Document:

exhibit104.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 
      	 
      	
              EXHIBIT
      10.4

            
	 
      	 
      	 
      
	
              Presstek Europe Limited

            	
              (1)

            
	
              and

            	 
      
	
              PNC
      Bank, National Association

            	
              (2)

            

    

     

    

     

    
      	 
      	
              COMPOSITE GUARANTEE AND DEBENTURE

              in
      relation to a Credit Agreement

            	 
      

    

    

     

    
      
        
          BST99
1649183-1.069646.0035

        

         

      

      
         

        
          

        

      

      
         

      

    

    CONTENTS

     

    
      	
              1

            	
              INTERPRETATION

            	
              3

            

    

     

    
      	
              2

            	
              SECURED
      OBLIGATIONS

            	
              8

            

    

     

    
      	
              3

            	
              CHARGES

            	
              10

            

    

     

    
      	
              4

            	
              SET-OFF

            	
              14

            

    

     

    
      	
              5

            	
              UNDERTAKINGS

            	
              14

            

    

     

    
      	
              6

            	
              FURTHER
      ASSURANCE

            	
              19

            

    

     

    
      	
              7

            	
              ENFORCEMENT

            	
              20

            

    

     

    
      	
              8

            	
              APPOINTMENT OF
      ADMINISTRATOR

            	
              21

            

    

     

    
      	
              9

            	
              APPOINTMENT AND POWERS OF
      RECEIVER

            	
              21

            

    

     

    
      	
              10

            	
              APPLICATION OF PROCEEDS;
      PURCHASERS

            	
              23

            

    

     

    
      	
              11

            	
              INDEMNITIES; EXCLUSION OF
      LIABILITY; COSTS AND EXPENSES

            	
              24

            

    

     

    
      	
              12

            	
              POWER OF
      ATTORNEY

            	
              25

            

    

     

    
      	
              13

            	
              CONTINUING SECURITY AND OTHER
      MATTERS

            	
              25

            

    

     

    
      	
              14

            	
              CURRENCIES

            	
              27

            

    

     

    
      	
              15

            	
              DECLARATION OF
      TRUST

            	
              27

            

    

     

    
      	
              16

            	
              MISCELLANEOUS

            	
              36

            

    

     

    
      	
              17

            	
              NOTICES

            	
              38

            

    

     

    
      	
              18

            	
              LAW

            	
              39

            

    

     

    
      	
               
      

            	 SCHEDULE
      1PROPERTIES	
               40

            

    

     

    
      	
               
      

            	      
              SCHEDULE
      2 SECURITIES

            	
              41

            

    

     

    
      	
               
      

            	 SCHEDULE
      3 INTELLECTUAL PROPERTY	
              42

            

    

     

    
      	
               
      

            	      
              SCHEDULE
      4 NOTICE OF CHARGE

            	
              43

            

    

     

    
      	
               
      

            	      
              SCHEDULE
      5 DISPOSAL OF CHARGED ASSETS

            	
              46

            

    

     

    
      	
               
      

            	      
              SCHEDULE
      6 ACCESSION UNDERTAKING

            	
              48

            

    

     

    
      	
               
      

            	      
              SCHEDULE
      7 NOTICE OF ASSIGNMENT

            	
              49

            

    

     

    
    

    
      	
            	      
              SCHEDULE
      8 LANDLORD WAIVER AND CONSENT  

            	
              51

            

    

     

     

    
      
        
           

           
 

          BST99
1649183-1.069646.0035

        

         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              DATE
      OF COMPOSITE GUARANTEE AND
    DEBENTURE

            	
              5
      March 2010

            
	
              PARTIES

            
	
              (1)

            	
              PRESSTEK EUROPE LIMITED (Company
      Number 01941149 ) whose registered office  is at Unit 1, The
      Summit Centre, Skyport Drive, Harmondsworth, West Drayton, Middlesex UB7
      0LJ, England (the “Company”).

            
	
              (2)

            	
              PNC BANK, NATIONAL ASSOCIATION
      acting in its capacity as Lender and
  Agent.

            

    

    THIS
DEED WITNESSES THAT:

     

    
      	
              1  

            	
              INTERPRETATION

            

    

     

    
      	
              1.1  

            	
              Definitions

            

    

     

    In this
deed, unless the context otherwise requires:

     

    “Accession Undertaking” means a
deed of accession substantially in the form set out in Schedule 6.

     

    "Account" means each from time
to time opened or maintained by the Company at such branch of the relevant bank
or financial institution, in each case, as the Agent may approve (acting
reasonably) and all rights, benefits and proceeds in respect of such account,
including without limitation the following accounts:

     

    
      	
              Account
      Holder

            	
              Bank

            	
              Account
      number

            	
              Purpose

            
	
              Presstek
      Europe Ltd.

            	 
      	 
      	
              Operating
      (GBP)

            
	
              Presstek
      Europe Ltd.

            	 
      	 
      	
              Operating
      (EURO)

            
	
              Presstek
      Europe Ltd.

            	 
      	 
      	
              Operating
      (USD)

            
	
              Presstek
      Europe Ltd.

            	 
      	 
      	
              Operating
      (YEN)

            

    

    

     

    "Administrator" means any
person appointed under Schedule B1 Insolvency Act 1986 to manage the Company's
affairs, business and property.

     

    "Agent" means PNC Bank,
National Association or such other person as may be appointed Agent pursuant to
this deed.

     

    "Assigned Agreements" means
all intercompany notes representing indebtedness due from the Company to any
member of the Controlled Group.

     

    

     

    "Charged Assets" means all
assets of the Company described in clauses 3.1 (Fixed Charges) and 3.2 (Floating Charges).

     

    "Collateral Instruments" means
notes, bills of exchange, certificates of deposit and other negotiable and
non-negotiable instruments, guarantees and any other documents or instruments
which contain or evidence an obligation (with or without security) to pay,
discharge or be responsible directly or indirectly for, any liabilities of any
person and includes any document or instrument creating or evidencing an
Encumbrance.

     

    "Credit Agreement" means the
credit agreement dated on or about the date of this Deed and made between
Presstek Inc. as borrower, the Lender and the Agent pursuant to which the Lender
agreed to make available a US$25,000,000 revolving credit facility, as that
agreement may from time to time be amended, varied, novated, supplemented or
replaced including, without limitation, by the increase or extension of maturity
of the facility or by any change in the identity of the Agent or any of the
Lenders.

     

    "Debts" means book and other
debts, revenues and claims, whether actual or contingent, whether arising under
contracts or in any other manner whatsoever and all things in action which may
give rise to any debt, revenue or claim, together with the full benefit of any
Encumbrances, Collateral Instruments and any other rights relating thereto
(whether as creditor or beneficiary) including, without limitation, reservations
of proprietary rights, rights of tracing and unpaid vendor's liens and
associated rights, but excluding any assets the subject of clauses 3.1(h) or 3.1(i).

     

    "Default Rate" has the meaning
given to the term in the Credit Agreement.

     

    "Disposal" includes any sale,
lease, sub-lease, assignment or transfer, the grant of an option or similar
right, the grant of any easement, right or privilege, the grant of a licence or
permission to assign or sublet, the creation of a trust or other equitable
interest or any other proprietary right in favour of a third party, a sharing or
parting with possession or occupation whether by way of licence or otherwise and
the granting of access to any other person over any Intellectual Property, and
any agreement or attempt to do any of the foregoing and "dispose" and "disposition" shall be
construed accordingly).

     

    "Encumbrance" means any
mortgage, charge (whether fixed or floating), pledge, lien, hypothecation,
standard security, assignment by way of security, trust arrangement for the
purpose of providing security or other security interest of any kind securing or
preferring any obligation of any person or any other arrangement having the
effect of conferring rights of retention or set-off or other disposal rights
over an asset (including, without limitation, title transfer and/or retention
arrangements having a similar effect) and includes any agreement to create any
of the foregoing.

     

    "Enforcement Date" means the
date on which the Agent or any Secured Party demands payment of the Secured
Obligations following the occurrence of an Event of Default or any step is taken
to put the Company into administration;

     

    "Environment"
means:

     

    
      	
              (a)  

            	
              land,
      including, without limitation, surface land, sub-surface strata, sea bed
      and river bed under water (as defined in paragraph (b)) and natural and
      man-made structures;

            

    

     

    
      	
              (b)  

            	
              water,
      including, without limitation, coastal and inland waters, surface waters,
      aquatic sediment, ground waters and water in drains and
      sewers;

            

    

     

    
      	
              (c)  

            	
              air,
      including, without limitation, air inside buildings and other natural and
      man-made structures above or below ground;
and

            

    

     

    
      	
              (d)  

            	
              any
      living systems or organisms supported by the media set out in (a), (b) or
      (c) above.

            

    

     

    "Environmental Complaint" has
the meaning given to it in the Credit Agreement.

     

    "Environmental Law" has the
meaning given to it in the Credit Agreement.

     

    "Environmental Licence" means
any permits, consents, licences, certificates, notices, filings, lodgements,
agreements, directions, declarations, exemptions, variations, renewals and
amendments and other authorisations and approvals required or provided under
Environmental Law.

     

    "Equipment" means machinery,
equipment, furniture, furnishings, fittings and fixtures (excluding any fixtures
and fittings belonging to a tenant) and other tangible personal property (other
than Inventory), including, without limitation, data processing hardware and
software, motor vehicles, aircraft, dies, tools, jigs and office equipment,
together with all present and future additions thereto, replacements or upgrades
thereof, components and auxiliary parts and supplies used or to be used in
connection therewith and all substitutes for any of the foregoing, and all
manuals, drawings, instructions, warranties and rights with respect thereto
wherever any of the foregoing is located and any other asset which would be
treated as a fixed asset under GAAP.

     

    "Event of Default" has the
meaning given to it in the Credit Agreement.

     

    "Fixed Charge Assets" means
the assets of the Company described in clause 3.1.

     

    "Fixtures" means, in relation
to a Property, all fixtures and fittings (including trade fixtures and fittings,
but excluding any fixtures and fittings belonging to a tenant), fixed plant and
machinery and other items attached to that property, whether or not constituting
a fixture at law.

     

    "GAAP" means accounting
principles which are for the time being generally acceptable in the United
Kingdom.

     

    "Guarantee" means the
obligations of the Company pursuant to clause 2.1(b) and includes the obligations of the
Company arising by virtue of clauses 2.2
and 13.

     

    "Hazardous Substance" has the
meaning given to it in the Credit Agreement.

     

    "Incapacity" means, in
relation to a person, the insolvency, liquidation, dissolution, winding-up,
administration, receivership, amalgamation, reconstruction or other incapacity
of that person whatsoever (and, in the case of a partnership, includes the
termination or change in the composition of the partnership).

     

    "Indebtedness" has the meaning
given to it in the Credit Agreement.

     

    "Insurances" means all present
and future contracts or policies of insurance (including life assurance
policies) taken out by the Company or in which the Company from time to time has
an interest.

     

    "Intellectual Property" means
all patents (including applications for and rights to apply for patents), trade
marks and service marks (whether registered or not) and applications for the
same, trade names, registered designs, design rights, semi-conductor topography
rights, database rights, copyrights, computer programs, know-how and trade
secrets and all other intellectual or intangible property or rights and all
licences, agreements and ancillary and connected rights relating to intellectual
and intangible property including any renewals, revivals or extensions thereof
and wherever in the world subsisting.

     

    "Inventory" means inventory,
goods and merchandise, wherever located, raw materials, work-in-progress,
finished goods, returned goods and materials and supplies of any kind, nature or
description used in connection with the Company's business or used in connection
with the manufacture, packing, shipping, advertising, selling or finishing of
such goods, merchandise and such other specified property, and all documents of
title or other documents representing them.

     

    "Lender" means PNC Bank,
National Association and includes any successor in title, assignee and
substitute for it and any other person or entity for the time being a party to
the Credit Agreement in the capacity of a lender and "Lenders" shall be construed
accordingly.

     

    "Permitted Encumbrance" has
the meaning given to it in the Credit Agreement.

     

    "Property" means freehold and
leasehold property wherever situate (other than any heritable property in
Scotland), and includes all liens, charges, options, agreements, rights and
interests in or over such property or the proceeds of sale of such property and
all buildings and Fixtures thereon and all rights, easements and privileges
appurtenant to, or benefiting, the same and "Properties" means all or any
of the same, as the context requires.

     

    "Receiver" means any receiver
and/or manager not being an administrative receiver (within the meaning of
section 29(2) Insolvency Act 1986) appointed by the Agent pursuant to clause 9.1 (Appointment).

     

    "Receivership Assets" has the
meaning given to it in clause 9.1
(Appointment).

     

    "Remediation" means any and
all investigating, sampling, analysing, removing, remedying, cleaning-up,
abating, containing or ameliorating the presence in or effect on the Environment
of any contamination or pollution including, without limitation, the removal,
treatment and disposal of material and the treatment and monitoring of ground
waters and gases and emissions to air and the obtaining of expert technical and
legal advice (including all project management functions) in relation
thereto.

     

    "Secured Obligations" means
all moneys, obligations and liabilities covenanted to be paid or discharged
under or pursuant to clause 2.

     

    "Secured Parties" means each
Lender and the Agent.

     

    "Securities" means stocks,
shares, bonds and securities of any kind whatsoever (including warrants and
options to acquire or subscribe any of the same) whether marketable or otherwise
and all interests (including but not limited to loan capital) including all
allotments, rights, benefits and advantages whatsoever at any time accruing,
offered or arising in respect of or incidental to the same and all money or
property accruing or offered at any time by way of conversion, redemption,
bonus, preference, option, dividend, distribution, interest, or otherwise in
respect thereof.

     

    "Specified Person" means each
or all, as the context requires, of the Company, its Subsidiaries, the occupier
of any property from time to time and at any time owned, leased, occupied or
otherwise used by the Company or any of its Subsidiaries or any of their
respective officers.

     

    "Subsidiary" shall have the
meaning given to it in section 1159 Companies Act 2006.

     

    
      	
              1.2  

            	
              Successors
      and assigns

            

    

     

    The
expressions "Lender",
"Company" and "Agent", include, where the
context admits, their respective successors, and, in the case of a Lender, its
respective transferees and assignees, whether immediate or
derivative.

     

    
      	
              1.3  

            	
              Headings

            

    

     

    Clause
headings and the contents page are inserted for convenience of reference only
and shall be ignored in the interpretation of this deed.

     

    
      	
              1.4  

            	
              Construction
      of certain terms

            

    

     

    In this
deed, unless the context otherwise requires:

     

    
      	
              (a)  

            	
              references
      to clauses and Schedules are to be construed as references to the clauses
      of, and the schedules to, this deed and references to this deed include
      its schedules;

            

    

     

    
      	
              (b)  

            	
              references
      to (or to any specified provision of) this deed or any other document
      shall be construed as references to this deed, that provision or that
      document as in force for the time being and as amended, supplemented,
      replaced or novated in accordance with the terms thereof or, as the case
      may be, with the agreement of the relevant parties and (where such consent
      is, by the terms of this deed or the relevant document, required to be
      obtained as a condition to such amendment being permitted) the prior
      written consent of the Agent;

            

    

     

    
      	
              (c)  

            	
              words
      importing the plural shall include the singular and vice
      versa;

            

    

     

    
      	
              (d)  

            	
              references
      to a time of day are to London
time;

            

    

     

    
      	
              (e)  

            	
              references
      to "assets"
      include all or part of any business, undertaking, real property, personal
      property, uncalled capital and any rights (whether actual or contingent,
      present or future) to receive, or require delivery of, or otherwise in
      respect of, any of the foregoing;

            

    

     

    
      	
              (f)  

            	
              references
      to a "guarantee"
      include references to an indemnity or other assurance against financial
      loss including, without limitation, an obligation to purchase assets or
      services as a consequence of a default by any other person to pay any
      Indebtedness and “guaranteed” shall be construed
    accordingly;

            

    

     

    
      	
              (g)  

            	
              references
      to a "person"
      shall be construed as including references to an individual, firm,
      company, corporation, unincorporated body of persons or any State or any
      of its agencies;

            

    

     

    
      	
              (h)  

            	
              references
      to a "regulation"
      include any present or future regulation, rule, directive, requirement,
      request or guideline (whether or not having the force of law but, if not
      having the force of law, which is generally complied with by those to whom
      it is addressed) of any agency, authority, central bank or government
      department or any self-regulatory or other national or supra-national
      authority;

            

    

     

    
      	
              (i)  

            	
              references
      to any enactment shall be deemed to include references to such enactment
      as re-enacted, amended or extended;
and

            

    

     

    
      	
              (j)  

            	
              an
      Event of Default shall be deemed to be continuing if it has not been
      waived or remedied to the satisfaction of the
  Agent.

            

    

     

    
      	
              1.5  

            	
              Effect
      as a deed

            

    

     

    This deed
is intended to take effect as a deed notwithstanding that the Agent may have
executed it under hand only.

     

    
      	
              1.6  

            	
              Credit
      Agreement definitions

            

    

     

    Unless
the context otherwise requires or unless otherwise defined in this deed, words
and expressions defined in the Credit Agreement shall have the same meaning when
used in this deed.

     

    
      	
              1.7  

            	
              Credit
      Agreement to prevail

            

    

     

    If there
is a conflict between the terms of this deed and those of the Credit Agreement,
or if the provisions of this deed are more onerous than the provisions of the
Credit Agreement which deal with the same or substantially the same issue, the
terms of the Credit Agreement shall prevail.

