Document:

ex10-6.htm

    Exhibit
10.6

     

     

    DEBT
PURCHASE AGREEMENT

     

    

     

    between

     

    Lloyds TSB Commercial Finance
Ltd., Niederlassung Deutschland, Gütersloher Str. 123, D-33415
Verl

     

    - hereinafter called the Buyer -

     

    and

     

    FERROMATIK MILACRON MASCHINENBAU
GMBH, registered in the commercial register of the Local Court Freiburg
i.Br. under HR B 260880, having its business seat at Riegeler Straße 4, D-79364
Malterdingen

     

    - hereinafter called the Seller -.

     

    

     

    WHEREAS:

     

    (A)           Pursuant
to a financing facility consisting of several debt finance facilities and a
property finance facility entered into by the Buyer, Lloyds TSB Bank PLC, and
any other assignee and / or participant of them (together the Lenders), the Seller and
certain other entities of the Milacron group (as Borrowers or Guarantors) on or about 10
March, 2008 as amended, varied, supplemented, superseded, increased or extended
from time to time, and as further set out in the Asset Based Finance Agreement
(the Facility), the
Lender has agreed to grant certain financing facilities to the Seller as well as
to other Borrowers.

     

    (B)           As
a part of the Facility, the Seller has agreed to sell to the Buyer and the Buyer
has agreed to purchase from the Seller the receivables of the Seller against the
customers of the Seller (hereinafter the Debtors) on a non-recourse
basis pursuant to the terms of this Agreement and subject to the Finance
Documents (as defined below).

     

    

     

    NOW, IT IS AGREED as
follows:

     

    
      	
              1

            	
              DEFINITIONS
      AND INTERPRETATION

            

    

     

    
      	
              1.1

            	
              Definitions

            

    

     

    In this
Agreement:

     

    “Agreement” means this Debt
Purchase Agreement including the Schedules hereto;

     

    “Aggregate Debt Financing
Limit” means the maximum
aggregate amount to be made available to CIMCOOL Europe B.V., CIMCOOL Industrial
Products B.V., D-M-E Europe CVBA and the Seller pursuant to debt financing
agreements at any one time;

     

    “Asset Based Finance Agreement”
means the agreement entered into by the Buyer, the Seller, and Lloyds TSB Bank
PLC (Netherlands Branch and Belgium Branch), MILACRON B.V., MILACRON Netherlands
B.V. CIMCOOL Europe B.V., CIMCOOL Industrial Products BV, MILACRON Kunststoffmaschinen Europa
GmbH, and D-M-E Europe CVBA (as Borrowers or Guarantors) on or about 10
March, 2008 as amended, varied, supplemented, superseded, increased or extended
from time to time;

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    “Business Days”, means days on
which banks are generally open for business in Germany and the
Netherlands;

     

    “EURIBOR” means the 1
month interbank rate offered in Euro displayed on Reuters screen page
EURIBOR 01 or, if such page is replaced or Reuters screen service ceases to be
available, such rate as displayed on such other page or service specified by the
Buyer, after consultation with the Seller;

     

    “Facility Amount” means the
maximum aggregate amount to be made available under the Facility which shall be
twenty seven million euros (€27,000,000) at any time outstanding on a revolving
basis;

     

    “Finance Documents” means (i)
this Agreement, (ii) the Asset Based Finance Agreement, and (iii) any agreement
in relation to the Facility, including all other finance or security documents
entered into by the Seller or by any Borrower or Guarantor under the Facility or
in connection with the Facility, (iii) all present and future swap, hedging,
foreign exchange or other derivative transactions entered into by the Seller or
by any Borrower or Guarantor with any person that is a Lender at the time such
transaction is entered into but only for so long as such person is a
Lender;

     

    “Material Adverse Change” means
in the reasonable opinion of the Buyer a material adverse effect
on:

     

    
      	
               
      

            	
              (a)

            	
              the
      business, operations, property, condition (financial or otherwise) or
      prospects of the Seller; or

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      ability of the Seller to perform its obligations under the Finance
      Documents; or

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      validity or enforceability of, or the effectiveness or ranking of any
      Security granted or purporting to be granted pursuant to any of, the
      Finance Documents by the Seller;

            

    

     

    “Parties” means the Seller and
the Buyer.

     

    
      	
              1.2

            	
              Interpretation

            

    

     

    This
Agreement is made in the English language. For the avoidance of doubt, the
English language version of this Agreement shall prevail over any translation of
this Agreement. However, where a German translation of a word or phrase appears
in the text of this Agreement, the German translation of such word or phrase
shall prevail wherever such original English word or phrase translated by such
German word or phrase appears in the text of this agreement.

     

    If
certain capitalised terms are not expressly defined herein, such terms shall
have the same meaning in this Agreement as is set out in the Asset Based Finance
Agreement.

     

    
      	
              2

            	
              SUBJECT
      OF THE CONTRACT

            

    

     

    
      	
              2.1

            	
              The
      Buyer purchases from the Seller all current and, after the execution of
      this Agreement, outstanding receivables of the Seller from deliveries and
      services from its domestic and overseas Debtors other than as specifically
      excluded in the Term Sheet (Schedule
      2).

            

    

     

    
      	
              2.2

            	
              The
      purchase of the receivables is made subject to the conditions of this
      Agreement, and independently of whether the Buyer has assumed liability
      for the inability of the Debtors to
pay.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              2.3

            	
              In
      individual cases, the Buyer is entitled, as a derogation from clause 2.1
      upon providing reasons, in so far this is possible under data protection
      laws and with regard to the legal interests of third parties, to refuse
      the purchase of individual
receivables.

            

    

     

    
      	
              3

            	
              ASSIGNMENT
      OF RECEIVABLES

            

    

     

    
      	
              3.1

            	
              The
      Seller hereby already assigns all of its receivables relating to this
      Agreement to the Buyer who hereby accepts the
  assignment.

            

    

     

    
      	
              3.2

            	
              With
      the receivables, the Seller also assigns all related security and
      ancillary rights, in particular the security agreed with its Debtors
      pursuant to its terms of delivery. The Buyer hereby accepts the
      assignment.

            

    

     

    
      	
              3.3

            	
              In
      so far as by reason of applicable law, the assignment of the receivables
      and/or the security and ancillary rights is contrary to the rights of
      third parties, the relevant assignment will extend to the non-assignable
      part of the receivable and/or the security and ancillary rights, subject
      to the following: The receivables or parts of receivables affected by the
      rights of third parties as well as the relevant security and ancillary
      rights are already conditionally assigned to the Buyer. The Buyer accepts
      the assignment. The transfer of the receivable shall in such a case only
      be effective upon extinction of the third party right. This applies in
      particular to extended retentions of title of the suppliers of the Seller,
      in so far as in individual cases they affect the acquisition of the
      receivable.

            

    

     

    
      	
              3.4

            	
              The
      Buyer is entitled, on behalf, and at the cost, of the Seller, by redeeming
      the third party right preventing the assignment of the receivable, to
      extinguish it and to effect the assignment of the
    receivable.

            

    

     

    
      	
              4

            	
              PURCHASE
      PRICE

            

    

     

    
      	
              4.1

            	
              The
      purchase price to be paid by the Buyer for each receivable is the amount
      of the receivable actually outstanding (e.g. the gross receivable less any
      discounts, bonuses or other deductions etc.) to the Seller from the
      relevant Debtor less the fees due to the Buyer under this
      Agreement.

            

    

     

    
      	
              4.2

            	
              The
      purchase price for receivables for which the Buyer assumes del
      credere (Approved Receivables),
      will be paid to the Seller as an first payment and a second payment as set
      out in the Term Sheet  (Schedule
      2).

            

    

     

    
      	
              4.3

            	
              The
      Buyer is entitled to wholly or partly withhold amounts which are due to be
      paid out if it becomes aware of circumstances which affect the legal
      existence or the transferability of the receivables assigned to
      it.

            

    

     

    
      	
               
      

            	
              With
      regard to a potential liability of the Buyer for VAT purposes according to
      Sec. 13c German VAT Act the Buyer, moreover, is entitled to wholly or
      partly withhold such amounts if the Seller does not, or not properly,
      comply with its obligations relating to VAT as agreed upon between the
      parties (in particular clause 12 of the Standard Debt Purchase Terms and
      Conditions, Schedule 1), or
      if the Buyer has reasonable doubts regarding
  this.

            

    

     

    
      	
              4.4

            	
              The
      Buyer is entitled to wholly or partly withhold the first or any following
      payment if one of the conditions for payment as listed in Schedule 2 is
      not met at the point in time as each
applicable.

            

    

     

    
      	
              4.5

            	
              The
      purchase price for receivables for which there is no assumption of del
      credere (Unapproved
      Receivables) will be paid to the Seller following the corresponding
      payment to the Buyer on the part of the Debtor with deduction of
      compensation due to the Buyer (fees, expenses
  etc.).

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              5

            	
              DEL
      CREDERE

            

    

     

    The Buyer
is liable for the risk of the inability to pay of the Debtors of the Seller (del
credere) in relation to the receivables assigned by the Seller pursuant to this
Debt Purchase Agreement in accordance with the Standard Debt Purchase Terms and
Conditions (Schedule
1) as well as the conditions in the Term Sheet (Schedule
2).

     

    
      	
              6

            	
              DEBTOR
      ACCOUNTING / DISCLOSURE OF RECEIVABLES
  ASSIGNMENT

            

    

     

    
      	
              6.1

            	
              The
      Seller shall conduct for the Buyer the Debtor accounting as well as the
      extra-judicial recovery and collection activities in compliance with
      general commercial principles and generally accepted accounting
      principles. The Buyer is entitled at any time on first demand, acting
      reasonably, to itself conduct the Debtor accounting, including the
      recovery and collection activities. Upon the relevant request, the Seller
      shall provide to the Buyer all documents, data, information and everything
      else the Buyer requires in order to assume the Debtor accounting. The
      Buyer is entitled after taking over the Debtor accounting from the Seller,
      to wholly or partly assign it to third
parties.

            

    

     

    
      	
              6.2

            	
              The
      Seller notifies the Buyer, or a service provider designated by the Buyer,
      daily of the invoices and credits as well as the payment entries and all
      other book entries in the Debtors accounts (book entry journal) of the
      preceding day and the resulting current receivables balance per RDT
      (Remote Data Transmission) in accordance with a special Remote Data
      Transmission Agreement to be entered into with the Buyer, or a service
      provider designated by the Buyer (Schedule 8). In
      parallel, the Buyer will maintain the data. As per the end of the month
      and upon demand by the Buyer the Seller will in addition transmit promptly
      in the same way its current Debtor register and the up to date make up of
      the outstanding Debtor position.

            

    

     

    
      	
              6.3

            	
              The
      Buyer is entitled at any time, acting reasonably, to notify any or all of
      the Debtors of the assignment of the receivables and the security and
      ancillary rights. The Seller will make available to the Buyer upon
      commencement of this Agreement, in sufficient number, signed blank letters
      in the form as attached in Schedule 5,
      which the Buyer may use to notify the assignment of the receivables and
      the security and ancillary rights to the
  Debtors.

            

    

     

    
      	
              7

            	
              LIABILITY
      OF THE SELLER / WARRANTEES

            

    

     

    
      	
              7.1

            	
              The
      Seller is obliged to assign a receivable free of
  defects.

            

    

     

    
      	
              7.2

            	
              The
      Seller warrants to the Buyer – independently of intent or negligence –
      that the receivable, as it was described in the transferred data,
      including all security and ancillary rights, is assignable and is not
      subject to defences, objections or opposing rights of the Debtor or other
      third parties. Further, the Seller is in the same way liable irrespective
      of negligence that until its fulfilment, the status of the receivable will
      not be retrospectively changed, in particular will not be affected by
      defences, objections or rights of retention, e.g. set off, settlement,
      avoidance or rectification. The Seller warrants furthermore that it is
      entitled to assign this receivable.

            

    

     

    
      	
              7.3

            	
              In
      the case of a warranty claim, the Buyer may demand the removal of the
      defect (subsequent performance). After an unsuccessful expiry of a grace
      period of ten (10) Business Days, the Buyer may withdraw from the
      receivables purchase, or, where such defences, objections or opposing
      rights of the Debtor or other third parties as referred to in clause 7.2
      have not been disclosed to the Buyer at the time of notification of the
      respective receivable, may reduce the purchase price, as well as enforce a
      claim for damages. The same applies where the setting of a grace period is
      not required by law.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              7.4

            	
              The
      Seller hereby expressly covenants that it has not otherwise assigned the
      receivables from its Debtors, which have been assigned to the Buyer,
      unless the receivables were transferred to the party extending the trade
      credit by way of an extended retention of title in accordance with the
      General Terms of Payment and Delivery of the Seller’s suppliers, which
      have been accepted by the Seller.

            

    

     

    
      	
              7.5

            	
              The
      Seller further represents to the Buyer and warrants that, in particular,
      the staff of its financial accounting department and other staff members
      and third parties dealing with the accounts receivable accounting and the
      collection of the receivables are fully aware of the Debt Purchase
      Agreement, and that the resultant measures to ensure the receipt of
      payments by Debtors in the account of the Buyer will be implemented in
      full.

            

    

     

    
      	
              7.6

            	
              The
      Seller makes available to the Buyer covenants of all of its business banks
      that they will not enforce any rights to the purchased receivables and the
      assigned security and ancillary rights (Negative Covenant Banks, Schedule
      6).

            

    

     

    
      	
              8

            	
              DEBTOR
      PAYMENTS

            

    

     

    
      	
              8.1

            	
              In
      business transactions with the Debtors, the Seller will only use a bank
      account notified in writing over which the Buyer or third parties
      authorised by the Buyer have exclusive power of disposal and for which the
      Seller merely has a right of inspection (the Collection Account). The
      Buyer will notify the Seller of these bank details upon commencement of
      the working relationship. The Seller is obliged to notify its Debtors only
      of this bank account (business papers, invoice forms
  etc.).

            

    

     

    
      	
              8.2

            	
              Amounts
      not owed under this Agreement which have been effected to the Collection
      Account will be forwarded by the Buyer to the Seller promptly upon the
      verification of such amounts not being owed under this
      Agreement.

