Document:

2019.02.06 8-K EX 4.5 - CAN Guarantee

Exhibit 4.5

AMENDED AND RESTATED CANADIAN GUARANTEE
dated as of January 31, 2019
among
MASONITE INTERNATIONAL CORPORATION
and
THE CANADIAN SUBSIDIARY GUARANTORS FROM TIME TO TIME PARTY HERETO
and
WELLS FARGO BANK, NATIONAL ASSOCIATION, 
as Administrative Agent

TABLE OF CONTENTS

	
				
	ARTICLE I CANADIAN GUARANTY
	2
	

	 
	 
	 

	Section 1.01
	The Canadian Guaranty.
	2
	

	Section 1.02
	Guarantee Absolute; Waiver by the Canadian Guarantors.
	4
	

	Section 1.03
	Payments.
	8
	

	Section 1.04
	Discharge; Reinstatement in Certain Circumstances.
	10
	

	Section 1.05
	Security for Guaranty.
	11
	

	Section 1.06
	Agreement to Pay; Subordination of Subrogation Claims.
	11
	

	Section 1.07
	Stay of Acceleration.
	12
	

	Section 1.08
	No Set-Off.
	12
	

	 
	 
	 

	ARTICLE II SECURITY INTERESTS
	12
	

	 
	 
	 

	Section 2.01
	Indemnity and Subrogation.
	12
	

	Section 2.02
	Contribution and Subrogation.
	13
	

	 
	 
	 

	ARTICLE III REPRESENTATIONS, WARRANTIES AND COVENANTS
	13
	

	 
	 
	 

	Section 3.01
	Representations and Warranties; Certain Agreements.
	13
	

	Section 3.02
	Information.
	13
	

	Section 3.03
	Subordination by Canadian Guarantors.
	14
	

	 
	 
	 

	ARTICLE IV SET-OFF
	14
	

	 
	 
	 

	Section 4.01
	Right of Set-Off.
	14
	

	 
	 
	 

	ARTICLE V MISCELLANEOUS
	14
	

	 
	 
	 

	Section 5.01
	Notices.
	14
	

	Section 5.02
	Benefit of Agreement.
	15
	

	Section 5.03
	No Waivers; Non-Exclusive Remedies.
	16
	

	Section 5.04
	Enforcement.
	16
	

	Section 5.05
	Amendments and Waivers.
	16
	

	Section 5.06
	Governing Law; Submission to Jurisdiction.
	16
	

	Section 5.07
	Limitation of Law; Severability.
	17
	

	Section 5.08
	Counterparts; Integration; Effectiveness.
	17
	

	Section 5.09
	Waiver of Jury Trial.
	18
	

	Section 5.10
	Additional Canadian Guarantors.
	18
	

	Section 5.11
	Termination; Release of Canadian Guarantors.
	18
	

	Section 5.12
	Conflict.
	19
	

	Section 5.13
	Amendment and Restatement.
	19
	

AMENDED AND RESTATED CANADIAN GUARANTEE dated as of January 31, 2019 (as amended, restated, amended and restated, modified or supplemented from time to time, this “Agreement”) among MASONITE INTERNATIONAL CORPORATION, a British Columbia corporation (the “Parent Borrower”) and the Canadian Subsidiary Guarantors (as defined below) and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent for the benefit of the Secured Parties referred to herein. 
The Borrowers propose to enter into a second amended and restated credit agreement dated as of the date hereof (as amended, restated, amended and restated, modified or supplemented from time to time and including any agreement extending the maturity of, refinancing or otherwise amending, amending and restating or otherwise modifying or restructuring all or any portion of the obligations of the Parent Borrower or its Subsidiaries under such agreement or any successor agreement, the “Credit Agreement”; the terms defined therein which are not otherwise defined herein being used herein as therein defined) among the Parent Borrower, Masonite Corporation, a Delaware corporation (the “Lead U.S. Borrower”), Premdor Crosby Limited, a limited liability company incorporated in England and Wales with company number 03227274 (together with any U.K. Subsidiary that becomes a Borrower party to the Credit Agreement after the date hereof, individually and collectively, the “U.K. Borrower”), each other borrower from time to time party thereto (collectively with the Canadian Borrower, the Lead U.S. Borrower and the U.K. Borrower, the “Borrowers” and, individually, a “Borrower”), each guarantor from time to time party thereto, each lender from time to time party thereto, Wells Fargo Bank, National Association, as Administrative Agent and L/C Issuer (together with its successor or successors in each such capacity, the “Administrative Agent” and an “L/C Issuer”) and others.
Masonite Inc. has amalgamated with and into the Parent Borrower with the Parent Borrower being the surviving entity in such amalgamation. 
The Parent Borrower has executed and delivered to Administrative Agent the guarantee dated as of May 17, 2011 (as heretofore amended, supplemented or otherwise modified, the “Existing Guarantee”).
Certain Revolving Credit Lenders or their Affiliates at the time acting as Hedge Banks may from time to time provide forward rate agreements, options, swaps, caps, floors and other Swap Contracts to the Loan Parties.  In addition, certain Revolving Credit Lenders or their Affiliates at the time acting as Cash Management Banks may provide treasury management services to, for the benefit of, or otherwise in respect of, the Loan Parties (including treasury, depository, overdraft, credit or debit card, electronic funds transfer and other cash management arrangements).  The Revolving Credit Lenders, each L/C Issuer, the Administrative Agent, each co-agent or sub-agent appointed by the Administrative Agent from time to time pursuant to the Credit Agreement, Wells Fargo Bank, National Association, as collateral agent (together with its successor or successors in such capacity, the “Collateral Agent”), and each Related Party of any of the foregoing and their respective successors and assigns are herein referred to individually as a “Senior Credit Party” and collectively as the “Senior Credit Parties” and the Senior Credit Parties, the Hedge Banks, the Cash Management Banks and their respective successors and assigns are herein referred to individually as a “Secured Party” and collectively, the “Secured Parties”.

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To induce the Revolving Credit Lenders to enter into the Credit Agreement and the other Loan Documents, the Cash Management Banks to enter into Secured Cash Management Agreements and the Hedge Banks to enter into Secured Hedge Agreements permitted under the Credit Agreement (the Loan Documents, the Secured Cash Management Agreements and the Secured Hedge Agreements being herein collectively referred to as the “Finance Documents”), and as a condition precedent to the obligations of the Revolving Credit Lenders under the Credit Agreement, the Parent Borrower and each Subsidiary of the Parent Borrower that is organized under the laws of Canada or any political subdivision thereof and that becomes a party hereto from time to time in accordance with Section 5.10 hereof (each a “Canadian Subsidiary Guarantor” and, collectively, the “Canadian Subsidiary Guarantors” and, together with the Parent Borrower, each a “Canadian Guarantor” and, collectively, the “Canadian Guarantors”) have agreed, jointly and severally, to provide a guarantee of all obligations of the Borrowers and the other Loan Parties under and in respect of the Finance Documents. As used herein, “Other Loan Parties” means, with respect to any Canadian Guarantor, any and all of the Loan Parties other than such Canadian Guarantor. 
The Parent Borrower is the direct parent of the Lead U.S. Borrower and each of the Canadian Subsidiary Guarantors is a direct or indirect Canadian Subsidiary of the Parent Borrower.  The Parent Borrower and the Canadian Subsidiary Guarantors will receive not insubstantial benefits from the Credit Agreement and the Revolving Credit Loans, Letters of Credit and other financial accommodations to be made, issued or entered into thereunder and from the other financial accommodations to be made under the other Finance Documents.
Accordingly, in consideration of the foregoing, the mutual covenants and obligations herein set forth and for other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree that the Existing Guarantee shall be and hereby is amended and restated as follows:
ARTICLE I
CANADIAN GUARANTEE
Section 1.01    The Canadian Guarantee.
To the fullest extent permitted by Law, each Canadian Guarantor unconditionally guarantees (and, to the extent party to the Existing Guarantee, hereby confirms, restates and continues the prior guarantees as set forth in the Existing Guarantee), jointly and severally with the other Canadian Guarantors, as a primary obligor and not merely as a surety:  (x) the due and punctual payment of:
(i)    all principal of and interest (including, without limitation, any interest which accrues after the commencement of any proceeding of the type described in Section 8.01(f) or (g) of the Credit Agreement (each an “Insolvency or Liquidation Proceeding”), whether or not allowed or allowable as a claim in any such proceeding) on all Revolving Credit Loans and L/C Obligations incurred by any Other Loan Party as a Borrower under, or any Note issued by any Other Loan Party as a Borrower pursuant to, the Credit Agreement or any other Loan Document;

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(ii)    all amounts now or hereafter payable by any Other Loan Party as a Guarantor pursuant to any Loan Document;
(iii)    all reasonable, documented, out-of-pocket fees and expenses, indemnification obligations and other amounts of whatever nature now or hereafter payable by any Other Loan Party (including, without limitation, any amounts which accrue after the commencement of any Insolvency or Liquidation Proceeding with respect to such Other Loan Party, whether or not allowed or allowable as a claim in any such proceeding) pursuant to the Credit Agreement or any other Loan Document;
(iv)    all reasonable, documented, out-of-pocket expenses of any Agent as to which one or more of them have a right to reimbursement by any Loan Party under Section 10.04(a) of the Credit Agreement or under any other similar provision of any Loan Document, including, without limitation, any and all sums advanced by any Agent to preserve the Collateral or preserve its security interests in the Collateral to the extent permitted under any Loan Document or applicable Law;
(v)    all amounts paid by any Indemnitee as to which such Indemnitee has the right to reimbursement by any Loan Party under Section 10.04(b) of the Credit Agreement or under any other similar provision of any Loan Document;
(vi)    all other amounts now or hereafter payable by any Other Loan Party and all other obligations or liabilities now existing or hereafter arising or incurred (including, without limitation, any amounts which accrue after the commencement of any Insolvency or Liquidation Proceeding with respect to such Other Loan Party, whether or not allowed or allowable as a claim in any such proceeding) on the part of any Other Loan Party pursuant to any Loan Document;
(vii)    all Cash Management Obligations of a Loan Party owed or owing under any Secured Cash Management Agreement to a Cash Management Bank; and
(viii)    all Swap Obligations of a Loan Party permitted under the Credit Agreement owed or owing under any Secured Hedge Agreement to any Hedge Bank;
in each case together with all renewals, modifications, consolidations or extensions thereof and whether now or hereafter due, owing or incurred in any manner, whether actual or contingent, whether incurred solely or jointly with any other Person and whether as principal or surety (and including all liabilities in connection with any notes, bills or other instruments accepted by any Secured Party in connection therewith), together in each case with all renewals, modifications, consolidations or extensions thereof; and (y) the due and punctual performance of all covenants, agreements, obligations and liabilities of each Other Loan Party under or pursuant to the Finance Documents (all such monetary and other obligations referred to in clauses (x) and (y) above being herein collectively referred to as the “Guaranteed Obligations”).
The books and records of the Administrative Agent showing the amount of the Guaranteed Obligations shall be admissible in evidence in any action or proceeding, and shall be 

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binding upon each Canadian Guarantor and conclusive for the purpose of establishing the amount of the Guaranteed Obligations.
Anything contained in this Agreement to the contrary notwithstanding, the obligations of each Canadian Guarantor hereunder with respect to Guaranteed Obligations owed by any Other Loan Party shall be limited to a maximum aggregate amount equal to the greatest amount that would not render such Canadian Guarantor’s obligations hereunder subject to avoidance as a fraudulent transfer or conveyance under any provisions of applicable Law (collectively, the “Fraudulent Transfer Laws”), in each case after giving effect to all other liabilities of such Canadian Guarantor, contingent or otherwise, that are relevant under the Fraudulent Transfer Laws (specifically excluding, however, any liabilities of such Canadian Guarantor (i) in respect of intercompany indebtedness to any Other Loan Party or any of its Affiliates to the extent that such indebtedness (A) would be discharged or would be subject to a right of set-off in an amount equal to the amount paid by such Canadian Guarantor hereunder or (B) has been pledged to, and is enforceable by, the Collateral Agent on behalf of the Secured Parties and (ii) under any guarantee of Indebtedness subordinated in right of payment to the Guaranteed Obligations which guarantee contains a limitation as to a maximum amount similar to that set forth in this paragraph pursuant to which the liability of such Canadian Guarantor hereunder is included in the liabilities taken into account in determining such maximum amount) and after giving effect as assets of such Canadian Guarantor to the value (as determined under the applicable provisions of the Fraudulent Transfer Laws) of any rights to subrogation, contribution, reimbursement, indemnity or similar rights of such Canadian Guarantor pursuant to (i) applicable Law or (ii) any agreement providing for an equitable allocation among such Canadian Guarantor and any Other Loan Party and its Affiliates of obligations arising under guaranties by such parties (including the agreements in Article II of this Agreement).  If any Canadian Guarantor’s liability hereunder is limited pursuant to this paragraph to an amount that is less than the total amount of the Guaranteed Obligations, then it is understood and agreed that the portion of the Guaranteed Obligations for which such Canadian Guarantor is liable hereunder shall be the last portion of the Guaranteed Obligations to be repaid.
Section 1.02    Guarantee Absolute; Waiver by the Canadian Guarantors.
(a)    Waiver.  Each Canadian Guarantor hereby waives, to the fullest extent permitted by Law, presentment to, demand of payment from and protest to the Other Loan Parties of any of the Guaranteed Obligations, and also waives promptness, diligence, notice of acceptance of its guarantee, any other notice with respect to any of the Guaranteed Obligations and this Agreement and any requirement that any Agent or any other Secured Party protect, secure, perfect or insure any Lien or any property subject thereto.  Each Canadian Guarantor further waives any right to require that resort be had by any Agent or any other Secured Party to any security held for payment of the Guaranteed Obligations or to any balance of any deposit, account or credit on the books of the any Agent or any other Secured Party in favor of any Loan Party or any other Person.  All waivers contained in this Agreement shall be without prejudice to the right of the Administrative Agent to proceed against any Loan Party or any other Person, whether by separate action or by joinder.