     

    
      	
              2  

            	
              SECURED
      OBLIGATIONS

            

    

     

    
      	
              2.1  

            	
              Covenant
      to pay: Guarantees

            

    

     

    The
Company hereby:

     

    
      	
              (a)  

            	
              covenants
      that it will pay on demand to the Agent all moneys and discharge all
      obligations and liabilities now or hereafter due, owing or incurred by it
      to the Secured Parties or any of them whether express or implied, present,
      future or contingent, joint or several, incurred as principal or surety
      determined in whatever currency or incurred on any banking account under
      or pursuant to the Credit Agreement, any Other Document and/or this deed
      or otherwise howsoever when the same become due for payment or discharge;
      and

            

    

     

    
      	
              (b)  

            	
              irrevocably
      and unconditionally:

            

    

     

    
      	
              (i)  

            	
              guarantees
      the due performance by each Borrower and by each Guarantor of all its
      obligations under or pursuant to the Credit Agreement and the Other
      Documents; and

            

    

     

    
      	
              (ii)  

            	
              guarantees
      the payment of all moneys now or hereafter due, owing or incurred to the
      Secured Parties or any of them under or pursuant to the Credit Agreement,
      any Other Document and/or this deed or otherwise howsoever by each
      Borrower and each Guarantor); and

            

    

     

    
      	
              (iii)  

            	
              undertakes
      that, if for any reason any Borrower or Guarantor fails to discharge any
      such obligation or to pay any such moneys, it shall immediately on demand
      by the Agent discharge such obligation or, as the case may be, pay such
      moneys to the Agent.

            

    

     

    
      	
              2.2  

            	
              Company
      as principal debtor: indemnity

            

    

     

    As a
separate and independent stipulation, the Company irrevocably and
unconditionally agrees that if any purported obligation or liability of the
Company which would have been the subject of its Guarantee had it been valid and
enforceable is not or ceases to be valid or enforceable against it on any ground
whatsoever whether or not known to the Secured Parties or any of them
(including, without limitation, any irregular exercise or absence of any
corporate power or lack of authority of, or breach of duty by, any person
purporting to act on behalf of the Company or any legal or other limitation,
whether under the Limitation Acts or otherwise, any disability or Incapacity or
any change in the constitution of the Company) it shall nevertheless be liable
in respect of that purported obligation or liability as if the same were fully
valid and enforceable and it were a principal debtor in respect
thereof.  The Company hereby irrevocably and unconditionally agrees to
indemnify and keep indemnified the Secured Parties against any loss or liability
arising from any failure of the Company to perform or discharge any such
purported obligation or liability or from any invalidity or unenforceability of
any of the same against it.

     

    
      	
              2.3  

            	
              Statements
      of account conclusive

            

    

     

    Any
statement of account of the Company, signed as correct by an officer of the
Agent, showing the amount of the Secured Obligations of the Company, shall, in
the absence of manifest error, be binding and conclusive on and against the
Company.

     

    
      	
              2.4  

            	
              Interest

            

    

     

    The
Company agrees to pay interest on each amount demanded of it under its Guarantee
from the date of such demand until payment (after as well as before judgment) at
the Default Rate in accordance with the terms of the Credit
Agreement.

     

    
      	
              3  

            	
              CHARGES

            

    

     

    
      	
              3.1  

            	
              Fixed
      Charges

            

    

     

    The
Company, with full title guarantee, hereby charges to the Agent as a continuing
security for the payment and discharge of its Secured Obligations:

     

    
      	
              (a)  

            	
              by
      way of first legal mortgage, the Properties (if any) specified in Schedule
      1 (Properties);

            

    

     

    
      	
              (b)  

            	
              subject
      to clause 3.4(a), by way of first
      legal mortgage, all Properties (other than any property specified in
      Schedule 1 (Properties)) now owned by the Company or in which the Company
      has an interest;

            

    

     

    
      	
              (c)  

            	
              subject
      to clause 3.4(a), by way of first
      fixed charge (to the extent not the subject of a legal mortgage by virtue
      of clauses 3.1(a) or 3.1(b)) all present and future
      Properties now or from time to time hereafter owned by the Company or in
      which the Company may have an
interest;

            

    

     

    
      	
              (d)  

            	
              by
      way of first fixed charge, all Equipment now or from time to time
      hereafter owned by the Company or in which the Company has an interest and
      the benefit of all contracts and warranties relating to the
      same;

            

    

     

    
      	
              (e)  

            	
              by
      way of first fixed charge, all Securities specified in Schedule 2
      (Securities);

            

    

     

    
      	
              (f)  

            	
              by
      way of first fixed charge, all Securities (other than any property
      specified in Schedule 2 (Securities)) now or from time to time hereafter
      owned by the Company or in which the Company has an
    interest;

            

    

     

    
      	
              (g)  

            	
              by
      way of first fixed charge, all Debts now or from time to time hereafter
      owned by the Company or in which the Company has an interest (whether
      originally owing to the Company or purchased or otherwise acquired by
      it);

            

    

     

    
      	
              (h)  

            	
              by
      way of first fixed charge, the proceeds of collection of all
      Debts;

            

    

     

    
      	
              (i)  

            	
              by
      way of first fixed charge, any and all amounts from time to time standing
      to the credit of all present and future accounts of the Company with any
      bank, financial institution or other person including, without limitation,
      the Accounts;

            

    

     

    
      	
              (j)  

            	
              by
      way of first fixed charge, all moneys from time to time payable to the
      Company under or pursuant to the Insurances including without limitation
      the right to the refund of any
premiums;

            

    

     

    
      	
              (k)  

            	
              by
      way of first fixed charge, the proceeds of all other sums of money
      received by the Company, other than those specified in clauses 3.1(g), 3.1(h), 3.1(i) or 3.1(j);

            

    

     

    
      	
              (l)  

            	
              by
      way of first fixed charge, the goodwill and uncalled capital of the
      Company;

            

    

     

    
      	
              (m)  

            	
              by
      way of first fixed charge, the Intellectual Property (if any) specified in
      Schedule 3 (Intellectual Property);

            

    

     

    
      	
              (n)  

            	
              by
      way of first fixed charge, all Intellectual Property (other than any
      Intellectual Property specified in Schedule 3 (Intellectual Property)),
      now or from time to time hereafter owned by the Company or in which the
      Company may have an interest;

            

    

     

    
      	
              (o)  

            	
              subject
      to clause 3.4(a), if not
      effectively assigned by clause 3.4 (Security Assignment), by way of first
      fixed charge all its rights and interests in (and claims under) the
      Assigned Agreements and all other contracts, agreements, deeds,
      undertakings, guarantees, warranties, indemnities, other documents,
      concessions and franchises now or hereafter entered into by or granted to,
      or vested in, or novated or assigned to, the Company (including any
      contract for sale of or other dealing with any of the Charged
      Assets).

            

    

     

    
      	
              3.2  

            	
              Floating
      Charges

            

    

     

    The
Company hereby charges to the Agent by way of first floating charge as a
continuing security for the payment and discharge of its Secured Obligations its
undertaking and all its property, assets and rights whatsoever and wheresoever
both present and future, including, without limitation, its Inventory other than
any property or assets from time to time effectively charged by way of legal
mortgage or fixed charge or assignment pursuant to clause 3.1 (Fixed Charges), clause 3.4 (Security
Assignment) or otherwise pursuant to this deed.

     

    
      	
              3.3  

            	
              Qualifying
      Floating Charge

            

    

     

    The
provisions of paragraph 14 of Schedule B1 Insolvency Act 1986 apply to the
floating charges in clause 3.2 (Floating
Charges), which shall be enforceable at any time on or after the Enforcement
Date.

     

    
      	
              3.4  

            	
              Security
      Assignment and Removal of Impediments to Charges and
      Assignments

            

    

     

    
      	
              (a)  

            	
              Subject
      to clause 3.4(b) below, as further security for the payment and discharge
      of the Secured Obligations, the Company assigns absolutely with full title
      guarantee to the Agent all its rights, title and interest in the Assigned
      Agreements, provided that on payment or discharge in full of the Secured
      Obligations the Agent will at the request and cost of the Company promptly
      re-assign the Assigned Agreements to the Company (or as it shall
      direct).

            

    

     

    
      	
              (b)  

            	
              To
      the extent that:

            

    

     

    
      	
              (i)  

            	
              any
      right, title or interest described in clause 3.1 or 3.2 is not capable of being charged;
      or

            

    

     

    
      	
              (ii)  

            	
              any
      right, title or interest described in clause 3.4 is not capable of
      assignment,

            

    

     

    the
charge purported to be created by clause 3.1 or 3.2 or the assignment purported to be
effected by clause 3.4 (as the case may be) shall, without prejudice to the
provisions of clause 3.1(h) in relation
to Debts, 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 Company 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.

     

    
      	
              3.5  

            	
              Restrictions
      on dealing with Charged Assets

            

    

     

    The
Company hereby covenants that it will not:

     

    
      	
              (a)  

            	
              dispose
      of all or any of its Properties which are necessary or useful in the
      proper conduct of its business;

            

    

     

    
      	
              (b)  

            	
              dispose
      of all or any of the other Fixed Charge Assets which are necessary or
      useful in the proper conduct of its business except for disposals for
      which the Agent's consent has been requested in the form set out in
      Schedule 5 Part 1 and expressly granted by the Agent in the form set out
      in Schedule 5 Part 2 (such consent not to be unreasonably withheld or
      delayed);

            

    

     

    
      	
              (c)  

            	
              dispose
      of its Inventory or any other Charged Asset which is necessary or useful
      in the proper conduct of its business otherwise than in the ordinary
      course of business;

            

    

     

    
      	
              (d)  

            	
              without
      limiting the generality of the foregoing provisions of this clause 3.4 dispose of, or create or attempt
      to create or permit to subsist or arise any Encumbrance (save for any
      right of set-off which arises by operation of law) on or over, the Debts
      or any part thereof or release, set off or compound or deal with the same
      otherwise than in accordance with clause 5.1(c);
or

            

    

     

    
      	
              (e)  

            	
              create
      or attempt to create or permit to subsist in favour of any person other
      than the Agent any Encumbrance on or affecting the Charged Assets or any
      part thereof except a Permitted Encumbrance, a lien arising by operation
      of law in the ordinary course of trading over property other than
      land.

            

    

     

    
      	
              3.6  

            	
              Automatic
      conversion of floating charge

            

    

     

    So far as
permitted by law and notwithstanding anything expressed or implied in this
deed:

     

    
      	
              (a)  

            	
              if
      the Company creates or attempts to create any Encumbrance (other than a
      Permitted Encumbrance) over all or any of the Charged Assets without the
      prior written consent of the Agent or if any person levies or attempts to
      levy any distress, execution, sequestration or other legal process against
      any of the Charged Assets, the floating charge created by clause 3.2 (Floating Charges) over the
      Properties or asset concerned shall thereupon automatically without notice
      be converted into a fixed charge;
and

            

    

     

    
      	
              (b)  

            	
              the
      floating charge created by clause 3.2 (Floating Charges) shall
      automatically be converted into a fixed charge on the Enforcement
      Date.

            

    

     

    
      	
              3.7  

            	
              Conversion
      of floating charge by notice

            

    

     

    Notwithstanding
anything expressed or implied in this deed but without prejudice to clause 3.5(e) (Automatic conversion of floating
charge), the Agent shall be entitled at any time by giving notice in writing to
that effect to the Company to convert the floating charge created by the Company
over all or any part of the Charged Assets into a fixed charge as regards the
assets specified in such notice, if the Agent is of the view that those assets
are in danger of being seized or sold under any form of distress, attachment or
execution or are otherwise in jeopardy from any formal legal
process.

     

    
      	
              3.8  

            	
              Land
      Registry

            

    

     

    
      	
              (a)  

            	
              The
      Company hereby consents to the Agent's application to the Chief Land
      Registrar in form RX1 for the registration of the following restriction
      against each of the registered titles specified in Schedule 1 (and against
      any title to any unregistered Property specified in Schedule 1 which is or
      ought to be the subject of a first registration of title at the Land
      Registry at the date of this deed):

            

    

     

    "RESTRICTION:

     

    No
disposition of the registered estate by the proprietor of the registered estate
is to be registered without a written consent signed by the proprietor for the
time being of the charge dated [date] in favour of [chargee] referred to in the
charges register.

     

    
      	
              (b)  

            	
              In
      respect of any Property charged pursuant to clauses 3.1(a) to 3.1(c) title to which is registered
      at the Land Registry, the Company on its own behalf hereby represents and
      warrants that the security created by this deed does not contravene any of
      the provisions of the memorandum and articles of association or any other
      constitutional documents of the
Company.

            

    

     

    
      	
              3.9  

            	
              The
      Credit Agreement

            

    

     

    The
obligation on the part of the Agent and each Secured Party to make further
advances to the Borrower under the Credit Agreement shall be deemed to be
incorporated in this deed as an obligation of the Agent for the purposes of
section 94(1)(c) Law of Property Act 1925 and the Agent may apply in form CH2 to
the Chief Land Registrar to enter a note of such obligation on the register of
each of the titles referred to in clause 3.8 (Land Registry).

     

    
      	
              3.10  

            	
              The
      Securities

            

    

     

    The
Company will, if so requested by the Agent following the Enforcement Date,
transfer all or any Securities from time to time owned by it to such nominees or
agents as the Agent may select.

     

    
      	
              4  

            	
              SET-OFF

            

    

     

    
      	
              4.1  

            	
              Set-off

            

    

     

    The
Company hereby agrees that each of the Secured Parties may at any time without
notice following the occurrence of an Event of Default which is continuing,
notwithstanding any settlement of account or other matter whatsoever, combine or
consolidate all or any of its then existing Accounts wheresoever situate
(including accounts in the name of such Secured Party or of the Company jointly
with others), whether such Accounts are current, deposit, loan or of any other
nature whatsoever, whether they are subject to notice or not and whether they
are denominated in sterling or in any other currency, and set-off or transfer
any sum standing to the credit of any one or more such Accounts in or towards
satisfaction of the Secured Obligations owed to such Secured Party which, to the
extent not then payable, shall automatically become payable to the extent
necessary to effect such set-off.

     

    
      	
              4.2  

            	
              Purchase
      of currencies

            

    

     

    For the
purpose of clause 4.1 (Set-off) only,
the Company authorises each Secured Party  to purchase with the moneys
standing to the credit of such Accounts such other currencies as may be
necessary to effect such applications.

     

    
      	
              5  

            	
              UNDERTAKINGS

            

    

     

    
      	
              5.1  

            	
              The
      Company hereby undertakes with the Agent that during the continuance of
      this security it will:

            

    

     

    
      	
              (a)  

            	
              Credit
      Agreement undertakings

            

    

     

    comply
with all of its obligations (if any) under the Credit Agreement (as if the same
were set out in this deed mutatis mutandis);

     

    
      	
              (b)  

            	
              Consents
      and licences

            

    

     

    obtain or
cause to be obtained, maintain in full force and effect and comply in all
material respects with the conditions and restrictions (if any) imposed in, or
in connection with, every consent, authorisation, licence or approval of
governmental or public bodies or authorities or courts and do, or cause to be
done, all other acts and things which may from time to time be necessary or
desirable under applicable law for the continued due performance of all its
obligations under this deed;

     

    
      	
              (c)  

            	
              Debts

            

    

     

    collect
its Debts in the ordinary course of its business in a proper and efficient
manner. Following the Enforcement Date the Company may not, without the prior
written consent of the Agent, withdraw any proceeds of the Debts from the
Accounts or compromise, compound, vary, discharge, postpone or release any of
the Debts or waive its right of action in connection therewith or do or omit to
do anything which may delay or prejudice the full recovery thereof, other than
granting extensions to normal trade credit in accordance with the Company's
reasonable and prudent management of its debtors on a normal commercial
basis;

     

    
      	
              (d)  

            	
              Assigned
      Agreements

            

    

     

    Promptly
following written request by the Agent, give notice to the other parties to the
Assigned Agreements that it has assigned its rights under the Assigned
Agreements to the Agent.  Such notice will be given in substantially
the form set out in Schedule 7.