            

    

     

    
      	
              9

            	
              FEES
      / INTEREST

            

    

     

    
      	
               
      

            	
              The
      fees and interest to be paid by the Seller are set out in the Term Sheet
      (Schedule
      2).

            

    

     

    
      	
              10

            	
              VALUE
      ADDED TAX (VAT)

            

    

     

    
      	
              10.1

            	
              The
      fees will be increased by the amount of VAT applicable pursuant to the
      relevant provisions of the German VAT
Act.

            

    

     

    
      	
              10.2

            	
              In
      case that the transaction under the Debt Purchase Agreement is regarded as
      tax exempt according to section 4 No. 8 lit. a-g German VAT Act, the Buyer
      hereby opts for VAT pursuant to section 9 (1) German VAT Act. This means
      that the services rendered from the Buyer to the Seller under the Debt
      Purchase Agreement are subject to German
VAT.

            

    

     

    
      	
              10.3

            	
              In
      such case, the Seller irrevocably waives his right to opt for VAT with
      regard to the assignment itself. Therefore, the assignment of the
      receivable remains always tax
exempt.

            

    

     

    
      	
              10.4

            	
              In
      case that an amendment of the legislation or the issue of a directive of
      the responsible tax authorities results in a change of the legal treatment
      of debt purchases as agreed upon in this Agreement, the parties will agree
      to amend the afore mentioned provisions according to the spirit and
      purpose of this Agreement.

            

    

     

    
      	
              11

            	
              TERM
      OF CONTRACT AND TERMINATION

            

    

     

    
      	
              11.1

            	
              Commencement,
      duration and termination of this Agreement are set out in the Term Sheet
      (Schedule
      2). Termination shall be in
writing.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              11.2

            	
              After
      the end of the contract, no further receivables will be purchased on the
      part of the Buyer. Upon termination the Parties are obliged to administer
      ongoing transactions as normally contemplated by this Agreement, or as
      otherwise agreed between the Parties in
writing.

            

    

     

    
      	
              11.3

            	
              The
      right of the Parties to terminate this contract without notice for good
      cause remains unaffected.

            

    

     

    
      	
              11.4

            	
              The
      Buyer is in particular entitled to refuse payments under this Agreement in
      whole or in part or to terminate this Agreement without notice (each an
      Event of
      Default)

            

    

     

    
      	
               
      

            	
              (a)

            	
              if
      the Seller culpably infringes its obligations under this Agreement and
      does not remedy such infringement within ten (10) Business Days despite
      the respective request from the
Buyer,

            

    

     

    
      	
               
      

            	
              (b)

            	
              continuously
      infringes its obligations,

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      Seller breaches other duties resulting from the Finance Documents, and
      these breaches of duty including their consequences are not remedied
      within 10 business days after written notice issued by the
      Lender;

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      Borrower voluntarily subjects itself to liquidation proceedings or
      insolvency proceedings are applied or opened against the assets of the
      Seller or the opening of such proceedings are rejected due to lack of
      assets, provided that such filing is not
      frivolous or vexatious;

            

    

     

    
      	
               
      

            	
              (e)

            	
              a
      Material Adverse Change occurs;

            

    

     

    
      	
               
      

            	
              (f)

            	
              any
      other Finance Document concluded between the Seller or other Borrowers or
      Guarantors and the Lenders is terminated for whatever reason with
      termination of any of the debt financing facilities or property financing
      facilities will cause all other debt financing facilities or property
      financing facilities under the Facility to be terminated
      simultaneously.

            

    

     

    
      	
              11.5

            	
              The
      Borrower is obligated to compensate the Lender for the damages and
      reasonable out of pocket expenses, which result from the termination of
      the Loan Agreement.

            

    

     

    
      	
              11.6

            	
              The
      winding down procedures of this contract following termination without
      notice are set out in the Standard Debt Purchase Conditions (Schedule
      1).

            

    

     

    
      	
              12

            	
              FINAL
      PROVISIONS

            

    

     

    
      	
              12.1

            	
              The
      Seller shall provide to the Buyer a list of the persons who are entitled
      to represent the Seller together with a list of the specimen of such
      persons. Between Seller and Buyer, the persons designated in such list are
      deemed to be duly authorised by the Seller to represent the Seller until
      the Seller notifies the Buyer of the contrary in
  writing.

            

    

     

    
      	
              12.2

            	
              Amendments
      to or alterations of this Agreement, including this provision, have to be
      made in writing, unless a stricter form is required by
  law.

            

    

     

    
      	
              12.3

            	
              This
      Agreement is subject to the laws of the Federal Republic of Germany
      excluding conflict of law rules. Place of jurisdiction is
      Berlin.

            

    

     

    
      	
              12.4

            	
              Should
      individual provisions of this Agreement be fully or partially void or not
      executable, this shall not affect the effectiveness of the remaining
      provisions in this Agreement. The Parties undertake to replace such a void
      or inexecutable provision by a valid or implementable provision which
      comes closest to the economic effect desired by the Parties in relation to
      the void or inexecutable provision. The same applies with respect to an
      incompleteness of this Agreement.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              12.5

            	
              All
      costs (including reasonable out of pocket legal fees) and taxes incurred
      in connection with entering into and the execution of this Agreement shall
      be borne by the Seller.

            

    

     

    
      	
              12.6

            	
              This
      Agreement constitutes a Finance
Document.

            

    

     

     

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
 

     

    SCHEDULE
1

     

    STANDARD
DEBT PURCHASE TERMS AND CONDITIONS

     

    1.           Basis

     

    

     

    
      	
               
      

            	
              The
      invoices of the Seller to its Debtors) form the basis of the receivables
      purchase between Lloyds TSB Bank PLC (hereinafter the Buyer) and the
      Seller. These shall set out all important particulars of the receivable
      from the Debtor. The Seller is obliged immediately after dispatch
      

            	 	 	of
      goods or performance of its service, as the case may be, to provide the
      Buyer with all data of invoices, which are a part of this contract, by
      remote data transmission (RDT). The RDT processes will be set out in a
      specific agreement.

    

     

    

    
    

     

    
      	 2.
      	 General Terms and Conditions of
      Business of the Seller

    

     

    
       

    

    
    

     

    
      	 2.1	
              The
      Seller shall use its best efforts to ensure that for the duration of this
      contractual relationship, its general delivery and payment conditions
      correspond with the provisions of this contract and are included in the
      business relationship with its Debtors. The Seller is obliged to adapt or
      amend Its delivery and payment conditions in a legal manner respectively.
      Irrespective of such obligation, 

            	 	  

               

               

               

              2.2
      

               

               

              2.3

            	the Seller shall
      submit to the Buyer for its review the Seller’s general delivery and
      payment conditions, without the Buyer’s obligation to review resulting
      from such submission and without an approval resulting from the Buyer’s
      non-objection. 

               

              Furthermore
      the Seller shall use its best efforts to validly agree with the Debtor the
      applicability of German law.

               

              
                The
      Seller shall use its best efforts not to make any agreement with its
      Debtors such that the assignment of receivables by way of Debt Purchase
      arrangements is banned.

              

            

    

     

     

    
      
        	3.
      	
                Del
      Credere Circumstances

              

      

       

       

    

    
      
        	
                3.1

              	
                It
      is a condition of the assumption of the del credere risk by the Buyer that
      the Buyer provides individually for each Debtor a written liability
      consent (limit grant).  In
      so far as the liability consent is provided, it will include for each
      Debtor an individually set credit limit. For the receivables assigned to
      the Buyer pursuant to this contract, which are within that credit limit,
      the Buyer will bear the corresponding del credere risk.

              	 
      	
                3.2

              	
                The
      assumption of del credere risk will not occur for receivables from
      deliveries and services of the Seller  

              
	 
      	 
      	 
      	
                -

              	
                on
      commission or to the extent the delivery or service is not finally
      performed,

              
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	
                For
      receivables or portions of receivables for which the Buyer does not assume
      del credere risk, the Seller will bear the default risk. In the case of a
      default of such receivables, the Buyer may reassign the receivables to the
      Seller. The Seller is in this case obliged, insofar as it has already
      received purchase price payments, to repay these to the
    Buyer.

              	 
      	 
      	
                -

                 

                 

                 

                -

              	
                with
      payment terms of more than 4 months, if not otherwise agreed between the
      Buyer and the Seller in writing; should such agreement not be reached, the
      Seller may request at any time such receivables to be
      reassigned,

                 

                undertakings
      of the Seller in which the Seller directly or indirectly holds a interest
      or can otherwise demonstrably exercise material influence on the running
      of the business,

              

      

    

     

    
      
        	 	
                -

                 

                -

                 

                -

                 

                -

              	
                
                  to
      its directors or shareholders,

                   

                  
                    due
      from the sale of  its own capital assets,

                     

                    
                      outside
      of its ordinary course of business,

                       

                      
                        where
      the Debtor does not have an established place of
      business,

                      

                    

                  

                

              	 	 	
                Every
      payment made before the occurrence of the inability to pay will be set off
      against the respective oldest receivable. Cheques, bills of exchange, bank
      debits etc. are effective as payment only upon final settlement. Should
      the Buyer choose to effect preliminary payments with regard to such
      Cheques, bills of exchange or bank debits and final settlement should not
      be made, then all receivables which have been prioritised in the meantime
      shall lose del credere protection retrospectively.

              
	 	 	 	 	 	 
	 	
                -

                 

                -

                 

              	
                on
      probation or  approval,

                 

                paid
      for on account or on similar conditions where further actions on the part
      of the Seller are required before payment,

                
                   

                

              	 	3.5	
                The
      Buyer is entitled to subsequently change notified limits. In particular
      for an increase in risk or other reasons deemed valid by the Buyer, it can
      at any time restrict or revoke the limit for the relevant Debtor.
      Receivables secured by previously notified limits will not be affected by
      a subsequent limit reduction.

              
	 	-	
                which
      are subject to the possibility of a right of set-off, counter claim, legal
      action or a third party claim.

              	 	 	 

      

       

      
        
          	 
      	
                  Receivables,
      which are not provided to the Buyer with the correct and complete address
      of the Debtor or the relevant Debtor firm name are excluded from the
      assumption of del credere risk. The Buyer is entitled, in particular where
      the Debtor cannot be ascertained by normal efforts, to charge purchase
      prices already paid for such receivables back to the Seller. The same
      applies where the Seller does not arrange his legal relationship with the
      Debtor as set out above under clause 2 (General Conditions of Business of
      the Seller), in particular with receivables from deliveries of goods where
      no general right of retention is agreed.

                	 
      	
                  3.6

                	
                  The
      del credere case is established 120 days after the receivable is due and
      payable, provided that the Debtor does not raise any  objections
      against the receivable other than obviously unfounded (to be evidenced by
      the Seller) objections. The del credere case is established, under
      otherwise identical conditions, if

                
	 
      	 
      	 
      	
                  a)

                   

                   

                  b)

                	
                  insolvency
      proceedings are commenced or their commencement was refused by a court by
      reason of a lack of assets (mangels Masse),
      or

                   

                  an
      out of court liquidation or quota composition has been made with all
      creditors.

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  Unpaid
      minor receivables in an amount of up to € 50 will be reassigned back to
      the Seller following unsuccessful pre-court recovery
    measures.

                	 
      	
                  3.7

                	
                  The
      point in time for the occurrence of an inability to pay
  is

                

        

         

      

      
        
          	
                  3.3

                	
                  Should
      the receivables submitted in relation to a Debtor exceed the del credere
      limit notified, then the Seller may request an increase in relation to the
      limit. The Buyer will then carry out the necessary investigations and
      inform the Seller forthwith whether an increase to the limit can be
      made.

                	 
      	 
      	
                  -

                   

                  -

                	
                  in
      the case of a) the day of the court decision,

                   

                  
                    in
      the case of b), the day on which all creditors have provided their consent
      to the composition.

                  

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  Del
      credere risk will not be assumed for (the part of) the receivables which
      exceed the limit. In the case of a default, these (parts of the)
      receivables exceeding the limit can be assigned back to the
      Seller.

                	 
      	3.8	
                  The
      del credere risk is only assumed by the Buyer if the Seller complied with
      all information undertakings and obligations pursuant to clause 5 of the
      Standard Debt Purchase Terms and Conditions at the time of the respective
      Sale.

                
	 
      	 
      	 
      	 
      	 
      
	
                  3.4

                	
                  In
      so far as an exhausted limit is released by payments of the Debtor,
      receivables will be prioritised in accordance with their
      maturity.

                	 
      	
                   

                	
                   

                

        

         

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

     

    
       

      
        
          	4.
      	
                  
                    Objection
      / Overdue / Disclosure / Court
Recovery

                  

                

        

         

      

    

     

    
      
        	
                4.1

              	
                As
      soon as and to the extent the Debtor raises defences (Einreden) or objections
      (Einwendungen)
      which relate to the legal existence of the receivable and which are not
      obviously unfounded, the Buyer may assert the following
      rights:

              	 
      	 
      	 
      	
                deduct
      the respective amount from the Seller’s account; or

              
	 
      	
                a)

              	
                If
      the Seller wholly or partly agrees with the defences or objections of the
      Debtor, then the Buyer may finally enforce its rights under clause 7.3 of
      the Debt Purchase Agreement.

              	 
      	 
      	
                b)

              	
                otherwise
      the Seller shall, if not already done so, disclose to the Debtors the
      assignment of the receivable to the Buyer. The content of the disclosure
      notification will be agreed between the Buyer and the
    Seller.

              
	 
      	 
      	
                b)As
      long as the entitlement to the defences or objections is not clarified,
      the Buyer is entitled to make a preliminary recharge of the receivable
      without reference to the final enforcement of the rights under 7.3 of the
      Debt Purchase Agreement. This also applies in case of a judicial dispute
      with the Debtor. The Buyer will usually carry out the recharge to the
      Seller 14 days after notification of the objection or
    defence.

