Document:

Exhibit 4.6

 

DEBENTURE

 

BETWEEN

 

THE COMPANIES NAMED IN THIS DEED AS CHARGING COMPANIES

 

- and -

 

THE BANK OF NEW YORK

as Security Trustee

 

 

re: $130,000,000 Senior Secured Floating Rate Notes to Pipe

Acquisition Finance Plc

 

 

This Debenture
is subject to an Intercreditor Agreement (as defined herein)

 

 

TABLE OF CONTENTS

 

	
  Clause

  	
   

  	
   

  	
  Page
  No.

  
	
   

  	
   

  	
   

  	
   

  
	
  1

  	
  DEFINITIONS AND
  INTERPRETATION

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  2

  	
  UNDERTAKING TO PAY

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  3

  	
  GRANT OF SECURITY

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  4

  	
  THE CHARGES

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  5

  	
  CONVERSION OF
  FLOATING CHARGE

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  6

  	
  FURTHER ASSURANCE

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  7

  	
  PERFECTION OF
  SECURITY

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  8

  	
  INVESTMENTS

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  9

  	
  ACCOUNTS AND
  RECEIVABLES

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  10

  	
  GENERAL
  UNDERTAKINGS

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  11

  	
  NEGATIVE PLEDGE

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  12

  	
  PROHIBITION ON THE
  DISPOSAL OF ASSETS

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  13

  	
  NON-COMPLIANCE BY A
  CHARGING COMPANY

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  14

  	
  REPRESENTATIONS AND
  WARRANTIES

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  15

  	
  AGREEMENTS AND
  DECLARATIONS

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  16

  	
  WHEN SECURITY
  BECOMES ENFORCEABLE

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  17

  	
  APPOINTMENT OF
  RECEIVER OR ADMINISTRATOR

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  18

  	
  POWERS OF RECEIVER

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  19

  	
  STATUTORY POWERS

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  20

  	
  APPLICATION OF
  PROCEEDS

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  21

  	
  NON-COMPETITION

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  22

  	
  ADDITIONAL SECURITY

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  23

  	
  PROTECTION OF THIRD
  PARTIES

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  24

  	
  PROTECTION OF
  SECURITY TRUSTEE AND RECEIVER

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  25

  	
  EXPENSES

  	
   

  	
  22

  

 

 

	
  26

  	
  INDEMNITY

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  27

  	
  RELEASE OF SECURITY

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  28

  	
  AVOIDANCE OF
  PAYMENTS

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  29

  	
  EVIDENCE AND
  CALCULATIONS

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  30

  	
  CUMULATIVE REMEDIES
  AND WAIVERS

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  31

  	
  SEVERABILITY

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  32

  	
  APPROPRIATION

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  33

  	
  POWER OF ATTORNEY

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  34

  	
  NOTICES

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  35

  	
  LAND REGISTRY

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  36

  	
  ASSIGNMENT

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  37

  	
  COUNTERPARTS

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  38

  	
  THIRD PARTIES

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  39

  	
  ACCESSION

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  40

  	
  GOVERNING LAW

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 1 - The
  Initial Charging Companies

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 2 -
  Details of Security Assets

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Part 1 - Registered
  Land

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Part 3 -
  Intellectual Property

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Part 4 - Relevant
  Contracts

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 3 - Form
  of Deed of Accession    

  	
   

  	
  31

  

 

ii

 

THIS DEBENTURE
is granted as a deed on 16 December 2005

 

BETWEEN

 

(1)                                      THE COMPANIES LISTED IN SCHEDULE 1 TO THIS DEED (the “Initial Charging Companies”); and

 

(2)                                      THE BANK OF NEW YORK as
agent and security trustee for itself and the other Secured Parties (the “Security
Trustee”).

 

IT
IS AGREED:

 

1.                                                 DEFINITIONS AND INTERPRETATION

 

1.1                                          Definitions

 

In this Debenture, unless the context
otherwise requires:-

 

	
  “Account Bank”

  	
   

  	
  means The Bank of New York or such other
  bank which any Account is maintained from time to time;

  
	
   

  	
   

  	
   

  
	
  “Accounts”

  	
   

  	
  means any account or accounts opened or
  maintained by a Charging Company with the Security Trustee or any other
  person (and any replacement, subdivision or sub-account of that account) and
  the debts represented thereby;

  
	
   

  	
   

  	
   

  
	
  “Administrator”

  	
   

  	
  means a person appointed under Schedule B1
  to the Insolvency Act to manage a Charging Company’s affairs, business and/or
  property;

  
	
   

  	
   

  	
   

  
	
  “Assets”

  	
   

  	
  means the whole of the property, assets and
  undertaking from time to time mortgaged, charged or assigned (or expressed to
  be mortgaged, charged or assigned) by or pursuant to this Debenture;

  
	
   

  	
   

  	
   

  
	
  “Assigned Assets”

  	
   

  	
  means the Assets expressed to be assigned
  pursuant to Clause 4.1.4;

  
	
   

  	
   

  	
   

  
	
  “Charging Companies”

  	
   

  	
  means the Initial Charging Companies and
  any other member of the Group which accedes to the terms of this Deed
  pursuant to the terms of a duly executed Deed of Accession;

  
	
   

  	
   

  	
   

  
	
  “Debenture”

  	
   

  	
  means this debenture;

  
	
   

  	
   

  	
   

  
	
  “Deed of Accession”

  	
   

  	
  means a deed of accession substantially in
  the form set out in 

  

 

 

	
   

  	
   

  	
  Schedule 3 (Form of
  Deed of Accession);

  
	
   

  	
   

  	
   

  
	
  “Indenture”

  	
   

  	
  means the indenture dated on or around the
  date hereof between, inter alia,
  Pipe Acquisition Finance plc (“Pipe plc”),
  as issuer, the Guarantors party thereto and The Bank of New York, as trustee
  (as such agreement is amended, varied, supplemented, novated restated or
  replaced from time to time);

  
	
   

  	
   

  	
   

  
	
  “Insolvency Act”

  	
   

  	
  means the Insolvency Act 1986;

  
	
   

  	
   

  	
   

  
	
  “Insurances”

  	
   

  	
  means all policies of insurance (and all
  cover notes) which are at any time held by or written in favour of a Charging
  Company, or to which a Charging Company from time to time has an interest;

  
	
   

  	
   

  	
   

  
	
  “Intellectual Property Rights”

  	
   

  	
  means in relation to a Charging Company: 

   

  (a)         all
  patents, trademarks, service marks, designs, business names, copyrights,
  design rights, moral rights, inventions, confidential information, know how
  and other intellectual property rights and any interests of that Charging
  Company including by way of licence in any of the foregoing in each case
  whether registered or not (including, without limitation, the intellectual
  property rights (if any) specified in part 2 of Schedule 2 (Details of Security Assets); and 

   

  (b)         the
  benefit of all applications and rights to use such assets of that Charging
  Company;

  
	
   

  	
   

  	
   

  
	
  “Intercreditor Agreement”

  	
   

  	
  means the intercreditor agreement dated on
  or about the date of this Debenture between, amongst others, the Initial
  Charging Companies named therein, The Governor and Company of the Bank of
  Scotland and the Security Trustee;

  
	
   

  	
   

  	
   

  
	
  “Investments”

  	
   

  	
  means all rights, monies or property
  accruing or offered at any time by way of redemption, bonus, preference,
  pre-emption or otherwise or in respect of any shares (excluding shares held
  by a Charging Company in any of its subsidiaries) or in substitution or exchange
  thereof;

  

 

2

 

	
  “LPA”

  	
   

  	
  means the Law of Property Act 1925;

  
	
   

  	
   

  	
   

  
	
  “Newbridge Lease”

  	
   

  	
  has the meaning given to it in the
  Intercreditor Agreement;

  
	
   

  	
   

  	
   

  
	
  “Obligor”

  	
   

  	
  means any Charging Company and Murray International
  Metals Pte, Limited;

  
	
   

  	
   

  	
   

  
	
  “Planning Acts”

  	
   

  	
  means the Town and Country Planning Act
  1990, the Planning (Listed Buildings and Conservation Areas) Act 1990, the
  Planning (Hazardous Substances) Act 1990, the Planning (Consequential
  Provisions) Act 1990, the Town and Country Planning (Scotland) Acts 1997, the
  Planning (Listed Buildings and Conservation Areas) (Scotland) Act 1997,
  Planning (Hazardous Substances) (Scotland) Act 1997, the Planning
  (Consequential Provisions) (Scotland) Act 1997 and the Planning and
  Compensation Act 1991 together with all other statutes governing or
  controlling the use or development of land and property;

  
	
   

  	
   

  	
   

  
	
  “Property”

  	
   

  	
  means all estates and interests in
  freehold, leasehold and other immovable property (wherever situated) at the
  date of this Deed, or at any time thereafter, belonging to any Charging
  Company, or in which any Charging Company has an interest at any time
  (including the registered and unregistered land (if any) in England and Wales
  specified in part 1 of Schedule 2(Details of Security
  Assets)), together with:

   

  (a)           all
  buildings and fixtures (including trade fixtures) and fixed plant and
  machinery at any time thereon;

   

  (b)           all
  easements, rights and agreements (including any rights under any agreement
  relating to the purchase) in respect thereof;

   

  (c)           all
  proceeds of sale of that property; and 

   

  (d)           the
  benefit of all covenants given in respect thereof;

  
	
   

  	
   

  	
   

  
	
  “Receiver”

  	
   

  	
  includes any person or persons appointed
  (and any additional person or persons appointed or substituted) as a receiver
  and manager or a receiver or administrative receiver by the Security

  

 

3

 

	
   

  	
   

  	
  Trustee under this Debenture and shall
  include joint Receivers; 

  
	
   

  	
   

  	
   

  
	
  “Receivables”

  	
   

  	
  means all present and future book debts and
  other debts, rentals, royalties, fees, VAT and monetary claims and all other
  amounts at any time recoverable or receivable by, or due or owing to, any
  Charging Company (whether actual or contingent and whether arising under
  contract or in any other manner whatsoever) together with:

   

  (a)               the
  benefit of all rights, guarantees, Security and remedies relating to any of
  the foregoing (including without limitation, negotiable instruments,
  indemnities, reservations of property rights, rights of tracing and unpaid
  vendor’s liens and similar associated rights); and

   

  (b)           all
  proceeds of any of the foregoing;

  
	
   

  	
   

  	
   

  
	
  “Related Rights”

  	
   

  	
  means 

   

  (a)           all
  dividends, distributions and other income paid or payable on the relevant
  Investments together with all shares or other property derived from the
  Investments or any asset referred to in paragraph (b) below;

   

  (b)           all
  allotments, benefits, advantages, rights, monies or property accruing or
  offered at any time in relation to the relevant Investments whether by way of
  redemption, substitution, exchange, bonus or preference, under option rights
  or otherwise;

  
	
   

  	
   

  	
   

  
	
  “Relevant Contract”

  	
   

  	
  means each of the agreements specified in
  part 3 of Schedule 2 (Details of Security
  Assets) together with each other agreement supplementing or
  amending or novating or replacing the same with full benefit of all
  negotiable or non-negotiable instruments, guarantees, indemnities,
  debentures, mortgages, charges, collateral warranties and other security in
  respect of the same;

  
	
   

  	
   

  	
   

  
	
  “Secured Obligations”

  	
   

  	
  means all present and future liabilities
  and obligations (whether actual or contingent and whether owed jointly or
  severally or in any other capacity whatsoever) which now or hereafter may be or

  

 

4

 

	
   

  	
   

  	
  become due and owing by any Obligor to any
  Secured Party under or pursuant to the Indenture Documents but excluding any
  obligations or liabilities in respect of which the grant of security under
  the Debenture would contravene Section 151 of the Companies Act 1985; and

  
	
   

  	
   

  	
   

  
	
  “Secured Parties”

  	
   

  	
  means each of The Bank of New York for
  itself and as collateral agent and trustee for and on behalf of the Holders
  and the Holders (and “Secured Party”
  means either of them) ;

  
	
   

  	
   

  	
   

  
	
  “Security”

  	
   

  	
  means any mortgage, charge, pledge, lien or
  other security interest securing any obligation of any person, or any other
  agreement or arrangement having a similar effect.

  

 

1.2                                          Interpretation

 

Any reference in this Debenture to:-

 

1.2.1                                 a “Charging  Company”,
and “Obligor”, a “Secured Party”
or the “Security Trustee” or any other person
shall include any person deriving title from them or any permitted successor or
assign or transferee;

 

1.2.2                                 any “Indenture Document” or any other
agreement or instrument is a reference to that Indenture Document,
agreement or instrument as amended, novated, replaced or restated in whole or
in part (even if any of the same increases the obligations of any member of the
Group or provides for further advances);

 

1.2.3                                 a provision of law is a reference to that provision as amended or
re-enacted; 

 

1.2.4                                 “assets” includes any
present and future properties, revenues and rights of every description and
includes uncalled capital;

 

1.2.5                                 a “Clause”, “paragraph”,
“sub-paragraph” or “Schedule”
is to a clause, paragraph or sub-paragraph of, and the schedule to, this
Debenture;

 

1.2.6                                 Clause and Schedule headings are for convenience only and shall not
affect the construction of this Debenture; and

 

1.2.7                                 “Secured Obligations” includes
obligations and liabilities which would be treated as such but for the
liquidation or dissolution of or similar event affecting any member of Group. 

 

5

 

1.3                                           Words in the singular shall import the plural and vice versa.

 

1.4                                           The headings in this Debenture are for ease of reference only.

 

1.5                                           Terms defined in the Indenture have, unless expressly defined in
this Debenture, the same meaning when used in this Debenture.

 

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

 

1.7                                          If the Security Trustee reasonably considers that an amount paid by
any Charging Company to a Secured Party under a Indenture Document is capable
of being avoided or otherwise set aside on the liquidation or administration of
such Charging Company, then that amount shall not be considered to have been
irrevocably paid for the purposes of this Deed.

 

1.8                                          The liabilities and obligations of each of the Charging Companies
under this Deed shall be joint and several. 
Each Charging Company
agrees to be bound by this Deed notwithstanding that any other Charging Company
which was intended to sign or be bound by this Deed did not so sign or is not
bound by this Deed.

 

1.9                                          It is intended by the parties to this Debenture that this Debenture shall
take effect as a deed notwithstanding the fact that a party to this Debenture may
only execute this Debenture under hand.

 

1.10                                    In the event of any conflict or inconsistency arising between any of
the provisions of this Deed and the Intercreditor Agreement and/or the Indenture,
the provisions of the Intercreditor Agreement and/or the Indenture shall
prevail.

 

1.11                                    All Security and dispositions made or created, and all obligations
and undertakings contained, in this Debenture, in favour of or for the benefit
of the Security Trustee are made, created and entered into in favour of the Security
Trustee as trustee of the Secured Parties from time to time on the terms set
out in the Indenture.

 

1.12                                    Except as otherwise expressly provided for above, the provisions of Sections
1.0 and 1.03 of the Indenture shall apply hereto, mutatis
mutandis, as if the same had been set out herein. 

 

6

 

2.                                                 UNDERTAKING TO PAY

 

2.1                                          Each Charging Company as principal obligor and not merely as surety,
covenants in favour of the Security Trustee that it will on demand pay and
discharge the Secured Obligations when the same become due for payment or
discharge whether by acceleration or otherwise.

