Document:

Dated

     

    March
      28,
      2007

     

    DEBENTURE

    

    

    

    between

    

     

     

    Advance
      Homeland Security PLC

     

    and

    

     

    Conquistador
      Investments Limited

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    THIS
      AGREEMENT
      is dated
      March 28, 2007

     

    Parties

     

    
      	
              (1)

            	
              ADVANCE
                HOMELAND SECURITY PLC, a Public Limited Company registered in England
                with
                company number 5916772 whose registered office is at Savannah House,
                5th
                Floor, 11 Charles II Street, London SW1Y 4QU (Borrower).

            

    

     

     

    
      	
              (2)

            	
              CONQUISTADOR
                INVESTMENTS LIMITED, a company incorporated in Gibraltar with a place
                of
                business at Suite F8, International Commercial Centre, Main Road,
                Gibraltar (Lender).

            

    

     

    Background

     

    
      	
              (A)

            	
              The
                Lender has agreed pursuant to the Facility Agreement to provide the
                Borrower with loan facilities on a secured
                basis.

            

    

     

     

    
      	
              (B)

            	
              This
                debenture provides the security which the Borrower has agreed to
                give the
                Lender for the loan facilities.

            

    

     

    Agreed
      terms

     

    
      	
              1.

            	
              Definitions
                and interpretation

            

    

     

    
      	
              1.1

            	
              Definitions

            

    

     

    In
      this
      agreement the definitions and rules of interpretation in this clause
      apply.

     

    Administrator:
      an
      administrator appointed to manage the affairs, business and property of the
      Borrower pursuant to paragraph 15
      of
Schedule
      4.

     

    Business
      Day:
      a day
      (other than a Saturday or Sunday) on which banks are open for general business
      both in London and New York.

     

    Charged
      Property:
      all the
      assets, property and undertaking legally and beneficially owned in their
      entirety for the time being subject to the security interests created by this
      debenture (and references to the Charged Property include references to any
      part
      of it).

     

    Costs:
      all
      costs, charges, expenses and liabilities of any kind including, without
      limitation, costs and damages in connection with litigation, professional fees,
      disbursements and any value added tax charged on Costs.

     

    Encumbrance:
      any
      mortgage, charge (whether fixed or floating, legal or equitable), pledge, lien,
      assignment by way of security, or other security interest securing any
      obligation of any person or any other agreement or arrangement having a similar
      effect.

     

    Equipment:
      all
      present and future equipment, plant, machinery, tools, vehicles, furniture,
      fittings, installations and apparatus and other tangible moveable property
      for
      the time being owned by the Borrower, including any part of it and all spare
      parts, replacements, modifications and additions.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    Facility
      Agreement:
      the term
      facility agreement dated [DATE] between the Borrower and the Lender for the
      provision of loan facilities secured by this debenture.

     

    Properties:
      all
      freehold and leasehold properties (whether registered or unregistered) and
      all
      commonhold properties, now or in the future (and from time to time) legally
      and
      beneficially owned in their entirety by the Borrower and Property
      means
      any of them.

     

    Receiver:
      a
      receiver and/or manager of any or all of the Charged Property appointed pursuant
      to paragraph 6
      of
Schedule
      4.

     

    Secured
      Liabilities:
      all
      present and future monies, obligations and liabilities owed by the Borrower
      to
      the Lender, whether actual or contingent and whether owed jointly or severally,
      as principal or surety and/or in any other capacity whatsoever, under or in
      connection with the Facility Agreement and for the avoidance of doubt such
      monies, obligations and liabilities include all interest accruing on them and
      those arising under to clause 12.3.

     

    Security
      Period:
      the
      period starting on the date of this debenture and ending on the date on which
      all the Secured Liabilities have been unconditionally and irrevocably paid
      and
      discharged in full.

     

    
      	
              1.2

            	
              Interpretation

            

    

     

    In
      this
      debenture:

     

    
      	 	
              (a)

            	
              any
                reference to any statute or statutory provision includes a reference
                to
                any subordinate legislation made under that statute or statutory
                provision, to any modification, re-enactment or extension of that
                statute
                or statutory provision and to any former statute or statutory provision
                which it consolidated or re-enacted before the date of this
                debenture;

            

    

     

    
      	 	
              (b)

            	
              a
                reference to one gender includes a reference to the other
                gender;

            

    

     

    
      	 	
              (c)

            	
              words
                in the singular include the plural and in the plural include the
                singular;

            

    

     

    
      	 	
              (d)

            	
              a
                reference to a clause or schedule is to a clause or schedule of or
                to this
                debenture unless the context requires
                otherwise;

            

    

     

    
      	 	
              (e)

            	
              a
                reference to this
                debenture
                (or any specified provision of it) or any other document shall be
                construed as a reference to this debenture, that provision or that
                document as in force for the time being and as amended, varied or
                supplemented from time to time in accordance with its terms, or,
                as the
                case may be, with the agreement of the relevant parties and (where
                such
                consent is, by the terms of this debenture or the relevant document,
                required to be obtained as a condition to such amendment being permitted)
                the prior written consent of the
                Lender;

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (f)

            	
              a
                reference to a person
                shall be construed as including a reference to an individual, firm,
                corporation, unincorporated body of persons or any state or any agency
                of
                a person;

            

    

     

    
      	 	
              (g)

            	
              a
                reference to an amendment
                includes a supplement, variation, novation or re-enactment (and
                amended
                shall be construed accordingly);

            

    

     

    
      	 	
              (h)

            	
              a
                reference to assets
                includes present and future properties, undertakings, revenues, rights
                and
                benefits of every description;

            

    

     

    
      	 	
              (i)

            	
              a
                reference to an authorisation
                includes an authorisation, consent, licence, approval, resolution,
                exemption, filing, registration and
                notarisation;

            

    

     

    
      	 	
              (j)

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

            

    

     

    
      	 	
              (k)

            	
              the
                headings do not form part of this debenture or any part of it and
                do not
                affect its interpretation.