              	 
      	
                4.3

              	
                In
      case of a collection measure by the Buyer or its legal successor against
      the Debtor under commercial default proceedings, the Buyer or its legal
      successor will carry the costs in relation to the Seller, to the extent
      the Buyer is entitled to recover costs from the Debtor. Otherwise the
      Seller shall bear the costs. For a Debtor process, the Buyer may in every
      case require a reasonable advance from the Seller, which also includes
      possible cost recovery claims of the Debtor.

              
	
                4.2

              	
                In
      so far as the receivables from a Debtor are not settled within 65 days
      after the receivable being due and payable,

              	 
      	 
      	
                As
      against the Buyer, the Seller cannot rely on the fact that the dispute
      with the Debtor was wrongly decided or that the Buyer conducted the
      process inefficiently, if the Buyer requested the Seller’s participation
      by notice.

              
	 
      	
                a)

              	
                the Seller, or an agent
      designated by the Seller, may notify the Buyer within five business days
      that it offers to have this receivable re-assigned and re-purchased, and
      the Buyer herewith accepts such offer and shall re-transfer the receivable
      and ancillary rights and security, and shall

              	 
      	
                4.4

              	
                The
      Seller is obliged to forthwith inform the Buyer of defences raised by
      Debtors and to immediately establish and book credits where the conditions
      are met and in that way to let the notifications pass to the
      Buyer.

                 

              

      

    

     

     

    
      
         

        
          
            	5.
      	
                    
                      
                        Notification
      and other Cooperation
Obligations

                      

                    

                  

          

           

        

      

    

     

    
      
        	
                5.1

              	
                The Buyer is to be immediately
      informed by the Seller of the following circumstances:

                 

              	 
      	 
      	
                c)

                 

              	
                if
      the Debtor’s account is credited. The Buyer may set off the credit against
      the current value of newly submitted invoices;

                 

              
	 
      	
                a)

                 

                b)

              	
                if
      receivables are overdue by more than 45 days;

                 

                notifies
      subsequent debit entries (Rücklastschriften);
      unpaid checks, acceptances (or other means of payment);

              	 
      	 
      	
                d)

                 

                 

                e)

              	
                if
      agreements are made between the Seller and third parties which relate to
      the assigned receivables;

                 

                if
      the Debtor contests with the Seller his obligations to
  pay;

              

      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      
        	 
      	
                f)

                 

                 

                g)

                 

                 

                h)

              	
                if
      counter claims of the Debtor come into existence. The Seller is obliged to
      immediately clear or pay off the counter claims;

                 

                if
      the Debtor makes complaints about otherwise valid reasons to refuse or
      withhold payment;

                 

                if
      circumstances are known or become known to the Seller or its
      representatives or agents which indicate a detriment to the
      creditworthiness of the Debtor and which could therefore put at risk the
      recovery of the receivables transferred to the Buyer or any security
      transferred to the Buyer. The Seller shall immediately notify the Buyer in
      suitable form, usually by  facsimile or by remote data
      transmission, of any threatened or actual inability to pay of its
      individual Debtors. Other circumstances increasing risk also require
      immediate notification; this applies in particular for

              	 
      	
                5.2

                 

                 

                5.3

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                5.4

              	
                In
      addition, the Seller is obliged to forthwith inform the Buyer about all
      material circumstances affecting its business and to provide the relevant
      documents.

                 

                The
      Buyer or a third party on its behalf is entitled at any time to examine at
      the Seller’s premises the company books, data, accounts, written
      documents, records or other sources of information of the Seller in so far
      as they relate to receivables which are subject to this contract. In order
      to carry out the review, the Buyer is entitled at any time during normal
      business hours to reasonable access to the business premises of the
      Seller. At the request of the Buyer, it shall be provided with copies, and
      if necessary the originals, of the sources of information set out above.
      In addition, the Buyer is entitled, in order to clarify matters or to seek
      information which relates to the assigned receivables, to consult with
      relevant employees of the Seller who shall provide information to the
      Buyer to the best of their knowledge and belief.

                 

                 The
      Seller irrevocably authorises the Buyer
to

              

      

    

     

    
      
        	 
      	 
      	
                1)

                 

                 

                2)

                 

                3)

                 

              	
                adverse
      information about the financial situation, payment method or personal
      evaluation of the customer,

                 

                a
      serious deterioration of paying habits,

                 

                termination
      of supply out of reasons of creditworthiness.

                 

              	 
      	 
      	
                a)

              	
                provide
      the Seller’s banks (including its previous or future banks, at which it at
      any time had an account), Lloyds TSB Bank PLC or any of its subsidiaries
      or the Seller’s auditors and accountants with such information as they may
      require
      in relation to the Seller’s business and affairs and the operation and
      effect of this agreement; 

                   

                

                 

              

      

    

     

    
      
        	 
      	
                i)

                 

                 

                 

                 

                j)

              	
                every
      material fact or matter which the Seller knows, or ought to have known,
      which might influence the Buyer in deciding whether or not to enter into
      this agreement or to accept any person as an surety or
      guarantor;

                 

                
                  of
      any past insolvency of the Seller’s managing directors or shareholders or
      any other company in which they have an interest or of any
      disqualification at any time of any of the managing director from acting
      as a  managing director;

                

              	 
      	 
      	
                b)

                 

                 

                 

                c)

              	
                obtain
      from the Seller’s banks or Lloyds TSB Bank PLC or any of its subsidiaries,
      with whom the Seller has accounts, or the Seller’s auditors and
      accountants such information as the Buyer may require;

                 

                
                  obtain
      from the Seller’s Debtors the consent to taking references from their
      banks.

                

              

      

    

     

    
      
        	 	
                k)

                 

                l)

                 

                m)

              	
                if
      a Material Adverse Change occurs;

                 

                if
      the Seller intends to amend his delivery and payment
      conditions;

                 

                if
      changes to the business or company structure of the Seller are planned.
      This includes changes in the rights of representation of the
      Seller.

              	 
      	
                5.5

              	
                The
      Seller is obliged, in the context of alternatives in the collection of
      receivables, in particular in the context of judicial proceedings and the
      enforcement of rights of retention, to support the Buyer by information
      and reasonable measures; in particular the Seller is obliged to make all
      documents available as are required to realise the receivables. In
      addition, in the context of its obligation to mitigate damage, the Seller
      is obliged to take back retention stock on the original terms, in order to
      reduce the original
receivable.

              

      

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	 
      	 
      	 
      	 
      	 
      
	
                 

                 

                 

                5.6

              	
                To
      the extent the Seller does not comply with its obligations of cooperation,
      the Buyer is entitled to recharge the relevant receivable to the
      Seller.

                 

                The
      Seller is obliged to comply at all times with the provisions of the German
      Data Protection Act (Bundesdatenschutzgesetz)
      and to allow the Buyer or duly appointed representatives at any time
      during normal business hours and on reasonable notice to inspect the
      measures the Seller has taken to comply with the Data Protection Act
      (Bundesdatenschutzgesetz)
      in accordance with this agreement.

                 

              	 
      	
                5.7

              	
                Both
      contract parties are obliged not to provide the contents or parts out of
      this Agreement to third parties. This does not apply to the extent the
      Buyer wholly or partly assigns rights and obligations under this Agreement
      to third parties. In this case the Buyer shall oblige the third parties in
      accordance with this paragraph to comply with the provisions of this
      Agreement.

                 

              
	 
      	 
      	 
      	 
      	 
      

      

       

      
         

        
           

          
            
              	6.
      	
                      
                        
                          Direct
      Payments

                        

                      

                    

            

             

          

        

      

       

       

      
        	
                6.1

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                6.2

              	
                Should
      payments of assigned receivables be made to the Seller or to accounts of
      the Seller at other banks, then the Seller will hold these as trustee for
      the Buyer and shall forward them immediately to the Buyer with all
      original ancillary documents – the transfer receipt, settlement letters
      etc, as well as with copies of cheques, if any.

                 

                The
      Seller hereby already assigns its credit entitlements against the relevant
      bank in the amount of the sums paid by the Debtor and grants to the Buyer
      an irrevocable power of attorney on its part to instruct that bank to
      transfer the credit entitlements to the Buyer. The Buyer hereby accepts
      the assignment.

                 

                Should
      such payments be made to the Seller in another form (in particular in the
      form of bills of exchange, cheques or postal orders) then the Buyer and
      the Seller hereby agree that title to this

              	 
      	 
      	
                paper
      shall transfer to the Buyer as soon as it is received by the Seller.
      Furthermore the Seller transfers to the Buyer in advance the rights
      accruing to it under the paper. The transfer of the cheques and bills of
      exchange which come into the direct possession of the Seller, is
      superseded by the Buyer and the Seller hereby agreeing to a custody
      agreement and, in case they do not come into direct possession, by the
      Seller assigning to the Buyer its claims for repayment from third parties.
      The Buyer hereby already accepts the assignment.

                 

                The
      Seller shall, so far as necessary, provide the paper with its endorsement
      and deliver it forthwith to the Buyer. Up until provision to the Buyer,
      the Seller will take all measures which are required to maintain the
      rights attaching to the paper. The Seller empowers the Buyer in its name
      to sign bills of exchange as issuer as well as to endorse bills of
      exchange and cheques in its
name.

              

      

    

     

     

    
      
        
           

          
            
              	7.
      	
                      
                        
                          
                            Transfer
      of Security

                          

                        

                      

                    

            

             

          

        

      

    

    
       

       

      
        	
                7.1

                 

                 

                 

                7.2

              	
                
                  The
      Seller transfers in advance, in addition to the purchased and assigned
      receivables, all claims to which it is entitled or to which it will become
      entitled under the contract with the Debtor of sold receivables, in
      particular for receipt or return of delivered goods.

                   

                  The
      Buyer and the Seller hereby agree that the retention and security
      ownership with which the 

                

              	 
      	 
      	
                Seller
      has secured a purchased and assigned receivable will become the ownership
      or co-ownership of the Buyer upon assignment of the secured receivable –
      at the latest at the point in time where the Seller acquires ownership or
      co-ownership. The Seller and the Buyer also agree to the transfer to the
      Buyer of all existing and future contingent rights which the Seller has to
      assets

              

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

    

     

    
      
        	
                 

                 

                 

                 

                 

                 

                 

                 

                 

                7.3

                 

                 

                 

                 

                 

                7.4

                 

                 

                7.5

              	
                which
      are contained in invoices for sold receivables.

                 

                At
      the same time the Seller assigns to the Buyer its future claim to return
      of property against the Debtor or another third party which directly holds
      the retention property or secured goods, as the case may be. In so far as
      the Seller is still in direct possession of those assets, it will hold
      them on trust and free of charge on behalf of the Buyer and separately
      from its other goods. The same applies to goods sent back to the Seller by
      the Debtor.

                 

                In
      addition, the Seller hereby assigns to the Buyer all possible insurance
      claims in relation to the assigned receivables and the transferred goods
      (e.g. transport, break in, theft, fire insurance etc.). In so far as the
      assignment is dependent on further particular conditions, the Seller is
      obliged to carry out the assignment in the relevant manner.

                 

                To
      the extent that ancillary rights do not already transfer by operation of
      law, the Seller transfers together with the assigned receivables all
      rights which attach to the security and the enforcement of the receivables
      sold.

                 

                In
      the case of default by the Debtor and upon due concern that the assigned
      receivables will not be duly fulfilled, the Seller is obliged, upon
      direction

              	 
      	
                 

                 

                 

                 

                 

                7.6

                 

                 

                7.7

                 

                 

                7.8

                 

                 

                 

                 

                 

                 

                 

                7.9

              	
                by
      the Buyer to demand and collect security assets from the
      Debtor.

                 

                Such
      goods shall also be held by the Seller on trust and free of charge on
      behalf of the Buyer and separate from its other goods.

                 

                The
      Seller is obliged to support the Buyer free of charge, using best efforts,
      in enforcing and realising all security provided to it.

                 

                The
      Buyer is entitled to seize secured collateral of a Debtor, even to the
      extent this is in the hands of the Seller, if the Debtor does not pay an
      assigned receivable.

                 

                To
      the extent the Debtor does not settle the receivable due, the Buyer may in
      its name or in the name of the Seller, at its reasonable discretion
      realise the secured collateral, including by private sale if permitted by
      law. It can require of the Seller that, in accordance with its
      instructions, the Seller realises the secured collateral as best possible
      or cooperates in the realisation. The Seller shall forthwith give the
      proceeds obtained from the realisation to the Buyer. The net proceeds of
      the realisation shall be used to settle the secured
      receivable.

                 

                In
      so far as assignments are made to the Buyer in this clause 7, the Buyer
      hereby already accepts them.

                 

              

      

    

     

    
      
        
          
             

            
              
                	8.
      	
                        
                          
                            
                              
                                Obligations
      of the
Buyer

                              

                            

                          

                        

                      

              

               

            

          

        

      

      
        
           

           

          
            	
                    8.1

                     

                     

                    8.2

                  	
                    The
      Buyer shall carry out the services assigned to it with the care of a
      prudent businessman.

                     

                    The
      Buyer is obliged to comply with the requirements of data protection. In
      addition it will not make sales figures and other confidential information
      available to third parties. This does not apply to the extent the Buyer
      wholly or partly transfers the Debtor 

                  	 
      	 
      	accounting
      to third parties in accordance with 6.1 of the Debt Purchase Agreement. In
      this case, the Buyer shall oblige the third parties to comply with the
      requirements of data protection and the corresponding handling of
      confidential information in accordance with this clause.
	 
      	 
      	 
      	 
      	 
      

          

           

        

      

    

    
       

      
        
          
            
              
                
                  	9.
      	
                          
                            
                              
                                
                                  
                                    Liability
      of the
Buyer

                                  

                                

                              

                            

                          

                        

                

                 

              

            

          

        

        
          
            
               

              
                	
                        9.1

                      	
                        The
      Buyer shall only be liable - regardless of which legal ground - for intent
      and gross negligence, for negligent infringement of material
    

                      	 
      	 
      	
                        contractual
      obligations which put at risk to the contract and reasonably foreseeable
      upon achievement of the purposes of the contract as well as negligent
      injury to life, body and health.