 

2.2                                          If a Charging Company fails to pay any sum on the due date for
payment of that sum the relevant Charging Company shall pay interest on that
sum (before and after judgment) from the date of demand until payment calculated
on a daily basis in accordance with the terms from time to time applicable
under the relevant Indenture Document. 

 

3.                                                 GRANT OF SECURITY

 

All mortgages, charges, assignments and other
security made or created under this Debenture are made or created: 

 

3.1                                           in favour of the Security Trustee;

 

3.2                                           with full title guarantee in accordance with the Law of Property
(Miscellaneous Provisions) Act 1994; and

 

3.3                                           as a continuing security for payment of the Secured Liabilities. 

 

4.                                                 THE CHARGES

 

4.1                                           Each Charging Company, in security for the payment or discharge of
the Secured Obligations, with full title guarantee:-

 

4.1.1                                 charges in favour of the Security Trustee by way of a first legal
mortgage:-

 

(a)                         the Property, if any, specified in part 1 of Schedule 2 (Details of Security Assets); and

 

(b)                        all other Property (except any property specified in Clause 4.1.1(a)
above and any freehold, leasehold or heritable property in Scotland) now or
hereafter belonging to it; and

 

4.1.2                                 subject to Clause 4.3, charges in favour of the Security Trustee by way
of a first fixed charge:-

 

(a)                         (to the extent that they are not the subject of an effective
mortgage under Clause 4.1.1 above) all Property and interests in Property now
or hereafter vested in, or

 

7

 

charged to, such Charging
Company (other than any property the subject of 4.1.1 above);

 

(b)                        all plant and machinery owned by each Charging Company and its
interests in any plant or machinery in its possession and the benefit of all
contracts, licence and warranties relating to the same;

 

(c)                           

 

(i)                            the Accounts and all monies standing to the credit of the Accounts;
and

 

(ii)                         all monies standing to the credit of such Charging Company from time
to time in any and all accounts with any bank, financial institution or other
person not otherwise charged by paragraph (i) above; 

 

(d)                       the Receivables;

 

(e)                        all its rights under any interest rate hedging arrangements;

 

(f)                          all of its rights under any intercompany loan agreement including,
without limitation: 

 

(i)                            the rights of Pipe plc under an intercompany loan agreement (the “Pipe  Intercompany Loan
Agreement”) dated on or about the date of this Debenture between
Pipe plc and Pipe Acquisition Limited (“Pipe Acquisition”));
and

 

(ii)                         the rights of Murray International Metals Limited (“MIM”) under an intercompany loan agreement (the “Murray Intercompany Loan Agreement”) dated on or about the
date of this Debenture between MIM and Pipe Acquisition;

 

(g)                       any beneficial interest, claim or entitlement of each Charging
Company in any pension fund;

 

(h)                        all its goodwill and uncalled capital;

 

(i)                            all Investments together with the Related Rights from time to time
accruing to those Investments;

 

(j)                            all its present and future Intellectual Property Rights owned by it;

 

8

 

(k)                         any letter of credit in favour of such Charging Company and all
bills of exchange and other negotiable instruments held by it;

 

(l)                            all its rights under any occupational lease, licence or other right
of occupation; and 

 

(m)                      the benefit of all licences, consents, warranties and Authorisations
(statutory or otherwise) held in connection with its business or the use of any
of its assets and the right to recover and receive all compensation which may
be payable to it in respect of them; and

 

(n)                        to the extent not effectively assigned pursuant to Clause 4.1.4, by
way of first fixed charge of those Assigned Assets;

 

4.1.3                                 by way of floating charge the whole of its undertaking and all other
property, assets and rights of whatever nature and wherever situated both
present and future which are not otherwise effectively charged pursuant to
paragraphs 4.1.1 and 4.1.2 above (but including all property, assets and rights
of the Chargor situated in Scotland, whether or not otherwise effectively
charged);

 

4.1.4                                 assigns and agrees to assign absolutely (subject to a proviso for
reassignment on redemption) to the Security Trustee all of each Charging
Companies right, title and interest from time to time in and to:

 

(a)                        the Insurances, all claims under the Insurances and all proceeds of
the Insurances;

 

(b)                       the Relevant Contracts, all rights and remedies in connection with
the Relevant Contracts and all proceeds and claims arising therefrom;  

 

(c)                        the Accounts (where such Accounts are not held with the Security
Trustee) and all monies at any time standing to the credit of the Accounts,
together with all interest from time to time accrued or accruing on such monies
and all rights to repayment of any of the foregoing; and 

 

(d)                       all other Receivables (not otherwise assigned under clause 4.1.4(a)
or 4.1.4 (b)).

 

To the extent that any Assigned Asset
described in clause 4.1.4(a) is not assignable, the assignment which that
clause purports to effect shall operate as an assignment of all present and
future rights and claims of such Charging Company to any proceeds of the
Insurances.

 

9

 

4.2                                           The floating charge created by this Debenture is a qualifying
floating charge and paragraph 14 of Schedule B1 to the Insolvency Act applies
to the floating charge hereby created and the Security Trustee may appoint an
Administrator of each Charging Company pursuant to that paragraph.

 

4.3                                           Without prejudice to the Security Trustee’s rights under Clause
10.7, the parties to this Agreement acknowledge that no fixed charge requires
to be granted over the Newbridge Lease at the date of this Agreement and that
the grant of such security is not permitted by the terms of the Sale and
Leaseback without the prior consent of the landlord under the Newbridge Lease.

 

5.                                                 CONVERSION OF FLOATING CHARGE

 

5.1                                           The Security Trustee may at any time by notice in writing to a
Charging Company convert the floating charge created by this Debenture into a
fixed charge in respect of any assets of such Charging Company specified in the
notice and such Charging Company will immediately at its own cost execute a
fixed charge over the specified assets in favour of the Security Trustee in
such form as may be reasonably required.

 

5.2                                          Automatic conversion

 

The floating charge created under this Deed
shall (in addition to the circumstances in which the same will occur under
general law) automatically convert into a fixed charge in relation to any Asset
which is subject to a floating charge if:

 

5.2.1                                  a Charging Company creates (or attempts or purports to create) any Security (other than a Permitted Lien
on or over the relevant Asset without the prior written consent of the Security
Trustee; or

 

5.2.2                                  any third party levies or attempts to levy any distress, execution, sequestration,
attachment or other legal process against any such Asset; 

 

5.2.3                                  a Charging Company ceases to carry on business or if a petition is
presented to wind up a Charging Company or a meeting of members is convened to
consider a resolution to wind up a Charging Company; and 

 

5.2.4                                  over all Assets of a Charging Company which are subject to a
floating charges an Administrator is appointed in respect of that Charging
Company. 

 

5.3                                          Partial conversion

 

The giving of a notice by the Security
Trustee pursuant to Clause 5.1 in relation to any class of assets of any
Charging Company shall not be construed as a waiver or abandonment of the
rights

 

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of the Security Trustee to serve similar
notices in respect of any other class of assets or of any of the other rights
of the Security Trustee and/or the other Secured Parties.

 

6.                                                 FURTHER ASSURANCE

 

6.1                                           Further Assurance: General

 

Each Charging Company shall promptly at its
own cost do all such acts or execute all such documents (including assignments,
transfers, mortgages, charges, notices and instructions) as the Security
Trustee may reasonably specify (and in such form as the Security Trustee may
reasonably require):

 

6.1.1                                  to perfect the Security created or intended to be created in respect
of the Assets or for the exercise of the rights of the Security Trustee in
relation thereto;

 

6.1.2                                  to confer on the Security Trustee security over any property and
assets of that Charging Company located in any jurisdiction outside England and
Wales equivalent or similar to the security intended to be conferred by or
pursuant to this Debenture and each mortgage; and/or 

 

6.1.3                                  whilst an Event of Default is continuing, to facilitate the
realisation of the Assets.

 

6.2                                           Necessary Action

 

Each Charging Company shall take all such
action as is available to it (including making all filings and registrations)
as may be necessary for the purpose of the creation, perfection, protection or
maintenance of any security conferred or intended to be conferred on the
Security Trustee by or pursuant to this Debenture and any mortgage.

 

7.                                                 PERFECTION OF SECURITY

 

7.1                                           Notices of Assignment

 

If required by the Security Trustee, each Charging
Company shall deliver to the Security Trustee (or procure delivery of) notices
of assignment in the form required by the Security Trustee duly executed by, or
on behalf of, the Chargor:

 

7.1.1                                 in respect of each Account assigned to pursuant to Clause 4.1.4, on
the date of this Debenture or promptly upon the designation at any time by the
Security Trustee of any such an Account so assigned Account; and

 

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7.1.2                                 in respect of any other asset which is the subject of an assignment
pursuant to Clause 4.1.4 promptly upon the request of the Security Trustee from
time to time,

 

and in each case shall use all reasonable
endeavours to procure that each notice is acknowledged by the addressee or
other third party specified by the Security Trustee. 

 

7.2                                           Notices of Charge

 

7.2.1                                 Each Charging Company shall if requested by the Security Trustee
from time to time promptly deliver to the Security Trustee (or procure delivery
of) notices of charge (in form and substance reasonably satisfactory to the
Security Trustee) duly executed by, or on behalf of, the relevant Charging
Company and acknowledged by (i) each of the banks or financial institutions
with which any of the Accounts are opened or maintained, or (ii) each of the
borrowers which are a party to any intercompany loan agreement.

 

7.2.2                                 The execution of this Debenture by each Charging Company and the
Security Trustee shall constitute notice to the Security Trustee of the charge
created over any Account opened or maintained with the Security Trustee.

 

7.3                                           Application to the Land Registry

 

Each Charging Company consents to an
application being made to enter a restriction in the Proprietorship Register of
any registered land at any time forming part of that Charging Company’s freehold,
leasehold or immovable property over which a legal mortgage or fixed charge is
taken pursuant to Clause 7.1.

 

7.4                                           Registration of Intellectual Property

 

Each Charging Company shall, if requested by
the Security Trustee, execute all such documents and do all acts that the
Security Trustee may reasonably require to record the interest of the Security
Trustee in any registers relating to any registered Intellectual Property
Rights.

 

7.5           Acknowledgement

 

Pipe
Acquisition hereby acknowledges that pursuant to this Debenture, Pipe plc and
Murray have assigned their respective rights under the Pipe Intercompany Loan
Agreement and the Murray Intercompany Loan Agreement.

 

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8.                                                 INVESTMENTS

 

8.1                                           Each Charging Company shall pay when due all calls or other payments
which may be or become due in respect of any of the Investments, and in any
case of default by any Charging Company in such payment, the Security Trustee
may, at its sole discretion, make such payment on behalf of a Charging Company in
which case any sums paid by the Security Trustee shall be reimbursed by such
Charging Company to the Security Trustee on demand and shall, if not so paid,
become part of the Secured Obligations.

 

8.2                                           If requested by the Security Trustee each Charging Company shall
promptly deliver (or procure delivery) to the Security Trustee all certificates
and other documents of title representing the Investments and their Related
Rights together with any other document which the Security Trustee may
reasonably request with a view to perfecting or improving its security over the
Investments or to registering any Investment in the name of the Security
Trustee or its nominee.

 

8.3                                           Each Charging Company shall not exercise any of its rights and
powers in relation to any of the Investments in any manner which, in the
opinion of the Security Trustee (acting reasonably), would materially prejudice
the value of, or the ability of the Security Trustee to realise, the security
created by this Debenture.

 

9.                                                ACCOUNTS AND RECEIVABLES 

 

9.1                                          Each Charging Company shall get in and realise:-

 

9.1.1                                  the Receivables; and 

 

9.1.2                                  securities to the extent held by way of temporary investment, 

 

in each case in the ordinary course of
business and following the occurrence of an Event of Default which is
continuing hold the proceeds of such getting in and realisation (until payment
into the Collateral Account referred to below) upon trust for the Security
Trustee;

 

9.2                                          Each Charging Company shall pay the proceeds of such getting in and
realisation into any account held with the Account Bank and following the
occurrence of an Event of Default which is continuing pay the proceeds of such
realisation and getting in of such proceeds into such separate and denominated
account or accounts as may be specified by the Security Trustee in writing (collectively
the “Collateral Account”).  

 

9.3                                          Following the occurrence of an Event of Default which is continuing,
no Charging Company shall be entitled to withdraw from the Collateral Account
all or any of the monies standing to the credit of such Collateral Account
except with the prior consent of the Security Trustee and the

 

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Security Trustee may, at any time after the Security
created by this Agreement has become enforceable, apply all monies standing to
the credit of the Collateral Account and interest thereon in and towards
satisfaction of the Secured Obligations. 

 

9.4                                          No monies at any time standing to the credit of any account (of any
type or however designated) of any Charging Company with the Security Trustee
or any Secured Party (or any of them) or in which any Charging Company has an
interest (and no rights and benefits relating thereto) shall be capable of
being assigned to any third party. 

 

10.                                           GENERAL UNDERTAKINGS

 

Each Charging Company shall:-

 

10.1                                     maintain such Insurances of such types, in such amounts, against
such risks and with such companies as the Security Trustee may approve on and
in relation to its business and assets against those rights and to the extent
as is usual for companies carry on the same or substantially similar business and
shall cause the name of the Security Trustee to be noted on the policy;

 

10.2                                     apply any monies received from any insurances in making good the
loss or damage in respect of which the monies were received or in repayment of
the Secured Obligations;

 

10.3                                     so far as is commercially reasonable, keep all Assets in a good
state of repair;

 

10.4                                     comply with all material obligations and conditions relating to the
freehold, heritable or leasehold property owned or occupied by any Charging Company
and at all reasonable times and on reasonable notice in writing permit the
Security Trustee and its representatives access to such property;

 

10.5                                     deposit with the Security Trustee all deeds and documents of title
relating to any freehold, heritable or leasehold property acquired by any
Charging Company from time to time and subject to a legal mortgage or fixed
charge under Clause 4.1;

 

10.6                                     notify the Security Trustee promptly of the acquisition of any
freehold, heritable or leasehold property and, if so requested by the Security
Trustee (acting reasonably), execute and deliver to the Security Trustee, at
the cost of any Charging Company, a legal mortgage or standard security in favour
of the Security Trustee over any freehold, heritable or leasehold property
vested in it after the date of this Debenture;

 

10.7                                     as soon as reasonably practicable following a demand in writing by
the Security Trustee execute and deliver in such form as the Security Trustee
may require:

 

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10.7.1                            a fixed charge (except in relation to the Newbridge Lease to which
clause 10.8 shall apply) or assignment in security of an Asset subject to the
floating charge under Clause 4.1.3; and/or

 

10.7.2                            a chattel mortgage over such chattels, plant and machinery as the Security
Trustee may specify; 

 

10.8                                     upon the occurrence of an Event of Default which is continuing the
Security Trustee may require the relevant Charging Company to use all
reasonable endeavours to obtain the consent upon commercially acceptable terms
of the landlord under the Newbridge Lease to the grant of a fixed charge over
the Newbridge Lease and if such consent is obtained to grant such security;

 

10.9                                     grant the Security Trustee and its representatives all facilities
within its power to enable the Security Trustee or its representatives to carry
out investigations of title into any property which is the subject of this
Debenture;

 

10.10                               not make or permit to make any planning permission in respect of any
part of its freehold, heritable or leasehold property charged pursuant to
Clause 4.1.1 or 4.1.2 to carry out or permit to be carried out on any part of
its freehold, heritable or leasehold property charged pursuant to Clause 4.1.1
or 4.1.2 any development within the meaning of that expression in the Planning
Acts and being a development for which the permission of the local planning
authority is required;

 

10.11                               promptly pay all rates, rents, taxes and other outgoings in respect
of any freehold, heritable or leasehold property owned or occupied by that
Charging Company charged pursuant to Clause 4.1.1 and 4.1.2;

 

10.12                               provide the Security Trustee with such information relating to the
business of the Company, its financial condition and the Assets as the Security
Trustee may reasonably require from time to time;

 

10.13                              permit the Security Trustee (or its designated representatives), on
reasonable written notice:

 

10.13.1                      access during normal office hours to the accounting records of such
Charging Company and to any documents and records relating to the Security
Assets; and

 

10.13.2                      to inspect, take extracts from, and make photocopies of, the same,

 

and to provide (at the expense of such
Charging Company), such clerical and other assistance which the Security
Trustee may reasonably require to do this.

