Document:

EX-10.10

Exhibit 10.10

TRADEMARK SECURITY AGREEMENT

TRADEMARK SECURITY AGREEMENT, dated as of December 15, 2004, by TGC Research Limited (a
company incorporated in England and Wales with registered number 05273708, “Grantor”), in
favor of BCC Acquisition II LLC (“Bay City”), in its capacity as agent (“Agent”)
for itself and Gerald L. Cohn Revocable Trust (“Cohn Trust”), Hannah S. and Samuel A. Cohn
Memorial Foundation (“Cohn Foundation”), and AEOW 96, LLC (“AEOW”). Bay City, Cohn
Trust, Cohn Foundation and AEOW are collectively referred to herein as the “Note Holders”.

W I T N E S S E T H:

WHEREAS, Bay City, Cohn Trust, Cohn Foundation and AEOW are parties to that certain Note
Purchase Agreement, dated as of August 4, 1998, as amended by that certain First Amendment to Note
Purchase Agreement, dated as of April 7, 2003 and further amended by that certain Second Amendment
and Limited Waiver to Note Purchase Agreement, dated as of August 13, 2004 (as further amended,
restated, supplemented and otherwise modified from time to time, the “Note Purchase
Agreement”); and

WHEREAS, Grantor purchased certain assets formerly held by Diametrics Medical, Ltd. and, in
consideration for the Note Holders consenting to the liquidation of Diametrics Medical, Ltd. and
the sale of its assets, Grantor has agreed to enter into a General Security Agreement (“General
Security Agreement”) and this Trademark Security Agreement;

NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Grantor hereby agrees as follows:

1. GRANT OF SECURITY INTEREST IN TRADEMARK COLLATERAL. Subject to the rights of those
certain Beneficiaries identified in that certain Debenture between Barbara R. Mittman as agent,
dated as of December 15, 2004, to a first priority security interest in all assets of Grantor,
Grantor hereby grants to Agent, on behalf of itself and the Note Holders, a continuing security
interest in all of Grantor’s right, title and interest in, to and under the following, whether
presently existing or hereafter created or acquired (collectively, the “Trademark
Collateral”):

(a) all of its trademarks, trade names, trade styles, corporate names, business
names, service marks, logos, internet domain names, other source of business
identifiers, prints and labels on which any of the foregoing have appeared or
appear, and trademark and service mark applications (“Trademarks”) and all
licenses and rights to use any of the Trademarks (“Trademark Licenses”) to
which it is a party including those referred to on Schedule 1 hereto;

(b) all reissues, continuations or extensions of the foregoing;

(c) all goodwill of the business connected with the use of, and symbolized by,
each Trademark and each Trademark License; and

(d) all products and proceeds of the foregoing, including, without limitation,
any claim by Grantor against third parties for past, present or future (i)
infringement or dilution of any Trademark or Trademark licensed under any Trademark
License or (ii) injury to the goodwill associated with any Trademark or any
Trademark licensed under any Trademark License.

2. SECURITY AGREEMENT. The security interests granted pursuant to this Trademark
Security Agreement are granted in conjunction with the security interests granted to Agent, on
behalf of itself and the Note Holders, pursuant to the General Security Agreement. Grantor hereby
acknowledges and affirms that the rights and remedies of Agent with respect to the security
interest in the Trademark Collateral made and granted hereby are more fully set forth in the
General Security Agreement, the terms and provisions of which are incorporated by reference herein
as if fully set forth herein.

[signature page follows]

1

IN WITNESS WHEREOF, the parties hereto have caused this Trademark Security Agreement to be executed
as of the date and year first written above.

GRANTOR

TGC RESEARCH LIMITED

By: /s/ David B. Kaysen

	 	 	 	Name: David B. Kaysen

Title: Director

THE SECURED PARTY

BCC ACQUISITION II LLC, as agent

	 	 	 
	By:

Its:

	 	THE BAY CITY CAPITAL FUND I, L.P.

Manager
	 
	 	 
	By:

Its:

	 	Bay City Capital Management LLC

General Partner
	 
	 	 
	By:

Its:

	 	/s/ Fred Craves

Managing Director
	 
	 	 

2

SCHEDULE 1

to

TRADEMARK SECURITY AGREEMENT

TRADEMARK REGISTRATIONS

	 	 	 	 	 
	MarkReg.

	 	No.
	 	Date
	 
	 	 	 	 
	Neurotrend

Neotrend

Paratrend 7

	 	2,232,933. S/N 75-323,109

2,232,863, S/N 75-294,924

1,792,144, S/N 74-128,356
	 	

	 
	 	 	 	 
	Expired Trademarks

	 	

	 	

	 
	 	 	 	 
	CAL-POD

CARDIOMET

	 	1,504,639, S/N 73-676,237

1,537,310, S/N 73-667,464
	 	

	 
	 	 	 	 

3EX-10.11

Exhibit 10.11

PATENT SECURITY AGREEMENT

PATENT SECURITY AGREEMENT, dated as of December 15, 2004, by TGC Research Limited (a company
incorporated in England and Wales with registered number 05273708, “Grantor”), in favor of
BCC Acquisition II LLC (“Bay City”), in its capacity as agent (“Agent”) for itself
and Gerald L. Cohn Revocable Trust (“Cohn Trust”), Hannah S. and Samuel A. Cohn Memorial
Foundation (“Cohn Foundation”), and AEOW 96, LLC (“AEOW”). Bay City, Cohn Trust,
Cohn Foundation and AEOW are collectively referred to herein as the “Note Holders”.

W I T N E S S E T H:

WHEREAS, Bay City, Cohn Trust, Cohn Foundation and AEOW are parties to that certain Note
Purchase Agreement, dated as of August 4, 1998, as amended by that certain First Amendment to Note
Purchase Agreement, dated as of April 7, 2003 and further amended by that Second Amendment and
Limited Waiver to Note Purchase Agreement, dated as of August 13, 2003 (as further amended,
restated, supplemented and otherwise modified from time to time, the “Note Purchase
Agreement”); and

WHEREAS, Grantor purchased certain assets formerly held by Diametrics Medical, Ltd. and, in
consideration for the Note Holders consenting to the liquidation of Diametrics Medical, Ltd. and
the sale of its assets, Grantor has agreed to enter into a General Security Agreement (“General
Security Agreement”) and this Patent Security Agreement;

NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Grantor hereby agrees as follows:

1 GRANT OF SECURITY INTEREST IN PATENT COLLATERAL. Subject to the rights of those
certain Beneficiaries identified in that certain Debenture between Grantor and Barbara R. Mittman
as agent, dated as of December 15, 2004, to a first priority security interest in all assets of
Grantor, Grantor hereby grants to Agent, on behalf of itself and the Note Holders, a continuing
security interest in all of Grantor’s right, title and interest in, to and under the following,
whether presently existing or hereafter created or acquired (collectively, the “Patent
Collateral”):

(a) all of its patents, patent rights and patent applications (“Patents”) and
all licenses and rights to use any of the Patents (“Patent Licenses “) to which it
is a party including those referred to on Schedule 1 hereto;

(b) all reissues, continuations or extensions of the foregoing; and

(c) all products and proceeds of the foregoing, including, without limitation, any
claim by Grantor against third parties for past, present or future infringement or dilution
of any Patent or any Patent licensed under any Patent License.

2 SECURITY AGREEMENT. The security interests granted pursuant to this Patent Security
Agreement are granted in conjunction with the security interests granted to Agent, on behalf of
itself and the Note Holders, pursuant to the General Security Agreement. Grantor hereby
acknowledges and affirms that the rights and remedies of Agent with respect to the security
interest in the Patent Collateral made and granted hereby are more fully set forth in the General
Security Agreement, the terms and provisions of which are incorporated by reference herein as if
fully set forth herein.

[signature page follows]

1

IN WITNESS WHEREOF, the parties hereto have caused this Patent Security Agreement to be executed as
of the date and year first written above.

GRANTOR

TGC RESEARCH LIMITED

By: /s/ David B. Kaysen

	 	 	 	Name: David B. Kaysen

Title: Director

THE SECURED PARTY

BCC ACQUISITION II LLC, as agent

	 	 	 
	By:

Its:

	 	THE BAY CITY CAPITAL FUND I, L.P.

Manager
	 
	 	 
	By:

Its:

	 	Bay City Capital Management LLC

General Partner
	 
	 	 
	By:

Its:

	 	/s/ Fred Craves

Managing Director
	 
	 	 

2

SCHEDULE 1

to

PATENT SECURITY AGREEMENT

PATENT REGISTRATIONS

	 	 	 	 	 
	US Patent/App

No.

	 	

Title
	 	

STATUS
	
 
	 	 
	 	

	 	 	 	 	 	 	 
	4,889,407

5,257,338

5,511,547

5,596,988

09/064,761

09/762,634

6,585,665

10/240,802

PCT/GB02/02546

0224661.9

0221584.6

	 	Optical Waveguide Sensor

Optical Transmitter and Reflector

Solid State Sensors

Multiparameter Sensor Apparatus

Double Walled Catheter and Method of Manufacture

Cranial Bolt

Probe

Insertion of Sensors into Soft Tissue

Apparatus and Method for Determining Organ Perfusion

Appartus and Method for Monitoring Condition of a Patient

Improvements in or relating to Neonatal sensor devices
	 	Granted 1989

Granted 1993

Granted 1996

Granted 1997

Granted 1999

Granted 1999

Granted 1999

Granted 2000

Granted 2001

Filed 2002
	 	

Filed 2002
	 
	 	 	 	 	 	 
	0230325.3

 0229263.9

	 	Improvements in or relating to Sensors for Use in Dense Tissue

Improvements in or relating to Sensor Devices for Monitoring the

Condition of a Human or Animal Patient
	 	Filed 2002

	 	

Filed 2002

	 
	 	 	 	 	 	 

3EX-10.12

Exhibit 10.12

Dated 15 December, 2004

(1) TGC RESEARCH LIMITED

(as the Chargor)

- and -

(2) BCC ACQUISITION II LLC

(as the Agent)

Debenture

This Deed is subject to the terms and conditions of the Subordination Agreement (as defined herein)

London

99 Bishopsgate

London EC2M 3XF

(44) 020 7710 1000 (Tel)

(44) 020 7374 4460 (Fax)

www.lw.com

1

CONTENTS

Clause Page

2

THIS DEBENTURE is made by way of deed on 15 December, 2004

BETWEEN

	 	(1)	 	TGC RESEARCH LIMITED, a company incorporated in England and Wales with registered number
05273708 and whose registered office is at 10 Station Road, Henley on Thames, Oxfordshire RG9
1AY (the “Chargor”); and

	 	(2)	 	BCC ACQUISITION II LLC, acting through its office at 750 Battery, Suite 600, San Francisco,
CA 94111 for itself and as agent for each of the Beneficiaries (as defined below) (together
with its successors and assigns, the “Agent”)

BACKGROUND

(A) DMED and the Beneficiaries are parties to the Note Purchase Agreement (as defined below).

	 	(B)	 	In consideration of the Beneficiaries entering into the Second Amendment (as defined below),
Diametrics Medical Limited (“DML”) (registered number 01676781) entered into a debenture dated
27 August, 2003 between itself as chargor and BCC Acquisition II LLC as agent.

	 	(C)	 	DML has entered into liquidation proceedings further to which the Chargor has entered into
arrangements to purchase the DML Assets out of liquidation.

	 	(D)	 	DMED is the holding company of the Chargor and the Chargor will receive direct and indirect
benefits from DMED.

	 	(E)	 	The Beneficiaries have, among other matters, agreed to (i) grant certain consents under the
Note Purchase Agreement and (ii) amend certain provisions of the Note Purchase Agreement, in
each case pursuant to the terms of the Consent and Amendment (as defined below).

	 	(F)	 	In consideration of the Beneficiaries entering into the Consent and Amendment, the Chargor
hereby agrees that it is in its own best interests to enter into this Debenture.

NOW THIS DEED WITNESSES as follows:

1. INTERPRETATION

1.1 Definitions

Save as otherwise provided in this Debenture, the following words and phrases have the
following meanings throughout this Debenture:

	 	 	 
	“Account Notice”

	 	means, unless otherwise agreed by the

Agent, a notice substantially in the form

set out in Schedule 7
	 
	 	 
	“Act”

	 	means the Law of Property Act 1925
	 
	 	 
	“Beneficiaries”

	 	means each of BCC Acquisition II LLC, the

Gerald L.Cohn Revocable Trust, the Hannah

S. and Samuel A. Cohn Memorial Foundation

and AEOW 96, LLC in their capacity as

holders of the Notes.
	 
	 	 
	“Collateral”

	 	means all Property, Equipment, Inventory,

Investments, Receivables, Receivables

Accounts, Policies, Contracts and/or other

assets and undertakings of the Chargor

mortgaged, charged or assigned under this

Debenture and, where the context so

admits, each of them and any part thereof

and the proceeds of the disposal of the

same and all rights, title and interest in

and to the same, in each such case as may

now or in the future be the subject of the

Security
	 
	 	 
	“Collateral Agency

Agreement”

	 	means the collateral agency agreement

between the Agent and the Beneficiaries

dated 13 August, 2003
	 
	 	 
	“Consent and Amendment”

	 	means the consent and amendment dated on

or before the date hereof between DMED and

the Beneficiaries
	 
	 	 
	“Contracts”

	 	means all contracts and agreements to

which the Chargor is a party and/or that

confer any rights upon the Chargor

(including any letters of credit issued in

its favour and all bills of exchange and

other negotiable instruments held by it)
	 
	 	 
	“Default Rate”

	 	means a rate of interest determined in

accordance with Article 3 of each of the

Notes
	 
	 	 
	“DMED”

	 	means Diametrics Medical, Inc.
	 