            

    

     

    
      	
              1.3

            	
              Clawback

            

    

     

    If
      the
      Lender considers that an amount is capable of being avoided or otherwise set
      aside on liquidation or administration of the Borrower or otherwise, then that
      amount shall not be considered to have been irrevocably paid for the purposes
      of
      this debenture.

     

    
      	
              1.4

            	
              Nature
                of security over real
                property

            

    

     

    A
      reference in this debenture to a charge or mortgage of any freehold, leasehold
      or commonhold property includes:

     

    
      	 	
              (a)

            	
              all
                buildings and fixtures (including trade and tenant's fixtures) which
                are
                at any time situated on that
                property;

            

    

     

    
      	 	
              (b)

            	
              the
                proceeds of sale of any part of that property;
                and

            

    

     

    
      	 	
              (c)

            	
              the
                benefit of any covenants for title given or entered into by any
                predecessor in title of the Borrower in respect of that property
                or any
                monies paid or payable in respect of those
                covenants.

            

    

     

    
      	
              1.5

            	
              Law
                of Property (Miscellaneous Provisions) Act
                1989

            

    

     

    For
      the
      purposes of section 2 of the Law of Property (Miscellaneous Provisions) Act
      1989
      the terms of the Facility Agreement and of any side letters between any parties
      in relation to the Facility Agreement are incorporated in this
      debenture.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              1.6

            	
              Land
                Registration Rules 1925

            

    

     

    For
      the
      purposes only of Rule 139 of the Land Registration Rules 1925 (as amended)
      the
      Facility Agreement does not form part of the terms and conditions of this
      debenture.

     

    
      	
              1.7

            	
              Insolvency
                Act 1986

            

    

     

    Paragraph
      14 of Schedule B1 to the Insolvency Act 1986 (as inserted by section 248 of,
      and
      Schedule 16 to, the Enterprise Act 2002) applies to the floating charge created
      by this debenture.

     

    
      	
              2.

            	
              Covenant
                to pay

            

    

     

    The
      Borrower shall on demand pay to the Lender and discharge the Secured Liabilities
      when they become due.

     

    
      	
              3.

            	
              Grant
                of security

            

    

     

    
      	
              3.1

            	
              Charging
                clause

            

    

     

    As
      a
      continuing security for the payment and discharge of the Secured Liabilities,
      the Borrower with full title guarantee:

     

    
      	 	
              (a)

            	
              charges
                to the Lender, by way of first fixed
                charge:

            

    

     

    (i)   
      all
      Properties acquired by the Borrower in the future;

     

    (ii)  
      all
      present and future interests of the Borrower not effectively mortgaged or
      charged under the preceding provisions of this clause 3
      in or
      over freehold or leasehold property;

     

    (iii)  all
      present and future rights, licences, guarantees, rents, deposits, contracts,
      covenants and warranties relating to the Properties;

     

    (iv)  all
      licences, consents and authorisations, statutory or otherwise held or required
      in connection with the Borrower's business or the use of any Charged Property
      and all rights in connection with them;

     

    (v)  
      all
      present and future goodwill and uncalled capital for the time being of the
      Borrower; and

     

    (vi)  
      all
      Equipment; and

     

    
      	 	
              (b)

            	
              charges
                to the Lender, by way of first floating charge, all the undertaking,
                property, assets and rights of the Borrower at any time not effectively
                mortgaged, charged or assigned pursuant to clause 3.1(a).

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
              3.2

            	
              Automatic
                conversion of floating
                charge

            

    

     

     

    The
      floating charge created by clause 3.1(b)
      shall
      automatically and immediately (without notice) be converted into a fixed charge
      over the relevant Charged Property if:

     

    
      	 	
              (a)

            	
              the
                Borrower:

            

    

     

    (i)   
      creates
      or attempts to create an Encumbrance without the prior written consent of the
      Lender or any trust in favour of another person over all or any part of the
      Charged Property; or

     

    (ii) 
      disposes
      or attempts to dispose of all or any part of the Charged Property other than
      property subject only to the floating charge while it remains uncrystallised
      in
      the ordinary course of business; or

     

    
      	 	
              (b)

            	
              a
                receiver is appointed over all or any of the Charged Property that
                is
                subject to the floating charge; or

            

    

     

    
      	 	
              (c)

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

            

    

     

    
      	 	
              (d)

            	
              the
                Lender receives notice of the appointment of, or a proposal or an
                intention to appoint, an administrator of the
                Borrower.

            

    

     

    
      	
              4.

            	
              Liability
                of Borrower

            

    

     

    
      	
              4.1

            	
              Liability
                not discharged

            

    

     

    The
      liability of the Borrower under this debenture in respect of any of the Secured
      Liabilities shall not be discharged, prejudiced or affected by:

     

    
      	 	
              (a)

            	
              any
                security, guarantee, indemnity, remedy or other right held by or
                available
                to the Lender being or becoming wholly or partially illegal, void
                or
                unenforceable on any ground; or

            

    

     

    
      	 	
              (b)

            	
              the
                Lender renewing, determining, varying or increasing any facility
                or other
                transaction in any manner or concurring in, accepting or varying
                any
                compromise, arrangement or settlement or omitting to claim or enforce
                payment from any other person; or

            

    

     

    
      	 	
              (c)

            	
              any
                other act or omission which but for this provision might have discharged
                or otherwise prejudiced or affected the liability of the
                Borrower.