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(b)    Guarantee Absolute.  Each Canadian Guarantor guarantees that the Guaranteed Obligations will be paid and performed strictly in accordance with the terms of the Finance Documents to the fullest extent permitted by Law.  The obligations of the Canadian Guarantors under this Agreement are independent of the Guaranteed Obligations, and a separate action or separate actions may be brought and prosecuted against each Canadian Guarantor to enforce this Agreement, irrespective of whether any action is brought against any Other Loan Party or whether any Other Loan Party is joined in any such action or actions.  This Agreement is an absolute and unconditional guarantee of payment when due, and not of collection, by each Canadian Guarantor, jointly and severally with each other Canadian Guarantor of the Guaranteed Obligations in each and every particular.  The obligations of each Canadian Guarantor hereunder are primary obligations concerning which each Canadian Guarantor is the principal obligor.  The Secured Parties shall not be required to mitigate damages or take any action to reduce, collect or enforce the Guaranteed Obligations.
The obligations of each Canadian Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason, including the existence of any claim, set-off or other right which any Canadian Guarantor may have at any time against any Other Loan Party, any Agent or other Secured Party or any other Person, whether in connection herewith or any unrelated transactions.  Without limiting the generality of the foregoing, each Canadian Guarantor’s liability shall extend to all amounts that constitute part of the Guaranteed Obligations and would be owed by any Other Canadian Loan Party to any Secured Party under the Finance Documents but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, insolvency, reorganization or similar proceeding involving any Other Canadian Loan Party.
Each Canadian Guarantor has irrevocably and unconditionally delivered this Agreement to the Administrative Agent, for the benefit of the Secured Parties, and the failure by any Other Loan Party or any other Person to sign this Agreement or a guarantee similar to this Agreement shall not discharge the obligations of any Canadian Guarantor hereunder.  The irrevocable and unconditional liability of each Canadian Guarantor hereunder applies whether it is jointly and severally liable for the entire amount of the Guaranteed Obligations, or only for a pro-rata portion, and without regard to any rights (or the impairment thereof) of subrogation, contribution or reimbursement that such Canadian Guarantor may now or hereafter have against any Other Loan Party or any other Person.  This Agreement is and shall remain fully enforceable against each Canadian Guarantor irrespective of any defenses that any Other Loan Party may have or assert in respect of the Guaranteed Obligations, including, without limitation, failure of consideration, breach of warranty, payment, statute of frauds, statute of limitations, accord and satisfaction and usury, except that a Canadian Guarantor may assert the defense of final payment in full of the Guaranteed Obligations.
(c)    Guarantee Not Affected, Etc.  Without limiting the generality of the foregoing, the obligations of each Canadian Guarantor hereunder shall not be released, discharged or otherwise affected or impaired by, and each Guarantor hereby waives any rights (including rights to notice), which such Canadian Guarantor might otherwise have as a result of or in connection with any of the following:

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(i)    any extension, renewal, refinancing, settlement, adjustment, alteration, indulgence, forbearance, compromise, acceleration, increase, decrease, waiver or release in respect of any Finance Document or any other agreement or instrument evidencing or securing any Guaranteed Obligation, by operation of Law or otherwise;
(ii)    any change in the manner, place, time or terms of payment of any Guaranteed Obligation or any other amendment, supplement, or modification to, or waiver of any provision of, the Credit Agreement, the Notes, any other Finance Document or any other agreement or instrument evidencing or securing any Guaranteed Obligation or the taking or accepting of any other security, collateral or guarantee, or other assurance of payment, for all or any part of the Guaranteed Obligations;
(iii)    any release, non-perfection or invalidity of any direct or indirect security for any Guaranteed Obligation, any sale, exchange, surrender, realization upon, offset against or other action in respect of any direct or indirect security for any Guaranteed Obligation or any release of any Other Loan Party or any other guarantor or guarantors of any Guaranteed Obligation;
(iv)    the insolvency, bankruptcy, arrangement, adjustment, composition, liquidation, disability, dissolution or lack of power of any Other Loan Party or any other Person at any time liable for the payment of all or part of the Guaranteed Obligations; or any dissolution of any Other Loan Party; or any change, restructuring or termination of the corporate structure or existence of any Other Loan Party; or any sale, lease or transfer of any or all of the assets of any Other Loan Party; or any change in the shareholders, partners, or members of any Other Loan Party; or any default, failure or delay, willful or otherwise, in the performance of the Guaranteed Obligations;
(v)    the existence of any claim, set-off or other right (other than a defense of payment or performance) which any Canadian Guarantor may have at any time against any Other Loan Party, any Agent, any other Secured Party or any other Person, whether in connection herewith or any unrelated transaction; provided that nothing herein shall prevent the assertion of any such claim by separate suit or compulsory counterclaim;
(vi)    any invalidity or unenforceability relating to or against any Other Loan Party for any reason of the Credit Agreement, any Note, any other Finance Document or any other agreement or instrument evidencing or securing any Guaranteed Obligation or any provision of applicable Law purporting to prohibit the payment by any Other Loan Party of any Guaranteed Obligation, or any document or agreement executed in connection with the Guaranteed Obligations, for any reason whatsoever, including the fact that the Guaranteed Obligations, or any part thereof, exceed the amount permitted by Law, the act of creating the Guaranteed Obligations or any part thereof is ultra vires, the officers or representatives executing the documents or otherwise creating the Guaranteed Obligations acted in excess of their authority, the Guaranteed Obligations violate applicable usury laws, any Other Loan Party has valid defenses, claims or offsets (whether at law, in equity or by agreement) which render the Guaranteed Obligations wholly or partially uncollectible from such Other Loan Party, the creation, performance or repayment of the Guaranteed 

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Obligations (or the execution, delivery and performance of any document or instrument representing part of the Guaranteed Obligations or executed in connection with the Guaranteed Obligations or given to secure the repayment of the Guaranteed Obligations) is illegal, uncollectible, legally impossible or unenforceable, or the documents or instruments pertaining to the Guaranteed Obligations have been forged or otherwise are irregular or not genuine or authentic;
(vii)    any failure by any Agent or any other Secured Party:  (A) to assert, file or enforce a claim or demand or to exercise any right or remedy against any Other Loan Party or its estate (in a bankruptcy or other proceeding); (B) to give notice of the existence, creation or incurrence by any Other Loan Party of any new or additional indebtedness or obligation under or with respect to the Guaranteed Obligations; (C) to commence any action against any Other Loan Party; (D) to disclose to any Other Loan Party any facts which such Agent or such other Secured Party may now or hereafter know with regard to any Other Loan Party; or (E) to proceed with due diligence in the collection, protection or realization upon any Collateral securing the Guaranteed Obligations;
(viii)    any direction as to application of payment by any Other Loan Party or any other Person;
(ix)    any subordination by any Secured Party of the payment of any Guaranteed Obligation to the payment of any other liability (whether matured or unmatured) of any Other Loan Party to its creditors;
(x)    any act or failure to act by the Administrative Agent or any other Secured Party under this Agreement or otherwise which may deprive any Canadian Guarantor of any right to subrogation, contribution or reimbursement against any Other Loan Party or any right to recover full indemnity for any payments made by such Canadian Guarantor in respect of the Guaranteed Obligations;
(xi)    any release, surrender, exchange, subordination, deterioration, waste, loss or impairment (including negligent, willful, unreasonable or unjustifiable impairment) of any Letter of Credit, Collateral, property or security, at any time existing in connection with, or assuring or securing payment of, all or any part of the Guaranteed Obligations;
(xii)    the fact that all or any of the Guaranteed Obligations cease to exist by operation of Law, including by way of a discharge, limitation or tolling thereof under applicable Debtor Relief Laws;
(xiii)    any right that any Canadian Guarantor may now or hereafter have under the PPSA or otherwise to unimpaired Collateral;
(xiv)    any payment by any Other Loan Party to the Administrative Agent, any other Agent or any other Secured Party being held to constitute a preference under Title 11 of the United States Code or any similar federal, foreign, provincial, state or local Law, 

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or for any reason any Agent or any other Secured Party being required to refund such payment or pay such amount to any Other Loan Party or any other Person;
(xv)    any full or partial release of the liability of any Other Loan Party or of any other Person now or hereafter liable, directly or indirectly, jointly, severally or jointly and severally, to pay, perform, guarantee or assure the payment of the Guaranteed Obligations or any part thereof; or
(xvi)    any other act or omission to act or delay of any kind by any Loan Party, the Administrative Agent or any Secured Party or any other Person or any other circumstance whatsoever which might, but for the provisions of this clause, constitute a legal or equitable discharge of any Canadian Guarantor’s obligations hereunder.
Section 1.03    Payments.
(a)    Payments to be Made Upon Default.  If any Loan Party fails to pay or perform any Guaranteed Obligation when due in accordance with its terms (whether at stated maturity, by acceleration or otherwise) or if any Default or Event of Default specified in Section 8.01(f) or (g) of the Credit Agreement occurs with respect to any Loan Party, the Canadian Guarantors shall, forthwith on demand of the Administrative Agent, pay the aggregate amount of all Guaranteed Obligations due and owing to the Administrative Agent.
(b)    Payments Free of Taxes.  Any and all payments by or on account of any obligation of any Canadian Guarantor hereunder or under any other Loan Document shall to the extent permitted by applicable Laws be made free and clear of and without reduction or withholding for any Taxes on the basis set forth in Section 3.01 of the Credit Agreement.  If at any time any applicable Law requires any Canadian Guarantor to make any such deduction or withholding from any such payment, the sum due from such Guarantor with respect to such payment shall be increased to the extent necessary to ensure that, after the making of such deduction or withholding, the applicable Secured Party receives a net sum equal to the sum which it would have received had no deduction or withholding been required.
(c)    Application of Payments.
(i)    Priority of Distributions.  After the exercise of remedies provided for in Section 8.02 of the Credit Agreement, all payments received by the Administrative Agent hereunder shall be applied as provided in Section 8.03 of the Credit Agreement.
(ii)    Distributions with Respect to Letters of Credit.  Each of the Canadian Guarantors and the Secured Parties agrees and acknowledges that, on the Maturity Date, while an Event of Default exists or as provided in Section 2.04 of the Credit Agreement, if (after all outstanding Revolving Credit Loans and L/C Obligations have been paid in full) the Revolving Credit Lenders are to receive a distribution on account of undrawn amounts with respect to Letters of Credit issued (or deemed issued) under the Credit Agreement, such amounts shall be deposited in the U.S. L/C Cash Collateral Account (as defined in the U.S. Security Agreement) or the Canadian L/C Cash Collateral Account (as defined in the 

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Canadian Security Agreement), as applicable, as cash security for the repayment of Guaranteed Obligations owing to the Revolving Credit Lenders as such.  Upon termination of all outstanding Letters of Credit and payment in full of all L/C Obligations, all of such cash security shall be applied to the remaining Guaranteed Obligations of the Revolving Credit Lenders.  If there remains any excess cash security, such excess cash shall be withdrawn by the Collateral Agent from the U.S. L/C Cash Collateral Account or the Canadian Cash Collateral Account, as applicable, and distributed in accordance with Section 1.03(c)(i) hereof.
(d)    Foreign Currency.  If any claim arising under or related to this Agreement is reduced to judgment denominated in a currency (the “Judgment Currency”) other than the currencies in which the Guaranteed Obligations are denominated or the currencies payable hereunder (collectively the “Obligations Currency”), the judgment shall be for the equivalent in the Judgment Currency of the amount of the claim denominated in the Obligations Currency included in the judgment, determined as of the date of judgment.  The equivalent of any Obligations Currency amount in any Judgment Currency shall be calculated in accordance with Sections 1.07 and 10.19 of the Credit Agreement.  Each Canadian Guarantor shall indemnify the Administrative Agent and hold the Administrative Agent harmless from and against all loss or damage resulting from any change in exchange rates between the date any claim is reduced to judgment and the date of payment thereof by such Canadian Guarantor or any failure of the amount of any such judgment to be calculated as provided in this paragraph.
(e)    Interest.  For the purposes of the Interest Act (Canada), the yearly rate of interest to which any rate calculated on the basis of a period of time different from the actual number of days in the year (360 days, for example) is equivalent is the stated rate multiplied by the actual number of days in the year (365 days) and divided by the number of days in the shorter period (360 days, in the example).
(b)    Any provision of this Agreement that would oblige a Canadian Guarantor to pay any fine, penalty or rate of interest on any arrears of principal or interest secured by a mortgage on real property or hypothec on immovables that has the effect of increasing the charge on arrears beyond the rate of interest payable on principal money not in arrears shall not apply to such Canadian Guarantor, which shall be required to pay interest on money in arrears at the same rate of interest payable on principal money not in arrears.  