 

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11.                                           NEGATIVE PLEDGE

 

Save for any Permitted Security or as
otherwise permitted under the Facility Agreement, no Charging Company shall
without the prior written consent of the Security Trustee, create or permit to
subsist any Security over any Asset other than pursuant to this Debenture or
any other Security in favour of the Security Trustee.

 

12.                                           PROHIBITION ON THE DISPOSAL OF ASSETS

 

Save for any Permitted Disposal or as
otherwise permitted under the Facility Agreement, no Charging Company shall
without the prior written consent of the Security Trustee:-

 

12.1                                     dispose of the Assets or any part thereof or interest therein other
than in the ordinary course of business;

 

12.2                                     sell, factor, assign, discount or otherwise deal with any
Receivables forming part of the Assets except in accordance with Clause 10.13

 

12.3                                     pull down or remove the whole or any part of any buildings forming
part of the Assets or sever or unfix or remove any of the fixtures thereto nor
(except for the purposes of effecting necessary repairs thereto or of replacing
the same) remove any of the plant and machinery belonging to or used by it; or

 

12.4                                     grant or agree to grant any tenancy or licence affecting all or any
part of the Assets or grant or agree to grant a lease or sublease of, or accept
a surrender of a lease, sublease or tenancy of all or any part of the Assets.

 

13.                                           NON-COMPLIANCE BY A CHARGING COMPANY

 

If a Charging Company for any reason fails to
observe or punctually perform any of its obligations under this Debenture, the
Security Trustee shall be entitled (but not bound) (without prejudice to any
other rights arising as a consequence of such non-compliance), on behalf of or
in the name of that Charging Company or otherwise, to perform the obligation
and to take any steps which the Security Trustee may reasonably consider
necessary with a view to remedying or mitigating the consequences of the
failure or default.  Such Charging
Company irrevocably authorises the Security Trustee and its employees and
agents by way of security to do all such things (including entering the
property of such Charging Company) necessary or desirable to rectify that
default. The exercise of the powers of the Security Trustee under this Clause 13
(Non-Compliance by a Charging Company)
shall not render it, or any other Secured Party, liable as a mortgagee in
possession.  Such Charging Company shall
pay to the Security Trustee on

 

16

 

demand any monies which are expended by the
Security Trustee in doing so, together with interest at the Default Rate from
the date on which those monies were expended by the Security Trustee (both
before and after judgment).

 

14.                                           REPRESENTATIONS AND WARRANTIES

 

Each Charging Company represents and warrants
to the Security Trustee and each other Secured Party that:-

 

14.1                                     it is duly incorporated and validly existing under the laws of the
jurisdiction of its incorporation;

 

14.2                                     it has the power to grant this Debenture and to perform its
obligations hereunder;

 

14.3                                     it has taken all necessary corporate action to authorise the
execution and delivery of this Debenture and to authorise the performance of
its obligations hereunder;

 

14.4                                     subject to the registration of this Debenture with the Registrar of
Companies in accordance with section 395 of the Companies Act 1985, this
Debenture constitutes a valid, binding and enforceable obligation of each Charging
Company. 

 

14.5                                     so far as it is aware, neither the granting of this Debenture by
each Charging Company nor the performance of its obligations hereunder will
contravene any law or regulation or any agreement to which it is a party or by
which it is bound in any material respect nor will it cause any material limitation
of any of the powers of the relevant Charging Company however imposed or the
right or ability of the directors to exercise any of such powers to be
exceeded; and

 

14.6                                     all Authorisations required for the entry into, performance,
validity and enforceability of this Debenture by it and for the conduct of its
business have been obtained and are in full force and effect.

 

15.                                           AGREEMENTS AND DECLARATIONS

 

15.1                                     No Charging Company shall exercise or agree to exercise any of the
powers of leasing or of accepting surrenders or leases conferred by sections 99
and 100 of the LPA or by common law or otherwise or grant or accept or agree to
grant or accept any lease, tenancy or licence or share or agree to share
possession or occupation of the Assets but the Security Trustee shall be
entitled to grant and make agreements for leases at a premium or otherwise and
accept surrenders of leases and grant options on such terms as the Security
Trustee shall consider expedient and without statutory or other restrictions.

 

17

 

15.2                                     Section 93 of the LPA shall not apply to this Debenture.

 

15.3                                     For the purposes of Section 101 of the LPA the Secured Obligations
shall be deemed to have become due on demand.

 

15.4                                     Section 103 of the LPA shall not apply to this Debenture and all
sums secured by it shall be immediately payable on demand and failing immediate
payment of any sum demanded this security shall immediately become enforceable
and the power of sale and other powers conferred on mortgagees by the LPA and
by this Debenture shall immediately become exercisable without any of the
restrictions contained in the LPA.

 

16.                                           WHEN SECURITY BECOMES ENFORCEABLE

 

16.1                                     When enforceable

 

The security created by this Debenture shall
become enforceable at any time after the occurrence of an Event of Default and
shall remain so for so long as such Event of Default is continuing.  

 

16.2                                     Statutory powers

 

The power of sale and other powers conferred
by section 101 of the LPA (as varied or amended by this Debenture) shall be
immediately exercisable upon and at any time after the occurrence of any Event
of Default and for so long as such Event of Default is continuing.  Section 93 and 103 of the Act will not apply
to this Debenture and the Security Trustee may exercise its powers of sale and
other powers under that and any other legislation or this Debenture at any time
after the date of this Debenture. 

 

16.3                                     Enforcement

 

After this security has become enforceable,
the Security Trustee may in its absolute discretion enforce all or any part of
this security in such manner as it sees fit.

 

17.                                           APPOINTMENT OF RECEIVER OR ADMINISTRATOR

 

17.1                                     Without prejudice to the provisions of the Insolvency Act, the
Security Trustee may by instrument in writing appoint such person or persons as
it thinks fit as Receiver or Administrator:-

 

17.1.1                           at any time after the security created by this Debenture becomes
enforceable; or 

 

17.1.2                           upon a written request by any Charging Company to appoint a
Receiver; or

 

18

 

17.1.3                           at any time after any step is taken (including, without limitation,
the making of an application or the giving of notice) by a Charging Company or
by any other person to appoint an Administrator in respect of the Company; or

 

17.1.4                           at any time after any step is taken (including without limitation,
the making of an application or the giving of notice) by a Charging Company or
any other person to wind up or dissolve a Charging Company or to appoint a liquidator,
trustee, administrative receiver or similar officer to a Charging Company of
any part of its undertaking or assets; or

 

17.1.5                           at any time after presentation of a petition for an administration
order in relation to a Charging Company;

 

and none of the restrictions imposed by the
LPA in relation to the appointment of receivers or otherwise shall apply.

 

17.2                                     Nothing in this Clause 17 shall restrict the exercise by the
Security Trustee of any of the rights of the Security Trustee under Schedule B1
to the Insolvency Act and any rules made thereunder or at common law.

 

17.3                                     If any person appointed to be a Receiver is removed by the court or
shall otherwise cease to act as Receiver then the Security Trustee shall be
entitled to appoint another person or persons as Receiver in his place.

 

17.4                                     A Receiver shall be the agent of each Charging Company and, except
as otherwise required by the Insolvency Act, each Charging Company shall be
solely responsible for his acts and defaults and liable on any contract or
engagements made or entered into or adopted by him.

 

17.5                                     The Security Trustee and any Receiver may delegate by power of
attorney or in any other manner to any person any right, power or discretion
exercisable by them under this Debenture. 
Any such delegation may be made upon the terms (including power to
sub-delegate) and subject to any regulations which the Security Trustee or such
Receiver (as the case may be) may think fit. 
Neither the Security Trustee nor any Receiver will be in any way liable
or responsible to any Charging Company for any loss or liability arising from
any act, default, omission or misconduct on the part of any such delegate or
sub-delegate.

 

17.6                                     Save as provided for in statute, no Secured Party shall have any
liability for the acts and/or omissions of an Administrator.

 

19

 

18.                                           POWERS OF RECEIVER

 

A Receiver shall have (and be entitled to
exercise), in relation to the Charged Assets over which he is appointed the
following powers (as the same may be varied or extended by the provisions of
this Debenture):

 

18.1                                     all of the powers of an administrative receiver set out in Schedule
1 to the Insolvency Act 1986 (whether or not the Receiver is an administrative
receiver);

 

18.2                                     all of the powers conferred from time to time on receivers,
mortgagors and mortgagees in possession by the LPA;

 

18.3                                     all the powers and rights of a legal and beneficial owner and the
power to do or omit to do anything which a Charging Company itself could do or
omit to do; and

 

18.4                                     the power to do all things which, in the opinion of the Receiver,
are incidental to any of the powers, functions, authorities or discretions
conferred or vested in the Receiver pursuant to this Debenture or upon
receivers by statute or law generally (including the bringing or defending of
proceedings in the name of, or on behalf of, a Charging Company and the
collection and/or realisation of Assets in such manner and on such terms as the
Receiver sees fit).

 

19.                                           STATUTORY POWERS

 

The power conferred on mortgagees or
receivers by the LPA, the Insolvency Act, the Insolvency Rules 1986 or by any
other enactment now or at any time in force shall apply to the Security Trustee
and any Receiver expect in so far as they are expressly or impliedly excluded
and where there is any ambiguity or conflict between powers conferred by that
legislation and those contained in this Debenture the terms of this Debenture
shall prevail.

 

20.                                           APPLICATION OF PROCEEDS

 

Subject to the provisions of the
Intercreditor Agreement, any moneys received by the Security Trustee or any
Receiver after the security constituted by this Debenture has become
enforceable shall be applied in the following order of priority (but without
prejudice to the right of the Security Trustee to recover any shortfall from a
Charging Company):-

 

20.1                                     first, in satisfaction
of or provision for all costs and expenses incurred by the Security Trustee or
any Receiver or any other Secured Party (including but not limited to costs and
expenses incurred by the Security Trustee or any Receiver in the course of
carrying on the business of a Charging Company) and of all remuneration due to
any Receiver under this Debenture;

 

20

 

20.2                                     second, in or towards
payment of the Secured Obligations or such part of them as is then due and
payable to any Secured Party; and

 

20.3                                     third, in payment of
the surplus (if any) to a Charging Company or other person entitled to it.

 

21.                                           NON-COMPETITION

 

21.1                                     Until all the Secured Obligations have been paid or satisfied in
full and irrevocably, each Charging Company shall not, unless required to do so
by the Security Trustee in writing:-

 

21.1.1                           be subrogated to any rights of the Security Trustee against any
Obligor or be entitled to any right of contribution or indemnity in respect of
any payment to the Security Trustee by any Obligor; or

 

21.1.2                           be entitled to claim in the insolvency, administration, winding-up,
bankruptcy or liquidation of any Obligor in competition with the Security
Trustee; or

 

21.1.3                           exercise any right of compensation, retention or set-off against any
Obligor ; or

 

21.1.4                           take any security or guarantee from any Obligor or claim the benefit
of or exercise any right under any guarantee or security granted by any Obligor
in favour of any Charging Company.

 

21.2                                     If any security or guarantee is held from any Obligor by the Company
or if any amount is received, retained or set-off by each Charging Company either
in contravention of Clause 21.1 or, following a request from the Security
Trustee to exercise any of the rights referred to, each Charging Company shall
hold such security or guarantee and any amount received, retained or set-off in
trust for the Security Trustee and shall pay that amount to the Security
Trustee on demand.

 

22.                                           ADDITIONAL SECURITY

 

22.1                                     This Debenture shall be without prejudice and in addition to any
other security which may at any time be held by the Security Trustee or any
other Secured Party from the Company or any other person in respect of the
whole or any part of the Secured Obligations and may be enforced independently
of any such other security.

 

22.2                                     The Security Trustee shall not be obliged before exercising any of
the rights conferred on it by this Debenture or by law:-

 

21

 

22.2.1                           to take any action, enforce any security, exercise any right of
compensation or set-off or to obtain or enforce any judgement, decree or order
in any court against any Charging Company or any other person; or

 

22.2.2                           to make or file any claim or proof in a winding up, liquidation,
administration or other insolvency proceedings of any Charging Company or any
other person.

 

23.                                           PROTECTION OF THIRD PARTIES

 

23.1                                     No purchaser from, or other person dealing with, a Receiver shall be
concerned to enquire whether any of the powers exercised or purported to be
exercised has arisen or become exercisable, whether any of the Secured
Obligations remains outstanding, whether a Receiver is authorised to act or as
to the propriety or validity of the exercise or purported exercise of any
power.

 

23.2                                     The receipt of a Receiver shall be an absolute discharge to a
purchaser from, or other person dealing with, the Receiver and shall relieve
that purchaser of any obligation to see to the application of any monies paid
to or at the direction of the Receiver.

 

24.                                           PROTECTION OF SECURITY TRUSTEE AND
RECEIVER

 

Neither the Security Trustee nor the Receiver
shall be liable to a Charging Company in respect of any loss or damage which
arises out of the exercise, the attempted or purported exercise or the failure
to exercise any of their respective powers or for any other loss of any nature
whatsoever.

 

In connection with its appointment and acting
hereunder, the Security Trustee is entitled to all rights, privileges,
protections, immunities and indemnities provided to it under the Indenture.

 

25.                                           EXPENSES

 

Each Charging Company shall reimburse or pay
to the Security Trustee and any Receiver and each other Secured Party on demand
the amount of all costs and expenses (including legal and other professional
fees plus disbursements) properly incurred by the Security Trustee and by any
Receiver and any other Secured Party (together with any applicable value added
tax) in connection with:-

 

25.1                                     the preparation, negotiation, execution and registration of this
Debenture;

 

22

 

25.2                                     the perfection of any security created or intended to be created by
this Debenture or any other document entered into by a Charging Company and/or
the Security Trustee and/or a Receiver and/or any other Secured Party pursuant
to this Debenture;

 

25.3                                     the exercise or the attempted or purported exercise by or on behalf
of the Security Trustee or a Receiver of any of the powers of the Security
Trustee or a Receiver, and the enforcement, preservation or the attempted or
purported enforcement or preservation of this Debenture; and

 

25.4                                     the carrying out of any other act which the Security Trustee or the
Receiver may reasonably consider to be necessary for the preservation of the
Assets.