     

    
      	
              (e)  

            	
              Deposit
      of deeds

            

    

     

    deposit
with the Agent (to be held at the risk of the Company):

     

    
      	
              (i)  

            	
              (if
      any), all deeds and documents of title relating to its Properties and the
      Insurances relating thereto;

            

    

     

    
      	
              (ii)  

            	
              all
      certificates and documents of title relating to the Securities owned by it
      and such deeds of transfer in blank and other documents as the Agent may
      from time to time require for perfecting the title of the Agent to such
      Securities (duly executed by or signed on behalf of the registered holder)
      or for vesting or enabling it to vest the same in itself or its nominees
      or in any purchaser; and

            

    

     

    
      	
              (iii)  

            	
              all
      such other documents relating to its Charged Assets as the Agent may from
      time to time require (acting
reasonably);

            

    

     

    

     

    
      	
              (f)  

            	
              Conduct
      of business

            

    

     

    
      	
              (i)  

            	
              ensure
      its centre of main interest for the purposes of Council Regulation (EC) No
      1346/2000 of 29 May 2000 on Insolvency Proceedings including, but not
      limited to, its headquarter functions is located at all times within
      England and Wales and not move its centre of main interest to any other
      jurisdiction without the prior written consent of the
      Agent  which the Agent may withhold at the Agent's sole
      discretion or otherwise diminish in or divert from England and Wales the
      substantive management and control of its business or any of its
      Properties;

            

    

     

    
      	
              (g)  

            	
              Compliance
      with covenants etc

            

    

     

    observe
and perform all covenants, requirements and obligations from time to time
imposed on, applicable to or otherwise affecting its Charged Assets and/or the
use, ownership, occupation, possession, operation, repair, maintenance or other
enjoyment or exploitation of its Charged Assets whether imposed by statute, law
or regulation, contract, lease, licence, grant or otherwise, carry out all
registrations or renewals and generally do all other acts and things (including
the taking of legal proceedings) necessary or desirable to maintain, defend or
preserve its right, title and interest to and in its Charged Assets without
infringement by any third party and not without the prior written consent of the
Agent enter into any onerous or restrictive obligations affecting any of the
same or agree any rent review relating to any interest in any of its
Properties;

     

    
      	
              (h)  

            	
              Alteration
      or development of Properties

            

    

     

    save with
the prior written consent of the Agent, such consent not to be unreasonably
withheld or delayed, not make any material structural alteration to any of the
Properties or any material alteration to the user of any of the Properties or do
or permit to be done anything which is a "development" within the meaning of the
Town and Country Planning Acts for the time being in force or any orders or
regulations under such Acts or do or permit or omit to be done any act, matter
or thing as a consequence of which any provision of any statute, bye-law, order
or regulation or any condition of any consent, licence, permission or approval
(whether of a public or private nature) from time to time in force imposed on,
applicable to or otherwise affecting any of the Properties is or may be
infringed;

     

    
      	
              (i)  

            	
              Maintenance
      of Buildings and Equipment

            

    

     

    
      	
              (i)  

            	
              keep
      all its buildings and Equipment which are necessary or useful in the
      proper conduct of its business in good and substantial repair (subject to
      fair wear and tear) and in good working order and condition and, on not
      less than 48 hours written notice, permit the Agent and its agents or
      representatives to enter and view their state and condition during
      business hours; and

            

    

     

    
      	
              (ii)  

            	
              if
      requested by the Agent, affix to the Equipment a prominent and fireproof
      notice stating that the Equipment in question is charged to the Agent by
      way of fixed charge;

            

    

     

    
      	
              (j)  

            	
              Insurance

            

    

     

    
      	
              (i)  

            	
              insure
      and keep insured its Properties, Equipment and all other tangible assets
      of an insurable nature at its own expense to the full replacement or
      reinstatement value thereof from time to time (including, where
      applicable, the cost of demolition and site clearance, architects’,
      surveyors’ and other professional fees and incidental expenses in
      connection with replacement or reinstatement) against loss or damage
      (including loss of rent and profits) by fire, storm, lightning, explosion,
      riot, civil commotion, malicious damage, impact, flood, burst pipes,
      aircraft and other aerial devices or articles dropped therefrom and such
      other risks and contingencies as the Agent shall from time to time
      request;

            

    

     

    
      	
              (ii)  

            	
              maintain
      third party and public liability insurance and such other insurance as are
      normally maintained by prudent companies carrying on businesses similar to
      those of the Company;

            

    

     

    
      	
              (iii)  

            	
              duly
      and promptly pay all premiums and other moneys necessary for effecting and
      keeping up such insurances and on demand produce to the Agent the relevant
      policies and evidence of such payments and comply in all other respects
      with the terms and conditions of the relevant policies including without
      limitation any stipulations or restrictions as to the use and/or operation
      of any asset; and

            

    

     

    
      	
              (iv)  

            	
              (in
      the case of any Property held under a lease the terms of which prohibit
      the Company from complying with the obligations referred to in clause 5.1(j)(i)) procure (where it is empowered
      to do so) or otherwise use all reasonable efforts to procure the
      maintenance by the landlord (or other third party) of such insurance
      obligations in accordance with the provisions of the relevant
      lease;

            

    

     

    
      	
              (k)  

            	
              Property
      outgoings

            

    

     

    punctually
pay, or cause to be paid, and indemnify the Secured Parties and any Receiver or
Administrator (on a several basis) against, all present and future rent, rates,
taxes, duties, charges, assessments, impositions and outgoings whatsoever
(whether imposed by agreement, statute or otherwise) now or at any time during
the continuance of this security payable in respect of its Properties or any
part thereof or by the owner or occupier thereof;

     

    
      	
              (l)  

            	
              Possession
      of Properties

            

    

     

    without
prejudice to the generality of clause 3.5(a), not without the prior written
consent of the Agent part with possession of the whole or any part of its
Properties which are necessary or useful in the proper conduct of its business
or permit any person:

     

    
      	
              (i)  

            	
              to
      be registered (jointly with the Company or otherwise) as proprietor under
      the Land Registration Acts of any of its Properties which are necessary or
      useful in the proper conduct of its business nor create or permit to arise
      any unregistered interests which override first registration or registered
      dispositions affecting the same within the definition in those Acts or
      within any corresponding legislation in any other part of the United
      Kingdom; or

            

    

     

    
      	
              (ii)  

            	
              to
      become entitled to any right, easement, covenant, interest or other title
      encumbrance which might adversely affect the use, value or marketability
      of any of its Properties which are necessary or useful in the proper
      conduct of its business;

            

    

     

    
      	
              (m)  

            	
              Variation
      of leasehold interests

            

    

     

    not
without the prior written consent of the Agent vary, surrender, cancel or
dispose of, or permit to be forfeit, any leasehold interest in any of its
Properties which are necessary or useful in the proper conduct of its
business;

     

    
      	
              (n)  

            	
              Acquisition
      of property

            

    

     

    as soon
as practicable inform the Agent upon making a relevant purchase of any estate or
interest in freehold, leasehold or heritable property and supply the Agent with
such details of the relevant purchase as the Agent may from time to time
request;

     

    
      	
              (o)  

            	
              Environmental
      Complaints and Obligations

            

    

     

    promptly
on becoming aware of it inform the Agent of any Environmental Complaint which is
made or threatened against it or any other Specified Person and of any
requirement which is imposed pursuant to any Environmental Licence or
Environmental Law which requires the Company or any other Specified Person to
make any investment or capital expenditure or to take or desist from taking any
action in either case in respect of any of the Charged Assets in order to comply
with Environmental Law or such Environmental Licence;

     

    
      	
              (p)  

            	
              Access

            

    

     

    on not
less than 48 hours written notice, procure that the Agent and its agents or
representatives are allowed access during business hours to inspect its
Properties and, where the Agent reasonably believes it to be necessary, to
require testing or the taking of samples at the expense of the Company to verify
its compliance with Environmental Law applicable to it and/or its Environmental
Licences;

     

    
      	
              (q)  

            	
              Hazardous
      Substance

            

    

     

    notify
the Agent forthwith upon becoming aware of any Hazardous Substance present at,
on or under or brought on to any of its Properties which is reasonably likely to
give rise to any Environmental Complaint, or which might lead to or cause a
change in value of any of its Properties or any of its Charged
Assets;

     

    
      	
              (r)  

            	
              Intellectual
      Property

            

    

     

    without
prejudice to the generality of clause 5.1(g):

     

    
      	
              (i)  

            	
              take
      all necessary action to safeguard, prosecute and maintain its rights,
      present and future, in or relating to its Intellectual Property which is
      necessary for the conduct of its business including, without limitation,
      observing all covenants and stipulations relating thereto and paying all
      applicable application and renewal fees, licence fees and other
      outgoings;

            

    

     

    
      	
              (ii)  

            	
              use
      all reasonable efforts to effect registration of applications for
      registration of any registered design, patent, trade mark and service mark
      and keep the Agent informed of events relevant to any such application and
      not without the prior consent in writing of the Agent (such consent not to
      be unreasonably withheld or delayed) permit any Intellectual Property
      which is necessary for the conduct of its business to be abandoned or
      cancelled, to lapse or to be liable to any claim of abandonment for
      non-use or otherwise;

            

    

     

    
      	
              (iii)  

            	
              notify
      the Agent forthwith of any infringement or suspected infringement or any
      challenge to the validity of any of its Intellectual Property which is
      necessary for the conduct of its business which may come to its notice,
      supply the Agent with all information in its possession relating thereto
      and take all steps necessary to prevent or bring to an end any such
      infringement and to defend any challenge to the validity of any such
      rights;

            

    

     

    
      	
              (s)  

            	
              Copies
      of notices

            

    

     

    notify
the Agent as soon as reasonably practicable if it receives any notice in
connection with any of its Properties including, without limitation, any notice
under section 146 Law of Property Act 1925;

     

    
      	
              (t)  

            	
              Jeopardy

            

    

     

    not do or
cause or permit to be done anything which is reasonably likely to depreciate,
jeopardise or otherwise prejudice the value or marketability of any of its
Charged Assets which are necessary or useful in the proper conduct of its
business.

     

    
      	
              5.2  

            	
              Notice
      to Account Bank

            

    

     

    Save
where the account bank is the Agent, the Company will upon execution of this
deed give notice to the bank with which Accounts are maintained (and forthwith
on any change in the identity of such bank, give notice to the new bank) of this
deed in the form of Part 1 of Schedule 4 (Form of Notice of Charge to Account
Bank) and use its reasonable endeavours to procure that such bank or new bank
(as the case may be) acknowledges such notice to the Agent in the form of Part 2
of Schedule 4 (Form of Acknowledgement of Notice of Charge from the Account
Bank).

     

    
      	
              5.3  

            	
              Power
      to remedy

            

    

     

    If the
Company defaults at any time in complying with any of its obligations contained
in this deed, the Agent shall, without prejudice to any other rights arising as
a consequence of such default, be entitled (but not bound) to make good such
default and the Company hereby irrevocably authorises the Agent and its
employees and agents by way of security to do all such things (including,
without limitation, entering the Company’s property) reasonably necessary or
desirable in connection therewith.  Any moneys so expended by the
Agent shall be repayable by the Company to the Agent on demand together with
interest at the Default Rate from the date of payment by the Agent until such
repayment, both before and after judgment.  No exercise by the Agent
of its powers under this clause 5.3
shall make it or any other of the Secured Parties liable to account as a
mortgagee in possession.

     

    
      	
              6  

            	
              FURTHER
      ASSURANCE

            

    

     

    
      	
              6.1  

            	
              Further
      assurance

            

    

     

    The
Company shall if and when at any time required by the Agent execute such further
Encumbrances and assurances in favour or for the benefit of the Secured Parties
and do all such acts and things as the Agent shall from time to time reasonably
require over or in relation to all or any of the Charged Assets to secure the
Secured Obligations or to perfect or protect the Agent’s security over the
Charged Assets or any part thereof or to facilitate the realisation of the
same.

     

    Without
prejudice to the foregoing the Company shall use all reasonable endeavours to
obtain from each landlord in respect of each Property used or occupied by the
Company a waiver, in substantially the form set out at Schedule 8, in respect of
such landlord’s rights in respect of inventory and equipment located at such
Property and afford the Agent and any Receiver rights of access to such
Property. Accordingly the Company shall submit such waiver for consent by the
relevant landlord within 45 days of the date of this Charge in respect of
current Properties and in the event of future Properties, within 45 days of
first use or occupancy by the Company.

     

    
      	
              6.2  

            	
              Certain
      documentary requirements

            

    

     

    Such
further Encumbrances and assurances shall be prepared by or on behalf of the
Agent and shall contain:

     

    
      	
              (a)  

            	
              an
      immediate power of sale without
notice;

            

    

     

    
      	
              (b)  

            	
              a
      clause excluding section 93 Law of Property Act 1925 and the restrictions
      contained in section 103 Law of Property Act 1925;
  and

            

    

     

    
      	
              (c)  

            	
              such
      other clauses for the benefit of the Secured Parties as the Agent may
      require,

            

    

     

    but shall
be on terms no more onerous than those set out in this deed.

     

    
      	
              6.3  

            	
              Implied
      Covenants

            

    

     

    The
provisions of clauses 6.1 (Further
assurance) and 6.2 (Certain documentary
requirements) shall be in addition to and not in substitution for the covenants
for further assurance deemed to be included in this deed by virtue of the Law of
Property (Miscellaneous Provisions) Act 1994.

     

    
      	
              7  

            	
              ENFORCEMENT

            

    

     

    
      	
              7.1  

            	
              Enforcement

            

    

     

    At any
time on or after the Enforcement Date the Agent shall be entitled to make demand
for payment of the Secured Obligations and, if such demand is not met in full,
to enforce the Security (in whole or in part) created by this deed.

     

    
      	
              7.2  

            	
              Powers
      of the Agent on enforcement

            

    

     

    At any
time on or after the Enforcement Date the Agent may, without further notice,
without the restrictions contained in section 103 Law of Property Act 1925 and
whether or not an Administrator or a Receiver shall have been appointed,
exercise all the powers conferred upon mortgagees by the Law of Property Act
1925 as varied or extended by this deed and all the powers and discretions
conferred by this deed on a Receiver either expressly or by
reference.

     

    
      	
              7.3  

            	
              Enforcement
      in relation to Securities

            

    

     

    Without
limiting the generality of clause 7.2
(Powers of the Agent on enforcement) the Agent and its nominees at the
discretion of the Agent may at any time on or after the Enforcement Date and
without further notice to or any authority from the Company, exercise in respect
of the Securities any voting rights and all powers given to trustees by the
Trustee Act 2000 in respect of securities or property subject to a trust and any
powers or rights which may be exercisable by the person in whose name any of the
Securities is registered or by the bearer thereof for the time
being.

     

    
      	
              7.4  

            	
              Subsequent
      Encumbrances

            

    

     

    If any
Secured Party receives notice of any subsequent Encumbrance (other than a
Permitted Encumbrance) affecting all or any of the Charged Assets, such Secured
Party may open a new account for the Company.  If it does not do so
then, unless such Secured Party gives express written notice to the contrary to
the Company, it shall nevertheless be treated as if it had opened a new account
at the time when it received such notice and as from that time all payments made
by or on behalf of the Company to such Secured Party shall be credited or be
treated as having been credited to the new account and shall not operate to
reduce the amount due from the Company to such Secured Party at the time when it
received such notice.

     

    
      	
              7.5  

            	
              Statutory
      power of leasing

            

    

     

    The Agent
shall have the power to lease and make agreements for leases at a premium or
otherwise, to accept surrenders of leases and to grant options on such terms as
the Agent shall consider expedient and without the need to observe any of the
provisions of sections 99 and 100 Law of Property Act 1925.

     

    
      	
              7.6  

            	
              Fixtures

            

    

     

    At any
time on or after the Enforcement Date or if requested by the Company the Agent
may sever, and sell separately, any Fixtures from any of the Company's
Properties to which they are attached.

     

    
      	
              8  

            	
              APPOINTMENT
      OF ADMINISTRATOR

            

    

     

    At any
time on or after the Enforcement Date the Agent may appoint an Administrator of
the Company for the purposes of and upon the terms contained in Schedule B1
Insolvency Act 1986.

     

    
      	
              9  

            	
              APPOINTMENT
      AND POWERS OF RECEIVER

            

    

     

    
      	
              9.1  

            	
              Appointment

            

    

     

    At any
time on or after the Enforcement Date the Agent may, save as specified in this
clause 9.1, by instrument in writing
executed as a deed or under the hand of any director or other duly authorised
officer appoint any person to be a Receiver of such part of the Charged Assets
of the Company, not being the whole or substantially the whole of the Company's
property within the meaning of section 29 Insolvency Act 1986, as the Agent may
specify (the "Receivership
Assets").  Any such appointment may be made subject to such
qualifications, limitations and/or exceptions (either generally or in relation
to specific assets or classes of asset) as may be specified in the instrument
effecting the appointment.  Where more than one Receiver is appointed,
each joint Receiver shall have power to act severally, independently of any
other joint Receivers, except to the extent that the Agent may specify to the
contrary in the appointment.  The Agent may remove any Receiver so
appointed and appoint another in his place.  The Agent shall not,
however, be entitled to appoint a Receiver solely as a result of the obtaining
of a moratorium or of anything done with a view to obtaining a moratorium, under
the Insolvency Act 2000 without the leave of the court.

     

    
      	
              9.2  

            	
              Receiver
      as agent

            

    

     

    A
Receiver shall be the agent of the Company in respect of which he is appointed
and the Company shall be solely responsible for his acts or defaults and for his
remuneration.

