otherwise has the right to use all Intellectual
        Property materially necessary for the operations of its business as presently
        conducted or proposed to be conducted. As of the date hereof, no Borrower
        has
        any Intellectual Property registered, or subject to pending applications,
        in the
        United States Patent and Trademark Office or any similar office or agency
        in the
        United States or any similar office or agency of the European Union or of
        England, any State thereof, any political subdivision thereof or in any other
        country, other than those described in Schedule 8.11 hereto and has not granted
        any licenses with respect thereto, other than as set forth in Schedule 8.11
        hereto. To Borrowers’ knowledge, after reasonable investigation, no event has
        occurred which permits or would permit after notice or passage of time or
        both,
        the revocation, suspension or termination of such rights. Except as otherwise
        disclosed by Borrower to Lender in writing to the best of Borrowers’ knowledge,
        no slogan or other advertising device, product, process, method, substance
        or
        other Intellectual Property or goods bearing or using any Intellectual Property
        presently employed by a Borrower infringes any patent, trade mark, service
        mark,
        trade name, copyright, license or other Intellectual Property owned by any
        other
        Person presently and no claim or litigation is pending or threatened against
        or
        affecting Seller or any Borrower or contesting Seller’s or any Borrower’s rights
        to sell or use any such Intellectual Property. Schedule 8.11 sets forth all
        of
        the agreements or other arrangements of any Borrower pursuant to which such
        Borrower or has a license or other rights to use any trademarks, logos, designs,
        representations or other Intellectual Property owned by another person as
        in
        effect on the date hereof and the dates of the expiration of such agreements
        or
        other arrangements of such Borrower as in effect on the date hereof and after
        giving effect to the transactions contemplated by the Purchase Agreements.
        No
        trademark, service mark or other Intellectual Property at any time used by
        Seller or any Borrower which is owned by another person, or owned by Seller
        or
        any Borrower is subject to any security interest, lien, collateral assignment,
        pledge or other encumbrance in favor of any person other than Lender, is
        or will
        be affixed to any Eligible Inventory.

      

      8.12
        Capitalization.

       

      (a)
        All
        of the issued and outstanding shares of Capital Stock of each Borrower are
        directly and beneficially owned and held by those persons specified on Schedule
        8.12 hereto, in the amounts specified therein and all of such shares of Capital
        Stock have been duly issued and are fully paid and non-assessable, free and
        clear of all claims, liens, pledges and encumbrances of any kind except those
        in
        favor of Lender.

       

      (b)
        Except as set forth on Schedule 8.12 hereto, no Borrower has any
        Subsidiary.

       

      (c)
        Each
        Borrower is Solvent and will continue to be Solvent after (i) the creation
        of
        Obligations and the security interests of Lender and (ii) the consummation
        of
        the other transactions contemplated hereunder and under the Purchase
        Agreements.

      

      8.13
        Environmental
        Compliance.

       

      (a)
        Except as set forth on Schedule 8.13 hereto, no Person has with respect to
        any
        Real Property including any Real Estate Security, generated, used, stored,
        treated, transported, manufactured, handled, produced or disposed of any
        Hazardous Materials, on or off any such property (whether or not owned by
        it) in
        any manner which at any time violates any applicable Environmental Law or
        any
        license, permit, certificate, approval or similar authorization thereunder
        and
        the present or proposed operations of Borrower complies in all material respects
        with all Environmental Laws and all licenses, permits, certificates, approvals
        and similar authorizations thereunder.

       

      
        
          
          

        

        
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      (b)
        Except as set forth on Schedule 8.13 hereto, there has been no investigation,
        proceeding, complaint, order, directive, claim, citation or notice by any
        governmental authority or any other person nor is any pending or to the best
        of
        Borrower’s knowledge threatened, with respect to any non-compliance with or
        violation of the requirements of any Environmental Law by any Person with
        respect to any Real Property including any Real Estate Security or the release,
        spill or discharge, threatened or actual, of any Hazardous Material or the
        generation, use, storage, treatment, transportation, manufacture, handling,
        production or disposal of any Hazardous Materials or any other environmental,
        health or safety matter, which affects Borrower or any Real Property including
        any Real Estate Security or Borrower’s business, operations or assets or any
        properties at which Borrower has transported, stored or disposed of any
        Hazardous Materials.

       

      (c)
        Borrower has no material liability (contingent or otherwise) in connection
        with
        a release, spill or discharge, threatened or actual, of any Hazardous Materials
        or the generation, use, storage, treatment, transportation, manufacture,
        handling, production or disposal of any Hazardous Materials.

       

      (d)
        )
        Except as set forth on Schedule 8.13 hereto, Borrower has all licenses, permits,
        certificates, approvals or similar authorizations required to be obtained
        or
        filed in connection with the present and proposed operations of Borrower
        under
        any Environmental Law and all of such licenses, permits, certificates, approvals
        or similar authorizations are valid and in full force and effect.

      

      8.14
        Employee
        Benefits.
        (a)
        Except as set forth on Schedule 8.14 hereto, no Borrower has engaged in any
        transaction in connection with which such Borrower or any of its ERISA
        Affiliates could be subject to either a civil penalty assessed pursuant to
        Section 502(i) of ERISA or a tax imposed by Section 4975 of the code, including
        any accumulated funding deficiency described in Section 8.14(c) hereof and
        any
        deficiency with respect to vested accrued benefits described in Section 8.14(d)
        hereof.

       

      (b)
        Except as set forth in schedule 8.14 hereto, no liability to the Pension
        Benefit
        Guaranty Corporation or any other person has been or is expected by Borrower
        to
        be incurred with respect to any employee benefit plan of Seller or of Borrower
        or any of its ERISA Affiliates. There has been no reportable event (without
        the
        meaning of Section 4043(b) of ERISA) or any other event or condition with
        respect to any employee pension benefit plan of any Borrower or any of its
        ERISA
        Affiliates which presents a risk of termination of any such plan by the Pension
        Benefit Guaranty Corporation. No liability to the Pension Benefit Guaranty
        Corporation has been or will be incurred by any Borrower with respect to
        any
        employee benefit plan of Seller or any of its ERISA Affiliates.

       

      (c)
        Full
        payment has been made of all amounts which any Borrower or any of its ERISA
        Affiliates is required under Section 302 of ERISA and Section 412 of the
        Code to
        have paid under the terms of each employee benefit plan as contributions
        to such
        plan as of the last day of the most recent fiscal year of such plan ended
        prior
        to the date hereof, and no accumulated funding deficiency (as defined in
        Section
        302 of ERISA and Section 412 of the Code), whether or not waived, exists
        with
        respect to any employee benefit plan, including any penalty or tax described
        in
        Section 8.14(a) hereof and any deficiency with respect to vested accrued
        benefits described in section 8.14(d) hereof.

       

      
        
          
          

        

        
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      (d)
        The
        current value of all vested accrued benefits under all employee benefit plans
        maintained by any Borrower or any of its ERISA Affiliates that are subject
        to
        Title IV of ERISA does not exceed the current value of the assets of such
        plans
        allocable to such vested accrued benefits, including any penalty or tax
        described in Section 8.14(a) hereof any accumulated funding deficiency described
        in Section 8.14(c) hereof. The terms “current value” and “accrued benefit” have
        the meanings specified in ERISA.

       

      (e)
        Neither any Borrower nor any of its ERISA Affiliates is or has ever been
        obligated to contribute to any “multi employer plan” of any (as such term is
        defined in section 4001(a)(3) of ERISA) that is subject to Title IV of
        ERISA.

       

      (f)
        Except as set forth in Schedule 8.14 hereto and then only in the amounts
        shown
        therein and for the periods shown therein, no Borrower has or expects to
        have
        any present, future, projected or anticipated liability in respect of employee
        benefits, fixed or contingent, including any pension or life assurance or
        other
        deferred compensation or benefit plan or “scheme”.

      

      8.15
        Credit
        Card Agreements.
        No
        Borrower has any credit card agreements or any other agreement, document
        or
        instrument existing as of the date hereof between or among Borrower, and
        any
        credit card issuer or any credit card processor, except for credit cards
        issued
        to their respective executive personnel, in the ordinary course of business,
        to
        pat expenses incurred in Borrower’s business and having an aggregate limit not
        in excess 40,000 British Pounds Sterling

      

      8.16 Acquisition
        of Purchased Stock.

       

      (a) The
        Purchase Agreements and the transactions contemplated thereunder have been
        duly
        executed, delivered and performed in accordance with their terms by the
        respective parties thereto in all respects, including the fulfillment (not
        merely the waiver, except as may be disclosed to Lender and consented to
        in
        writing by Lender) of all conditions precedent set forth therein and giving
        effect to the terms of the Purchase Agreements and the assignments to be
        executed and delivered by Seller (or any of its Affiliates or Subsidiaries)
        thereunder, Borrower has acquired and has good and marketable title to the
        Purchased Stock, free and clear of all claims, liens pledges and encumbrances
        of
        any kind, except as permitted hereunder.

       

      (b) All
        actions and proceedings, required by the Purchase Agreements, applicable
        law or
        regulation (including, but not limited to, compliance with the Hart-Scott-Rodino
        Anti-Trust Improvements Act of 1976, as amended) have been taken and the
        transactions required thereunder have been duly and validly taken and
        consummated.

       

      (c) No
        court
        of competent jurisdiction has issued any injunction, restraining order or
        other
        order which prohibits consummation of the transactions described in the Purchase
        Agreements and no governmental or other action or proceeding has been threatened
        or commenced, seeking any injunction, restraining order or other order which
        seeks to void or otherwise modify the transactions described in the Purchase
        Agreements.

       

      (d) Borrowers
        have delivered, or caused to be delivered, to Lender, true, correct and complete
        copies of the Purchase Agreements.

      

      
        
          
          

        

        
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      8.17
        Interrelated
        Business.
        Borrowers shares an identity of interest with each other and with Inyx, Inyx
        Pharma, Inyx USA and Inyx Canada, such that any benefit received by one benefits
        the other. Except as may otherwise be prohibited by Section 9.26 hereof each
        such Person renders or will render services to or for the benefit of the
        other,
        makes or will make loans and advances to or for the benefit of the other,
        shares
        or will share research and development and Intellectual Property and provides
        or
        will provide administrative, marketing, payroll or management services to
        or for
        the benefit of the other. Such Persons have centralized accounting and legal
        services.

      

      8.18
        Special
        United Kingdom Representations.

       

      (a)  No
        Borrower incorporated in the United Kingdom has
        taken
        any action nor (to the best of its knowledge and belief) have any steps been
        taken or legal proceedings been started or threatened against it for its
        winding-up, dissolution or re-organisation, for the enforcement of any
        Collateral over its assets or for the appointment of a liquidator supervisor,
        receiver, administrator, administrative receiver, compulsory manager, trustee
        or
        other similar officer of it or in respect.

       

      (b)  
        Each
        Borrower incorporated in England and Wales shall maintain its centre of main
        interests in England and Wales for the purposes of the Insolvency
        Regulation.

       

      (c)  
        Each of
        the directors of CMSL has made the statutory declarations required to be
        made
        under section 155 of the Companies Act 1985 and those declarations
        are
        true, accurate in all respects and complete, and has otherwise procured
        compliance with all the relevant provisions of the Companies Act 1985 in
        relation to the lawful giving of financial assistance directly or indirectly
        for
        the purpose of reducing or discharging Inyx EU's liability incurred in
        connection with its acquisition of the shares in the CMSL.

       

      (d)  Other
        than the registration of particulars of the Financing Agreements at the
        Companies Registration Office pursuant to section 395 of the Act,
        registrations at Land Registry and the Trade Marks Registry and equivalent
        registration in any other relevant jurisdictions in respect of assets to
        be
        mortgaged or charged, in each case pursuant to the Financing Agreements,
        the
        stamping of the Purchase Agreement and the filing of the statutory declarations
        all authorizations, consents (including an environmental consent), approvals,
        resolutions, licenses, exemptions, filings, notarizations or registrations
        required or desirable:

       

      (i) 
        to
        enable
        it lawfully to enter into, exercise its rights and comply with its obligations
        in the Financing Agreements which it is a party;

       

      (ii) 
        to
        make
        the Financing Agreements to which it is a party admissible in evidence in
        its
        jurisdiction of incorporation; and

       

      (iii) 
        to
        enable
        it and each of its Subsidiaries to carry on its business, trade and ordinary
        activities, have
        been
        obtained or effected and are in full force and effect.

       

      
        
          
          

        

        
          -59-

          
            

          

        

        
          
          

        

      

      (e)
         Under
        the
        law of its jurisdiction of incorporation and the jurisdiction of incorporation
        of any of its Subsidiaries it is not necessary that any of the Financing
        Agreements or Purchase Agreement be filed, recorded or enrolled with any
        court
        or other authority in that jurisdiction, or that any stamp, registration
        or
        similar tax be paid on or in relation to any of the Financing Agreements
        or
        Purchase Agreement or any of the transactions contemplated by the Financing
        Agreement or Purchase Agreement.