                      
	 
      	 
      	 
      	 
      	 
      

              

               

            

             

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

             

          

        

      

    

     

    
      
        	
                 

                 

                 

                9.2

                 

                 

                9.3

              	
                achievement
      of the purposes of the contract as well as negligent injury to life, body
      and health.

                 

                Should
      the Buyer be liable for the infringement of material contractual
      obligations without gross negligence or intent, then the liability of the
      Buyer is limited to the extent of damage typical to the execution of the
      contract.

                 

                The
      liability limitation set out in 9.3 applies in the same way to damages
      caused by the gross negligence or intent of employees or authorised
      representatives of the Buyer, who are not directors or senior
      employees.

                 

              	 
      	
                9.4

                 

                 

                9.5

                 

                 

                9.6

                 

                 

                 

                9.7

              	
                In
      the case of 9.2 and 9.3, the Buyer is not liable for indirect damages,
      consequential damages, lost profits or missed savings.

                 

                The
      typically foreseeable extent of damage shall not in any case exceed an
      amount of € 50,000.

                 

                The
      Buyer shall only be liable for the restoration of data if the Seller has
      secured all data by reasonable precautionary measures, in particular daily
      preparation of secure copies, that this data is comprised of
      machine-readable data material and can be reconstructed at a justifiable
      cost.

                 

                The
      above liability limitations apply correspondingly also to the benefit of
      employees and authorised representatives of the Buyer.

                 

              

      

    

     

     

     

    
      
        
          
            
              
                
                  
                    	10.
      	
                            
                              
                                
                                  
                                    
                                      Rights
      of the
Buyer

                                    

                                  

                                

                              

                            

                          

                  

                   

                

              

            

          

        

      

    

    

     

    
      
        	
                10.1

              	
                The
      Buyer is entitled:

              	 
      	 
      	 
      	
                Buyer,
      an out of court agreement by the Seller is agreed regarding the assigned
      receivables;

              
	 
      	
                a)

              	
                to
      request at any time a balance confirmation from any Debtor. As far as the
      assignment to the Buyer is not already disclosed, the Buyer shall carry
      out the balance confirmation under the name of the Seller. The Seller
      shall make available all salient resources in certain matters (signed
      blank verification statement forms)

              	 
      	 
      	
                f)

              	
                with
      the inability of the Debtor to pay prior to complete re-payment of the
      receivable, to re-assign the receivables to the extent that the Buyer has
      not undertaken del credere liability.

                 

              
	 
      	
                b)

                 

                 

                c)

                 

                 

                d)

                 

                 

                e)

              	
                to
      keep a central Debtors’ account for every Debtor, which shall record and
      settle the receivables and liabilities of the Seller,

                 

                to
      discount the payments of the Debtor without information of application, on
      the oldest open assets to the extend the Seller would be entitled to do
      so;

                 

                to
      discount its claims arising from the Debt Purchase Agreement relationship
      prior to payment out of earmarked funds;

                 

                to
      re-assign receivables to the Seller under the demand for the return of the
      purchase price, when, without prior consent from the

              	 
      	
                10.2

                 

                 

                 

                 

                10.3

                 

                 

                10.4

              	
                The
      Buyer undertakes confirmation statements regarding the receivables
      clearing balance in relation to the Seller from time to time. If the
      Seller does not dispute in a substantiated manner the account balance
      within 2 weeks after the receipt of such confirmation statement, it shall
      be deemed to be recognised.

                 

                The
      receivables sold to the Buyer are liable for all the settlement of claims
      arising from the Debt Purchase Agreement relationship.

                 

                The
      Buyer is entitled to assign to a third party any services the Buyer is
      obligated to render under this Agreement.

                 

              

      

    

     

     

    
      
        
          
             

            
              
                	11.
      	
                        
                          
                            
                              
                                Fees

                              

                            

                          

                        

                      

              

               

            

          

        

      

      
        
           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

           

           

          
            
              	
                      11.1

                       

                      11.2

                       

                       

                       

                       

                      11.3

                       

                       

                       

                      11.4

                       

                       

                    	
                      The
      fees are stipulated in the Term Sheet.

                       

                      Should
      the Seller cause changes in the work-flow of the Buyer, that at the fixing
      of agreed fees is unaccounted for and leads to an additional expense, then
      the Buyer is entitled to request adequate fees. If the Buyer assumes the
      Debtor accounting, the Buyer is entitled to request adequate fees for
      this.

                       

                      For
      services that are not satisfied within the context of the Debt Purchase
      Agreement, a separate fee between the Seller and the Buyer shall be agreed
      and settled.

                       

                      All
      fees relating to the Buyer will be debited to the Seller and
      invoiced.

                       

                    	 
      	
                       

                       

                      11.5

                       

                       

                       

                      11.6

                       

                       

                      11.7

                       

                       

                    	
                      With
      an unsuccessful direct debit, the Seller is liable for the loss
      incurred.

                       

                      All
      costs (including reasonable out of pocket legal fees) and taxes incurred
      in connection with entering into and the execution of this
      Agreement  shall be borne by the Seller.

                       

                      The
      Buyer shall be entitled to, in the context of the collection of
      receivables beyond the main receivable, received amounts, to the extent
      the Seller is not obliged to repay such amounts.

                       

                      For
      the handling of receivables after the termination of the Debt Purchase
      Agreement, the Buyer shall receive per account and per month an additional
      adequate handling fee.

                       

                    

            

             

             

            
              
                
                  
                    
                       

                      
                        
                          	12.
      	
                                  
                                    
                                      
                                        
                                          
                                            Value
      Added Tax
(VAT)

                                          

                                        

                                      

                                    

                                  

                                

                        

                         

                      

                    

                  

                

                
                  
                     

                  

                

              

            

            
              	 
      	 
      	 
      	 
      	 
      
	
                      12.1

                       

                       

                       

                       

                      12.2

                       

                       

                       

                       

                       

                       

                       

                       

                       

                      12.3

                       

                       

                       

                    	
                      Due
      to the legislation of Sec. 13c German VAT Act and subject to the legal
      prerequisites being met a risk of liability for VAT purposes may arise for
      the Buyer relating to the assigned receivables in the course of the Debt
      Purchase Agreement.

                       

                      The
      Seller guarantees to the Buyer that it will file its preliminary VAT
      statements according to the statutory requirements entirely and duly with
      its responsible tax authorities, no later than the 10th day of each
      consecutive month after the respective taxation period or – in case of a
      permanent extension of time (Dauerfristverlängerung) – no later than the
      10th day of the month following the consecutive month.

                       

                      The
      Seller furthermore guarantees to file its yearly VAT statement (other than
      the VAT statement relating to the financial year 2006) no later than the
      31st December of each consecutive year.

                       

                      Receivables
      that are subject to the Debt Purchase Agreement must necessarily be
      included into the preliminary VAT statements respectively in the yearly
      VAT statement. The Seller shall give respective proof to the
      Buyer.

                       

                      The
      Seller shall transmit to the Buyer a copy of each preliminary VAT
      statement or VAT

                    	 
      	
                       

                       

                       

                       

                       

                       

                      12.4

                       

                       

                      12.5

                       

                       

                    	
                      statement
      without any delay after their filing with the tax authorities, which
      regarding preliminary statements takes place no later than the 10th day of
      each consecutive month after the respective taxation period or – in case
      of a permanent extension of time (Dauerfristverlängerung) – no later than
      the 10th day of the consecutive but one month or regarding the yearly VAT
      statement no later than the 31st December.

                       

                      In
      case the Seller applies for a permanent extension of time
      (Dauerfristverlängerung) at its tax authorities, the Seller shall inform
      the Buyer accordingly immediately.

                       

                      In
      case that the Seller is consolidated within a tax group for VAT purposes
      (the VAT Group) with one or more other companies, the Seller shall produce
      a separate documentation for the Buyer which not only includes any data
      which would have been included in the Sellers respective preliminary and
      annual VAT statements, had he not been part of a VAT Group but also a
      consolidation calculation transforming such data into the figures included
      in the respective preliminary and annual VAT statements of the VAT Group.
      In addition such documentation shall also include copies of the
      preliminary and annual VAT statements as actually filed by the tax
      responsible group member.

                       

                    

            

          

           

           

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

           

           

          
            
              	
                       

                       

                       

                       

                       

                       

                       

                       

                       

                      12.6

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                       

                      12.7

                       

                    	
                      In
      case of a VAT Group the guarantees mentioned in 12.1 to 12.4 apply
      accordingly to this separate documentation as well as to the incorporation
      of the data in the preliminary VAT statements respectively yearly VAT
      statement of the VAT Group.

                       

                      In
      such case, the Seller is obliged to produce a guarantee of its tax
      responsible group member that includes the afore mentioned guarantees
      according to a model guarantee as instructed separately.

                       

                      The
      Seller guarantees that he fulfils its payment obligations arising from the
      respective preliminary VAT statements / yearly VAT statements duly and
      that he will not claim an additional extension of time for such payments
      at the tax authorities.

                       

                      The
      Seller will give proof of any such due payment to the Buyer by means of
      appropriate documents (e.g. current account statements) within five days
      after the relating expiry date.

                       

                      The
      same will apply when the due payment has to be made by the tax responsible
      group member because of the filing as a VAT Group. In this case the Seller
      shall give proof to the Buyer accordingly indicating that the tax
      responsible group member has duly paid its VAT obligations.

                       

                      The
      Seller hereby declares - irrevocably for the duration of this agreement -
      that the responsible tax authorities is authorized pursuant to Sec. § 30
      para. 4 No. 3 German Fiscal Code (Abgabenordnung AO) to disclose to the
      Buyer any information relating to its (the Seller’s) VAT
      issues.

                       

                      Additionally,
      this declaration – including the clear indication of the tax number, VAT
      ID number (where applicable) and the responsible tax authorities - shall
      be made explicitly in a separate document as instructed separately for the
      presentation by the Buyer to the tax authorities. In case of a VAT Group
      this declaration shall be given by the Seller as well as by its tax
      responsible group member.

                    	 
      	
                       

                       

                       

                      12.8

                       

                       

                       

                       

                       

                      12.9

                       

                       

                       

                       

                       

                      12.10

                       

                       

                       

                       

                      12.11

                       

                       

                       

                       

                       

                    	
                      
                        The
      Buyer is entitled to request information about the true and duly
      fulfilment of the VAT obligations of the Seller at the responsible tax
      authorities.

                      

                       

                      The
      Buyer is entitled to pay the VAT accruing on assigned and collected
      receivables directly to the tax authorities by itself pursuant to Sec. 48
      German Fiscal Code (Abgabenordnung AO), whereby the relating amount is in
      return deducted from any due payments made by the Buyer to the Seller
      pursuant to the Debt Purchase Agreement.

                       

                      Insofar
      the Seller is entitled to a VAT refund, because receivables sold pursuant
      to clause 2.1 of the Debt Purchase Agreement are either not collectable or
      are reduced for whatever reason and for such reason the calculation base
      for VAT was adjusted in the VAT statements hereby already assigns such
      claims in advance to the Buyer. The Buyer hereby accepts this
      assignment.

                       

                      The
      rights of the Buyer provided for and agreed upon pursuant to this clause
      12 shall remain effective beyond termination of the Debt Purchase
      Agreement until the potential liability of the Buyer with regard to VAT
      pursuant to Sec. 13 c German VAT Act and relating to the assigned
      receivables extinguishes.

                       

                      In
      case the Buyer is held liable for an amount of VAT relating to receivables
      assigned to the Buyer according to Sec. 13c German VAT Act, i.e. the
      Seller has not entirely or partly fulfilled its payment obligations with
      the tax authorities, the Buyer shall have the contractual right out of
      this agreement to claim reimbursement (damage claim) from the Seller. This
      does not affect any other statutory rights for reimbursement.

                      This
      contractual claim for reimbursement will be due immediately upon the
      Buyer’s payment of the amount of VAT to the tax authorities for which the
      Buyer is held liable.

                    

            

          

           

           

           

        

      

    

    
      
        
          
            
              
                 

                
                  
                    	13.
      	
                            
                              
                                
                                  
                                    
                                      
                                        Winding-up
      after termination without
      notice

                                      

                                    

                                  

                                

                              

                            

                          

                  

                   

                

              

            

          

        

      

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      
        	The
      Buyer is entitled, after, or upon being entitled to, termination without
      notice of the Debt Purchase Agreement, to undertake for the purpose of a
      possible off-setting the payment of outstanding sums falling due, in whole
      or in part in escrow; which after settlement of all claims of the Buyer
      shall be firstly resolved.	 
      	 
      	
                Subsequently,
      the Buyer shall be obliged to re-assign the receivables to the Seller.
      Remaining liability accounts, as soon as the deficit is identified, will
      be settled immediately by the Seller on the request of the
      Buyer

              

      

       

       

      
        
          
            
              
                 

                
                  
                    	14.
      	
                            
                              
                                
                                  
                                    
                                      Procedure
      in relation to notification of assignment to
      Debtors

                                    

                                  

                                

                              

                            

                          

                  

                   

                

              

            

          

          
            
               

            

          

        

      

       

      
        	
                14.1

                 

                 

                 

                 

                 

                14.2

                 

                 

                 

                 

                 

                 

                 

                 

                 

                 

                14.3

                 

                 

              	
                Provided
      that the assignment is notified to the Debtors, or such assignment has
      subsequently been notified to the Debtor and/or the Buyer assumes the
      book-keeping of the Debtors, inclusive of dunning and collection, the
      Seller shall submit a copy of the respective invoice to the Buyer. The
      Seller shall in every case send the original invoice to the
      Debtor.

                 

                The
      Seller shall instruct its Debtors about the co-operation with the Buyer in
      the case of subsequent disclosure. The current Debtors will be instructed
      directly after disclosure, the future Debtors no later than the first
      placing of an order after co-operation commences and the assignment of the
      receivable. With respect to the form and content of the notice, prior
      co-ordination with the Buyer shall take place.

                 

                Moreover,
      the Buyer is authorised by the Seller to undertake the salient information
      of the Debtors relating to the co-operation of the parties as soon as the
      Buyer is entitled to disclose the assignment.