	 	 
	“DML Asset Acquisition

Invoice”

	 	means the invoice (including the inventory

attached thereto) from Hertfordshire

Valuations Limited (as agent for the

liquidator of DML) to the Chargor dated on

or before the date of this Debenture in

accordance with the terms of which the

Chargor will acquire certain of the assets

of DML
	 
	 	 
	“DML Assets”

	 	means those assets of DML which the

Chargor proposes to acquire (or has

acquired) and which are listed in the DML

Asset Acquisition Invoice
	 
	 	 
	“English General

Security Agreement”

	 	means the general security agreement

governed by the internal law of the State

of Illinois dated on or before the date

hereof and entered into between the

Chargor and the Agent
	 
	 	 
	“English Patent

Security Agreement”

	 	means the patent security agreement dated

on or before the date hereof entered into

between the Chargor and the Agent
	 
	 	 
	“English Trademark

Security Agreement”

	 	means the trademark security agreement

dated on or before the date hereof entered

into between the Chargor and the Agent
	 
	 	 
	“Equipment”

	 	means all of the Chargor’s now owned and

hereafter acquired machinery and equipment

including processing equipment, conveyers,

machine tools, data processing and

computer equipment, including embedded

software, and peripheral equipment and all

engineering, processing and manufacturing

equipment, office machinery, furniture,

material, handling equipment, tools,

attachments, accessories, automotive and

office equipment, trailers, trucks,

forklifts, mould, dies, stamps, motor

vehicles, rolling stock and other

equipment of every kind and nature, trade

fixtures and fixtures not forming a part

of real property, furnishings, furniture

and other tangible personal property

(except Inventory), together with all

additions and accessories thereto,

replacements therefor, all parts therefor,

all substitutes for any of the foregoing,

fuel therefor and all manuals, drawings,

instructions, warranties and rights with

respect thereto, and all products and

proceeds thereof and condemnation awards

and insurance proceeds with respect

thereto, in the case of all of the

foregoing, wherever they may be located,

including without limitation the Equipment

specified or referred to in Schedule 1 (if

any)
	 
	 	 
	“Event of Default”

	 	means the occurrence or existence of any

Event of Default under the Note Purchase

Agreement or any other Finance Document, a

material default under the Note Purchase

Agreement or the breach of any

representation, warranty or covenant under

this Debenture
	 
	 	 
	“Finance Documents”

	 	means this Debenture, the Note Purchase

Agreement, the Notes, the Collateral

Agency Agreement, the Security Documents

and such other security agreements as may

be executed by the Chargor
	 
	 	 
	“First Ranking

Debenture”

	 	means the debenture dated on or about the

date hereof between the Chargor as chargor

and Barbara R. Mittman as agent
	 
	 	 
	“Intellectual Property”

	 	means

(i) all of the intellectual property set

out in Schedule 2 (if any);

(ii) all patents, utility models, trade

marks, rights (registered or unregistered)

in any designs, copyright, database

rights, topography rights, plant breeders’

rights, rights protecting goodwill and

reputation, applications for any of the

foregoing, and all rights and forms of

protection of a similar nature or having

equivalent effect to any of the foregoing

anywhere in the world, that are owned by

or licensed to the Chargor (or any nominee

of the Chargor) whether now or at any time

in the future; and

(iii) all confidential information and

knowledge (including know how, inventions,

secret formulae and processes, market

information, and lists of suppliers and

customers) relating to the Chargor and

that is in the possession or control of

the Chargor (or any nominee of the

Chargor) whether now or at any time in the

future
	 
	 	 
	“Inventory”

	 	means all of the Chargor’s now owned and

hereafter acquired inventory, goods and

merchandise, wherever located, to be

supplied under any contract of service or

held for sale or lease, all raw materials,

work-in-progress, finished goods, returned

goods and materials and supplies of any

kind, nature or description which are or

might be used or consumed in its

businesses or used in connection with the

manufacture, packing, shipping,

advertising, selling or finishing of such

goods, merchandise and other personal

property, and all documents of title or

other documents representing them
	 
	 	 
	“Investments”

	 	means the Securities and the Related

Rights relating to such Securities
	 
	 	 
	“Licences”

	 	means all licences, consents and

authorisations (statutory or otherwise)

now or in the future held or acquired by

the Chargor, or held by a nominee of the

Chargor, in connection with any business

carried on by it or the use of any of the

Collateral
	 
	 	 
	“Note Purchase

Agreement”

	 	means the note purchase agreement made

between DMED and the Beneficiaries dated

August 4, 1998, as amended by a first

amendment agreement dated April 7, 2003

and as further amended by the Second

Amendment and the Consent and Amendment
	 
	 	 
	“Notice of Assignment”

	 	means, unless otherwise agreed by the

Agent, a notice of assignment

substantially in the applicable form set

out in Schedule 5
	 
	 	 
	“Obligors”

	 	means DMED and the Chargor
	 
	 	 
	“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 and the Planning and Compensation Act

1991 or any Acts intended to control or

regulate the construction, alteration,

demolition or change of use of land or

buildings and any orders, regulations or

permissions made, issued or granted under

or by virtue of such Acts or any of them
	 
	 	 
	“Policies”

	 	means the policies of insurance in which

the Chargor is the named beneficiary

details of which are specified in Schedule

4 (if any) and any other policies of

insurance in which it is the named

beneficiary from time to time
	 
	 	 
	“Property”

	 	means all freehold and leasehold

properties and other real property both

present and future of the Chargor as may

now or in the future be the subject of the

Security, including all buildings and

other structures from time to time erected

thereon and all fixtures and fittings

(trade or otherwise) and fixed plant and

machinery from time to time thereon or

therein, including, without limitation,

the Property specified in Schedule 8 (if

any)
	 
	 	 
	“Receivables”

	 	means:
	
 
	 	(a) all book debts, both present and

future, due or owing to the Chargor and

all other monetary debts and claims,

choses in action and other rights and

benefits both present and future

(including, in each case, the proceeds and

all remittances in respect thereof and all

damages and dividends in relation thereto)

due or owing to the Chargor and the

benefit of all related rights and remedies

(including under negotiable or

non-negotiable instruments, guarantees,

indemnities, legal and equitable charges,

reservation of proprietary rights, rights

of tracing and liens);

(b) all sums, both present and future, due

or owing to the Chargor by way of grant,

subsidy or refund by any statutory, legal

or governmental body, authority or

institution or by any body, authority or

institution of the European Union; and

(c) all payments representing or made in

respect of paragraph (a) or (b)
	 
	 	 
	“Receivables Account”

	 	means each account of the Chargor details

of which are specified in Schedule 3 (if

any) (to which Receivables are to be paid

or credited) and all other accounts or

sub-accounts opened or maintained now or

in the future by the Chargor with any

bank, financial institution or other

person satisfactory to the Agent or

(following the occurrence of an Event of

Default that has not been remedied or

waived in accordance with the terms of the

Finance Documents) as the Agent shall

specify
	 
	 	 
	“Receiver”

	 	means a receiver and/or manager

(including, as the context admits, an

administrator and an administrative

receiver) however appointed under or in

connection with this Debenture
	 
	 	 
	“Related Rights”

	 	means in relation to any of the Securities:
	
 
	 	(a) all assets deriving from such

Securities including all allotments,

accretions, offers, rights, dividends,

distributions, interest, income, benefits

and advantages whatsoever at any time

accruing, offered or otherwise derived

from or incidental to such Securities;

(b) all stocks, shares, rights, money or

property accruing or offered at any time

by way of conversion, redemption, bonus,

preference, exchange, purchase,

substitution, option, interest or

otherwise in respect thereof; and

(c) any dividend, interest or other income

in respect of any asset referred to in

paragraph (b) above
	 
	 	 
	“Second Amendment”

	 	means the second amendment to the Note

Purchase Agreement dated August 13, 2003
	 
	 	 
	“Secured Obligations”

	 	means all obligations and liabilities of

DMED or of the Chargor which may arise

under or in connection with this Debenture

or any other Finance Document, in any

manner whether on account of guarantee

obligations, reimbursement obligations,

fees, indemnities, costs, expenses or

otherwise, whether actual or contingent,

whether incurred solely or jointly with

any other person and whether as principal

or surety except for any obligation or

liability which, if it were so included,

would cause the infringement of any of

sections 151 to 158 (inclusive) of the

Companies Act 1985
	 
	 	 
	“Securities”

	 	means all shares, stocks, debentures,

debenture stock, bonds, warrants, options,

coupons or other securities and

investments of any kind whatsoever owned

by the Chargor (including rights to

subscribe for, convert into or otherwise

acquire the same) whether marketable or

otherwise, and all other interests

(including loan capital) now or in the

future owned by the Chargor from time to

time in any company, firm, consortium or

entity wherever situate, including the

Securities specified in Schedule 6
	 
	 	 
	“Security”

	 	means the security created by (or

purported to be created by) this Debenture
	 
	 	 
	“Security Documents”

	 	means this Debenture, the English General

Security Agreement, the English Trademark

Security Agreement, the English Patent

Security Agreement and each of the US

Security Agreements
	 
	 	 
	“Subordination

Agreement”

	 	means the subordination agreement dated on

or before the date hereof between, amongst

others, BCC Acquisition II LLC, Barbara R.

Mittman, DMED and the Chargor
	 
	 	 
	“US Security

Agreements”

	 	means the General Security Agreement,

Patent Security Agreement and Trademark

Security Agreement each dated 13 August

2003 and entered into between DMED and the

Agent

1.2 Interpretation

Any reference in this Debenture to (or to any specified provision of) this “Debenture”, the
“Note Purchase Agreement” or any other “Finance Document” or to any other agreement or
document shall, unless the context otherwise requires, be construed as a reference to this
Debenture, the Note Purchase Agreement or such other Finance Document or such other
agreement or document (or that provision) as the same may from time to time be amended,
varied, supplemented, novated or replaced (but excluding for this purpose any amendment,
variation, supplement, novation or replacement which is contrary to any provision of any
Finance Document). The reference shall include any document which is supplemental to, is
expressed to be collateral with, or is entered into pursuant to or in accordance with, and
any certificate, instrument, notification or document which is entered into or delivered in
connection with or pursuant to or in accordance with, the terms of this Debenture, the Note
Purchase Agreement or such other Finance Document or, as the case may be, such other
agreement or document.

Any reference in this Debenture to the “Agent” or any “Beneficiary” shall be construed so as
to include its and any subsequent successors, transferees and assigns in accordance with
their respective interests.

1.3 Incorporation of Terms by Reference

Unless the context requires otherwise, words and expressions defined or construed in the
Note Purchase Agreement, the Act or the Insolvency Act 1986 and which are not defined or
construed in this Debenture shall bear the same meanings when used in this Debenture.

1.4 Use of Lists and Examples

In construing this Debenture general words introduced by the word “other” shall not be given
a restrictive meaning by reason of the fact that they are preceded by words indicating a
particular class of acts, matters or things and general words shall not be given a
restrictive meaning by reason of the fact that they are followed by particular examples
intended to be embraced by the general words.

1.5 Whole Agreement

This Debenture supersedes any previous agreement, whether written or oral, express or
implied, between the Chargor and the Agent in relation to the subject matter of this
Debenture.

1.6 Headings

The headings in this Debenture are for convenience only and shall not affect its meaning and
references to a Clause, Schedule or paragraph are (unless otherwise stated) to a Clause of,
Schedule to or paragraph of, this Debenture.

1.7 Counterparts

This Debenture may be signed in any number of counterparts, all of which taken together
shall constitute one and the same instrument. Any party may enter into this Debenture by
signing any such counterpart.

1.8 Singular/Plural

Save where the context otherwise requires, the plural of any term includes the singular and
vice versa.

1.9 No Partnership

Nothing in this Debenture or envisaged hereby shall operate, whether directly or indirectly,
to constitute a partnership between the Chargor and any Beneficiary or the Agent.

1.10 Amount of Secured Obligations

A certificate of the Agent as to the amount of any Secured Obligations due at any time will,
in the absence of manifest error, be conclusive and binding on the Chargor.

1.11 Security Enforceable

The security constituted by, and the rights of the Agent and the Beneficiaries under, this
Debenture shall be enforceable notwithstanding any change in the constitution of the Agent
or any Beneficiary or its absorption in or amalgamation with any other person or the
acquisition of all or part of its undertaking by any other person.

1.12 Statutory References

Unless the context otherwise requires, a reference to a statute or any provision thereof is
to be construed as a reference to that statute or such provision thereof as it may be
amended or re-enacted from time to time.

1.13 Disposition of the Mortgaged Property

The terms of the other Finance Documents and of any side letters between any parties to such
documents in relation to any Finance Document are incorporated in this Debenture to the
extent required to ensure that any purported disposition of the Collateral contained in this
Debenture is a valid disposition in accordance with section 2(1) of the Law of Property
(Miscellaneous Provisions) Act 1989.

1.14 Rule 139 Land Registration Rules 1925

For the purposes only of Rule 139 of the Land Registration Rules 1925, the parties to this
Debenture agree that each of the Finance Documents other than this Debenture do not form
part of the terms and conditions of the Security.

1.15 Assets

A reference in this Debenture to any “assets” includes, unless the context otherwise
requires, property, business, undertakings and rights of every kind, present and future and
contingent (including uncalled share capital) and every kind of interest in any asset.

1.16 Schedules

The fact that no details are included in a relevant Schedule does not affect the validity or
enforceability of the Security.