 

26.                                           INDEMNITY

 

Each Charging Company shall indemnify the
Security Trustee and each Receiver and each other Secured Party from and
against all losses, costs, expenses, claims, demands and liabilities whether in
contract, delict, tort or otherwise (together with any applicable value added
tax) properly incurred by the Security Trustee or that Receiver or any other Secured
Party or by any employee or agent of the Security Trustee or any Receiver or
any other Secured Party in connection with anything done or omitted under this
Debenture or any other document relating to it, or in the exercise or attempted
or purported exercise of the powers contained in this Debenture or occasioned
by any breach by any Charging Company of any of its undertakings or other
obligations to the Security Trustee or any other Secured Party, or in
consequence of any payment in respect of the Secured Obligations (whether made
by any Charging Company or a third person) being declared void or impeached for
any reason.

 

27.                                           RELEASE OF SECURITY

 

27.1                                     When the Secured Obligations have been irrevocably paid or
discharged in full to the satisfaction of the Security Trustee (acting reasonably)
and no Secured Party has any further obligation to provide credit facilities or
other accommodation to any Obligor or, if the Security Trustee so agrees, at
any other time, the Security Trustee shall, subject to the provisions of Clause
27.2, at the request and cost of relevant Charging Company, promptly execute
such documents as may be required to release this Debenture and any other
security created over the Assets under the terms of this Debenture.

 

27.2                                     If any payment or discharge of the Secured Obligations is, in the
reasonable opinion of the Security Trustee, likely to be avoided or invalidated
under any enactment relating to bankruptcy

 

23

 

or insolvency, the Security Trustee may
refuse to grant any release of the security created by this Debenture for such
further period as the risk of such avoidance or invalidity continues.

 

28.                                           AVOIDANCE OF PAYMENTS

 

No assurance, security or payment which may
be avoided or adjusted under the law, including under any statute relating to
bankruptcy or insolvency and no release, settlement or discharge given or made
by the Security Trustee on the faith of any such assurance, security or
payment, shall prejudice or affect the right of the Security Trustee and each other
Secured Party to recover the Secured Obligations from the relevant Charging Company
(including any monies which the Security Trustee may be compelled to pay or
refund under the provisions of the Insolvency Act and any costs payable by it
pursuant to or otherwise incurred in connection therewith) or to appoint a
Receiver and enforce the charges contained in this Debenture to the full extent
of the Secured Obligations.

 

29.                                           EVIDENCE AND CALCULATIONS

 

Any certificate or determination by the
Security Trustee as to any amount due to the Security Trustee or as to the
amount of the Secured Obligations shall, in the absence of manifest error, be
conclusive and binding on each Charging Company for all purposes.

 

30.                                           CUMULATIVE REMEDIES AND WAIVERS

 

The rights of the Security Trustee and the
Receiver may be exercised as often as necessary, are cumulative and are in
addition to their respective rights under general law and may be waived only in
writing and specifically.  Delay in the
exercise or non-exercise of any right shall not be a waiver of that right.

 

31.                                           SEVERABILITY

 

If any of the provisions of this Debenture is
or becomes invalid, illegal or unenforceable that shall not affect the
validity, legality and enforceability of any other provision in this Debenture.

 

32.                                           APPROPRIATION

 

32.1                                     The Security Trustee may appropriate all payments received for the
account of a Charging Company in reduction of such part of the Secured
Obligations as the Security Trustee thinks fit.

 

24

 

32.2                                     The Security Trustee may open a new account or accounts upon the
Security Trustee receiving actual or constructive notice of any charge or interest
affecting the Assets.  Whether or not the
Security Trustee opens any such account, no payment received by the Security
Trustee after receiving such notice shall (if followed by any payment out of or
debit to the relevant account) be appropriated towards or have the effect of
discharging any part of the Secured Obligations outstanding at the time of
receiving such notice.

 

32.3                                     This Clause 32 applies to the extent the Assets constitute “financial
collateral” and this Debenture constitutes “financial collateral arrangement”
(within the meaning of the Financial Collateral Arrangements (No. 2) Regulations
2003).

 

33.                                           POWER OF ATTORNEY

 

33.1                                     By way of security for the obligations of each Charging Company
under this Debenture, each Charging Company irrevocably appoints the Security
Trustee (whether or not a Receiver has been appointed and (as a separate appointment))
every Receiver to be its attorney on its behalf or in its name or otherwise to
execute and do all such assurances, acts and things which any Charging Company
is required to do under this Debenture and generally in its name and on its
behalf to exercise all or any of the powers, conferred by or pursuant to this
Debenture or by statute on the Security Trustee or any Receiver and to seal and
deliver and otherwise perfect any deed, assurance, agreement, instrument or act
which it or he may reasonably deem proper in or for the purpose of exercising
any such powers, authorities and discretions.

 

33.2                                     Each Charging Company ratifies and confirms whatever any such
attorney mentioned in Clause 33.1 shall do or purport to do in the exercise or
purported exercise of all or any of the powers, authorities and discretions
referred to in such Clause.

 

34.                                           NOTICES

 

34.1                                     All notices or other communications under or in connection with this
Debenture shall be given in writing by facsimile or letter.  Any notice shall be deemed to be given as
follows:-

 

34.1.1                           if sent by facsimile, with confirmed receipt of transmission from
the receiving machine, on the Business Day it was transmitted or, if
transmitted after the normal business hours of the recipient, the following
Business Day;

 

34.1.2                           if delivered by hand, on the Business Day of actual delivery or if
delivered after the normal business hours of the recipient, the following
Business Day; and

 

25

 

34.1.3                           if posted, on the second Business Day following the day on which it
was properly despatched by first class mail postage prepaid.

 

34.2                                     The address and facsimile number for notices to each Charging Company
is as set out in Schedule 1 or such other address or facsimile number as the relevant
Charging Company may notify to the Security Trustee by not less than five
Business Days’ notice.

 

34.3                                     The address for notices to the Security Trustee is The Bank of New
York, One Canada Square London E14 5AL and the facsimile number is + 44 (0) 207
964 6399, in each case marked for the attention of Corporate Trust
Administration or such other address or facsimile number as the Security
Trustee may notify to each Charging Company by not less than five Business Days’
notice.

 

35.                                           LAND REGISTRY

 

35.1                                     Each Charging Company hereby consents to an application being made
to the Land Registry to enter the following restriction in the Register of
Title of all present and future registered freehold and leasehold property subject
to legal mortgage or fixed charge under Clause 4.1 which is or is required to
be registered forming part of the Assets:-

 

“No disposition (in particular no transfer,
charge, mortgage or lease) of the registered estate or by the proprietor of the
registered estate any future registered charge is to be registered without a
written consent signed by the proprietor for the time being of the charge dated
16 December 2005 in favour of The Bank of New York referred to in the Charges
Register or his conveyancer”.

 

35.2                                     If any Secured Party is obliged to make further advances to a
Charging Company, such Charging Company applies to the Chief Land Registrar for
the registration against the registered title of such of the Assets (if any) as
is registered under the Land Registration Act 1925 of a note that the Security
Trustee is under an obligation to make further advances to that Charging Company.

 

36.                                          ASSIGNMENT

 

36.1                                    Charging Companies 

 

No Charging Company may assign any of its
rights under this Debenture. 

 

26

 

36.2                                    Security Trustee

 

The Security Trustee may assign or transfer
all or any part of its rights under this Debenture pursuant to the resignation
or removal of the Security Trustee in accordance with the terms of the
Intercreditor Agreement and the Indenture. Each Charging Company will, immediately
upon being requested to do so by the Security Trustee, enter into such
documents as may be necessary or desirable to effect such transfer. 

 

37.                                           COUNTERPARTS

 

This Debenture may be executed in any number of counterparts, and this
has the same effect as if the signatures (and seals, if any) on the counterpart
were a single copy of this Debenture.

 

38.                                           THIRD PARTIES

 

Unless expressly provided to the contrary in
this Debenture, a person who is not a party to this Debenture may not enforce
any of its terms under the Contracts (Rights of Third Parties) Act 1999.

 

39.                                          ACCESSION

 

Each Charging Company irrevocably authorises
the Company to agree to, and execute as a deed, any duly completed Deed of
Accession as agent for and on behalf of such Charging Company.

 

40.                                           GOVERNING LAW

 

This Debenture shall be governed by, and
construed in accordance with, the laws of England.

 

IN WITNESS WHEREOF this Debenture has been
executed as a deed on the date stated at the beginning of this Debenture.

 

27

 

SCHEDULE 1

 

The
Initial Charging Companies 

 

	
  Name

  	
   

  	
  Address

  	
   

  	
  Company
  Number

  	
   

  	
  Facsimile
  Number

  
	
  Pipe Acquisition Limited

  	
   

  	
  Jeffries Capital Partners

  520 Madison Avenue

  12th Floor

  New York, NY 10022

  For the attention of: James Luikart and Nick Daraviras

  

  with a copy to:

  160 Queen Victoria Street

  London

  EC4V 4QQ

  For the attention of David Wallis

  	
   

  	
  05501083

  	
   

  	
  To: 0012122841717

  

  Cc: 020 7184 7001

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Murray International Metals Limited

  	
   

  	
  Jeffries Capital Partners

  520 Madison Avenue

  12th Floor

  New York, NY 10022

  For the attention of: James Luikart and Nick Daraviras

  

  with a copy to:

  160 Queen Victoria Street

  London

  EC4V 4QQ

  For the attention of David Wallis

  	
   

  	
  01241058

  	
   

  	
  To: 0012122841717

  

  Cc: 020 7184 7001

  

 

28

 

	
  Pipe Acquisition Finance PLC

  	
   

  	
  Jeffries Capital Partners

  520 Madison Avenue

  12th Floor

  New York, NY 10022

  For the attention of: James Luikart and Nick Daraviras

  

  with a copy to:

  160 Queen Victoria Street

  London

  EC4V 4QQ

  For the attention of David Wallis

  	
   

  	
  05644999

  	
   

  	
  To: 0012122841717

  

  Cc: 020 7184 7001

  

 

29

 

SCHEDULE 2

 

Details
of Security Assets

 

Part 1

 

Registered Land

 

	
  Charging
  Company

  	
   

  	
  Address

  	
   

  	
  County/County Borough/

  London Borough

  	
   

  	
  Title Number

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Murray International Metals Limited

  	
   

  	
  49 Coniscliffe Road, Darlington

  	
   

  	
  Durham, Darlington

  	
   

  	
  DU 41858

  

 

 

Part 2

 

Intellectual Property

 

None

 

 

Part 3

 

Relevant Contracts

 

None

 

30

 

SCHEDULE 3 

 

Form
of Deed of Accession

 

THIS SUPPLEMENTAL DEED is made on                                                                                                                                  200

 

BETWEEN

 

(1)           THE COMPANY LISTED IN THE SCHEDULE (the “Acceding Company”);

 

(2)           •    LIMITED (the “Company”); and

 

(3)           THE BANK OF NEW YORK (the “Security  Trustee”).

 

BACKGROUND

 

This
Supplemental Deed is supplemental to a debenture dated • 200• and made between
(1) the Charging Companies and (2) the Security Trustee (the “Debenture”).

 

IT IS AGREED as follows:

 

1.                                      DEFINITIONS
AND INTERPRETATION

 

1.1                                 Terms defined in, or construed for the purposes of, the Debenture
have the same meanings when used in this Supplemental Deed including the
recital to this Supplemental Deed (unless otherwise defined in this
Supplemental Deed).

 

1.2                                 The principles of construction set out in clause 1.2 of the
Debenture shall apply with any necessary changes to this Supplemental Deed as
if the same were set out in full in this Supplemental Deed.

 

2.                                      ACCESSION
OF THE ACCEDING COMPANY

 

2.1                                 By its execution of this Supplemental Deed, the Acceding Company
unconditionally and irrevocably undertakes to and agrees with the Security Trustee
to observe and be bound by the terms and provisions of the Debenture as if it
were an original party to the Debenture as one of the Charging Companies.

 

2.2                                 Without prejudice to the generality of clause 2.1, the Acceding
Company:

 

2.2.1                        (jointly and severally with the other Charging Companies) covenants
in the terms set out in clauses 2 to the Debenture; and

 

31

 

2.2.2                        with full title guarantee, charges and assigns to the Security
Trustee for the payment and discharge of all monies and liabilities by this
Supplemental Deed, or by the Debenture, covenanted to be paid or discharged by
it, all its property, assets and undertaking on the terms set out in clauses 3
and 4 of the Debenture subject to:

 

(a)                        in respect of clauses 4.1.1 and 4.1.2 of the Debenture, by way of
first legal mortgage and first fixed change all the freehold and leasehold
property that has an unexpired term of 25 years or more (if any) vested in or
charged to such Charging Company (including without limitation, the property
specified in Schedule 2 hereto, together with all building and fixtures (including
trade fixtures) at any time thereon but excluding any leasehold property that
has an unexpired term of less than 25 years);

 

(b)                       in respect of clause 4.1.2(j), including by way of first fixed
charge all Intellectual Property listed in Schedule 3 hereto (if any);

 

(c)                        in respect of clause 4.1.4(b) including by way of assignment the
Relevant Contracts set out in Schedule 4 hereto (if any), all rights and
remedies in connection with those Relevant Contracts and all proceeds and
claims arising therefrom.

 

2.3                                 Pursuant to the provisions of clause 36 of the Debenture, the
Company, as agent for itself and the existing Charging Companies, consents to
the accession of the Acceding Company to the Debenture on the terms of clauses
2.1 and 2.2 and agrees that the Debenture shall after the date of this
Supplemental Deed be read and construed as if the Acceding Company had been
named in the Debenture as a Charging Company.

 

3.                                      INTERPRETATION

 

This
Supplemental Deed shall be read as one with the Debenture, so that all
references in the Debenture to “this Deed”, and
similar expressions shall include references to this Supplemental Deed.

 

4.                                      COUNTERPARTS

 

This Supplemental
Deed may be executed in any number of counterparts, and this has the same
effect as if the signatures (and seals, if any) on the counterparts were on a
single copy of this Supplemental Deed.

 

32

 

5.                                      THIRD
PARTY RIGHTS

 

A person who
is not a party to this Supplemental Deed shall have no right under the
Contracts (Rights of Third Parties) Act 1999 to enforce any term of this
Supplemental Deed.  This clause does not
affect any right or remedy of any person which exists, or is available,
otherwise than pursuant to that Act.

 

6.                                      GOVERNING
LAW

 

The provisions of clause 40 of the Debenture shall apply with any
necessary changes to this Supplemental Deed as if they were set out in full in
this Supplemental Deed.

 

IN WITNESS of which this
Supplemental Deed has been duly executed by the Company and the Acceding
Company as a deed and duly executed by the Security Trustee and has been
delivered on the date written at the beginning of this Supplemental Deed.