     

    
      	
              9.3  

            	
              Powers
      of Receiver

            

    

     

    A
Receiver shall have the power to do or omit to do on behalf of the Company
anything which the Company itself could do or omit to do if the Receiver had not
been appointed, notwithstanding the liquidation of the Company.  In
particular (but without limitation) a Receiver shall have power to:

     

    
      	
              (a)  

            	
              take
      possession of, collect and get in the Receivership Assets and, for that
      purpose, to take such proceedings as may seem to him
      expedient;

            

    

     

    
      	
              (b)  

            	
              sell
      or otherwise dispose of the Receivership Assets by public auction or
      private auction or private
contract;

            

    

     

    
      	
              (c)  

            	
              raise
      or borrow money and grant security therefor over the Receivership
      Assets;

            

    

     

    
      	
              (d)  

            	
              appoint
      a solicitor or accountant or other professionally qualified person to
      assist him in the performance of his
functions;

            

    

     

    
      	
              (e)  

            	
              bring
      or defend any action or other legal proceedings in the name and on behalf
      of the Company;

            

    

     

    
      	
              (f)  

            	
              refer
      to arbitration any question affecting the
  Company;

            

    

     

    
      	
              (g)  

            	
              effect
      and maintain insurances in respect of the business and Properties of the
      Company;

            

    

     

    
      	
              (h)  

            	
              use
      the Company's seal;

            

    

     

    
      	
              (i)  

            	
              do
      all acts and to execute in the name and on behalf of the Company any deed,
      receipt or other document;

            

    

     

    
      	
              (j)  

            	
              draw,
      accept, make and endorse any bill of exchange or promissory note in the
      name and on behalf of the Company;

            

    

     

    
      	
              (k)  

            	
              appoint
      any agent to do any business which he is unable to do himself or which can
      more conveniently be done by an agent and employ and dismiss
      employees;

            

    

     

    
      	
              (l)  

            	
              do
      all such things (including the carrying out of works) as may be necessary
      for the realisation of the Receivership
Assets;

            

    

     

    
      	
              (m)  

            	
              make
      any payment which is necessary or incidental to the performance of his
      functions;

            

    

     

    
      	
              (n)  

            	
              carry
      on the business of the Company;

            

    

     

    
      	
              (o)  

            	
              establish
      Subsidiaries of the Company;

            

    

     

    
      	
              (p)  

            	
              transfer
      to Subsidiaries of the Company the whole or any part of the business or
      Receivership Assets;

            

    

     

    
      	
              (q)  

            	
              grant
      or accept a surrender of a lease or tenancy of any of the Receivership
      Assets and to take a lease or tenancy of any properties required or
      convenient for the business of the
Company;

            

    

     

    
      	
              (r)  

            	
              make
      any arrangement or compromise on behalf of the Company in respect of the
      Receivership Assets;

            

    

     

    
      	
              (s)  

            	
              call
      up any uncalled capital of the
Company;

            

    

     

    
      	
              (t)  

            	
              rank
      and claim in the bankruptcy, insolvency, sequestration or liquidation of
      any person indebted to the Company and to receive dividends, and to accede
      to trust deeds for the creditors of any such
  person.

            

    

     

    The
Receiver shall also have all powers from time to time conferred on receivers by
statute without, in the case of powers conferred by the Law of Property Act
1925, the restrictions contained in Section 103 of that Act.

     

    
      	
              9.4  

            	
              Remuneration

            

    

     

    The Agent
may from time to time determine the remuneration of any Receiver and section
109(6) Law of Property Act 1925 shall be varied accordingly.  A
Receiver shall be entitled to remuneration appropriate to the work and
responsibilities involved upon the basis of charging from time to time adopted
by the Receiver in accordance with the current practice of his
firm.

     

    
      	
              9.5  

            	
              Insurance
      moneys

            

    

     

    Any
insurance moneys received by a Receiver shall be applied in accordance with
clause 10.2 (Insurance proceeds) and
accordingly section 109(8) Law of Property Act 1925 shall not
apply.

     

    
      	
              10  

            	
              APPLICATION
      OF PROCEEDS; PURCHASERS

            

    

     

    
      	
              10.1  

            	
              Application
      of proceeds

            

    

     

    All
moneys received by the Agent or by any Receiver shall, subject to clause 13.5 (Suspense accounts), be paid to the
Agent under the Credit Agreement, after the discharge of the remuneration and
expenses of the Receiver and all liabilities having priority in law to the
Secured Obligations, in or towards satisfaction of the Secured Obligations in
accordance with the terms of the Credit Agreement.

     

    
      	
              10.2  

            	
              Insurance
      proceeds

            

    

     

    All
insurance moneys (including any received by a Receiver) deriving from any of the
Insurances (whether before or after the Enforcement Date) shall be applied in
accordance with the terms of the Credit Agreement.

     

    
      	
              10.3  

            	
              Protection
      of purchasers

            

    

     

    No
purchaser or other person shall be bound or concerned to see or enquire whether
the right of the Agent or any Administrator or Receiver to exercise any of the
powers conferred by this deed has arisen or be concerned with notice to the
contrary or with the propriety of the exercise or purported exercise of such
powers.

     

    
      	
              11  

            	
              INDEMNITIES;
      EXCLUSION OF LIABILITY; COSTS AND
EXPENSES

            

    

     

    
      	
              11.1  

            	
              Enforcement
      costs

            

    

     

    The
Company hereby undertakes with the Agent to pay on demand all costs, charges and
expenses incurred by or on behalf of the Secured Parties or any of them or by
any Administrator or Receiver in or about the enforcement or preservation or
attempted enforcement or preservation of any of the security created by or
pursuant to this deed or any of the Charged Assets on a full indemnity basis,
together with interest at the Default Rate from the date on which such costs,
charges or expenses are so incurred until the date of payment (as well after as
before judgment).

     

    
      	
              11.2  

            	
              No
      liability as mortgagee in
possession

            

    

     

    None of
the Secured Parties or any Receiver shall be liable to account to the Company as
mortgagee in possession in respect of all or any of the Charged Assets or be
liable for any loss upon realisation or for any neglect or default of any nature
whatsoever for which a mortgagee may be liable as such.

     

    
      	
              11.3  

            	
              Recovery
      of Debts

            

    

     

    None of
the Secured Parties or any Receiver shall have any liability or responsibility
of any kind to the Company arising out of the exercise or non-exercise of the
right to enforce recovery of the Debts or shall be obliged to make any enquiry
as to the sufficiency of any sums received in respect of any Debts or to make
any claims or take any other action to collect or enforce the same.

     

    
      	
              11.4  

            	
              Third
      Party Contract Rights

            

    

     

    
      	
              (a)  

            	
              A
      person who is not a party to this deed has no rights under the Contracts
      (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of
      any term of this deed.

            

    

     

    
      	
              (b)  

            	
              Notwithstanding
      any other provision of this deed, the Agent and the Company shall be
      entitled to agree variations to this deed without notifying the other
      Indemnified Parties or any retired Agent  or seeking the consent
      of such Indemnified Parties or any retired Agent or any of them to the
      variation.

            

    

     

    
      	
              11.5  

            	
              Value
      Added Tax

            

    

     

    All fees,
costs and expenses payable under or pursuant to this deed shall be paid together
with an amount equal to any value added tax payable by any Secured Party in
respect of the same.  Any value added tax chargeable in respect of any
services supplied by any Secured Party under this deed shall, on delivery of a
value added tax invoice, be paid in addition to any sum agreed to be paid under
this deed.

     

    
      	
              12  

            	
              POWER
      OF ATTORNEY

            

    

     

    
      	
              12.1  

            	
              The
      Company by way of security hereby irrevocably appoints each of the Agent
      and any Receiver severally to be its attorney in its name and on its
      behalf to do all things which the Company may be required to do under this
      deed but which it has failed to do
including:

            

    

     

    
      	
              (a)  

            	
              to
      execute and complete any documents or instruments which the Agent or such
      Receiver may require for perfecting the title of the Agent to the Charged
      Assets or for vesting the same in the Agent, its nominees or any
      purchaser;

            

    

     

    
      	
              (b)  

            	
              to
      sign, execute, seal and deliver and otherwise perfect any further security
      document referred to in clause 6 (Further assurance);
  and

            

    

     

    
      	
              (c)  

            	
              otherwise
      generally to sign, seal, execute and deliver all deeds, assurances,
      agreements and documents and to do all acts and things which are required
      for the full exercise of all or any of the powers conferred on the Agent
      or a Receiver under this deed or which may be deemed expedient by the
      Agent or a Receiver in connection with any disposition, realisation or
      getting in by the Agent or such Receiver of the Receivership Assets or in
      connection with any other exercise of any power under this deed and
      including, but not limited to a power in favour of any Receiver to dispose
      for value of any of the assets of the Company over which such Receiver may
      not have been appointed and which are located at Property over which he
      has been appointed, without being liable for any losses suffered by the
      Company, or any part thereof.

            

    

     

    
      	
              12.2  

            	
              The
      Company ratifies and confirms (and agrees to do so) whatever any such
      attorney shall do, or attempt to do, in the exercise of all or any of the
      powers, authorised and discretions pursuant to clause 12.1.

            

    

     

    
      	
              13  

            	
              CONTINUING
      SECURITY AND OTHER MATTERS

            

    

     

    
      	
              13.1  

            	
              Continuing
      security

            

    

     

    This deed
and the obligations of the Company under this deed (including, without
limitation, the Guarantees) shall extend to the ultimate balance from time to
time owing in respect of the Secured Obligations and shall be a continuing
security notwithstanding any intermediate payment, partial settlement or other
matter whatsoever.

     

    
      	
              13.2  

            	
              Liability
      unconditional

            

    

     

    The
liability of the Company shall not be affected nor shall any guarantee be
discharged or reduced by reason of:

     

    
      	
              (a)  

            	
              the
      Incapacity or any change in the name, style or constitution of the Company
      or other person liable;

            

    

     

    
      	
              (b)  

            	
              any
      Secured Party granting any time, indulgence or concession to, or
      compounding with, discharging, releasing or varying the liability of the
      Company or any other person liable;
or

            

    

     

    
      	
              (c)  

            	
              any
      amendment, variation or waiver (however material or fundamental) of the
      Credit Agreement; or

            

    

     

    
      	
              (d)  

            	
              any
      act or omission which would not have discharged or affected the liability
      of the Company had it been a principal debtor instead of a guarantor or
      anything done or omitted which but for this provision might operate to
      exonerate the Company.

            

    

     

    
      	
              13.3  

            	
              Collateral
      Instruments

            

    

     

    None of
the Secured Parties shall be obliged to make any claim or demand on the Company
or any other person liable or to resort to any Collateral Instrument or other
means of payment before enforcing this deed and no action taken or omitted in
connection with any such Collateral Instrument or other means of payment shall
discharge, reduce, prejudice or affect the liability of the Company (including,
without limitation, the liability of the Company under the
Guarantee).  None of the Secured Parties shall be obliged to account
for any money or other property received or recovered in consequence of any
enforcement or realisation of any such Collateral Instrument or other means of
payment.

     

    
      	
              13.4  

            	
              Waiver
      of Company’s rights

            

    

     

    Until all
the Secured Obligations have been paid, discharged or satisfied in full (and
notwithstanding payment of a dividend in any liquidation or under any compromise
or arrangement or the discharge by the Company of its liability under its
guarantee) the Company agrees that without the prior written consent of the
Agent it will not:

     

    
      	
              (a)  

            	
              exercise
      any rights of subrogation, contribution or indemnity against any other
      person liable;

            

    

     

    
      	
              (b)  

            	
              demand
      or accept any Collateral Instrument to be executed in respect of any of
      its obligations under this deed or any other Indebtedness now or hereafter
      due to the Company from any other person
liable;

            

    

     

    
      	
              (c)  

            	
              take
      any step to enforce any right against other person liable in respect of
      any such Secured Obligations;

            

    

     

    
      	
              (d)  

            	
              exercise
      any right of set-off or counter-claim against any other person liable or
      claim or prove or vote as a creditor in competition with any of the
      Secured Parties in the liquidation, administration or other insolvency
      proceeding of the Company or any other person liable or have the benefit
      of, or share in, any payment from or composition with, any other person
      liable or any Collateral Instrument now or hereafter held by any of the
      Secured Parties for any obligations or liabilities of any other person
      liable.

            

    

     

    
      	
              13.5  

            	
              Suspense
      accounts

            

    

     

    Any money
received in connection with a guarantee or pursuant to the realisation of any
security created pursuant to this deed (whether before or after any Incapacity
of the Company or any other person liable) may be placed to the credit of an
interest-bearing suspense account with a view to preserving the rights of the
Secured Parties to prove for the whole of their respective claims against the
Company or any other person liable.

     

    
      	
              13.6  

            	
              Settlements
      Conditional

            

    

     

    Except as
otherwise specified in a deed of release executed by the Agent, any release,
discharge or settlement between the Company and any of the Secured Parties shall
be conditional upon no security, disposition or payment to any of the Secured
Parties by the Company or any other person being void, set aside or ordered to
be refunded pursuant to any enactment or law relating to liquidation,
administration or insolvency or for any other reason whatsoever and if such
condition is not fulfilled the Agent shall be entitled to enforce this deed as
if such release, discharge or settlement had not occurred and any such payment
had not been made.

     

    
      	
              13.7  

            	
              Company
      to deliver up certain property

            

    

     

    If,
contrary to clause 13.4 (Waiver of
Company’s rights), the Company takes or receives the benefit of any security or
receives or recovers any money or other property, such security, money or other
property shall be held on trust for the Agent and shall be delivered to the
Agent on demand.

     

    
      	
              14  

            	
              CURRENCIES

            

    

     

    All
moneys received or held by the Agent or by a Receiver under this deed at any
time on or after the Enforcement Date in a currency other than a currency in
which the Secured Obligations are denominated may from time to time be sold for
such one or more of the currencies in which the Secured Obligations are
denominated as the Agent or Receiver considers necessary or desirable and the
Company shall indemnify the Agent against the full cost (including all
commissions, charges and expenses) incurred in relation to such
sale.  Neither the Agent nor any Receiver shall have any liability to
the Company in respect of any loss resulting from any fluctuation in exchange
rates after any such sale.

     

    
      	
              15  

            	
              DECLARATION
      OF TRUST

            

    

     

    
      	
              15.1  

            	
              Declaration
      of Trust

            

    

     

    The Agent
hereby declares itself trustee of the covenants, agreements and undertakings of
the Company contained in this deed and the security and other rights, titles and
interests constituted by this deed and of the Charged Assets and all other
moneys, property and assets paid to the Agent or held by the Agent or received
or recovered by the Agent pursuant to or in connection with this deed with
effect from the date of this deed to hold the same on trust for the Secured
Parties and to apply the same as follows:

     

    
      	
              (a)  

            	
              first
      as to a sum equivalent to the Secured Obligations for the Secured Parties
      absolutely; and

            

    

     

    
      	
              (b)  

            	
              secondly
      as to the balance (if any) for the Company or whoever else is entitled to
      such balance absolutely.

            

    

     

    
      	
              15.2  

            	
              Duration

            

    

     

    The
trusts constituted by this deed shall remain in full force and effect until
whichever is the earlier of:

     

    
      	
              (a)  

            	
              the
      expiration of the period of 80 years from the date of this deed;
      and

            

    

     

    
      	
              (b)  

            	
              receipt
      by the Agent of confirmation in writing from all the Secured Parties that
      the Secured Obligations have been repaid or discharged to the satisfaction
      of the Secured Parties and that none of the Secured Parties is under any
      obligation to permit any Secured Obligations to be incurred and the Credit
      Agreement has been terminated,

            

    

     

    and the
parties to this deed declare that the perpetuity period applicable to this deed
shall for the purposes of the Perpetuities and Accumulations Act 1964 be the
period of 80 years.

     

    
      	
              15.3  

            	
              Instructions
      and Certificates

            

    

     

    The Agent
shall be entitled to assume that any instructions or certificates received by it
from the Lenders under or pursuant to this deed or the Credit Agreement
are:

     

    
      	
              (a)  

            	
              given
      in accordance with the provisions of this deed or the relevant document;
      and

            

    

     

    
      	
              (b)  

            	
              given,
      where appropriate, in accordance with the directions of persons or the
      provisions of agreements by which the other Secured Parties are
      bound;

            

    

     

    and the
Agent shall not be liable to any other person for any action taken or omitted
under or in connection with this deed in accordance with any such instructions
or certificates unless caused by its gross negligence or wilful
misconduct.  The Agent shall be entitled to act and/or rely upon any
notice, request or other communication of any party to this deed for the
purposes of this deed or of the Credit Agreement if such notice, request or
other communication purports to be signed or sent by or on behalf of an
authorised signatory of such party.