	 	 	 
	1.17

1.18

1.19

	 	Deed

The parties intend that this document shall take effect as a deed.

Perpetuity Period

The perpetuity period applicable to the trusts created by this Debenture is 80 years.

Priority

Each of the parties hereto (on its own behalf and on behalf of each other person, if any, on
whose behalf it is entering into this Debenture) acknowledges the existence of the first
ranking security granted in accordance with the terms of the First Ranking Debenture and
that all of the provisions of this Debenture, including without limitation all rights and
obligations of the Agent, any Receiver appointed in accordance with the terms hereof and the
Chargor hereunder, are subject to, and shall only be exercised in accordance with and if
permitted by, the terms of the Subordination Agreement.

1.20 First Ranking Debenture

The Agent hereby acknowledges the existence and the terms of the First Ranking Debenture,
and acknowledges that, notwithstanding any provision of this Debenture, the Chargor shall
not be deemed to be in breach of any such provision if failure to comply with the terms
thereof is a direct result of the Chargor complying with its obligations in the First
Ranking Debenture.

2. PAYMENT OF THE SECURED OBLIGATIONS

2.1 Covenant

The Chargor hereby unconditionally and irrevocably, as primary obligor and not merely as
surety, covenants with the Beneficiaries that it will pay or discharge the Secured
Obligations on the due date for payment therefor in the manner provided in the relevant
Finance Document.

2.2 Interest

Save to the extent otherwise agreed, interest may be added by the Agent to any amount which
shall remain unpaid on the due date for payment therefor from such due date until payment in
full at the Default Rate applicable to the relevant outstanding Secured Obligations under
the Finance Documents.

2.3 Costs and Expenses

Immediately upon demand, the Chargor shall pay all fees, costs and expenses (including legal
fees and any value added tax) incurred from time to time in connection with the enforcement
of or preservation of rights under this Debenture by the Agent, or any Receiver, attorney,
manager, trustee or any other person appointed by the Agent under this Debenture or by
statute.

3. CHARGING PROVISIONS

3.1 Specific Charges

Subject to Clause 3.4, the Chargor with full title guarantee and as a continuing security
for the payment, performance and discharge of the Secured Obligations hereby charges in
favour of the Agent (or, if the Agent so chooses, its nominee) for the benefit of the
Beneficiaries all of its rights, title and interest in and to the following assets, both
present and future, from time to time owned by it or in which it has an interest:

	 	(a)	 	by way of first legal mortgage all of its Property together with all buildings
and fixtures (including trade fixtures) thereon and/or the proceeds of sale thereof and
by way of first fixed charge all future Property and any other Property not effectively
charged by way of first legal mortgage in each case together with all buildings and
fixtures (including trade fixtures) thereon and all proceeds of sale thereof;

	 	(b)	 	by way of first equitable mortgage, all its Securities and, if and to the
extent not effectively assigned by Clause 3.3, all Related Rights relating to such
Securities;

(c) by way of first fixed charge:

	 	(i)	 	its Intellectual Property, including all fees and royalties deriving
from such Intellectual Property;

	 	(ii)	 	its Licences and all deeds and documents from time to time relating
to the Collateral;

(iii) its goodwill and its uncalled share capital both present and future;

	 	(iv)	 	if and to the extent not effectively assigned by Clause 3.3, all of
its rights, title and interest in and to (and claims under) the Policies and to
any statutory or other compensation monies (including the proceeds of any
defective title, restrictive covenant or other indemnity policy or covenant
relating to its Property) arising for its benefit for interference with the use
and/or enjoyment of its Property or the curtailment of any easement, right or
benefit relating thereto and all other compensation monies from time to time
received by it in respect of its Property;

	 	(v)	 	all of its rights, title and interest in and to all chattels from time
to time hired, leased or rented by it to any other person together, in each
case, with the benefit of the related hiring, leasing or rental contract and
any guarantee, indemnity or other security for the performance of the
obligation of any person under or in respect of such contract;

	 	(vi)	 	all rights in relation to or under and all benefits of, any covenants
for title given or entered into by any of its predecessors in title to its
Property, all proceeds of a capital nature in relation to the disposal of its
Property, the benefit of any contract for the sale, letting or other disposal
of its Property and all present and future options to renew all leases or
purchase all reversions (whether or not freehold) from time to time in relation
to its Property;

	 	(vii)	 	the benefit of all of its rights and claims against all lessees from
time to time of the whole or any parts of its Property and all guarantors and
sureties for the obligations of such lessees and against all persons who are
under any obligation to it in respect of any works of design, construction,
repair or replacement to, on or about its Property;

	 	(viii)	 	its Equipment (whether from time to time in or on the Property (and
not comprised in the Property) or otherwise), including without limitation all
of its Equipment details of which are set out in Schedule 1 (which Schedule may
be amended and substituted from time to time with the consent of the Agent),
and the benefit of all of its rights and claims against any person in respect
of the design, construction, repair or replacement of the same;

	 	(ix)	 	all of its rights (including against third parties) and benefits in
and to the Receivables, to the extent that they do not fall within any other
paragraph of this Clause 3.1;

	 	(x)	 	all of its rights and benefits in and to the Receivables Accounts and
all monies standing to their credit;

	 	(xi)	 	so far as permitted under the relevant document, its rights, title
and interest in and to all contracts, agreements or warranties affecting or in
any way relating to the Collateral and the benefit of all related rights and
remedies; and

	 	(xii)	 	any beneficial interest, claim or entitlement it has in any pension
fund.

3.2 Floating Charge

The Chargor with full title guarantee and as a continuing security for the payment,
performance and discharge of the Secured Obligations hereby charges to the Agent for the
benefit of the Beneficiaries by way of first floating charge all of its undertakings,
property, assets and rights (including its Inventory and Equipment), whatsoever and
wheresoever, both present and future (save insofar as any of the same shall for the time
being be effectively mortgaged or charged by way of first fixed charge under the provisions
of Clause 3.1 or assigned by way of security under the provisions of Clause 3.3). The
floating charge created by the Chargor pursuant to this Clause 3.2 is a “qualifying floating
charge” for the purposes of paragraph 14.2(a) of Schedule B1 of the Insolvency Act 1986 and
paragraph 14 of Schedule B1 of the Insolvency Act shall apply to this Debenture.

3.3 Assignments by way of Security

Subject to Clause 3.4, the Chargor with full title guarantee and as a continuing security
for the payment, performance and discharge of the Secured Obligations hereby assigns
absolutely (in each case to the fullest extent capable of assignment) by way of security to
the Agent for the benefit of the Beneficiaries all of its present and future rights, title
and interest in and to:

(a) the proceeds of the Policies;

(b) the Receivables;

	 	(c)	 	each Receivables Account maintained by it (including any such account
specified in Schedule 3) and any monies from time to time standing to the credit of any
such account or any other account maintained with the Agent into which the proceeds of
Receivables are paid;

(d) the Related Rights; and

	 	(e)	 	all monies which at any time may be or become payable to it pursuant to any
Contract and the proceeds of any claims, awards and judgments which may at any time be
receivable or received by it pursuant thereto.

3.4 Removal of Impediments to Charges and Assignments

To the extent that:

	 	(a)	 	any right, title or interest described in Clause 3.1 is not capable of being
charged; or

	 	(b)	 	any right, title or interest described in Clause 3.3 is not capable of
assignment,

and upon written notice served upon the Chargor by the Agent, the Chargor shall use its best
endeavours as soon as reasonably practicable to obtain any relevant consent to such
assignment or charge or to otherwise render the same capable of assignment or charge and,
pending such interest becoming capable of assignment or charge, the charge purported to be
created by Clause 3.1 or the assignment purported to be effected by Clause 3.3 (as the case
may be) shall, without prejudice to the provisions of Clause 3.1(c)(ix) in relation to
Receivables, only operate as a charge or an assignment (as the case may be) by way of
continuing security of any and all proceeds, damages, compensation, remuneration, profit,
rent or income which the Chargor may derive therefrom or be awarded or entitled to in
respect thereof, in each case as continuing security for the payment, discharge and
performance of the Secured Obligations. Forthwith upon receipt of the relevant consent, the
relevant right, title or interest shall stand charged or assigned to the Agent under Clause
3.1 or 3.3 (as the case may be) and the Chargor will, if required by the Agent, forthwith
execute a valid fixed charge or legal assignment (as the case may be) in such form as the
Agent shall require but on terms no more onerous that this Debenture.

4. REPRESENTATIONS AND WARRANTIES AND COVENANTS

4.1 Representations and Warranties

The Chargor makes the representations and warranties set out in this Clause 4.1 to the Agent
for the benefit of the Beneficiaries.

(a) Ownership of Collateral and Ranking

It is the sole legal and beneficial owner of all the Collateral now purportedly
owned or hereafter purportedly acquired by it (including the DML Assets), and to the
best of its knowledge, such Collateral is free from all Liens whatsoever (other than
Liens permitted under the terms of the Finance Documents and the Security
Documents), whether voluntarily or involuntarily created and whether or not
perfected. Forthwith following the execution of this Debenture the Chargor will (if
it has not already done so) acquire the DML Assets which shall (for the avoidance of
doubt) become part of the Collateral upon acquisition thereof.

(b) Equipment and Property

	 	(i)	 	It has good and indefeasible and merchantable title to and ownership
of all Equipment.

	 	(ii)	 	It has good and marketable title to all the Property that is subject
to a mortgage in favour of the Agent. Subject to the terms of the
Subordination Agreement, such Property is subject to a first priority perfected
security interest in favour of the Agent and to no other Lien whatever, other
than Liens permitted under the terms of the Finance Documents (including for
the avoidance of doubt the First Ranking Debenture).

	 	(iii)	 	Schedule 8 sets out all Property owned by the Chargor as at the date
of this Debenture. The Chargor owns or leases all such properties as are
necessary to its operations as now conducted.

(c) No Claims

None of the Collateral is, to the Chargor’s knowledge, the subject of any claim,
assertion, infringement, attack, right, action or other restriction or arrangement
of whatever nature which does or could materially and adversely affect the validity,
enforceability or ownership of the Collateral by the Chargor or its utilisation by
the Chargor.

(d) Securities

The Chargor is the registered holder and legal and beneficial owner of the
Securities listed in Schedule 6 (if any) and, as at the date of this Debenture, owns
no other Securities.

(e) Intellectual Property; Licences, etc

	 	(i)	 	Apart from the intellectual property set out in Schedule 2 (if any),
the Chargor does not own or have any interest in any unregistered intellectual
property that is material to its business nor any registered intellectual
property whatsoever;

	 	(ii)	 	the Chargor is the sole legal, beneficial and (where relevant)
registered owner free from encumbrances of the intellectual property set out or
referred to in Parts I – II of Schedule 2 (if any);

	 	(iii)	 	all fees, costs, charges and taxes required to maintain the
Intellectual Property in force with any relevant registry or authority have
been duly paid on time;

	 	(iv)	 	the Chargor has not received any advice or claim that expresses doubt
on the validity or enforceability of any material part of the Intellectual
Property;

	 	(v)	 	all material confidential information and know how in the possession
or control of the Chargor is kept confidential, and has not been disclosed to
third parties other than in the ordinary course of business;

	 	(vi)	 	no third party has been licensed to use any of the Intellectual
Property nor been granted any other right, title or interest in the
Intellectual Property other than in the ordinary course of business;

	 	(vii)	 	use of the Intellectual Property does not infringe the intellectual
property of any third party nor involve the unauthorised use of confidential
information or know how;

	 	(viii)	 	none of the Intellectual Property is, so far as the Chargor is
aware, being infringed by any third party;

	 	(ix)	 	where the Chargor is licensed to use intellectual property that is
material to its business, the Chargor has complied in all material respects
with all terms of that licence; and

	 	(x)	 	to the extent necessary for the benefit of the Chargor, all licences
of intellectual property have been duly recorded with the relevant registries
or other authorities.

(f) Accuracy of Schedules

Each of the Schedules is, to the best of the Chargor’s knowledge, accurate in all
material respects as at the date of this Debenture.

The representations and warranties set out in this Clause 4.1 are made on the date of this
Debenture.