(c)    If any provision of this Agreement would oblige a Canadian Guarantor to make any payment of interest or other amount payable to any Secured Party in an amount or calculated at a rate which would be prohibited by law or would result in a receipt by that Secured Party of “interest” at a “criminal rate” (as such terms are construed under the Criminal Code (Canada)), then, notwithstanding such provision, such amount or rate shall be deemed to have been adjusted with retroactive effect to the maximum amount or rate of interest, as the case may be, as would not be so prohibited by applicable law or so result in a receipt by that Secured Party of “interest” at a “criminal rate”, such adjustment to be effected, to the extent necessary (but only to the extent necessary), as follows:
(i)    first, by reducing the amount or rate of interest; and

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(ii)    thereafter, by reducing any fees, commissions, costs, expenses, premiums and other amounts required to be paid which would constitute interest for purposes of section 347 of the Criminal Code (Canada).
Section 1.04    Discharge; Reinstatement in Certain Circumstances.
Each Canadian Guarantor’s obligations hereunder shall remain in full force and effect until the latest to occur of (i) payment in full in cash of the principal of and interest (including interest accruing on or after the commencement of any Insolvency or Liquidation Proceeding), whether or not a claim for such interest is, or would be, allowed in such Insolvency or Liquidation Proceeding) and premium, if any, on all indebtedness outstanding under each Facility and termination of all commitments to lend or otherwise extend credit to the Loan Parties under the Finance Documents, (ii) payment in full in cash of all other Guaranteed Obligations that are due and payable or otherwise accrued and owing at or prior to the time such principal and interest are paid (including reasonable and documented legal fees and other out-of-pocket expenses, costs or charges accruing on or after the commencement of any Insolvency or Liquidation Proceeding, whether or not a claim for such fees, expenses, costs or charges is, or would be, allowed in such Insolvency or Liquidation Proceeding, in each case, due in accordance with the Finance Documents, but excluding contingent indemnification obligations), (iii) termination, cancellation or cash collateralization (in an amount required by the Credit Agreement) of, all Letters of Credit issued or deemed issued under the Loan Documents, (iv) termination or cash collateralization (in an amount required by the Credit Agreement) of all Secured Hedge Agreements, unless other arrangements reasonably satisfactory to the applicable Hedge Bank have been made with respect to such Secured Hedge Agreements and (v) termination or cash collateralization (in an amount required by the Credit Agreement) of all Secured Cash Management Agreements, unless other arrangements reasonably satisfactory to the applicable Cash Management Bank have been made with respect to such Cash Management Agreements (the occurrence of all of the foregoing being referred to herein as the “Discharge of Finance Obligations”).  No payment or payments made by any Other Loan Party or any other Person or received or collected by any Secured Party from any Other Loan Party or any other Person by virtue of any action or proceeding or any set-off or appropriation or application at any time or from time to time in reduction of or in payment of the Guaranteed Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of any Canadian Guarantor hereunder, it being understood that each Canadian Guarantor shall, notwithstanding any such payment or payments, remain liable for the Guaranteed Obligations until the Discharge of Finance Obligations.  If at any time any payment by any Other Loan Party or any other Person of any Guaranteed Obligation is rescinded or must otherwise be restored or returned upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of any Other Loan Party or other Person or upon or as a result of the appointment of a receiver, intervener or conservator of, or trustee or similar officer for, such Other Loan Party or other Person or a substantial portion of its respective property or otherwise, each Canadian Guarantor’s obligations hereunder with respect to such payment shall be reinstated as though such payment had been due but not made at such time.  Each Canadian Guarantor party hereto agrees that payment or performance of any of the Guaranteed Obligations or other acts which toll any statute of limitations applicable to the Guaranteed Obligations shall also toll the statute of limitations applicable to each such Canadian Guarantor’s liability hereunder.  Notwithstanding any other provision of this Agreement to the contrary, the Administrative Agent 

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shall not be required to verify the payment of, or whether other satisfactory arrangements have been made with respect to Guaranteed Obligations arising under Canadian Secured Cash Management Agreements and Canadian Secured Hedge Agreements unless the Administrative Agent has received prior written notice of such Guaranteed Obligations, together with such supporting documentation as the Administrative Agent may request, from the applicable Canadian Cash Management Bank or Canadian Hedge Bank, as the case may be.
Section 1.05    Security for Guarantee.
Each Canadian Guarantor party hereto authorizes the Collateral Agent in accordance with the terms and subject to the conditions set forth in the Collateral Documents, (i) to take and hold security consisting of Collateral for the payment of the Guaranteed Obligations and to exchange, enforce, waive and release any such security, (ii) to apply such security and direct the order or manner of sale thereof as the Collateral Agent in its sole discretion may determine and (iii) to release or substitute any one or more endorsees, other Canadian Guarantors or Other Loan Parties, in each case, as set forth in any Loan Document.  The Collateral Agent may, at its election, in accordance with the terms and subject to the conditions set forth in the Collateral Documents, foreclose on any security held by it by one or more judicial or nonjudicial sales, or exercise any other right or remedy available to it against any Loan Party, or any security, without affecting or impairing in any way the liability of any Canadian Guarantor hereunder.
Section 1.06    Agreement to Pay; Subordination of Subrogation Claims.
In furtherance of the foregoing and not in limitation of any other right that the Administrative Agent, any other Agent or any other Secured Party has at law or in equity against any Canadian Guarantor by virtue hereof, upon the failure of any Other Loan Party to pay any Guaranteed Obligation when and as the same shall become due, whether at maturity, by acceleration, after notice of prepayment or otherwise, each Canadian Guarantor hereby promises to and will forthwith pay, or cause to be paid, to the Administrative Agent or such other Secured Party as designated thereby in cash the amount of such unpaid Guaranteed Obligations.  Upon payment by any Canadian Guarantor of any sums to the Administrative Agent or any other Secured Party as provided above, all rights of such Canadian Guarantor against any Other Loan Party arising as a result thereof by way of right of subrogation, contribution, reimbursement, indemnity or otherwise shall (including, without limitation, in the case of any Canadian Guarantor, any rights of such Canadian Guarantor arising under Article II of this Agreement) in all respects be postponed and deferred, and be subordinate and junior in right of payment to the prior indefeasible payment in full in cash of all the Guaranteed Obligations, until the Discharge of Finance Obligations.  No failure on the part of any Other Loan Party or any other Person to make any payments in respect of any subrogation, contribution, reimbursement, indemnity or similar right (or any other payments required under applicable Law or otherwise) shall in any respect limit the obligations and liabilities of any Canadian Guarantor with respect to its obligations hereunder.  If any amount shall erroneously be paid to any Canadian Guarantor on account of such subrogation, contribution, reimbursement, indemnity or similar right, such amount shall be held in trust for the benefit of the Secured Parties and shall forthwith be turned over to the Administrative Agent (duly endorsed by such Canadian Guarantor to the Administrative Agent, if required) to be credited against the payment of the 

11

Guaranteed Obligations, whether matured or unmatured, in accordance with the terms of the Finance Documents.
Section 1.07    Stay of Acceleration.
If acceleration of the time for payment of any amount payable by any Other Loan Party under or with respect to the Guaranteed Obligations is stayed upon the insolvency or bankruptcy of such Other Loan Party, all such amounts otherwise subject to acceleration under the terms of the Credit Agreement, the Notes, any Secured Hedge Agreement, any Secured Cash Management Agreement or any other agreement or instrument evidencing or securing the Guaranteed Obligations shall nonetheless be payable by the Canadian Guarantors hereunder, jointly and severally, forthwith on demand by the Administrative Agent, or, following payment in full of the Senior Credit Obligations and the termination of the Revolving Credit Commitments, the holders of more than 50% the obligations under all Secured Hedge Agreements and Secured Cash Management Agreements, in the manner provided herein.
Section 1.08    No Set-Off.
No act or omission of any kind or at any time on the part of any Secured Party in respect of any matter whatsoever shall in any way affect or impair the rights of the Administrative Agent or any other Secured Party to enforce any right, power or benefit under this Agreement, and no set-off, claim, reduction or diminution of any Guaranteed Obligation or any defense of any kind or nature which any Canadian Guarantor has or may have against any Other Loan Party or any Secured Party shall be available against the Administrative Agent or any other Secured Party in any suit or action brought by the Administrative Agent or any other Secured Party to enforce any right, power or benefit provided for by this Agreement; provided that nothing herein shall prevent the assertion by any Canadian Guarantor of any such claim by separate suit or compulsory counterclaim.  Except as otherwise provided herein, nothing in this Agreement shall be construed as a waiver by any Canadian Guarantor of any rights or claims which it may have against any Secured Party hereunder or otherwise, but any recovery upon such rights and claims shall be had from such Secured Party separately, it being the intent of this Agreement that each Canadian Guarantor shall be unconditionally, absolutely and jointly and severally obligated to perform fully all its obligations, covenants and agreements hereunder for the benefit of each Secured Party.
ARTICLE II 
SECURITY INTERESTS
Section 2.01    Indemnity and Subrogation.
In addition to all rights of indemnity and subrogation as the Canadian Guarantors may have under applicable Law (but subject to Section 1.06 above), each Canadian Guarantor (collectively, “Indemnifying Affiliates”) agrees that (i) if a payment shall be made by any Canadian Guarantor (an “Indemnified Guarantor”) under this Agreement in respect of the Guaranteed Obligations of an Indemnifying Affiliate, such Indemnifying Affiliate shall indemnify the Indemnified Guarantor for the full amount of such payment and such Indemnifying Affiliate shall be subrogated to the rights of the person to whom such payment shall have been made to the extent 

12

of such payment and (ii) if any assets of any Indemnified Guarantor shall be sold pursuant to any Finance Document to satisfy a claim of any Secured Party in respect of Guaranteed Obligations of an Indemnifying Affiliate, the Indemnifying Affiliate shall indemnify such Indemnified Guarantor in an amount equal to the fair market value on the date of such sale of the assets so sold.
Section 2.02    Contribution and Subrogation.
Each Canadian Guarantor (a “Contributing Guarantor”) agrees (subject to Section 1.06 above) that, if a payment shall be made by any other Canadian Guarantor under this Agreement or assets of any other Canadian Guarantor shall be sold pursuant to any Collateral Document to satisfy a claim of any Secured Party and such other Canadian Guarantor (the “Claiming Guarantor”) shall not have been fully indemnified by the Indemnifying Affiliates as provided in Section 2.01, the Contributing Guarantor shall indemnify the Claiming Guarantor in an amount equal to the amount of such payment or the fair market value of such assets on the date of the sale, as the case may be, in each case multiplied by a fraction, the numerator of which shall be the net worth of the Contributing Guarantor on the date that the obligation(s) supporting such claim were incurred under this Agreement and the denominator of which shall be the aggregate net worth of all the Canadian Guarantors on such date (or, in the case of any Canadian Guarantor becoming a party hereto pursuant to Section 5.10, the date of the Accession Agreement executed and delivered by such Canadian Guarantor).  Any Contributing Guarantor making any payment to a Claiming Guarantor pursuant to this Section 2.02 shall be subrogated to the rights of such Claiming Guarantor as an Indemnified Guarantor under Section 2.01 to the extent of such payment, in each case subject to the provisions of Section 1.06.
ARTICLE III 
REPRESENTATIONS, WARRANTIES AND COVENANTS
Section 3.01    Representations and Warranties; Certain Agreements.
Each Canadian Guarantor hereby represents, warrants and covenants as follows:
(a)    All representations and warranties contained in the Credit Agreement that relate to such Canadian Guarantor are true and correct in all material respects (or, in the case of representations and warranties qualified by materiality or “Material Adverse Effect”, in all respects).
(b)    Such Canadian Guarantor agrees to comply with each of the covenants contained in the Credit Agreement and the other Loan Documents that relate to such Canadian Guarantor.
Section 3.02    Information.
Each of the Canadian Guarantors assumes all responsibility for being and keeping itself informed of the financial condition and assets of the Other Loan Parties and of all other circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations and the nature, scope and extent of the risks that such Canadian Guarantor assumes and incurs hereunder, and agrees that none of the Administrative Agent, any other Agent or any other Secured Party will have any 

13

duty to advise any of the Canadian Guarantors of information known to it or any of them regarding such circumstances or risks.
Section 3.03    Subordination by Canadian Guarantors.
In addition to the terms of subordination provided for under Section 1.06, each Canadian Guarantor hereby subordinates in right of payment all Indebtedness of the Other Loan Parties owing to it, whether originally contracted with such Canadian Guarantor or acquired by such Canadian Guarantor by assignment, transfer or otherwise, whether now owed or hereafter arising, whether for principal, interest, fees, expenses or otherwise, together with all renewals, extensions, increases or rearrangements thereof, to the prior indefeasible payment in full in cash of the Guaranteed Obligations, whether now owed or hereafter arising, whether for principal, interest (including interest accruing during the pendency of any Insolvency or Liquidation Proceeding, regardless of whether allowed or allowable in such proceeding), fees, reasonable, documented, out-of-pocket expenses or otherwise, together with all renewals, extensions, increases or rearrangements thereof.
ARTICLE IV 
SET-OFF
Section 4.01    Right of Set-Off.
In addition to any rights now or hereafter granted under applicable law or otherwise, and not by way of limitation of any such rights, upon the occurrence and during the continuance of any Event of Default under the Credit Agreement, each Secured Party  is authorized at any time and from time to time, without presentment, demand, protest or other notice of any kind (all of such rights being hereby expressly waived), to set off and to appropriate and apply any and all deposits (general or special, time or demand, provisional or final) and any other indebtedness at any time held by or owing to such Secured Party (including, without limitation, branches, agencies or Affiliates of such Secured Party wherever located) to or for the credit or account of any Canadian Guarantor against obligations and liabilities of such Canadian Guarantor then due to the Secured Parties hereunder, under the other Finance Documents or otherwise, and any such set-off shall be deemed to have been made immediately upon the occurrence of an Event of Default even though such charge is made or entered on the books of such Secured Party subsequent thereto.  
ARTICLE V 
MISCELLANEOUS
Section 5.01    Notices.
(a)    Notices Generally.  Unless otherwise expressly provided herein, all notices and other communications provided for hereunder shall be in writing (including by facsimile transmission) and mailed, faxed or delivered, to the address, facsimile number or (subject to subsection (b) below) electronic mail address specified for notices:  (i) in the case of any Canadian Guarantor, as specified in or pursuant to Section 10.02 of the Credit Agreement; (ii) in the case of the Administrative Agent, the Collateral Agent or any Revolving Credit Lender, as specified in or 