       

      (f) 
        No Event
        of Default is continuing or might reasonably be expected to result from the
        making of a Loan.

       

      (g) Any
        factual information provided by any Borrower for the purposes of either or
        both
        of the the Information Package was true and accurate in all material respects
        as
        at the date it was provided or as at the date (if any) at which it is stated.
        The financial estimates, forecasts and projections contained in the Information
        Package have been prepared on the basis of recent historical information
        and on
        the basis of reasonable assumptions and nothing has occurred which would
        necessitate a material revision to any of those estimates, forecasts and
        projections in order for them to be fair and reasonable. Nothing has occurred
        or
        been omitted from the Information Package and no information has been given
        or
        withheld which results in the information contained in the Information Package
        being untrue or misleading in any material respect.

       

      (h)
        The
        factual information contained in the certificates of title is or was at the
        respective dates of those certificates of title, true and accurate in all
        respects and complete.

       

      (i) 
        The
        factual information provided for the purpose of producing valuations of the
        properties of Borrowers and associated forecasts and projections is or was
        at
        the date on which such information was provided, true and accurate in all
        respects and complete. 

       

      For
        purposes of this Section “Information Package” means all information,
        documentation and reports furnished by any Borrower to Lender in connection
        with
        the transactions contemplated herein.

       

      (j)
         There
        is
        no disclosure made in the Disclosure Letter or any other disclosure to the
        Purchase Agreement which has or may have a material adverse effect on any
        of the
        information, prospects, estimates, forecasts or projections contained or
        referred to in the Information Package.

       

      (k) 
        Before
        the making of the first Loan hereunder, Inyx EU has not traded nor undertaken
        any commercial activities of any kind and (except as contemplated by, or
        otherwise in connection with, this Agreement and the other Financing Agreeemnts
        and the Purchase Agreement and the transactions contemplated by this Agreement,
        the other Financing Agreements or by the Purchase Agreement) has no assets
        or
        liabilities, actual or contingent.

       

      (l)  
        Each
        Borrower’s payment obligations under the Financing Agreements rank at least pari
        passu with the claims of all their respective other unsecured and unsubordinated
        creditors, except for obligations mandatorily preferred by law applying to
        companies generally.

       

      
        
          
          

        

        
          -60-

          
            

          

        

        Section
          9. Affirmative
          And Negative Covenants.

      

       

      9.1 Maintenance
        of Existence.
        Each
        Borrower shall at all times preserve, renew and keep in full, force and effect
        its corporate or other existence and rights and franchises with respect thereto
        and maintain in full force and effect all permits, licenses, trademarks,
        trade
        names, approvals, authorizations, leases and contracts necessary to carry
        on its
        business as presently or proposed to be conducted. Borrowers shall give Lender
        thirty (30) days prior written notice of any proposed change in any their
        respective corporate or other names, which notice shall set forth the new
        name(s) and Borrowers shall deliver to Lender a copy of the amendment to
        the
        Certificate of Incorporation or other organizational document of each Borrower
        providing for the name change certified by the Secretary of State or other
        appropriate official of the jurisdiction of incorporation or organization
        of
        such Person as soon as it is available; provided
        that,
        Lender
        has consented to CMSL changing its company name to “Ashton Pharmaceuticals
        Limited”.

      

      9.2 New
        Collateral Locations.
        A
        Borrower may open any new location within England only; provided (a) Borrowers
        give Lender thirty (30) days prior written notice of the intended opening
        of any
        such new location and (b) Borrowers execute and delivers, or causes to be
        executed and delivered, to Lender such agreements, documents, and instruments
        as
        Lender may deem reasonably necessary or desirable to protect its interest
        in the
        Collateral at such location.

       

      9.3 Compliance
        with Laws, Regulations, Etc.
        (a)
        Borrowers shall, at all times, comply in all material respects with all laws,
        rules, regulations, licenses, permits, approvals and orders applicable to
        any of
        them and duly observe all requirements of any Federal, English, State or
        local
        governmental authority, including the Employee Retirement Security Act of
        1974,
        as amended, the Pension Schemes Act Of 1993, as amended, the Occupational
        Safety
        and Health Act of 1970, as amended, the Fair Labor Standards Act of 1938,
        as
        amended, and all statutes, rules, regulations, orders, permits and stipulations
        relating to environmental pollution and employee health and safety, including
        all of the Environmental Laws.

       

      (b)
        Borrowers shall establish and maintain, at their expense, a system to assure
        and
        monitor its continued compliance with all Environmental Laws in all of its
        operations, which system shall include annual reviews of such compliance
        by
        employees or agents of Borrowers who are familiar with the requirements of
        the
        Environmental Laws. Copies of all environmental surveys, audits, assessments,
        feasibility studies and results of remedial investigations shall be promptly
        furnished, or caused to be furnished, by Borrower to Lender. Borrowers shall
        take prompt and appropriate action to respond to any non-compliance with
        any of
        the Environmental Laws and shall regularly report to Lender on such
        response.

       

      (c)
        Borrowers shall give both oral and written notice to Lender immediately upon
        Borrower’s receipt of any notice of, or Borrowers’ otherwise obtaining knowledge
        of, (i) the occurrence of any event involving the release, spill or discharge,
        threatened or actual, of any Hazardous Material or (ii) any investigation,
        proceeding, complaint, order, directive, claims, citation or notice with
        respect
        to: (A) any non-compliance with or violation of any Environmental Law by
        (1) a
        Borrower or (2) any Obligor with respect to any Real Estate Security or (B)
        the
        release, spill or discharge, threatened or actual, of any Hazardous Material
        or
        (C) the generation, use, storage, treatment, transportation, manufacture,
        handling, production or disposal of any Hazardous Materials or (D) any other
        environmental, health or safety matter, which affects (1) a Borrower or its
        business, operations or assets or any properties at which a Borrower
        transported, stored or disposed of any Hazardous Materials or (2) any Real
        Estate Security given by any Obligor.

      

      
        
          
          

        

        
          -61-

          
            

          

        

      

      (d)
        Without limiting the generality of the foregoing, whenever Lender reasonably
        determines that there is non-compliance, or any condition which requires
        any
        action by or on behalf of Borrower with respect to any Real Estate Security,
        in
        order to avoid any material non-compliance, with any Environmental Law,
        Borrowers shall, at Lender's request and Borrowers’ expense: (i) cause an
        independent environmental engineer acceptable to Lender to conduct such tests
        of
        the site where Borrower's non-compliance or alleged non-compliance with such
        Environmental Laws has occurred as to such non-compliance and prepare and
        deliver to Lender a report as to such non-compliance setting forth the results
        of such tests, a proposed plan for responding to any environmental problems
        described therein, and an estimate of the costs thereof and (ii) provide
        to
        Lender a supplemental report of such engineer whenever the scope of such
        non-compliance, or Borrowers’ response thereto or the estimated costs thereof,
        shall change in any material respect.

       

      (e)
        Borrowers shall indemnify and hold harmless Lender, its directors, officers,
        employees, agents, invitees, representatives, successors and assigns, from
        and
        against any and all losses, claims, damages, liabilities, costs, and expenses
        (including attorneys' fees and legal expenses) directly or indirectly arising
        out of or attributable to the use, generation, manufacture, reproduction,
        storage, release, threatened release, spill, discharge, disposal or presence
        of
        a Hazardous Material, including the costs of any required or necessary repair,
        cleanup or other remedial work with respect to any property of any Borrower
        or
        any Real Estate Security given by it and the preparation and implementation
        of
        any closure, remedial or other required plans. All representations, warranties,
        covenants and indemnifications in this Section 9.3 shall survive the payment
        of
        the Obligations and the termination or non-renewal of this
        Agreement.

      

      9.4
        Payment
        of Taxes and Claims.
        Each
        Borrower shall duly pay and discharge all taxes, assessments, contributions
        and
        governmental charges upon or against it or its properties or assets except
        for
        taxes the validity of which are being contested in good faith by appropriate
        proceedings diligently pursued and available to such Borrower and with respect
        to which adequate reserves have been set aside on their books. Borrowers
        shall
        be liable for any tax or penalties imposed on Lender as a result of the
        financing arrangements provided for herein and Borrowers agree to indemnify
        and
        hold Lender harmless with respect to the foregoing, and to repay to Lender
        on
        demand the amount thereof, and until paid by Borrowers such amount shall
        be
        added and deemed part of the Loans, provided,
        that,
        nothing
        contained herein shall be construed to require Borrowers to pay any income
        or
        franchise taxes attributable to the income of Lender from any amounts charged
        or
        paid hereunder to Lender. The foregoing indemnity shall survive the payment
        of
        the Obligations and the termination or non-renewal of this
        Agreement.

      

      

      
        
          
          

        

        
          -62-

          
            

          

        

      

      9.5 Insurance.
        Borrowers shall at all times, maintain with financially sound and reputable
        insurers insurance with respect to the Collateral against loss or damage
        and all
        other insurance of the kinds and in the amounts customarily insured against
        or
        carried by corporations of established reputation engaged in the same or
        similar
        businesses and similarly situated (including product liability insurance).
        Said
        policies of insurance shall be satisfactory to Lender as to form, amount
        and
        insurer. Borrowers shall furnish certificates, policies or endorsements to
        Lender as Lender shall require as proof of such insurance, and, if Borrower
        fails to do so, Lender is authorized, but not required, to obtain such insurance
        at the expense of Borrowers. All policies shall provide for at least thirty
        (30)
        days prior written notice to Lender of any cancellation or reduction of coverage
        and that Lender may act as attorney for Borrowers in obtaining, and at any
        time
        an Event of Default exists or has occurred and is continuing, adjusting,
        settling, amending and canceling such insurance. Borrowers shall cause Lender
        to
        be named as a loss payee and an additional insured (but without any liability
        for any premiums) under such insurance policies and Borrower shall obtain
        non-contributory lender's loss payable endorsements to all insurance policies
        in
        form and substance satisfactory to Lender. Such lender's loss payable
        endorsements shall specify that the proceeds of such insurance shall be payable
        to Lender as its interests may appear and further specify that Lender shall
        be
        paid regardless of any act or omission by Borrower or any of its Affiliates.
        At
        its option, Lender may apply any insurance proceeds received by Lender at
        any
        time to the cost of repairs or replacement of Collateral and/or to payment
        of
        the Obligations, whether or not then due, in any order and in such manner
        as
        Lender may determine or hold such proceeds as cash collateral for the
        Obligations.

      

      9.6 Financial
        Statements and Other Information.

       

      (a)
        Borrowers shall keep proper books and records in which true and complete
        entries
        shall be made of all dealings or transactions of or in relation to the
        Collateral and the business of Borrower and its Subsidiaries (if any) in
        accordance with GAAP. Borrowers shall (i) promptly furnish or cause to be
        furnished to Lender all such financial and other information as Lender may
        request relating to the Collateral and the assets, business and operations
        of
        Borrowers and shall notify the independent public accountants acting as auditors
        to Borrowers that Lender is authorized to obtain such information directly
        from
        such accountants. Without limiting the foregoing Borrowers shall cause to
        be
        furnished to Lender: (i) within fifteen (15) days after the end of each fiscal
        month, monthly unaudited consolidated and consolidating financial statements
        of
        Borrower and its Subsidiaries (including in each case balance sheets, statements
        of income and loss, statements of cash flow, and statements of shareholders'
        equity), all in reasonable detail, fairly presenting the financial position
        and
        the results of the operation of Borrower and its Subsidiaries as of the end
        of
        and through such fiscal month, (ii) within forty five (45) days after the
        end of
        each fiscal quarter, unaudited consolidated and consolidating financial
        statements of Borrower and its Subsidiaries (including the information specified
        in Section 9.6(a)(i) hereof),as of the end and through the fiscal quarter
        then
        ended and (iii) within ninety (90) days after the end of each fiscal year,
        drafts of audited consolidated and consolidating financial statements of
        Borrower and its Subsidiaries and drafts of audited separate financial
        statements of each Borrower(including balance sheets, statements of income
        and
        loss, statements of cash flow and statements of shareholders' equity), and
        the
        accompanying notes thereto, all in reasonable detail, fairly presenting the
        financial position and the results of the operations of Borrower as of the
        end
        of and for such fiscal year and (iv) within one hundred twenty (120) days
        after
        the end of each fiscal year, audited consolidated and consolidating financial
        statements Borrower and its Subsidiaries and separate audited financial
        statements of each Borrower (including balance sheets, statements of income
        and
        loss, statements of cash flow and statements of shareholders' equity), and
        the
        accompanying notes thereto, all in reasonable detail, fairly presenting the
        financial position and the results of the operations of Borrower and its
        Subsidiaries and of each Borrower separately, as of the end of and for such
        fiscal year, together with the unqualified opinion of independent certified
        public accountants, which accountants shall be an independent accounting
        firm
        selected by Borrower and reasonably acceptable to Lender, that such financial
        statements have been prepared in accordance with GAAP, and present fairly
        the
        results of operations and financial condition of Borrower as of the end of
        and
        for the fiscal year then ended. The financial statements(i) referred to in
        Section 9.6(a)(i), (ii) and (iii) hereof shall be accompanied by a certificate
        of the Chief Financial Officer of Borrower to the effect that such financial
        statements are correct in all material respects, subject to normal year end
        audit adjustments, (ii) referred to in Section 9.6(a)(ii), (iii) and (iv)
        hereof
        shall be accompanied by a certificate of the Chief Financial Officer of Borrower
        to the effect that Borrower is in compliance with the covenants set forth
        in
        Sections 9.14, 9.15 and 9.16 hereof , as of the close of the period to which
        such financial statements relate, together with a schedule showing the
        calculations used in determining such compliance and that no Event of Default
        or
        event which would with the giving of notice or passage of time, constitute
        an
        Event of Default exists and is continuing, (iii) referred to in Section
        9.6(a)(iv) hereof shall be accompanied by a certificate of the Chief Financial
        Officer of Borrower to the effect that Borrower is in compliance with the
        covenants set forth in Sections 9.14, 9.15, 9.16 and 9.17 hereof , as of
        the
        close of the period to which such financial statements relate, together with
        a
        schedule showing the calculations used in determining such compliance and
        that
        no Event of Default or event which would with the giving of notice or passage
        of
        time, constitute an Event of Default exists and is continuing and (iv) referred
        to in Section 9.6(a)(ii),(iii) and (iv) hereof shall be accompanied by a
        certificate of the Chief Executive Officer and Chief Financial Officer of
        Borrower setting forth the Adjusted Net Worth of Borrower as of the respective
        dates of such financial statements and shall be accompanied by a schedule
        showing the calculations used in determining such Adjusted Net Worth and
        the
        appraisals on which such calculations are based, which appraisals( and the
        appraisers performing such appraisals) must be acceptable to Lender in all
        respects; provided
        that,
        for
        purposes of determining Adjusted Net Worth (A) at any time an Event Of Default
        or act, condition or event which with the giving of notice or passage of
        time or
        both would constitute an Event of Default shall exist or (B) on the request
        of
        Lender, but not more often than once in any two(2) year period, Borrower
        shall,
        within fifteen(15) working days after request of Lender therefor furnish
        to
        Lender new appraisals of all of the assets of Borrower, in form and substance
        and from appraisers satisfactory to Lender.