4.2 Covenants relating to the Collateral

The Chargor covenants with the Agent for the benefit of the Beneficiaries that it will:

(a) State of repair and condition

keep the Collateral in a good and substantial state of repair;

(b) Alterations

procure that no material alteration or addition is made to its Property, no
component of Equipment is removed from the same (except in the ordinary course of
use, repair, maintenance and/or improvement), no new buildings are erected thereon
and that nothing is done on its Property which constitutes “development” as defined
in any Planning Act which, in each case, would, or would be reasonably likely to,
materially adversely affect the value or use of the relevant Property;

(c) Third party interests

procure that it does not permit any person to be registered as proprietor of any
right or interest in respect of its Property (other than pursuant to this Debenture
and/or the First Ranking Debenture and other than as permitted under the Finance
Documents) and that no overriding interest arises under the Land Registration Acts
1925-1988;

(d) Forfeiture notices

immediately give notice to the Agent if it receives any notice under section 146 of
the Act or any proceedings are commenced against it for the forfeiture of any lease
comprised in its Property;

(e) Disposals and consents

(save as permitted pursuant to the terms of the Note Purchase Agreement) not:

	 	(i)	 	convey, transfer, assign, surrender or otherwise dispose of any
interest (or agree to do any of the same) in its Property;

	 	(ii)	 	(save where it is not entitled at law or under the terms of any lease
or leases relating to their Property to refuse such consent or licence) grant
any consent or licence to assign, underlet or part with possession or
occupation of its Property or any part thereof;

	 	(iii)	 	agree any rent review, accept any surrender or waive or vary any of
the terms of any lease or tenancy relating to its Property from time to time
(whether such lease is a lease under which the Chargor holds its Property or
any lease superior thereto or derivative therefrom) or any of the terms of any
guarantee, indemnity or other security in relation thereto (whether proprietary
or by way of personal covenant only);

	 	(iv)	 	(save as aforesaid) grant any licences for alterations to or for any
change of use of its Property or any part thereof;

	 	(v)	 	institute any proceedings for forfeiture in relation to any such lease
or tenancy; or

	 	(vi)	 	release any lessee, tenant, guarantor, surety or provider of security
from any of its obligations thereunder or in relation thereto;

(f) Creation of other interests

(save as permitted under the terms of the Note Purchase Agreement) not create or
permit to arise or subsist any licence, interest or right to occupy in favour of, or
share possession of any of its Property with, any third party and not exercise the
powers of leasing and accepting surrenders of leases contained in sections 99 and
100 of the Act (whether in respect of any lease under which it holds its Property or
any lease superior thereto or derivative therefrom);

(g) Property acquisitions

notify the Agent in writing forthwith upon the acquisition by it from time to time
of any freehold or leasehold property and, without prejudice to the provisions of
Clause 9.1, on demand made to it by the Agent and at the cost of the Chargor,
execute and deliver to the Agent a legal mortgage (the terms of which shall be no
more onerous that the terms contained in this Debenture) in favour of the Agent of
any freehold and leasehold properties which become vested in it after the date of
this Debenture and all fixtures thereon to secure the payment and discharge of the
Secured Obligations in such form as the Agent may require and, in the case of any
leasehold property where the consent of any landlord needs to be obtained in order
for the Chargor to execute any such legal mortgage, exercise all reasonable
endeavours to obtain such consent and comply with its obligations under this Clause
4.1(g) forthwith upon such consent being obtained;

(h) H.M. Land Registry

in respect of any freehold or leasehold property which is now owned or hereafter
acquired by the Chargor the title to which is registered at H.M. Land Registry or
the title to which is required to be so registered, give H.M. Land Registry written
notice of this Debenture in accordance with Clause 19 and procure that notice of
this Debenture is duly noted in the register to each such title;

(i) Planning Acts and Regulations

comply in all material respects with and refrain from making any application under
the Planning Acts and comply without delay with all orders, regulations, notices and
directives issued or made by any competent authority, body or person (whether or not
having the force of law) which relate in any way to its Property or its use and
enjoyment;

(j) Statutory charges

comply in all material respects without delay with and pay all charges imposed by
all statutes, statutory instruments, by-laws and other enactments relating to its
Property and not do or suffer to be done any act or thing nor make any omission
whereby its Property may become subject to any statutory charge which is or may be
or become binding upon the Agent or any person deriving title under or through the
Agent and, in particular, will not enter into any onerous or restrictive obligations
affecting its Property including, without limitation, planning agreements or
obligations under the Planning Acts;

(k) Outgoings

punctually pay and indemnify the Agent and (as a separate covenant for the benefit
of the relevant Receiver) any Receiver, against all rents, rates, taxes, duties,
assessments and other outgoings (including any which shall be wholly novel) from
time to time payable in respect of any of its Collateral (including any of its
Property by its owner or occupier, as the case may be);

(l) Compensation monies

hold on trust (and the Chargor hereby declares itself as trustee accordingly) the
amount of any statutory or other compensation (including the proceeds of any
defective title, restrictive covenant or other indemnity policy or covenant relating
to its Property) arising for its benefit for interference with the use and/or
enjoyment of its Property or the curtailment of any easement, right or benefit
relating thereto and all other compensation monies from time to time received by it
in respect of its Property and (without prejudice to any rights, debts, claims
and/or obligations having priority to the obligations imposed by this Debenture) to
pay the same to the Agent for the benefit of the Beneficiaries in or towards payment
and discharge of the Secured Obligations in accordance with the terms of or as
contemplated by the Finance Documents;

(m) Orders

within fourteen days after the receipt by the Chargor of any order, notice,
direction, designation, resolution or proposal served or given by any public, local
or other authority with respect to its Property or the area in which it is situated,
give written notice thereof to the Agent and (within two days after demand) produce
the same or a copy thereof to the Agent and, where appropriate, inform it of the
steps taken or proposed to be taken to comply with any of the same and, at the
request of the Agent (but at the cost of the Chargor), make or join with the Agent
in making such representations or objections against or in respect of any matter
contained therein as the Agent shall deem expedient;

(n) Equipment not to become a fixture

not knowingly permit any Equipment to become a fixture to real property or an
accession to other personal property, unless the Agent has a valid, perfected and
first priority mortgage (whether equitable or legal) in such Property;

(o) Identifying Marks

not, without the Agent’s prior written consent, alter or remove any identifying
symbol or number on the Equipment;

(p) Investigation of title

grant the Agent or its representatives on request all such facilities within its
power to enable the Agent or such representatives to carry out investigations of
title to the Property and enquiries into matters in connection therewith, such
investigations and enquiries to be at the expense of the Chargor; and

(q) Inspection

permit the Agent and its duly authorised representatives at all reasonable times
(but in accordance with the provisions contained in any lease of the Chargor’s
Property) during business hours and on not less than 24 hours written notice to
enter into and upon its Property to view the state and condition thereof and of any
Collateral thereon (and the Chargor will remedy any material defect or want of
repair forthwith after service by the Agent of notice of the defect or want of
repair). Where any Collateral is located in or on the property of a third party,
the Chargor shall use its best efforts to enable the Agent to legally enter into and
upon such property to exercise these rights of inspection. Immediately upon request
by the Agent, deliver to the Agent any and all evidence of ownership of any of the
Equipment including, without limitation, certificates of title and applications of
title.

4.3 Other Covenants

The Chargor covenants with the Agent for the benefit of the Beneficiaries that it will:

(a) Intellectual Property and Licences

	 	(i)	 	not surrender or abandon any Intellectual Property which is of a
material nature to its business from time to time;

	 	(ii)	 	take all steps reasonably necessary to prosecute, maintain and defend
all Intellectual Property which is of a material nature to its business from
time to time;

	 	(iii)	 	not make any admission to any third party on the validity,
enforceability or ownership of the Intellectual Property;

	 	(iv)	 	not assign or grant (nor agree to assign or grant) any right, title
or interest in the Intellectual Property to any third party; and

	 	(v)	 	appoint the Agent as its agent to apply for the particulars of this
Debenture and of the Beneficiaries’ interest in any Intellectual Property to be
registered with any relevant registry or other authority, and promptly do all
things and execute all documents necessary to enable such particulars or
interests to be registered with any relevant registry or other authority;

(b) Deeds

save where the Agent otherwise permits and upon written request from the Agent,
deposit with the Agent (or as it shall direct) and permit the Agent to hold and
retain all deeds and documents relating to or constituting any of the Collateral and
hold on trust for the Agent for the benefit of the Beneficiaries any such deeds and
documents not for the time being so deposited (and the Chargor hereby declares
itself as trustee accordingly);

(c) Registrations

make all such filings and registrations and take all such other steps as may be
reasonably necessary in connection with the creation, perfection or protection of
the Security and pay all application, registration, renewal and other fees necessary
for effecting, protecting, maintaining or renewing registrations in respect of any
of the Collateral;

(d) Value of the security

not do or cause or knowingly permit to be done anything which may in any way
materially depreciate, jeopardise or otherwise prejudice the value of the Security;
and

(e) Dealings with the Collateral

save as permitted in the Finance Documents, not amend, vary, supplement, replace,
release, novate, waive, surrender, determine, discharge, rescind or avoid any of the
Collateral nor compound, grant any time or other indulgence or otherwise deal with
any of the Collateral nor purport to do so (save, in the case of its assets charged
by this Debenture by way of floating charge only, in the ordinary course of its
operations).

4.4 Information Covenants

(a) General

The Agent may at any time seek from any person having a professional or trading
relationship with the Chargor such information about the Chargor and its affairs as
the Agent may think fit. The Chargor authorises and requests any such person to
provide any such information to the Agent and agree to provide such further
authority for this purpose as the Agent may reasonably require from time to time.

(b) Investigations

So long as an Event of Default has occurred and is continuing, the Chargor
authorises the Agent to communicate directly with its independent, certified or
chartered public accountants and authorises and requests those accountants and
advisors to disclose and make available to the Agent any and all financial
statements, and other supporting financial documents, schedules and information
relating to the Chargor (including copies of any issued management letters) with
respect to the business financial affairs and other conditions of the Chargor.

(c) Other Reporting Obligations

Subject always to Clause 8, the Chargor shall promptly inform the Agent of any
material additions to or deletions from the Collateral and shall agree to (i) any
consequential amendments to any relevant Schedules with the Agent and (ii) any
replacement of such Collateral as the Agent may reasonably require. If (i) the
Chargor becomes aware of any action, event or circumstance which would adversely
affect the value, saleability or use of any Collateral or (ii) the Chargor becomes
aware of any action or proceeding by a creditor, supplier or other person to seize
or repossesses any of the Collateral, then in each case it shall promptly notify the
Agent in writing and provide details of the same, and at the cost of the Chargor, it
shall take such action as the Agent may reasonably require regarding such action,
event, circumstance or proceeding.

5. COLLECTION OF RECEIVABLES AND RELATED MATTERS

The Chargor covenants with the Agent for the benefit of the Beneficiaries that it will:

(a) Collection

collect (as agent of the Agent), get in and realise its Receivables in the ordinary
course of its business on behalf of the Agent, pay the proceeds into a Receivables
Account forthwith on receipt (and pending that payment hold these proceeds on trust
for the Agent) and not release, exchange, compound, set off, grant time or
indulgence or subordinate its rights in respect of any of its Receivables to the
rights of any other person in relation to debts owed to such person or otherwise
deal with its Receivables in favour of any person (nor, in each such case, purport
to do so) save in the ordinary course of its business and, in any event, not sell,
assign, factor, discount or otherwise create or permit to subsist any Lien over its
Receivables in favour of any person, nor purport to do so;

(b) Perfection of Assignment of Receivables

at any time after the occurrence and during the continuation of any Event of Default
and at any other time when any of the circumstances set out in Clause 9.2(a)
sub-paragraphs (ii) to (iv) (inclusive) applies and it is requested to do so by the
Agent and without prejudice to the generality of Clause 9.1, take such steps as the
Agent may require to perfect the assignment of its Receivables and each Receivables
Account assigned pursuant to Clause 3.3 including, without prejudice to the
generality of the foregoing and without prejudice to the Agent’s right to do so,
giving notice of any such assignment to any of the persons (as the Agent shall
specify) from whom such Receivables are due, owing or incurred by delivery to each
such person of a Notice of Assignment duly executed by the Chargor and procuring
that each such person delivers to the Agent (if the Agent so requires) a written
acknowledgement substantially in the form of the acknowledgement and agreement
attached to the Notice of Assignment;

(c) Account Notice

within 21 days after execution of this Debenture in respect of any Receivables
Account listed in Schedule 3 and forthwith upon opening any new Receivables Account,
deliver an Account Notice duly executed by it to the entity with which the relevant
account is maintained and use its best endeavours to procure that such entity
delivers to the Agent a written acknowledgement substantially in the form of the
acknowledgement and agreement attached to the Account Notice; and

(d) Sales of Inventory for Cash

If sales of Inventory are made or services are rendered, the Chargor shall
immediately pay into a Receivables Account denominated in the currency of such
Receivables the identical cheques, cash or other forms of payment or remittance
which it receives.

6. INSURANCE

Within 21 days after execution of this Debenture, the Chargor undertakes to give a Notice of
Assignment to its insurers that it has assigned its rights under the Policies to the Agent
under this Debenture and it will use all reasonable endeavours to procure that each insurer
served with any such Notice of Assignment countersigns and returns the notice to the Agent
within 14 days of the execution of this Debenture.

7. INVESTMENTS

7.1 Covenants

The Chargor covenants with the Agent for the benefit of the Beneficiaries that it will,
without prejudice to the generality of the provisions of Clause 13:

(a) Deposit of documents of title

deposit with the Agent (or as it shall direct) immediately upon execution of this
Debenture (in relation to any Securities listed in Schedule 6), and immediately upon
receipt following its acquisition of any Investments and at any other time upon the
Agent’s request, all stock and share certificates or other documents evidencing an
entitlement to such Investments together with stock transfer forms duly stamped and
executed in blank and left undated in respect of all such Securities on the basis
that the Agent shall be able to hold such documents of title and stock transfer
forms until the Secured Obligations have been irrevocably and unconditionally
discharged in full and shall be entitled, at any such time that it is permitted to
do so in accordance with the terms of this Debenture to complete under its power of
attorney given by Clause 13 below the stock transfer forms on behalf of the Chargor
in favour of itself or such other person as it shall select, provided that, in the
event of any such transfer being effected, neither the Agent nor any of its nominees
shall be liable for any loss occasioned by any exercise or non-exercise of rights
attached to such Investments or by any failure to report to the Chargor any notice
or other communication received in respect of such Investments;

(b) Conversion

immediately on conversion of any Securities from certificated to uncertificated
form, and on the creation or conversion of any other securities which are for the
time being comprised in the Related Rights in or into uncertificated form, comply
with such written instructions or directions as the Agent may give in order to
protect, perfect or preserve the Security;

(c) No restrictions on transfer

ensure that its Investments are at all times free from any restriction on transfer
by the Agent or its nominee to perfect or enforce the Security and procure that the
board of directors of any company in which any of its Investments are held approves
any transfer of any of its Investments desired to be made by the Agent or its
nominee in the exercise of the rights, powers and remedies conferred upon it by this
Debenture or by law;

(d) Related Rights

unless it is permitted to retain such Related Rights in accordance with the terms of
this Debenture, upon the accrual, offer or issue of any Related Rights deriving from
its Investments, deliver to the Agent (or procure the delivery to the Agent of) all
such Related Rights and the certificates and documents of title to or representing
the same together with each of the documents required to be duly executed, completed
and delivered under and in accordance with the terms of this Clause 7;

(e) Calls

duly and promptly pay or procure the payment of all calls, instalments and other
payments when due in respect of any of its Investments, provided that if the Chargor
defaults in making any such payment, the Agent may (but shall not be obliged to) pay
such amounts on behalf of the Chargor and shall be reimbursed by the Chargor
immediately on demand;

(f) Communications

notify the Agent of the contents of any communication or document received by it in
relation to any of its Investments; and

(g) Variation of rights

not, without the prior written consent of the Agent, by the exercise of any voting
rights or otherwise, permit or agree to any proposed compromise, capital
reorganisation, conversion, exchange or repayment offer affecting or in respect of
any of its Investments or to any variation of the rights attaching to or conferred
by any of its Investments or to any conversion of any of its Investments into an
uncertificated security.