 

SCHEDULE 1

 

The Acceding Company

 

 

	
  Company name

  	
   

  	
  Company number

  
	
  

  	
   

  	
  

  

 

SCHEDULE 2

 

Details of Registered Land

 

•

 

Details of Unregistered Land

 

•

 

 

SCHEDULE 3

 

Intellectual Property

 

•

 

 

SCHEDULE 4

 

Relevant Contracts

 

•

 

33

 

THE CHARGING COMPANIES

 

Executed as a deed by

 

PIPE ACQUISITION LIMITED

 

	
  acting by

  	
  K A COCKBURN

  	
    Director

  
	
   

  	
   

  
	
  and

  	
  DANIEL J O'LEARY

  	
    Director/Secretary

  
				

 

 

Executed as a deed by

 

MURRAY INTERNATIONAL METALS LIMITED

 

	
  acting by

  	
  K A COCKBURN

  	
    Director

  
	
   

  	
   

  
	
  and

  	
  DAVID KEMP

  	
    Director/Secretary

  
				

 

 

Executed as a deed by

 

PIPE ACQUISITION FINANCE PLC

 

	
  acting by

  	
  K A COCKBURN

  	
    Director

  
	
   

  	
   

  
	
  and

  	
  DANIEL J O'LEARY

  	
    Director/Secretary

  
				

 

 

Executed as a deed by

 

THE BANK OF NEW YORK
acting in its capacity as Security
Trustee for

itself and each of the Secured Parties

acting by

 

	
  CHARLOTTE FRICKER

  	
    Authorised Signatory ASSISTANT
  VICE PRESIDENT

  
	
  in the presence of this witness

  
	
   

  
	
  EMMA WILKES

  	
    Signature

  	
   

  
	
   

  	
   

  	
   

  
	
  EMMA WILKES

  	
    Name

  	
   

  

 

34Exhibit 4.7

 

Dated 25
January 2006

 

 

MURRAY INTERNATIONAL METALS PTE. LIMITED

as
Chargor

 

 

In
favour of

 

 

THE
BANK OF NEW YORK

 

as
Security Trustee

 

 

 

DEBENTURE

 

 

 

This
Debenture is subject to an intercreditor agreement dated December 16, 2005
between, amongst others, The Bank of New York and The Governor and Company of
the Bank of Scotland and the Obligors party thereto, as supplemented by a Deed
of Accession, dated the date hereof, among The Bank of New York and The
Governor and Company of the Bank of Scotland and Murray International Metals
Pte Limited.

 

 

CONTENTS

 

	
  CLAUSE

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Definitions And Interpretation

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Payment Of Secured Obligations

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Fixed Charges, Assignments And
  Floating Charge

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Crystallisation Of Floating Charge

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Perfection Of Security

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Further Assurance

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  Negative Pledge And Disposals

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  Investments

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  Accounts

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  Monetary Claims

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  Insurances

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
  Real Property

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
  General Undertakings

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
  Enforcement Of Security

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
  Extension And Variation Of The
  Conveyancing And Law Of Property Act, Chapter 61 Of Singapore

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
  Appointment Of Receiver

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
  Powers Of Receiver

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
  Application Of Monies

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
  Protection Of Purchasers

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
  Power Of Attorney

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  21.

  	
  Effectiveness Of Security

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  22.

  	
  Release Of Security

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  23.

  	
  Subsequent Liens

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  24.

  	
  Currency Indemnity

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  25.

  	
  Assignment

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  26.

  	
  Notices

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  27.

  	
  Expenses, Stamp Taxes And Indemnity

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  28.

  	
  Payments Free Of Deduction

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  29.

  	
  Discretion And Delegation

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  30.

  	
  Counterparts

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  31.

  	
  Governing Law

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  32.

  	
  Jurisdiction

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  33.

  	
  Amendments

  	
   

  	
  21

  

 

 

	
  34.

  	
  Contracts (Rights Of Third Parties)
  Act

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule 1

  	
  FORM OF NOTICE OF ASSIGNED ACCOUNT

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule 2

  	
  FORM OF NOTICE OF ASSIGNMENT OF INSURANCE POLICY

  	
   

  	
  25

  
					

 

 

THIS DEBENTURE is made on [                                   ]

 

Between:

 

(1)           MURRAY
INTERNATIONAL METALS PTE. LIMITED (Company No. 200201097M), a company incorporated in the Republic of Singapore with its registered
office at No. 438 Alexandra Road #04-01, Alexandra Point, Singapore 119958 (the
“Chargor”); and

 

(2)           THE BANK OF NEW YORK, as agent and security trustee for itself and the other
Secured Parties (the “Security Trustee”).

 

WHEREAS:

 

(A)          Pursuant
to an Indenture dated 16 December 2005 made by and among (1) Pipe Acquisition Finance
Plc (the “Issuer”) (2) Pipe Acquisition Limited as Guarantor (as defined
therein) (3) Murray International Metals Limited as Guarantor, and (4) The Bank
of New York, as Trustee and Collateral Agent (as defined) (as supplemented by a
Supplemental Indenture, dated the date hereof, between the Chargor, the Issuer,
Pipe Acquisition Limited, Murray International Metals Limited and  The Bank of New York, as Trustee and
Collateral Agent (as defined in the Indenture) (the “Indenture”)) the Issuer
issued $130,000,000 in aggregate principal amount of senior secured floating
rate notes due 2010 upon the terms and subject to the conditions of the Indenture
Documents.

 

(B)          The Chargor has (after
giving due consideration to the terms and conditions of the Indenture Documents)
agreed to enter into this Debenture to create the security expressed to be
created by this Debenture as a continuing security for the payment and
discharge of the Secured Debt (as defined below).

 

IT IS AGREED as follows:

 

1.           DEFINITIONS AND INTERPRETATION

 

1.1         Definitions

 

“Account” means any account and any credit
balance from time to time on any account opened or maintained by the Chargor
with any financial institution (and any replacement, sub-division or
sub-account of that account) and all Related Rights.

 

“Assigned Accounts” means the Claims Account and any Account
that may from time to time be identified in writing as an Assigned Account by
the Security Trustee, except that the Claims Account shall not be an Assigned
Account until after the giving of the notice under Clause 4.1 or the occurrence
of any of the events under Clause 4.2.

 

“Charging Companies” means the Chargor, the Issuer, Pipe Acquisition Limited, Murray
International Metals Limited and any member of the group which accedes to the
terms of any Security Agreement.

 

“Charged Property” means all the assets of the Chargor which
from time to time are the subject of the security created or expressed to be
created in favour of the Security Trustee by or pursuant to this Debenture.

 

“Claims Account” means the Account with account numbers 260-322532-179 (US$),
141-803619-001 (S$), 260-322532-178 (GBP), 260-322532-180 (EUR), 260-322532-181
(AUD), 260-322532-182 (NZ) and 260-322532-183 (THB), account name Murray
International Metals Pte. Limited (and any renewal or re-designation of such
account) maintained by the Chargor with The Hongkong and Shanghai Banking
Corporation,

 

1

 

Collyer Quay
Branch, Singapore into which, inter alia, the proceeds of the getting in or
realisation of the Monetary Claims are to be paid.

 

“Collateral Rights” means all rights, powers and remedies of
the Security Trustee provided by or pursuant to this Debenture or by law.

 

 “Guaranty” means
the guaranty of the Chargor pursuant to the Indenture and the Supplemental
Indenture, dated the date hereof.

 

“Holders” means the Holders of the Notes.

 

“Indenture” has the meaning set forth in the recitals to this Debenture;

 

“Indenture Documents” means, collectively, the Indenture, the Notes, the Guaranty, the Security
Agreement and this Debenture and includes any and each other agreement or
instrument supplementing or amending any of such documents.

 

“Insurance Policy” means any policy of insurance (including
life insurance or assurance) held by or written in favour of the Chargor or in
which the Chargor may from time to time have an interest.

 

“Intellectual Property” means any patents, trade marks,
service marks, designs, business names, copyrights, design rights, moral
rights, inventions, confidential information, know-how and other intellectual
property rights and interests, whether registered or unregistered, the benefit
of all applications and rights to use such assets and all Related Rights.

 

“Investments” means any stocks, shares, debentures,
securities, certificates of deposit, and other investments, assets, rights or
interests (including all warrants, options and other rights to subscribe or
acquire any of the investments described above), in each case, whether held
directly by or to the order of the Chargor or by any nominee, custodian,
trustee, fiduciary or clearance system on its behalf and all Related Rights
(including all rights against any such nominee, custodian, trustee, fiduciary
or clearance system).

 

“Monetary Claims” means any book and other debts, monetary
claims, credit sales receivables and other receivables owing to the Chargor and
any proceeds thereof (including any claims or sums of money deriving from or in
relation to any Intellectual Property, any Investment, the proceeds of any
Insurance Policy, any court order, award or judgment, any contract or agreement
to which the Chargor is a party and any other assets, property, rights or
undertaking of the Chargor).

 

“Notes” means the notes issued by the Issuer pursuant to the Indenture.

 

“Notice of Assignment” means a notice of assignment in
substantially the form set out in Schedule 1 in respect of the Assigned
Accounts, and in substantially the form set out in Schedule 2 in respect of any
Insurance Policy or such other form as may be specified by the Security
Trustee.

 

“Property Act” means the Conveyancing and Law of Property
Act, Chapter 61 of Singapore.

 

“Real Property” means:

 

(a)             any freehold, leasehold
or immovable property; and

 

2

 

(b)            any buildings, fixtures,
fittings, fixed plant or machinery from time to time situated on or forming
part of such freehold or leasehold property,

 

and
includes all Related Rights.

 

“Receiver” means a receiver or receiver and manager or
judicial manager of the whole or any part of the Charged Property.

 

“Related Rights” means, in relation to any asset,

 

(a)             the proceeds of sale of
any part of that asset;

 

(b)            all rights under any
licence, agreement for sale or agreement for lease in respect of that asset;

 

(c)             all rights, benefits,
claims, contracts, warranties, remedies, security, indemnities or covenants for
title in respect of that asset; and

 

(d)            any monies and proceeds
paid or payable in respect of that asset.

 

“Secured Debt” means all present and future liabilities and
obligations (whether actual or contingent and whether owed jointly or severally
or in any other capacity whatsoever) which now or hereafter may become due and
owing by, any Charging Company under or pursuant to the Indenture Documents.

 

“Secured Obligations” means all obligations covenanted to be
discharged by the Chargor in Clause 2.1 (Covenant to Pay)
of this Debenture.

 

“Secured Parties” means each of The Bank of New York for itself and as collateral
agent for and on behalf of the Holders and the Holders (and “Secured Party”
means either of them).

 

“Security Agreement” has the meaning given to that term in
the Indenture and includes any and each other agreement or instrument
supplementing or amending any of such documents.

 

“Supplemental Indenture” means the supplemental indenture, dated the date hereof, between the
Chargor, the Issuer, Pipe Acquisition Limited, Murray International Metals
Limited and The Bank of New York, as Trustee and Collateral Agent.

 

“Tangible Moveable Property” means any plant, machinery,
office equipment, computers, vehicles and other chattels (excluding any for the
time being forming part of the Chargor’s stock in trade or work in progress)
and all Related Rights.

 

1.2         Interpretation

 

In this
Debenture:

 

1.2.1          The
Indenture Documents: All terms and references used
in this Debenture and which are defined or construed in the Indenture Documents
but are not defined or construed in this Debenture shall have the same meaning
and construction in this Debenture. Any reference in this Debenture to an
Indenture Document is to that Indenture Document as amended, modified or

 

3

 

supplemented
from time to time and includes any document which amends, modifies or
supplements that Indenture Document.

 

1.2.2          This
Debenture:
Except to the extent that the context otherwise requires, any reference to “this
Debenture” includes this Debenture as from time to time amended, modified or
supplemented and any document which is supplemental hereto or which is
expressed to be collateral herewith or which is entered into pursuant to or in
accordance with the terms hereof.

 

1.2.3          Headings
and Clauses: The headings in this Debenture are inserted for convenience only and
shall be ignored in construing this Debenture. Unless the context otherwise
requires, words denoting the singular number only shall include the plural and vice versa. References to a statute shall be deemed to be
references to that statute as from time to time amended or re-enacted.
References to “Clauses” are to be construed as references to the clauses of
this Debenture. Any reference to a sub-Clause, a paragraph or a sub-paragraph
is to a sub-Clause, or a paragraph or a sub-paragraph of the Clause in which
such reference appears.

 

2.           PAYMENT OF SECURED OBLIGATIONS

 

2.1         Covenant to Pay

 

The Chargor
hereby covenants with the Security Trustee that it shall pay and discharge the
Secured Debt in accordance with the terms of the Indenture Documents.

 

3.           FIXED CHARGES, ASSIGNMENTS AND
FLOATING CHARGE

 

3.1         Fixed Charges

 

The Chargor as
beneficial owner hereby charges and agrees to charge in favour of the Security
Trustee, as security for the payment and discharge of the Secured Obligations,
by way of first fixed charge (which so far as it relates to land in Singapore
vested in the Chargor at the date hereof shall, if reasonably required by the
Security Trustee, be perfected by the execution of a legal mortgage in the
prescribed form) all the Chargor’s right, title and interest from time to time
in and to each of the following assets:

 

3.1.1          Real Property;

 

3.1.2          Tangible Moveable Property;

 

3.1.3          Intellectual Property;

 

3.1.4          any goodwill and rights in
relation to the uncalled capital of the Chargor;

 

3.1.5          Investments;

 

3.1.6          all Monetary Claims other than
the monies and proceeds thereof that are subject to a floating charge under
Clause 3.3 and any claims which are otherwise subject to a fixed charge or
assignment (at law or in equity) pursuant to this Debenture and all Related
Rights;

 

3.1.7          all chattels hired, leased
or rented from the Chargor; by any other person, in each case together with the
benefit of the related hiring, leasing or rental contract and any

 

4

 

guarantee,
indemnity or security for the performance of the obligations of any person
under or in respect of such contracts;

 

3.1.8          the benefit of all licences,
warranties, consents and authorisations (statutory or otherwise) held in
connection with its business or the use of any of its assets and the right to recover
and receive all compensation which may be payable to it in respect of them; and

 

3.1.9          to the extent not
effectively assigned pursuant to Clause 3.2, those assigned assets.

 

3.2         Assignments

 

The Chargor as
beneficial owner hereby assigns and agrees to assign absolutely to the Security
Trustee as security for the payment and discharge of the Secured Obligations
all the Chargor’s right, title and interest from time to time in and to and all
benefits accrued and to accrue under each of the following assets:

 

3.2.1          the proceeds of any
Insurance Policy and all Related Rights; and

 

3.2.2          all rights and claims in
relation to any Assigned Account.

 

3.3         Floating Charge

 

The
Chargor hereby charges and agrees to charge in favour of the Security Trustee,
as security for the payment and discharge of the Secured Obligations, by way of
first floating charge all the Chargor’s right, title and interest from time to
time in and to each of the following assets:

 

(i)              the Accounts;

 

(ii)             the Claims Account;

 

(iii)            the Chargor’s stock in trade and work in progress;

 

(iv)            cash in hand; and

 

(v)             the whole of the Chargor’s undertaking and assets, present and
future, other than any assets validly and effectively charged or assigned
(whether at law or in equity) by way of fixed security under the laws of
Singapore, or of the jurisdiction in which that asset is situated, in favour of
the Security Trustee as security for the Secured Obligations.

 

4.           CRYSTALLISATION OF FLOATING
CHARGE

 

4.1         Crystallisation:  By Notice

 

The Security
Trustee may at any time by notice in writing to the Chargor convert the
floating charge created by Clause 3.3 (Floating Charge)
with immediate effect into a fixed charge as regards any property or assets
specified in the notice if:

 

4.1.1          an Event of Default has
occurred and is continuing; or

 

4.1.2          the Security Trustee
reasonably considers that any of the Charged Property may be in jeopardy or in
danger of being seized or sold pursuant to any form of legal process; or

 

5

 

4.1.3          the Security Trustee
reasonably considers that it is desirable in order to protect the priority of
the security.