       

      
        
          
          

        

        
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      (b)
        Borrowers shall promptly notify Lender in writing of the details of (i) any
        loss, damages, investigation, action, suit, proceeding or claim which has
        or
        could result in a Material Adverse Effect, (ii) any Material Contract of
        a
        Borrower being terminated or amended or any new Material Contract entered
        into
        (in which event Borrowers shall provide Lender with a copy of such Material
        Contract), (iii) any order, judgment or decree in excess of $50,000 which
        has
        been entered against Borrower or any of its properties or assets, (iv) any
        notification from a governmental authority of violation of laws or regulations
        received by a Borrower, (v) any ERISA Event and (vi) the occurrence of any
        Event
        of Default or act, condition or event which with the giving of notice or
        the
        passage of time or both, would constitute an Event of Default.

       

      (c)
        Borrowers shall promptly after the sending or filing thereof furnish or cause
        to
        be furnished to Lender copies of all reports which Inyx sends to its
        stockholders generally and copies of all reports and registration statements
        which Inyx files with the Securities and Exchange Commission, any national
        securities exchange or the National Association of Securities Dealers,
        Inc.

       

      (d)
        Borrowers shall furnish or cause to be furnished to Lender such budgets,
        forecasts, projections and other information respecting the Collateral and
        the
        business of Borrowers as Lender may, from time to time, reasonably request.
        Lender is hereby authorized to deliver a copy of any financial statement
        or any
        other information relating to the business of Borrower to any court or other
        government agency upon request therefor or to any participant or assignee
        or
        prospective participant or assignee. Borrower hereby irrevocably authorizes
        and
        directs all of its accountants or auditors to deliver to Lender, at Borrower’s
        expense, copies of the financial statements of Borrower and any reports or
        management letters prepared by such accountants or auditors on behalf of
        Borrower and to disclose to Lender such information as they may have regarding
        the business of Borrower. Any documents, schedules, invoices or other papers
        delivered to Lender may be destroyed or otherwise disposed by Lender one
        (1)
        year after the same are delivered to Lender, except as otherwise designated
        by
        Borrower to Lender in writing.

       

      (e)
        Borrowers shall immediately notify Lender in writing of (i) the occurrence
        or
        existence of any Event of Default or any act, condition or event which is
        an
        Event of Default or which with the giving of notice or passage of time or
        both
        would be an Event of Default, hereunder and (ii) the occurrence or existence
        of
        any default or event of default or any act, condition or event which is a
        default or an event of default or which with the giving of notice or passage
        of
        time or both would be an event of default, under any agreement or instrument
        to
        which any Affiliate of a Borrower is a party, relating to any Debt.

       

      (f)
        Borrowers shall deliver, or cause to be delivered, to Lender, within ninety
        (90)
        days from the date hereof, an opening balance sheet of Borrowers after giving
        effect to the transactions contemplated by this Agreement and the Purchase
        Agreements, together with the opinion of independent certified public
        accountants, which accountants shall be an independent accounting firm selected
        by Borrower and reasonably acceptable to Lender, to the effect that such
        opening
        balance sheet has been prepared in accordance with GAAP and presents fairly
        the
        financial condition of Borrower as of such date.

      

      
        
          
          

        

        
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      9.7 Sale
        of Assets, Consolidation, Merger, Dissolution, Etc.
        A
        Borrower shall not directly or indirectly, (a) merge into or with or consolidate
        with any other Person or permit any other Person to merge into or with or
        consolidate with it or (b) sell, assign, lease, transfer, abandon or otherwise
        dispose of (i) any Capital Stock, except in a transaction involving public
        offering, or indebtedness to any other Person or (ii) any of its assets to
        any
        other Person (except for (A) sales of Inventory in the ordinary course of
        business, (B) the disposition of Equipment no longer used in the business
        of
        Borrower so long as (1) any proceeds are paid to Lender and (2) such sales
        do
        not involve Equipment having an aggregate fair market value in excess of
        $50,000
        for all such Equipment disposed of in any fiscal year of Borrower, (C) sales
        of
        Equipment (1) to which Lender shall have consented in writing and(2) any
        proceeds of which are paid to Lender for application as determined by Lender
        or
        (c) form or acquire any Subsidiary, or transfer any assets to any Subsidiary,
        or
        (d) wind up, liquidate or dissolve or (e) agree to do any of the foregoing.
        

      

      9.8 Encumbrances.
        A
        Borrower shall not create, incur, assume or suffer or permit to exist any
        security interest, mortgage, pledge, lien, charge or other encumbrance of
        any
        nature whatsoever on any of its assets or properties, including the Collateral,
        except:
        (a)
        liens and security interests of Lender; (b) liens securing the payment of
        taxes,
        either not yet overdue or the validity of which are being contested in good
        faith by appropriate proceedings diligently pursued and available to Borrower
        and with respect to which adequate reserves have been set aside on its books;
        (c) non-consensual statutory liens (other than liens securing the payment
        of
        taxes) arising in the ordinary course of Borrower’s business to the extent: (i)
        such liens secure indebtedness which is not overdue or (ii) such liens secure
        indebtedness relating to claims or liabilities which are fully insured and
        being
        defended at the sole cost and expense and at the sole risk of the insurer
        or
        being contested in good faith by appropriate proceedings diligently pursued
        and
        available to Borrower, in each case prior to the commencement of foreclosure
        or
        other similar proceedings and with respect to which adequate reserves have
        been
        set aside on its books; (d) zoning restrictions, easements, licenses, covenants
        and other restrictions affecting the use of Real Property which do not interfere
        in any material respect with the use of such Real Property or ordinary conduct
        of the business of Borrower as presently conducted or proposed to be conducted,
        thereon or materially impair the value of the Real Property which may be
        subject
        thereto; (e) purchase money security interests in Equipment (including Capital
        Leases entered into after the date hereof), not to exceed $100,000 in the
        aggregate at any time outstanding so long as such security interests and
        mortgages do not apply to any property of Borrower other than the Equipment
        so
        acquired, and the indebtedness secured thereby does not exceed the cost of
        the
        Equipment so acquired, as the case may be and (f) the security interests
        and
        liens set forth on Schedule 8.4 hereto, including those securing the
        indebtedness to Seller referred to in Section 4.1(dd) hereof, which have
        been
        fully subordinated to the liens and security interests of Lender to Lender’s
        satisfaction.

      

      9.9
        Indebtedness.
        Borrower shall not incur, create, assume, become or be liable in any manner
        with
        respect to, or suffer or permit to exist, any obligations or indebtedness,
        except:

       

      (a)
        the
        Obligations;

      

      
        
          
          

        

        
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      (b)
        trade
        accounts payable and other trade obligations and normal accruals in the ordinary
        course of business not yet due and payable, or with respect to which Borrower
        is
        contesting in good faith the amount or validity thereof by appropriate
        proceedings diligently pursued and available to Borrower and with respect
        to
        which adequate reserves have been set aside on their books;

       

      (c)
        purchase money indebtedness (including Capital Leases) to the extent not
        incurred or secured by liens (including Capital Leases) in violation of any
        other provision of this Agreement;

       

      (d)
        unsecured indebtedness of Borrower for borrowed money incurred after the
        date
        hereof, owing to any Person other than any shareholder, officer, director,
        agent, employee or Affiliate of Borrower on commercially reasonable rates
        and
        terms pursuant to an arm's length transaction; provided,
        that,
        (i)
        Lender shall have received not less than five (5) Business Days prior written
        notice of the intention to incur such indebtedness, which notice shall set
        forth
        in reasonable detail satisfactory to Lender, the amount of such indebtedness,
        the person to whom such indebtedness will be owed, the interest rate, the
        schedule of repayments and maturity date with respect thereto and such other
        information as Lender may reasonably request with respect thereto, (ii) Lender
        shall have received true, correct and complete copies of all agreements,
        documents and instruments evidencing or otherwise related to such indebtedness,
        (iii) the aggregate amount of such indebtedness at any time outstanding shall
        not exceed $100,000, (iv) on and before the date of incurring such indebtedness
        and after giving effect thereto, no Event of Default, or event which with
        the
        giving notice or the passage of time or both would constitute an Event of
        Default, shall exist or have occurred and be continuing, (v) Borrower may
        only
        make regularly scheduled payments of principal and interest in respect of
        such
        indebtedness in accordance with the terms of the agreement or instrument
        evidencing or giving rise to such indebtedness as in effect on the date of
        the
        execution thereof, and (vi) Borrower shall not, directly or indirectly, (A)
        make
        any prepayments or other non-mandatory payments in respect of such indebtedness,
        or (B) amend, modify, alter or change the terms of such indebtedness or any
        agreement, document or instrument related thereto, or (C) redeem, retire,
        defease, purchase or otherwise acquire such indebtedness, or set aside or
        otherwise deposit or invest any sums for such purpose, and (vii) Borrower
        shall
        furnish to Lender all notices, demands or other materials in connection with
        such indebtedness either received by Borrower or on its behalf, promptly
        after
        the receipt thereof, or sent by Borrower, or on its behalf, concurrently
        with
        the sending thereof, as the case may be; 

       

      (e)
        indebtedness of Borrower described on Schedule 9.9 hereto; provided,
        that:
        (i) the
        individual principal amounts of such indebtedness and aggregate principal
        amounts of all such indebtedness shall not exceed the amounts shown on such
        Schedule 9.9 hereto less the aggregate amount of all repayments, repurchases
        or
        redemptions, whether optional or mandatory in respect thereof, plus interest
        thereon at the rate provided for in such agreement or instrument as in effect
        on
        the date hereof, (ii) Borrower may only make regularly scheduled payments
        of
        principal and interest in respect of such indebtedness in accordance with
        the
        terms of the agreement or instrument evidencing or giving rise to such
        indebtedness, (iii) Borrower shall not, directly or indirectly, (A) amend,
        modify, alter or change the terms of such indebtedness or any agreement,
        document or instrument related thereto or (B) redeem, retire, defease, purchase
        or otherwise acquire such indebtedness, or set aside or otherwise deposit
        or
        invest any sums for such purpose, and (iv) Borrower shall furnish to Lender
        all
        notices or demands in connection with such indebtedness either received by
        Borrower or on its behalf, promptly after the receipt thereof, or sent by
        Borrower or on its behalf, concurrently with the sending thereof, as the
        case
        may be;

       

      (f)
        Subordinated Debt of Borrower issued to the Seller, pursuant to the Purchase
        Agreements; and

       

      (g)
        Indebtedness of Inyx EU to CMSL incurred pursuant to the loan agreement
        described in Section 4.1(gg) hereof.