7.2 Voting Rights and Dividend Entitlement

	 	(a)	 	At any time when the Security is enforceable in accordance with the terms of
this Debenture, all dividends and other distributions paid or payable in connection
with the Securities shall be paid directly to the Agent (or its nominee) for
application to the Secured Obligations in accordance with the terms of the Note
Purchase Agreement but before such time the Chargor shall be entitled to receive and
retain all such dividends and other distributions;

	 	(b)	 	Unless the Security is enforceable in accordance with the terms of this
Debenture, the Agent or its nominee shall use its reasonable endeavours promptly to
forward to the Chargor all notices, correspondence and/or other communications it
receives in relation to the Security Assets; and

	 	(c)	 	Subject to Clause 7.3, unless the Security is enforceable in accordance with
the terms of this Debenture, all voting rights attached to the Securities may be
exercised by the Chargor or, where the Securities have been registered in the name of
the Agent or its nominee, as the Chargor may direct in writing, and the Agent or its
nominee shall execute any form of proxy or other document reasonably required in order
for the Chargor to do so, provided, however, that the Chargor may not exercise voting
rights inconsistent with the terms of this Debenture or the Note Purchase Agreement or
in any manner prejudicial to the interests of the Beneficiaries under this Debenture.

7.3 Default Powers

At any time while the Security is enforceable in accordance with the terms of this Debenture
and without any further consent or authority on the part of the Chargor, the Agent or its
nominee may exercise (or refrain from exercising) at its discretion in the name of the
Chargor (or the registered holder thereof) in respect of any of the Securities any voting
rights and any powers or rights which may be exercised by the person or persons in whose
name or names the Securities are registered or who is the holder or bearer of them.

7.4 Continuing liabilities

Subject to due notification thereof by the Agent where the Securities are registered in the
Agent’s name (or that of its nominee) in accordance with the terms of this Debenture, it is
expressly agreed that the Chargor shall remain liable to observe and perform all of the
conditions and obligations attaching to any of the Securities including the payment of any
sum due in respect of the Securities.

7.5 No obligation

The Agent shall not be required to perform or fulfil any obligation of the Chargor in
respect of the Investments or to make any payment, or to make any enquiry as to the nature
or sufficiency of any payment received by it or the Chargor, or to present or file any claim
or take any other action to collect or enforce the payment of any amount to which it may
have been or to which it may be entitled under this Debenture at any time or times.

7.6 Retention of Documents

The Agent may retain any document delivered to it under this Debenture until the Security is
released in accordance with the terms of this Debenture and, if for any reason it ceases to
hold any such document before that time, it may by notice to the Chargor require that the
relevant document be redelivered to it and the Chargor shall promptly comply (or procure
compliance) with that notice.

8. NEGATIVE PLEDGE

The Chargor undertakes in favour of the Agent for the benefit of the Beneficiaries that it
will not, save as permitted pursuant to the terms of the Note Purchase Agreement or any
other Finance Document:

(a) Liens

create or permit to subsist any Lien over all or any part of the Collateral (other
than the security interests created pursuant to the First Ranking Debenture and the
Security) other than in the ordinary course of business or any interest therein
ranking in priority to, pari passu with or subsequent to the Security, nor enter
into any agreement to do any of the same;

(b) Disposals

sell, transfer, assign, lease out, lend or otherwise dispose of (whether outright or
otherwise), or grant any rights (whether of pre-emption or otherwise) over, all or
any part of the Collateral or any interest therein, nor enter into any agreement to
do any of the same (save in the ordinary course of its operations on arm’s length
terms in the case of assets of the Chargor charged by this Debenture by way of
floating charge only); or

(c) Material Prejudice

do or cause or permit to be done anything which may materially depreciate,
jeopardise or otherwise materially prejudice the market value or collateral value of
any Collateral or the rights of the Agent under this Debenture.

9. FURTHER ASSURANCE AND PERFECTION OF SECURITY

9.1 Further Assurance

	 	(a)	 	The Chargor shall, at its own expense, promptly following written request by
the Agent execute and do all such acts, deeds and things (including, without
limitation, payment of all stamp duties and registration fees) the Agent may reasonably
require for:

	 	(i)	 	perfecting or better perfecting or protecting the security created (or
intended to be created) by this Debenture over any Collateral (including for
the avoidance of doubt arranging for any Securities which are in registered
form to be registered in the name of the Agent for the benefit of the
Beneficiaries or a nominee of the Agent); and

	 	(ii)	 	after the security constituted by this Debenture has become
enforceable in accordance with the terms of this Debenture, facilitating the
realization of any Collateral or the exercise of any right, power or discretion
exercisable by the Agent in respect of any Collateral, including, without
limitation, the conversion of equitable security to legal security, the
execution of any transfer, conveyance, assignment or assurance of any property,
whether to the Agent or its nominees, and the giving of any notice, order or
direction and the making of any registration, which in any case, the Agent may
think necessary or desirable.

	 	(b)	 	The documents referred to in paragraph (a) above shall be in such form and
contain such provisions as the Agent reasonably requires. The obligations of the
Chargor under paragraph (a) above and this paragraph (b) shall be in addition to and
not in substitution for the covenants for further assurance deemed to be included in
this Debenture by virtue of section 1(2) of the Law of Property (Miscellaneous
Provisions) Act 1994.

	 	(c)	 	The Chargor shall, whenever requested by the Agent and at the Chargor’s cost,
affix to a visible part of such of the Collateral, or endorse or cause to be endorsed
on such documents, as the Agent shall in each case stipulate, labels, signs or
memoranda in a permanent manner and in such form as the Agent shall require (but not so
as to impede or restrict the normal use or operation thereof) referring or drawing
attention to the Security.

9.2 Conversion of Floating Charge

	 	(a)	 	Without prejudice to the Security, the Agent may at any time by notice in
writing to the Chargor convert the floating charge created by it pursuant to Clause 3.2
with immediate effect into a fixed charge or legal assignment as regards all or any of
the Collateral specified in the notice:

	 	(i)	 	at any time after the occurrence of an Event of Default which is
continuing and which is not an event described in paragraph (b) below;

	 	(ii)	 	at any time after the Agent becomes entitled to appoint a Receiver
notwithstanding it may elect not to do so or the Security is otherwise
enforceable; or

	 	(iii)	 	if the Agent considers such Collateral to be in danger of being
seized or sold under any form of distress, attachment, execution, diligence or
other legal process or to be otherwise in jeopardy; or

	 	(iv)	 	the Agent becomes aware or has reason to believe that steps have been
taken which may lead to the presentation of a petition to appoint an
administrator in relation to the Chargor or to wind up the Chargor.

	 	(b)	 	The floating charge created by the Chargor pursuant to Clause 3.2 will (in
addition to the circumstances in which the same will occur under general law)
automatically be converted with immediate effect into a fixed charge:

	 	(i)	 	on the convening of any general meeting of the members of the Chargor
for the purposes of considering any resolution for its winding-up, dissolution,
compromise, arrangement or reconstruction; or

	 	(ii)	 	on the commencement of any legal proceedings (or their renewal after
a stay) by the Chargor or any of its directors or shareholders or other person
for its winding-up or the making of an administration order (or any order
having the same or similar effect) in relation to it; or

	 	(iii)	 	on the making of an order by a competent court or the passing of a
resolution for the winding-up, dissolution, administration, compromise,
arrangement or reconstruction of the Chargor or the appointment of any
receiver, administrator, administrative receiver or any similar officer in
relation to it or any and all of its property, assets or revenues; or

	 	(iv)	 	if the Chargor fails to comply with its obligations under Clause 8 or
the Chargor takes or threatens to take any action which the Agent considers
likely to result in a breach thereof;

	 	(v)	 	upon any person taking any step with a view to levying distress
against any of the Collateral of the Chargor or any judgment creditor taking
any step with a view to enforcing against any of the Collateral of the Chargor
a judgment obtained against it whether by a warrant of execution, writ of fieri
facias, garnishee order, charging order or otherwise; or

	 	(vi)	 	if any other floating charge created by the Chargor crystallises for
any reason.

	 	(c)	 	The giving by the Agent of a notice pursuant to Clause 9.2(a) in relation to
any class of the Collateral shall not be construed as a waiver or abandonment of the
Agent’s right to serve similar notices in respect of any other class of the Collateral
or its other rights under this Debenture or any other Finance Document.

	 	(d)	 	On the giving by the Agent of a notice pursuant to Clause 9.2(a) or the
conversion of a floating charge into a fixed charge pursuant to Clause 9.2(b), the
Chargor shall, at its own expense, execute and/or deliver such documents in such form
as the Agent shall require in order to perfect such fixed charge.

9.3 Security in Jeopardy

If at any time it shall appear to the Agent that any of the Collateral is in danger of
seizure, distress, attachment, execution, diligence or other legal process, or that the
Security shall for any other reason be in jeopardy, the Agent shall be entitled without
notice to the Chargor to take possession of and hold the same or to appoint a Receiver of
such Collateral. The provisions of Clause 10 shall govern the appointment, removal and
powers of a Receiver appointed under this Clause 9.3 as if it were a Receiver appointed
under Clause 10 and the Chargor shall, at its own expense, promptly execute such deeds and
other agreements and otherwise take whatever action the Agent may require in order to enable
the Agent to exercise its rights contained in this Clause 9.3.

10. RECEIVER

10.1 Appointment of Receiver

If:

(a) the Chargor requests that a Receiver be appointed; or

	 	(b)	 	the Agent becomes aware of the intention of any party to petition for an
administration order to be made in relation to the Chargor or any such petition is
presented; or

	 	(c)	 	the Chargor fails duly and punctually to perform or discharge any of the
Secured Obligations or any Event of Default occurs which has not been waived or cured
in accordance with the terms thereof,

then at any time or times thereafter the Security shall be enforceable and (without
prejudice to any of its other rights under this Debenture) the Agent may by writing appoint
any person or persons to be a Receiver of any of the Collateral and of the rights of the
Agent contained in this Debenture in relation thereto. Section 109(1) of the Act shall not
apply to this Debenture.

10.2 Joint Receivers

Where two or more persons are appointed to be a Receiver, the Agent may in the appointment
declare whether any act required or authorised to be done by a Receiver is to be done by any
one or more of them for the time being holding office and, subject thereto, any such persons
may act jointly and/or severally.

10.3 General Powers of Receiver

Any Receiver of any of the Collateral shall (subject to any limitations or restrictions
which the Agent may in its absolute and unfettered discretion incorporate in the deed or
other instrument appointing him but notwithstanding the liquidation, winding-up, or
dissolution at any time of the Chargor and whether or not any such Receiver shall be an
administrative receiver) have:

	 	(a)	 	all the powers conferred from time to time on receivers (whether
administrative receivers or otherwise) by law and/or statute (including the Act and the
Insolvency Act 1986) so that the provisions set out in Schedule 1 to the Insolvency Act
1986 shall extend to every Receiver, whether or not an administrative receiver;

	 	(b)	 	power on behalf and at the cost of the Chargor and whether in the name of the
Chargor or otherwise to exercise all the powers and rights of an absolute owner and do
or omit to do anything which the Chargor could do or omit to do or could have done or
omitted to do but for any incapacity or the appointment of a liquidator, administrator
or like officer in relation to the Chargor or the Collateral; and

	 	(c)	 	power to use the name of the Chargor in connection with the exercise of any of
such powers and, without prejudice to the generality of the provisions of Clauses
10.3(a) and 10.3(b), on behalf and at the cost of, and in the name of the Chargor or
otherwise, the powers referred to in Clause 10.4.