14

pursuant to Section 10.02 of the Credit Agreement; (iii) in the case of any Hedge Bank, as set forth in any applicable Secured Hedge Agreement; (iv) in the case of any Cash Management Bank as set forth in any applicable Secured Cash Management Agreement; (v) in the case of any party, at such other address as shall be designated by such party in a notice to the Administrative Agent and each other party hereto.  Notices and other communications sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices and other communications sent by telecopier shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient).  Notices and other communications delivered through electronic communications to the extent provided in subsection (b) below, shall be effective as provided in such subsection (b).
(b)    Electronic Communications.  Notices and other communications hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, provided that the foregoing shall not apply to notices to any Revolving Credit Lender or L/C Issuer if such Revolving Credit Lender or L/C Issuer, as applicable, has notified the Administrative Agent that it is incapable of receiving notices by electronic communication.  The Administrative Agent may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, provided that approval of such procedures may be limited to particular notices or communications.
Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement); provided that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient, and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address therefor.
Section 5.02    Benefits of Agreement.
This Agreement shall be binding upon and inure to the benefit of and be enforceable by the respective successors and assigns of the parties hereto; provided that none of the Canadian Guarantors may assign or transfer any of its interests and obligations without prior written consent of the Administrative Agent (and any such purported assignment or transfer without such consent shall be void); provided further that the rights of each Revolving Credit Lender to transfer, assign or grant participations in its rights and/or obligations hereunder shall be limited as set forth in Section 10.06 of the Credit Agreement.  Upon the assignment by any Senior Credit Party of all or any portion of its rights and obligations under the Credit Agreement pursuant to the terms thereof (including all or any portion of its Revolving Credit Commitments and the Revolving Credit Loans owing to it) or any other Loan Document to any other Person, such other Person shall thereupon become 

15

vested with all the benefits and responsibilities in respect thereof granted to such transferor or assignor herein or otherwise.
Section 5.03    No Waivers; Non-Exclusive Remedies.
No failure or delay on the part of any Agent or any Secured Party to exercise, no course of dealing with respect to, and no delay in exercising any right, power or privilege under this Agreement or any other Finance Document shall operate as a waiver thereof nor shall any single or partial exercise of any such right, power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  The rights and remedies provided herein and in the other Finance Documents are cumulative and are not exclusive of any other rights or remedies provided by Law.
Section 5.04    Enforcement.
The Secured Parties agree that (a) this Agreement may be enforced only by (i) the action of the Administrative Agent (who may be acting upon the instructions of the Required Revolving Lenders if required under the Loan Documents), or (ii) after the date on which all of the Senior Credit Obligations have been paid in full and all Revolving Credit Commitments have been terminated, the holders of more than 50% of the obligations under all Secured Hedge Agreements and Secured Cash Management Agreements and (b) no other Secured Party shall have any right individually to seek to enforce this Agreement, it being understood and agreed that such rights and remedies may be exercised by the Administrative Agent or the holders of more than 50% of the outstanding obligations under all Secured Cash Management Agreements and Secured Hedge Agreements, as the case may be as provided above, for the benefit of the Secured Parties upon the terms of this Agreement.
Section 5.05    Amendments and Waivers.
Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed by each Canadian Guarantor directly or indirectly affected by such amendment or waiver (it being understood that the addition or release of any Canadian Guarantor hereunder shall not constitute an amendment or waiver affecting any Canadian Guarantor other than the Canadian Guarantor so added or released) and either (i) at all times prior to the time at which all Senior Credit Obligations have been paid in full and all Revolving Credit Commitments have been terminated, the Administrative Agent (with the consent of the Required Lenders or, to the extent required by Section 10.01 of the Credit Agreement, such other portion of the Revolving Credit Lenders as may be specified therein) or (ii) at all times after the Senior Credit Obligations have been paid in full and all Revolving Credit Commitments have been terminated, the holders of more than 50% of the obligations under all Secured Hedge Agreements and Secured Cash Management Agreements.
Section 5.06    Governing Law; Submission to Jurisdiction.
THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND 

16

INTERPRETED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE PROVINCE OF BRITISH COLUMBIA AND THE LAWS OF CANADA APPLICABLE THEREIN, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.  Each party hereto hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the courts of the Province of British Columbia, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such British Columbia court or to the fullest extent permitted by applicable Law.  Each party hereto irrevocably and unconditionally waives, to the fullest extent permitted by applicable Law, any objection which it may now or hereafter have to the laying of the venue of any such action or proceeding arising out of or relating to this Agreement brought in such court and any claim that any such proceeding brought in any such court has been brought in an inconvenient forum.
Section 5.07    Limitation of Law; Severability.
(a)    All rights, remedies and powers provided in this Agreement may be exercised only to the extent that the exercise thereof does not violate any applicable provision of Law, and all of the provisions of this Agreement are intended to be subject to all applicable mandatory provisions of Law which may be controlling and be limited to the extent necessary so that they will not render this Agreement invalid, unenforceable in whole or in part, or not entitled to be recorded, registered or filed under the provisions of any applicable Law.
(b)    If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable, (i) the legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby and (ii) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.  The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
Section 5.08    Counterparts; Integration; Effectiveness.
This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  This Agreement and the other Finance Documents constitute the entire agreement and understanding among the parties hereto and supersede any and all prior agreements and understandings, oral or written, relating to the subject matter hereof and thereof.  This Agreement shall become effective with respect to each Canadian Guarantor when the Administrative Agent shall have received counterparts hereof signed by itself and such Canadian Guarantor.  This Agreement may be transmitted and/or signed by facsimile or Adobe PDF file and if so transmitted or signed, shall, subject to requirements of law, have the same force and effect as a manually signed original and shall be binding on the Canadian Guarantors and the Administrative Agent.

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Section 5.09    Waiver of Jury Trial.
EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
Section 5.10    Additional Canadian Guarantors.
It is understood and agreed that any Subsidiary of the Parent Borrower that is required by the Credit Agreement to execute an Accession Agreement and counterpart of this Agreement after the date hereof shall, upon due execution and delivery of such Accession Agreement and counterpart of this Agreement to the Administrative Agent, become a Canadian Guarantor hereunder with the same force and effect as if originally named as a Canadian Guarantor hereunder.  The execution and delivery of any such instrument shall not require the consent of any other Canadian Guarantor or other parties hereunder except for the Administrative Agent.  The rights and obligations of each Canadian Guarantor or other party hereunder shall remain in full force and effect notwithstanding the addition of any new Canadian Guarantor as a party to this Agreement.
Section 5.11    Termination; Release of Canadian Guarantors.
(a)    Termination.  Upon the Discharge of Finance Obligations, this Agreement shall, subject to Section 1.04 hereof, automatically terminate and have no further force or effect, at which time the Administrative Agent shall promptly execute and deliver to any Canadian Guarantor, at such Guarantor’s expense, all documents that such Canadian Guarantor may reasonably request to evidence such termination.
(b)    Release of Canadian Guarantors.  If all of the capital stock of one or more of the Canadian Guarantors is sold or otherwise disposed of to a Person other than the Parent Borrower or its Subsidiaries or is liquidated, in each case in compliance with the requirements of Section 7.04 or 7.05 of the Credit Agreement (or such sale, other disposition or liquidation has been approved in writing by the Required Lenders (or all or such other portion of the Revolving Credit Lenders, if required by Section 10.01 of the Credit Agreement) and the proceeds of such sale, disposition or liquidation are applied in accordance with the provisions of the Credit Agreement, to the extent applicable, such Canadian Guarantor or Canadian Guarantors shall be released from this Agreement, and this Agreement shall, as to each such Canadian Guarantor or Canadian Guarantors, automatically terminate and have no further force or effect (it being understood and agreed that the sale in compliance with Section 7.04 or 7.05 of the Credit Agreement of one or more Persons that own, directly or indirectly, all of the capital stock of any Canadian Guarantor to a Person other than the Parent Borrower or its Subsidiaries shall be deemed to be a sale of such Canadian Guarantor for purposes of this Section 5.11(b)), at which time the Administrative Agent shall promptly execute and deliver to any Canadian Guarantor, at such Guarantor’s expense, all documents that such Canadian Guarantor may reasonably request to evidence such termination.

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Section 5.12    Conflict.
To the extent that there is a conflict or inconsistency between any provision hereof, on the one hand, and any provision of the Credit Agreement, on the other hand, the Credit Agreement shall control.
Section 5.13    Amendment and Restatement.
(a)    The Parent Borrower hereby acknowledges, confirms and agrees that, immediately prior to giving effect to this Agreement, (i) the Existing Guarantee is in full force and effect as of the date hereof, and (ii) the agreements and obligations of the Parent Borrower contained in the Existing Guarantee constitute the legal, valid and binding obligations of the Parent Borrower against it in accordance with its terms and the Parent Borrower has no valid defense to the enforcement of such obligations. 
(b)    As of the date hereof, the terms, conditions, agreements, covenants, representations and warranties set forth in the Existing Guarantee are hereby amended and restated in their entirety, and as so amended and restated, replaced and superseded, by the terms, conditions, agreements, covenants, representations and warranties set forth in this Agreement.  The amendment and restatement contained herein shall not, in any manner, be construed to constitute payment of, or impair, limit, cancel or extinguish, or constitute a novation in respect of, the indebtedness and other obligations and liabilities of such Canadian Guarantors evidenced by or arising under the Existing Guarantee, and the liens securing such indebtedness and other obligations and liabilities, which shall not in any manner be impaired, limited, terminated, waived or released.
[Signature Pages Follow]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first written above.

CANADIAN GUARANTORS:
MASONITE INTERNATIONAL CORPORATION

Per:    /s/ Rose M. Murphy            
Name: Rose M. Murphy
Title:   Vice President and Assistant Corporate Secretary

Agreed to and Accepted:
WELLS FARGO BANK, NATIONAL ASSOCIATION
as Administrative Agent

Per:    /s/ Matt Mouledous            
Name: Matt Mouledous
Title: Vice President2019.02.06 8-K EX 4.6 - UK Guarantee

Exhibit 4.6

Dated    31 January 2019

Premdor Crosby Limited
(and others as Chargors)

and
Wells Fargo Bank, National Association
(as Agent)
Guarantee and
Debenture

	
	
	

Contents
	
				
	Clause
	 
	Page

	1
	Definitions and Interpretation
	1
	

	2
	Covenant to pay
	4
	

	3
	Creation of Security
	5
	

	4
	Nature of Security Created
	6
	

	5
	Conversion of Floating Charge
	6
	

	6
	Restrictions
	7
	

	7
	Representations and Warranties
	7
	

	8
	Undertakings
	7
	

	9
	Enforcement
	8
	

	10
	Appointment and powers of Receivers
	9
	

	11
	Protection of purchasers
	10
	

	12
	Protection of the Secured Parties and Receivers
	11
	

	13
	Further Assurances
	12
	

	14
	Power of Attorney
	12
	

	15
	Guarantee and Preservation of Security
	12
	

	16
	Notices
	15
	

	17
	Miscellaneous Provisions
	15
	

	18
	Release
	15
	

	19
	Governing Law and Jurisdiction
	16
	

	Schedule 1 The Chargors
	17
	

	Schedule 2 Forms of Notice to Banks and Acknowledgement
	18
	

	Part I - Collection Account Notice
	18
	

	Part II - Collection Account Acknowledgement
	20
	

	Part III - Other Accounts Notice
	22
	

	Part IV - Other Accounts Acknowledgement
	23
	

	Schedule 3 Charged Accounts
	25
	

	Part I - Collection Accounts
	25
	

	Part II - Other Accounts
	25
	

	Schedule 4 Deed of Accession
	26
	

Guarantee and Debenture
Dated 31 January 2019 
Between
		
	(1)
	Premdor Crosby Limited registered in England with number 03227274 (the Company);

		
	(2)
	The Companies (if any) identified in Schedule 1 (The Chargors) (together with the Company and each person which becomes a party to this Deed by executing a Deed of Accession, each a Chargor and together the Chargors); and

		
	(3)
	Wells Fargo Bank, National Association, a national banking association, as administrative agent, collateral agent and security trustee for the Secured Parties (the Agent).

Recitals
		
	(A)
	The Lenders have agreed to make credit facilities available on the terms of the Credit Agreement.

		
	(B)
	The Chargors enter into this Deed to secure the repayment and satisfaction of the Secured Liabilities and to guarantee the obligations of the Specified Loan Parties to the Secured Parties.

		
	(C)
	The Chargors and the Agent intend that this document take effect as a deed notwithstanding that it may be executed under hand.

It is agreed:
1    Definitions and Interpretation
1.1    Definitions
In this Deed:
Act means the Law of Property Act 1925.
Book Debts means:
		
	(a)
	all book and other debts in existence from time to time (including, without limitation, any sums whatsoever owed by banks or similar institutions) both present and future, actual or contingent, due, owing to or which may become due, owing to or purchased or otherwise acquired by any Chargor; and

		
	(b)
	the benefit of all rights whatsoever relating to the debts referred to in (a) above including, without limitation, any related agreements, documents, rights and remedies (including, without limitation, negotiable or non-negotiable instruments, guarantees, indemnities, legal and equitable charges, reservation of proprietary rights, rights of tracing, unpaid vendor's liens and all similar connected or related rights and assets).

Charged Accounts means the Collection Accounts and the Other Accounts other than the Exempt Deposit Accounts.
Collection Accounts means the bank accounts of the Chargors specified in Part I of Schedule 3 (Charged Accounts) and/or in the Schedule to any Deed of Accession and/or such other bank accounts of the Chargors as the Agent and Chargor may designate or approve.
Credit Agreement means the second amended and restated credit agreement dated on or about the date of this Deed between, among others, Masonite International Corporation as Canadian Borrower and Parent Borrower, Masonite Corporation and the other U.S. Borrowers from time to time party thereto as U.S. Borrowers, the Company and the other U.K. Borrowers from time to time party thereto as U.K. Borrowers, the Lenders from time to time party thereto, Wells Fargo Bank, National Association as Administrative Agent.
Deed of Accession means a deed of accession substantially in the form set out in Schedule 4 (Deed of Accession).