     

    
      	
              15.4  

            	
              Powers
      and Discretions

            

    

     

    The Agent
shall have all the powers and discretions conferred upon trustees by the Trustee
Act 1925 (to the extent not inconsistent with this deed) and in addition all the
powers and discretions conferred upon the Agent by this deed and upon a Receiver
appointed under this deed and by way of supplement it is expressly declared as
follows:

     

    
      	
              (a)  

            	
              the
      Agent may in relation to any of the provisions of this deed and other
      related documents engage and pay all proper fees and expenses for the
      advice or services of and act on the opinion or advice of or any
      information obtained (whether by the Agent or any other person) from any
      lawyer, accountant, banker, broker, surveyor, valuer auctioneer, financial
      adviser or other professional adviser or other expert whose advice,
      services, opinion or information may to it seem necessary, expedient or
      desirable and the Agent shall not be responsible for any loss occasioned
      by so acting;

            

    

     

    
      	
              (b)  

            	
              any
      such advice or opinion or information referred to in clause 15.4(a) may be sent or obtained by letter
      or facsimile transmission or electronic mail and the Agent shall not be
      liable for acting on any advice, opinion or information purporting to be
      conveyed by any such letter or facsimile transmission or electronic mail
      although the same shall contain some error or shall not be authentic
      provided that such error or lack of authenticity is not
      manifest;

            

    

     

    
      	
              (c)  

            	
              the
      Agent shall be at liberty to place this deed and any other instruments,
      documents or title deeds delivered to it pursuant to or in connection with
      this deed for the time being in its possession in any safe deposit, safe
      or receptacle selected by the Agent or with any bank, any company whose
      business includes undertaking the safe custody of documents or any firm of
      lawyers and the Agent shall not be responsible for any loss thereby
      incurred (save that the Agent shall take reasonable steps to pursue any
      person who may be liable to it in connection with such
    loss);

            

    

     

    
      	
              (d)  

            	
              the
      Agent (or any director or officer of the Agent) shall not be precluded by
      reason of so acting from underwriting, guaranteeing the subscription of,
      subscribing for or otherwise acquiring, holding or dealing with any
      debentures, shares or securities whatsoever of the Company or any
      subsidiary thereof or any holding company of any the Company or any other
      subsidiary of any such holding company or any other company in which the
      Company or any such holding company or subsidiary may be interested or
      from entering into any contract or financial or other transaction with or
      from engaging in any other business with, or from accepting or holding the
      trusteeship of any other trust deed constituting or securing any
      securities issued by or relating to, the Company or any subsidiary thereof
      or any holding company of the Company or any other subsidiary of any such
      holding company or any other company in which the Company or any such
      holding company or subsidiary may be interested and shall not be liable to
      account for any profit made or payment received by it thereby or in
      connection therewith;

            

    

     

    
      	
              (e)  

            	
              the
      Agent may act by responsible officers or a responsible officer of the
      Agent and may also whenever it thinks fit delegate by power of attorney or
      otherwise to any person or persons or fluctuating body of persons all or
      any of the rights, trusts, powers, authorities and discretions vested in
      it by this deed and such delegation may be made upon such terms and
      subject to such conditions (including power to sub-delegate) and subject
      to such regulations as the Agent may think fit and the Agent shall not be
      bound to supervise the proceedings or (provided that the Agent shall have
      exercised reasonable care in the selection of such delegate) be in any way
      responsible for any loss incurred by reason of any misconduct or default
      on the part of any such delegate or
  sub-delegate;

            

    

     

    
      	
              (f)  

            	
              the
      Agent shall not be liable for acting in relation to this deed, or any
      related documents on any notice, request, certificate, direction or other
      communication or other document purporting to emanate from the Company or
      any other person notwithstanding that the same shall include some error or
      omission or not be authentic.  The Agent shall be in no way
      bound to call for further evidence or to be responsible for any loss that
      may be occasioned by its failure to do so or by its acting on any such
      certificate;

            

    

     

    
      	
              (g)  

            	
              the
      Agent may instead of acting personally employ and pay an agent whether
      being a lawyer or other person to transact or concur in transacting any
      business and to do or concur in doing all acts required to be done by the
      Agent including the receipt and payment of money and any trustee in
      respect hereof being a lawyer, accountant, banker, broker, valuer,
      auctioneer or other person engaged in any profession or business shall be
      entitled to charge and be paid all usual professional and other charges
      reasonably incurred for business transactions and acts done by him or his
      firm in connection with any this deed and also his charges in addition to
      disbursements for all other work and business done and all time spent by
      him or his firm in connection with matters arising in connection with this
      deed including matters which might or should have been attended to in
      person by a trustee not being engaged in any profession or
      business;

            

    

     

    
      	
              (h)  

            	
              the
      Agent may call for and rely (as to any matters of fact which might
      reasonably be expected to be within the knowledge of the Company) upon a
      certificate signed by two authorised signatories of the Company as
      sufficient evidence thereof and shall not be bound in any such case to
      call for further evidence or be responsible for any loss that may be
      occasioned by the Agent failing to do
so;

            

    

     

    
      	
              (i)  

            	
              notwithstanding
      anything else contained herein, the Agent may refrain from doing anything
      which would or might in its opinion be contrary to any law of any
      jurisdiction or any directive or regulation of any agency of any state
      (including any environmental directive or regulation) or which would or
      might otherwise render it liable to any person and may do anything which
      is, in its opinion, necessary to comply with any such law, directive or
      regulation;

            

    

     

    
      	
              (j)  

            	
              the
      Agent shall not be liable for any failure, omission or defect in
      perfecting the security constituted by or pursuant to this deed including,
      without limitation:

            

    

     

    
      	
              (i)  

            	
              failure
      to obtain any licence, consent or other authority for the execution of
      this deed including, without limitation, the consent of any person
      required under the terms of any documents constituting the Charged
      Assets;

            

    

     

    
      	
              (ii)  

            	
              failure
      to register the same in accordance with any of the documents of title of
      any of the Company to any of the Charged
Assets;

            

    

     

    
      	
              (iii)  

            	
              failure
      to effect or to procure registration of or otherwise protect any floating
      charge created by or pursuant to this deed by registering under the Land
      Registration Act 2002 any notice, restriction or other entry prescribed by
      or pursuant to the provisions of that Act, and it is the intention that
      the Agent shall not so effect or procure the registration of or otherwise
      so protect such floating charge;

            

    

     

    
      	
              (iv)  

            	
              failure
      to take or require the Company to take any steps to render any charge
      created by this deed effective as regards assets (if any) outside England
      and Wales or to secure the creation of any ancillary charge under the laws
      of any other territory concerned;
or

            

    

     

    
      	
              (v)  

            	
              failure
      by the Company  to perfect its title to all or any part of the
      Charged Assets so that the Agent shall not be bound to make any enquiries
      whatsoever as regards such title;

            

    

     

    
      	
              (k)  

            	
              the
      Agent and every attorney, agent or other person appointed by it under or
      in connection with this deed or any of the Credit Agreement shall be
      entitled to be indemnified and/or secured out of amounts received by the
      Agent under this deed or the Credit Agreement against all liabilities and
      expenses properly incurred in the execution of any power, trust, authority
      or discretion in connection with this deed and against all actions,
      proceedings, costs, claims and demands in respect of any matter or thing
      done or omitted to be done in any way relating to this deed, save to the
      extent that any such actions, proceedings, costs, claims or demands are
      caused by the gross negligence or wilful misconduct of the indemnified
      person;

            

    

     

    
      	
              (l)  

            	
              all
      moneys which under the trusts contained in this deed are received or held
      by the Agent following an Event of Default may be invested in the name of
      the Agent or any nominee or under the control of the Agent by placing the
      same on deposit in the name of the Agent or any nominee or under the
      control of the Agent at a bank and the Agent shall not be responsible for
      any loss occasioned thereby, whether by depreciation in value, fluctuation
      in exchange rates or otherwise;

            

    

     

    
      	
              (m)  

            	
              save
      as otherwise provided herein, the Agent shall (as between itself and the
      other Secured parties) have full power to determine all questions and
      doubts arising in relation to the interpretation or application of any of
      the provisions of this deed or the Credit Agreement as it affects the
      Agent and every such determination (whether made upon a question actually
      raised or implied in the acts or proceedings of the Agent) shall be
      conclusive and shall bind the other Secured Parties and the
      Company;

            

    

     

    
      	
              (n)  

            	
              the
      Agent shall not be bound to give notice to any person of the execution of
      this deed or the Credit Agreement or any transactions contemplated hereby
      or thereby;

            

    

     

    
      	
              (o)  

            	
              notwithstanding
      any other provision in the Credit Agreement, the other Secured Parties and
      the Company acknowledge that when exercising the rights, benefits, powers,
      trusts, authorities, discretions and obligations expressed to be granted
      to the Agent by this deed, the Credit Agreement or by operation of law,
      the Agent shall not be responsible for any loss, costs, damages, expenses
      or inconveniences that may result from the exercise or non-exercise
      thereof save that the Agent shall not be bound to act unless it is first
      indemnified and/or secured to its satisfaction by the Secured Parties (as
      the case may be) against all actions, proceedings, claims and demands to
      which it may render itself liable and all costs, charges, damages,
      expenses and liabilities which it may incur by so doing, save to the
      extent that any such actions, proceedings, costs, claims or demands are
      caused by the gross negligence or wilful misconduct of the
      Agent;

            

    

     

    
      	
              (p)  

            	
              any
      consent or approval given by the Agent for the purpose of this deed or the
      Credit Agreement may be given on such terms and subject to such conditions
      (if any) as the Agent may require and notwithstanding anything to the
      contrary contained in this deed;

            

    

     

    
      	
              (q)  

            	
              the
      Agent shall not be bound to take any steps to ascertain whether any event,
      condition or act, the happening of which would cause a right or remedy to
      become exercisable by the Agent under this deed or the Credit Agreement,
      has happened or to monitor or supervise the observance and performance by
      the Company or any of the other parties thereto of their respective
      obligations under the Credit Agreement or the obligations of the other
      Secured Parties and, until it shall have actual knowledge or express
      notice to the contrary, the Agent shall be entitled to assume that no such
      event, condition or act has happened and that the Company and each of the
      other parties thereto are observing and performing all their respective
      obligations thereunder;

            

    

     

    
      	
              (r)  

            	
              without
      prejudice to the provisions hereof and of the Credit Agreement relating to
      insurance, the Agent shall not be under any obligation to insure any of
      the Charged Assets or documents of title or other evidence in respect
      thereof or to require any other person to maintain any such insurance,
      shall not be under any responsibility in respect of the insurances
      required to be taken out pursuant to the Credit Agreement and shall not be
      responsible for any loss, expense or liability which may be suffered as a
      result of the lack of or inadequacy of any such
  insurance;

            

    

     

    
      	
              (s)  

            	
              the
      Agent shall not be responsible for any loss, expense or liability
      occasioned to the Charged Assets however caused by any act or omission of
      the Company or any other person (including any bank, broker, depository,
      warehouseman or other intermediary or any clearing system or the operator
      thereof) whether acting in accordance with or contrary to the terms of any
      agreement or otherwise and irrespective of whether the Charged Assets are
      held by or to the order of any of the foregoing persons, unless such loss
      is occasioned by the wilful neglect or misconduct or fraud of the
      Agent;

            

    

     

    
      	
              (t)  

            	
              the
      Agent shall not be liable for any error of judgment made in good faith by
      any officer or employee of the Agent assigned by the Agent to administer
      its corporate trust matters unless it shall be proved that the Agent was
      grossly negligent in ascertaining the pertinent
  facts;

            

    

     

    
      	
              (u)  

            	
              no
      provision of this deed or the Credit Agreement shall require the Agent to
      expend or risk its own funds or otherwise incur any financial liability in
      the performance of any of its duties, or in the exercise of any of its
      rights or powers solely in its capacity as trustee under this deed
      (including, without limitation, where it is so bound to act at the
      direction of the Agent), if it shall have reasonable grounds for believing
      that repayment of such funds or adequate indemnity and/or security against
      such risk or liability is not assured to
it;

            

    

     

    
      	
              (v)  

            	
              the
      Agent shall have no responsibility whatsoever to the Company or any of the
      Secured Parties as regards any deficiency or additional payment, as the
      case may be, which might arise because the Agent or the Company is subject
      to any tax in respect of the Charged Assets or any part thereof or any
      income therefrom or any proceeds
thereof;

            

    

     

    
      	
              (w)  

            	
              the
      Agent shall have only those duties, obligations and responsibilities
      expressly specified in this deed and the Credit Agreement and shall not
      have any implied duties, obligations or responsibilities.  In
      performing or carrying out its duties, obligations and responsibilities,
      the Agent shall be considered to be acting only in a mechanical and
      administrative capacity (save as expressly provided in this deed or the
      Credit Agreement) and shall not have or be deemed to have any duty,
      obligation or responsibility to or relationship of trust or agency with
      the Company;

            

    

     

    
      	
              (x)  

            	
              notwithstanding
      anything else herein contained, the Agent may refrain from taking any
      action or exercising any right, power, authority or discretion vested in
      it under this deed or the Credit Agreement, any of the Charged Assets or
      any other agreement relating to the transactions herein or therein
      contemplated until it has been indemnified and/or secured to its
      satisfaction against any and all actions, charges, claims, costs, damages,
      demands, expenses, liabilities, losses and proceedings (including legal
      and other professional fees) which might be brought, made or conferred
      against or suffered, incurred or sustained by it as a result and nothing
      contained in this deed shall require the Agent to expend or risk its own
      funds or otherwise incur any financial liability in the performance of its
      duties or the exercise of any right, power, authority or discretion
      hereunder if it has reasonable grounds for believing the repayment of such
      funds or adequate indemnity against, or security for, such risk or
      liability is not reasonably assured to it;
and

            

    

     

    
      	
              (y)  

            	
              notwithstanding
      anything contained in this deed, to the extent required by any applicable
      law, if the Agent is required to make any deduction or withholding from
      any distribution or payment made by it under this deed  or if
      the Agent is otherwise charged to, or may become liable to, tax as a
      consequence of performing its duties under this deed or the Credit
      Agreement, whether as principal, agent or otherwise, and whether by reason
      of any assessment, prospective assessment or other imposition of liability
      to taxation of whatsoever nature and whensoever made upon the Agent, and
      whether in connection with or arising from any sums received or
      distributed by it or to which it may be entitled under these presents
      (other than in connection with its remuneration as provided for herein) or
      any investments from time to time representing the same, including any
      income or gains arising therefrom, or any action of the Agent in or about
      the administration of the trusts of this deed (other than the remuneration
      herein specified) or otherwise, then the Agent shall be entitled to make
      such deduction or withholding or (as the case may be) to retain out of
      sums received by it an amount sufficient to discharge any liability to tax
      which relates to sums so received or distributed or to discharge any such
      other liability of the Agent to tax from the funds held by the Agent on
      the trusts of this deed.

            

    

     

    
      	
              15.5  

            	
              Power
      in addition

            

    

     

    The
powers conferred by this deed upon the Agent shall be in addition to any powers
which may from time to time be vested in it by general law or as the holder or
mortgagee in possession of any of the Charged Assets.  Part 1 of the
Trustee Act 2000 shall not apply to the trusts created by this
deed.

     

    
      	
              15.6  

            	
              Exculpation
      of Agent

            

    

     

    The Agent
shall:

     

    
      	
              (a)  

            	
              not
      be bound to (and it is the intention that it shall not) account to any
      person for any sum received by it for its own account or the profit
      element of any such sum;

            

    

     

    
      	
              (b)  

            	
              not
      have any duty or responsibility, either initially or on a continuing
      basis:

            

    

     

    
      	
              (i)  

            	
              to
      provide any other Secured Party with any information with respect to the
      Company whenever coming into its possession or to provide any other person
      with any communication received by it under or in connection with this
      deed; or

            

    

     

    
      	
              (ii)  

            	
              to
      investigate the application of sums distributed pursuant to this
      deed;

            

    

     

    
      	
              (c)  

            	
              not
      examine or enquire into (unless the Agent considers it appropriate to do
      so following receipt of instructions to enforce the security constituted
      by or pursuant to this deed) or be responsible for the legality, validity,
      effectiveness, adequacy or enforceability of this deed, the Credit
      Agreement or any agreement, assignment or other document relating to any
      of the foregoing or its ability to exercise the rights, trusts, powers,
      authorities and discretions conferred by this deed or any other of the
      foregoing, and so that the Agent shall not be responsible for its
      inability to exercise any of the same or for any loss or damage thereby
      occasioned and, in particular but without prejudice to the generality of
      the foregoing, the Agent shall not be liable to the other Secured Parties
      for any damage or loss arising from any want of due formality in the
      constitution of the security constituted by or pursuant to this deed
      resulting in the illegality, invalidity, ineffectiveness, inadequacy or
      unenforceability of such security and it is hereby confirmed that prior to
      the date hereof the Agent has not made (and it was the intention that it
      should not make) any such examination or enquiry as
    aforesaid;

            

    

     

    
      	
              (d)  

            	
              not
      be bound to disclose to any other person any information relating to the
      Company or any of them if such disclosure would or might in its opinion
      constitute a breach of any law or regulation or be otherwise actionable at
      the suit of any person;

            

    

     

    
      	
              (e)  

            	
              not
      under this deed be concerned with the interests of or owe any duty
      whatsoever to any persons other than the Secured
  Parties;

            

    

     

    
      	
              (f)  

            	
              be
      entitled at any time to appoint (and subsequently to dismiss) such other
      person or persons as it thinks fit to become additional trustees under
      this deed to assist it in carrying out its duties under this deed and each
      such additional trustee shall be entitled to the same rights and subject
      to the same obligations under this deed as the
  Agent;

            

    

     

    
      	
              (g)  

            	
              accept
      without enquiry, requisition or objection or investigation of title such
      title as the Company may have to the Charged Assets;
  and

            

    

     

    
      	
              (h)  

            	
              subject
      to the Agent's discretions given to it under this deed, not be under any
      obligation to hold any title deeds or other documents in connection with
      the Charged Assets in its own
      possession or under its own control or to take any steps to protect or
      preserve or insure the same and the Agent may permit the Company to retain
      all such title deeds and other documents in connection with the Charged
      Assets in their possession and the Agent shall not be responsible for any
      loss incurred in connection with such deposit or
    possession.