10.4 Specific Powers of Receiver

Any Receiver shall, in relation to the Chargor and the Collateral in respect of which it is
appointed, have the power to:

	 	(a)	 	carry on, manage, develop, reconstruct, amalgamate or diversify (or concur in
managing, developing, reconstructing, amalgamating or diversifying) the business of the
Chargor or any part thereof or concur in so doing;

	 	(b)	 	purchase, acquire, accept a lease or licence of and/or any other interest in
and/or develop or improve properties or other assets without being responsible for loss
or damage;

	 	(c)	 	raise or borrow any money (including, without limitation, money for the
completion, with or without modification, of any building on the Property in the course
of construction and any development or project in which the Chargor was engaged) from,
or incur any other liability to, the Agent and/or others on such terms as he may think
fit and secure the payment of any such money and liabilities, whether or not in
priority to the Secured Obligations, in such manner as he shall think fit and with or
without any encumbrance on or affecting any of such Collateral and enter into any form
of hedging arrangement, whether in relation to any such borrowing or any Secured
Obligation or otherwise, on such terms as he shall think fit;

	 	(d)	 	without the restrictions imposed by section 103 of the Act, or the need to
observe any of the provisions of sections 99 and 100 of the Act, sell by public auction
or private contract, convey, transfer, assign, let, surrender or accept surrenders,
grant licences or otherwise dispose of or deal with such Collateral or concur in so
doing in such manner, for such consideration and generally on such terms and conditions
as he may think fit;

	 	(e)	 	sever plant, machinery and other fixtures and sell them separately from that
part of any Property containing them and pending any such sale use the same without
cost to the Receiver and without any liability to the Chargor in connection with the
use thereof;

	 	(f)	 	promote the formation of companies with a view to the same purchasing,
leasing, licensing or otherwise acquiring interests in such Collateral, or otherwise
arrange for such companies to trade or cease to trade and to purchase, lease, license
or otherwise acquire any of such Collateral on such terms and conditions whether or not
including payment by instalments secured or unsecured as he may think fit;

	 	(g)	 	make and effect such repairs, renewals and improvements to such Collateral as
he may think fit and maintain, renew, take out or increase insurances;

	 	(h)	 	appoint managers, agents, officers and employees for any of the purposes set
out in Clauses 10.3 and 10.4 or to guard or protect such Collateral at such salaries
and commissions and for such periods and on such terms as he may determine and may
dismiss the same;

	 	(i)	 	make calls, conditionally or unconditionally, on the members of the Chargor in
respect of uncalled capital;

	 	(j)	 	exercise for and on behalf of the Chargor all the powers and provisions
conferred on a landlord or a tenant by the Landlord and Tenant Acts 1927 — 1988
(inclusive) or any other legislation from time to time in force relating to rents in
respect of any part of the Property but without any obligation to exercise any of such
powers and without any liability in respect of powers so exercised or omitted to be
exercised; and

	 	(k)	 	sign any document, execute any deed and do all such other acts and things,
whether in the name of the Chargor or otherwise, in relation to, or as may be
considered by him to be incidental or conducive to, any of the matters or powers
aforesaid or to the protection and/or realisation of the security constituted or
intended to be constituted by this Debenture.

10.5 Receiver as Agent

Any Receiver of any of the Collateral shall, so far as the law allows, be deemed to be the
agent of the Chargor for all purposes and the Chargor shall be solely responsible for their
acts, defaults, contracts, engagements, omissions, losses, liabilities, misconduct and
remuneration and the Agent shall not be under any liability whatsoever in such regard.

10.6 Remuneration

The remuneration of the Receiver shall be such sum or rate payable in such manner as may be
agreed between him and the Agent at or at any time after his appointment without being
limited to the maximum rate specified in section 109(6) of the Act.

10.7 Removal

The Agent may from time to time remove any Receiver appointed by it and, in the case of an
administrative receiver, may at any time and from time to time apply to the court for
removal of any administrative receiver appointed by it and may, whenever it may deem it
expedient, appoint or as the case may be apply to the court for the appointment of another
qualified person as a new Receiver in place of any Receiver whose appointment may for any
reason have terminated.

10.8 Application of Proceeds

Any Receiver shall (so far as the law allows) apply all monies received by him in the
following order:

	 	(a)	 	in the payment of any costs, charges and expenses of or incidental to the
Receiver’s appointment, the payment of his remuneration and the payment and discharge
of any other expenses incurred by or on behalf of the Receiver;

	 	(b)	 	in or towards payment of any debts or claims which are by statute payable in
preference to the Secured Obligations but only to the extent to which such debts or
claims have such preference;

	 	(c)	 	in or towards payment and discharge of the balance of the Secured Obligations
in accordance with the terms of or as contemplated by the Finance Documents; and

	 	(d)	 	in payment of the surplus (if any) to the Chargor or other person entitled
thereto.

10.9 Small Company Moratorium

Notwithstanding any other provision of this Debenture, the obtaining of a moratorium under
section 1A of the Insolvency Act 1986, or anything done with a view to obtaining a
moratorium (including any preliminary decision or investigation), shall not be an event
causing the floating charge created by this Debenture to crystallise or causing restrictions
which would not otherwise apply to be imposed on the disposal of property by the Chargor or
a ground for the appointment of a Receiver.

10.10 Administrator

For the avoidance of doubt, the foregoing provisions of this clause are without prejudice to
the Agent’s rights to appoint an administrator pursuant to paragraph 14 of Schedule B1 of
the Insolvency Act 1986 with all the powers conferred on administrators under the Insolvency
Act 1986.

11. VARIATION AND EXTENSION OF STATUTORY POWERS

11.1 Statutory Powers Generally

The powers conferred on mortgagees or receivers (including administrative receivers) by the
Act and the Insolvency Act 1986 shall apply to this Debenture except insofar as they are
expressly or impliedly excluded and where there is any ambiguity or conflict between the
powers contained in the Act and/or the Insolvency Act 1986 and those contained in this
Debenture the terms of this Debenture shall (so far as the law allows) prevail.

11.2 Agent’s Powers

The restrictions contained in sections 93 and 103 of the Act shall not apply to the Security
and the power of sale and other powers contained in section 101 of the Act and all other
enforcement powers conferred in this Debenture shall be immediately exercisable at any time
after the occurrence of an Event of Default and shall be varied and extended so that the
Agent shall at any such time be entitled (without prejudice to any other rights or powers of
a mortgagee) to exercise any of the powers conferred upon a Receiver by Clause 10 and shall
have the benefit of all the provisions of Clause 10.

11.3 Mortgagee in Possession

It is agreed and declared that no exercise (whether by the Agent or any Receiver) of any of
the powers contained in this Debenture shall render the Agent or any Receiver liable as
mortgagee in possession in respect of any of the Collateral or liable for any loss or damage
(including, without limitation, loss upon realisation of any of the Collateral) save where
caused by gross negligence or wilful default on the part of the Agent or any Receiver.

11.4 Protection for Third Parties

No person (including a purchaser) dealing with the Agent, any Receiver or any of their
respective agents will be concerned to enquire:

(a) whether the Secured Obligations have become payable; or

	 	(b)	 	whether any power which the Agent or any Receiver is purporting to exercise
has become exercisable; or

(c) whether any money remains due under the Finance Documents; or

(d) how any money paid to the Agent or any Receiver is to be applied.

In the absence of bad faith on the part of such purchaser or other person, such dealings
shall be deemed, so far as regards the safety and protection of such purchaser or other
person, to be within the powers conferred by this Debenture and to be valid accordingly.
The remedy of the Chargor in respect of any impropriety or irregularity in the exercise of
such power shall be in damages only.

11.5 Delegation

The Agent or any Receiver may at any time on giving prior written notice to the Chargor
delegate by power of attorney or in any other manner to any person or persons any of the
powers (including the power of attorney contained in Clause 13.1), authorities and
discretions which are for the time being exercisable by the Agent or any Receiver under this
Debenture in relation to the Collateral. Any such delegation may be made upon such terms
(including power to sub-delegate) and subject to such regulations as the Agent or Receiver
may think fit. Neither the Agent nor any Receiver shall be in any way liable or responsible
to the Chargor for any loss or damage arising from any act, default, omission or misconduct
on the part of any such delegate or sub-delegate.

11.6 Suspense Accounts

The Agent and any Receiver may at any time and from time to time place and keep (for such
time as it or he shall consider prudent) any monies received, recovered or realised from the
Chargor or in relation to any Collateral pursuant to this Debenture in a separate suspense
account (to the credit of either the Chargor or the Agent as the Agent shall think fit)
without any intermediate obligation on its part to apply the same or any part thereof in or
towards the discharge of the Secured Obligations provided that if such monies are at any
time sufficient to discharge the Secured Obligations in full, they shall be promptly so
applied.

11.7 Agent’s Power to Remedy Breaches

If at any time the Chargor fails to perform any of the covenants contained in this Debenture
it shall be lawful for the Agent, but the Agent shall have no obligation, to take such
action on behalf of the Chargor (including, without limitation, the payment of money) as may
in the Agent’s reasonable opinion be required to ensure that such covenants are performed.
Any losses, costs, charges and expenses incurred by the Agent in taking such action shall be
reimbursed by the Chargor immediately on written demand.

12. CONTINUATION AND PRESERVATION OF SECURITY

12.1 Subsequent Liens

If the Agent or any other Beneficiary receives, or is deemed to be affected by, notice,
whether actual or constructive, of any Lien (other than a Lien which is permitted under the
terms of the Finance Documents) affecting the Collateral and/or the proceeds of sale
thereof, the Agent or such other Beneficiary may open a new account or accounts for the
Chargor in its books. If the Agent or such other Beneficiary does not open a new account, it
shall nevertheless be treated as if it had done so at the time when it received or was
deemed to have received notice (unless it gives express notice to the contrary to the
Chargor). As from that time all payments made to the Agent or such other Beneficiary will
(in the absence of any express appropriation to the contrary) be credited or be treated as
having been credited to the new account and will not operate to reduce the Secured
Obligations.

12.2 Waiver of defences

The Chargor shall be deemed to be a principal debtor and the sole, original and independent
obligor for the Secured Obligations and the Collateral shall be deemed to be a principal
security for the Secured Obligations. The liability of the Chargor under this Debenture
shall not be discharged, impaired or otherwise affected by any circumstance, act, omission,
matter or thing which but for this provision might operate to reduce, release, prejudice or
otherwise exonerate the Chargor from its obligations under the Finance Documents in whole or
in part, including without limitation and whether or not known to any Obligor, the Agent or
any other person:

	 	(a)	 	the winding-up, dissolution, administration or re-organisation of the Chargor
or any other person or any change in its status, function, control or ownership; or

	 	(b)	 	any time, indulgence, waiver or consent granted to, or composition with, the
Chargor or any other person; or

	 	(c)	 	the release of the Chargor or any other person under the terms of any
composition or arrangement with any creditor of the Chargor or any of its Affiliates;
or

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

	 	(e)	 	any legal limitation, disability, incapacity or lack of power, authority or
legal personality of or dissolution or change in the members or status of, or other
circumstance relating to, the Chargor or any other person; or

	 	(f)	 	any variation (however fundamental and whether or not involving any increase
in the liability of the Chargor or any other Obligor thereunder) or replacement of any
Finance Document or any other document or security; or

	 	(g)	 	any unenforceability, illegality, invalidity or frustration of any obligation
of the Chargor or any other person under any Finance Document or any other document or
security, or any failure of the Chargor or any other Obligor to become bound by the
terms of any other Finance Document, in each case whether through any want of power or
authority or otherwise; or

	 	(h)	 	any postponement, discharge, reduction, non-provability or similar
circumstances affecting any obligation of the Chargor or any other Obligor under a
Finance Document resulting from any insolvency, liquidation or dissolution proceedings
or from any law, regulation or order,

so that the Chargor’s obligations under this Debenture remain in full force and effect and
that this Debenture shall be construed accordingly as if there were no such circumstance,
act, omission, matter or thing.

12.3 Immediate recourse

The Chargor waives any right it may have of first requiring the Agent (or any trustee or
agent on its behalf) to proceed against or enforce any other rights or security in respect
of the Secured Obligations or claim payment from any person before enforcing the Security.
This waiver applies irrespective of any law or provision of the Finance Documents to the
contrary.

12.4 Non-competition

Subject as provided below, until the Agent is satisfied that all of the Secured Obligations
have been unconditionally and irrevocably paid and discharged in full in cash, the Chargor
shall not, by virtue of any payment made, security realised or moneys received or recovered
under any of the Finance Documents for or on account of the liability of any Obligor:

	 	(a)	 	be subrogated to any rights, security or moneys held, received or receivable
by the Agent or any other Beneficiary or be entitled to any right of contribution or
indemnity; or

	 	(b)	 	claim, rank, prove or vote as a creditor of any Obligor or its estate in
competition with the Agent or any other Beneficiary; or

	 	(c)	 	receive, claim or have the benefit of any payment, distribution or security
from or on account of any Obligor, or exercise any right of set-off against any
Obligor.

The Chargor shall hold in trust for and forthwith pay or transfer to the Agent for the
benefit of the Beneficiaries any payment or distribution or benefit of security received by
it contrary to the above. If the Chargor exercises any right of set-off contrary to the
above it will forthwith pay an amount equal to the amount set off to the Agent for the
benefit of the Beneficiaries. Notwithstanding the foregoing, following any enforcement of
the Collateral by the Agent under this Debenture, the Chargor will (at its own cost)
promptly take such steps or actions as are referred to above as the Agent may from time to
time stipulate.

12.5 Security held by the Chargor

The Chargor warrants that it has not taken, and agrees that it will not take, from any other
Obligor or any person party to any related security any Lien, guarantee, indemnity, bond or
other assurance in respect of or in connection with its obligations under this Debenture.
If the Chargor takes any such Lien, guarantee, indemnity, bond or other assurance in
contravention of this Clause, it shall hold it on trust for the Beneficiaries until such
time as all of the Secured Obligations have been satisfied in full (and the Beneficiaries
are not under any further obligation, actual or contingent, to any Obligor) and shall on
request promptly deposit the same with and/or charge the same to the Beneficiaries in such
manner as the Agent may require as security for the due and punctual payment, performance
and discharge by the Chargor of the Secured Obligations.