1

Inventory means a Chargor’s stock and inventory including all goods intended for sale or lease by a Chargor or for display or demonstration, all work in process, all raw materials and other materials and supplies of every nature and description used or which might be used in connection with the manufacture, printing, packing, shipping, advertising, selling, leasing or furnishing such goods or otherwise used or consumed in a Chargor’s business, along with all prints and labels on which any trade mark of such Chargor has appeared or appears, package and other designs, and the rights in any of the foregoing which arise under applicable law.
Intellectual Property means:
		
	(a)
	any patents, petty patents, trade marks, service marks, trade names, domain names, rights in designs, software rights, utility models, database rights, copyrights, rights in the nature of copyright, and all other forms of intellectual or industrial property;

		
	(b)
	any rights in or to inventions, formulae, confidential or secret processes and information, know-how and similar rights, goodwill and any other rights and assets of a similar nature; and

		
	(c)
	any other right to use (or which may arise from, relate to or be associated with), or application to register or protect, any of the items listed in paragraphs (a) or (b) above,

		
	(d)
	arising or subsisting in any jurisdiction and whether registered or not. 

Legal Reservations means:
		
	(a)
	the principle that remedies may be granted or refused at the discretion of a court, the limitation of enforcement by laws relating to bankruptcy, insolvency, liquidation, reorganisation, court schemes, moratoria, administration, examinership, reorganisation and other laws generally affecting the rights of creditors;

		
	(b)
	the time barring of claims under applicable statutes of limitation, the possibility a court may strike out provisions of a contract as invalid for reasons of oppression, undue influence or similar reasons, the possibility that an undertaking to assume liability for or indemnify a person against non-payment of stamp duty may be void, and defences of setoff or counterclaim;

		
	(c)
	the principle that additional or default interest payable under any Loan Document may be held to be unenforceable on the grounds that it is a penalty;

		
	(d)
	the principle that in certain circumstances Security granted by way of fixed charge may be recharacterised as a floating charge or that Security purported to be constituted as an assignment may be recharacterised as a charge;

		
	(e)
	the principle that a court may not give effect to an indemnity for legal costs incurred by a litigant;

		
	(f)
	the principle that the creation or purported creation of Security over any contract or agreement which is subject to a prohibition on transfer, assignment or charging may be void, ineffective or invalid and may give rise to a breach entitling the contracting party to terminate or take any other action in relation to such contract or agreement;

		
	(g)
	similar principles, limitations, rights and defences to those in paragraphs (a) to (f) above under the laws of any applicable jurisdiction; and

		
	(h)
	any other matters which are set out as qualifications or reservations as to matters of law of general application in any legal opinion delivered in connection with a Loan Document.

Other Accounts means the bank accounts of the Chargors specified in Part II of Schedule 3 (Charged Accounts) and/or in the Schedule to any Deed of Accession and/or such other bank accounts of the Chargors as the Agent and Chargor may designate or approve.
Perfection Requirements means the making or procuring of the registrations, filings, endorsements, notarisations, stampings and/or notifications of or in connection with Loan Documents or the Security created thereunder necessary for the validity or enforceability thereof.

2

Receiver means a receiver appointed pursuant to this Deed or to any applicable law, whether alone or jointly, and includes a receiver and/or manager and, if the Agent is permitted by law to appoint an administrative receiver, includes an administrative receiver.
Regulations means the Financial Collateral Arrangements (No 2) Regulations 2003 (S.I. 2003/3226) or equivalent legislation in any applicable jurisdiction bringing into effect Directive 2002/47/EC on financial collateral arrangements, and Regulation means any of them.
Secured Liabilities means collectively the U.K. Finance Obligations and the Canadian Finance Obligations.
Secured Parties means collectively the U.K. Secured Parties and the Canadian Secured Parties.
Security Assets means the assets of each Chargor the subject of any security created by this Deed.
Security Period means the period beginning on the date of this Deed and ending on the date on which the Secured Liabilities have been irrevocably and unconditionally satisfied in full and no Secured Party has any commitment or liability, whether present or future, actual or contingent, in relation to the credit facilities provided under the Credit Agreement in relation to any Loan Party. If any amount paid by any Chargor and/or in connection with the satisfaction of the Secured Liabilities is capable of being avoided or otherwise set aside on the liquidation or administration of such Chargor or otherwise, then that amount shall not be considered to have been irrevocably paid for the purpose of this Deed.
Security means a mortgage, charge, pledge, lien, assignment by way of security, retention of title provision, trust or flawed asset arrangement (for the purpose of, or which has the effect of, granting security) or other security interest securing any obligation of any person or any other agreement or arrangement in any jurisdiction having a similar effect.
Specified Loan Parties means collectively the U.K. Loan Parties and the Canadian Loan Parties.
U.S. Security Agreement means the amended and restated U.S. security agreement dated on or about the date of this Deed among Masonite Corporation, the other U.S. Borrowers from time to time party thereto, the U.S. Guarantors from time to time party thereto and Wells Fargo Bank, National Association, as Collateral Agent.
1.2    Construction
(a)    Any reference in this Deed to:
		
	(i)
	assets includes present and future properties, revenues and rights of every description;

		
	(ii)
	any Loan Document or any other agreement or instrument is a reference to that Loan Document or other agreement or instrument as amended, amended and restated, varied, novated supplemented or replaced from time to time;

		
	(iii)
	indebtedness includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money, whether present or future, actual or contingent;

		
	(iv)
	a person includes one or more of that person's assigns, transferees or successors in title, delegates, sub-delegates and appointees (in the case of a Loan Party or Specified Loan Party only, in so far as such assigns, transferees or successors in title, delegates, sub-delegates and appointees are permitted in accordance with the Loan Documents) and any person, firm, company, corporation, government, state or agency of a state or any association, trust or partnership (whether or not having separate legal personality);

		
	(v)
	a regulation includes any regulation, rule, official directive, request or guideline (whether or not having the force of law) of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation;

		
	(vi)
	a guarantee (other than the guarantee contained in Clause 15 (Guarantee and Preservation of Security)) includes any guarantee or indemnity, bond, letter of credit, documentary or other credit, or other assurance against financial loss;

		
	(vii)
	a provision of law is a reference to that provision as amended or re-enacted;

3

		
	(viii)
	words importing the singular shall include the plural and vice versa.

(b)    Clause and Schedule headings are for ease of reference only.
(c)    An Event of Default is continuing if it has not been remedied or waived.
		
	(d)
	Capitalised terms defined in the Credit Agreement or whose interpretation or construction is provided for in the Credit Agreement shall have the same meaning when used in this Deed unless the context requires otherwise.

		
	(e)
	The terms of the other Loan Documents and of any side letters between any parties in relation to any Loan Document are incorporated in this Deed to the extent required to ensure that any purported disposition of an interest in Land contained in this Deed is a valid disposition in accordance with section 2(1) of the Law of Property (Miscellaneous Provisions) Act 1989.

		
	(f)
	Each of the charges in Clause 3 (Creation of Security) over each category of the assets, each asset and each sub-category of each asset specified in such clause shall be read and construed separately, as though each such category, asset and sub-category were charged independently and separately of each other and shall apply to both present and future assets.

1.3    Terms defined in the U.S. Security Agreement
Unless otherwise defined in this Deed or in the Credit Agreement, the following terms, have the respective meanings given to them in the U.S. Security Agreement mutatis mutandis:
		
	(a)
	Chattel Paper;

		
	(b)
	Claims;

		
	(c)
	Documents;

		
	(d)
	Equipment;

		
	(e)
	Excluded Contracts;

		
	(f)
	Exempt Deposit Accounts;

		
	(g)
	Fixtures;

		
	(h)
	General Intangibles;

		
	(i)
	Instruments;

		
	(j)
	Investment Property;

		
	(k)
	Judgments;

		
	(l)
	Letter-of-Credit Rights;

		
	(m)
	Payment Intangibles;

		
	(n)
	Settlements; and

		
	(o)
	Supporting Obligations.

2    Covenant to pay
Each Chargor covenants with the Agent as trustee for the Secured Parties that it will pay and discharge the Secured Liabilities as and when they become due and payable in accordance with the terms of the relevant Loan Document.

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3    Creation of Security
3.1    Book Debts
Each Chargor charges by way of fixed charge:
		
	(a)
	its Book Debts, both uncollected and collected, the proceeds of the same and all monies otherwise due and owing to such Chargor but excluding the Charged Accounts and any amounts standing to the credit of any Charged Account; and

		
	(b)
	the benefit of all rights, Security and guarantees of whatsoever nature enjoyed or held by it in relation to anything referred to in paragraph (a) above.

3.2    Collection Accounts
Each Chargor charges by way of fixed charge all of its right, title and interest (if any) in and to the Collection Accounts and all monies standing to the credit of any of the Collection Accounts and the debts represented by them.
3.3    Floating Charge
(a)    Each Chargor charges by way of floating charge:
		
	(i)
	all Inventory;

		
	(ii)
	if directly or indirectly evidencing, governing, supporting, used or useful to protect or enhance the value, salability or collectibility of, or otherwise in any way related to, Book Debts or Inventory, all (A) General Intangibles (including, for the avoidance of doubt, Payment Intangibles but excluding Intellectual Property), (B) Chattel Paper, (C) Documents, (D) Instruments, (E) Claims, Judgments and Settlements (F) Letter-of-Credit Rights and (G) other Supporting Obligations of or with respect to all or any of the foregoing;

		
	(iii)
	all cash and Cash Equivalents (other than cash or Cash Equivalents on deposit in any Exempt Deposit Account), and all cash and other property deposited therein or credited thereto from time to time and, in each case, including all other collection accounts, lock-boxes, securities accounts and commodity accounts and any cash or other assets in any such accounts, all Investment Property and all Supporting Obligations of any kind given with respect to or relating to all or any of the foregoing, in each case only to the extent constituting proceeds of the foregoing, other than identifiable cash proceeds arising from the sale or other disposition (including any Casualty or Condemnation) of Real Property, Fixtures, Equipment, or any other asset not constituting Security Assets;

		
	(iv)
	all books and records (including, without limitation, customer lists, credit files, computer programs, printouts and other computer materials and records) of such Chargor pertaining to any of the Security Assets; and

		
	(v)
	all proceeds of all or any of the Security Assets described in clauses (i) through (viii) hereof (including proceeds of proceeds) and Supporting Obligations of any and all of the foregoing in whatever form received, including proceeds of insurance policies related to Inventory of any Chargor and business interruption insurance and all security and guarantees given by any other person with respect to any of the foregoing,

provided, however, that the Security Assets shall not include any Excluded Contracts or Exempt Deposit Accounts; and
		
	(vi)
	all its present and future assets referred to in Clauses 3.1 and 3.2 which are not effectively charged by way of fixed charge under this Clause 3 (Creation of Security).

		
	(b)
	Paragraph 14 of Schedule B1 to the Insolvency Act 1986 shall apply to any floating charge created by this Deed.

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3.4    Trust
		
	(a)
	Subject to paragraph (b), if or to the extent that for any reason the charging of any Security Asset is prohibited, each Chargor holds it on trust for the Agent.

		
	(b)
	If the reason referred to in paragraph (a) is that:

		
	(i)
	(i)    a consent or waiver must be obtained; or

(ii)    a condition must be satisfied,  
then:
		
	(A)
	subject to paragraph (c) the relevant Chargor shall apply for the consent or waiver; and

		
	(B)
	the relevant Chargor shall use all reasonable endeavours to satisfy the condition,

as soon as reasonably practicable after the date of this Deed or, if the Security Asset is acquired after the date of this Deed, as soon as reasonably practicable after the date of acquisition.
		
	(c)
	Where the consent or waiver is not to be unreasonably withheld, the relevant Chargor shall:

(i)use all reasonable endeavours to obtain it as soon as possible; and
(ii)keep the Agent informed of the progress of the negotiations to obtain it.
		
	(d)
	On the waiver or consent being obtained, or the condition being satisfied, the Security Asset shall be charged under this Clause 3 (Creation of Security) and the trust referred to in paragraph (a) shall terminate.

4    Nature of Security Created
The Security created under this Deed is created:
		
	(a)
	as a continuing security and will extend for the ultimate balance of sums payable in connection with the Secured Liabilities regardless of any intermediate payment or discharge in whole or part;

		
	(b)
	over all present and future assets of the kind described which are owned by any Chargor and, to the extent that it does not own those assets, shall extend to any right or interest which it may have in them;

		
	(c)
	in favour of the Agent as agent and trustee for the Secured Parties; and

		
	(d)
	with full title guarantee.

5    Conversion of Floating Charge
5.1    Conversion on notice
Subject to Clause 5.2 (Limitation), the Agent may by notice to a Chargor at any time during the Security Period convert the floating charge created by that Chargor under this Deed into a fixed charge in respect of any Security Asset specified in that notice if:
		
	(a)
	an Event of Default has occurred and is continuing; or

		
	(b)
	a Cash Dominion Event has occurred and is continuing.

5.2    Limitation
Clause 5.1 (Conversion on notice) shall not apply by reason only of a moratorium being obtained, or anything being done with a view to a moratorium being obtained, under section 1A of the Insolvency Act 1986.

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     5.3    Automatic conversion
The floating charge created by a Chargor under this Deed will convert automatically into fixed charges:
		
	(a)
	if the Agent receives notice of an intention to appoint an administrator of that Chargor;

		
	(b)
	if any steps are taken, (including the presentation of a petition, the passing of a resolution or the making of an application) to appoint a liquidator, provisional liquidator, administrator or Receiver in respect of that Chargor over all or any part of its assets, or if such person is appointed;

		
	(c)
	if that Chargor creates or attempts to create any Security in breach of Clause 6 (Restrictions) over all or any of the Security Assets (other than Permitted Liens);

		
	(d)
	on the crystallisation of any other floating charge over the Security Assets; and

		
	(e)
	if any person seizes, attaches, charges, takes possession of or sells any Security Asset under any form of distress, sequestration, execution or other process, or attempts to do so.

6    Restrictions
No Chargor shall:
		
	(a)
	create or permit to subsist any Security of whatsoever nature on any Security Asset other than Permitted Liens or as created by this Deed; or

		
	(b)
	sell, transfer, grant, lease or otherwise dispose of any Security Asset, except as permitted under the Loan Documents.