            

    

     

    
      	
              15.7  

            	
              Investigations

            

    

     

    It is
understood and agreed by each Secured Party that it has itself been, and will
continue to be, solely responsible for making its own independent appraisal of,
and investigations into, the financial condition, creditworthiness, condition,
value, affairs, status and nature of the Company and the Charged Assets and,
accordingly, each Secured Party is deemed to confirm to the Agent that it has
not relied and will not hereafter rely on the Agent:

     

    
      	
              (a)  

            	
              to
      check or enquire on its behalf into the adequacy, accuracy or completeness
      of any information provided by the Company in connection with this deed;
      or

            

    

     

    
      	
              (b)  

            	
              to
      assess or keep under review on its behalf the financial condition,
      creditworthiness, condition, value, affairs, status or nature of the
      Company and its respective subsidiaries or the Charged
    Assets.

            

    

     

    
      	
              15.8  

            	
              Written
      certificates

            

    

     

    The
Company will, on request from the Agent, promptly give to the Agent a written
certificate in such form as the Agent may reasonably require setting out all
information available to it reasonably requested by the Agent to facilitate the
performance by the Agent of its rights, trusts, powers, authorities,
discretions, duties and obligations under this deed, such certificate to be
signed by two directors.

     

    
      	
              15.9  

            	
              Accession
      Undertakings

            

    

     

    Each of
the Secured Parties hereby appoints the Agent to receive on its behalf each
Accession Undertaking and to countersign the same if, in the Agent's opinion, it
is complete and appears on its face to be authentic and duly
executed.  No Accession Undertaking shall be effective unless and
until duly countersigned by the Agent.

     

    
      	
              15.10  

            	
              Costs
      and Expenses

            

    

     

    The
Company shall on demand pay to the Agent an amount equal to all costs and
expenses of the Agent reasonably and properly incurred in the negotiation,
preparation and execution of this deed and any documents relating hereto or in
the release of the security constituted by this deed (in each case including but
not limited to legal fees and stamp duty) and all value added tax and similar
tax charged or chargeable in respect thereof.

     

    
      	
              15.11  

            	
              Resignation

            

    

     

    
      	
              (a)  

            	
              The
      Agent may at any time, and without assigning any reason therefor or being
      responsible for any costs occasioned thereby, give not less than 30 days'
      notice to the Secured Parties of its desire to retire from the trusteeship
      of this deed and request the Secured Parties within such 30 day period to
      appoint a replacement Agent, whereupon the Secured Parties may appoint a
      replacement Agent.

            

    

     

    
      	
              (b)  

            	
              The
      retirement of the Agent under clause 15.11(a) shall not take effect until the
      appointment of a replacement trustee has been effected by the Secured
      Parties pursuant to clause 15.11(a) and the replacement Agent has
      confirmed its agreement to be bound by the provisions of this deed
      whereupon the retiring Agent shall thereby forthwith be discharged from
      any further obligations under this deed (but without prejudice to any
      accrued liabilities under this deed) but shall remain entitled to the
      benefit of clause 15 and the
      replacement Agent shall have all the rights, trusts, powers, authorities,
      discretions, duties and obligations of the Agent under this deed as if it
      had been a party to this deed.

            

    

     

    
      	
              (c)  

            	
              The
      resignation or removal of the retiring Agent and the appointment of any
      successor Agent shall both become effective upon the successor Agent
      notifying the other Secured Parties and the Company in writing that it
      accepts such appointment and executing an Accession Undertaking whereupon
      the successor Agent shall succeed to the position of the retiring Agent
      and the term "Agent" in this deed and the Credit Agreement shall include
      such successor Agent where appropriate.  Clause 15 shall continue to benefit a
      retiring Agent in respect of any action taken or omitted by it under this
      deed or the Credit Agreement while it was a
  Agent.

            

    

     

    
      	
              (d)  

            	
              The
      Company shall take such action as may be necessary, and the Agent at the
      request (and properly incurred cost) of the Company  shall take
      such action as may be practicable, in order that the Credit Agreement and
      this deed or replacements therefor shall provide for effective and
      perfected security in favour of any replacement Agent including making
      available to the replacement Agent such documents and records as the
      successor Agent shall request (acting reasonably) and entering into any
      documentation necessary to transfer title to the Charged Assets to the
      replacement Agent.

            

    

     

    
      	
              16  

            	
              MISCELLANEOUS

            

    

     

    
      	
              16.1  

            	
              Liabilities
      survive deficiencies and releases

            

    

     

    The
Company agrees to be bound by this deed notwithstanding that any person intended
to execute or to be bound by this deed may not do so or may not be effectually
bound and notwithstanding that any guarantees or charges contained in this deed
may be terminated or released or may be or become invalid or unenforceable
whether or not the deficiency is known to any of the Secured
Parties.

     

    
      	
              16.2  

            	
              Exchange
      of information

            

    

     

    The
Company hereby authorises the Secured Parties to exchange between themselves any
information concerning the Company and its business including the operation and
state of its bank accounts.

     

    
      	
              16.3  

            	
              Remedies
      Cumulative

            

    

     

    No
failure or delay on the part of the Secured Parties or any of them to exercise
any power, right or remedy shall operate as a waiver thereof nor shall any
single or any partial exercise or waiver of any power, right or remedy preclude
its further exercise or the exercise of any other power, right or
remedy.

     

    
      	
              16.4  

            	
              Statutory
      power of leasing

            

    

     

    Following
the Enforcement Date, the statutory and any other powers of leasing, letting,
entering into agreements for leases or lettings and accepting or agreeing to
accept surrenders of leases or tenancies shall not be exercisable by the Company
in relation to the Charged Assets or any part thereof.

     

    
      	
              16.5  

            	
              Successors
      and assigns

            

    

     

    Any
appointment or removal of a Receiver under clause 9 (Appointment and Powers of
Receiver) and any consents under this deed may be made or given in writing
signed or sealed by any successors or assigns of the Agent and accordingly the
Company hereby irrevocably appoints each successor and assign of the Agent to be
its attorney in the terms and for the purposes set out in clause 12 (Power of Attorney).

     

    
      	
              16.6  

            	
              Consolidation

            

    

     

    Section
93 Law of Property Act 1925 shall not apply to the security created by this deed
or to any security given to the Agent or any of the other Secured Parties
pursuant to this deed.

     

    
      	
              16.7  

            	
              No
      Set-Off or Withholding

            

    

     

    
      	
              (a)  

            	
              All
      payments to be made by the Company to the Agent under this deed shall be
      made in full. They will be free and clear of any right of set-off and from
      any restriction, condition or deduction because of any
      counterclaim.

            

    

     

    
      	
              (b)  

            	
              If
      the Company is required by law to make any deduction, payment or
      withholding in respect of any payment made, or due to be made, by it to
      the Agent, then the sum payable by the Company shall be increased to the
      extent necessary to ensure that, after making the deduction, withholding
      or payment, the Agent receives on the due date and retains (free from any
      liability in respect of the deduction, withholding or payment) a net sum
      equal to that which it would have received and retained had no deduction,
      withholding or payment been required or
made.

            

    

     

    
      	
              16.8  

            	
              Reorganisation

            

    

     

    This deed
shall remain binding on the Company notwithstanding any change in the
constitution of any of the Secured Parties or its absorption in, or amalgamation
with, or the acquisition of all or part of its undertaking by, any other person,
or any reconstruction or reorganisation of any kind.  The security
granted by this deed shall remain valid and effective in all respects in favour
of the Agent for itself and as trustee for the Secured Parties and any assignee,
transferee or other successor in title of a Secured Party in the same manner as
if such assignee, transferee or other successor in title had been named in this
deed as a party instead of, or in addition to, that Secured Party.

     

    
      	
              16.9  

            	
              Unfettered
      discretion

            

    

     

    Save
where specifically provided to the contrary in this deed, any liability or power
which may be exercised or any determination which may be made under this deed by
the Agent may be exercised or made in its absolute and unfettered discretion and
it shall not be obliged to give reasons therefor.

     

    
      	
              16.10  

            	
              Law
      of Property (Miscellaneous Provisions) Act
1989

            

    

     

    For the
purposes of the Law of Property (Miscellaneous Provisions) Act 1989 any
provisions of the Credit Agreement relating to any disposition of an interest in
land shall be deemed to be incorporated in this deed.

     

    
      	
              16.11  

            	
              Accession

            

    

     

    Each
party to this deed agrees that a new Agent or Secured Party may accede to and
become a party to this deed in its relevant capacity by duly completing an
Accession Undertaking.

     

    
      	
              16.12  

            	
              Release

            

    

     

    Upon all
the Secured Obligations having been paid or discharged in full and the Agent and
all other Lenders having ceased to have any further obligations under any of the
Other Documents whether actual or contingent to make any credit or accommodation
to any of the Borrowers or Guarantors, the Agent will, to the extent permitted
in accordance with the terms of the Credit Agreement, at the request and cost of
the Company,  execute, reassign and/or do all such deeds, acts and things
as may be reasonably necessary to release the Charged Assets from the security
created by or pursuant to this deed.

     

    
      	
              17  

            	
              NOTICES

            

    

     

    
      	
              17.1  

            	
              Requirements
      for Notices

            

    

     

    Every
notice, request, demand or other communication under this deed
shall:

     

    
      	
              (a)  

            	
              be
      in writing delivered personally or by first-class pre-paid letter or
      facsimile transmission only;

            

    

     

    
      	
              (b)  

            	
              be
      deemed to have been received, subject as otherwise provided in this deed,
      in the case of a letter, when delivered and, in the case of a facsimile
      transmission, when a complete and legible copy is received by the
      addressee (unless the time of despatch is after close of business in which
      case it shall be deemed to have been received at the opening of business
      on the next business day); and

            

    

     

    
      	
              (c)  

            	
              be
      sent:

            

    

     

    
      	
              (i)  

            	
              to
      the Company at:

            

    

     

    Unit
1

    The
Summit Centre

    Syport
Drive, Harmondsworth

    West
Drayton, Middlesex

    UB7
0LJ

    

    Fax
Number:                                +44
20-3745-8151

    Attention:                      The
Directors

    

    
      	
              (ii)  

            	
              to
      the Agent at such address as provided for from time to time under the
      Credit Agreement,

            

    

     

    or to
such other address or fax number as is notified by the Company or, as the case
may be, the Agent to the other party.

     

    
      	
              18  

            	
              LAW

            

    

     

    This deed
shall be governed by English law.

     

    IN WITNESS of which this deed
has been executed and delivered by or on behalf of the parties on the date
stated at the beginning of this deed.

     

    
      
        
          BST99
1649183-1.069646.0035

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    

     

    

     

    SCHEDULE
1                                    

     

    

     

    Properties

     

    

     

    

     

    
      
        
           

          BST99
1649183-1.069646.0035

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
2                                    

     

    

     

    Securities

     

    
      	
              Shareholder

            	
              Company
      in which shares are held

            	
              Number
      and type of shares

            

    

    

     

    
      
        
           

          BST99
1649183-1.069646.0035

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    SCHEDULE
3

     

    

     

    Intellectual
Property

     

    None.

     

    
      
        
           

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    SCHEDULE
4                                    

     

    

     

    Notice
of Charge

     

    Part
1

     

    Form
of Notice of Charge to Account Bank

     

    

     

    To:

     

    [Branch Address]

     

    Date:           [·                ]

     

    Dear
Sirs,

     

    We hereby
give you notice that, by a Guarantee and Debenture dated [·                ]
(a copy of which is attached) (the "Debenture"), we charged to
PNC Bank, National Association (the "Agent") all moneys (including
interest) from time to time standing to the credit of each of our present and
future accounts with any bank, financial institution or other person, which
includes all of our rights in respect of the following accounts held with you
(the "Accounts") and the
debt or debts represented thereby:

     

    
      	
              Account
      Holder

            	
              Currency

            	
              Account
      number

            
	
              Presstek
      Europe Ltd.

            	
              GBP

            	
              ________________________

            
	
              Presstek
      Europe Ltd.

            	
              EURO

            	
              ________________________

            
	
              Presstek
      Europe Ltd.

            	
              USD

            	
              ________________________

            
	
              Presstek
      Europe Ltd.

            	
              YEN

            	
              ________________________

            

    

     

    We hereby
irrevocably authorise and instruct you, upon receipt by you of a written request
from the Agent stating that it is enforcing its rights under the
Debenture:

     

    
      	
              1  

            	
              to
      disclose to the Agent without any reference to, or further authority from,
      us and without any inquiry by you as to the justification for such
      disclosure, such information relating to any of the Accounts as the Agent
      may, at any time and from time to time, request you to disclose to
      it;

            

    

     

    
      	
              2  

            	
              to
      hold to the order of the Agent all sums from time to time standing to the
      credit of the Accounts in our name with
you;

            

    

     

    
      	
              3  

            	
              to
      pay or release all or any part of the sums from time to time standing to
      the credit of the Accounts in accordance with the written instructions of
      the Agent at any time or times;

            

    

     

    
      	
              4  

            	
              to
      comply with the terms of any written notice or instructions in any way
      relating to or purporting to relate to the charge specified above, the
      sums standing to the credit of the Accounts from time to time or the debts
      represented thereby which you receive at any time from the Agent without
      reference to, or further authority from, us and without any inquiry by you
      as to the justification for or validity of such notice or
      instructions.

            

    

     

    Please
also note that these instructions shall not be revoked or varied without the
prior written consent of the Agent.

     

    This
letter shall be governed by English law.

     

    Would you
please confirm your agreement to the above by sending the enclosed
acknowledgement to the Agent with a copy to ourselves.

     

    Yours
faithfully

     

    For and
on behalf of Presstek Europe Limited

     

    .....................................................

    (Authorised
signatory)

    

    
      
        
           

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    Part
2

     

    Form
of Acknowledgement of Notice of Charge from the Account Bank

     

    

     

    To:           PNC
Bank, National Association

     

    cc:           Presstek
Europe Limited

     

    [·                ]

     

    Dear
Sirs,

     

    We
confirm receipt from [name of account holding Company] (the "Company") of a notice dated
[·                ]
of a charge upon the terms of a Guarantee and Debenture dated [·                ]
(the "Debenture") of all
moneys (including interest) from time to time standing to the credit of each of
the Company’s present and future accounts with us (the "Accounts") and the debt or
debts represented thereby.

     

    We
confirm that we have not received notice of the interest of any third party in
any of the Accounts.

     

    We
confirm that we will not claim or exercise any right of set-off or any
combination of accounts or counterclaim in relation to the Company and/or the
Accounts.

     

    We note
that the Company has the right to continue to operate the Accounts until the
date on which we receive from you a written request stating that you are
enforcing your rights under the Debenture.

     

    This
letter shall be governed by English law.

     

    Yours
faithfully

     

    for and
on behalf of [Bank]

     

    

     

    ...........................................

    (Authorised
signatory)

    
      
        
           

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    SCHEDULE
5                                    

     

    

     

    Disposal
of Charged Assets

     

    Part
1

     

    Form
of letter of Request to dispose of Charged Assets

     

    To:           PNC
Bank, National Association

     

    

     

    Dear
Sirs

     

    We refer
to clause 3.5 of the guarantee and debenture dated [·                ]
granted to you by us ("Debenture").

     

    We hereby
request your consent to dispose of [asset] being a Fixed Charged Asset (as
defined in the Debenture).  We wish to dispose of [asset] to
[purchaser] [describe terms].

     

    Please
confirm your consent to the above disposal by signing and returning the enclosed
letter.

     

    

     

    Yours
faithfully

     

    

     

    .....................................

     

    for and
on behalf of

     

    [Company]

     

    
      
        
           

          BST99
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    Part
2

     

    Form
of letter of consent to dispose of Charged Assets

     

    

     

    To:           [Company]

     

    [·                ]

     

    Dear
Sirs

     

    We refer
to your letter of [date], a copy of which is attached.

     

    We hereby
consent to the disposal of [asset] to [purchaser] [on terms] [on the condition
that [specify conditions of consent to disposal]].

     

    Yours
faithfully

     

    

     

    

     

    .................................................

     

    for and
on behalf of

    PNC Bank,
National Association

    
      
        
           

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    SCHEDULE
6

     

    

     

    Accession
Undertaking

     

    THIS UNDERTAKING is made the
     day of
                           20      by
[new Agent/ new Secured Party] (the “Acceding Agent / Secured
Party") in relation to the Guarantee and Debenture (the "Guarantee and Debenture")
dated
[                   ]
between, inter alios, [   ].  Terms defined in the
Guarantee and Debenture shall bear the same meanings herein.

     

    The
Acceding Agent / Secured Party hereby agrees with each other person who is or
becomes a party to the Guarantee and Debenture that with effect on and from the
date hereof it will be bound by the Guarantee and Debenture as [the Agent / a
Secured Party] as if it had been an original party thereto in that
capacity.

     

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

     

    [Execution
as a deed]

     

    
      
        
           

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    SCHEDULE
7

     

    

     

    Notice
of Assignment

     

    

     

    To:           [insert
name and address of counterparty]

     

    Dated:                       

    

     

    Dear
Sirs

     

    Re:
[here identify the relevant Assigned Agreement] (the "Agreement")

     

    We notify
you that [insert name of
Company] (the
"Company") has assigned
to PNC Bank, National Association (the "Agent") for the benefit of
itself and certain other financial institutions (the "Secured Parties") all its
right, title and interest in the Agreement as security for certain obligations
owed by the Company to the Secured Parties.