            

    

     

     

    
      	
              5.

            	
              Representations
                and Warranties

            

    

     

    The
      Borrower represents and warrants to the Lender in the terms set out in
Schedule
      1.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
              6.

            	
              Covenants

            

    

     

    The
      Borrower covenants with the Lender during the continuance of the security
      constituted by this debenture in the terms set out in Schedule
      2.

     

    
      	
              7.

            	
              Powers
                of the Lender

            

    

     

    The
      Lender shall have the powers set out in Schedule
      3.

     

    
      	
              8.

            	
              Enforcement

            

    

     

    The
      security constituted by this debenture shall be immediately enforceable in
      any
      of the circumstances set out in Schedule
      4.

     

    A
      Receiver shall have, in addition to the powers conferred on receivers by
      statute, the further powers set out in Schedule
      5.

     

    
      	
              9.

            	
              Costs
                and indemnity

            

    

     

    The
      Borrower shall pay to or reimburse the Lender and any Receiver on demand, on
      a
      reasonable and proportionate basis, all Costs incurred by the Lender and any
      Receiver in relation to:

     

    
      	 	
              (a)

            	
              this
                debenture or the Charged Property;
                or

            

    

     

    
      	 	
              (b)

            	
              protecting,
                perfecting, preserving or enforcing (or attempting to do so) any
                of the
                Lender's rights under this debenture;
                or

            

    

     

    
      	 	
              (c)

            	
              suing
                for or recovering any of the Secured
                Liabilities,

            

    

     

    (including,
      without limitation, the Costs of any proceedings in relation to this debenture
      or the Secured Liabilities) together with, in the case of clause 9(b)
      and
      clause 9(c),
      interest on the amount due at the rate for default interest under clause 7.1
      of
      the Facility Agreement.

     

    The
      Lender and any Receiver and their respective employees and agents shall be
      indemnified out of the Charged Property in respect of all actions, liabilities
      and Costs incurred or suffered in or as a result of:

     

    
      	 	
              (d)

            	
              the
                exercise or purported exercise of any of the powers, authorities
                or
                discretions vested in them under this debenture;
                and

            

    

     

    
      	 	
              (e)

            	
              any
                matter or thing done or omitted to be done in relation to the Charged
                Property under those powers.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              10.

            	
              Release

            

    

     

    Subject
      to clause 12.3,
      upon
      the expiry of the Security Period (but not otherwise) the Lender shall, at
      the
      request and cost of the Borrower, take whatever action is necessary to release
      the Charged Property from the security constituted by this
      debenture.

     

    
      	
              11.

            	
              Assignment
                and transfer

            

    

     

    
      	
              11.1

            	
              Assignment
                by Lender

            

    

     

    The
      Lender may at any time, with the consent of the Borrower, assign or transfer
      the
      whole or any part of the Lender's rights under this debenture to any
      person.

     

    
      	
              11.2

            	
              Assignment
                by Borrower

            

    

     

    The
      Borrower may not assign any of its rights or transfer any of its obligations
      under this debenture or enter into any transaction, which would result in any
      of
      these rights or obligations passing to another person, without the consent
      of
      the Lender, such consent not to be unreasonably withheld.

     

    
      	
              12.

            	
              Further
                provisions

            

    

     

    
      	
              12.1

            	
              Independent
                security

            

    

     

    This
      debenture shall be in addition to and independent of every other security or
      guarantee which the Lender may at any time hold for any of the Secured
      Liabilities and no prior security held by the Lender over the whole or any
      part
      of the Charged Property shall merge in the security created by this
      debenture.

     

    
      	
              12.2

            	
              Continuing
                security

            

    

     

    This
      debenture shall remain in full force and effect as a continuing security for
      the
      Secured Liabilities, notwithstanding any settlement of account or intermediate
      payment or other matter or thing whatsoever, unless and until the Lender
      discharges this debenture in writing.

     

    
      	
              12.3

            	
              Discharge
                conditional

            

    

     

    Any
      release, discharge or settlement between the Borrower and the Lender shall
      be
      deemed conditional upon no payment or security received by the Lender in respect
      of the Secured Liabilities being avoided or reduced or ordered to be refunded
      pursuant to any provision of any enactment relating to insolvency, bankruptcy,
      winding-up, administration or receivership and, notwithstanding any such
      release, discharge or settlement:

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (a)

            	
              the
                Lender or its nominee shall be at liberty to retain this debenture
                and the
                security created by or pursuant to this debenture, including all
                certificates and documents relating to the whole or any part of the
                Charged Property, for such period as the Lender shall deem necessary
                to
                provide the Lender with security against any such avoidance or reduction
                or order for refund; and

            

    

     

    
      	 	
              (b)

            	
              the
                Lender shall be entitled to recover the value or amount of such security
                or payment from the Borrower subsequently as if such settlement,
                discharge
                or release had not occurred and the Borrower agrees with the Lender
                accordingly and charges the Charged Property and the proceeds of
                any sale
                of it with any liability under this
                paragraph.

            

    

     

    
      	
              12.4

            	
              Certificates

            

    

     

    A
      certificate or determination by the Lender as to any amount for the time being
      due to it from the Borrower shall (in the absence of any manifest error) be
      conclusive evidence of the amount due.

     

    
      	
              12.5

            	
              Rights
                cumulative

            

    

     

    The
      rights and powers of the Lender conferred by this debenture are cumulative,
      may
      be exercised as often as the Lender considers appropriate, and are in addition
      to its rights and powers under the general law.