                 

                The
      Seller shall, as soon as the assignment is notified to the relevant
      Debtor(s), print the following notice on its invoices relating to
      receivables sold or to be sold clearly and distinctly
      highlighted:

              	 
      	
                 

                 

                 

                 

                 

                 

                14.4

                 

                 

                 

                14.5

                 

                 

                 

                 

                14.6

                 

              	
                The
      Seller undertakes to specify the disclosed telegraphic transfer bank
      account numbers of the Buyer on the invoices and bank
details.

                 

                Under
      no circumstances shall there be bank details of the Seller on the invoice
      and they should be removed or rendered illegible.

                 

                The
      Seller has to revoke all existing authority to collect from third parties,
      e.g. agents, without delay and not grant authority to collect without the
      express consent of the Buyer.

                 

                Moreover,
      the Seller shall take no steps or make no agreement with his Debtors,
      which could interfere with the collection of the Buyer’s receivables by
      the Buyer; for example, termination of payment moratoria, extension of
      credit periods, fixing of interest payments. In the case of
      non-compliance, the Buyer is authorized to refuse, as far as granted, del
      credere protection.

                 

                The
      Buyer allows the Seller an insight into the financial position of its
      respective Debtor business relationships, in that it shall draw up and
      regularly, at least monthly, send the salient documentation.

                 

              
	The
      receivables in this invoice, as well as in all other invoices, are, in the
      context of a Debt Purchase Agreement, assigned to Lloyds TSB Commercial
      Finance Limited, Niederlassung Deutschland, Gütersloher Str. 123, D-33415
      Verl (Lloyds).
      Payments have henceforth only discharging effect if effected to Lloyds and
      with a customer and invoice number. Cheques should be sent exclusively to
      Lloyds.	 
      	14.7	
                Moreover,
      the Seller shall, in the event of notification of the assignment to all
      Debtors, extend its general terms and conditions in relation to
      receivables sold or to be sold with the following
      paragraph:

                 

                 

                Our
      receivables are assigned to Lloyds TSB Commercial Finance Limited.
      Payments with discharging effect can only be made to Lloyds TSB Commercial
      Finance Limited. The bank details are stated on the
      invoice.

              

      

    

     

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      
        
          
            
              
                 

                
                  
                    	15.
      	
                            
                              
                                
                                  
                                    
                                      
                                        Miscellaneous

                                      

                                    

                                  

                                

                              

                            

                          

                  

                   

                

              

            

          

          
             

          

        

      

    

    
      
        	
                15.1

                 

                 

                 

                15.2

                 

                 

                 

                 

                15.3

                 

                 

                 

                15.4

                 

              	
                The
      Buyer is entitled to set off the rights of the Seller on the basis of this
      agreement against liabilities from Debt Purchase agreements with third
      parties vis-à-vis the Buyer.

                 

                The
      Buyer will be compensated by the Seller for any losses incurred by it in
      receiving receivables due to exchange rate fluctuations which will be
      charged to the Seller in the receivables account. Vice versa, the Buyer
      will credit respective gains due to exchange rate fluctuations to the
      Seller.

                 

                Should
      a clause in these General Debt Purchase Terms and Conditions prove
      invalid, it shall not affect the continuance of the rest of the clauses.
      The said clause will be replaced in a lawful manner by a clause which
      comes as near as possible to the clause intended.

                 

                For
      legal relationship between the Buyer and the Seller German law shall
      exclusively apply.

              	 
      	 
      	 
      

      

    

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    SCHEDULE
2

     

    TERM
SHEET

     

    1      Debt
Purchase Facility Limit

     

    Notwithstanding
any other provisions under this Agreement, the availability under this debt
purchase facility shall at any time comply with the availability under the
Aggregate Debt Financing Limit under the entire
Facility. Receivables secured by previously notified limits will not be affected
by a subsequent limitation.

     

    2      Excluded
Receivables / Debtor Restrictions

     

    
      	
              2.1

            	
              Receivables
      originating from deliveries or services to the countries marked “No” in
      the Appendix to this Schedule shall be excluded from this Agreement,
      unless and until otherwise notified by the Buyer in
    writing.

            

    

     

    
      	
              2.2

            	
              For
      the avoidance of doubt, subject to any other provision in this Agreement,
      the receivables originating from deliveries or services to the countries
      marked “Yes” in the Appendix to this Schedule shall be Approved
      Receivables. Receivables originating from deliveries or services to
      countries not listed in the Appendix to this Schedule shall be subject to
      approval by the Buyer.

            

    

     

    
      	
              2.3

            	
              The
      following receivables shall be excluded from this
    Agreement:

            

    

     

    
      	
               
      

            	
              (a)

            	
              Receivables
      in relation to which a letter of credit has been issued and which are not
      covered under the Trade Credit
Insurance;

            

    

     

    
      	
               
      

            	
              (b)

            	
              Receivables
      originating from Advances (Anzahlungen /
      Vorschüsse); and

            

    

     

    
      	
               
      

            	
              (c)

            	
              Receivables
      against Debtors who are individuals or private
  persons.

            

    

     

    
      	
              2.4

            	
              Prime
      debtor restriction shall be 20 % of the assigned receivables at any given
      time.

            

    

     

    
      	
              2.5

            	
              For
      the avoidance of doubt, the debt turn and dilution rate covenants pursuant
      to clause 3.2 of the Asset Based Finance Agreement
  apply.

            

    

     

    3      Debt
Purchase Fees

     

    
      	
              3.1

            	
              Arrangement
      Fee: The Seller shall be liable to the Buyer for payment of an arrangement
      fee in the aggregate amount of 0,5% with regard to the Aggregate Debt
      Financing Limit which shall be due by all parties, other than Lenders, of
      the Finance Documents, jointly and severally.  The arrangement
      fee shall be due on the closing day of the Facility and, to the extent
      charged to the Seller, shall be retained by the Buyer through deduction
      from the payment of the purchase
price.

            

    

     

    
      	
              3.2

            	
              Service
      Fee: The Seller shall be liable to the Buyer for payment of a service
      charge in the aggregate amount of EUR 10.500 per month with regard to the
      servicing of the entire Facility which shall be due by all parties, other
      than Lenders, of the Finance Documents, jointly and
      severally.  The service charge shall be due monthly on the first
      working day of each calendar month and, to the extent charged to the
      Seller, shall be retained by the Buyer through deduction from the payment
      of the purchase price.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    
      	
              3.3

            	
              All
      fees under this Agreement are net
amounts.

            

    

     

    4      Existing
trade credit insurance

     

    
      	
              4.1

            	
              The
      Seller has taken out trade credit insurance with Euler Hermes (Trade
      Credit Insurer) with the policy no.  385475  in
      respect of the receivables covered by this
  Agreement.

            

    

     

    
      	
              4.2

            	
              The
      maintenance of the trade credit insurance taken out by the Seller himself,
      or an equivalent trade credit insurance, respectively, is prerequisite of
      the assumption of the del credere by the Buyer. The Seller guarantees to
      the Buyer compliance with its obligations as against the Trade Credit
      Insurer from time to time and guarantees further that it will pay the
      insurance premiums in a timely manner and take any actions as are required
      to maintain the insurance cover. The Seller shall submit the entire trade
      credit insurance information and shall inform the Buyer without undue
      delay in writing of any material changes in his relationship to the Trade
      Credit Insurer from time to time. The Seller authorises the Buyer to
      request any such information directly from the Trade Credit
      Insurer.

            

    

     

    
      	
              4.3

            	
              The
      latest at 185 days after invoice date, or any time earlier as provided for
      under the trade credit insurance policy, the Seller must confirm to the
      Buyer that a valid credit insurance claim is being processed with the
      Trade Credit Insurer. If the Seller fails to do so, or if the Trade Credit
      Insurer objects to that claim, the respective receivable shall loose its
      del credere protection and the Buyer shall be entitled to withdraw from
      the purchase of that respective
receivable.

            

    

     

    
      	
              4.4

            	
              Should
      the Seller violate its duties under the insurance policy in such a manner
      that the Trade Credit Insurer is no longer obliged to render compensation,
      or if the prevailing circumstances suggest that the Seller will no longer
      be in a position to comply with its future obligations under the insurance
      contract, the Seller shall inform the Buyer thereof immediately in
      writing.

            

    

     

    
      	
              4.5

            	
              To
      the extent that the changes in the relationship with the Trade Credit
      Insurer also affect the existing contractual relationship, the Buyer may
      request an amendment to this Agreement or, if the parties cannot agree on
      an amendment, to terminate this Agreement without
  notice.

            

    

     

    
      	
              4.6

            	
              In
      deviation of clause 3.1 of the Standard Debt Purchase Terms and
      Conditions, the del credere limit notified by the Trade Credit Insurer
      shall be deemed to be the del credere limit of the Buyer, unless and until
      otherwise notified by the Buyer. Where a different limit commitment is
      given on the part of the Trade Credit Insurer, the assumption of the del
      credere pursuant to this Agreement shall be governed exclusively by the
      limit specified by the Buyer, with the maximum, however, being the limit
      commitment given by the Trade Credit Insurer. The Seller shall inform the
      Buyer without undue delay of the limits specified by the Trade Credit
      Insurer and, in particular, any reduction or cancellation of
      limits.

            

    

     

    
      	
              4.7

            	
              Even
      if a limit has been specified, the Buyer shall only be obliged to render
      performance if and to the extent the trade credit insurer is also obliged
      to render performance. Performances by the Trade Credit Insurer shall be
      rendered to the Buyer. To this end, the Seller hereby assigns to the Buyer
      its claims under the insurance policy in force from time to time, which
      has currently been taken out with the aforementioned trade credit insurer.
      The Buyer accepts such assignment.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              4.8

            	
              The
      Seller shall procure that the Buyer be co-insured under the trade credit
      insurance, or, if this is not acceptable to the Trade Credit Insurer,
      procure a written declaration by its Trade Credit Insurer, according to
      which the latter consents to the assignment of the insurance claims to the
      Buyer and the payment of the insurance benefits to an account to be
      advised by the Buyer.

            

    

     

    
      	
              4.9

            	
              The
      Seller undertakes to receive online-access to its trade credit insurance
      policy at the Trade Credit Insurer and to permanently provide the Buyer
      with such online-access.

            

    

     

    5      Payment
of the Purchase Price / Interest

     

    
      	
              5.1

            	
              Subject
      to any other provision in this Debt Purchase Agreement, the purchase price
      for a receivable for which the Buyer has assumed del credere risk
      (Approved Receivable) shall be paid as follows
:

            

    

     

    
      	
               
      

            	
              (a)

            	
              First
      Payment:  85 %  of the invoiced and unpaid gross
      turnover, in each case within three Business Days after receipt of the
      invoice.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Second
      Payment:

            

    

     

    
      	
               
      

            	
              (i)

            	
              15
      %  to be paid out within three Business Days after payment
      entry;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              where
      a case of del credere is established the Buyer shall immediately forward
      to the Seller any funds received by the Trade Credit Insurer
      exceeding the amount the Buyer already paid to the
      Seller as First Payment in relation to that
      receivable;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              where
      a case of del credere is established and the Trade Credit Insurer does not
      render performance despite its obligation to do so, the Buyer shall pay
      the amount so owed by the Trade Credit Insurer which exceeds the amount
      the Buyer already paid to the Seller as First Payment in
      relation to that receivable, subject to the del credere limit granted by
      the Buyer in relation to that receivable, when it is established by final
      court decision that the Trade Credit Insurer is obligated to pay and
      that enforcement measures of the Seller against the Trade Credit Insurer
      have not been successful.

            

    

     

    
      	
              5.2

            	
              As
      of the date of payment until payment entry on the refinancing account of
      the Buyer, the First Payments shall be charged with interest annually at
      an interest rate of 1,75 % points above the
      1-month-Euribor.  The interest rate is to be determined on the
      first business day of each calendar month for the respective
      month.

            

    

     

    
      	
              5.3

            	
              When
      payments are to be made, the Buyer shall be entitled to set off any
      outstanding claims. The basis for the payment is the relevant current
      balance statement of the Seller, which shall take account of each
      outstanding receivable, credits as well as
  objections.

            

    

     

    
      	
              5.4

            	
              The
      purchase price for receivables for which the Buyer has not assumed del
      credere risk  (Unapproved Receivables) shall be paid upon
      payment entry on the following accounting
date.

            

    

     

    
      	
              5.5

            	
              The
      Buyer shall forward to the Seller immediately upon receipt any payments
      that the Buyer receives from the Trade Credit Insurer in relation to
      receivables which are excluded from this
  Agreement.

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    6      Collection
Account

     

    The
Collection Account shall be

     

    Account
No.: 1453810

     

    Bank:
Commerzbank Freiburg

     

    Sort
Code: 68040007

     

    BIC:
COBADEFFXXX

     

    IBAN:  DE07680400070145381000

     

    7      Miscellaneous

     

    
      	
              7.1

            	
              All
      fees arising in connection with this contract, which are charged by the
      bank running the money entry account for credit or debit payments, will be
      carried by the Seller.

            

    

     

    
      	
              7.2

            	
              The
      Seller declares that he is acting on its own account in terms of section 8
      German Money Laundering Act.

            

    

     

    8      Commencement
and Duration

     

    
      	
              8.1

            	
              This
      Agreement commences on the day of
signing.

            

    

     

    
      	
              8.2

            	
              This
      Agreement shall end, and all payments under this Agreement shall be
      immediately due and payable, without the requirement of a specific
      termination, on the 5th
      anniversary of the signing of this Agreement (the Final Repayment Date) at
      the latest.

            

    

     

    
      	
              8.3

            	
              Subject
      to clause 8.4 if the Facility is terminated for any reason prior to the
      second anniversary of the commencement date, the Seller shall pay, on a
      joint and several basis with all parties of the Finance Documents other
      than the Lenders, an early termination fee of 1% of the Facility Amount in
      aggregate to the Lenders.

            

    

     

    
      	
              8.4

            	
              The
      provisions of clause 8.3 will not apply in the event that the Lenders
      terminate the Facility in accordance with the terms of the Finance
      Documents as set out in clause 5.2 of the Asset Based Finance
      Agreement.