      

      
        
          
          

        

        
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      9.10 Loans,
        Investments, Guarantees, Etc.
        Borrower
        shall not directly or indirectly, make or permit to exist any loans or advance
        money or property to any person, or invest in (by capital contribution, dividend
        or otherwise) or purchase or repurchase the Capital Stock or indebtedness
        or all
        or a substantial part of the assets or property of any Person, or form or
        acquire any Subsidiaries or guarantee, assume, endorse, or otherwise become
        responsible for (directly or indirectly) the indebtedness, performance,
        obligations or dividends of any Person or agree to do any of the foregoing,
        except:
        (a) the
        endorsement of instruments for collection or deposit in the ordinary course
        of
        business; (b) investments in cash or Cash Equivalents; provided that,
        as to
        any of the foregoing, unless waived in writing by Lender, Borrower shall
        take
        such actions as are deemed necessary by Lender to perfect the security interest
        of Lender in such investments; (c) the loans, advances and guarantees set
        forth
        on Schedule 9.10 hereto; provided,
        that,
        as to
        such loans, advances and guarantees, (i) Borrower shall not, directly or
        indirectly, (A) amend, modify, alter or change the terms of such loans, advances
        or guarantees or any agreement, document or instrument related thereto, or
        (B)
        as to such guarantees, redeem, retire, defease, purchase or otherwise acquire
        the obligations arising pursuant to such guarantees, or set aside or otherwise
        deposit or invest any sums for such purpose, and (ii) Borrower shall furnish
        to
        Lender all notices or demands in connection with such loans, advances or
        guarantees or other indebtedness subject to such guarantees either received
        by
        Borrower or on its behalf, promptly after the receipt thereof, or sent by
        Borrower or on its behalf, concurrently with the sending thereof, as the
        case
        may be; (d) loans and advances not in excess of the amount of $100,000
        outstanding in the aggregate for all such loans and advances during the term
        of
        this Agreement; provided
        that,
        except
        as permitted by Section 9.10 (e) hereof, no such loan or advance shall be
        made
        to any Affiliate of Borrower, to the holder of any Capital Stock of Borrower
        or
        to any Person described on Schedule 9.21 hereto; and (e) loans or advances
        described in Section 9.9(g) hereof.

      

      9.11
        Transactions
        with Affiliates.
        Borrower shall not, directly or indirectly, (a) purchase, acquire or lease
        any
        property from, or sell, transfer or lease any property to, any officer,
        director, agent or Person Affiliated with Borrower, except in the ordinary
        course of business and pursuant to the reasonable requirements of Borrower’s
        business and upon fair and reasonable terms no less favorable to Borrower
        than
        such Person would obtain in a comparable arm's length transaction with an
        unaffiliated person (but in no event may Borrower sell, transfer or lease
        any
        property to any Subsidiary) or (b) make any payments (i) of any indebtedness
        owing to any officer, employee, shareholder or director or other person
        Affiliated with Borrower or (ii) of any compensation to any employee, except
        reasonable compensation to employees for services rendered to in the ordinary
        course of business; provided
        that,
        nothing
        contained in this Section 9.11 shall be construed to permit any Borrower
        to take
        any of the actions prohibited by Section 9.26.

      

      

      
        
          
          

        

        
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      9.12
        Additional
        Bank Accounts.
        Borrower shall not, directly or indirectly, open, establish or maintain any
        deposit account, investment account or any other account with any bank or
        other
        financial institution, other than the Blocked Accounts and the accounts set
        forth in Schedule 8.8 hereto, except: (a) as to any new or additional Blocked
        Accounts and other such new or additional accounts which contain any Collateral
        or proceeds thereof, with the prior written consent of Lender and subject
        to
        such conditions thereto as Lender may establish and (b) as to any accounts
        used
        by Borrower to make payments of payroll, taxes or other obligations to third
        parties, after prior written notice to Lender. 

      

      9.13
        Compliance
        with ERISA.
        (a)
        Borrower shall not, with respect to any “employee benefit plans” maintained by
        Borrower or any of its ERISA Affiliates: (i) terminate any of such employee
        benefit plans so as to incur any liability to the Pension Benefit Guaranty
        Corporation established pursuant to ERISA, (ii) allow or suffer to exist
        any
        prohibited transaction involving any of such employee benefit plans or any
        trust
        created thereunder which would subject Borrower or such ERISA Affiliate to
        a tax
        or penalty or other liability on prohibited transactions imposed under Section
        4975 of the Code or ERISA, (iii) fail to pay to any such employee benefit
        plan
        any contribution which it is obligated to pay under Section 302 of ERISA,
        Section 412 of the Code or the terms of such plan, (iv) allow or suffer to
        exist
        any accumulated funding deficiency, whether or not waived, with respect to
        any
        such employee benefit plan, (v) allow or suffer to exist any occurrence of
        a
        reportable event(other than those as to which the Pension Benefit Guaranty
        Corporation has waived notice pursuant to Regulation) or any other event
        or
        condition which presents a material risk of termination by the Pension Benefit
        Guaranty Corporation of any such employee benefit plan that is a single employer
        plan, that is a single employer plan, which termination could result in any
        liability to the Pension Benefit Guaranty Corporation, (vi) incur any withdrawal
        liability with respect to any multi employer pension plan; and (vii) fail
        to
        maintain each employee benefit plan in compliance in all material respects
        with
        the applicable provisions of ERISA, the Code and other Federal State and
        Commonwealth Law.

       

      (b)
        As
        used in this Section 9.13 and Section 8.14 the terms (i) “employee benefit
        plans”, “accumulated funding deficiency and reportable event” shall have the
        respective meanings assigned to them in ERISA, and the term “prohibited
        transaction” shall have the meaning assigned to it in Section 4975 of the Code
        and “ERISA”, (ii) “ERISA Affiliate” shall mean any Person required to be
        aggregated with Borrower or any of its Subsidiaries under Sections 414(b),
        414(c), 414(m) or 414(o) of the Code and “ERISA” shall mean the United States
        Employee Retirement Income Security Act of 1974 .

       

      9.14 Working
        Capital.
        Borrower shall, at all times, maintain Working Capital of not less than
        $5,000,000.

      

      9.15
        Net
        Worth.
        Borrowers shall, at all times, maintain (a) an Adjusted Net Worth of not
        less
        than $8,000,000 and (b) a Tangible Net Worth of not less than
        $18,000,000.

       

      
        
          
          

        

        
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      9.16
        Suppressed
        Availability.
        (a)
        Borrowers shall, maintain with Lender, at all times after the date hereof,
        Suppressed Availability of not less than $500,000. Lender may, but shall
        not be
        required to and in addition to its other rights, in its discretion, use the
        amount of Suppressed Availability (i) to pay costs and expenses incurred
        by
        Borrowers or chargeable to Borrowers under this Agreement, (ii) to cure defaults
        of Borrowers under this Agreement, or by Borrower or any other Obligor under
        any
        of the other Financing Agreements or any other agreement of Borrowers with
        any
        third party, (iii) to pay taxes of Borrowers and (iv) for, any other purpose
        permitted by, or to make any other payment which Lender is authorized to
        make,
        under this Agreement.

       

      (b)
        If
        the amount of Suppressed Availability, shall at any time be less than $500,000
        Borrowers shall, at all times, on notice by Lender, immediately take such
        actions as are required by Lender, including delivery to Lender of cash
        collateral so that the amount of Suppressed Availability shall not be less
        than
        $500,000.

      

      9.17
        Excess
        Cash Flow.
        Borrower shall, for each of its fiscal years during the Term of this Agreement,
        have Excess Cash Flow of not less than $4,000,000.

      

      9.18
        Changes
        in Equity.
        A
        Borrower shall not (a) cease to have its Capital Stock or other equity interests
        owned by the Persons now owning such Capital Stock or other equity interests
        in
        the same percentages of ownership now held by such Persons or (b) issue,
        sell or
        deliver any shares of its Capital Stock or other equity interests or rights,
        options, warrants or calls to purchase any shares of its Capital Stock other
        equity interests or securities convertible into shares of its Capital Stock
        or
        other equity interests, except in each case as a result of a transaction
        involving a public offering.

      

      9.19
        Restricted
        Junior Payments.
        Borrower shall not, directly or indirectly, make, or agree to make, any
        Restricted Junior Payment; except
        that (a)
        CMSL
        may make Restricted Junior Payments contemplated by Section 9.27 hereof and
        (b)
        Borrowers shall repay Inyx on the Closing Date the indebtedness shown on
        Schedule 9.9 hereof.

      

      9.20
        Costs
        and Expenses.
        Borrowers shall pay to Lender on demand all costs, expenses, filing fees
        and
        taxes paid or payable in connection with the preparation, negotiation,
        execution, delivery, recording, administration, collection, liquidation,
        enforcement and defense of the Obligations, Lender's rights in the Collateral,
        this Agreement, the other Financing Agreements and all other documents related
        hereto or thereto, including any amendments, supplements or consents which
        may
        hereafter be contemplated (whether or not executed) or entered into in respect
        hereof and thereof, including: (a) all costs and expenses of filing or recording
        (including Uniform Commercial Code financing statement filing taxes and fees,
        documentary taxes, intangibles taxes and mortgage recording taxes and fees,
        if
        applicable); (b) all costs and expenses and fees for insurance premiums,
        environmental audits, surveys, assessments, engineering reports and inspections,
        appraisal fees and search fees; (c) costs and expenses of remitting loan
        proceeds, collecting checks and other items of payment, and establishing
        and
        maintaining the Blocked Accounts or Lender Accounts, together with Lender's
        customary charges and fees with respect thereto; (d) charges, fees or expenses
        charged by any bank or issuer in connection with the Letter of Credit
        Accommodations; (e) costs and expenses of preserving and protecting the
        Collateral; (f) costs and expenses paid or incurred in connection with obtaining
        payment of the Obligations, enforcing the security interests and liens of
        Lender, selling or otherwise realizing upon the Collateral, and otherwise
        enforcing the provisions of this Agreement and the other Financing Agreements
        or
        defending any claims made or threatened against Lender arising out of the
        transactions contemplated hereby and thereby (including preparations for
        and
        consultations concerning any such matters); (g) all out-of-pocket expenses
        and
        costs heretofore and from time to time hereafter incurred by Lender during
        the
        course of periodic field examinations of the Collateral and Borrower's
        operations including the costs of field testing by third party providers
        retained by Lender, plus a per diem charge at the rate of $750.00 per person
        per
        day plus travel, hotel and all other out of pocket expenses for Lender's
        examiners in the field and office; and (h) the fees and disbursements of
        counsel
        (including legal assistants) to Lender in connection with any of the
        foregoing.

      

      
        
          
          

        

        
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      9.21
        Environmental
        Audits.
        Within
        ninety (90) days from of a request by Lender, from time to time, Borrowers
        shall
        deliver to Lender, at its expense updated environmental audits of the Real
        Property and the Real Estate Security conducted by an environmental firm
        acceptable to Lender and in form, scope and methodology satisfactory to Lender
        confirming that (a) Borrower is in compliance with all Environmental Laws,
        in
        all material respects and (b) there is no material potential or actual liability
        of Borrower for any remedial action with respect to any environmental condition
        or any other significant environmental problems; provided 
        that,
        if such
        audits cannot confirm such compliance or that there is no such liability,
        Borrower shall forthwith at their expense, diligently take all remedial action
        necessary to cure such condition, effect such compliance and discharge such
        liability, to such firm’s satisfaction.

       

      9.22
        Management
        Compensation.
        Borrowers will not directly or indirectly, pay compensation or management,
        consulting or other fees for management or similar services directly or
        indirectly, to or for the benefit of (a) as to those Persons listed on Schedule
        9.22 hereto in per annum amounts in the aggregate in excess of that set forth
        and determined as described on Schedule 9.22 hereto, including performance
        and
        incentive bonuses, for each such person, (b) as to all other officers, directors
        or consultants amounts in excess of that which is reasonable, ordinary and
        necessary and (c) Inyx Canada, Inc.

      

      9.23
        Business
        Names.
        Borrowers shall not use any trade names in the conduct of its business and
        operations other than (a)those listed on Schedule 8.11 hereto and (b)those
        trade
        names which Borrower may hereafter use after (i) having given Lender at least
        15
        Business Days notice after the filing for registration of such name and (ii)
        taking all such actions and executing and delivering all such agreements,
        instruments, notices and documents as Lender shall request to(A) grant to
        Lender
        a valid and perfected first and prior security interest and lien therein
        and (B)
        protect and preserve Lender’s security interests and liens in the other
        Collateral.

      

      9.24
        Additional
        Covenants.

       

      (a)
        Borrowers shall deliver to Lender, within 30 days after request by Lender
        a
        report of essential payments made and expenses incurred by Borrower, during
        the
        period requested by Lender in such detail as Lender may request.

       

      (b)
        Borrowers shall deliver to Lender, within 15 days after request by Lender,
        a
        comparison of its actual availability for the period designated by Lender
        with
        its budgeted availability for such period.

       

      (c)
        Borrowers shall provide Lender, in addition to the other financial information
        to be provided by Borrower hereunder, balance sheets, income statements,
        cash
        flows, availability projections(including
        underlying assumptions therefore), inventory locations and a detail of
        transactions with Affiliates, in a level of detail acceptable to Lender,
        on a
        monthly basis until March 31, 2006 and on a quarterly basis
        thereafter.