 

4.2         Crystallisation:  Automatic

 

Notwithstanding
Clause 4.1 (Crystallisation: 
By Notice) and without prejudice to any law which may have a
similar effect, the floating charge will automatically be converted (without
notice) with immediate effect into a fixed charge as regards all the assets
subject to the floating charge if:

 

4.2.1          the Chargor creates or attempts
to create any lien (other than any encumbrance permitted under the Indenture
Documents) over any of the Charged Property; or

 

4.2.2          any person levies or
attempts to levy any distress, execution or other process against any of the
Charged Property; or

 

4.2.3          a resolution is passed or an
order is made for the winding-up, dissolution, judicial management or
re-organisation of the Chargor.

 

The
Security Trustee shall immediately notify the Chargor of the automatic
crystallisation of the floating charge under this Clause 4.2 once the Security
Trustee becomes aware of the same.

 

5.           PERFECTION OF SECURITY

 

5.1         Notices of Assignment

 

The Chargor
shall, upon a request by the Security Trustee, deliver to the Security Trustee
(or procure delivery of) appropriate Notices of Assignment duly executed by, or
on behalf of, the Chargor:

 

5.1.1          in respect of each Assigned
Account, promptly after such request or promptly upon the designation at any
time by the Security Trustee of any Account as an Assigned Account; and

 

5.1.2          in respect of each Insurance
Policy, promptly after such request or promptly upon the Chargor obtaining any
new or replacement Insurance Policy,

 

and in each
case shall use all reasonable endeavours to procure that each notice is
acknowledged by the relevant obligor or debtor of the Chargor pursuant to the
Assigned Account or Insurance Policy , such acknowledgement being in the form
attached to the relevant Notice of Assignment or, if this is not possible, in
such form as the Chargor and the Security Trustee may reasonably agree.

 

5.2         Real Property:  Delivery of Documents of Title

 

The Chargor
shall upon the request of the Security Trustee in respect of, and upon the
acquisition by the Chargor of any interest in any freehold, leasehold or other
immovable property, deliver (or procure delivery) to the Security Trustee of,
and the Security Trustee shall be entitled to hold and retain, all title deeds,
certificates of title and other documents of title relating to such property.

 

6

 

5.3         Lodgement or Registration of Caveats
and Documents

 

5.3.1          Without prejudice to any
right under this Debenture at law or in equity the Security Trustee shall be
entitled at any time to lodge or register at the Singapore Land Authority or
any other competent registry or authority, any caveat or caveats and other
documents or instruments against any Real Property that forms part of the
Charged Property as are required by the Security Trustee.

 

5.3.2          Without prejudice to any
provisions in this Debenture, in the case of any Real Property where separate
title has not been issued, the Chargor hereby covenants and undertakes with the
Security Trustee:

 

(a)       that when the Chargor shall be
in the position to call for the delivery of the title deed or other documents
of title to the Real Property and the transfer or other assurance of such Real
Property in favour of the Chargor, the Chargor will at once notify the Security
Trustee in writing;

 

(b)       that the Chargor shall at the
Chargor’s own expense obtain the grant to the Chargor of the transfer or
assurance or other document of title to the Real Property pursuant to the
contract for sale or sale agreement and upon such grant shall forthwith deliver
to the Security Trustee the said transfer or assurance or such other document
of title and shall at the Chargor’s expense procure and obtain, to the extent
possible, the necessary consent or permission from the vendor of the Real
Property or other competent authority or authorities for the Debenture hereby
created and any documents or instruments (as the case may be) and registration
thereof with the appropriate authority or authorities;

 

(c)       that as soon as the title deed
or other documents of title to the Real Property shall have been issued the
Chargor shall forthwith authorise and cause the same to be delivered to the
Security Trustee and shall perfect and complete any mortgage or other documents
or instruments in favour of the Security Trustee as may be reasonably required
by the Security Trustee; and

 

(d)       that if the Chargor shall
neglect or refuse to take delivery of and accept the title deed and/or the
transfer or other assurance of the Real Property pursuant to the terms of any
contract for sale or sale agreement in respect of such Real Property it shall
be lawful for the Security Trustee in the name of the Chargor or otherwise to
demand and receive the same from the vendor of such Real Property.

 

5.4         Registration of Intellectual Property

 

The Chargor
shall, if requested by the Security Trustee, execute all such documents and do
all acts that the Security Trustee may reasonably require to record the
interest of the Security Trustee in any registers relating to any registered
Intellectual Property that forms part of the Charged Property.

 

5.5         Indorsement of Security Interest

 

The Chargor
shall, whensoever requested by the Security Trustee and at the Chargor’s cost,
affix to such items of the Charged Property or indorse or cause to be indorsed
on any invoices or other documents which are evidence of, or which otherwise
relate to, any asset referred to in Clause 5.1, as the Security Trustee in each
case stipulates, labels, signs or memoranda in such form as the Security
Trustee shall require (but not so as to

 

7

 

impede or
restrict the normal use or operation thereof) referring or drawing attention to
the security constituted by or pursuant to this Debenture.

 

6.           FURTHER ASSURANCE

 

6.1         Further Assurance: General

 

The Chargor
shall promptly do all such acts or execute all such documents (including  assignments, transfers, mortgages, charges,
notices and instructions) as the Security Trustee may reasonably specify and on
terms not materially more onerous than those in this Debenture (and in such
form as the Security Trustee may reasonably require in favour of the Security
Trustee or its nominee(s)):

 

6.1.1          to perfect the security
created or intended to be created in respect of the Charged Property (which may
include the execution by the Chargor of a mortgage, charge or assignment over
all or any of the assets constituting, or intended to constitute, Charged
Property) or for the exercise of the Collateral Rights;

 

6.1.2          to confer on the Security
Trustee security over any property and assets of the Chargor located in any
jurisdiction outside Singapore equivalent or similar to the security intended
to be conferred by or pursuant to this Debenture; and/or

 

6.1.3          to facilitate the
realisation of the Charged Property.

 

6.2         Necessary Action

 

The Chargor
shall take all such action as is available to it (including making all filings
and registrations) as may be necessary for the purpose of the creation,
perfection, protection or maintenance of any security conferred or intended to
be conferred on the Security Trustee by or pursuant to this Debenture.

 

6.3         Consents

 

The Chargor
shall use its best endeavours to obtain (in form and content reasonably
satisfactory to the Security Trustee) as soon as possible any consents
necessary to enable the assets of the Chargor to be the subject of an effective
fixed charge or assignment pursuant to Clause 3 (Fixed
Charges, Assignments and Floating Charge).

 

7.           NEGATIVE PLEDGE AND DISPOSALS

 

7.1         Negative Pledge

 

The Chargor
undertakes that it shall not, at any time during the subsistence of this
Debenture, create or permit to subsist any lien or any other security interest
over all or any part of the Charged Property other than a Permitted Lien, other
security interest permitted pursuant to the Indenture Documents, or such
encumbrances permitted by the Security Trustee.

 

7.2         No Disposal of Interests

 

The Chargor
undertakes that it shall not (and shall not agree to) at any time during the
subsistence of this Debenture, except for any Asset Sale or other transfer or
disposition as permitted pursuant to the Indenture Documents or by this Clause 7:

 

7.2.1          execute any conveyance,
transfer, lease or assignment of, or other right to use or occupy, all or any
part of the Charged Property;

 

8

 

7.2.2          create any legal or
equitable estate or other interest in, or over, or otherwise relating to, all
or any part of the Charged Property;

 

7.2.3          (a) grant or vary, or accept
any surrender, or cancellation or disposal of, any lease, tenancy, licence,
consent or other right to occupy in relation to any of the Charged Property or
(b) allow any person any right to use or occupy or to become entitled to assert
any proprietary interest in, or right over, the Charged Property, which may, in
each case, adversely affect the value of any of the Charged Property or the
ability of the Security Trustee to exercise any of the Collateral Rights; or

 

7.2.4          assign or otherwise dispose
of any interest in any Account

 

8.           INVESTMENTS

 

8.1         Investments:  Payment of Calls

 

The Chargor
shall pay when due all calls or other payments which may be or become due in
respect of any of the Investments, and in any case of default by the Chargor in
such payment, the Security Trustee may, if it thinks fit, make such payment on
behalf of the Chargor in which case any sums paid by the Security Trustee shall
constitute Secured Obligations.

 

8.2         Investments:  Delivery of Documents of Title

 

After the
occurrence of an Event of Default the Chargor shall promptly on the request of
the Security Trustee, deliver (or procure delivery) to the Security Trustee,
and the Security Trustee shall be entitled to retain, all of the Investments
and any certificates and other documents of title representing the Investments
together with any other document which the Security Trustee may reasonably
request (in such form and executed as the Security Trustee may reasonably
require) with a view to perfecting or improving its security over the
Investments or to registering any Investment in its name or the name of any
nominee(s).

 

8.3         Investments:  Exercise of Rights

 

The Chargor
shall not exercise any of its rights and powers in relation to any of the
Investments in any manner which, in the opinion of the Security Trustee, would
prejudice the value of, or the ability of the Security Trustee to realise, the
security created by this Debenture.

 

9.           ACCOUNTS

 

9.1         Accounts:  Notification and Variation

 

The Chargor,
during the subsistence of this Debenture:

 

9.1.1          shall promptly deliver to
the Security Trustee on the date of this Debenture (and, if any change occurs
thereafter, on the date thereof), details of each Account maintained by it with
any bank or financial institution; and

 

9.1.2          shall not, without the
Security Trustee ‘s prior written consent, permit or agree to any variation of
the rights attaching to any Account or close any Account.

 

9.2         Account:  Operation After a Default

 

After the
occurrence of an Event of Default and the Security Trustee has given the notice
under Clause 4.1, the Chargor shall not be entitled to receive, withdraw or
otherwise

 

9

 

transfer any
credit balance from time to time on any Account except with the prior consent
of the Security Trustee.

 

9.3         Assigned Accounts

 

The Security
Trustee shall, after the security created under this Debenture has become
enforceable under Clause 14.1, be entitled to exercise from time to time all
rights, powers and remedies held by it as assignee of the Assigned Accounts and
to: [

 

(a)       demand and receive all and any
monies due under or arising out of each Assigned Account; and

 

(b)       exercise all such rights as the
Chargor was then entitled to exercise in relation to such Assigned Account or
might, but for the terms of this Debenture, exercise.

 

10.         MONETARY CLAIMS

 

10.1       Dealing with Monetary Claims

 

The Chargor
shall not at any time during the subsistence of the Debenture, without the
prior written consent of the Security Trustee:

 

10.1.1                       deal with the Monetary Claims except by getting in and realising
them in a prudent manner and paying the proceeds of those Monetary Claims
promptly into the Claims Account; or

 

10.1.2                       factor or discount any of the Monetary Claims or enter into any
agreement for such factoring or discounting.

 

11.         INSURANCES

 

11.1       Insurance: Undertakings

 

The Chargor
shall at all times during the subsistence of this Debenture:

 

11.1.1                       keep the Charged Property insured in accordance with the terms of
the Indenture Documents if so required thereby;

 

11.1.2                       cause each insurance policy or policies relating to the Charged
Property other than any Insurance Policy which has been the subject of a Notice
of Assignment pursuant to Clause 5 (Perfection of Security)
to contain (in form and substance reasonably satisfactory to the Security
Trustee) an endorsement naming the Security Trustee as mortgagee (in the case
of property insurance) or additional insured (in the case of liability
insurance) in respect of all claims; and

 

11.1.3                       upon request by the Security Trustee, deposit copies of all
Insurance Policies relating to the Charged Property with the Security Trustee.

 

11.2       Insurance: Default

 

If the Chargor
defaults in complying with Clause 11.1 (Insurance:  Undertakings), the Security
Trustee may effect or renew any such insurance on such terms, in such name(s)
and in such amount(s) as it reasonably considers appropriate, and all monies
expended by the Security Trustee in doing so shall be reimbursed by the Chargor
to the Security Trustee on demand and shall carry interest from the date of
payment by the Security Trustee until reimbursed at the rate then applicable to
the Notes.

 

10

 

11.3       Application of Insurance Proceeds

 

All monies
received under any Insurance Policies relating to the Charged Property shall
(subject to the rights and claims of any person having prior rights thereto),
prior to the occurrence of an Event of Default, be applied in repairing,
replacing, restoring or rebuilding the property or assets damaged or destroyed;
after the security created under this Debenture has become enforceable under
Clause 14.1, the Chargor shall hold such monies upon trust for the Security
Trustee pending payment to the Security Trustee for application in accordance
with Clause 18 (Application of Monies) and the
Chargor waives any right it may have to require that any such monies are
applied in reinstatement of any part of the Charged Property.

 

12.         REAL PROPERTY

 

12.1       Property:  Notification

 

The Chargor
shall immediately notify the Security Trustee of any contract, conveyance,
transfer or other disposition for the acquisition by the Chargor (or its
nominee(s)) of any Real Property.

 

12.2       Lease Covenants

 

The Chargor
shall, in relation to any lease, agreement for lease or other right to occupy
to which all or any part of the Charged Property is at any time subject:

 

12.2.1                       pay the rents (if the lessee) and observe and perform in all
material respects the covenants, conditions and obligations imposed (if the
lessor) on the lessor or, (if the lessee) on the lessee; and

 

12.2.2                       not do any act or thing whereby any lease or other document which
gives any right to occupy any part of the Charged Property becomes or may
become subject to determination or any right of re-entry or forfeiture prior to
the expiration of its term.

 

12.3       General Property Undertakings

 

The Chargor
shall:

 

12.3.1                       so far as it is commercially reasonable, repair and keep (or cause
to be repaired and kept) in good working order and condition (ordinary wear and
tear excepted) all the Real Property at any time forming part of the Charged
Property;

 

12.3.2                       not at any time without the prior written consent of the Security
Trustee sever or remove any of the fixtures forming part of the Real Property
or any of the plant or machinery (other than stock in trade or work in
progress) on or in the Charged Property (except for the purpose of any
necessary repairs or replacement thereof); and

 

12.3.3                       comply with and observe and perform (a) all applicable requirements
of all planning and environmental legislation, regulations and bye-laws relating
to the Real Property, (b) any conditions attaching to any planning permissions
relating to or affecting the Real Property and (c) any notices or other orders
made by any planning, environmental or other public body in respect of all or
any part of the Real Property.

 

12.4       Entitlement to Remedy

 

If the Chargor
fails to comply with any of the undertakings contained in this Clause 10 (Real Property), the Security Trustee,
subject to the terms and conditions of the Indenture Documents, shall be
entitled (with such agents, contractors and others as it

 

11

 

sees fit), to
do such things as may be reasonably required to remedy such failure and all
monies spent by the Security Trustee in doing so shall be reimbursed by the
Chargor on demand with interest from the date of payment by the Security
Trustee until reimbursed at the rate then applicable to the Notes.

 

13.         GENERAL UNDERTAKINGS

 

13.1       Access

 

The Chargor
shall from time to time on request of the Security Trustee, furnish the
Security Trustee with such information as the Security Trustee may reasonably
require about the Chargor’s business and affairs, the Charged Property and its
compliance with the terms of this Debenture and the Chargor shall (but not more
than once on every Financial Year unless the Security Trustee reasonably
suspects a Default is continuing or likely to occur) permit the Security
Trustee, its representatives, professional advisers and contractors, free
access at all reasonable times and on reasonable notice to (a) inspect and take
copies and extracts from the books, accounts and records of the Chargor and (b)
to view the Charged Property (without becoming liable as mortgagee in
possession.