            

    

     

    
      	
              8.5

            	
              At
      any time after the second anniversary of the commencement date, the Seller
      may terminate this Agreement by giving at least 3 months notice to the
      Buyer or at the Seller’s sole discretion, by the Seller, on a joint and
      several basis with all parties of the Finance Documents other than the
      Lenders, paying the Lenders the sum of US$200,000 (or the equivalent
      amount in Euro as at the date of payment) in aggregate to terminate this
      Agreement immediately at any time.

            

    

     

    9      Information
Undertaking

     

    
      	
              9.1

            	
              The
      Seller shall inform the Buyer on a monthly basis, within 30 days after the
      end of a month, about the actual business data, including the current
      business valuation (betriebswirtschaftliche
      Auswertung).

            

    

     

    
      	
              9.2

            	
              The
      Seller shall submit to the Buyer immediately upon preparation, at the
      latest however within eight months after the end of the previous year, the
      annual financial statement.

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              10

            	
              Assignment,
      Syndication and Participation

            

    

     

    
      	
              10.1

            	
              The
      Buyer is entitled to assign, syndicate or grant participations in its
      rights and obligations under this Agreement in accordance with and subject
      to clause 4 of the Assed Based Finance
  Agreement.

            

    

     

    
      	
              10.2

            	
              The
      Seller may only assign claims and rights under this Agreement, or
      respectively, encumber such claims with the rights of third parties with
      the prior written approval of the Buyer,
      which shall not be unreasonably
withheld.

            

    

     

    11           Conditions
Precedent / Disbursement Prerequisites

     

    The Buyer
is entitled to wholly or partly withhold the first or any following payment if
one of the following conditions for payment are not met at the point in time as
each applicable:

     

    
      	
               
      

            	
              (a)

            	
              the
      conclusion of transfer agreement (Ablösevereinbarung) to
      be entered into between the Seller, the Buyer and Heller Finanz Service
      GmbH on terms satisfactory to the Buyer, substantially in the form of
      Schedule
      7;

            

    

     

    
      	
               
      

            	
              (b)

            	
              all
      condition precedents as contained in such transfer agreement (Ablösevereinbarung);

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      conclusion of an agreement pertaining to remote data transfer (Datenfernübertragung)
      to be entered into between the Seller and the service provider of the
      Buyer, BFS finance GmbH on terms satisfactory to the Buyer, substantially
      in the form of Schedule
      8;

            

    

     

    
      	
               
      

            	
              (d)

            	
              all
      conditions precedent as set out in the Asset Based Finance Agreement, with
      the exception that the Seller and Milacron Kunststoffmaschinen Europa GmbH
      may provide notarised copies of identity cards of their representatives
      (Geschäftsführer
      and Prokuristen)
      also within 15 business days after signing of this Agreement;
      and

            

    

     

    
      	
               
      

            	
              (e)

            	
              the
      creation of all security as provided for in the Security Purpose
      Agreement.

            

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    

     

    SCHEDULE
2 - APPENDIX

     

    LIST OF
COUNTRIES AS REFERRED TO IN CLAUSE 2.1 / 2.2 OF SCHEDULE 2

     

    

     

    
      	 	
              Code

            	
              Country

            	
              Fundable
      Yes / No

            
	 	
              AD

            	
              Andorra

            	
              Yes

            
	 	
              AE

            	
              United
      Arab Emirates

            	
              No

            
	 	
              AL

            	
              Albania

            	
              No

            
	 	
              AR

            	
              Argentina

            	
              No

            
	 	
              AT

            	
              Austria

            	
              Yes

            
	 	
              AU

            	
              Australia

            	
              Yes

            
	 	
              BE

            	
              Belgium

            	
              Yes

            
	 	
              BG

            	
              Bulgaria

            	
              Yes

            
	 	
              BR

            	
              Brazil

            	
              No

            
	 	
              CA

            	
              Canada

            	
              Yes

            
	 	
              CH

            	
              Switzerland

            	
              Yes

            
	 	
              CN

            	
              China

            	
              No

            
	 	
              CO

            	
              Colombia

            	
              No

            
	 	 
      	
              Cuba

            	
              No

            
	 	
              CZ

            	
              Czech
      Republic

            	
              Yes

            
	 	
              DE

            	
              Germany

            	
              Yes

            
	 	
              DK

            	
              Denmark

            	
              Yes

            
	 	
              EE

            	
              Estonia

            	
              Yes

            
	 	
              EG

            	
              Egypt

            	
              No

            
	 	
              ES

            	
              Spain

            	
              Yes

            
	 	
              FI

            	
              Finland

            	
              Yes

            
	 	
              FO

            	
              Faroe
      Islands

            	
              Yes

            
	 	
              FR

            	
              France

            	
              Yes

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    
      	 	
              GB

            	
              UK

            	
              Yes

            
	 	
              GR

            	
              Greece

            	
              Yes

            
	 	
              HK

            	
              Hong
      Kong

            	
              Yes

            
	 	
              HU

            	
              Hungary

            	
              Yes

            
	 	
              ID

            	
              Indonesia

            	
              No

            
	 	 
      	
              Iran

            	
              No

            
	 	
              IE

            	
              Ireland

            	
              Yes

            
	 	
              IL

            	
              Israel

            	
              No

            
	 	
              IS

            	
              Iceland

            	
              Yes

            
	 	
              IT

            	
              Italy

            	
              Yes

            
	 	
              JP

            	
              Japan

            	
              Yes

            
	 	
              KR

            	
              South
      Korea

            	
              Yes

            
	 	
              LI

            	
              Liechtenstein

            	
              Yes

            
	 	
              LU

            	
              Luxembourg

            	
              Yes

            
	 	
              LT

            	
              Lithuania

            	
              Yes

            
	 	
              LV

            	
              Latvia

            	
              Yes

            
	 	
              MC

            	
              Monaco

            	
              Yes

            
	 	
              MT

            	
              Malta

            	
              Yes

            
	 	
              MX

            	
              Mexico

            	
              Yes

            
	 	
              MY

            	
              Malaysia

            	
              No

            
	 	 
      	
              Myanmar
      (Burma)

            	
              No

            
	 	
              NL

            	
              The
      Netherlands

            	
              Yes

            
	 	 
      	
              North
      Korea

            	
              No

            
	 	
              NO

            	
              Norway

            	
              Yes

            
	 	
              NZ

            	
              New
      Zealand

            	
              Yes

            
	 	
              PH

            	
              Philippines

            	
              No

            
	 	
              PL

            	
              Poland

            	
              Yes

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	 	
              PT

            	
              Portugal

            	
              Yes

            
	 	
              RO

            	
              Romania

            	
              Yes

            
	 	
              RU

            	
              Russia

            	
              No

            
	 	
              SA

            	
              Saudi
      Arabia

            	
              No

            
	 	
              SE

            	
              Sweden

            	
              Yes

            
	 	
              SG

            	
              Singapore

            	
              Yes

            
	 	
              SI

            	
              Slovenia

            	
              Yes

            
	 	
              SK

            	
              Slovakia

            	
              Yes

            
	 	
              SM

            	
              San
      Marino

            	
              Yes

            
	 	 
      	
              Sudan

            	
              No

            
	 	 
      	
              Syria

            	
              No

            
	 	
              TH

            	
              Thailand

            	
              No

            
	 	
              TN

            	
              Tunisia

            	
              No

            
	 	
              TR

            	
              Turkey

            	
              No

            
	 	
              TW

            	
              Taiwan

            	
              No

            
	 	
              US

            	
              USA

            	
              Yes

            
	 	
              VE

            	
              Venezuela

            	
              No

            
	 	
              ZA

            	
              South
      Africa

            	
              No

            

    

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    SCHEDULE
3

     

    GUARANTEE
TAX GROUP - SAMPLE FORM

     

    

     

    [On
Letterhead of Tax Responsible Group Company]

    

     

    

     

    To

    Lloyds
TSB Commercial Finance Ltd.

     

    Niederlassung
Deutschland

     

    Gütersloher
Str. 123

     

    D-33415
Verl

     

    

     

    

     

    

     

    Guarantee
relating to the Fulfilment of VAT Obligations

     

    Tax
authorities:                             [responsible
tax authorities]

     

    Taxation
number:                          [taxation
number]

     

    

     

    Dear Sir
or Madam,

     

    we
explicitly refer to the Debt Purchase Agreement as of __ March 2008 between
FERROMATIK MILACRON MASCHINENBAU GMBH (the Seller) and Lloyds TSB
Commercial Finance Ltd.  (the Buyer) and declare the
following:

     

    
      	
               
      

            	
              1.

            	
              The
      Seller is included in a tax group with us for VAT
  purposes.

            
	 	 	 
	 	 	As
      the tax responsible group company we are responsible for the fulfilment of
      fiscal obligations of the group as a whole with regard to VAT with the
      above quoted tax authorities. We are registered at this tax authorities
      under the above quoted taxation number.

    

     

    
      	
               
      

            	
              2.

            	
              We
      confirm to entirely know about the obligations agreed upon in the afore
      mentioned Debt Purchase Agreement. Furthermore, we do have the knowledge
      about the consequences of any infringement of these
      obligations.

            

    

     

    
      	
               
      

            	
              3.

            	
              With
      explicit regard to the provisions agreed upon by the parties we hereby
      declare that we as the tax responsible group company have duly fulfilled
      and will in the future duly fulfil all obligations mentioned in clause 12
      of the Standard Debt Purchase Terms and Conditions with the tax
      authorities whereby those are also included which relate to the
      Seller.

            

    

     

    Kind
regards

     

    _________­­­­­­_______________________________________________

     

    (Place,
Date, Signature, Stamp of the tax responsible group company)

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
4 – PART 1

     

    AUTHORIZATION
FOR THE DISCLOSURE OF VAT ISSUES – SAMPLE FORM ENGLISH

    

     

    [On
Letterhead of Seller]

    

     

    To

     

    Lloyds
TSB Commercial Finance Ltd.

     

    Niederlassung
Deutschland

     

    Gütersloher
Str. 123

     

    D-33415
Verl

     

    

     

    Authorization
for the Disclosure with Regard to VAT Issues

     

    Tax
authorities:                             [responsible
tax authorities]

     

    Taxation
number:                          [taxation
number]

     

    

     

    

     

    Dear Sir
or Madam,

     

    according
to Sec. 30 para. 4 No. 3 German Fiscal Code (Abgabenordnung AO) we hereby
declare irrevocably that we authorise the above quoted tax authorities to
disclose to Lloyds TSB Commercial Finance Ltd. , any information relating to our
VAT issues.

     

    

     

    Kind
regards

     

    

     

    ________________________­­­­­­_________________

     

    (Place,
Date, Signature, Stamp)

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    SCHEDULE
4 – PART 2

     

    AUTHORIZATION
FOR THE DISCLOSURE OF VAT ISSUES – SAMPLE FORM GERMAN

     

    Berechtigung
zur Umsatzsteuereinsicht

     

    

     

    [Briefkopf
des Verkäufers]

     

    An

     

    Lloyds
TSB Commercial Finance Ltd.

     

    Niederlassung
Deutschland

     

    Gütersloher
Str. 123

     

    D-33415
Verl

     

    

     

    

     

    Berechtigung
zur umsatzsteuerlichen Einsicht

     

    Finanzamt:                                      <Zuständiges
Finanzamt>

     

    Steuernummer:                             <Steuernummer>

     

    

     

    Sehr
geehrte Damen und Herren,

     

    

     

    hiermit
erklären wir gemäß § 30 Abs. 4 Nr. 3 AO unwiderruflich, dass das oben
bezeichnete zuständige Finanzamt berechtigt ist, Lloyds TSB Commercial Finance
Ltd., Niederlassung Deutschland, Gütersloher Str. 123, D-33415 Verl
uneingeschränkte Auskunft über unsere umsatzsteuerlichen Verhältnisse zu
geben.

     

    

     

    Mit
freundlichen Grüßen

     

    

     

    _________________________________

     

    (Ort,
Datum, Unterschrift, Firmenstempel)

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    SCHEDULE
5 – PART 1

     

    NOTICE
OF ASSIGNMENT – SAMPLE FORM ENGLISH

     

    [On
Letterhead of Seller]

    

     

    

     

    [Debtor’s
Address]

     

    

     

    Dear Sir
or Madam,

     

    

     

    Notice
of assignment of receivables

     

    

     

    By this
letter, we would like to give you notice that we have assigned our present and
future claims against you to:

     

    Lloyds TSB Commercial Finance Ltd.,
Niederlassung Deutschland, Gütersloher Str. 123, D-33415
Verl.

     

    Please
find enclosed herewith a list of the currently outstanding receivables. May we
ask you to effect payments on our invoices, stating you customer number,
exclusively to the account of Lloyds TSB Commercial Finance Ltd.
with

     

    Account
No.: 1453810

     

    Bank:
Commerzbank Freiburg

     

    Sort
Code: 68040007

     

    BIC:
COBADEFFXXX

     

    IBAN:  DE07680400070145381000

     

    Should
you have any questions, please do not hesitate to contact us or Lloyds TSB
Commercial Finance Ltd at [_____].

     

    

     

    Kind
regards

     

    

     

    _________­­­­­­_________________

     

    (Place,
Date, Signature, Stamp)

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    SCHEDULE
5 – PART 2

     

    NOTICE
OF ASSIGNMENT – SAMPLE FORM GERMAN

     

    [Briefkopf
des Verkäufers]

     

    

     

    [Raum für
Debitorenanschrift]

     

    

     

    ANZEIGE
FORDERUNGSABTRETUNG

     

    

     

    Sehr
geehrte Damen und Herren,

     

    wir
möchten Sie darauf hinweisen, dass unsere bestehenden und zukünftigen
Forderungen gegen Ihr Unternehmen an

     

    Lloyds TSB Commercial Finance Ltd.,
Niederlassung Deutschland, Gütersloher Str. 123, D-33415
Verl.