7    Representations and Warranties
7.1    Making of representations
Subject to the Legal Reservations and Perfection Requirements, each Chargor makes the representations and warranties set out in this Clause 7 to the Agent and the Secured Parties. The representations and warranties so set out are made on the date of this Deed and are deemed to be repeated by the Chargors throughout the Security Period on those dates on which representations and warranties are to be repeated in accordance with the Credit Agreement with reference to the facts and circumstances then existing.
7.2    Capacity
Each Chargor has the capacity, power and authority to enter into this Deed and subject to the Legal Reservations and Perfection Requirements the obligations assumed by it are its legal, valid, binding and enforceable obligations subject to laws affecting creditors' rights generally.
7.3    Title
Each Chargor has good and marketable title to the Security Assets it is charging under this Deed, free of any Security (other than pursuant to or as permitted by the Loan Documents).
7.4    Security
Subject to the Legal Reservations and Perfection Requirements, this Deed creates the security interests it purports to create and those security interests are valid and effective.
     8    Undertakings
8.1    Duration
The undertakings in this Clause 8 shall remain in force throughout the Security Period and are given by each Chargor to the Agent and the Secured Parties.

7

8.2    Book debts and receipts
Each Chargor shall collect its Book Debts in a manner consistent with its usual business practice and, save to the extent that the Agent otherwise agrees in writing, on and from the earlier of the date on which the requirements specified in Clause 8.3 (Collection Account Arrangements) are complied with and the date falling 90 days after the date of this Deed, pay the proceeds thus collected into a Collection Account and, pending such payment into a Collection Account, hold the proceeds thus collected upon trust for the Agent.
8.3    Collection Account Arrangements
		
	(a)
	Each Chargor shall, within 90 days of the date of this Deed establish and maintain Collection Accounts to be used for the sole purpose of collecting the proceeds of all Book Debts.

		
	(b)
	Each Chargor shall, within 90 days of the date of this Deed or, in respect of any Collection Account opened after the date of this Deed, promptly following the opening of such Collection Account:

		
	(i)
	serve notice upon the bank at which each Collection Account is opened (in respect of the relevant Collection Accounts) in substantially the form set out in Part I of Schedule 2 (Forms of Notice to Banks and Acknowledgement); and

		
	(ii)
	procure the relevant bank returns the acknowledgement in substantially the form set out in Part II of Schedule 2 (Forms of Notice to Banks and Acknowledgement) or such other form acceptable to the Agent and the relevant account bank in their absolute discretion.

8.4    Operation of Collection Accounts
On the occurrence of a Cash Dominion Event:
		
	(a)
	no Chargor shall be entitled to withdraw the whole or any part of any amount standing to the credit of any Collection Account and shall not take any action, claim or proceedings against the Agent or any other party for the return or payment to any person of the whole or any part of any amount standing to the credit of any Collection Account except with the prior consent of the Agent;

		
	(b)
	each Chargor shall execute and deliver to the Agent (in a form and substance substantially the same as the security granted under this Deed in respect of such assets) a fixed charge with respect to each of its Collection Accounts and all of its Book Debts;

		
	(c)
	the Agent may serve notice upon any bank at which a Collection Account is open, terminating the Chargor's right to operate such Controlled Account and instructing the account bank to forward, by daily sweep, all amounts in the applicable Collection Account to the applicable Agent’s account; and

		
	(d)
	if any Secured Liabilities are then outstanding, all amounts standing to the credit of the Agent’s account shall be withdrawn by the Agent and immediately used to repay (or cash collateralize, as applicable) such Secured Liabilities in accordance with the terms of the Credit Agreement.

     8.5    Other Account Arrangements
Each Chargor shall promptly upon the execution of this Deed or, in respect of any Other Account opened after the date of this Deed, promptly following the opening of such Other Account, serve notice upon the bank at which each Other Account is opened (in respect of the relevant Other Accounts) in substantially the form set out in Part III of Schedule 2 (Forms of Notice to Banks and Acknowledgement) and use reasonable endeavours to procure the relevant bank returns the acknowledgement in substantially the form set out in Part IV of Schedule 2 (Forms of Notice to Banks and Acknowledgement) or such other form acceptable to the Agent in its absolute discretion.
9    Enforcement
9.1    When Security becomes enforceable
The Security created by a Chargor under this Deed shall become enforceable:
		
	(a)
	on the occurrence of an Event of Default that is continuing; or

8

		
	(b)
	if a Chargor so requests.

9.2    Powers on enforcement
At any time after the Security created by a Chargor under this Deed has become enforceable, the Agent may (without prejudice to any other of its rights and remedies and without notice to any Chargor) do all or any of the following:
		
	(a)
	serve notice upon any bank at which an Other Account is open, terminating the Chargor's right to operate such Other Account;

		
	(b)
	exercise all the powers and rights conferred on mortgagees by the Act, as varied and extended by this Deed, without the restrictions contained in sections 103 or 109(1) of the Act;

		
	(c)
	to the extent that any Security Asset constitutes Financial Collateral, as defined in the Regulations, appropriate it and transfer the title in and to it to the Agent insofar as not already transferred, subject to paragraphs (1) and (2) of Regulation 18;

		
	(d)
	subject to Clause 10.1 (Method of appointment and removal), appoint one or more persons to be a Receiver or Receivers of all or any of the Security Assets; and

		
	(e)
	appoint an administrator of any Chargor.

9.3    Disposal of the Security Assets
In exercising the powers referred to in Clause 9.2 (Powers on enforcement), the Agent or any Receiver may sell or dispose of all or any of the Security Assets at the times, in the manner and order, on the terms and conditions and for the consideration determined by it.
9.4    Application of moneys
		
	(a)
	The Agent or any Receiver shall apply moneys received by them under this Deed after the Security created under this Deed has become enforceable in the following order:

		
	(i)
	first, in or towards the payment pro rata of, or the provision pro rata for, any unpaid costs and expenses of the Agent and any Receiver under this Deed or which are incidental to any Receiver's appointment, together with interest at the Default Rate (both before and after judgment) from the date those amounts became due until the date they are irrevocably paid in full;

		
	(ii)
	secondly, in or towards the payment pro rata of, or the provision pro rata for, any unpaid fees, commission or remuneration of the Agent and any Receiver;

		
	(iii)
	thirdly, in or towards the discharge of all liabilities having priority to the Secured Liabilities;

		
	(iv)
	fourthly, in or towards the discharge of the Secured Liabilities in accordance with the Credit Agreement; and

		
	(v)
	fifthly, in the payment of any surplus to the relevant Chargor or other person entitled to it,

and section 109(8) of the Act shall not apply.
(b)    Clause 9.4(a) will override any appropriation made by a Chargor.
10    Appointment and powers of Receivers
10.1    Method of appointment and removal
		
	(a)
	The Agent may not appoint a Receiver by reason only of a moratorium being obtained, or anything being done with a view to a moratorium being obtained, under section 1A of the Insolvency Act 1986.

9

		
	(b)
	Every appointment or removal of a Receiver, of any delegate or of any other person by the Agent pursuant to this Deed may be made in writing under the hand of any officer or manager of the Agent (subject to any requirement for a court order in the removal of an administrative receiver).

10.2    Powers of Receiver
Every Receiver shall have all the powers:
		
	(a)
	of the Agent under this Deed;

		
	(b)
	conferred by the Act on mortgagees in possession and on receivers appointed under the Act;

		
	(c)
	in relation to, and to the extent applicable to, the Security Assets or any of them, the powers specified in schedule 1 of the Insolvency Act 1986 (whether or not the Receiver is an administrative receiver within the meaning of that Act); and

		
	(d)
	in relation to any Security Asset, which he would have if he were its only beneficial owner.

10.3    Joint or several
If two or more persons are appointed as Receivers of the same assets, they may act jointly and/or severally so that (unless any instrument appointing them specifies to the contrary) each of them may exercise individually all the powers and discretions conferred on Receivers by this Deed.
10.4    Receiver as agent
Every Receiver shall be the agent of the relevant Chargor which shall be solely responsible for his acts and defaults and for the payment of his remuneration.
     10.5    Receiver's remuneration
Every Receiver shall be entitled to remuneration for his services at a rate to be fixed by agreement between him and the Agent, and the maximum rate specified in section 109(6) of the Act shall not apply.
10.6    Delegation
		
	(a)
	The Agent and any Receiver may, for the time being and from time to time, delegate by power of attorney or in any other manner (including, without limitation, under the hand of any manager of the Agent) to any person any right, power or discretion exercisable by the Agent or such Receiver (as the case may be) under this Deed.

		
	(b)
	Any such delegation may be made upon the terms (including, without limitation, power to sub delegate) and subject to any regulations which the Agent or such Receiver (as the case may be) may think fit.

		
	(c)
	Neither the Agent nor any Receiver will be in any way liable or responsible to any Chargor for any loss or liability arising from any act, default, omission or misconduct on the part of any such delegate or sub delegate who shall be entitled to all the indemnities to which his appointor is entitled under this Deed except to the extent such delegate, or sub delegate in its name, is acting in bad faith, with gross negligence, with wilful misconduct or in breach of the terms of this Deed.

11    Protection of purchasers
No purchaser or other person dealing with the Agent or any Receiver shall be bound or concerned:
		
	(a)
	to see or enquire whether the right of the Agent or any Receiver to exercise any of the powers conferred by this Deed has arisen or not;

		
	(b)
	with the propriety of the exercise or purported exercise of those powers; or

		
	(c)
	with the application of any moneys paid to the Agent, to any Receiver or to any other person.

10

12    Protection of the Secured Parties and Receivers
12.1    Exclusion of liability
None of the Agent, the other Secured Parties, any Receiver or any of their respective officers or employees shall have any responsibility or liability:
		
	(a)
	for any action taken, or any failure to take any action, in relation to all or any of the Security Assets;

		
	(b)
	to account as mortgagee in possession or for any loss upon realisation of any Security Asset;

		
	(c)
	for any loss resulting from any fluctuation in exchange rates in connection with any purchase of currencies; or

		
	(d)
	for the loss or destruction of, or damage to, any of the Security Assets, or to any documents of or evidencing title to them, which are in the possession or held to the order of any such person (and which will be held by such persons at the expense and risk of the Chargors); or

		
	(e)
	or any other default or omission in relation to all or any of the Security Assets for which a mortgagee in possession might be liable,

except in the case of bad faith, gross negligence, wilful misconduct or breach of the terms of this Deed on the part of that person.
12.2    General indemnity
Each Chargor shall indemnify the Agent, the other Secured Parties, any Receiver and their respective officers and employees against all actions, proceedings, demands, claims, costs,
expenses, and other liabilities incurred by them in respect of all or any of the following:
		
	(a)
	any act or omission by any of them in relation to all or any of the Security Assets;

		
	(b)
	any payment relating to or in respect of all or any of the Security Assets which is made at any time by any of them;

		
	(c)
	any stamp, registration or similar tax or duty which becomes payable in connection with the entry into, or the performance or enforcement of, this Deed;

		
	(d)
	carrying out or purporting to carry out any of the rights, powers and discretions conferred on them by or permitted under this Deed; and

		
	(e)
	any breach by the Chargor of any of its covenants or other obligations to the Agent or any other Secured Party,

except in the case of bad faith, gross negligence, wilful misconduct or breach of the terms of this Deed on the part of that person.
12.3    Indemnity out of the Security Assets
The Agent, the other Secured Parties, any Receiver and their respective officers and employees shall be entitled to be indemnified out of the Security Assets in respect of the actions, proceedings, demands, claims, costs, expenses and liabilities referred to in Clause 12.2 (General indemnity).
12.4    Enforcement Expenses
Immediately upon demand, each Chargor shall pay all other reasonable, documented, out-of-pocket costs and expenses (including legal fees and VAT) incurred from time to time in connection with the enforcement of or preservation of rights under this Deed by the Agent, or any Receiver, attorney, manager, agent or other person appointed by the Agent under this Deed or by statute, and keep each of them indemnified against any failure or delay in paying the same.

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13    Further Assurances
Each Chargor shall, at its own expense, promptly take any action and sign or execute any further documents which the Agent may reasonably require in order to:
		
	(a)
	protect, preserve and perfect the Security intended to be created by or pursuant to this Deed;

		
	(b)
	protect and preserve the ranking of the Security intended to be created by or pursuant to this Deed with any other Security over any assets of any Chargor; or

		
	(c)
	facilitate the realisation of all or any of the Security Assets or the exercise of any rights, powers and discretions conferred on the Agent, any Receiver or any administrator in connection with all or any of the Security Assets,

and any such document may (i) disapply section 93 of the Act and (ii) contain an assignment to the Agent of the Book Debts in any manner reasonably required by the Agent.
13.2    Deposit of documents
Each Chargor covenants that on the occurrence of a Cash Dominion Event as soon as the Agent so requests, it shall deposit with the Agent, in respect of or in connection with the Security Assets any documents which the Agent may from time to time reasonably require for perfecting its title, or the title of any purchaser, all of which will be held by the Agent at the expense and risk of the relevant Chargor.
14    Power of Attorney
14.1    Appointment
Each Chargor irrevocably and by way of security appoints each of:
		
	(a)
	the Agent;

		
	(b)
	any delegate or sub-delegate of, or other person nominated in writing by, an officer of the Agent; and

		
	(c)
	any Receiver,

jointly and severally as that Chargor's attorney, in that Chargor's name, on its behalf and in such manner as the attorney may in its or his absolute discretion think fit following the occurrence of an Event of Default that is continuing or following the failure by that Chargor to comply with a request from the Agent in accordance with the terms of this Deed, to take any action and sign or execute any further documents which that Chargor is required to take, sign or execute in accordance with this Deed.
14.2    Ratification
Each Chargor agrees, promptly on the request of the Agent or any Receiver, to ratify and confirm all such actions taken and documents signed or executed except to the extent that the attorney in its name is acting in bad faith, with gross negligence, with wilful misconduct or in breach of the terms of this Deed.
15    Guarantee and Preservation of Security
15.1    Guarantee and indemnity
Each Chargor irrevocably and unconditionally jointly and severally:
		
	(a)
	guarantees to each Secured Party punctual performance by each Specified Loan Party of all that Specified Loan Party's payment obligations under the Loan Documents;

		
	(b)
	undertakes with each Secured Party that whenever a Specified Loan Party does not pay any amount when due under or in connection with any Loan Document, that Chargor shall immediately on demand pay that amount as if it was the principal obligor; and

12

		
	(c)
	agrees with each Secured Party that if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal, it will, as an independent and primary obligation, indemnify that Secured Party immediately on demand against any cost, loss or liability it incurs as a result of a Specified Loan Party not paying any amount which would, but for such unenforceability, invalidity or illegality, have been payable by it under any Loan Document on the date when it would have been due. The amount payable by a Chargor under this indemnity will not exceed the amount it would have had to pay under this Clause 15 (Guarantee and Preservation of Security) if the amount claimed had been recoverable on the basis of a guarantee.