     

    
      	
              12.6

            	
              Waivers

            

    

     

    Any
      waiver or variation of any right by the Lender (whether arising under this
      debenture or under the general law) is only effective if it is in writing and
      signed by the Lender and applies only in the circumstances for which it was
      given and shall not prevent the Lender from subsequently relying on the relevant
      provision.

     

    
      	
              12.7

            	
              Further
                exercise of rights

            

    

     

    No
      act or
      course of conduct or negotiation by or on behalf of the Lender shall in any
      way
      preclude the Lender from exercising any right or power under this debenture
      or
      constitute a suspension or variation of any such right or power.

     

    
      	
              12.8

            	
              Delay

            

    

     

    No
      delay
      or failure to exercise any right or power under this debenture shall operate
      as
      a waiver.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	
              12.9

            	
              Single
                or partial exercise

            

    

     

    No
      single
      or partial exercise of any right under this debenture shall prevent any other
      or
      further exercise of that or any other such right.

     

    
      	
              12.10

            	
              Consolidation

            

    

     

    The
      restriction on the right of consolidating mortgages contained in section 93
      of
      the Law of Property Act 1925 shall not apply to this debenture.

     

    
      	
              12.11

            	
              Partial
                invalidity

            

    

     

    The
      invalidity, unenforceability or illegality of any provision (or part of a
      provision) of this debenture under the laws of any jurisdiction shall not affect
      the validity, enforceability or legality of the other provisions.

     

    
      	
              12.12

            	
              Counterparts

            

    

     

    This
      debenture may be executed and delivered in any number of counterparts, each
      of
      which is an original and which together have the same effect as if each party
      had signed the same document.

     

    
      	
              12.13

            	
              Third
                party rights

            

    

     

    A
      third
      party (being any person other than the Borrower and the Lender [and its
      permitted successors and assigns]) has no right under the Contracts (Rights
      of
      Third Parties) Act 1999 to enforce, or to enjoy the benefit of, any term of
      this
      debenture.

     

    
      	
              12.14

            	
              Perpetuity
                period

            

    

     

    The
      perpetuity period applicable to all trusts declared by this debenture shall
      be
      80 years.

     

    
      	
              13.

            	
              Notices

            

    

     

    Any
      notice or other communication given under this debenture shall be in writing
      and
      shall be served by delivering it personally or by sending it by pre-paid
      first-class post or by fax to the address and for the attention of the relevant
      party as set out in Schedule
      6
      or such
      other address or fax number as may be notified in writing from time to time
      by
      the relevant party to the other party.

     

    Receipt
      of any notice, given under this clause 13
      , shall
      be deemed to be:

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (a)

            	
              if
                delivered personally, at the time of delivery;
                or

            

    

     

    
      	 	
              (b)

            	
              in
                the case of pre-paid first-class letter, 48 hours from the date of
                posting; or

            

    

     

    
      	 	
              (c)

            	
              in
                the case fax, at the time of
                transmission,

            

    

     

    but
      if
      deemed receipt occurs:

     

    (i)   
      before
      9:00 am on a Business Day, the notice shall be deemed to have been received
      at
      9:00 am on that day; or

     

    (ii)  
      after
      5:00 pm on a Business Day or on a day that is not a Business Day, the notice
      shall be deemed to have been received at 9:00 am on the next Business
      Day.

     

    In
      proving service of a notice, it shall be sufficient to prove that
      either:

     

    
      	 	
              (d)

            	
              the
                envelope containing such notice was addressed to the address of the
                relevant party as set out in Schedule
                6
                (or to the address as notified by that party to the other in writing
                ) and
                delivered either:

            

    

     

    (i) to
      that
      address, or

     

    
      	 	
              (e)

            	
              that
                the notice was transmitted by facsimile to the fax number of the
                relevant
                party set out in Schedule
                6
                ((or to the fax number as notified by that party to the other in
                writing
                )).

            

    

     

    Notice
      given under this debenture shall not be validly served if sent by
      e-mail.

     

    
      	
              14.

            	
              Governing
                law

            

    

     

    This
      debenture shall be governed by and construed according to the law of England
      and
      Wales.

     

    
      	
              15.

            	
              Jurisdiction

            

    

     

    Each
      party irrevocably agrees to submit to the exclusive jurisdiction of the courts
      of England and Wales over any claim or matter arising out of or in connection
      with this debenture.

     

    The
      Borrower irrevocably and unconditionally:

     

    
      	 	
              (a)

            	
              appoints
                ADVANCE
                NANOTECH LIMITED
                of
                Savannah House, 5th
                Floor, 11 Charles II Street, London SW1Y 4QU as its agent to receive
                on
                its behalf in England or Wales service of any proceedings arising
                out of
                or in connection with this
                debenture;

            

    

     

    
      	 	
              (b)

            	
              agrees
                that the failure of such agent to forward any process served on it
                to the
                Borrower shall not impair the validity of such service or any judgment
                based on such service; and

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (c)

            	
              consents
                to the service of process in any proceedings being served on it in
                accordance with the provisions of this debenture relating to the
                service
                of notices.

            

    

     

    If
      for
      any reason such agent ceases to be able to act as agent or no longer has an
      address in England or Wales, the Borrower shall forthwith appoint a substitute
      agent acceptable to the Lender and deliver to the Lender the new agent's name,
      address and fax number.

     

    Nothing
      contained in this debenture shall affect the right to serve process in any
      other
      manner permitted by law.

    

    This
      agreement has been entered into on the date stated at the beginning of
      it.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    Schedule
      1 Representations
      and Warranties

     

     

    
      	
              1.

            	
              Ownership
                of Charged Property

            

    

     

    The
      Borrower is the only legal and beneficial owner of the Charged Property free
      from any Encumbrance other than the Encumbrances created by this
      debenture.