      

      9.25
        Loan
        Amount Certificate.
        Borrowers shall, promptly upon the request of Lender, but not more often
        the 4
        times in any fiscal year and in any event together with the quarterly and
        audited Financial Statements referred to in Section 9.6 hereof furnish to
        Lender
        a certificate, signed by its President and Chief Financial Officer, stating
        as
        of the date thereof (a) the then outstanding balance of the Loans, (b) that
        no
        defense, offset or counterclaim exists with respect to Borrower’s obligation to
        pay such Loans or if any such defense, offset or counterclaim does exist,
        specifying in detail the nature and amount thereof and the facts upon which
        based and (c) that they have reviewed this Agreement and the other Financing
        Agreements to which Borrower is a party and have made, or caused to be made
        under their supervision, a review in reasonable detail of the transactions
        and
        condition of the Borrower and that, based on such review, the Borrower has
        observed or performed all of their covenants and other agreements(including
        those related to Environmental Laws), and satisfied every condition, contained
        in this Agreement and the other Financing Agreements to be observed, performed
        or satisfied by the Borrower and that such review has not disclosed the
        existence, and that such officers do not have knowledge of the existence
        as at
        the date of the certificate, of any Event of Default or event or condition
        which, with the giving of notice or the lapse of time or both, would constitute
        an Event of Default or if such officer has any knowledge of any such Event
        of
        Default or other event or condition, specifying same and what action the
        Borrower is taking or proposes to take with respect thereto.

      

      
        
          
          

        

        
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      9.26
        No
        United States Nexus.
        (a) No
        Borrower shall create, incur or suffer to exist any Debt, liability or other
        obligations of any Borrower of any kind (whether fixed or contingent, due
        or to
        become due or otherwise, including any Debt, liability or other obligation
        to
        any Affiliate)) to any Person:

       

      (i)
        Resident or domiciled in the United States, 

       

      (ii)
        Incorporated in the United States,

       

      (iii)
        Doing business in the United States,

       

      (iv)
        Maintaining an office or place of business located in the United States,
        or

       

      (v)
        Having any interest in any asset located in the United States;

       

      other
        than to
        a
        branch or permanent establishment of any such Person, not located in the
        United
        States.

       

      (b)
        Borrowers shall not directly or indirectly:

       

      (i)
        Own
        any interest in any asset located in the United States,

       

      (ii)
        Engage in any trade or business or do or transact any business in the United
        States,

       

      (iii)
        Maintain any office or place of business located in the United States,
        or

       

      (iv)
        Otherwise become domiciled in, resident of, or have any presence in the United
        States.

      

      (c)
        As
        used in this Section 9.26 the term “United States” has the meaning prescribed by
        Section 1.01(55) of the United States Bankruptcy Code.

      

      9.27
        Upstream
        Loan Agreement.
        CMSL
        shall loan and advance funds to Inyx EU in such amounts and at such times
        as may
        be required by Inyx EU to enable Inyx EU to repay Lender the Loans made by
        Lender to Inyx EU and all other Obligations of Inyx EU to Lender, when
        due.

      

      9.28 Further
        Assurances.
        At the
        request of Lender at any time and from time to time, Borrowers shall at their
        expense, duly execute and deliver, or cause to be duly executed and delivered,
        such further agreements, documents and instruments, and do or cause to be
        done
        such further acts as may be necessary or proper to evidence, perfect, maintain
        and enforce the security interests of Lender, and the priority thereof, in
        the
        Collateral and to otherwise effectuate the provisions or purposes of this
        Agreement or any of the other Financing Agreements. Lender may at any time
        and
        from time to time request a certificate from an officer of Borrowers
        representing that all conditions precedent to the making of Loans and providing
        Letter of Credit Accommodations contained herein are satisfied. In the event
        of
        such request by Lender, Lender may, at its option, cease to make any further
        Loans and providing Letter of Credit Accommodations until Lender has received
        such certificate and, in addition, Lender has determined that such conditions
        are satisfied. Where permitted by law, Borrowers hereby authorizes Lender
        to
        execute and file one or more UCC financing statements signed only by
        Lender.

      

      
        
          
          

        

        
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      9.29 United
        Kingdom Covenants.

      

      
        	(a)  	
                The
                  Borrowers shall (or shall ensure that the relevant Borrower will)
                  at the
                  request of the Lender submit simultaneously with the Borrowers
                  (or the
                  relevant Borrower's) application to Land Registry for registration
                  of any
                  mortgage or charge created by a Financing Agreement, any Land Registry
                  forms EX1 and EX1A, the relevant documents and cheque for the requisite
                  fee, each as provided by the Lender to the
                  Borrowers.

              

      

       

      
        	(b)  	
                Each
                  Borrower shall (and shall ensure that each of its Subsidiaries
                  will)
                  maintain its centre of main interests in England and Wales for
                  the
                  purposes of the “Insolvency Regulation” (Insolvency Regulation means the
                  Council Regulation (EC) No.1346/2000 of 29 May 2000
                  on Insolvency Proceedings).

              

      

       

      
        	(c)  	
                The
                  Borrowers shall (and shall ensure that each of its Subsidiaries
                  will)
                  within any relevant period laid down in any statute, law or regulation
                  applicable in the jurisdiction of its incorporation make all necessary
                  declarations, obtain all necessary authorizations and deliver all
                  necessary forms and documents required to be delivered to, filed
                  with or
                  registered with any governmental, statutory or other body or agency
                  by it
                  in connection with the Financing
                  Agreements.

              

      

       

      
        	(d)  	
                Each
                  Borrower shall (and shall ensure that each of its Subsidiaries
                  will) take
                  all reasonable and practical steps to preserve and enforce its
                  rights
                  arising under the Purchase
                  Agreement.

              

      

       

      
        	(e)  	
                No
                  Borrower operates any defined benefit pension
                  schemes.

              

      

       

      
        	(f)  	
                Each
                  Borrower shall ensure that at all times any unsecured and unsubordinated
                  claims of the Lender against it under the Financing Agreements
                  rank at
                  least pari passu with the claims of all its other unsecured and
                  unsubordinated creditors except those creditors whose claims are
                  mandatorily preferred by laws of general application to
                  companies.

              

      

       

      
        	(g)  	
                The
                  Borrowers shall comply in all respects with sections 151
                  to 158 of
                  the Companies Act 1985, including in relation to the execution
                  of the
                  Financing Agreements and the payment of amounts due under this
                  Agreement.
                  

              

      

       

      
        	(h)  	
                No
                  Borrower shall permit or effect any variations, novations or amendments
                  to
                  the Purchase Agreement.

              

      

       

      
        
          
          

        

        
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      Section
        10. Events
        of Default And Remedies.

      

      10.1 Events
        of Default.
        The
        occurrence or existence of any one or more of the following events are referred
        to herein individually as an "Event of Default" and collectively as "Events
        of
        Default": 

       

      (a)
        any
        Borrower (i) fails to pay when due any of the Obligations (including any
        mandatory prepayment of Term Loan D or any Voluntary Prepayment, notice of
        intent to pay has been given by Borrower to Lender) or (ii) any Borrower
        fails
        to perform any of the terms, covenants, conditions or provisions contained
        in
        this Agreement or any of the other Financing Agreements except those described
        in Section 10(a)(i) above and such failure shall continue for ten (10) days;
        except that,
        such
        ten (10) day cure period shall not be applicable in the case of (A) any failure
        which cannot be cured at all or within such ten (10) day period, (B) an
        intentional breach by a Borrower or (C) a failure which has been the subject
        of
        a prior failure within the preceding three (3) months;

       

      (b)
        any
        representation, warranty or statement of fact made by any Borrower to Lender
        in
        this Agreement, the other Financing Agreements or any other agreement, schedule,
        confirmatory assignment or otherwise shall when made or deemed made be false
        or
        misleading in any material respect;

       

      (c)
        any
        Obligor revokes, terminates or fails to perform any of the terms, covenants,
        conditions or provisions of any guarantee, endorsement or other agreement
        of
        such party in favor of Lender or any representation, warranty or statements
        of
        fact made by any such Person in any such document shall when made or deemed
        made
        be false or misleading in any material respect;

       

      (d)
        any
        judgment for the payment of money is rendered against any Borrower or any
        Obligor in excess of $100,000 in any one case, or in excess of $200,000 in
        the
        aggregate and shall remain undischarged or unvacated for a period in excess
        of
        sixty (60) days or execution shall at any time not be effectively stayed,
        or any
        judgment other than for the payment of money, or injunction, attachment,
        garnishment or execution is rendered against Borrower or any Obligor or any
        of
        their assets;

       

      (e)
        any
        Borrower or any Obligor which is a partnership, limited liability company,
        limited liability partnership or a corporation(wherever organized or
        constituted), dissolves or suspends or discontinues doing business;

       

      (f)
        any
        Borrower shall not be Solvent or any Borrower shall make an assignment for
        the
        benefit of creditors, make or send notice of a bulk transfer or call a meeting
        of its creditors or principal creditors;

       

      (g)
        a
        case or proceeding under the bankruptcy laws of the United States of America
        now
        or hereafter in effect or under any insolvency, reorganization, receivership,
        readjustment of debt, dissolution, winding up or liquidation law or statute
        of
        any jurisdiction now or hereafter in effect (whether at law or in equity)
        is
        filed against any Borrower or any Obligor or all or any part of their respective
        properties and such petition or application is not dismissed within thirty(30)
        days after the date of its filing or any Borrower or any Obligor shall file
        any
        answer admitting or not contesting such petition or application or indicates
        its
        consent to, acquiescence in or approval of any such action or proceeding
        or the
        relief requested is granted sooner.

       

      
        
          
          

        

        
          -73-

          
            

          

        

        
          
          

        

      

      (h)
        a
        case or proceeding under the bankruptcy laws of the United States of America
        now
        or hereafter in effect or under any insolvency, reorganization, receivership,
        readjustment of debt, dissolution or liquidation law or statute of any
        jurisdiction now or hereafter in effect (whether at a law or equity) is filed
        by
        any Borrower or any Obligor or for all or any part of its property;

       

      (i)
        any
        default by any Borrower or any Obligor under any agreement, document or
        instrument relating to any indebtedness for borrowed money owing to any person
        other than Lender, or under any Capital Lease obligations, contingent
        indebtedness in connection with any guarantee, letter of credit, indemnity
        or
        similar type of instrument in favor of any person other than Lender, in any
        case
        in an amount in excess of $100,000, which default continues for more than
        the
        applicable cure period, if any, with respect thereto, or any default by any
        Borrower or any Obligor under any Material Contract, including any Manufacturing
        Contract or, lease, license, or other obligation to any person other than
        Lender, which default continues for more than the applicable cure period,
        if
        any, with respect thereto;

       

      (j)
        there
        shall be a Change of Control or change in the present senior management of
        Inyx
        or any Borrower;

       

      (k)
        the
        indictment or threatened indictment of Inyx, any Borrower or any Obligor
        under
        any criminal statute, or commencement or threatened commencement of any criminal
        or civil proceedings against Inyx, any Borrower or any Obligor, pursuant
        to
        which statute or proceedings the penalties or remedies sought or available
        include forfeiture of any of the property of any Borrower or any
        Obligor;

       

      (l)
        there
        shall be a material adverse change in the business, assets or prospects of
        Inyx,
        any Borrower or any Obligor after the date hereof; 

       

      (m)
        there
        shall be an event of default under any of the other Financing
        Agreements;

       

      (n)
        there
        shall be an event of default under any of the Parent Financing Agreements;
        or

       

      (o)
        there
        shall be any pending or threatened action or proceeding relating to the
        suspension, revocation or termination of any License or there shall exist
        a
        material violation of any term or provision thereof or a Borrower shall
        otherwise not be operating in full compliance with all material terms
        thereof.

      

      10.2 Remedies.

       

      (a) At
        any
        time an Event of Default exists or has occurred and is continuing, Lender
        shall
        have all rights and remedies provided in this Agreement, the other Financing
        Agreements, the Uniform Commercial Code and other applicable law, including
        English law, all of which rights and remedies may be exercised without notice
        to
        or consent by Borrower or any Obligor except as such notice or consent is
        expressly provided for hereunder or required by applicable law. All rights,
        remedies and powers granted to Lender hereunder, under any of the other
        Financing Agreements, the Uniform Commercial Code, English law or other
        applicable law, are cumulative, not exclusive and enforceable, in Lender's
        discretion, alternatively, successively, or concurrently on any one or more
        occasions, and shall include, without limitation, the right to apply to a
        court
        of equity for an injunction to restrain a breach or threatened breach by
        Borrowers of this Agreement or any of the other Financing Agreements. Lender
        may, at any time or times, proceed directly against Borrowers or any Obligor
        to
        collect the Obligations without prior recourse to the Collateral.