15.2    Continuing guarantee
This guarantee is a continuing guarantee and will extend to the ultimate balance of sums payable by any Specified Loan Party under the Loan Documents, regardless of any intermediate payment or discharge in whole or in part.
15.3    Reinstatement
If any payment by a Chargor or any discharge given by the Agent (whether in respect of the obligations of any Chargor, any Specified Loan Party or any security for those obligations or otherwise) is avoided or reduced as a result of insolvency or any similar event:
		
	(a)
	the liability of each Chargor shall continue as if the payment, discharge, avoidance or reduction had not occurred; and

		
	(b)
	the Agent shall be entitled to recover the value or amount of that security or payment from each Chargor, as if the payment, discharge, avoidance or reduction had not occurred.

15.4    Waiver of defences
The obligations of each Chargor under this Deed will not be affected by an act, omission, matter or thing which, but for this Clause 15.4 (Waiver of defences), would reduce, release or prejudice any of its obligations under this Deed (without limitation and whether or not known to it or the Agent or any other Secured Party) including:
		
	(a)
	any time, waiver or consent granted to, or composition with, any Chargor, any other Specified Loan Party or other person;

		
	(b)
	the release of any other Chargor, Specified Loan Party or any other person under the terms of any composition or arrangement with any creditor of any Chargor, Specified Loan Party or any other person;

		
	(c)
	the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security over assets of, any Chargor, Specified Loan Party or any other person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security;

		
	(d)
	any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of any Chargor, Specified Loan Party or any other person;

		
	(e)
	any amendment (however fundamental) or replacement of a Loan Document or any other document or security;

		
	(f)
	any unenforceability, illegality or invalidity of any obligation of any person under any Loan Document or any other document or security; or

		
	(g)
	any insolvency or similar proceedings.

15.5    Chargor intent
Without prejudice to the generality of Clause 15.4 (Waiver of defences), each Chargor expressly confirms that it intends that the guarantee and security created by this Deed shall extend from time to time to any (however fundamental) variation, increase, extension or addition of or to any of the Loan Documents and/or any facility or amount made available under any of the Loan Documents for the purposes of or in connection with any of the following:

13

		
	(a)
	acquisitions of any nature;

		
	(b)
	increasing working capital;

		
	(c)
	enabling investor distributions to be made;

		
	(d)
	carrying out restructurings;

		
	(e)
	refinancing existing facilities;

		
	(f)
	refinancing any other indebtedness;

		
	(g)
	making facilities available to new borrowers;

		
	(h)
	any other variation or extension of the purposes for which any such facility or amount might be made available from time to time; and

		
	(i)
	any fees, costs and/or expenses associated with any of the foregoing.

15.6    Immediate recourse
Each Chargor waives any right it may have of first requiring the Agent to proceed against or enforce any other rights or security or claim payment from any person before enforcing the security constituted by this Deed. This waiver applies irrespective of any law or any provision of a Loan Document to the contrary.
15.7    Appropriations
Until the expiry of the Security Period, the Agent may:
		
	(a)
	refrain from applying or enforcing any other monies, security or rights held or received by the Agent in respect of the Secured Liabilities, or apply and enforce the same in such manner and order as it sees fit (whether against the Secured Liabilities or otherwise) and no Chargor shall be entitled to the benefit of the same; and

		
	(b)
	hold in an interest-bearing suspense account any monies received from any Chargor or on account of any Chargor's liability in respect of the Secured Liabilities.

15.8    Deferral of Chargors' rights
Until the expiry of the Security Period, and unless the Agent otherwise directs, no Chargor will exercise any rights which it may have by reason of performance by it of its obligations under the Loan Documents:
		
	(a)
	to be indemnified by any other Chargor or any other Specified Loan Party;

		
	(b)
	to claim any contribution from any other guarantor of any Chargor's or Specified Loan Party's obligations under the Loan Documents; and/or

		
	(c)
	to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any of the Agent's rights under the Loan Documents or of any other guarantee or security taken pursuant to, or in connection with, the Loan Documents by the Agent.

15.9    Additional Security
This Deed is in addition to, is not in any way prejudiced by and shall not merge with any contractual right or remedy or other Security now or in the future held by or available to any Secured Party.
15.10    New Accounts
If a Secured Party receives notice (actual or otherwise) of any subsequent Security over or affecting all or any of the Security Assets it may open a new account or accounts with any Chargor and, if it does not do so, it shall nevertheless be treated as if it had done so at the time when it received or was deemed to have received notice of that subsequent Security, and as from that time all payments made by the relevant Chargor to that Secured Party:

14

		
	(a)
	shall be credited or be treated as having been credited to the new account of that Chargor; and

		
	(b)
	shall not operate to reduce the Secured Liabilities at the time when that Secured Party received or was deemed to have received such notice.

16    Notices
Any communications to be made under or in connection with this Deed shall be made in accordance with section 10.02 (Notices) of the Credit Agreement.
17    Miscellaneous Provisions
17.1    Separate Charges
This Deed shall, in relation to each Chargor, be read and construed as if it were a separate Deed relating to such Chargor to the intent that if any Security created by any other Chargor in this Deed shall be invalid or liable to be set aside for any reason, this shall not affect any Security created under this Deed by such first Chargor.
17.2    Counterparts
This Deed may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of this Deed.
17.3    Invalidity
If, at any time, any provision of this Deed is or becomes invalid, illegal or unenforceable in any respect under any law, the validity, legality and enforceability of the remaining provisions will not in any way be affected or impaired.
17.4    Rights and Remedies
The rights of the Secured Parties under this Deed are cumulative, may be exercised as often as considered appropriate and are in addition to the general law. Such rights (whether arising hereunder or under the general law) shall not be capable of being waived or varied otherwise than by an express waiver or variation in writing and, in particular, any failure to exercise or delay in exercising any of such rights shall not operate as a waiver or variation of that or any other such right, any defective or partial exercise of any such rights shall not preclude any other or further exercise of that or any other such right, and no act or course of conduct or negotiation by any Secured Party or on its behalf shall in any way preclude it from exercising any such right or constitute a suspension or any variation of any such right.
17.5    Accession of Affiliates
		
	(a)
	To the extent that any Affiliate of the Company is required by the terms of the Loan Documents to provide Security over its assets under English law, it may do so by executing a Deed of Accession and such Affiliate shall on the date which such Deed of Accession is executed by it become a party to this Deed in the capacity of a Chargor and this Deed shall be read and construed for all purposes as if such company had been an original party to this Deed as a Chargor (but for the avoidance of doubt the security created by such company shall be created on the date of the Deed of Accession).

		
	(b)
	Each Chargor (other than the Company) by its execution of this Deed or any Deed of Accession, irrevocably appoints the Company to execute on its behalf any Deed of Accession without further reference to or the consent of such Chargor and such Chargor shall be bound by any such Deed of Accession as if it had itself executed such Deed of Accession.

18    Release
18.1    Expiry of Security Period
		
	(a)
	Upon the expiry of the Security Period or as otherwise contemplated under the Loan Documents, the Agent shall, at the request and cost of the Chargors, take whatever action is necessary to 

15

release the Security Assets from the security constituted by this Deed and/or reassign the benefit of the Security Assets to the Chargors.
		
	(b)
	Section 93 of the Act shall not apply to this Deed.

18.2    Other Accounts
At any time before the Security created by this Deed shall have become enforceable, in the absence of any directions from the Agent to the contrary, any amounts permitted by the terms of the Loan Documents to be paid into an Other Account shall upon payment into such account stand released from any fixed charge in respect of such amount created pursuant to Clause 3 (Creation of Security) and shall stand subject to the floating charge created by Clause 3.3(a) (Other Assets), provided that such release shall in no respect prejudice the continuance of any fixed charge created pursuant to Clause 3 (Creation of Security) in respect of any other amount.
19    Governing Law and Jurisdiction
19.1    Governing Law
English law governs this Deed, its interpretation and any non-contractual obligations arising from or connected with it.
19.2    Jurisdiction
		
	(a)
	The courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this Deed (including a dispute regarding the existence, validity or termination of this Deed) (a Dispute).

		
	(b)
	The parties agree that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no party will argue to the contrary.

		
	(c)
	This Clause 19.2 (Jurisdiction) is for the benefit of the Secured Parties only. As a result, no Secured Party shall be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction. To the extent allowed by law, a Secured Party may take concurrent proceedings in any number of jurisdictions.

This Deed has been entered into as a deed on the date stated at the beginning of this Deed.

16

Schedule 1  
The Chargors
	
			
	Name of Chargor
	Jurisdiction of incorporation
	Registration number (if any)

	Premdor Crosby Limited
	England & Wales
	3227274

	Door-Stop International Limited
	England & Wales
	6498960

	Hickman Industries Limited
	England & Wales
	3635461

	Solidor Limited
	England & Wales
	5433881

	Toolsdecor Limited
	England & Wales
	3301539

17

Schedule 2
Forms of Notice to Banks and Acknowledgement
Part I - Collection Account Notice
[On Headed Notepaper of relevant Chargor]
[Date]
[Bank]
[Branch]
Attention:    [●]
Dear Sirs,
		
	1
	We (the Company) hereby give you notice that by guarantee and debenture dated [●], we have charged to [Agent] (the Agent) by way of first fixed charge all our rights, title, interest and benefit in and to the following account(s) held with yourselves and all amounts standing to the credit of such account from time to time:

Account No. [●], sort code [●] Account No. [●], sort code [●] [Repeat as necessary]
(the Collection Account(s)).
		
	2
	We irrevocably instruct and authorise you to, following receipt of a notice in writing from the Agent terminating the Company’s right to operate the Collection Account(s) (the Control Notice):

		
	(a)
	disclose to the Agent any information relating to any Collection Account requested from you by the Agent;

		
	(b)
	comply with the terms of any written notice or instruction relating to any Collection Account received by you from the Agent; and

		
	(c)
	pay or release any sum standing to the credit of any Collection Account in accordance with the written instructions of the Agent.

		
	3
	Following receipt of a Control Notice, you shall comply with all instructions received by the Agent from time to time with respect to the movement of funds from the Collection Account provided that such instructions are given in accordance with the terms of the attached acknowledgement letter.

		
	4
	As soon as practicable after receipt of a Control Notice, you shall provide the Agent with access to any online banking platform maintained by you to enable the Agent to give the instructions described in paragraph 3 above.

		
	5
	We acknowledge that you may comply with the instructions in this notice (the Notice) without any further permission from us.

		
	6
	Following the issuance of a Control Notice, we are not permitted to withdraw any amount from any Collection Account without the prior written consent of the Agent.

		
	7
	The instructions in this Notice may not be revoked or amended without the prior written consent of the Agent.

		
	8
	Please acknowledge receipt of this letter by returning a copy of the attached letter on your own headed notepaper with a receipted copy of this notice forthwith, to the Agent at [●], Attention: [●].

18

		
	9
	This Notice and any non-contractual obligations arising out of or in connection with it are governed by and shall be construed in accordance with English law.

Yours faithfully
for and on behalf of  
[the relevant Chargor]

19

Part II - Collection Account Acknowledgement
[On the Headed Notepaper of Bank]
[Date]
[Agent] (the Agent)
[Address]
Attention:    [●]
Dear Sirs,
[Name of Chargor] (Company)
		
	1
	We refer to the notice, received [today] from the Company with respect to the fixed charge which it has granted to the Agent over the Collection Account(s) (the Notice).

2    Terms not defined in this letter shall have the meanings given to them in the Notice.
		
	3
	We hereby acknowledge that the Company has charged to the Agent by way of a first fixed charge all of its rights, title, interest and benefit in and to the Collection Account(s).

		
	4
	We note that the Company is free to continue to operate the Collection Account(s) until such time as the Agent delivers a Control Notice to us (and as such that the charge over the Collection Account(s) is a floating charge). Any such Control Notice must be provided to [ ].