     

     

    
      	
              2.

            	
              Adverse
                claims

            

    

     

    The
      Borrower has not received or acknowledged notice of any adverse claim by any
      person in respect of the Charged Property or any interest in it.

     

     

    
      	
              3.

            	
              Adverse
                covenants

            

    

     

    There
      are
      no covenants, agreements, reservations, conditions, interests, rights or other
      matters whatever, which materially adversely affect the Charged
      Property.

     

     

    
      	
              4.

            	
              No
                breach of laws

            

    

     

    There
      is
      no breach of any law or regulation, which materially adversely affects the
      Charged Property.

     

     

    
      	
              5.

            	
              No
                interference in enjoyment

            

    

     

    No
      facility necessary for the enjoyment and use of the Charged Property is subject
      to terms entitling any person to terminate or curtail its use.

     

     

    
      	
              6.

            	
              No
                overriding interests

            

    

     

    Nothing
      has arisen or has been created or is subsisting, which would be an overriding
      interest in any Property.

     

     

    
      	
              7.

            	
              Avoidance
                of security

            

    

     

    No
      Encumbrance expressed to be created pursuant to this debenture is liable to
      be
      avoided or otherwise set aside on the liquidation or administration of the
      Borrower or otherwise.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    Schedule
      2 Covenants

     

     

    
      	
              1.

            	
              Trading
                and preservation of Charged
                Property

            

    

     

    The
      Borrower shall:

     

    
      	 	
              (a)

            	
              carry
                on its trade and business in accordance with the standards of good
                management from time to time current in such trade or business on
                those
                parts (if any) of the Properties as are, or may be, used for the
                purposes
                of trade or business; and

            

    

     

    
      	 	
              (b)

            	
              not
                do, or permit to be done, any act or thing, which will or might
                depreciate, jeopardise or otherwise prejudice the security held by
                the
                Lender or materially diminish the value of any of the Charged Property
                or
                the effectiveness of the security created by this
                debenture.

            

    

     

     

    
      	
              2.

            	
              Statutory
                compliance

            

    

     

    The
      Borrower shall comply with any statute and all byelaws and regulations relating
      to its trade or business or the whole or any part of the Charged
      Property.

     

     

    
      	
              3.

            	
              Provision
                of information

            

    

     

    The
      Borrower shall:

     

    
      	 	
              (a)

            	
              promptly
                provide to the Lender whatever information, documents or papers relating
                to the Charged Property as the Lender may from time to time request;
                and

            

    

     

    
      	 	
              (b)

            	
              inform
                the Lender promptly of any acquisition by the Borrower of, or contract
                made by the Borrower to acquire, any freehold, leasehold or other
                interest
                in Property.

            

    

     

     

    
      	
              4.

            	
              Insurance

            

    

     

    
      	
              4.1

            	
              The
                Borrower shall:

            

    

     

    
      	 	
              (a)

            	
              insure
                and keep insured all of its undertaking and assets with reputable
                and
                responsible insurers previously approved by the Lender in such manner
                and
                to such extent as is reasonable and customary for an enterprise engaged
                in
                the same or similar business and in the same or similar localities
                against
                such risks and contingencies as the Lender shall from time to time
                request;

            

    

     

    
      	 	
              (b)

            	
              procure
                that the interest of the Lender is noted on all its policies of insurance
                in such manner as the Lender may in its absolute discretion require;
                and

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (c)

            	
              duly
                and punctually pay all premiums and any other monies necessary for
                maintaining its insurance in full force and
                effect.

            

    

     

     

    
      	
              4.2

            	
              The
                Borrower shall apply all monies received by virtue of any insurance
                of the
                whole or any part of the Charged Property:

            

    

     

    
      	 	
              (a)

            	
              in
                making good or in recouping expenditure incurred in making good any
                loss
                or damage: or

            

    

     

    
      	 	
              (b)

            	
              if
                the Lender in its discretion so requires, towards the discharge of
                the
                Secured Liabilities.

            

    

     

     

    
      	
              5.

            	
              Repair

            

    

     

    The
      Borrower shall:

     

    
      	 	
              (a)

            	
              at
                all times keep in good and substantial repair and condition all the
                Charged Property including, without limitation, all buildings, erections,
                structures and fixtures and fittings on and in the
                Property;

            

    

     

    
      	 	
              (b)

            	
              keep
                all Equipment in good repair, working order and condition and fit
                for its
                purpose; and

            

    

     

    
      	 	
              (c)

            	
              where
                it is uneconomic to repair any part of the Charged Property, replace
                such
                part by another similar asset of equal or greater quality and
                value.

            

    

     

     

    
      	
              6.

            	
              Notice
                of breach

            

    

     

    The
      Borrower shall promptly upon becoming aware of all the same give the Lender
      notice in writing of any breach of:

     

    
      	 	
              (a)

            	
              any
                representation or warranty set out in Schedule
                1,
                and

            

    

     

    
      	 	
              (b)

            	
              any
                covenant set out in this Schedule
                2.

            

    

     

     

    
      	
              7.

            	
              Inspection

            

    

     

    The
      Borrower shall permit the Lender and any Receiver and any person appointed
      by
      either of them to enter upon and inspect any Property during normal business
      hours upon reasonable prior notice.

     

     

    
      	
              8.

            	
              Borrower's
                waiver of set-off

            

    

     

    The
      Borrower waives any present or future right of set-off it may have in respect
      of
      the Secured Liabilities (including sums payable by the Borrower under this
      debenture).

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    Schedule
      3 Powers
      of Lender

     

     

    
      	
              1.