12.6 Continuing Security

The Security constituted by this Debenture shall be a continuing security and will extend to
the ultimate balance of the Secured Obligations notwithstanding any interim or intermediate
payment, discharge or settlement of account or other matter whatsoever and is in addition to
and shall not merge with or otherwise prejudice or affect (or be prejudiced or affected by)
the security constituted by any Lien, guarantee or other assurance now or hereafter held by
the Agent or any right or remedy of the Agent in respect of the same and shall not be in any
way prejudiced or affected by the invalidity thereof, or by the Agent now or hereafter
dealing with, exchanging, releasing, modifying or abstaining from perfecting or enforcing
any of the same, or any rights which it may now or hereafter have, or giving time for
payment or indulgence or compounding with any other person liable.

13. POWER OF ATTORNEY

13.1 Appointment

The Chargor, by way of security, hereby irrevocably appoints the Agent and the persons
deriving title under it and separately any Receiver jointly or severally to be its attorney
or attorneys for them (with full power of substitution and delegation) and in the name and
on behalf and as its act and deed to sign, seal, execute, deliver, perfect and do all deeds,
instruments, acts and things which may be required:

	 	(a)	 	for carrying out any obligations imposed on the Chargor by or pursuant to this
Debenture;

	 	(b)	 	following the occurrence of an Event of Default that is continuing, for
carrying any sale, lease or other dealing whatsoever by the Agent or Receiver into
effect;

	 	(c)	 	following the occurrence of an Event of Default that is continuing, for
conveying or transferring any legal estate or other interest in land or any other
property whatsoever;

	 	(d)	 	following the occurrence of an Event of Default that is continuing, for
getting in all or any part of the Collateral; and

	 	(e)	 	generally for enabling the Agent and any Receiver to exercise the respective
powers, authorities and discretions conferred on them by or pursuant to this Debenture
or by law.

The provisions of this Clause 13.1 shall take effect as and by way of variation to the
provisions of sections 109(6) and 109(8) of the Act which provisions as so varied and
extended shall be deemed incorporated in this Debenture as if they related to a receiver of
the Collateral and not merely a receiver of the income thereof.

13.2 Ratification

The Chargor covenants with the Agent and separately with any Receiver that, on request, it
will ratify and confirm all security agreements, documents and acts and all transactions
entered into by the Agent or any Receiver (or by the Chargor at the instance of the Agent or
any Receiver) in the exercise or purported exercise of its or his powers set out in this
Debenture and the Chargor irrevocably acknowledges and agrees that the power of attorney
contained in Clause 13.1 is given to secure the proprietary interest of, and the performance
of obligations owed to, the respective donees within the meaning of the Powers of Attorney
Act 1971.

14. INDEMNITIES

14.1 General

The Chargor hereby unconditionally and irrevocably agrees as primary obligor and not merely
as surety to indemnify and hold harmless the Agent (and its nominees), each other
Beneficiary from time to time and any Receiver on demand against all losses, actions,
claims, expenses, demands or liabilities whether in contract, tort or otherwise now or
hereafter incurred by any of them or by any of their respective managers, agents, officers
or employees occasioned by any breach by the Chargor of any of its covenants or other
obligations under this Debenture or otherwise arising out of or in connection with the
Collateral or the Security.

14.2 Taxes

The Chargor agrees to indemnify the Agent, each other Beneficiary and any Receiver on demand
against all present or future stamp or other taxes or duties and any penalties or interest
with respect thereto which may be imposed by any competent authority in connection with the
execution or enforcement of this Debenture or in consequence of any payment made pursuant
hereto being impeached or declared void for any reason whatsoever.

15. WAIVERS AND REMEDIES

15.1 Waivers

No failure or delay by any Beneficiary (or the Agent on their behalf) in exercising any
right or remedy shall operate as a waiver thereof, nor shall any single or any partial
exercise or waiver of any right or remedy preclude its further exercise or the exercise of
any other right or remedy as though no waiver had been made and no relaxation or indulgence
granted. The rights and remedies provided in this Debenture are cumulative and not
exclusive of any rights or remedies provided by law.

15.2 Severability

If any provision of this Debenture shall be prohibited, invalid or unenforceable under
applicable law, it shall be ineffective only to such extent and in the relevant
jurisdiction, without invalidating the remainder of this Debenture.

16. REINSTATEMENT AND RELEASE

16.1 Reinstatement

Any settlement or discharge under this Debenture between the Chargor and the Agent or the
Beneficiaries (or any of them) shall be conditional upon no security or payment to the Agent
or the Beneficiaries (or any of them) by any Obligor or the Chargor or any other person on
behalf of any Obligor or, as the case may be, the Chargor being avoided or set aside or
ordered to be refunded or reduced by or pursuant to any applicable law or regulation and, if
such condition is not satisfied, the Agent and/or the Beneficiaries shall be entitled to
recover from the Chargor on demand the value of any such security or the amount of any such
payment as if such settlement or discharge had not occurred.

16.2 Release

Once all the Secured Obligations have been paid in full in cash and neither the Agent nor
any other Beneficiary has any contingent liability to advance further monies to, or incur
liability on behalf of, the Chargor or any other Obligor, the Agent and each other
Beneficiary shall, at the request and cost of the Chargor, take any action which may be
necessary to release, discharge and reassign the Collateral from the Security.

17. DECLARATION OF TRUST

The Agent hereby declares that it holds the security constituted by this Debenture as a
trustee for and on behalf of the Beneficiaries on the basis of the duties, obligations and
responsibilities set out in the Collateral Agency Agreement and shall have no implied
duties, obligations or responsibilities (including without limitation but only to the extent
permitted by law any duties, obligations or responsibilities provided for pursuant to the
terms of the Trustee Act 2000 or otherwise). The proceeds of any enforcement of the
security constituted by this Debenture shall be applied in accordance with the provisions of
the Note Purchase Agreement and the Collateral Agency Agreement.

18. CURRENCY

Any amount received or recovered by the Agent for the benefit of the Beneficiaries in
respect of any sum expressed to be due to it from the Chargor under this Debenture in a
currency other than the currency (the “contractual currency”) in which such sum is so
expressed to be due (whether as a result of, or of the enforcement of, any judgment or order
of a court or tribunal of any jurisdiction, the winding-up of the Chargor or otherwise)
shall only constitute a discharge to the Chargor to the extent of the amount of the
contractual currency that the Agent is able, in accordance with its usual practice, to
purchase with the amount of the currency so received or recovered on the date of receipt or
recovery (or, if later, the first date on which such purchase is practicable). If the
amount of the contractual currency so purchased is less than the amount of the contractual
currency so expressed to be due the Chargor shall fully indemnify the Agent against any loss
sustained by it as a result, including the cost of making any such purchase.

19. LAND REGISTRY

Wherever any application shall be made to note this Debenture in the charges register
relating to the title to any registered land of the Chargor which shall be the subject of
any of the charges constituted by this Debenture the parties hereto apply and agree to apply
to H.M. Land Registry for the following entry to be made on the register of the Chargor’s
title relating to any such registered land:

“No disposition or other dealing by the proprietor of the land is to be registered or noted
on the register without the consent of the proprietor for the time being of the charge
referred to in entry no. [?] of the Charges Register”.

20. NOTICES

20.1 General

Any demand, notice or other communication or document to be made on or delivered to the
Chargor under this Debenture or in respect of the Secured Obligations shall be made or
delivered by fax or otherwise in writing and shall be treated as having been served if
served in accordance with Clause 20.2. Each demand, notice, communication or other document
to be made on or delivered to any party to this Debenture may (unless that party has by 10
working days’ written notice to the other party or parties specified another address or fax
number) be made or delivered to that other person at the address or fax number set out under
its name at the end of this Debenture. For the purpose of this Clause 20 the term “working
day” shall mean a day (other than a Saturday or a Sunday or a bank or public holiday) upon
which the recipient of any demand, notice, communication or other document is normally open
for business in the country of its address for service referred to in this Clause 20.1 and
references to any time of day shall be construed as references to the time of day in such
country.

20.2 Mode of Service

Service of any demand, notice, communication or other document to be made or delivered under
this Debenture may be made:

(a) by leaving it at the relevant address for service referred to in Clause 20.1;

	 	(b)	 	by sending it by pre-paid first class letter (or by airmail if to or from an
address outside the United Kingdom) through the post to the relevant address for
service referred to in Clause 20.1; or

	 	(c)	 	by fax to the relevant fax number referred to in Clause 20.1 and so that any
fax shall be deemed to be in writing and, if it bears the signature of the server or
its authorised representative or agent, to have been signed by or on behalf of the
server.

20.3 Deemed Service

Any demand, notice, communication or other document from the Chargor shall be irrevocable
and shall not be effective until its actual receipt by the Agent. Any other demand, notice,
communication or other document shall be served or treated as served at the following times:

	 	(a)	 	in the case of service personally or in accordance with Clause 20.2(a), at the
time of such service;

	 	(b)	 	in the case of service by post, at 9.00am on the working day next following
the day on which it was posted or, in the case of service to or from an address outside
the United Kingdom, at 9.00am on the fourth working day following the day on which it
was posted; and

	 	(c)	 	in the case of service by fax, if sent before 9.00am on a working day, at
11.00am on the same day, if sent between 9.00am and 5.30pm on a working day, two hours
after the time of such service or, if sent after 5.30pm on a working day, or if sent on
a day other than a working day, at 9.00am on the next following working day.

20.4 Proof of Service

In proving service of a demand, notice, communication or other document served:

	 	(a)	 	by post, it shall be sufficient to prove that such demand, notice,
communication or other document was correctly addressed, full postage paid and posted;
and

	 	(b)	 	by fax, it shall be sufficient to prove that the fax was followed by such
machine record as indicates that the entire fax was sent to the relevant number.

21. SET OFF

	 	(a)	 	Any Beneficiary may at any time after an Event of Default has occurred
(without giving notice to the Chargor):

	 	(i)	 	set off or otherwise apply sums standing to the credit of the
Chargor’s accounts with that Beneficiary (irrespective of the terms applicable
to those accounts and whether or not those sums are then due for repayment to
that Beneficiary); and

	 	(ii)	 	set off any other obligations (whether or not then due for
performance) owed by that Beneficiary to the Chargor, in each case against any
liability of the Chargor to the relevant Beneficiary under the Finance
Documents.

	 	(b)	 	A Beneficiary may exercise its rights under Clause 21(a) notwithstanding that
the amounts concerned may be expressed in different currencies and each Beneficiary is
authorised to effect any necessary conversions at a market rate of exchange selected by
it.

	 	(c)	 	If the relevant obligation or liability is unliquidated or unascertained, the
Beneficiary may set off the amount which it estimates (in good faith) will be the final
amount of that obligation or liability once it becomes liquidated or ascertained.

22. CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

	 	(a)	 	Except as expressly provided in this Debenture, the parties do not intend that
any term of this Debenture shall be enforceable by virtue of the Contracts (Rights of
Third Parties) Act 1999 or otherwise by any person who is not a party hereto.

	 	(b)	 	The parties may rescind, vary, waive, restore, assign, novate or otherwise
dispose of all or any of their respective rights or obligations under this Debenture
without the consent of any person who is not a party hereto.

23. ASSIGNMENTS AND TRANSFERS

	 	(a)	 	The Chargor shall not be entitled to assign or transfer all or any of its
rights or obligations under this Debenture.

	 	(b)	 	The Agent may at any time assign or otherwise transfer all or any part of its
rights under this Debenture in accordance with the Finance Documents and the Chargor
authorises the Agent to execute on its behalf any document required to effect the
necessary transfer of rights and obligations.

24. GOVERNING LAW

This Debenture and the rights and obligations of the parties hereto are governed by, and
shall be construed in accordance with, English law.

IN WITNESS whereof the Chargor has duly executed this Debenture as a deed and intends to deliver
and hereby delivers the same on the date first above written and, before such delivery, this
Debenture has been duly signed on behalf of the Agent, in the manner appearing below.

3

SCHEDULE 1

Certain Equipment

All of the Equipment set out in the DML Asset Acquisition Invoice (which is deemed incorporated
herein by reference)

4

SCHEDULE 2

Intellectual Property

Part I

Patent and Patent Applications

SEE ATTACHED SCHEDULES

Part II

Trade Marks Applications and Registrations

	 	 	 
	“NEUROTREND” NO. E717686REGISTERED (COMMUNITY TRADE MARK)

	 
	 	 
	“NEOTREND”

	 	NO. E717348REGISTERED (COMMUNITY TRADE MARK)
	 
	 	 
	“PARATREND” NO. 1448637REGISTERED (UK TRADE MARK)

	 
	 	 
	“CONTINUCATH 1000”

“CAL-POD”

“CARDIOMET 4000”

+ 1255926

	 	NO. 1293369REGISTERED (UK TRADE MARK)

NO. 1254258REGISTERED (UK TRADE MARK)

NOS. 1254259

REGISTERED (UK TRADE MARK)

Part III

Registered Designs and Applications Therefor

NONE

Part IV

Copyright Works and Unregistered Designs

NONE

Part V

Other Intellectual Property

NONE

Part VI

Intellectual Property Licences

NONE

5

SCHEDULE 3

Receivables Account(s)

NONE

6

SCHEDULE 4

Details of Policies

NONE

7

SCHEDULE 5

Assignments

Part A1

Form of Notice of Assignment of Receivables

To: [?] [Debtor/Third Party]

[?] [Address]

[?] [Date]

Dear Sirs

We hereby give you notice that we have assigned by way of security pursuant to the terms of a
debenture dated [?] (such debenture, as the same may from time to time be amended, varied,
supplemented, novated or replaced being referred to as the “Debenture”) between ourselves and BCC
Acquisition II LLC (or any successor or replacement thereof) as Agent for and on behalf of certain
secured creditors (the “Agent”) all our rights, title and interest in and to the [?].