 

13.2       Relief of Obligations under Certain
Circumstances

 

The terms of this Debenture are
subject to the term of that certain Intercreditor Agreement (the “Intercreditor
Agreement”), dated as of December 16, 2005, by and among The Governor and the
Company of the Bank of Scotland, as agent and security trustee (the “Senior
Security Trustee”), and The Bank of New York, as trustee, collateral agent and
subordinated security trustee (the “Subordinated Security Trustee”) and certain
other parties thereto.  Notwithstanding
any contrary provision contained in this Debenture, if the Chargor receives an
instruction relating to the matters set forth in Sections 5 and 6 of this
Debenture from the Senior Security Trustee (a “Senior Security Trustee
Instruction”) and the Subordinated Security Trustee (a “Subordinated Security
Trustee Instruction”), and the Chargor reasonably believes that the
instructions set forth in such Senior Security Trustee Instruction and  Subordinated Security Trustee Instruction are
in conflict, it shall promptly notify both the Senior Security Trustee and the
Subordinated Security Trustee of such conflict and confirm in such notice that
it will comply with the terms of the Senior Security Trustee Instruction.  Following receipt of such notice by the
Senior Security Trustee and the Subordinated Security Trustee, the Chargor
shall comply with the terms of the Senior Security Trustee Instruction and
shall not be required to comply with the requirements of Subordinated Security
Trustee Instruction until the Discharge of the Senior Secured Debt (as defined
in the Intercreditor Agreement). Notwithstanding the foregoing, the Chargor
shall not be liable for the breach of the obligations set forth in the
Subordinated Security Trustee Instruction as a result of its compliance with
the Senior Security Trustee Instruction.

 

14.         ENFORCEMENT OF SECURITY

 

14.1       Enforcement

 

At any time
after the occurrence of an Event of Default which is continuing, this Debenture
shall be enforceable by the Security Trustee who may, subject to Article 6 of
the Indenture:

 

14.1.1        enforce all or any part of
that security (at the times, in the manner and on the terms it thinks fit) and
take possession of and hold or dispose of all or any part of the Charged
Property; and

 

12

 

14.1.2        whether or not it has
appointed a Receiver, exercise all or any of the powers, authorities and
discretions conferred by the Conveyancing and Law of Property Act, Chapter 61
of Singapore (as varied or extended by this Debenture) on mortgagees and by
this Debenture on any Receiver or otherwise conferred by law on mortgagees or
Receivers.

 

14.2       No Liability as Mortgagee in Possession

 

Neither the
Security Trustee nor any Receiver shall be liable to account as a mortgagee in
possession in respect of all or any part of the Charged Property or be liable
for any loss upon realisation or for any neglect, default or omission in
connection with the Charged Property to which a mortgagee in possession might
otherwise be liable.

 

15.         EXTENSION AND VARIATION OF THE
CONVEYANCING AND LAW OF PROPERTY ACT, CHAPTER 61 OF SINGAPORE

 

15.1       Extension of Powers

 

Section 25 of
the Property Act shall not restrict the exercise by the Security Trustee of the
statutory power of sale conferred on it by Section 24 of the Property Act (as
varied or extended by this Debenture), and the security constituted by or
pursuant to this Debenture shall become immediately exercisable and the
statutory power of sale and all other powers conferred by Section 24 of the
Property Act shall arise and may be exercised by the Security Trustee at any
time after the security created under this Debenture has become enforceable
under Clause 14.1 and the provisions of the Property Act relating to and
regulating the exercise of the said power of sale shall, so far as they relate
to the security constituted by or pursuant to this Debenture, be varied and
extended accordingly.

 

15.2       Restrictions

 

The Chargor
may not exercise any of the powers reserved to a mortgagor by Section 23 of the
Property Act or otherwise grant or agree to grant any lease or tenancy of the
Charged Property or any part thereof for a term exceeding three years or
surrender or accept or agree to accept a surrender of any lease or tenancy
thereof without the prior consent in writing of the Security Trustee except in
the ordinary course of business but the foregoing shall not be construed as a
limitation of the powers of any Receiver appointed under this Debenture and
being an agent of the Chargor. Such statutory powers shall be exercisable by
the Security Trustee at any time after the security created under this
Debenture has become enforceable under Clause 14.1 and, whether or not the
Security Trustee shall then be in possession of the premises proposed to be
leased, so as to authorise the Security Trustee to make a lease or agreement
for lease at a premium and for any length of term and generally without any
restriction on the kinds of leases and agreements for lease that the Security
Trustee may make and generally without the necessity for the Security Trustee
to comply with any restrictions imposed by the provisions of Section 23 of the
Property Act. The Security Trustee may delegate such powers to any person and
no such delegation shall preclude the subsequent exercise of such powers by the
Security Trustee itself or preclude the Security Trustee from making a
subsequent delegation thereof to some other person and any such delegation may
be revoked at any time.

 

15.3       Consolidation

 

The
restriction on the right of consolidating mortgage securities contained in
Section 21 of the Property Act shall not apply to this Debenture.

 

13

 

16.         APPOINTMENT OF RECEIVER

 

16.1       Appointment and Removal

 

After the security
created under this Debenture has become enforceable under Clause 14.1 or if
requested to do so by the Chargor, the Security Trustee may by deed or
otherwise (acting through an authorised officer of the Security Trustee), but
subject to Article 6 of the Indenture:

 

16.1.1        appoint one or more persons to
be a Receiver of the whole or any part of the Charged Property;

 

16.1.2        remove (so far as it is
lawfully able) any Receiver so appointed; and

 

16.1.3        appoint another person(s) as
an additional or replacement Receiver(s).

 

16.2       Capacity of Receivers

 

Each person appointed
to be a Receiver pursuant to Clause 16.1 (Appointment and Removal)
shall be:

 

16.2.1        entitled to act individually
or together with any other person appointed or substituted as Receiver;

 

16.2.2        for all purposes shall be
deemed to be the agent of the Chargor which shall be solely responsible for his
acts, defaults and liabilities and for the payment of his remuneration and no
Receiver shall at any time act as agent for the Security Trustee; and

 

16.2.3        entitled to remuneration for
his services at a rate to be fixed by the Security Trustee from time to time
(without being limited to the maximum rate specified by the Property Act).

 

16.3       Statutory Powers of Appointment

 

The powers of
appointment of a Receiver shall be in addition to all statutory and other
powers of appointment of the Security Trustee under the Property Act (as
extended by this Debenture) or otherwise and such powers shall remain
exercisable from time to time by the Security Trustee in respect of any part of
the Charged Property.

 

17.         POWERS OF RECEIVER

 

Every Receiver
shall (subject to any restrictions in the instrument appointing him but
notwithstanding any winding-up or dissolution of the Chargor) have and be
entitled to exercise, in relation to the Charged Property (and any assets of the
Chargor which, when got in, would be Charged Property) in respect of which he
was appointed, and as varied and extended by the provisions of this Debenture
(in the name of or on behalf of the Chargor or in his own name and, in each
case, at the cost of the Chargor):

 

17.1.1        all the powers conferred by
the Property Act on mortgagors and on mortgagees in possession and on receivers
appointed under the Property Act;

 

17.1.2        all the powers of a receiver
appointed under the Companies Act, Chapter 50 of Singapore;

 

17.1.3        all the powers and rights of
an absolute owner and power to do or omit to do anything which the Chargor
itself could do or omit to do; and

 

14

 

17.1.4        the power to do all things
(including bringing or defending proceedings in the name or on behalf of the
Chargor) which seem to the Receiver to be incidental or conducive to (a) any of
the functions, powers, authorities or discretions conferred on or vested in him
or (b) the exercise of the Collateral Rights (including realisation of all or
any part of the Charged Property) or (c) bringing to his hands any assets of
the Chargor forming part of, or which when got in would be, Charged Property.

 

18.         APPLICATION OF MONIES

 

All monies
received or recovered by the Security Trustee or any Receiver pursuant to this
Debenture or the powers conferred by it shall, subject to the provisions of the
Intercreditor Agreement, be applied in the manner provided in Section 6.10 of
the Indenture.

 

19.         PROTECTION OF PURCHASERS

 

19.1       Consideration

 

The receipt of
the Security Trustee or any Receiver shall be conclusive discharge to a
purchaser and, in making any sale or disposal of any of the Charged Property or
making any acquisition, the Security Trustee or any Receiver may do so for such
consideration, in such manner and on such terms as it thinks fit.

 

19.2       Protection of Purchasers

 

No purchaser
or other person dealing with the Security Trustee or any Receiver shall be
bound to inquire whether the right of the Security Trustee or such Receiver to
exercise any of its powers has arisen or become exercisable or be concerned
with any propriety or regularity on the part of the Security Trustee or such
Receiver in such dealings.

 

20.         POWER OF ATTORNEY

 

20.1       Appointment and Powers

 

The Chargor by
way of security irrevocably appoints the Security Trustee and any Receiver
severally to be its attorney and in its name, on its behalf and as its act and
deed to execute, deliver and perfect all documents and do all things which the
attorney may consider to be required or desirable for:

 

20.1.1        carrying out any obligation
imposed on the Chargor by this Debenture (including the execution and delivery
of any deeds, charges, assignments or other security and any transfers of the
Charged Property); and

 

20.1.2        enabling the Security Trustee
and any Receiver to exercise, or delegate the exercise of, any of the rights,
powers and authorities conferred on them by or pursuant to this Debenture or by
law (including, after the security created under this Debenture has become
enforceable, the exercise of any right of a legal or beneficial owner of the
Charged Property).

 

20.2       Ratification

 

The Chargor
shall ratify and confirm all things done and all documents executed by any
attorney in the exercise or purported exercise of all or any of his powers.

 

15

 

21.         EFFECTIVENESS OF SECURITY

 

21.1       Continuing Security

 

The security
created by or pursuant to this Debenture shall remain in full force and effect
as a continuing security for the Secured Obligations unless and until the
Secured Obligations have been discharged in full to the satisfaction of the
Security Trustee.

 

21.2       Cumulative Rights

 

The security
created by or pursuant to this Debenture and the Collateral Rights shall be
cumulative, in addition to and independent of every other security which the
Security Trustee may at any time hold for the Secured Obligations or any other
obligations or any rights, powers and remedies provided by law.  No prior security held by the Security
Trustee over the whole or any part of the Charged Property shall merge into the
security constituted by this Debenture. 
Where any part of the Charged Property is, pursuant to a separate mortgage,
assignment, charge or other security document (“Specific Security Document”) executed by the Chargor, subject
to a security interest created specifically in respect of that part of the
Charged Property in favour of the Security Trustee, and there is any
inconsistency or contradiction between the terms of this Debenture and the
terms of that Specific Security Document, the terms of the Specific Security
Document shall prevail in so far as they relate to that part of the Charged
Property.  For the avoidance of doubt,
Clause 3.3 (Floating Charge) of
this Debenture shall create a first floating charge over any asset which,
though purporting to be, is not, or is held to be not, validly and effectively
charged or assigned pursuant to a Specific Security Document and Clause 3.3 (Floating Charge) of this Debenture is not
regarded as an inconsistency or contradiction with any other Specific Security
Document.

 

21.3       No Prejudice

 

The security
created by or pursuant to this Debenture and the Collateral Rights shall not be
prejudiced by any unenforceability or invalidity of any other agreement or
document or by any time or indulgence granted to the Chargor or any other
person, or the Security Trustee or by any variation of the terms of the trust
upon which the Security Trustee holds the security or by any other thing which
might otherwise prejudice that security or any Collateral Right.

 

21.4       Remedies and Waivers

 

No failure on
the part of the Security Trustee to exercise, or any delay on its part in
exercising, any Collateral Right shall operate as a waiver thereof, nor shall
any single or partial exercise of any Collateral Right preclude any further or
other exercise of that or any other Collateral Right.

 

21.5       No Liability

 

None of the
Security Trustee, its nominee(s) or any Receiver shall be liable by reason of
(a) taking any action permitted by this Debenture or (b) any neglect or default
in connection with the Charged Property or (c) taking possession of or
realising all or any part of the Charged Property, except in the case of gross
negligence or wilful misconduct upon its part.

 

21.6       Partial Invalidity

 

If, at any
time, any provision of this Debenture is or becomes illegal, invalid or
unenforceable in any respect under the law of any jurisdiction, neither the
legality, validity or enforceability of the remaining provisions of this
Debenture nor of such provision under the laws of any other jurisdiction shall
in any way be affected or impaired thereby and, if any part of the security
intended to be created by or pursuant to this

 

16

 

Debenture is
invalid, unenforceable or ineffective for any reason, that shall not affect or
impair any other part of the security.

 

21.7       Chargor’s
Obligations

 

The
obligations of the Chargor and the Collateral Rights shall not be discharged,
impaired or otherwise affected by:

 

21.7.1        any winding-up, dissolution,
administration or re-organisation of or other change in the Chargor or any
Obligor;

 

21.7.2        any of the Secured Debt being
at any time illegal, invalid, unenforceable or ineffective;

 

21.7.3         any time or other indulgence
being granted to the Chargor or any Obligor;

 

21.7.4        any amendment, variation,
waiver or release of any of the Secured Debt;

 

21.7.5        any failure to take or failure
to realise the value of any other collateral in respect of the Secured Debt or
any release, discharge, exchange or substitution of any such collateral; or

 

21.7.6        any other act, event or
omission which but for this provision would or might operate to impair,
discharge or otherwise affect the obligations of the Chargor under this
Debenture.

 

22.         RELEASE OF SECURITY

 

22.1       Redemption of Security

 

Upon the
Secured Debt being irrevocably discharged, in full and the Security Trustee not
being under any further actual or contingent obligation to make advances or
provide other financial accommodation to the Chargor or any other person under the
Indenture Documents, the Security Trustee shall, at the request and cost of the
Chargor, release and cancel the security constituted by this Debenture and
procure the reassignment to the Chargor of the property and assets assigned to
the Security Trustee pursuant to this Debenture, in each case subject to Clause
22.2 (Avoidance of Payments) and without
recourse to, or any representation or warranty by, the Security Trustee or any
of its nominees.

 

22.2       Avoidance of Payments

 

If the
Security Trustee considers that any amount paid or credited to it is capable of
being avoided or reduced by virtue of any bankruptcy, insolvency, liquidation
or similar laws, the liability of the Chargor under this Debenture and the
security constituted hereby shall continue and such amount shall not be
considered to have been irrevocably paid.

 

23.         SUBSEQUENT LIENS

 

If the
Security Trustee at any time receives or is deemed to have received notice of
any subsequent lien affecting all or any part of the Charged Property or any
assignment or transfer of the Charged Property which is prohibited by the terms
of this Debenture or the Indenture Documents, all payments thereafter by or on
behalf of the Chargor to the Security Trustee shall be treated as having been
credited to a new account of the Chargor and not as having been applied in
reduction of the Secured Obligations as at the time when the Security Trustee
received or is deemed to have received such notice.