            	
              Power
                to remedy

            

    

     

    The
      Lender shall be entitled (but shall not be bound) to remedy a breach at any
      time
      by the Borrower of any of its obligations contained in this debenture and the
      Borrower irrevocably authorises the Lender and its agents to do all such things
      as are necessary or desirable for that purpose.

     

     

    
      	
              2.

            	
              Exercise
                of rights

            

    

     

    The
      rights of the Lender under paragraph 1
      of this
Schedule
      3
      are
      without prejudice to any other rights of the Lender under this debenture and
      the
      exercise of those rights shall not make the Lender liable to account as a
      mortgagee in possession.

     

     

    
      	
              3.

            	
              Power
                to dispose of chattels

            

    

     

    At
      any
      time after the security constituted by this debenture shall have become
      enforceable, the Lender or any Receiver:

     

    
      	 	
              (a)

            	
              may
                dispose of any chattels or produce found on any Property as agent
                for the
                Borrower; and

            

    

     

    
      	 	
              (b)

            	
              without
                prejudice to any obligation to account for the proceeds of any sale
                of
                such chattels or produce, shall be indemnified by the Borrower against
                any
                liability arising from such
                disposal.

            

    

     

     

    
      	
              4.

            	
              Prior
                Encumbrances

            

    

     

    At
      any
      time after the security constituted by this debenture shall have become
      enforceable or after any powers conferred by any Encumbrance having priority
      to
      this debenture shall have become exercisable, the Lender may:

     

    
      	 	
              (a)

            	
              redeem
                such or any other prior Encumbrance or procure its transfer to itself;
                and

            

    

     

    
      	 	
              (b)

            	
              settle
                any account of that encumbrancer.

            

    

     

     

    The
      settlement of any such account shall be conclusive and binding on the Borrower
      and all monies paid by the Lender to an encumbrancer in settlement of such
      an
      account shall, as from its payment by the Lender, be due from the Borrower
      to
      the Lender on current account and shall bear interest and be secured as part
      of
      the Secured Liabilities.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    
      	
              5.

            	
              Currencies
                of denomination

            

    

     

    For
      the
      purpose of or pending the discharge of any of the Secured Liabilities the Lender
      may convert any monies received, recovered or realised by the Lender under
      this
      debenture (including the proceeds of any previous conversion under this
      paragraph 5)
      from
      their existing currencies of denomination into such other currencies of
      denomination as the Lender may think fit and any such conversion shall be
      effected at the Lender's then prevailing spot selling rate of exchange for
      such
      other currency against the existing currency. Each previous reference in this
      paragraph 5
      to a
      currency extends to funds of that currency and for the avoidance of doubt funds
      of one currency may be converted into different funds of the same
      currency.

     

     

    
      	
              6.

            	
              New
                accounts

            

    

     

    
      	
              6.1

            	
              If
                the Lender receives notice of any subsequent charge or other interest
                affecting all or part of the Charged Property, the Lender may open
                a new
                account or accounts for the Borrower in the Lender's books and (without
                prejudice to the Lender's right to combine accounts) no money paid
                to the
                credit of the Borrower in any such new account will be appropriated
                towards or have the effect of discharging any part of the Secured
                Liabilities.

            

    

     

     

    
      	
              6.2

            	
              If
                the Lender does not open a new account or accounts immediately on
                receipt
                of notice under paragraph 6.1,
                then, unless the Lender gives express written notice to the contrary
                to
                the Borrower, as from the time of receipt of the relevant notice
                by the
                Lender all payments made by the Borrower to the Lender, in the absence
                of
                any express appropriation by the Borrower to the contrary, shall
                be
                treated as having been credited to a new account of the Borrower
                and not
                as having been applied in reduction of the Secured
                Liabilities.

            

    

     

     

    
      	
              7.

            	
              Lender's
                set-off rights

            

    

     

    If
      the
      Lender shall have more than one account for the Borrower in its books the Lender
      may at any time after:

     

    
      	 	
              (a)

            	
              the
                security constituted by this debenture has become enforceable;
                or

            

    

     

    
      	 	
              (b)

            	
              the
                Lender has received notice of any subsequent charge or other interest
                affecting all or any part of the Charged
                Property,

            

    

     

     

    transfer,
      without prior notice, all or any part of the balance standing to the credit
      of
      any account to any other account which may be in debit but the Lender shall
      notify the Borrower of the transfer once made.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    
      	
              8.

            	
              Indulgence

            

    

     

    The
      Lender may in its discretion grant time or other indulgence or make any other
      arrangement, variation or release with any person or persons not being a party
      to this debenture (whether or not such person or persons are jointly liable
      with
      the Borrower) in respect of any of the Secured Liabilities or of any other
      security for them without prejudice either to this debenture or to the liability
      of the Borrower for the Secured Liabilities.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    Schedule
      4 Enforcement

     

     

    
      	
              1.

            	
              Enforcement
                events

            

    

     

    This
      debenture shall be enforceable if:

     

    
      	 	
              (a)

            	
              any
                of the Secured Liabilities shall not be paid or discharged when the
                same
                ought to be paid or discharged by the Borrower (whether on demand
                or at
                scheduled maturity or by acceleration or otherwise, as the case may
                be);
                or

            

    

     

    
      	 	
              (b)

            	
              the
                Borrower shall be in breach of any of its obligations under this
                debenture
                or under any other agreement between the Borrower and the Lender
                and that
                breach (if capable of remedy) has not been remedied to the satisfaction
                of
                the Lender within 28 days of notice by the Lender to the Borrower
                to
                remedy the breach; or

            

    

     

    
      	 	
              (c)

            	
              the
                Borrower:

            

    

     