We irrevocably and unconditionally instruct and authorize you (notwithstanding any previous
instructions which we may have given you to the contrary and without requiring you to make any
reference to or seek any further authority from us or to make any enquiry as to the justification
for or validity of any notice, statement, requirement or direction) as follows:

	 	1.	 	to disclose to the Agent such information relating to the [debt/agreement] as the
Agent may, at any time and from time to time, request you to disclose to it; and

	 	2.	 	to make all payments under or arising from the [debt/agreement] to the Agent or to its
order and otherwise to comply with the terms of any written notice, statement or instructions
which you receive at any time from the Agent and which in any way relate to or purport to
relate to the Debenture or the [debt/agreement].

You should note that, by virtue of the assignment by way of security comprised in the Debenture to
which reference is made above:

	 	(i)	 	all remedies under or in relation to the [debt/agreement] or available at law
or in equity in respect thereof are exercisable by the Agent;

	 	(ii)	 	all rights to compel performance of the [specify relevant obligations] are
exercisable by the Agent; and

	 	(iii)	 	all rights, title and interest whatsoever accruing to or for the benefit of
ourselves arising from the [debt/agreement] belong to the Agent.

The terms of and the instructions and authorisations contained in this letter shall remain in full
force and effect until the Agent gives you notice to the contrary.

This letter shall be governed by and construed in accordance with English law.

Please acknowledge receipt of this letter and your acceptance of its terms and the instructions and
authorisations contained in it by signing the attached form of acknowledgement and agreement and
returning it to BCC Acquisition II LLC (marked for the attention of [?] [Contact]) at [?]
[Address].

Yours faithfully

For and on behalf of

TGC RESEARCH LIMITED

8

Part A2

Form of Acknowledgement and Agreement

	 	 	 
	To:BCC Acquisition II LLC

[?] [Address]

Attention:

	 	

	
 
	 	[?] [Date]

Dear Sirs

We acknowledge receipt of a notice dated [?] and addressed to us by TGC Research Limited (the
“Assignor”) regarding the [debt/agreement] referred to in such notice and we hereby acknowledge our
acceptance of the terms of and the instructions and authorisations contained in that notice.

We acknowledge and confirm that:

	 	(1)	 	we have not received notice that any third party has or may have any rights,
title or interest in or to, or has made or may be making any claim or demand or taking
any action in respect of, the [debt/agreement];

	 	(2)	 	no amendment, waiver or release of any rights, title or interest of the
Assignor in or to the [debt/agreement] shall be effective without your prior written
consent; and

	 	(3)	 	no termination of any such rights, title or interest in or to the
[debt/agreement] shall be effective unless we have given you 30 days early written
notice of the proposed termination and specifying the action necessary to avoid such
termination; furthermore we confirm that no breach or default on the part of the
Assignor of any of the terms of the [agreement giving rise to the debt/agreement]
shall be deemed to have occurred unless we have given notice of such breach to you
specifying how to make good such breach.

[FOR DEBTS] [We further confirm that we shall not make or exercise any claims or demands, rights of
combination, consolidation or set-off or any other equities which we may have in respect of such
debt and we shall send you copies of all statements, orders and notices given by us relating to
such debt.]

We undertake that, if we become aware at any time that any person or entity other than yourselves
has or may have any rights, title or interest in or to, or has or may be making any claim or demand
or taking any action in respect of, the [debt/agreement] we will immediately give written notice to
you of the terms of such rights, title, interest, claim, demand or action.

   

For and on behalf of

[Debtor/Third Party]

9

Part B1

Form of Notice of Assignment of Insurances

	 	 	 	 	 
	To:

	 	[?] [Insurer]

[?] [Address]
	 	

[?] [Date]

Dear Sirs

Policy number [?]

We hereby give you notice that pursuant to the terms of a debenture (the “Debenture”) dated [?] and
made between ourselves and BCC Acquisition II LLC in its capacity as Agent for and on behalf of
certain secured creditors (the “Agent”) we have assigned by way of security all proceeds of the
above policy (the “Policy”) to the Agent.

We irrevocably and unconditionally authorize you to disclose to the Agent such information relating
to the Policy and the proceeds of any claim under it as the Agent may at any time request you to
disclose and, after the occurrence of an Event of Default (as such term is defined in the
Debenture) which is continuing, to:

(a) make all payments under or arising from the Policy to the Agent or to its order; and

	 	(b)	 	otherwise comply with the terms of any written notice or instructions which you
receive at any time from the Agent in connection with the Policy or any such proceeds.

Accordingly, we hereby request that, with effect from today’s date, the Agent be noted on the
Policy as first loss payee following the occurrence of an Event of Default.

The terms of and the instructions and authorisations contained in this letter shall remain in full
force and effect until the Agent gives you notice to the contrary.

Please acknowledge receipt of this letter by signing the attached form of acknowledgement and
agreement and returning it to BCC Acquisition II LLC (marked for the attention of: [?] [Contact])
at [?] [Address].

Yours faithfully

for and on behalf of

TGC RESEARCH LIMITED

10

Part B2

Form of Acknowledgement

	 	 	 	 	 
	To:

	 	BCC Acquisition II LLC

[?] [Address]
	 	

[?] [Date ]

Attention: [?]

Dear Sirs

We acknowledge receipt of a notice dated [?] and addressed to us by TGC Research Limited (the
“Assignor”) regarding policy number [?] (the “Policy”) and acknowledge the instructions and
authorisations contained in that notice.

We acknowledge and confirm that:

	 	(1)	 	we shall forthwith endorse a memorandum on the Policy noting your interest as assignee and,
following the occurrence of an Event of Default, as first loss payee;

	 	(2)	 	after you have notified us of the occurrence of an Event of Default (as such term is used in
the notice referred to above) which is continuing and unless you notify us in writing to the
contrary, all payments in respect of claims under the Policy shall only be paid to you at the
account which you shall notify to us at that time;

	 	(3)	 	we have not received notice that any third party has or may have any rights, title or
interest in or to, or has made or may be making any claim or demand or taking any action in
respect of, the Policy;

	 	(4)	 	no change in any of the terms of the Policy shall be effective without the prior written
consent of BCC Acquisition II LLC;

(5) we shall advise you at least 30 days before any cancellation of the Policy; and

	 	(6)	 	we shall advise you immediately of any default in the payment of any premium payable in
respect of the Policy and shall allow 30 days during which payment of such premium shall be
accepted, such that the Policy shall continue in full force and effect if made by BCC
Acquisition II LLC on behalf of the Assignor and/or any other insured party.

Yours faithfully

for and on behalf of

[Insurer]

11

Form of Endorsement

Notwithstanding any other provision of this policy, the following endorsement will take effect
immediately:

	 	(1)	 	By an assignment of insurances effected by the Insured pursuant to a debenture dated [?] (the
“Debenture”) in favour of BCC Acquisition II LLC in its capacity as Agent for and on behalf of
certain secured creditors (the “Agent”) the Insured granted to the Agent all its right, title
and benefit in and to the proceeds of this insurance and all the benefits thereof.

	 	(2)	 	All claims in respect of loss or damage, if any, payable under this policy shall be paid,
following the occurrence of an Event of Default (as defined in the Debenture) first to the
Agent who is the first loss payee under the policy.

12

SCHEDULE 6

Securities

NONE

13

SCHEDULE 7

Part 1

Form of Account Notice

	 	 	 	 	 
	To:

	 	[?] [Third Party Bank]

[?] [Address]
	 	

[?] [Date]

Dear Sirs

We refer to the account in our name and maintained with you, designated “[?] Account” under account
No. [?] (the “Account”).

We hereby give you notice that we have assigned by way of security pursuant to a debenture dated
[?] (such debenture, as the same may from time to time be amended, varied, supplemented, novated or
replaced being referred to as the “Debenture”) between ourselves and BCC Acquisition II LLC (or any
successor or replacement thereof) as Agent for and on behalf of certain secured creditors (the
“Agent”) all our rights, title and interest in and to the Account and the monies from time to time
standing to its credit.

We irrevocably and unconditionally instruct and authorize you (notwithstanding any previous
instructions which we may have given you to the contrary and without requiring you to make any
reference to or seek any further authority from us or to make any enquiry as to the justification
for or validity of any notice, statement, requirement or direction) as follows:

	 	1.	 	to disclose to the Agent such information relating to the Account as the Agent may, at
any time and from time to time, request you to disclose to it;

	 	2.	 	subject to the Agent’s written directions, to hold all monies standing to the credit
of the Account to the order of the Agent;

	 	3.	 	at any time and from time to time upon receipt by you of written instructions from the
Agent (including, for the avoidance of doubt, by way of facsimile transmission) to credit and
debit the Account (as the case may require) and to act in accordance with such instructions;

	 	4.	 	to comply with the terms of any written notice, statement or instructions (including,
for the avoidance of doubt, by way of facsimile transmission) which you receive at any time
from the Agent and which in any way relate to or purport to relate to any of the Debenture,
the Account and the monies standing to the credit thereof from time to time; and

	 	5.	 	not to agree any change to the mandate for the Account without the consent of the
Agent.

The instructions and authorisations which are contained in this letter shall remain in full force
and effect until the Agent gives you written notice revoking them.

In any circumstances where you are required under the terms of this letter to act on the
instruction of the Agent, you shall act only on the instruction of [?] or [?].

This letter shall be governed by and construed in accordance with English law.

Please acknowledge receipt of this letter and your acceptance of the instructions and
authorisations contained in it by signing the attached form of acknowledgement and agreement and
returning it to BCC Acquisition II LLC (marked for the attention of [?] [Contact]) at [?]
[Address].

Yours faithfully

for and on behalf of

TGC RESEARCH LIMITED

14

Part 2

Form of Acknowledgement and Agreement

	 	 	 	 	 
	To:

	 	BCC Acquisition II LLC

[?] [Address]
	 	

[?] [Date]

Dear Sirs

We acknowledge receipt of a notice dated [?] and addressed to us by TGC Research Limited (the
“Assignor”) regarding the account mentioned in such notice (the “Account”) and we accept the
instructions and authorisations contained in such notice.

We acknowledge and confirm that:

	 	1.	 	we do not have and, until you give us notice in writing (including, for the avoidance
of doubt, by way of facsimile transmission) that the Account and the monies from time to time
standing to the credit thereof have been reassigned and released to the Assignor, will not
make or exercise any claims or demands, rights of combination, consolidation or set-off or any
other equities against the Assignor in respect of the Account and the monies from time to time
standing to the credit if; and

	 	2.	 	we have not received any notice that any third party has or may have any rights, title
or interest in or to, or has made or may be making any claim or demand or taking any action
against, the Account and the monies from time to time standing to the credit if.

We undertake that, if we become aware at any time that any person or entity other than yourselves
has or may have any rights, title or interest in or to, or has or may be making any claim or demand
or taking any action against, the Account, we will immediately give written notice to you of the
terms of such rights, title or interest, claim, demand or action.

We confirm that, until you give us notice in writing (including, for the avoidance of doubt, by way
of facsimile transmission) that the Account and the monies from time to time standing to the credit
thereof have been reassigned and released to the Assignor, we shall not permit any transfers or
withdrawals to be made from the Account without your prior written authority.

Yours faithfully

for and on behalf of

[Third Party Bank]

15

SCHEDULE 8

Property

Part 1

Registered Land

NONE

Part 2

Unregistered Land

(Freehold or leasehold property in England and Wales title to which is not registered at H.M. Land
Registry of which the Chargor is the owner)

The leasehold properties known comprised in the following title deeds or other documents of title:

NONE

Part 3

Other Immovable Property

NONE

16

SIGNATORIES

THE CHARGOR

EXECUTED as a DEED by

TGC RESEARCH LIMITED

acting by:

	 	 	 	 	 
	Director

	 	 	 	/s/ David B. Kaysen
	 
	 	 	 	 
	Director/Secretary

	 	 	 	/s/ W. Glen Winchell
	 
	 	 	 	 
	Address:

	 	c/o Diametrics Medical, Inc.
	 	

	 	3050	 	Centre Point Drive, Suite 150

St. Paul

Minnesota 55113

United States of America

	 	 	 	 	 
	Fax:

Attention:

	 	+1 651 639 8549

Chief Executive Officer
	 	

	 
	 	 	 	 

17

	 	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	THE AGENT

	 	

	 	

	 
	 	 	 	 
	SIGNED for

BCC ACQUISITION II LLC

	 	

	 	

/s/ Fred Craves
	 
	 	 	 	 
	By:THE BAY CITY CAPITAL FUND I, L.P.
	 	 
	 
	 	 	 	 
	Its:Manager

	 	

	 	

	 
	 	 	 	 
	By:Bay City Capital Management LLC
	 	 
	 
	 	 	 	 
	Its:General Partner

	 	

	 	

	 
	 	 	 	 
	Address:

	 	C/O Bay City Capital LLC
	 	

	 	750	 	Battery, Suite 600

San Francisco, CA 94111

United States of America

	 	 	 
	Fax:

Attention:

	 	+1 415 837 0996

Fred Craves
	 
	 	 
	With a copy to Latham & Watkins LLP:

	 
	 	 
	Address:

	 	Sears Tower, Suite 5800

Chicago, Illinois 6060

United States of America

	 	 	 
	Fax:

Attention:

	 	+1 312 993 9767

Michael A. Pucker
	 
	 	 

18

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