		
	5
	We hereby irrevocably undertake to you that until receipt by us of notice from you confirming that you no longer have any interest in the Collection Account(s) we shall:

		
	(a)
	not exercise any right of combination, consolidation, merger or set-off which we may have in respect of, or otherwise exercise any other right which we may have to apply any monies from time to time standing or accruing to the credit of the Collection Account(s) save for fees and charges payable to us for the operation of the Collection Account(s);

		
	(b)
	promptly notify you of any renewal, renumbering or redesignation of any and all of the Collection Account(s);

		
	(c)
	promptly send to you copies with respect to all the Collection Account(s) of all statements and, if requested by you, copies of all credits, debits and notices given or made by us in connection with such account;

		
	(d)
	comply with all instructions received by us from you from time to time with respect to the conduct of the Collection Account(s) provided that such instructions are given in accordance with the terms of this letter;

		
	(e)
	after the issuance of a Control Notice:

		
	(i)
	not permit or effect any withdrawal or transfer from the Collection Account(s) by or on behalf of the Company save for withdrawals and transfers requested by you in writing to us pursuant to the terms of this letter;

		
	(ii)
	comply with all instructions received by us from you from time to time with respect to the movement of funds from the Collection Account(s) provided that:

		
	(A)
	all instructions are received in writing, by facsimile, to us at facsimile number [●], attention: [●]; and

		
	(B)
	all instructions must be received by 2pm if they are to be complied with on the same Business Day. Instructions received outside such hours will be complied with on the 

20

next Business Day following such receipt. Facsimile instructions will be deemed received at the time of transmission;
		
	(C)
	all instructions are given in compliance with the mandate entered into by you stipulating who may give instructions to us; and

		
	(D)
	to the extent that an instruction is given which would in our opinion cause the Collection Account(s) to become overdrawn we will transfer the outstanding balance in the account;

		
	(iii)
	(subject to paragraph 5(e)(iv) below) effect the following transaction on a daily basis unless we receive written notice to the contrary in accordance with paragraph 5(e)(ii) above: the cleared balance of the Collection Account(s) will be transferred into the account at [Bank] account number [●], being an account in your name designated the [the relevant Borrower] Loan Account attn. [●]];

		
	(iv)
	not be obliged to comply with any instructions received from you or undertake the transactions set out in paragraph 5(e)(iii)) where:

		
	(A)
	due to circumstances not within our direct control we are unable to comply with such instructions; and

		
	(B)
	that to comply with such instructions will breach a Court Order or be contrary to applicable law;

and in each case we shall give notice thereof to the Company and the Agent as well as reasons why we cannot comply with such instructions; and
		
	6
	In the event that we are unable to comply with any instructions due to circumstances set out in paragraph 5(e)(iv), not be responsible for any loss caused to you or to the Company and in any event we shall not be liable for any consequential, special, secondary or indirect loss of or damage to goodwill, profits or anticipated savings (however caused).

		
	7
	You acknowledge that we are obliged to comply with the terms of this letter and that we have no notice of the particulars of the charge granted to you by the Company other than as set out in the Notice and this letter. You further acknowledge that subject to the terms of this letter we shall not be liable to you in any respect if the Company operates the Collection Account(s) in breach of any agreement entered into by the Company with you.

		
	8
	We note that, for the purposes of this letter, all notices, copy notices, advices and correspondence to be delivered to you shall be effectively delivered if sent by facsimile to you at number [●] or by post at the address at the top of this letter, in both cases marked for the attention of the [●].

This letter and any non-contractual obligations arising out of or in connection with it are governed by and shall be construed in accordance with English law.
Yours faithfully    We hereby acknowledge and accept the terms of
this letter
	
		
	for and on behalf of
	for and on behalf of

	[Bank]
	[Agent]

21

Part III - Other Accounts Notice
[On Headed Notepaper of relevant Chargor]
[Date]  
[Bank]  
[Branch]
Attention:    [●]
Dear Sirs,
		
	1
	We hereby give you notice that by a [guarantee and] debenture dated [●], we have charged to [Agent] (the Agent) all our rights, title, interest and benefit in and to the following account(s) held with yourselves and all amounts standing to the credit of such account from time to time:

Account No. [●], sort code [●]  
Account No. [●], sort code [●]  
[Repeat as necessary]  
(the Charged Account(s)).
		
	2
	Please acknowledge receipt of this letter by returning a copy of the attached letter on your own headed notepaper with a receipted copy of this notice forthwith, to the Agent at [●], Attention: [●].

Yours faithfully
for and on behalf of  
[the relevant Chargor]

22

Part IV - Other Accounts Acknowledgement
[On the Headed Notepaper of Bank]
[Date]
[Agent] (the Agent)
[Address]
Attention:    [●]
Dear Sirs,
[Name of Chargor] (Company)
		
	1
	We refer to the notice, received [today] from the Company with respect to the charge which it has granted to you over the Charged Accounts (the Notice).

2    Terms not defined in this letter shall have the meanings given to them in the Notice.
		
	3
	We hereby acknowledge that the Company has charged to you all of its rights, title, interest and benefit in and to the Charged Accounts.

		
	4
	We hereby irrevocably undertake to you that until receipt by us of notice from you confirming that you no longer have any interest in the Charged Accounts we shall:

		
	(a)
	not exercise any right of combination, consolidation, merger or set-off which we may have in respect of, or otherwise exercise any other right which we may have to apply any monies from time to time standing or accruing to the credit of the Charged Accounts save for fees and charges payable to us for the operation of the Charged Accounts;

		
	(b)
	promptly notify you of any renewal, renumbering or redesignation of any and all of the Charged Accounts;

		
	(c)
	upon request from you send to you copies with respect to all the Charged Accounts of all statements together with copies of all credits, debits and notices given or made by us in connection with such account;

		
	(d)
	permit or effect any withdrawal or transfer from the Charged Accounts in accordance with the Chargor's mandate with us until we receive notice from you terminating the Chargor's right to operate the Charged Accounts;

		
	(e)
	comply with all instructions received by us from you from time to time with respect to the conduct of the Charged Accounts provided that such instructions are given in accordance with the terms of this letter;

		
	(f)
	comply with all instructions received by us from you from time to time with respect to the movement of funds from the Charged Accounts provided that:

		
	(i)
	all instructions are received in writing, by facsimile, to us at facsimile number [●], attention: [●]; and

		
	(ii)
	all instructions must be received by 2pm if they are to be complied with on the same Business Day. Instructions received outside such hours will be complied with on the next Business Day following such receipt. Facsimile instructions will be deemed received at the time of transmission; and

		
	(iii)
	(iii) to the extent that an instruction is given which would in our opinion cause any Charged Account to become overdrawn we will transfer the cleared balance in the account.

(g)    not be obliged to comply with any instructions received from you where:

23

		
	(i)
	due to circumstances not within our direct control we are unable to comply with such instructions; and

		
	(ii)
	that to comply with such instructions will breach a Court Order or be contrary to applicable law;

and in each case we shall give notice thereof to you and the Company as well as reasons why we cannot comply with such instructions; and
		
	(h)
	in the event that we are unable to comply with any instructions due to circumstances set out in paragraph (g), not be responsible for any loss caused to you or to the Company and in any event we shall not be liable for any consequential, special, secondary or indirect loss of or damage to goodwill, profits or anticipated savings (however caused).

		
	5
	You acknowledge that we are obliged to comply with the terms of this letter and that we have no notice of the particulars of the charge granted to you by the Company other than as set out in the Notice and this letter. You further acknowledge that subject to the terms of this letter we shall not be liable to you in any respect if the Company operates the Charged Accounts in breach of any agreement entered into by the Chargor with you.

		
	6
	We are irrevocably authorised by you to follow any instructions received from you in relation to the Charged Accounts from any person that we reasonably believe is an authorised officer of the Agent, without further inquiry as to the Agent's right or authority to give such instructions and we shall be fully protected in acting in accordance with such instructions.

7    This letter is governed by and shall be construed in accordance with English law.
Yours faithfully    We hereby acknowledge and accept the terms of
this letter
	
		
	for and on behalf of [Bank]
	for and on behalf of [Agent]

24

Schedule 3
Charged Accounts
Part I – Collection Accounts
None as at the date of this Deed.
Part II – Other Accounts
	
					
	Chargor
	Bank
	Sort Code
	Account No.
	CUR

	Door-Stop International Limited
	[ _________ ]
	------
	--------
	GBP

	Premdor Crosby Limited
	[ _________ ]
	------
	--------
	GBP

	Premdor Crosby Limited
	[ _________ ]
	------
	--------
	EUR

	Premdor Crosby Limited
	[ _________ ]
	------
	--------
	USD

	Door-Stop International Limited
	[ _________ ]
	------
	--------
	GBP

	Door-Stop International Limited
	[ _________ ]
	------
	--------
	GBP

	Hickman Industries Limited t/a National Hickman Limited
	[ _________ ]
	------
	--------
	GBP

	Hickman Industries Limited t/a National Hickman Limited
	[ _________ ]
	------
	--------
	GBP

	Hickman Industries Limited t/a National Hickman Limited
	[ _________ ]
	------
	--------
	GBP

	Solidor Limited
	[ _________ ]
	------
	--------
	GBP

	Toolsdecor Limited
	[ _________ ]
	------
	--------
	GBP

25

Schedule 4
Deed of Accession
THIS DEED OF ACCESSION is dated [.] and made  
BETWEEN
		
	(1)
	[●] Limited [registered in England with number [.] whose registered office is at [.]][a corporation organised and existing under the laws of [.] whose principal place of business is at [.]][of [.]] (the New Chargor);

		
	(2)
	[PARTY NAME 1] [registered in England with number [.] whose registered office is at [.]][a corporation organised and existing under the laws of [.] whose principal place of business is at [.]][of [.]] for itself and as agent for and on behalf of each of the other Chargors presently party to the Debenture (as defined below) (Company); and

		
	(3)
	[Agent] (the Agent)  
RECITALS

		
	(A)
	The Company and others as Chargors entered into a [guarantee and] debenture dated [Ÿ] (as supplemented and amended from time to time, the Debenture) in favour of the Agent.

		
	(B)
	The New Chargor has at the request of the Company and in consideration of the Secured Parties continuing to make facilities available to the Borrowers to enter into this Deed and thereby become a Chargor under the Debenture.

		
	(C)
	The Chargors and the Agent intend that this document take effect as a deed notwithstanding that it may be executed under hand.

IT IS AGREED:
1    Terms defined in the Debenture have the same meaning when used in this Deed.
		
	2
	The New Chargor agrees to become a party to and bound by the terms of the Debenture as a Chargor with immediate effect and so that the Debenture shall be read and construed for all purposes as if the New Chargor had been an original party to the Debenture in the capacity of Chargor (but so that the security created consequent on such accession shall be created on the date of this Deed).

		
	3
	The New Chargor undertakes to be bound by all of the covenants and agreements in the Debenture which are expressed to be binding on a Chargor.

		
	4
	The New Chargor grants to the Agent the charges, mortgages and other Security described in the Debenture as being granted, created or made by Chargors under the Debenture and agrees to be bound by clause 15.1 (Guarantee and Indemnity) of the Debenture to the intent that its charges, mortgages and other Security shall be effective and binding upon it and its property and assets and shall not in any way be avoided, discharged or released or otherwise adversely affected by any ineffectiveness or invalidity of the Debenture or of any other party's execution of the Debenture or any other Deed of Accession, or by any avoidance, invalidity, discharge or release of any guarantee or charge contained in the Debenture or in any other Deed of Accession.

		
	5
	The Debenture and this Deed shall be read and construed as one to the extent and so that references in the Debenture to:

(a)this Deed and similar phrases shall be deemed to include this Deed;
(b)Schedule 3 (Charged Accounts) shall be deemed to include a reference to the Schedule to this Deed.
		
	6
	The parties agree that the bank accounts of the New Chargor specified in the Schedule to this Deed:

(a)as Other Accounts shall be designated as Other Accounts; and

26

(b)as Collection Accounts shall be designated as Collection Accounts, for the purposes of the Debenture.
		
	7
	The Company, for itself and as agent for and on behalf of the other Chargors under the Debenture, agrees and consents to all of the matters provided for in this Deed.

		
	8
	Without limiting the generality of the other provisions of this Deed and the Debenture, pursuant to the terms of this Deed and the Debenture, the New Chargor as security for the payment and performance of the Secured Liabilities, and in the manner specified in clause 4 (Nature of Security Created) of the Debenture:

(a)    charges to the Agent by way of a fixed charge all of its right, title and interest in and to:
		
	(i)
	the Collection Account(s) specified in the Schedule to this Deed; and

		
	(ii)
	all monies standing to the credit of such Collection Account(s) and the debts represented by them.

		
	9
	English law governs this Deed, its interpretation and any non-contractual obligations arising from or connected with it.

This Deed has been entered into as a deed on the date stated at the beginning of this Deed.
SCHEDULE
Charged Accounts
Collection Accounts
[Insert details of all Collection Accounts of the New Chargor]
Other Accounts
[Insert details of all Other Accounts of the New Chargor]

27

SIGNATORIES
[to the Deed of Accession]
The New Chargor
Executed as a deed by    )
[●] LIMITED    )
acting by a Director in the presence of:    )
Signature of witness:  
Name of witness:

Address:

The Company
for itself and as agent for the other  
Chargors party to the Debenture
Executed as a deed by    )
[COMPANY]    )
acting by a Director in the presence of:    )
Signature of witness:  
Name of witness:

Address:

The Agent  
[AGENT]  
By: 

28

SIGNATORIES
The Chargors
Executed as a deed by    )
Premdor Crosby Limited    )    /s/ Rose M. Murphy
acting by a Director in the presence of:    )    Rose M. Murphy
Signature of witness:                         /s/ Michael Fronte 
Name of witness:                        Michael Fronte
		
	Address:
	425 Lexington Ave New York, NY 10017           

Executed as a deed by    )
Door-Stop International Limited    )    /s/ Rose M. Murphy
acting by a Director in the presence of:    )    Rose M. Murphy
Signature of witness:                         /s/ Michael Fronte 
Name of witness:                        Michael Fronte
Address:                        425 Lexington Ave New York, NY 10017
Executed as a deed by    )
Hickman Industries Limited    )    /s/ Rose M. Murphy
acting by a Director in the presence of:    )    Rose M. Murphy
Signature of witness:                         /s/ Michael Fronte 
Name of witness:                        Michael Fronte
Address:                        425 Lexington Ave New York, NY 10017
Executed as a deed by    )
Solidor Limited    )    /s/ Rose M. Murphy
acting by a Director in the presence of:    )    Rose M. Murphy

29

Signature of witness:                         /s/ Michael Fronte
Name of witness:                         Michael Fronte 
Address:                        425 Lexington Ave New York, NY 10017
Executed as a deed by    )
Toolsdecor Limited    )    /s/ Rose M. Murphy
acting by a Director in the presence of:    )    Rose M. Murphy
Signature of witness:                         /s/ Michael Fronte 
Name of witness:                        Michael Fronte
Address:                            425 Lexington Ave New York, NY 10017
The Agent
Wells Fargo Bank, National Association
By:    /s/ Matt Mouledous
Name:    Matt Mouledous
Title:     VP 

30

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