    (i)  
      becomes
      unable to pay its debts as they fall due (and/or the value of the Borrower's
      assets is less than the amount of its liabilities, taking into account the
      Borrower's contingent and prospective liabilities); or

     

    (ii)  
      commences
      negotiations with any one or more of its creditors with a view to the general
      readjustment or rescheduling of its indebtedness; or

     

    (iii)  
      makes
      a
      general assignment for the benefit of, or a composition with, its creditors;
      or

     

    
      	 	
              (d)

            	
              the
                Borrower passes any resolution or takes any corporate action or a
                petition
                is presented or proceedings are commenced or any action is taken
                by any
                person for its winding-up, dissolution, administration or re-organisation
                or for the appointment of a receiver, administrative receiver,
                administrator, trustee or similar officer of it or of any or all
                of its
                revenues and assets; or

            

    

     

    
      	 	
              (e)

            	
              a
                distress, execution, attachment or other legal process is levied
                or
                enforced upon or sued against all or any part of the assets of the
                Borrower and remains undischarged for seven days;
                or

            

    

     

    
      	 	
              (f)

            	
              an
                Event of Default (as defined in the Facility Agreement)
                occurs,

            

    

     

     

    and
      in
      any such event (whether or not the event is continuing), without prejudice
      to
      any other rights of the Lender, the powers of sale under the Law of Property
      Act
      1925 shall immediately be exercisable and the Lender may in its absolute
      discretion enforce all or any part of the security created by this debenture
      as
      it sees fit.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    
      	
              2.

            	
              Statutory
                power of sale

            

    

     

    The
      statutory power of sale shall, as between the Lender and a purchaser from the
      Lender, arise on and be exercisable at any time after the execution of this
      debenture, but the Lender shall not exercise such power of sale until the
      security constituted by this debenture has become enforceable under paragraph
      1
      of this
Schedule
      4.

     

     

    
      	
              3.

            	
              Extension
                of statutory powers

            

    

     

    The
      statutory powers of sale, leasing and accepting surrenders exercisable by the
      Lender under this debenture are extended so as to authorise the Lender whether
      in its own name or in that of the Borrower to grant a lease or leases of the
      whole or any part or parts of the freehold and leasehold property of the
      Borrower with whatever rights relating to other parts of it and containing
      whatever covenants on the part of the Borrower and generally on such terms
      and
      conditions (including the payment of money to a lessee or tenant on a surrender)
      and whether or not at a premium as the Lender thinks fit.

     

     

    
      	
              4.

            	
              Protection
                of third parties

            

    

     

    No
      purchaser, mortgagee or other person dealing with the Lender or any Receiver
      shall be concerned:

     

    
      	 	
              (a)

            	
              to
                enquire whether any of the Secured Liabilities have become due or
                payable
                or remain unpaid or undischarged, or whether the power the Lender
                or a
                Receiver is purporting to exercise has become exercisable;
                or

            

    

     

    
      	 	
              (b)

            	
              to
                see to the application of any money paid to the Lender or any
                Receiver.

            

    

     

     

    
      	
              5.

            	
              No
                liability as mortgagee in
                possession

            

    

     

    Neither
      the Lender nor any Receiver nor any Administrator shall be liable to account
      as
      mortgagee in possession in respect of all or any of the Charged Property nor
      shall any of them be liable for any loss upon realisation of, or for any neglect
      or default of any nature whatsoever in connection with, all or any of the
      Charged Property for which a mortgagee in possession might as such be
      liable.

     

     

    
      	
              6.

            	
              Appointment
                of Receiver

            

    

     

    At
      any
      time after the security constituted by this debenture becomes enforceable,
      or at
      the request of the Borrower, the Lender may without further notice:

     

    
      	 	
              (a)

            	
              appoint
                under seal or in writing by a duly authorised officer of the Lender
                any
                one or more person or persons to be a receiver or a receiver and
                manager
                of all or any part of the Charged Property;
                and

            

    

     

    
      	 	
              (b)

            	
              (subject
                to Section 45 of the Insolvency Act 1986) from time to time under
                seal or
                in writing by a duly authorised officer of the Lender remove any
                person
                appointed to be Receiver and may in like manner appoint another in
                his
                place.

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

       

    

    Where
      more than one person is appointed Receiver, they will have power to act
      separately (unless the appointment by the Lender specifies to the
      contrary).

     

     

    
      	
              7.

            	
              Powers
                additional 

            

    

     

    
      	
              7.1

            	
              The
                powers of sale and appointing a Receiver conferred by this debenture
                shall
                be in addition to all statutory and other powers of the Lender under
                the
                Insolvency Act 1986 and the Law of Property Act 1925 or otherwise
                and
                shall be exercisable without the restrictions contained in Sections
                103
                and 109 of the Law of Property Act 1925 or
                otherwise.

            

    

     

    
      	
              7.2

            	
              The
                power to appoint a Receiver (whether conferred by this debenture
                or by
                statute) shall be and remain exercisable by the Lender notwithstanding
                any
                prior appointment in respect of all or any part of the Charged
                Property.

            

    

     

     

    
      	
              8.

            	
              Agent
                of the Borrower

            

    

     

    Any
      Receiver appointed by the Lender under this debenture shall be the agent of
      the
      Borrower and the Borrower shall be solely responsible for his acts and
      remuneration as well as for any defaults committed by him.

     

     

    
      	
              9.

            	
              Powers
                of Receiver

            

    

     

    Any
      Receiver appointed by the Lender under this debenture shall in addition to
      the
      powers conferred on him by the Law of Property Act 1925 and the Insolvency
      Act
      1986 have power to do all such acts and things as an absolute owner could do
      in
      the management of such of the Charged Property over which the Receiver is
      appointed and in particular the powers set out in Schedule
      5.