     

    We
further notify you that:

     

    
      	
              1  

            	
              you
      may continue to deal with the Company in relation to the Agreement until
      you receive written notice to the contrary from the Agent stating that it
      is accelerating its rights under a financing agreement dated
      [   ].  Thereafter the Company will cease to have
      any right to deal with you in relation to the Agreement and therefore from
      that time you should deal only with the
Agent;

            

    

     

    
      	
              2  

            	
              you
      are authorised to disclose information in relation to the Agreement to the
      Agent on request;

            

    

     

    
      	
              3  

            	
              after
      receipt of written notice in accordance with paragraph 1 above, you must
      pay all monies to which the Company is entitled under the Agreement direct
      to the Agent (and not to the Company) unless the Agent otherwise agrees in
      writing; and

            

    

     

    
      	
              4  

            	
              the
      provisions of this notice may only be revoked with the written consent of
      the Agent.

            

    

     

    Please
sign and return the enclosed copy of this notice to the Agent by way of
confirmation that:

     

    
      	
              (a)  

            	
              you
      agree to the terms set out in this notice and to act in accordance with
      its provisions; and

            

    

     

    
      	
              (b)  

            	
              you
      have not received notice that the Company has assigned its rights under
      the Agreement to a third party or created any other interest (whether by
      way of security or otherwise) in the Agreement in favour of a third
      party.

            

    

     

    The
provisions of this notice are governed by English law.

     

    Yours
faithfully

     

    

     

    

     

    ............................

    for and
on behalf of

    [insert name of
Company]

    

    

    

    

    [On
acknowledgement copy]

     

    To:                      PNC
Bank, National Association

    [Address]

    

    

     

    We
acknowledge receipt of the above notice and confirm the matters set out in
paragraphs (a) and (b) above.

     

    

    

    

    .............................

    for and
on behalf of

    [insert name of
Counterparty]

    

    

    Dated:                       

    
      
        
           

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    SCHEDULE
8

     

    Notice
of Assignment

     

    

     

    
      	
              447375.132-1786848.2

            

    

    LANDLORD’S
WAIVER AND CONSENT

     

    NAME OF OWNER OF
PROPERTY:___________________(the “Landlord”)

     

    ADDRESS OF
PROPERTY:_________________________________ (the “Premises”)

     

    WHEREAS, the Landlord is the
owner or superior landlord of the Premises and has or is about to enter into a
lease or sub-lease (the “Lease”) with Presstek Europe Limited (the “Guarantor”)
pursuant to which the Guarantor has or will acquire a leasehold interest in all
or a portion of the Premises; and

     

    WHEREAS, PNC BANK, NATIONAL
ASSOCIATION (“PNC”) and various other financial institutions (collectively, the
“Lenders”) and PNC as agent for the Lenders (the “Agent”) has or is about to
enter into a financing transaction with the Guarantor’s ultimate parent company,
Presstek, Inc., and related companies (the “Group”); and

     

    WHEREAS to secure the
financing to the Group, the Guarantor has granted to the Agent for its benefit
and for the ratable benefit of the Lenders a guarantee and debenture over all
property and assets of the Guarantor from time to time, including, without
limitation, goods, inventory, machinery and equipment, together with all
additions, substitutions, replacements and improvements to, and the products and
proceeds of the foregoing (collectively, the “Collateral”) and a qualifying
floating charge over substantially all of the assets of the Guarantor;
and

     

    WHEREAS, all or a portion of
the Collateral may from time to time be located at the Premises or may become
wholly or partially affixed to the Premises;

     

    NOW THEREFORE, in
consideration of any financial accommodation extended by the Agent and the
Lenders at any time the Landlord hereby agrees as follows:

     

     

    1           A
true and correct copy of the Lease is attached hereto as Exhibit
A.  The Lease is in full force and effect and the Landlord is not
aware of any existing default under the Lease.

     

     

    2.           The
Collateral may be stored, utilized and/or installed at the Premises and shall
not be deemed a fixture or part of the Premises but shall at all times be
considered personal property, whether or not any of the Collateral becomes so
related to the land that an interest therein arises under land law.

     

     

    3.           Until
such time as the obligations of the Guarantor to the Agent and the Lenders are
paid in full, the Landlord disclaims any interest in the Collateral, and agrees
not to distrain or levy upon any of the Collateral or to assert any claim
against the Collateral for any reason.

     

     

    4.           The
Agent, any the Lender or their representatives may enter upon the Premises at
any time to inspect or remove the Collateral, and may advertise and conduct
public auctions or private sales of the Collateral at the Premises, in each case
without liability of the Agent or the Lenders to Landlord; provided however,
that the Agent and the Lenders shall promptly repair, at their expense, any
physical damage to the Premises actually caused by said removal by the Agent and
the Lenders. the Agent and the Lenders shall not be liable for any diminution in
value of the Premises caused by the absence of Collateral actually removed or by
any necessity of replacing the Collateral.

     

     

    5.           The
Landlord shall not interfere with any sale of the Collateral, by public auction
or otherwise, conducted by or on behalf of the Agent and the Lenders on the
Premises.

     

     

    6.           The
Landlord agrees to provide the Agent with written notice of any default or
claimed default by the Guarantor under the Lease, and prior to the termination
of the Lease, to permit the Agent and the Lenders the same opportunity to cure
or cause to be cured such default as is granted the Guarantor under the Lease,
provided, however that the Agent and the Lenders shall have at least ten (10)
days following receipt of said notice to cure such default.  The
Landlord will permit the Agent and the Lenders to remain on the Premises for a
period of up to one hundred eighty (180) days following receipt by the Agent of
written notice from Landlord that Landlord is in possession and control of the
Premises, has terminated the Lease and is directing removal of the Collateral,
subject, however, to the payment to Landlord by the Agent and/or the Lenders of
the basic rent due under the Lease for the period of occupancy by the Agent and
the Lenders, pro-rated on per diem basis determined on a 30 day
month.  The Agent’s and the Lenders’ right to occupy the Premises
under the preceding sentence shall be extended for the time period the Agent and
the Lenders are prohibited from selling the Collateral due to the imposition of
the automatic stay by the commencement of an administration by the Guarantor or
the making of an administration order in respect of the
Guarantor.  The Agent and the Lenders shall not assume nor be liable
for any unperformed or unpaid obligations of the Guarantor under the
Lease.

     

     

    7.           This
waiver shall inure to the benefit of the Agent, the Lenders, their successors
and assigns and shall be binding upon Landlord, its heirs, assigns,
representatives and successors.  Landlord agrees and consents to the
filing of this document for recording at the Land Registry.

     

     

    8.           All
notices to the Agent hereunder shall be in writing, sent by certified mail, and
shall be addressed to the Agent at the following address: 340 Madison Avenue,
New York, New York 10173, Attn: Relationship Manager - Presstek,
Inc.

     

     

    

     

     

    [Signature Page Follows This
Page]

     

     

    

     

    

     

    
      
        
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    Dated
this _____ day of March, 2010.

     

    

     

    
      	 
      	
              LANDLORD:_________________________

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:______________________________

            
	 
      	
              Name:

            
	 
      	
              Title:

            

    

    

     

    
      
        
           

          BST99
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    SIGNATURE
PAGES

    TO
THE COMPOSITE GUARANTEE AND DEBENTURE

     

    EXECUTED and delivered as a
deed by PRESSTEK
EUROPE  LIMITED acting by:

     

    
      	
              Director

            	 
      
	
              Signature

            	
              :           /S/
      James R. Van Horn

            
	
              Name

            	
              :           James
      R. Van Horn

            

    

    

     

    In the
presence of:

     

    Witness
Name:                                                      Ineke
Kuijpers

     

    Witness
Signature:                                                      /S/
Ineke Kuijpers

     

    

     

    SIGNED for and on behalf of
PNC BANK, NATIONAL ASSOCIATION
by:

     

    
      	
              Authorised
      Signatory

            	 
      
	
              Signature

            	
              /S/ Thomas J.
    Lorenz

            
	
              Name

            	
              Thomas J.
  Lorenz

            

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    Composite
Guarantee and Debenture

    
      
        
           

          BST99
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                                 EXHIBIT
10.5

     

    

     

    GUARANTEE

     

     March
19, 2010

     

    FOR VALUE RECEIVED, and in
consideration of loans made or to be made or credit otherwise extended or to be
extended by Agent and Lenders (as those terms are defined below) to or for the
account of Presstek, Inc. (“PI” and together with each
other Person which becomes a Borrower under the Loan Agreement (as defined
below), each, a “Borrower” and collectively,
“Borrowers”) from time
to time and at any time and for other good and valuable consideration, and to
induce Agent and Lenders to make such loans or extensions of credit and to make
or grant such renewals, extensions, releases of collateral or relinquishments of
legal rights as Agent and Lenders may deem advisable, the undersigned (the
“Guarantor” or “the undersigned”)
unconditionally guaranties to Agent, Lenders, their successors, endorsees and
assigns, the prompt payment when due (whether by acceleration or otherwise) of
all present and future obligations and liabilities of any and all kinds of
Borrowers to Agent and Lenders and of all instruments of any nature evidencing
or relating to any such obligations and liabilities upon which any Borrower or
one or more parties and any Borrower is or may become liable to Agent and
Lenders, whether incurred by any Borrower as maker, endorser, drawer, acceptor,
guarantor, accommodation party or otherwise, and whether due or to become due,
secured or unsecured, absolute or contingent, joint or several, and however or
whenever acquired by Agent and Lenders, arising under, out of, or in connection
with that certain Revolving Credit and Security Agreement dated as of the date
hereof among Borrowers, the financial institutions named therein or which
hereafter become a party thereto (each, a “Lender” and collectively,
“Lenders”) and PNC Bank,
National Association, as agent for Lenders (in such capacity, “Agent”) (as amended, modified,
restated or supplemented from time to time, the “Loan Agreement”) or any
documents, instruments or agreements relating to or executed in connection with
the Loan Agreement or any documents, instruments or agreements referred to
therein (together with the Loan Agreement, as each may be amended, modified,
restated or supplemented from time to time, the “Loan Documents”) (all of which
are herein collectively referred to as the “Obligations”), and
irrespective of the genuineness, validity, regularity or enforceability of such
Obligations, or of any instrument evidencing any of the Obligations or of any
collateral therefor or of the existence or extent of such collateral, and
irrespective of the allowability, allowance or disallowance of any or all of the
Obligations in any case commenced by or against any Borrower under Title 11,
United States Code, including, without limitation, obligations or indebtedness
of Borrowers for post-petition interest, fees, costs and charges that would have
accrued or been added to the Obligations but for the commencement of such
case.  Capitalized terms used herein which are not otherwise defined
herein shall have the meanings given to them in the Loan Agreement.

     

    In
furtherance of the foregoing, the undersigned hereby agrees as
follows:

     

    1. No
Impairment.  Agent and Lenders may at any time and from time to
time, either before or after the maturity thereof, without notice to or further
consent of the undersigned, extend the time of payment of, exchange or surrender
any collateral for, renew or extend any of the Obligations or increase or
decrease the interest rate thereon, and may also make any agreement with any
Borrower or with any other party to or person liable on any of the Obligations,
or interested therein, for the extension, renewal, payment, compromise,
discharge or release thereof, in whole or in part, or for any modification of
the terms thereof or of any agreement among Agent and/or Lenders and any
Borrower or any such other party or person, or make any election of rights Agent
and/or Lenders may deem desirable under the United States Bankruptcy Code, as
amended, the Companies’
Creditors Arrangement Act, the Bankruptcy and Insolvency
Act, the Winding-up and
Restructuring Act or any other U.S. or Canadian federal, Canadian
provincial or U.S. state bankruptcy, reorganization, moratorium or insolvency
law relating to or affecting the enforcement of creditors’ rights generally (any
of the foregoing, an “Insolvency Law”) without in
any way impairing or affecting this Guarantee.  This instrument shall
be effective regardless of the subsequent incorporation, merger or consolidation
of any Borrower, or any change in the composition, nature, personnel or location
of any Borrower and shall extend to any successor entity to such Borrower,
including a debtor in possession or the like under any Insolvency
Law.

     

    2. Guarantee
Absolute.  The undersigned guarantees that the Obligations will
be paid strictly in accordance with the terms of the Loan Agreement and/or any
other document, instrument or agreement creating or evidencing the Obligations,
regardless of any law, regulation or order now or hereafter in effect in any
jurisdiction affecting any of such terms or the rights of Borrowers with respect
thereto.  Guarantor hereby knowingly accepts the full range of risk
encompassed within a contract of “continuing guarantee” which risk includes the
possibility that Borrowers will contract additional indebtedness for which
Guarantor may be liable hereunder after Borrowers’ financial condition or
ability to pay their lawful debts when they fall due has deteriorated, whether
or not Borrowers have properly authorized incurring such additional
indebtedness.  The undersigned acknowledges that (i) no oral
representations, including any representations to extend credit or provide other
financial accommodations to Borrowers, have been made by Agent or Lenders to
induce the undersigned to enter into this Guarantee and (ii) any extension of
credit to the Borrowers shall be governed solely by the provisions of the Loan
Agreement.  The liability of the undersigned under this Guarantee
shall be absolute and unconditional, in accordance with its terms, and shall
remain in full force and effect without regard to, and shall not be released,
suspended, discharged, terminated or otherwise affected by, any circumstance or
occurrence whatsoever, including, without limitation: (a) any waiver,
indulgence, renewal, extension, amendment or modification of or addition,
consent or supplement to or deletion from or any other action or inaction under
or in respect of the Loan Documents or any other instruments or agreements
relating to the Obligations or any assignment or transfer of any thereof, (b)
any lack of validity or enforceability of any Loan Document or other documents,
instruments or agreements relating to the Obligations or any assignment or
transfer of any thereof or any failure to perfect any security therefor, (c) any
furnishing of any additional security to Agent or Lenders or their assignees or
any acceptance thereof or any release of any security by Agent or Lenders or
their assignees, (d) any limitation on any party’s liability or obligation under
the Loan Documents or any other documents, instruments or agreements relating to
the Obligations or any assignment or transfer of any thereof or any invalidity
or unenforceability, in whole or in part, of any such document, instrument or
agreement or any term thereof, (e) any bankruptcy, insolvency, reorganization,
composition, adjustment, dissolution, liquidation or other like proceeding
relating to any Borrower, or any action taken with respect to this Guarantee by
any trustee, interim receiver, receiver or manager, or by any court, in any such
proceeding, whether or not the undersigned shall have notice or knowledge of any
of the foregoing, (f) any exchange, release or non-perfection of any collateral,
or any release, or amendment or waiver of or consent to departure from any
guarantee or security, for all or any of the Obligations or (g) any other
circumstance which might otherwise constitute a defense available to, or a
discharge of, the undersigned.  Any amounts due from the undersigned
to Agent or Lenders shall bear interest until such amounts are paid in full at
the Default Rate then applicable to the Obligations.  Obligations
include post-petition interest whether or not allowed or allowable.

     

    3. Waivers.

     

    (a) This
Guarantee is a guarantee of payment and not of collection.  Neither
Agent nor Lenders shall be under any obligation to institute suit, exercise
rights or remedies or take any other action against any Borrower or any other
person liable with respect to any of the Obligations or resort to any collateral
security held by it to secure any of the Obligations as a condition precedent to
the undersigned being obligated to perform as agreed herein and Guarantor hereby
waives any and all rights which the undersigned may have by statute or otherwise
which would require Agent or Lenders to do any of the
foregoing.  Guarantor further consents and agrees that Agent and
Lenders shall be under no obligation to marshal any assets in favor of
Guarantor, or against or in payment of any or all of the
Obligations.  The undersigned hereby waives all suretyship defenses
and any rights to interpose any defense, counterclaim or offset of any nature
and description which it may have or which may exist between and among Agent,
Lenders, any Borrower and/or the undersigned with respect to the undersigned’s
obligations under this Guarantee, or which any Borrower may assert on the
underlying debt, including but not limited to failure of consideration, breach
of warranty, fraud, payment (other than cash payment in full of the
Obligations), statute of frauds, bankruptcy, infancy, statute of limitations,
accord and satisfaction, and usury.

     

    (b) The
undersigned further waives (i) notice of the acceptance of this Guarantee, of
the making of any such loans or extensions of credit, and of all notices and
demands of any kind to which the undersigned may be entitled, including, without
limitation, notice of adverse change in any Borrower’s financial condition or of
any other fact which might materially increase the risk of the undersigned and
(ii) presentment to or demand of payment from anyone whomsoever liable upon any
of the Obligations, protest, notices of presentment, non-payment or protest and
notice of any sale of collateral security or any default of any
sort.

     

    (c) Notwithstanding
any payment or payments made by the undersigned hereunder, or any setoff or
application of funds of the undersigned by Agent or any Lender, the undersigned
shall not be entitled to be subrogated to any of the rights of Lenders against
any Borrower or against any collateral or guarantee or right of offset held by
Lenders for the payment of the Obligations, nor shall the undersigned seek or be
entitled to seek any contribution or reimbursement from any Borrower in respect
of payments made by the undersigned hereunder, until all amounts owing to Agent
and Lenders by Borrowers on account of the Obligations are paid in full and the
Loan Agreement has been terminated.  If, notwithstanding the
foregoing, any amount shall be paid to the undersigned on account of such
subrogation rights at any time when all of the Obligations shall not have been
paid in full and the Loan Agreement shall not have been terminated, such amount
shall be held by the undersigned in trust for Agent and Lenders, segregated from
other funds of the undersigned, and shall forthwith upon, and in any event
within two (2) business days of, receipt by the undersigned, be turned over to
Agent in the exact form received by the undersigned (duly endorsed by the
undersigned to Agent, if required), to be applied against the Obligations,
whether matured or unmatured, in such order as Agent and Lenders may determine,
subject to the provisions of the Loan Agreement.  Any and all present
and future debts and obligations of any Borrower to any of the undersigned are
hereby waived and postponed in favor of, and subordinated to the full payment
and performance of, all present and future debts and obligations of Borrowers to
Agent and Lenders.