 

17

 

24.         CURRENCY INDEMNITY

 

If any sum (a “Sum”) owing by the Chargor under this Debenture or any order
or judgment given or made in relation to this Debenture has to be converted
from the currency (the “First Currency”)
in which such Sum is payable into another currency (the “Second
Currency”) for the purpose of:

 

24.1.1        making or filing a claim or
proof against the Chargor;

 

24.1.2        obtaining an order or judgment
in any court or other tribunal;

 

24.1.3        enforcing any order or
judgment given or made in relation to this Debenture; or

 

24.1.4        applying the Sum in
satisfaction of any of the Secured Obligations,

 

the Chargor
shall, as a separate and independent obligation and within three Business Days
of demand, indemnify the Security Trustee from and against any loss reasonably suffered
or incurred as a result of any discrepancy between (a) the rate of exchange
used for such purpose to convert such Sum from the First Currency into the
Second Currency and (b) the rate or rates of exchange available to the Security
Trustee at the time of such receipt of such Sum, and shall forthwith within
three Business Days of demand pay to the Security Trustee an amount in the
First Currency equal to any deficit suffered by the Security Trustee if the
amount in the Second Currency received by the Security Trustee (when converted
into the First Currency at a market rate in the usual course of its business)
is less than the amount of the Sum in the First Currency.

 

25.         ASSIGNMENT

 

Subject to the
Indenture Documents, the Security Trustee may assign and transfer all or any of
its rights and obligations under this Debenture.  The Security Trustee shall be entitled to
disclose such information concerning the Chargor and this Debenture as the
Security Trustee considers appropriate to any actual or proposed direct or
indirect successor or to any person to whom information may be required to be
disclosed by any applicable law.

 

26.         NOTICES

 

The provisions
of Section 11.02 (Notices) of the
Indenture Documents shall apply to this Debenture. The initial fax number,
address and persons designated by the parties respectively to receive any
demand, notice or other communication are set out below:

 

	
  The
  Chargor

  	
  :

  	
  Murray
  International Metals Pte Limited

  
	
   

  	
   

  	
  31
  Tuas Link Road

  
	
   

  	
   

  	
  Singapore
  637469

  
	
   

  	
   

  	
   

  
	
  Fax
  number

  	
  :

  	
  +65
  5223 3336

  
	
  Attention

  	
  :

  	
  Managing
  Director

  
	
   

  	
   

  	
   

  
	
  With
  a copy to

  	
  :

  	
  Murray
  International Metals Limited

  
	
   

  	
   

  	
  Murray
  Works

  
	
   

  	
   

  	
  Newbridge,
  Industrial Estate

  
	
   

  	
   

  	
  Newbridge,
  Midlothian EH28 8PJ

  
	
   

  	
   

  	
  United
  Kingdom

  

 

18

 

	
  Fax
  Number

  	
  :

  	
  +44
  131 333 4477

  
	
  Attention

  	
  :

  	
  Managing
  Director

  
	
   

  	
   

  	
   

  
	
  The
  Security Trustee

  	
  :

  	
  The
  Bank of New York

  
	
   

  	
   

  	
  One
  Canada Square

  
	
   

  	
   

  	
  London

  
	
   

  	
   

  	
  E14
  5AL

  
	
   

  	
   

  	
  England

  
	
  Fax
  number

  	
  :

  	
  +44
  (0) 207 964 6399

  
	
  Attention

  	
  :

  	
  Corporate
  Trust Administration

  

 

27.         EXPENSES, STAMP TAXES AND
INDEMNITY

 

27.1       Expenses

 

The Chargor
shall, from time to time on demand of the Security Trustee, reimburse the
Security Trustee for all the costs and expenses (including legal fees) on a
full indemnity basis together with any Goods and Services Tax thereon incurred
by it in connection with:

 

27.1.1        the negotiation, preparation
and execution of this Debenture, the completion of the transactions and the
perfection of the security contemplated in this Debenture; and

 

27.1.2        the exercise, preservation
and/or enforcement of any of the Collateral Rights or the security contemplated
by this Debenture or any proceedings instituted by or against the Security
Trustee as a consequence of taking or holding the security or of enforcing the
Collateral Rights,

 

and
shall carry interest from the date of such demand until so reimbursed at the
rate and on the basis as provided in the Indenture Documents.

 

27.2       Stamp Taxes

 

The Chargor
shall pay all stamp, registration and other taxes to which this Debenture, the
security contemplated in this Debenture or any judgment given in connection
with it is or at any time may be subject and shall, from time to time,
indemnify the Security Trustee on demand against any liabilities, costs, claims
and expenses resulting from any failure to pay or delay in paying any such tax.

 

27.3       Indemnity

 

The Chargor
shall, notwithstanding any release or discharge of all or any part of the
security, indemnify the Security Trustee, its agents, attorneys and any
Receiver (absent any negligence or wilful misconduct) against any action,
proceeding, claims, losses, liabilities and costs which it may sustain as a
consequence of any breach by the Chargor of the provisions of this Debenture,
the exercise or purported exercise of any of the rights and powers conferred on
them by this Debenture or otherwise.

 

28.         PAYMENTS FREE OF DEDUCTION

 

All payments
to be made to the Security Trustee under this Debenture shall be made free and
clear of and without deduction for or on account of tax unless the Chargor is
required to make such payment subject to the deduction or withholding of tax,
in which case the sum payable by the Chargor in respect of which such deduction
or withholding is required to be made shall be increased to the extent
necessary to ensure that, after

 

19

 

the making of
such deduction or withholding, the person on account of whose liability to tax
such deduction or withholding has been made receives and retains (free from any
liability in respect of any such deduction or withholding) a net sum equal to
the sum which it would have received and so retained had no such deduction or
withholding been made or required to be made.

 

29.         DISCRETION AND DELEGATION

 

29.1       Discretion

 

Any liberty or
power which may be exercised or any determination which may be made hereunder
by the Security Trustee or any Receiver may be exercised or made in its
absolute and unfettered discretion without any obligation to give reasons.

 

29.2       Delegation

 

Each of the
Security Trustee and any Receiver shall have full power to delegate (either
generally or specifically) the powers, authorities and discretions conferred on
it by this Debenture (including the power of attorney) on such terms and
conditions as it shall see fit which delegation shall not preclude either the
subsequent exercise of such power, authority or discretion by the Security
Trustee or the Receiver itself or any subsequent delegation or revocation
thereof.

 

30.         COUNTERPARTS

 

This Debenture
may be executed in any number of counterparts, all of which taken together
shall constitute one and the same instrument.

 

31.         GOVERNING LAW

 

This Debenture
shall be governed by and construed in accordance with Singapore law.

 

32.         JURISDICTION

 

32.1       Singapore Courts

 

The courts of
Singapore have exclusive jurisdiction to settle any disputes (a “Dispute”) arising out of, or connected with this Debenture
(including a dispute regarding the existence, validity or termination of this
Debenture or the consequences of its nullity).

 

32.2       Convenient Forum

 

The parties
agree that the courts of Singapore are the most appropriate and convenient
courts to settle Disputes between them and, accordingly, that they will not
argue to the contrary.

 

32.3       Exclusive Jurisdiction

 

This Clause 32.3
(Jurisdiction) is for the benefit of the
Security Trustee only.  As a result and
notwithstanding Clause 32.1 (Singapore Courts),
it does not prevent the Security Trustee from taking proceedings relating to a
Dispute in any other courts with jurisdiction. 
To the extent allowed by law the Security Trustee may take concurrent
proceedings in any number of jurisdictions.

 

20

 

33.         AMENDMENTS

 

Any term of
this Debenture may be amended only in accordance with Article 9 of the Indenture.

 

34.         CONTRACTS (RIGHTS OF THIRD
PARTIES) ACT

 

This Debenture
does not create any right under the Contracts (Rights of Third Parties),
Chapter 53B of Singapore, which is enforceable by any person who is not a party
to it.

 

21

 

SCHEDULE 1

 

FORM OF NOTICE OF ASSIGNED ACCOUNT

 

To:          [•]

 

Date: [•]

 

Dear Sirs,

 

We hereby give
you notice that by a debenture (the “Debenture”)
dated [•] between (1)
ourselves and (2) The Bank of New York as Security Trustee, we have assigned
and charged to the Security Trustee all of our right, title and interest in and
to account number [•], account name [•] (including any renewal or re-designation thereof) and all monies
standing to the credit of that account from time to time (the “Assigned Account”).

 

With effect
from the date of your receipt of this notice we hereby irrevocably authorise
and instruct you:

 

(a)         to disclose to the Security Trustee without any reference to or
further authority from us and without any enquiry by you as to the
justification of such disclosure, such information relating to the Assigned
Account and the sums therein as the Security Trustee may at any time and from
time to time request;

 

(b)         to hold all sums from time to time standing to the credit in the
Assigned Account to the order of the Security Trustee;

 

(c)         to pay or release all or any part of the sums from time to time
standing to the credit of the Assigned Account in accordance with the written
instructions of the Security Trustee at any time or times; and

 

(d)         to comply with the terms of any written notice or instructions in
any way relating to, or purporting to relate to, the Debenture, the sums standing
to the credit of the Assigned Account from time to time or the debts
represented thereby which you receive at any time from the Security Trustee
without any reference to or further authority from us and without any enquiry
by you as to the justification for or validity of such notice or instruction.

 

Please note
that:

 

(i)          all rights, interests and
benefits whatsoever accruing to or for the benefit of ourselves arising from
the Assigned Account belong to the Security Trustee by way of security;

 

(ii)         we are not permitted to
withdraw any amount from the Assigned Account without the prior written consent
of the Security Trustee; and

 

(iii)        these instructions are not to
be revoked or varied without the prior written consent of the Security Trustee.

 

Please accept
this notice by signing the enclosed acknowledgement and returning it to the
Security Trustee at One Canada Square, London E14 5AL, England marked for the
attention of Corporate Trust Administration.

 

22

 

	
  Yours
  faithfully

  
	
   

  
	
   

  
	
   

  	
   

  
	
  for and on
  behalf of

  
	
  MURRAY
  INTERNATIONAL METALS PTE LIMITED

  

 

23

 

[on copy only]

 

To:          The
Bank of New York

One Canada Square

London

E14 5AL

England, as
Security Trustee

 

Attn : Corporate Trust Administration

 

At the request
of MURRAY INTERNATIONAL METALS PTE LIMITED, we
acknowledge receipt of the notice of assignment and charge, on the terms
attached, in respect of the Assigned Account (as described in those
terms).  We confirm that:

 

(i)          we accept the instructions
and authorisations contained in the notice of assignment and charge, and we
undertake to act in accordance with the terms of that notice;

 

(ii)         no fees or periodic charges
are payable in respect of the Assigned Account and there are no restrictions on
(a) the payment of the credit balance on the Assigned Account or (b) the
assignment of the Assigned Account to the Security Trustee or any third party;

 

(iii)        we have not received notice of
any previous assignments of, charges over or trusts in respect of, the Assigned
Account and we will not, without the Security Trustee’s consent (a) exercise
any right of combination, consolidation or set-off which we may have in
respect of the Assigned Account or (b) amend or vary any rights attaching to
the Assigned Account;

 

(iv)        we will act only in accordance
with the instructions given by persons authorised by the Security Trustee and
we shall send all statements and other notices given by us relating to the
Assigned Account to the Security Trustee; and

 

(v)         we shall not permit any
amount to be withdrawn from the Assigned Account without the Security Trustee’s
prior written consent.

 

 

For and on
behalf of [•]

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  

 

24

 

SCHEDULE 2

 

FORM OF NOTICE OF ASSIGNMENT OF INSURANCE
POLICY

 

To:          [Insurer]

 

Date: [•]

 

Dear Sirs,

 

We hereby give
you notice that we have assigned to The Bank of New York (the “Security Trustee”) pursuant to a debenture entered into by
us in favour of the Security Trustee dated [•] all our right, title and interest in and to the proceeds of [insert details of relevant insurance policy] (the “Policy of Insurance”).

 

With effect
from your receipt of this notice we instruct you to:

 

1.           make all payments and
claims under or arising from the Policy of Insurance to the Security Trustee or
to its order as it may specify in writing from time to time;

 

2.           note the interest of the
Security Trustee on the Policy of Insurance; and

 

3.           disclose to the Security
Trustee, without further approval from us, such information regarding the
Policy of Insurance as the Security Trustee may from time to time request and
to send it copies of all notices issued by you under the Policy of Insurance.

 

With effect
from your receipt of this notice all rights, interests and benefits whatsoever
accruing to or for the benefit of ourselves arising from the Policy of
Insurance (including all rights to compel performance) belong to and are
exercisable by the Security Trustee.

 

Please
acknowledge receipt of this notice by signing the acknowledgement on the
enclosed copy letter and returning the same to the Security Trustee at One
Canada Square, London E14 5AL, England marked for the attention of Corporate
Trust Administration.

 

 

	
  Yours
  faithfully

  
	
   

  
	
   

  
	
   

  	
   

  
	
  for and on
  behalf of

  
	
  MURRAY
  INTERNATIONAL METALS PTE LIMITED

  

 

25

 

[On copy only:

 

To:          The
Bank of New York

One Canada Square

London, E14 5AL

England, as
Security Trustee

 

Attn : Corporate
Trust Administration

 

We acknowledge
receipt of a notice in the terms set out above and confirm that we have not
received notice of any previous assignments or charges of or over any of the
rights, title and interests and benefits referred to in such notice and that we
will comply with the terms of that notice.

 

We further
confirm that no amendment or termination of the Policy of Insurance shall be
effective unless we have given the Security Trustee thirty days written notice
of such amendment or termination.

 

 

For and on behalf
of [•]

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  

 

26

 

IN
WITNESS WHEREOF this Debenture has been duly
executed by the parties hereto.

 

 

	
  The Chargor

  	
   

  
	
   

  	
   

  
	
  MURRAY
  INTERNATIONAL METALS PTE LIMITED

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  The COMMON SEAL of

  	
  )

  
	
  MURRAY
  INTERNATIONAL METALS

  	
  )

  
	
  PTE
  LIMITED was hereunto affixed

  	
  )

  
	
  in the
  presence of:

  	
  )

  
	
   

  	
   

  
	
  /s/ MICHAEL
  CRAIG

  	
   

  	
  Director

  
	
   

  	
   

  
	
  Name:  MICHAEL CRAIG

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ KENNETH
  COCKBURN

  	
   

  	
  Director / Secretary

  
	
   

  	
   

  
	
  Name:  KENNETH A. COCKBURN

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  The Security Trustee

  	
   

  
	
   

  	
   

  
	
  SIGNED,
  SEALED and DELIVERED by

  	
  )

  
	
   

  	
   

  
	
  /s/
  CHARLOTTE FRICKER

  	
   

  	
  )

  
	
   

  	
   

  
	
  as attorney
  for and behalf of

  	
  )

  
	
   

  	
   

  
	
  The Bank of
  New York

  	
  )

  
	
   

  	
   

  
	
  in the
  presence of:  /s/ HELENA DUNN

  	
  )

  
				

 

 

I,                                                                     
, an Advocate and Solicitor of the Supreme Court of Singapore practising in
Singapore hereby certify that on the 25th day of January 2006 the Common Seal
of MURRAY INTERNATIONAL METALS PTE LIMITED was
affixed to this Debenture at Singapore in my presence in accordance with the
Articles of Association of MURRAY INTERNATIONAL
METALS PTE LIMITED (which Articles of Association have been produced
and shown to me).

 

Witness my
hand this 25th day of January 2006.

 

27

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