     

    

     

    abgetreten
haben. Als Anlage erhalten Sie beiliegend eine Aufstellung der aktuell offenen
Forderungen. Zahlungen auf unsere Rechnungen leisten Sie bitte unter Angabe
Ihrer Kundennummer ausschließlich auf das Konto von Lloyds TSB Commercial
Finance Ltd.  bei

     

    Konto
Nr.: 1453810

     

    Bank:
Commerzbank Freiburg

     

    Bankleitzahl:
68040007

     

    BIC:
COBADEFFXXX

     

    IBAN:  DE07680400070145381000

     

    Für
Rückfragen stehen Ihnen sowohl wir unter den bekannten Telefonnummern als auch
Lloyds TSB Commercial Finance Ltd. unter [_____] zur Verfügung.

    

     

    Mit
freundlichen Grüßen

     

    

     

    _________________________________

     

    (Ort,
Datum, Unterschrift, Firmenstempel)

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    SCHEDULE
6 – PART 1

     

    NEGATIVE COVENANT
BANK –
SAMPLE FORM ENGLISH

     

    [On
Letterhead of Bank]

     

    

     

    We, the
bank

     

    [Name and
address of the bank]

     

    

     

    maintain
an ongoing business relationship with

     

    FERROMATIK MILACRON MASCHINENBAU
GMBH, Riegeler Straße 4, D-79364 Malterdingen

     

    - hereinafter called the Seller -

     

    

     

    take note
of the fact that the Seller and

     

    Lloyds TSB Commercial Finance Ltd.,
Niederlassung Deutschland, Gütersloher Str. 123, D-33415
Verl

     

    - hereinafter called the Buyer -

     

    entered
into a Debt Purchase Agreement on or about 10 March 2008, in the context of
which the Seller assigned certain present and future receivables against its
clients (debtors) arising out of supplies or services, to the
Buyer.

     

    We
declare that no receivables are assigned to us, nor pledged to us, nor otherwise
encumbered by any right whatsoever to our benefit, other than listed herein as
follows:

     

    

     

    
      	
              Debtor

            	
              Invoice
      No.

            	
              Date
      of Invoice

            	
              Amount

            
	 
      	 
      	 
      	 
      

    

    [if table
provided on extra sheet, initials on extra sheet are requested]

     

    

     

    _________________________________

     

    (Place,
Date, Signature, Stamp)

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    SCHEDULE
6 - PART 2

     

    NEGATIVE
COVENANT BANK – SAMPLE FORM GERMAN

     

    

     

    Wir, die
Bank

     

    

     

    [Name und
Anschrift der Bank]

     

    

     

    die mit
der Firma

     

    FERROMATIK MILACRON MASCHINENBAU
GMBH, Riegeler Straße 4, D-79364 Malterdingen

     

    - nachstehend Verkäufer genannt
-

     

    in
dauernder Geschäftsbeziehung stehen, nehmen zur Kenntnis, dass der Verkäufer
mit

     

    Lloyds TSB Commercial Finance
Ltd., Niederlassung Deutschland, Gütersloher Str. 123, D-33415
Verl

     

    - nachstehend Käufer genannt -

     

    am oder
um den 10. März 2008 einen Forderungs-Ankauf-Vertrag geschlossen hat, in dessen
Rahmen bestimmte gegenwärtige und künftige Forderungen des Verkäufers gegenüber
seinen Kunden (Debitoren) aus Lieferungen und Leistungen an den Käufer
abgetreten worden sind.

     

    Wir
erklären, dass keine Forderungen an uns sicherungsabgetreten oder verpfändet
sind oder uns in sonstiger Weise ein Recht an ihnen eingeräumt wurde, außer wie
nachfolgend aufgeführt:

     

    

     

    
      	
              Schuldner

            	
              Rechnungsnummer

            	
              Datum
      der Rechnung

            	
              Betrag

            
	 
      	 
      	 
      	 
      

    

     

     

    [Wenn
Aufstellung auf gesondertem Blatt erfolgt, wird um Paraphierung
gebeten]

     

    

     

    

     

    

     

    _________________________________

     

    (Ort,
Datum, Unterschrift, Firmenstempel)

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    SCHEDULE
7

     

    A B L Ö S
E V E R E I N B A R U N G

     

    

     

    zwischen

     

    

     

    Lloyds
TSB Commercial Finance Ltd.

     

    Zweigniederlassung
Deutschland

     

    Gütersloher
Str. 123, 33415 Verl

     

    -
nachfolgend “Lloyds”
genannt –

     

    

     

    und

     

    

     

    Ferromatik
Milacron Maschinenbau GmbH

     

    Riegeler
Str. 4, 79364 Malterdingen

     

    -
nachfolgend “Kunde”
genannt -

     

    

     

    und

     

    

     

    HELLER
BANK AKTIENGESELLSCHAFT

     

    Weberstraße
21, D-55130 Mainz

     

    -
nachfolgend “Heller
Bank” genannt -

     

    

     

    

     

    

     

    
      	
              1.

            	
              Der
      zwischen dem Kunden und der Heller Bank bestehende Factoring-Vertrag vom
      03.08./31.08.2005 sowie sämtliche damit im Zusammenhang stehenden
      Nebenvereinbarungen (nachfolgend „Factoring-Vertrag”
      genannt) werden nach Absprache zwischen dem Kunden und der Heller Bank zum
      Cut Off Date beendet.

            
	 	 
	 	Die
      letztmalige Rechnungseinspielung erfolgt am Cut Off Date und die dadurch
      angebotenen Forderungen werden im Rahmen bestehender Limite angekauft.
      Alle nach dem Cut Off Date angebotenen Forderungen werden von der Heller
      Bank nicht mehr gebucht.

    

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	 	Ab
      dem Tag nach dem Cut Off Date („Cut Off Date plus 1”, alle folgenden Tage
      „Cut Off Date plus X”) werden vom Kunden keine Forderungen mehr der Heller
      Bank angeboten.
	 	 
	 	Nach
      der Rechnungseinspielung vom Cut Off Date wird der Kunde seinen Stülp-Lauf
      vornehmen, um die bis dahin eingegangenen Zahlungen anschließend zu
      verarbeiten.
	 	 
	
              2.

            	
              Die
      Heller Bank teilt dem Kunden und Lloyds am Cut Off Date plus 1 die
      abzulösende Inanspruchnahme (inklusive Zinsen bis zum Cut Off Date plus 2
      sowie zum Cut Off Date plus 3) sowie den Betrag sämtlicher Sollsalden auf
      den Abrechnungskonten (exklusive der unten unter Ziffer 3, 3. Absatz
      genannten Forderungen, zuzüglich der
      gesondert vereinbarten Abstandszahlung, nachfolgend gemeinsam
      „Ablösebetrag”
      genannt) mit. Der Kunde wird den Ablösebetrag prüfen und bei Richtigkeit
      gegenüber Lloyds bestätigen. Gleichzeitig erstellt Heller Bank zum Cut Off
      Date plus 1 nach letztmaliger Überstellung von Forderungen (siehe oben
      Ziffer 1) eine Liste aller vom Kunden übernommenen und bei ihr geführten
      offenen Forderungen (OP-Liste) und leitet diese dem Kunden
      schnellstmöglich zu. Der Kunde leitet die OP-Liste nach Prüfung an Lloyds
      weiter. Lloyds wird den Ablösebetrag am Cut Off Date plus 2 oder am Cut
      Off Date plus 3, jeweils inklusive korrespondierender Zinsen, auf
      Anweisung des Kunden an Heller Bank auszahlen, wenn die folgenden
      Inanspruchnahmevoraussetzungen erfüllt
sind:

            

    

     

    
      	
               
      

            	
              a)

            	
              Der
      Erstauszahlung reicht zur Ablösung der Inanspruchnahme und etwaiger
      Sollsalden auf den Abrechnungskonten bei der Heller Bank
    aus.

            

    

     

    
      	
               
      

            	
              b)

            	
              Sofern
      der Betrag aus der Erstauszahlung gemäß Ziffer (a) nicht zur Ablösung
      ausreicht, liegt Lloyds eine Bestätigung der Heller Bank vor, dass der
      verbleibende Differenzbetrag (Differenz zwischen Ablösebetrag und neuer
      Inanspruchnahme) per telegrafischer Überweisung des Kunden bei der Heller
      Bank eingegangen ist.

            

    

     

    
      	
              3.

            	
              Der
      Ablösebetrag ist von Lloyds per telegrafischer Überweisung am Cut Off Date
      plus 2 oder am Cut Off Date plus 3 zu Gunsten des Kontos bei der Heller
      Bank AG, Kontonummer 3001 11242, BLZ 550 305 00 (nachfolgend „Ablösekonto” genannt) zu
      zahlen.

            
	 	 
	 	Unter
      der aufschiebenden Bedingung des Eingangs des Ablösebetrags auf dem
      Ablösekonto tritt die Heller Bank sämtliche ihr nach dem bestehenden
      Factoring-Vertrag vom Kunden abgetretenen Forderungen an den Kunden zurück
      ab. Der Kunde nimmt die Abtretung bereits jetzt an.
	 	 
	 	Davon
      ausgenommen sind Forderungen, die in der OP-Liste mit Datum vom Cut Off
      Date plus 1, die diesem Vertrag als Anlage beigefügt wird und damit
      Bestandteil dieses Vertrags wird [mit Markierungscode „952”
      (Inkassoverfahren), „954” (Abwicklung)]1 als Delkrederefall oder als in
      Rechtsverfolgung befindlich gekennzeichnet sind.
	 	 
	 	Nach
      der Ablösung der Inanspruchnahme bei der Heller Bank eingehende
      Debitorenzahlungen wird die Heller Bank bis einschließlich 30.04.2008
      unverzüglich auf das Konto der Lloyds TSB Commercial Finance Ltd.,
      Kontonummer 1453810, BLZ 68040007 bei der Commerzbank Freiburg
      weiterleiten. Die Heller Bank wird das Einzugskonto zum 30.04.2008
      schließen.

    

     

     

      
        

      

    

    
      
        	
                1

              	
                Bitte
      entsprechendes auswählen oder Form der Kennzeichnung genau beschreiben.
      Wichtig:
      Forderungen bitte nicht allgemein
      beschreiben, sondern immer auf besondere Kennzeichnung in einer Liste o.ä.
      Bezug nehmen
(Bestimmtheitsgrundsatz).

              

      

      
 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    
      	
              4.

            	
              Der
      Kunde stellt die Heller Bank im Hinblick auf rückabgetretene Forderungen
      von Rückzahlungsansprüchen der Debitoren gleich aus welchem Rechtsgrund
      frei.

            

    

     

    
      	
              5.

            	
              Soweit
      sich angekaufte Forderungen bereits in der Rechtsverfolgung befinden, wird
      die Heller Bank in Mahnangelegenheiten wie bisher verfahren. Gemäß der
      Verpflichtung aus dem Factoring-Vertrag ist der Kunde auch weiterhin
      gehalten, unverzügliche Stellungnahmen zu Einwendungen der Debitoren
      abzugeben.

            
	 	 
	 	Laufende
      Rechts- und Inkassofälle bearbeitet die Heller Bank weiterhin für und auf
      Kosten des Kunden. Für im Rahmen der Rechtsverfolgung zu erwartende Kosten
      behält die Heller Bank einen Betrag von Euro 7.000 ein. Ein etwaiger nach
      Abschluss aller Rechtsfälle verbleibender Überschuss wird an den Kunden
      ausgekehrt.

    

     

    
      	
              6.

            	
              Soweit
      eine Forderung, für die von der Heller Bank Delkredere geleistet worden
      ist, nachträglich bestritten oder in einem Insolvenzverfahren nicht zur
      Tabelle festgestellt wird, so haftet der Kunde der Heller Bank gegenüber
      in Höhe der bestrittenen beziehungsweise nicht festgestellten Forderung
      aus der Bestandsgarantie, sofern nicht die Forderung in einem durch den
      Kunden zu führenden gerichtlichen Verfahren nachträglich rechtskräftig
      festgestellt wird. Die Heller Bank wird die entsprechende Forderung bis
      zur Klärung im gerichtlichen Verfahren Zug um Zug gegen Rückzahlung des
      Kaufpreises an den Kunden zurück
abtreten.

            

    

     

    
      	
              7.

            	
              Soweit
      nach Forderungsrückübertragung Schecks nicht eingelöst werden, sind die
      Beträge unverzüglich zur Zahlung durch den Kunden an die Heller Bank
      fällig. Die Heller Bank ist berechtigt, eingehende Debitorenzahlungen mit
      Rückscheckforderungen zu
verrechnen.

            

    

     

    
      	
              8.

            	
              Im
      Übrigen gelten bis zur vollständigen Abwicklung und Rückführung der
      Inanspruchnahme die Bestimmungen aus dem Factoring-Vertrag nebst allen
      Nachträgen und Ergänzungen.

            

    

     

    
      	
              9.

            	
              Die
      Rechtswirksamkeit dieser Vereinbarung ist auch dann gewahrt, wenn diese
      von allen Vertragspartnern rechtsverbindlich unterzeichnet via Telefax
      zugegangen ist.

            

    

     

    
      	
              10.

            	
              Sollte
      eine Bestimmung dieses Vertrages nicht rechtswirksam sein oder nicht
      durchgeführt werden, so wird dadurch die Gültigkeit des übrigen
      Vertragsinhalts nicht berührt.

            

    

     

    
      	
              11.

            	
              Dieser
      Vertrag unterliegt deutschem Recht. Gerichtsstand für alle Streitigkeiten
      aus oder im Zusammenhang mit diesem Vertrag ist Mainz. Abweichende
      zwingende gesetzliche Zuständigkeiten bleiben
  unberührt.

            

    

     

    
      	
              12.

            	
              Der
      Cut Off Date ist ein Bankgeschäftstag. Alle in dieser Vereinbarung
      bezeichneten Folgetage („Cut Off Date plus X”) sind die jeweils folgenden
      Bankgeschäftstage. Das Datum des Cut Off Date wird von den Parteien gemäß
      gesonderter, schriftlicher Vereinbarung
  festgelegt.

            

    

     

     

     

    
    

     

    
      	Verl, den
      ______________    	___________________________________
	 	 
	 	Lloyds TSB
      Commercial Finance Ltd.
	 	 