      

      
        
          
          

        

        
          -74-

          
            

          

        

      

      (b) Without
        limiting the foregoing, at any time an Event of Default exists or has occurred
        and is continuing, Lender may, in its discretion and without limitation,
        (i)
        accelerate the payment of all Obligations and demand immediate payment thereof
        to Lender (provided,
        that,
        upon
        the occurrence of any Event of Default described in Sections 10.1(g), or
        10.1(h), all Obligations shall automatically become immediately due and
        payable), (ii) with or without judicial process or the aid or assistance
        of
        others, enter upon any premises on or in which any of the Collateral may
        be
        located and take possession of the Collateral or complete processing,
        manufacturing and repair of all or any portion of the Collateral, (iii) require
        Borrower at Borrowers’ expense, to assemble and make available to Lender any
        part or all of the Collateral at any place and time designated by Lender,
        (iv)
        collect, foreclose, receive, appropriate, setoff and realize upon any and
        all
        Collateral, (v) remove any or all of the Collateral from any premises on
        or in
        which the same may be located for the purpose of effecting the sale, foreclosure
        or other disposition thereof or for any other purpose, (vi) sell, lease,
        transfer, assign, deliver or otherwise dispose of any and all Collateral
        (including entering into contracts with respect thereto, public or private
        sales
        at any exchange, broker's board, at any office of Lender or elsewhere) at
        such
        prices or terms as Lender may deem reasonable, for cash, upon credit or for
        future delivery, with the Lender having the right to purchase the whole or
        any
        part of the Collateral at any such public sale, all of the foregoing being
        free
        from any right or equity of redemption of Borrowers, which right or equity
        of
        redemption is hereby expressly waived and released by Borrowers and/or (vii)
        terminate this Agreement. If any of the Collateral is sold or leased by Lender
        upon credit terms or for future delivery, the Obligations shall not be reduced
        as a result thereof until payment therefor is finally collected by Lender.
        If
        notice of disposition of Collateral is required by law, ten (10) days prior
        notice by Lender to Borrower designating the time and place of any public
        sale
        or the time after which any private sale or other intended disposition of
        Collateral is to be made, shall be deemed to be reasonable notice thereof
        and
        Borrowers waive any other notice. In the event Lender institutes an action
        to
        recover any Collateral or seeks recovery of any Collateral by way of prejudgment
        remedy, Borrowers waive the posting of any bond which might otherwise be
        required.

       

      (c) Lender
        may apply the cash proceeds of Collateral actually received by Lender from
        any
        sale, lease, foreclosure or other disposition of the Collateral to payment
        of
        the Obligations, in whole or in part and in such order as Lender may elect,
        whether or not then due. Borrowers shall remain liable to Lender for the
        payment
        of any deficiency with interest at the highest rate provided for herein and
        all
        costs and expenses of collection or enforcement, including attorneys' fees
        and
        legal expenses.

       

      (d) Without
        limiting the foregoing, upon the occurrence of an Event of Default or an
        event
        which with notice or passage of time or both would constitute an Event of
        Default, Lender may, at its option, without notice, (i) cease making Loans
        or
        providing Letter of Credit Accommodations or reduce the lending formulas
        or
        amounts of Loans and Letter of Credit Accommodations available to Borrowers
        and/or (ii) terminate any provision of this Agreement providing for any future
        Loans or Letter of Credit Accommodations to be made or provided by Lender
        to
        Borrowers.

       

      (e)
        For
        the purpose of enabling Lender to exercise the rights and remedies hereunder,
        each Borrower hereby grants to Lender, effective as of the occurrence of
        any
        Event of Default, to the extent assignable, an irrevocable, non-exclusive
        license ( exercisable without payment of royalty or other compensation to
        Borrowers) to use or assign any of the trademarks, service marks, trade names,
        business names, trade styles, designs, logos and other source of business
        identifiers and other Intellectual Property and general intangibles now owned
        or
        hereafter acquired by such Borrower, wherever the same maybe located, including
        in such license reasonable access to all media in which any of the licensed
        items may be recorded or stored and to all computer programs used for the
        complication or printout thereof.

      

      
        
          
          

        

        
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      10.3
        Special
        Event of Default.

       

      (a)
        The
        occurrence or existence of the following event shall be an additional “Event of
        Default”:

       

      (i)
        Any
        condition precedent specified in Section 4.1 hereof, the satisfaction of
        which
        has been deferred by Lender, is not fulfilled and satisfied on or prior to
        the
        date to which fulfillment and satisfaction thereof has been deferred (whether
        or
        not such condition is capable of being fulfilled or satisfied by Borrower);
        and

       

      (ii)
        Lender shall give notice to Borrower that it is declaring an Event of
        Default.

       

      (b)
        On
        the occurrence and during the continuance of an Event of Default specified
        in
        this Section 10.3 Lender shall be entitled to all rights and remedies hereunder,
        including without limitation those set forth in Section 10.2 hereof, under
        the
        other Financing Agreements, and at law.

      

      10.4
        special
        United Kingdom Events Of Default.

       

      The
        occurrence or existence of any one or more of the following events t shall
        each
        be an additional “Event of Default”:

       

      
        	(a)  	
                Any
                  Borrower or Obligor incorporated in the United Kingdom is unable
                  or admits
                  inability to pay its debts as they fall due, suspends making payments
                  on
                  any of its debts or, by reason of actual or anticipated financial
                  difficulties, commences negotiations with one or more of its creditors
                  with a view to rescheduling any of its
                  indebtedness.

              

      

       

      
        	(b)  	
                The
                  value of the assets of any Borrower or Obligor incorporated in
                  the United
                  Kingdom is less than its liabilities (taking into account contingent
                  and
                  prospective liabilities).

              

      

       

      
        	(c)  	
                A
                  moratorium or other protection from its creditors is declared or
                  imposed
                  in respect of any indebtedness of any Borrower or Obligor incorporated
                  in
                  the United Kingdom.

              

      

       

      
        	(d)  	
                Any
                  corporate action, legal proceedings or other procedure or step
                  is taken
                  (including the making of an application, the presentation of a
                  petition,
                  the filing or service of a notice or the passing of a resolution)
                  in
                  relation to:

              

      

       

      
        
          
          

        

        
          -76-

          
            

          

        

         

      

      (i)
        the
        suspension of payments, a moratorium of any indebtedness, winding-up,
        dissolution, administration or reorganisation (by way of voluntary arrangement,
        scheme of arrangement or otherwise) of any Borrower or Obligor incorporated
        in
        the United Kingdom or, in the case of a winding-up, a winding up petition
        which
        is proved to the satisfaction of the Administrative Agent (acting in good
        faith)
        to be an abuse of process or have no real prospect of success and which is,
        in
        any event, discharged within three days of its presentation and before it
        is
        advertised;

       

      (ii)
        a
        composition, compromise, assignment or arrangement with any creditor of any
        Borrower or Obligor incorporated in the United Kingdom;

       

      (iii)
        the
        appointment of a liquidator, supervisor, receiver, administrative receiver,
        administrator, compulsory manager, trustee or other similar officer in respect
        of any Borrower or Obligor incorporated in the United Kingdom or any of its
        assets; or

       

      (iv)
        enforcement of any security over any assets of any
        Borrower or Obligor incorporated in the United Kingdom, or any analogous
        procedure or step is taken in any jurisdiction.

       

      
        	
              	(e)	
                Any
                  expropriation, attachment, sequestration, distress or execution
                  affects
                  any asset or assets of a Borrower.

              

      

       

      
        	
              	(f)	
                Inyx
                  EU redeems or purchases any of its shares or otherwise reduces
                  its issued
                  share capital.

              

      

       

      
        	
              	(g)	
                The
                  Auditors qualify (other than a qualification of a purely technical
                  nature)
                  their report on any audited accounts of either
                  Borrower.

              

      

       

      
        	
              	(h)	
                Any
                  party to the Financing Agreements or the Purchase Agreement (other
                  than
                  the Lender) rescinds or purports to rescind any of those agreements
                  in
                  whole or in part where to do so would or could be expected to have
                  a
                  Material Adverse Effect.

              

      

       

      
        	
              	(i)	
                Any
                  party to a Financing Agreement other than the Lender repudiates
                  a
                  Financing Agreement or evidences an intention to repudiate a Financing
                  Agreement.

              

      

       

      
        	
              	(j)	
                It
                  is or becomes unlawful for any party to any Financing Agreement
                  other than
                  the Lender to perform any of its obligations under the Financing
                  Agreements.

              

      

       

      
        
          
          

        

        
          -77-

          
            

          

        

        Section
          11. Jury
          Trial Waiver; Other Waivers And Consents; Governing Law.

      

      

      11.1 Governing
        Law; Choice of Forum; Service of Process; Jury Trial Waiver.

       

      (a) The
        validity, interpretation and enforcement of this Agreement and the other
        Financing Agreements and any dispute arising out of the relationship between
        the
        parties hereto with respect thereto, whether in contract, tort, equity or
        otherwise, shall, except where a Financing Agreement shall specifically provide
        otherwise, be governed by the internal laws of the Commonwealth of Puerto
        Rico
        (without giving effect to principles of conflicts of law). If a Financing
        Agreement shall specially provide for a choice of governing law other than
        the
        law of the Commonwealth of Puerto Rico, then the interpretation and enforcement
        thereof and any dispute between the parties thereto in respect thereof, whether
        in contract, tort, equity or otherwise shall be governed by the internal
        laws of
        the jurisdiction selected (without giving effect to principles of conflicts
        of
        law).

       

      (b) Borrowers
        and Lender irrevocably consent and submit to the non-exclusive jurisdiction
        of
        the United States District Court for the District of Puerto Rico and to the
        Court of First Instance, (Superior Court) of San Juan, Puerto Rico and waive
        any
        objection based on venue or forum non conveniences
        with
        respect to any action instituted therein arising under this Agreement or
        any of
        the other Financing Agreements or in any way connected with or related or
        incidental to the dealings of the parties hereto in respect of this Agreement
        or
        any of the other Financing Agreements or the transactions related hereto
        or
        thereto, in each case whether now existing or hereafter arising, and whether
        in
        contract, tort, equity or otherwise, and agree that any dispute with respect
        to
        any such matters shall be heard only in the courts described above (except
        that
        Lender shall have the right to bring any action or proceeding against Borrowers
        or its property in the courts of any other jurisdiction which Lender deems
        necessary or appropriate in order to realize on the Collateral or to otherwise
        enforce its rights against Borrowers and its property).

       

      (c)
        Each
        Borrower hereby waives personal service of any and all process upon it and
        consents that all such service of process may be made by certified mail (return
        receipt requested) directed to its address set forth on the signature pages
        hereof and service so made shall be deemed to be completed ten (10) days
        after
        the same shall have been so deposited in the U.S. mails, or, at Lender's
        option,
        by service upon a Borrower in any other manner provided under the rules of
        any
        such courts. Within thirty (30) days after such service, the Person so served
        shall appear in answer to such process, failing which such Person shall be
        deemed in default and judgment may be entered by Lender against such Person
        for
        the amount of the claim and other relief requested.

       

      (d) BORROWERS
        AND LENDER EACH HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND,
        ACTION OR CAUSE OF ACTION (i) ARISING UNDER THIS AGREEMENT OR ANY OF THE
        OTHER
        FINANCING AGREEMENTS OR (ii) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL
        TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR ANY
        OF THE
        OTHER FINANCING AGREEMENTS OR THE TRANSACTIONS RELATED HERETO OR THERETO
        IN EACH
        CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT,
        TORT,
        EQUITY OR OTHERWISE. BORROWERS AND LENDER EACH HEREBY AGREE AND CONSENT THAT
        ANY
        SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL
        WITHOUT A JURY AND THAT BORROWERS OR LENDER MAY FILE AN ORIGINAL COUNTERPART
        OF
        A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT
        OF
        THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

       

      
        
          
          

        

        
          -78-

          
            

          

        

      

      (e) Lender
        shall not have any liability to Borrowers (whether in tort, contract, equity
        or
        otherwise) for losses suffered by it in connection with, arising out of,
        or in
        any way related to the transactions or relationships contemplated by this
        Agreement, or any act, omission or event occurring in connection herewith,
        unless it is determined by a final and non-appealable judgment or court order
        binding on Lender, that the losses were the result of acts or omissions
        constituting gross negligence or willful misconduct. In any such litigation,
        Lender shall be entitled to the benefit of the rebuttable presumption that
        it
        acted in good faith and with the exercise of ordinary care in the performance
        by
        it of the terms of this Agreement.

      

      11.2 Waiver
        of Notices.
        Each
        Borrower hereby expressly waives demand, presentment, protest and notice
        of
        protest and notice of dishonor with respect to any and all instruments and
        commercial paper, included in or evidencing any of the Obligations or the
        Collateral, and any and all other demands and notices of any kind or nature
        whatsoever with respect to the Obligations, the Collateral and this Agreement,
        except such as are expressly provided for herein. No notice to or demand
        on
        Borrowers which Lender may elect to give shall entitle it to any other or
        further notice or demand in the same, similar or other
        circumstances.