     

    4. Security.  All
sums at any time to the credit of the undersigned and any property of the
undersigned in Agent’s or any Lender’s possession or in the possession of any
bank, financial institution or other entity that directly or indirectly, through
one or more intermediaries, controls or is controlled by, or is under common
control with, Agent or any Lender (each such entity, an “Affiliate”) shall be
deemed held by Agent, such Lender or such Affiliate, as the case may be, as
security for any and all of the undersigned’s obligations to Agent and Lenders
and to any Affiliate of Agent and Lenders, no matter how or when arising and
whether under this or any other instrument, agreement or otherwise.

     

    5. Representations and
Warranties.  The undersigned hereby represents and warrants
(all of which representations and warranties shall survive until all Obligations
are indefeasibly satisfied in full and the Loan Agreement has been irrevocably
terminated), that:

     

    (a) Corporate
Status.  The undersigned is an unlimited liability company duly
organized, validly existing and in good standing under the laws of the Province
of Nova Scotia and has full power, authority and legal right to own its property
and assets and to transact the business in which it is engaged.

     

    (b) Authority and
Execution.  The undersigned has full power, authority and legal
right to execute and deliver, and to perform its obligations under, this
Guarantee and has taken all necessary corporate and legal action to authorize
the execution, delivery and performance of this Guarantee.

     

    (c) Legal, Valid and Binding
Character.  This Guarantee constitutes the legal, valid and
binding obligation of the undersigned enforceable in accordance with its terms,
except as enforceability may be limited by applicable Insolvency
Law.

     

    (d) Violations.  The
execution, delivery and performance of this Guarantee will not violate any
requirement of law applicable to the undersigned or any material contract,
agreement or instrument to which the undersigned is a party or by which the
undersigned or any property of the undersigned is bound or result in the
creation or imposition of any mortgage, lien or other encumbrance other than to
Agent and Lenders on any of the property or assets of the undersigned pursuant
to the provisions of any of the foregoing.

     

    (e) Consents or
Approvals.  No consent of any other person or entity
(including, without limitation, any creditor of the undersigned) and no consent,
license, permit, approval or authorization of, exemption by, notice or report
to, or registration, filing or declaration with, any governmental authority is
required in connection with the execution, delivery, performance, validity or
enforceability of this Guarantee.

     

    (f) Litigation.  No
litigation, arbitration, investigation or administrative proceeding of or before
any court, arbitrator or governmental authority, bureau or agency is currently
pending or, to the best knowledge of the undersigned, threatened (i) with
respect to this Guarantee or any of the transactions contemplated by this
Guarantee or (ii) against or affecting the undersigned, or any property or
assets of the undersigned, which, if adversely determined, would have Material
Adverse Effect.

     

    (g) Financial Benefit.
The undersigned has derived or expects to derive a financial or other advantage
from each and every loan, advance or extension of credit made under the Loan
Agreement or other Obligation incurred by Borrowers to Agent and
Lenders.

     

    The
foregoing representations and warranties shall be deemed to have been made by
the undersigned on the date of each borrowing by any Borrower under the Loan
Agreement on and as of such date of such borrowing as though made hereunder on
and as of such date.

     

    6. Acceleration.  Upon
the occurrence and continuance of an Event of Default or any breach of any
representation or warranty hereunder, Agent may, at its option, declare the
Obligations due and payable.  The undersigned will promptly notify
Agent of any default by the undersigned in the performance or observance of any
term or condition of any agreement to which the undersigned is a party if the
effect of such default is to cause an Event of Default under the Loan
Agreement.

     

    7. Payments from
Guarantor.  Agent, in its sole and absolute discretion, with or
without notice to the undersigned, may apply on account of the Obligations any
payment from the undersigned or any other guarantor, or amounts realized from
any security for the Obligations, or may deposit any and all such amounts
realized in a non-interest bearing cash collateral deposit account to be
maintained as security for the Obligations.

     

    Each
payment to be made by Guarantor hereunder shall be payable in the currency or
currencies in which such obligations are denominated without set-off or
counterclaim, and free and clear of and without deduction or withholding for or
on account of any present or future income, stamp or other taxes, levies.
imposts, duties, charges, fees, deductions or withholdings. now or hereafter
imposed, levied, collected, withheld or assessed by any governmental authority
excluding net income taxes or branch profit taxes or franchise taxes imposed in
lieu of net income taxes imposed on the Agent and/or any Lender as a result of a
present or former connection between the Agent and/or any Lender and the
jurisdiction of the governmental authority imposing such tax or any political
subdivision or taxing authority thereof or therein (other than any connection
arising solely from the Agent or such Lender having received a payment under, or
having enforced, this Guarantee).

     

    Without
limiting the generality of the foregoing, if any taxes or amounts in respect
thereof must be deducted or withheld from any amounts payable or paid by
Guarantor hereunder, Guarantor shall pay such additional amounts as may be
necessary to ensure that the Agent and Lenders receive a net amount equal to the
full amount which they would have received had payment not been made subject to
such taxes. Within 15 days of each payment by Guarantor hereunder of taxes or in
respect of taxes, Guarantor shall deliver to the Agent satisfactory evidence
(including originals, or certified copies, of all relevant receipts) that such
taxes have been duly remitted to the appropriate authority or
authorities.

     

    Guarantor
agrees to indemnify the Agent and Lenders for the full amount of taxes paid by
the Agent and Lenders in respect of this section and any liabilities (including
penalties, interest and expenses arising from the failure of Guarantor to pay
such taxes when due) arising therefrom or therewith, in each case upon Guarantor
receiving reasonable evidence concerning the amount of such tax and liability
owing. This indemnification shall be paid within 15 days after the Agent or
Lender(s), as applicable, has the made the demand therefor.

     

    8. Costs.  The
undersigned shall pay on demand, all costs, fees and expenses (including
expenses for legal services of every kind) relating or incidental to the
enforcement or protection of the rights of Agent and Lenders
hereunder.  For greater certainty, as an original and independent
obligation under this Guarantee, Guarantor shall: (a) indemnify the Agent and
Lenders and keep the Agents and Lenders indemnified against any cost, loss,
expense or liability of whatever kind resulting from the failure by Borrower to
make due and punctual payment of any of the Obligations or resulting from any of
the Obligations being or becoming void, voidable, unenforceable or ineffective
against Borrower (including, but without limitation, all legal and other costs,
charges and expenses incurred by the Agent or Lenders, or any of them. in
connection with preserving or enforcing, or attempting to preserve or enforce,
its rights under this Guarantee); and (b) pay on demand the amount of such cost,
loss, expense or liability whether or not the Agent or any Lender has attempted
to enforce any rights against any Borrower or any other person or
otherwise.

     

    9. Currency
Indemnity.  If, for the purposes of obtaining judgment in any
court in any jurisdiction with respect to this Guarantee, it becomes necessary
to convert into the currency of such jurisdiction (the “Judgment Currency”) any amount
due under this Guarantee in any currency other than the Judgment Currency (the
“Currency Due”), then
conversion shall be made at the Exchange Rate (as hereinafter defined) at which
Agent is able, on the relevant date, to purchase the Currency Due with the
Judgment Currency prevailing on the Business Day before the day on which
judgment is given.  In the event that there is a change in the rate of
Exchange Rate prevailing between the Business Day before the day on which the
judgment is given and the date of receipt by Agent of the amount due, Guarantor
will, on the date of receipt by Agent, pay such additional amounts, if any, or
be entitled to receive reimbursement of such amount, if any, as may be necessary
to ensure that the amount received by Agent on such date is the amount in the
Judgment Currency which when converted at the rate of exchange prevailing on the
date of receipt by Agent is the amount then due under this Guarantee in the
Currency Due.  If the amount of the Currency Due which Agent is able
to purchase is less than the amount of the Currency Due originally due to it,
Guarantor shall indemnify and save Agent harmless from and against loss or
damage arising as a result of such deficiency.  The indemnity
contained herein shall constitute an obligation separate and independent from
the other obligations contained in this Guarantee, shall give rise to a separate
and independent cause of action, shall apply irrespective of any indulgence
granted by Agent from time to time and shall continue in full force and effect
notwithstanding any judgment or order for a liquidated sum in respect of an
amount due under this Guarantee or under any judgment or order.  As
used herein, (i) “Business
Day” shall mean any day other than Saturday or Sunday or a legal holiday
on which commercial banks are authorized or required by law to be closed for
business in Toronto, Ontario and East Brunswick, New Jersey, and (ii) “Exchange Rate” shall mean the
prevailing spot rate of exchange of such bank as Secured Party may reasonably
select for the purpose of conversion of one currency to another, at or around
11:00 a.m. Toronto time, on the date on which any such conversion of currency is
to be made under this Agreement.

     

    10. Termination.  This
is a continuing irrevocable Guarantee and shall remain in full force and effect
and be binding upon the undersigned, and the undersigned’s successors and
assigns, until all of the Obligations have been paid in full and the Loan
Agreement has been irrevocably terminated.  If any of the present or
future Obligations are guaranteed by persons, partnerships or corporations in
addition to the undersigned, the death, release or discharge in whole or in part
or the bankruptcy, merger, consolidation, incorporation, liquidation or
dissolution of one or more of them shall not discharge or affect the liabilities
of the undersigned under this Guarantee.

     

    11. Recapture.  Anything
in this Guarantee to the contrary notwithstanding, if Agent or any Lender
receives any payment or payments on account of the liabilities guaranteed
hereby, which payment or payments or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside and/or
required to be repaid to a trustee, receiver, or any other party under any
Insolvency Law, common law or equitable doctrine, then to the extent of any sum
not finally retained by Agent and Lenders, the undersigned’s obligations to
Agent and Lenders shall be reinstated and this Guarantee shall remain in full
force and effect (or be reinstated) until payment shall have been made to Agent
and Lenders, which payment shall be due on demand.

     

    12. Books and
Records.  The books and records of Agent and Lenders showing
the account among Agent, Lenders and Borrowers shall be admissible in evidence
in any action or proceeding, shall be binding upon the undersigned for the
purpose of establishing the items therein set forth and shall constitute prima
facie proof thereof.

     

    13. No
Waiver.  No failure on the part of Agent or Lenders to
exercise, and no delay in exercising, any right, remedy or power hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise by Agent
of any right, remedy or power hereunder preclude any other or future exercise of
any other legal right, remedy or power.  Each and every right, remedy
and power hereby granted to Agent or Lenders or allowed it by law or other
agreement shall be cumulative and not exclusive of any other, and may be
exercised by Agent or Lenders at any time and from time to time.

     

    14. Waiver of Jury
Trial.  THE UNDERSIGNED HEREBY EXPRESSLY WAIVES ANY RIGHT TO
TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (A) ARISING UNDER
THIS GUARANTEE OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR
DELIVERED IN CONNECTION HEREWITH, OR (B) IN ANY WAY CONNECTED WITH OR RELATED OR
INCIDENTAL TO THE DEALINGS OF THE UNDERSIGNED WITH RESPECT TO THIS GUARANTEE OR
ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION
HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO IN EACH CASE WHETHER NOW
EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR
OTHERWISE AND THE UNDERSIGNED HEREBY CONSENTS THAT ANY SUCH CLAIM, DEMAND,
ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND
THAT AGENT AND/OR ANY LENDER MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS
SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENTS OF THE UNDERSIGNED TO
THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.

     

    Governing Law; Jurisdiction;
Amendments.  THIS INSTRUMENT CANNOT BE CHANGED OR TERMINATED
ORALLY, AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE PROVINCE OF ONTARIO.  ANY JUDICIAL PROCEEDING BROUGHT BY OR
AGAINST THE UNDERSIGNED WITH RESPECT TO ANY OF THE OBLIGATIONS, THIS GUARANTEE,
THE OTHER DOCUMENTS OR ANY RELATED AGREEMENT MAY BE BROUGHT IN ANY COURT OF
COMPETENT JURISDICTION IN THE STATE OF NEW YORK, UNITED STATES OF AMERICA, AND,
BY EXECUTION AND DELIVERY OF THIS GUARANTEE, THE UNDERSIGNED ACCEPTS FOR ITSELF
AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE
NON-EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS, AND IRREVOCABLY AGREES TO BE
BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS AGREEMENT. THE
UNDERSIGNED HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT AND
CONSENTS THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY REGISTERED MAIL (RETURN
RECEIPT REQUESTED) DIRECTED TO THE UNDERSIGNED AT ITS ADDRESS SET FORTH BENEATH
THE SIGNATURE OF THE UNDERSIGNED AND SERVICE SO MADE SHALL BE DEEMED COMPLETED
FIVE (5) DAYS AFTER THE SAME SHALL HAVE BEEN SO DEPOSITED  IN THE
MAILS OF THE UNITED STATES OF AMERICA OR WITH A RECOGNIZED NATIONAL OR
INTERNATIONAL COURIER SERVICE, OR, AT THE AGENT’S OPTION, BY SERVICE UPON THE
UNDERSIGNED.  NOTHING HEREIN SHALL AFFECT THE RIGHT TO SERVE PROCESS
IN ANY MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT OF AGENT OR ANY LENDER
TO BRING PROCEEDINGS AGAINST THE UNDERSIGNED IN THE COURTS OF ANY OTHER
JURISDICTION.  THE UNDERSIGNED WAIVES ANY OBJECTION TO JURISDICTION
AND VENUE OF ANY ACTION INSTITUTED HEREUNDER AND SHALL NOT ASSERT ANY DEFENSE
BASED ON LACK OF JURISDICTION OR VENUE OR BASED UPON FORUM NON
CONVENIENS.  THE UNDERSIGNED WAIVES THE RIGHT TO REMOVE ANY JUDICIAL
PROCEEDING BROUGHT AGAINST IT IN ANY STATE COURT TO ANY FEDERAL COURT. ANY
JUDICIAL PROCEEDING BY THE UNDERSIGNED AGAINST AGENT OR ANY LENDER INVOLVING,
DIRECTLY OR INDIRECTLY, ANY MATTER OR CLAIM IN ANY WAY ARISING OUT OF, RELATED
TO OR CONNECTED WITH THIS GUARANTEE OR ANY RELATED AGREEMENT, SHALL BE BROUGHT
ONLY IN A FEDERAL OR STATE COURT LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW
YORK.

     

    15. Severability.  To
the extent permitted by applicable law, any provision of this Guarantee which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     

    16. Amendments,
Waivers.  No amendment or waiver of any provision of this
Guarantee nor consent to any departure by the undersigned therefrom shall in any
event be effective unless the same shall be in writing executed by the
undersigned and Agent.

     

    17. Notice.  All
notices, requests and demands to or upon the undersigned, shall be in writing
and shall be deemed to have been duly given or made (a) when delivered, if by
hand, (b) four (4) days after being deposited with the United States Postal
Service, with first class postage prepaid, return receipt requested, or a
recognized national or international courier service, (c) when confirmed
electronically, if by facsimile, or (d) when delivered, if by a recognized
overnight delivery service in each event, to the numbers and/or address set
forth beneath the signature of the undersigned.

     

    18. Successors.  Subject
to Section 16.3 of the Loan Agreement, Agent and Lenders may, from time to time,
without notice to the undersigned, sell, assign, transfer or otherwise dispose
of all or any part of the Obligations.  Without limiting the
generality of the foregoing, Agent and Lenders may assign, or grant
participations to, one or more banks, financial institutions or other entities
all or any part of any of the Obligations in accordance with Section 16.3 of the
Loan Agreement.  Agent may, from time to time, without notice to the
undersigned, sell, transfer or otherwise dispose of its rights under this
Guarantee.  In each such event, Agent, its Affiliates and each and
every immediate and successive purchaser, assignee, transferee or holder of all
or any part of the Obligations shall have the right to enforce this Guarantee,
by legal action or otherwise, for its own benefit as fully as if such purchaser,
assignee, transferee or holder were herein by name specifically given such
right.

     

    19. Release.  Nothing
except cash payment in full of the Obligations shall release the undersigned
from liability under this Guarantee.

     

    [Remainder
of Page Intentionally Left Blank]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, this
Guarantee has been executed by the undersigned this 19th day of March,
2010.

     

    
      	 
      	 
      	
              PRESSTEK
      CANADA CORP. / CORPORATION PRESSTEK CANADA

            
	
              Per:

            	
               /S/
      Jeffrey Cook

            
	 
      	
              Name:           
      Jeffrey Cook

            
	 
      	
              Title:           
      Director

            
	 
      	 
      	 
      	 
      
	 
      	 
      	
              Address:

              c/o
      Presstek, Inc.

              10
      Glenview Street

              Greenwich,
      CT 06831

              Attention:                      James
      R. Van Horn

              Telephone:                      203-769-8032

              Facsimile:                      203-769-8099

               

            

    

    

     

    

     

     

    \5821210

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