	 	 
	Malterdingen, den
      _______________ 	___________________________________
	 	 
	 	Ferromatik Milacron
      Maschinenbau GmbH
	 	 
	 	 
	Mainz, den
      ______________________ 	 ___________________________________
	 	 
	 	HELLER BANK
      AKTIENGESELLSCHAFT

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

     

    SCHEDULE
8

     

    VEREINBARUNG
ZUR DATENFERNÜBERTRAGUNG (DFÜ)

     

    

     

    zwischen

     

    BFS finance GmbH

     

    Gütersloher Str. 123

     

    D-33145 Verl

     

    - nachfolgend BFS genannt -

     

    

     

    und

     

    FERROMATIK
MILACRON MASCHINENBAU GMBH

     

    Riegeler
Straße 4

     

    D-79364
Malterdingen

     

    - nachfolgend Auftraggeber genannt
-

     

    

     

    

     

    
      	
              1.

            	
              Die
      Übernahme der vom Auftraggeber einzureichenden Forderungsdaten
      einschließlich der Debitorenstammdaten für Neukunden in das EDV-System der
      BFS erfolgt ab dem 13.03.2008 per
    Datenfernübertra­gung.

            

    

     

    
      	
              2.

            	
              Der
      Auftraggeber überspielt der BFS Debitoren­stammdaten, Fakturen und
      Gutschriften sowie die Zahlungseingänge und sämtliche sonstige auf den
      Debitorenkonten vorgenommenen Buchungen  (Buchungsjournal) des
      Vortages und die sich daraus ergebenden aktuellen Forderungssalden über
      die vorgegebene Datenfernübertragungs-Schnitt­stelle (siehe Anlage).
      Zeitgleich werden Rechnungskopien und Liefernachweise sowie
      Gutschriftkopien nach jeweiliger Anforderung per Post oder Fax an die BFS
      übersandt.

            

    

     

    
      	
               
      

            	
              Die
      Überspielung der Daten hat in der gemäß Vertragsanlage vorgegebenen
      Satz­struktur zu erfolgen.

            

    

     

    
      	
               
      

            	
              Für
      die Überspielung der Daten wird dem Auftraggeber von BFS ein fester
      Zeitraum, der jederzeit angepasst werden kann,
  vorgegeben.

            

    

     

    
      	
              3.

            	
              Der
      Auftraggeber garantiert, dass er nur die von der BFS ge­nehmigten
      Informationen/Daten überspielt und darüber hinaus keine die BFS
      schädigenden Überspielungen vornimmt bzw. die Möglichkeit der
      Datenfernübertragung missbräuchlich verwendet. Für durch seine
      Verhaltens­weise entstehenden Schäden bei der BFS haftet der
      Auftrag­geber.

            

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
               
      

            	
              Die
      Übertragung der Daten bis zur Schnittstelle der BFS er­folgt auf
      Risiko des Auftraggebers. Dieses gilt für Datenverlust, -
      ver­änderungen und ähnliche Fälle sowohl bei Übersendung als auch bei
      Abruf von Daten.

            

    

     

    
      	
               
      

            	
              Bei
      fehlerhafter Übertragung von Daten (z. B. Daten gelangen nicht ins System
      der BFS, Fehlerprotokoll o. ä.) erfolgt eine Mitteilung an den
      Auftraggeber, der in Absprache mit der BFS die erneute Über­sendung
      der nicht übertragenen Daten
veranlasst.

            

    

     

    
      	
            	
              4.

            	
              Mit
      dem ordnungsgemäßen Eingang der Forderungsdaten bei der BFS gilt die
      Forderung als eingereicht.

            

    

     

    
      	
               
      

            	
              Mangelnde
      Übernahmefähigkeit seitens der BFS kann vom Auftraggeber nicht geltend
      gemacht werden.

            

    

     

    
      	
              5.

            	
              Die
      Kosten für die Überspielung der Daten sowie die Anpassungen am eigenen
      System werden vom Auftraggeber
übernommen.

            

    

     

    

     

     

    
    

     

    
      	Verl, den	Malterdingen,
      den
	 	 
	 	 
	 	 
	 	 
	_____________________________________ 	___________________________________
	 	 
	BFS finance
      GmbH	Ferromatik Milacron
      Maschinenbau GmbH

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    SIGNATURE
PAGE

     

    

     

    
      	
               

              _______________,
      12 March 2008

              [Place,
      Date]

            	
               

              _________________,
      12 March 2008

              [Place,
      Date]

            
	
               

              /s/
      Ralf Bauer

              /s/
      Martin Cooper

               

              [Signature(s)
      Buyer]

            	
               

              /s/
      Guy Moillet

               

              [Signature
      Seller]

            
	
               

              Ralf
      Bauer

              Permanent
      Representative

               

              Martin
      Cooper

              Permanent
      Representative

               

              [Name(s),
      Title(s)]

            	
               

              Guy
      Moillet

              Managing
      Directorrentech_ex0401.htm

    Exhibit
4.1

     

    
      AMENDMENT
NO. 2 TO AMENDED RIGHTS AGREEMENT

       

      THIS AMENDMENT NO. 2 (this “Amendment”)
to the amended Rights Agreement (the “Rights Agreement”), effective as of
January 18, 2005, by and between Rentech, Inc., a Colorado corporation (the
“Company”), and Computershare Trust Company, N.A., successor in interest to
Computershare Trust Company, Inc., as Rights Agent (the “Rights Agent”) is
effective as of March 12, 2008.

       

      RECITALS

       

      WHEREAS, the Board of
Directors has amended the Rights Agreement as set forth herein to increase the
Beneficial Ownership threshold for a Person to become an Acquiring Person from
15% of the Company’s Common Shares to 17.5% of the Company’s Common Shares and
to increase the threshold for a tender of exchange offer to trigger the issuance
of Rights Certificates from 15% to 17.5%; and

       

      WHEREAS, in accordance with
Section 27 of the Rights Agreement, this Amendment is entered into by the
Company and the Rights Agent.

       

      AGREEMENT

       

      NOW, THEREFORE, in
consideration of the foregoing recitals and the mutual covenants herein set
forth and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, and intending to be legally bound, the parties
hereto hereby agree as follows:

       

      1.           Definitions.  Unless
otherwise defined herein, all terms defined in the Rights Agreement have the
same meaning when used herein.

       

      2.           Amendment to Rights
Agreement.

       

      (a) Amendment
to Section 1.  The definition of “Acquiring Person” set forth
in Section 1(a) of the Rights Agreement is herby amended and restated in its
entirety as follows:

       

      “Acquiring Person” shall mean
any Person (as such term is hereinafter defined) who or which, together with all
Affiliates and Associates (as such terms are hereinafter defined) of such
Person, shall be the Beneficial Owner (as such term is hereinafter defined) of
17.5% or more of the Common Shares of the Company then outstanding, but shall
not include the Company, any Subsidiary (as such term is hereinafter defined) of
the Company, any employee benefit plan of the Company or any Subsidiary of the
Company, or any trust or other entity holding Common Shares for or pursuant to
the terms of any such plan.  Notwithstanding the foregoing, no Person
shall become an “Acquiring Person” for any purpose of this Agreement: (i) as the
result of an acquisition of Common Shares by the Company which, by reducing the
number of shares outstanding, increases the proportionate number of shares
beneficially owned by such Person to 17.5% or more of the Common Shares of the
Company then outstanding; provided, however, that if a Person shall become the
Beneficial Owner of 17.5% or more of the Common Shares of the Company then
outstanding by reason of share purchases by the Company and shall, after such
share purchases by the Company, become the Beneficial Owner of any additional
Common Shares of the Company, then such Person shall be deemed to be an
“Acquiring Person”; (ii) as the result of one or more acquisitions of Beneficial
Ownership of Common Shares of the Company from the Company or any Subsidiary of
the Company, which, together with Common Shares of the Company then Beneficially
Owned by the Person, aggregate 17.5% or more of the Common Shares of the Company
then outstanding, unless and until thereafter the Person acquires Beneficial
Ownership of any additional Common Shares from anyone other than the Company or
any Subsidiary of the Company and the Person’s aggregate Beneficial Ownership is
17.5% or more of the Common Shares of the Company then outstanding, in which
event the Person shall become an “Acquiring Person”; (iii) if the Board of
Directors of the Company determines in good faith that a Person who would
otherwise be an “Acquiring Person,” as defined pursuant to the foregoing
provisions of this paragraph (a), has become such inadvertently, and such Person
divests as promptly as practicable a sufficient number of Common Shares so that
such Person would no longer be an “Acquiring Person,” as defined pursuant to the
foregoing provisions of this paragraph (a).

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      (b) Amendment
to Section
2.  Section 2 of the Rights Agreement is hereby amended by
adding the following at the end of the last sentence thereof:

      

      
        	
                 
      

              	
                “upon
      ten (10) days’ prior written notice to the Rights Agent.  The
      Rights Agent shall have no duty to supervise, and shall in no event be
      liable for, the acts or omissions of any such Co-Rights
      Agent.”

              

      

      

      (c) Amendment
to Section 3.  Section 3(a) of the Rights Agreement is hereby
amended
and restated in its entirety as follows:

      

      Until the
earlier of (i) the tenth day after the Share Acquisition Date or (ii) the tenth
business day (or such later date as may be determined by action of the Board of
Directors of the Company prior to such time as any Person becomes an Acquiring
Person) after the date of the commencement by any Person (other than the
Company, any Subsidiary of the Company, any employee benefit plan of the Company
or of any Subsidiary of the Company or any trust or other entity holding Common
Shares for or pursuant to the terms of any such plan) of, or of the first public
announcement of the intention of any Person (other than the Company, any
Subsidiary of the Company, any employee benefit plan of the Company or of any
Subsidiary of the Company or any trust or other entity holding Common Shares for
or pursuant to the terms of any such plan) to commence, a tender or exchange
offer the consummation of which would Result in any Person becoming the
Beneficial Owner of Common Shares aggregating 17.5% or more of the then
outstanding Common Shares, irrespective of whether any shares are actually
purchased pursuant to any such offer (including any such date which is after the
date of this Agreement and prior to the issuance of the Rights; the earlier of
such dates being herein referred to as the “Distribution Date”), (x) the
Rights will be evidenced (subject to the provisions of Section 3(b) hereof) by
the certificates for Common Shares registered in the names of the holders
thereof (which certificates shall also be deemed to be Right Certificates) and
not by separate Right Certificates, and (y) the right to receive Right
Certificates will be transferable only in connection with the transfer of Common
Shares.  As soon as practicable after the Distribution Date, the
Company will prepare and execute, the Rights Agent will countersign, and the
Company will send or cause to be sent (and the Rights Agent will, if requested,
send) by first-class, postage-prepaid mail, to each record holder of Common
Shares as of the close of business on the Distribution Date, at the address of
such holder shown on the records of the Company, a Right Certificate (a “Right Certificate”),
evidencing one Right for each Common Share so held.  As of and after
the Distribution Date, the Rights will be evidenced solely by such Right
Certificates.

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      (d)  Amendment
to Section 21.  Section 21 of the Rights Agreement is amended
to insert the following new sentence after the existing first
sentence:

      

      
        	
                 
      

              	
                “In
      the event the transfer agency relationship in effect between the Company
      and the Rights Agent terminates, the Rights Agent will be deemed to have
      resigned automatically and be discharged from its duties under this
      Agreement as of the effective date of such termination, and the Company
      shall be responsible for sending any required
  notice.”

              

      

      

      (e)  Amendment
to Section 21.  Section 21 of the Rights Agreement is further
amended
to insert the term “, along with its Affiliates,” prior to the term, “a combined
capital and surplus of at least $20 million.”

      

      (f) Amendment
to Section 26.  Section 26 of the Rights Agreement is amended
to delete the Rights Agent notice information in its entirety and replace it
with the following:

      

      
        	
                 
      

              	
                “Computershare
      Trust Company, N.A.

              

      

      
        	
                 
      

              	
                250
      Royall Street

              

      

      
        	
                 
      

              	
                Canton,
      MA 02021

              

      

      
        	
                 
      

              	
                Attn:  Client
      Services”

              

      

      

      (g) Amendment
to Rights Agreement.  The Rights Agreement is amended to insert
the following new Section 35:

      

       “Force
Majeure”.  Notwithstanding anything to the contrary contained
herein, neither the Company nor the Rights Agent shall be liable for any delays
or failures in performance resulting from acts beyond its reasonable control
including, without limitation, acts of God, terrorist acts, shortage of supply,
breakdowns or malfunctions, interruptions or malfunction of computer facilities,
or loss of data due to power failures or mechanical difficulties with
information storage or retrieval systems, labor difficulties, war, or civil
unrest (each, a “Force Majeure Condition”); provided, that such delayed or
non-performing party shall use reasonable commercial efforts to resume
performance as soon as practicable. If any Force Majeure Condition occurs that
effects a party to this Agreement, the party delayed or unable to perform shall
give notice to the other party as soon as practicable, stating the nature of the
Force Majeure Condition and any action being taken to avoid or minimize its
effect.”

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      3.           Full Force And
Effect.  Except to the extent expressly provided in this
Amendment, the terms and conditions of the Rights Agreement remain in full force
and effect.

       

      4.           Counterparts.  This
Amendment may be executed in any number of counterparts, each of which when so
delivered shall be deemed an original, but all such counterparts taken together
shall constitute but one and the same instrument.

       

      5.           Severability.  Any
provision of this Amendment which is prohibited or unenforceable shall be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof in that jurisdiction or affecting
the validity or enforceability of such provision in any other
jurisdiction.

       

      6.           Governing Law.  This
Amendment shall be governed by the laws of the State of Colorado.

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      IN WITNESS WHEREOF, the parties hereto
have caused this Amendment No. 2 to be executed as of the date first above
written.

       

      RENTECH,
INC.

       

      By:  /s/ Colin
Morris                                                      

           Name:
Colin Morris

           Title:
Vice President and General Counsel

       

      COMPUTERSHARE
TRUST COMPANY, N.A.

       

      

      By:  /s/ Ian
Yewer                                                      

           Name:
Ian Yewer

           Title:
Branch President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]