      

      11.3 Amendments
        and Waivers.
        Neither
        this Agreement nor any provision hereof shall be amended, modified, waived
        or
        discharged orally or by course of conduct, but only by a written agreement
        signed by an authorized officer of Lender, and as to amendments, as also
        signed
        by an authorized officer of Borrowers. Lender shall not, by any act, delay,
        omission or otherwise be deemed to have expressly or impliedly waived any
        of its
        rights, powers and/or remedies unless such waiver shall be in writing and
        signed
        by an authorized officer of Lender. Any such waiver shall be enforceable
        only to
        the extent specifically set forth therein. A waiver by Lender of any right,
        power and/or remedy on any one occasion shall not be construed as a bar to
        or
        waiver of any such right, power and/or remedy which Lender would otherwise
        have
        on any future occasion, whether similar in kind or otherwise.

      

      11.4 Waiver
        of Counterclaims.
        Each
        Borrower waives all rights to interpose any claims, deductions, setoffs or
        counterclaims of any nature (other than compulsory counterclaims) in any
        action
        or proceeding with respect to this Agreement, the Obligations, the Collateral
        or
        any matter arising therefrom or relating hereto or thereto.

       

      11.5 Indemnification.
        Borrowers shall indemnify and hold Lender, and its directors, agents, employees
        and counsel (collectively “Indemnified Persons”), harmless from and against any
        and all losses, claims, damages, liabilities, costs or expenses imposed on,
        incurred by or asserted against any of them in connection with any litigation,
        investigation, claim or proceeding commenced or threatened related to the
        negotiation, preparation, execution, delivery, enforcement, performance or
        administration of this Agreement, any other Financing Agreement, or any
        undertaking or proceeding related to any of the transactions contemplated
        hereby
        or by the Purchase Agreements or any act, omission, event or transaction
        related
        or attendant thereto, including amounts paid in settlement, court costs,
        and the
        fees and expenses of counsel (the “Indemnified Liabilities”). To the extent that
        the undertaking to indemnify, pay and hold harmless set forth in this Section
        may be unenforceable because it violates any law or public policy, Borrower
        shall pay the maximum portion which it is permitted to pay under applicable
        law
        to Lender in satisfaction of indemnified matters under this Section. The
        foregoing indemnity shall survive the payment of the Obligations and the
        termination or non-renewal of this Agreement.

      

      
        
          
          

        

        
          -79-

          
            

          

        

        Section
          12. Term
          of Agreement; Miscellaneous.

      

      

      12.1 Term.

       

      (a) This
        Agreement and the other Financing Agreements shall become effective as of
        the
        date set forth on the first page hereof and shall continue in full force
        and
        effect for a term ending on March 31, 2008 (the “Renewal Date”) and from year to
        year thereafter, unless sooner terminated pursuant to the terms hereof. Lender
        or Borrowers may terminate this Agreement and the other Financing Agreements
        effective on the Renewal Date or on the anniversary of the Renewal Date in
        any
        year by giving the other party at least ninety (90) days prior written notice;
        provided that,
        this
        Agreement and all other Financing Agreements must be terminated simultaneously.
        Upon the effective date of termination or non-renewal of the Financing
        Agreements, Borrowers shall pay to Lender, in full, all outstanding and unpaid
        Obligations and shall furnish cash collateral to Lender in such amounts as
        Lender determines are reasonably necessary to secure Lender from loss, cost,
        damage or expense, including attorneys' fees and legal expenses, in connection
        with any contingent Obligations, including issued and outstanding Letter
        of
        Credit Accommodations and checks or other payments provisionally credited
        to the
        Obligations and/or as to which Lender has not yet received final and
        indefeasible payment. Such payments in respect of the Obligations and cash
        collateral shall be remitted by wire transfer in Federal funds to such bank
        account of Lender, as Lender may, in its discretion, designate in writing
        to
        Borrower for such purpose. Interest shall be due until and including the
        next
        business day, if the amounts so paid by Borrowers to the bank account designated
        by Lender are received in such bank account later than 12:00 noon, Atlantic
        Standard Time.

       

      (b) No
        termination of this Agreement or the other Financing Agreements shall relieve
        or
        discharge any Borrower or any Obligor of its respective duties, obligations
        and
        covenants under this Agreement, the other Financing Agreements, until all
        Obligations have been fully and finally discharged and paid, and Lender's
        continuing security interest in the Collateral and the rights and remedies
        of
        Lender hereunder, under the other Financing Agreements, and applicable law,
        shall remain in effect until all such Obligations have been fully and finally
        discharged and paid.

      

      
        
          
          

        

        
          -80-

          
            

          

        

        
          
          

        

      

      (c)
        Upon
        the written request of Borrowers, after the effective date of the termination
        or
        non-renewal of this Agreement, Lender shall deliver to Borrowers, at Borrowers’
        cost and expense, UCC-3 termination statements and other termination statements
        and a release and reassignment of trademarks, patents, and copyrights, each
        in
        form and substance satisfactory to Lender, necessary to evidence the termination
        of Lender’s security interests in and lien upon the Collateral, provided that,
        each of
        the following conditions is satisfied: (i) Lender shall have received payment
        in
        full in cash and performance of all outstanding and unpaid Obligations and
        the
        delivery to Lender of cash collateral in such amounts as Lender determines
        are
        reasonably necessary to secure Lender from loss, cost, damage or expense,
        including attorneys’ fees and legal expenses, in connection with any contingent
        Obligations, including issued and outstanding Letter of Credit Accommodations
        and checks or other payments provisionally credited to the Obligations and/or
        as
        to which Lender has not yet received final and indefeasible payment, and
        upon
        the release of all claims against Lender, (ii) Lender shall have received
        a
        written release by Borrowers and all Obligors, of Lender and the other
        Indemnified Parties, in form and substance satisfactory to Lender, duly
        authorized, executed and delivered by Borrowers and all Obligors, and (iii)
        no
        suits, actions, proceedings or claims are pending or threatened against any
        Indemnified Person asserting any damages, losses or liabilities that are
        Indemnified Liabilities. Accordingly each Borrower waives any rights which
        it
        may have under the Uniform Commercial Code or other applicable law to demand
        the
        filing of termination statements with respect to the Collateral and Lender
        shall
        not be required to send such termination statements to Borrower or to file
        them
        with any filing office, unless and until this Agreement is terminated in
        accordance with its terms, the conditions specified in this Section 12.1(c)
        satisfied and all of the Obligations indefeasibly paid in immediately available
        funds.

      

      12.2
        Notices.
        All
        notices, requests and demands hereunder shall be in writing and (a) made
        to
        Lender at its address set forth below and to Borrowers at Borrower’s chief
        executive office set forth below, or to such other address as any party may
        designate by written notice to the other in accordance with this provision,
        and
        (b) deemed to have been given or made: if delivered in person, immediately
        upon
        delivery; if by telex, telegram or facsimile transmission, immediately upon
        sending and upon confirmation of receipt; if by nationally recognized overnight
        courier service with instructions to deliver the next business day, one (1)
        business day after sending; and if by certified mail, return receipt requested,
        five (5) days after mailing.

      

      12.3
        Partial
        Invalidity.
        If any
        provision of this Agreement is held to be invalid or unenforceable, such
        invalidity or unenforceability shall not invalidate this Agreement as a whole,
        but this Agreement shall be construed as though it did not contain the
        particular provision held to be invalid or unenforceable and the rights and
        obligations of the parties shall be construed and enforced only to such extent
        as shall be permitted by applicable law.

      

      12.4
        Successors.
        This
        Agreement, the other Financing Agreements and any other document referred
        to
        herein or therein shall be binding upon and inure to the benefit of and be
        enforceable by Lender, Borrower and its successors and assigns, except that
        Borrower may not assign its rights under this Agreement, the other Financing
        Agreements and any other document referred to herein or therein without the
        prior written consent of Lender. Lender may, after notice to Borrower, assign
        its rights and delegate its obligations under this Agreement and the other
        Financing Agreements and further may assign, or sell participation in, all
        or
        any part of the Loans, the Letter of Credit Accommodations or any other interest
        herein to another financial institution or other person, in which event,
        the
        assignee or participant shall have, to the extent of such assignment or
        participation, the same rights and benefits as it would have if it were the
        Lender hereunder, except as otherwise provided by the terms of such assignment
        or participation.

      

       

      
        
          
          

        

        
          -81-

          
            

          

        

      

      12.5
        Entire
        Agreement.
        This
        Agreement, the other Financing Agreements, any supplements hereto or thereto,
        and any instruments or documents delivered or to be delivered in connection
        herewith or therewith represents the entire agreement and understanding
        concerning the subject matter hereof and thereof between the parties hereto,
        and
        supersedes all other prior agreements, understandings, negotiations and
        discussions, representations, warranties, commitments, proposals, offers
        and
        contracts concerning the subject matter hereof, whether oral or written.
        In the
        event of any inconsistency between the terms of this Agreement and any schedule
        or exhibit hereto, the terms of this Agreement shall govern.

      

      12.6
        Additional
        Interpretative Provision.
        (a) All
        financial computations hereunder shall be computed unless otherwise specifically
        provided herein, in accordance with GAAP as consistently applied and using
        the
        same method for inventory valuation as used in the preparation of the financial
        statements of Borrowers most recently received by Lender prior to the date
        hereof.

       

      (b)
        In
        the computation of periods of time from a specified date to a later specified
        date, the word “from” means “from and including”, the words “to” and “until”
        each mean “to but excluding” and the word “through” means “to and
        including”.

       

      (c)
        Unless otherwise expressly provided herein, (i) references herein to any
        agreement, document or instrument shall be deemed to include all subsequent
        amendments, modifications, supplements, extensions, renewals, restatements
        or
        replacements with respect thereto, but only to the extent the same are not
        prohibited by the terms hereof or of any other Financing Agreement, and (ii)
        references to any statute or regulation are to be construed as including
        all
        statutory and regulatory provisions consolidating, amending, replacing,
        recodifying, supplementing or interpreting the statute or
        regulation.

       

      (d)
        The
        captions and headings of this Agreement are for convenience of reference
        only
        and shall not affect the interpretation of this Agreement.

       

      (e)
        This
        Agreement and other Financing Agreements may use several different limitations,
        tests or measurements to regulate the same or similar matters. All such
        limitations, tests and measurements are cumulative and shall each be performed
        in accordance with their terms.

       

      (f)
        This
        Agreement and the other Financing Agreements are the results of negotiations
        among and have been reviewed by counsel to Lender and the other parties,
        and are
        the products of all parties. Accordingly, this Agreement and the other Financing
        Agreements shall not be construed against Lender merely because of Lender’s
        involvement in their preparation.

       

      (g)
        Whenever any action or inaction hereunder is based on or may be taken or
        omitted
        in the discretion of Lender such discretion shall mean the sole and absolute
        discretion of Lender.

      

      
        
          
          

        

        
          -82-

          
            

          

        

      

      12.7
        Multiple
        Borrowers.
        References to Borrower wherever used in this Agreement, shall mean each and
        all
        of Borrowers, if more than one and their respective successors and assigns,
        individually and collectively, jointly and severally, primarily and
        unconditionally. The liability of each Borrower hereunder shall be absolute,
        primary and unconditional, joint and several.

       

      12.8
        Conflicts:
        In the
        event of any inconsistency or conflicts in any of the terms or provisions
        of the
        Financing Agreements, including this Agreement, that which is most favorable
        to
        Lender shall control.

      

      12.9
        Consolidated
        Determinations.
        Notwithstanding any other provision of this Agreement, the Adjusted Net Worth,
        Tangible Net Worth, EBITDA, Excess Cash Flow, Net Income After Tax, Income
        Before Taxes and Working Capital of Borrower and any other determinations
        which
        under GAAP or otherwise would be made on a consolidated basis, shall, if
        specified by Lender, be determined for Inyx, Inyx EU and CMSL separately,
        Inyx,
        Inyx EU and CMSL on a consolidated and consolidating basis or for Inyx and
        its
        Subsidiaries on a consolidated basis and consolidating basis, as Lender may
        elect.

      

      12.10
        Appointment
        of Borrowers’ Agent
        (a) Each
        Borrower hereby irrevocably appoints Inyx EU as Borrowers’ Agent hereunder and
        Inyx EU hereby agrees to act in such capacity as agent for such Borrowers
        hereunder. Each Borrower further irrevocably authorizes Borrowers’ Agent to take
        such action on such Borrower’s behalf and to exercise such rights and powers
        hereunder as are exercisable by any Borrower.

       

      (b)
        Borrowers’ Agent is hereby expressly and irrevocably authorized by each
        Borrower, without hereby limiting any implied or express authority, (i) to
        give
        and receive on behalf of such Borrower all notices and other materials delivered
        or provided to be delivered by Lender to such Borrower or by such Borrower
        to
        Lender pursuant to the Financing Agreements, (ii) to request Revolving Loans,
        Term Loans and Letter of Credit Accommodations on behalf of such Borrower,
        and
        (iii) to pay, on behalf of such Borrower, all Obligations at any time due
        Lender
        for the benefit of Lender pursuant to the terms of this Agreement.

      

      12.11
        Special
        Disbursement Procedure.
        Lender
        shall disburse and provide all Term Loans only to Inyx EU; although repayment
        thereof and all interest, fees and other charges associated therewith will
        be
        guaranteed and may otherwise be made by CMSL.

       

      
        
          
          

        

        
          -83-

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, Lender and Borrower have caused these presents to be duly
        executed as of the day and year first above written.

      

      LENDER:

       

      Westernbank
        Puerto Rico

       

       

      By:
        /s/ Miguel A Vazquez_______

      Miguel
        A.
        Vazquez

      Title:
        President

      Business
        Credit Division

       

      Address:
        268 Munoz Rivera Avenue

      Suite
        600
        6th
        Floor

      Westernbank
        World Plaza

      Hato
        Rey,
        Puerto Rico 00918

       

      BORROWERS:

       

      Inyx
        Europe Limited.

       

       

      By:
        /s/ Jack Kachkar       

             
        Name: Jack Kachkar

      Title:
        Director

       

       

      By:
        /s/ Jay M. Green  

      Name:
        Jay
        M. Green

      Title: Director

       

      (SEAL)

      Address:   
        Innovation
        House

      6
        Seymour
        Court

      Manor
        Park

      Runcorn
        Cheshire

      England

      Attest:

      

      /s/
        Rima Goldshmidt

      Secretary
        

      Rima
        Goldshmidt

      

      

      
        
          
          

        

        
          -84-

          
            

          

        

        
          
          

        

      

      Celltech
        Manufacturing Services Limited

       

       

      By:
        /s/ Jack
        Kachkar                                    
        

      Name:
        Jack Kachkar

      Title:
        Director

       

       

      By:
        /s/ Jay M. Green_______________

      Name:
        Jay
        M. Green

      Title:
        Director

       

      Address:   
        Vale
        of
        Bardsley

      Ashton-Under-Lyne

      Lancashire

      England

      OL7
        9RR

      

      

      
        
          
          

        

        -85-

        
          

        

      

      
        
        

      

    

     

    

    Disclosure
      schedules omitted and will be supplied by request from the Securites and
      Exchange Commission.

     

     

     

    
      
        
        

      

      
        -86-TERM
        PROMISSORY NOTE

       

      Exhibit
        10.2

      Term
        Loan A

      $3,000,000

      San
        Juan, Puerto Rico

      
        	August 30, 2005	
                 Due:
                  March 31,
                  2008

              

      

            

      

      FOR
        VALUE
        RECEIVED, the undersigned (the “Borrowers”),hereby unconditionally, jointly and
        severally, primarily and unconditionally, promise to pay to the order of
        WESTERNBANK PUERTO RICO, a Puerto Rico banking corporation (the “Lender”), at
        the offices of Lender at Westernbank World Plaza, Suite 600, 268 Munoz Rivera
        Avenue, Hato Rey, Puerto Rico 00918, or at such other place as the Lender
        or any
        holder hereof may from time to time designate, the principal sum of Three
        Million Dollars ($3,000,000) in lawful money of the United States America
        and in
        immediately available funds, in twenty nine(29) consecutive monthly installments
        (or earlier as hereinafter provided), on the first day of each month commencing
        December 1, 2005, (a) of which the first twenty eight (28) payments shall
        be in
        the amount of $16,667.00 each and (b) with a final payment of $2,533,324.00
        and
        interest due on March 31, 2008 (or earlier as hereinafter
        provided).

      

      Borrowers
        hereby further promise to pay interest to the order of Lender on the unpaid
        principal balance hereof at the Interest Rate (as hereinafter defined). Such
        interest shall be paid in like money at said office or place from the date
        hereof, monthly on the first day of each month until full and final payment
        of
        the indebtedness evidenced by this Note, commencing on the first day of the
        month following the date on which this Note is executed and delivered by
        Borrowers to Lender and on the first day of each month thereafter. Interest
        payable upon and after an Event of Default or termination or non-renewal
        of the
        Loan And Security Agreement, between the Lender and the Borrowers, dated
        as of
        the date hereof (the “Loan Agreement”) shall be payable upon
        demand.

      

      For
        purposes hereof, the term “Interest Rate” shall mean (a) two percent (2.00%) per
        annum over the Prime Rate subject to adjustment under the circumstances and
        as
        provided in the Loan Agreement and (b) such rate as may be so adjusted, from
        time to time. The interest rate charged hereunder shall increase or decrease
        by
        an amount equal to each increase or decrease respectively, in said Prime
        Rate,
        effective on the first day of the month after any change in the Prime Rate
        shall
        occur. The increase or decrease shall be based on the Prime Rate in effect
        on
        the last day of the month in which any such change occurs. Interest shall
        be
        calculated on the basis of a three hundred and sixty (360) day year and actual
        days elapsed. At no time will the Interest Rate be less than seven and one
        half
        percent (7.50%) per annum. In no event shall interest charged hereunder exceed
        the maximum permitted under the laws of the Commonwealth of Puerto Rico or
        other
        applicable law.

      

      Interest
        shall be payable at Lender’s option, without notice, at the rate of four percent
        (4.00%) per annum in excess of the Prime Rate, from and after the maturity
        hereof or after the date of the occurrence of an Event of Default, and for
        so
        long as such Event of Default is continuing as determined by Lender and until
        such time as Lender has received full and final payment of all Obligations
        (notwithstanding the entry of any judgment against a Borrower).

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      Lender’s
        charges shall be included in each monthly statement of Borrowers’ loan account.
        Lender shall have the right, at Lender’s option, to charge all such interest
        charges and fees (including, without limitation, any retroactive interest
        as
        provided in the Loan Agreement) to Borrowers’ loan account on the first day of
        each month, and such interest charges shall be deemed to be paid by the first
        amounts subsequently credited thereto.

      

      This
        Note
        is issued pursuant to the terms and provisions of the Loan Agreement to evidence
        the Term Loan B by Lender to Borrowers. This Note is secured by the Collateral
        described in the Loan Agreement and all notes, guarantees, security agreements
        and other agreements, documents and instruments now or at any time hereafter
        executed and/or delivered by a Borrower or any other party in connection
        therewith (all of the foregoing, together with the Loan Agreement, as the
        same
        now exist or may hereafter be amended, modified, supplemented, renewed,
        extended, restated or replaced, being collectively referred to herein as
        the
“Financing Agreements”), and is entitled to all of the benefits and rights
        thereof and of the other Financing Agreements. Capitalized terms used herein,
        not otherwise defined herein, shall have the respective meanings prescribed
        in
        the Loan Agreement. At the time any payment is due hereunder (including,
        without
        limitation, any retroactive interest as provided in the Loan Agreement),
        at its
        option, Lender may charge the amount thereof to any account of any Borrower
        maintained by Lender.

      

      If
        any
        payment of principal or interest is not made when due hereunder, or if any
        other
        Event of Default shall occur for any reason, or if the Loan Agreement shall
        be
        terminated or not renewed for any reason whatsoever, then and in any such
        event,
        in addition to all rights and remedies of Lender under the Financing Agreements,
        applicable law or otherwise, all such rights and remedies being cumulative,
        not
        exclusive and enforceable alternatively, successively and concurrently, Lender
        may, at its option, declare any or all of Borrowers’ obligations, liabilities
        and indebtedness owing to Lender under the Loan Agreement and the other
        Financing Agreements (the “Obligations”), including, without limitation, all
        amounts owing under this Note, to be due and payable, whereupon the then
        unpaid
        balance hereof, together with all interest accrued thereon, shall forthwith
        become due and payable, together with interest accruing thereafter at the
        then
        applicable Interest Rate stated above until the indebtedness evidenced by
        this
        Note is paid in full, plus the costs and expenses of collection hereof,
        including, but not limited to, attorneys’ fees and legal expenses.

      

      Borrowers
        (a) waive diligence, demand, presentment, protest and notice of any kind,
        (b)
        agrees that it will not be necessary for Lender to first institute suit in
        order
        to enforce payment of this Note and (c) consents to any one or more extensions
        or postponements of time of payment, release, surrender or substitution of
        collateral security, or forbearance or other indulgence, without notice or
        consent. The pleading of any statute of limitations as a defense to any demand
        against Borrowers is expressly hereby waived by Borrowers. Upon any Event
        of
        Default or termination or non-renewal of the Loan Agreement, Lender shall
        have
        the right, but not the obligation, to setoff against this Note all money
        owed by
        Lender to any Borrower.

      

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      Lender
        shall not be required to resort to any Collateral for payment, but may proceed
        against Borrowers and any guarantors or endorsers hereof in such order and
        manner as Lender may choose. None of the rights of Lender shall be waived
        or
        diminished by any failure or delay in the exercise thereof.

       

      The
        validity, interpretation and enforcement of this Note and the other Financing
        Agreements and any dispute arising in connection herewith or therewith shall
        be
        governed by the internal laws of the Commonwealth of Puerto Rico (without
        giving
        effect to principles of conflicts of law).

      

      Borrowers
        irrevocably consent and submits to the non-exclusive jurisdiction of the
        Superior Court of San Juan and/or the United States District Court for the
        District of Puerto Rico and waives any objection based on venue or forum non conveniens
        with
        respect to any action instituted therein arising under this Note or any of
        the
        other Financing Agreements or in any way connected with or related or incidental
        to the dealings of Borrowers and Lender in respect of this Note or any of
        the
        other Financing Agreements or the transactions related hereto or thereto,
        in
        each case whether now existing or hereafter arising, and whether in contract,
        tort, equity or otherwise, and agrees that any dispute arising out of the
        relationship between Borrowers and Lender or the conduct of such persons
        in
        connection with this Note or otherwise shall be heard only in the courts
        described above (except that Lender shall have the right to bring any action
        or
        proceeding against any Borrower or its property in the courts of any other
        jurisdiction which Lender deems necessary or appropriate in order to realize
        on
        the Collateral or to otherwise enforce its rights against such Borrower or
        its
        property).

      

      Borrowers
        hereby waive personal service of any and all process upon it and consents
        that
        all such service of process may be made by certified mail (return receipt
        requested) directed to it and service so made shall be deemed to be completed
        five(5) days
        after the same shall have been so deposited in the U.S. mails, or , at Lender’s
        option, by service upon Borrowers in any other manner provided under the
        rules
        of any such courts. Within thirty (30) days after such service, Borrowers
        shall
        appear in answer to such process, failing which Borrowers shall be deemed
        in
        default and judgment may be entered by Lender against Borrowers for the amount
        of the claim and other relief requested.

      

      BORROWERS
        HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE
        OF
        ACTION (a) ARISING UNDER THIS NOTE OR (b) IN ANY WAY CONNECTED WITH OR RELATED
        OR RELATED OR INCIDENTAL TO THE DEALINGS BETWEEN BORROWER AND LENDER IN RESPECT
        OF THIS NOTE OR ANY OF THE OTHER FINANCING AGREEMENTS OR THE TRANSACTIONS
        RELATED HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
        ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE. BORROWERS AGREE
        AND
        CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE
        DECIDED
        BY COURT TRIAL WITHOUT A JURY.

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      The
        execution and delivery of this Note has been authorized by the Board of
        Directors and by any necessary vote or consent of the stockholders of Borrowers.
        Borrowers hereby authorize Lender to complete this Note in any particulars
        according to the terms of the loan evidenced hereby.

      

      This
        Note
        shall be binding upon the successors and assigns of Borrowers and inure to
        the
        benefit of Lender and its successors, endorsees and assigns. Whenever used
        herein, the term “Borrowers” shall be deemed to include their respective
        successors and assigns and the term “Lender” shall be deemed to include its
        successors, endorsees and assigns. If any term or provision of this Note
        shall
        be held invalid, illegal or unenforceable, the validity of all other terms
        and
        provisions hereof shall in no way be affected thereby.

      

      

      Inyx
        Europe Limited

      

      

      By:  /s/
        Jack Kachkar

      Name:
        Jack Kachkar

      Title:
        Director

      

      

      By:/s/
        Jay M. Green

      Name:
        Jay
        M. Green

      Title:
        Director

      

      

      Celltech
        Manufacturing Services Limited

      

      

      By:
        /s/
        Jack Kachkar

      Name:
        Jack Kachkar

      Title:
        Director

      

      

      By:
        /s/
        Jay
        M. Green

      Name:
        Jay
        M. Green

      Title:
        Director

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      

      Signed
        before me Emma
        Warne
        on
31
        August
        2005, a
        Solicitor of England And Wales by Jack
        Kachkar,
        personally known to me or who has produced a driver’s license or passport as
        identification, at Allen & Overy, One New Change, London, EC4M 9QQ,
        England.

      

      

       Emma
        Warne

       Solicitor

      

      

      

      Signed
        before me Emma
        Warne
        on
31
        August
        2005, a
        Solicitor of England And Wales by Jay
        Green,
        personally known to me or who has produced a driver’s license or passport as
        identification, at Allen & Overy, One New Change, London, EC4M 9QQ,
        England.

      

      

       Emma
        Warne

       Solicitor

      

      

      
        
          
          

        

        
          5

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