     

     

    
      	
              10.

            	
              Order
                of application of proceeds

            

    

     

    All
      monies received by the Lender or a Receiver (other than insurance monies) shall
      be applied:

     

    
      	 	
              (a)

            	
              first
                in paying all rents, taxes, rates and outgoings whatever affecting
                any
                Charged Property;

            

    

     

    
      	 	
              (b)

            	
              second
                in paying all costs, charges and expenses of and incidental to the
                appointment of any Receiver and the exercise of his powers and all
                outgoings paid by him;

            

    

     

    
      	 	
              (c)

            	
              third
                in paying the remuneration of any Receiver (as agreed between him
                and the
                Lender);

            

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (d)

            	
              fourth
                in or towards discharge of the Secured Liabilities in such order
                and
                manner as the Lender shall determine;
                and

            

    

     

    
      	 	
              (e)

            	
              finally
                in paying any surplus to the Borrower or any other person entitled
                to
                it.

            

    

     

     

    
      	
              11.

            	
              Section
                109(8) Law of Property Act
                1925

            

    

     

    Neither
      the Lender nor any Receiver shall be bound (whether by virtue of section 109(8)
      of the Law of Property Act 1925, which is varied accordingly, or otherwise)
      to
      pay or appropriate any receipt or payment first towards interest rather than
      principal or otherwise in any particular order as between any of the Secured
      Liabilities.

     

     

    
      	
              12.

            	
              Suspense
                account

            

    

     

    All
      monies received by the Lender or a Receiver under this debenture may, at the
      discretion of the Lender or Receiver, be credited to any suspense or securities
      realised account and shall bear interest at such rate, if any, as may be agreed
      in writing between the Lender and the Borrower and may be held in such account
      for so long as the Lender or Receiver thinks fit.

     

     

    
      	
              13.

            	
              Power
                of attorney

            

    

     

    By
      way of
      security the Borrower irrevocably appoints the Lender and every Receiver
      separately to be the attorney of the Borrower and in its name and on its behalf
      and as its act and deed to execute any documents, and do any acts and things
      which:

     

    
      	 	
              (a)

            	
              the
                Borrower is required to execute and do under this debenture;
                and

            

    

     

    
      	 	
              (b)

            	
              any
                attorney may deem proper or desirable in exercising any of the powers,
                authorities and discretions conferred by this debenture or by law
                on the
                Lender or any Receiver.

            

    

     

     

    
      	
              14.

            	
              Ratification
                of acts of attorney

            

    

     

    By
      this
      debenture the Borrower ratifies and confirms and agrees to ratify and confirm
      anything which any of its attorneys may do in the proper and lawful exercise
      or
      purported exercise of all or any of the powers, authorities and discretions
      referred to in paragraph 13.

     

     

    
      	
              15.

            	
              Appointment
                of an Administrator

            

    

     

    
      	
              15.1

            	
              The
                Lender may without notice to the Borrower appoint any one or more
                persons
                to be an administrator of the Borrower pursuant to paragraph 14 Schedule
                B1 of the Insolvency Act 1986 if this debenture becomes
                enforceable.

            

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    
      	
              15.2

            	
              Any
                appointment under this paragraph 15
                shall:

            

    

     

    
      	 	
              (a)

            	
              be
                in writing signed by a duly authorised signatory of the Lender,
                and

            

    

     

    
      	 	
              (b)

            	
              take
                effect, in accordance with paragraph 19 of Schedule B1 of the Insolvency
                Act 1986, when the requirements of paragraph 18 of that Schedule
                B1 are
                satisfied.

            

    

     

     

    
      	
              15.3

            	
              The
                Lender may (subject to any necessary approval from the court) end
                the
                appointment of an Administrator by notice in writing in accordance
                with
                this paragraph 15
                and appoint under that paragraph a replacement for any Administrator
                whose
                appointment ends for any reason.

            

    

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    Schedule
      5 Further
      powers of receiver

     

     

     

    
      	
              1.

            	
              To
                repair and develop
                Properties

            

    

     

    To
      undertake or complete any works of repair, building or development on the
      Properties.

     

     

    
      	
              2.

            	
              To
                surrender leases

            

    

     

    To
      grant
      or to accept surrenders of any leases or tenancies affecting the Properties
      upon
      such terms and subject to such conditions as he thinks fit.

     

     

    
      	
              3.

            	
              To
                employ personnel and
                advisors

            

    

     

    To
      provide services and employ, or engage, such managers contractors and other
      personnel and professional advisors on such terms as he deems
      expedient.

     

     

    
      	
              4.

            	
              To
                make VAT elections

            

    

     

    To
      make
      such elections for value added tax purposes as he thinks fit.

     

     

    
      	
              5.

            	
              To
                charge remuneration

            

    

     

    To
      charge
      and receive such sum by way of remuneration (in addition to all costs, charges
      and expenses incurred by him) as the Lender may prescribe or agree with
      him.

     

     

    
      	
              6.

            	
              To
                realise Charged Property

            

    

     

    To
      collect and get in the Charged Property in respect of which he is appointed
      or
      any part thereof and for that purpose to make such demands and take any
      proceedings as may seem expedient and to take possession of the Charged Property
      with like rights.

     

     

    
      	
              7.

            	
              To
                manage or reconstruct the Borrower's
                business

            

    

     

    To
      carry
      on, manage, develop, reconstruct, amalgamate or diversify or concur in carrying
      on, managing, developing, reconstructing, amalgamating or diversifying the
      business of the Borrower.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    
      	
              8.

            	
              To
                dispose of Charged
                Property

            

    

     

    To
      grant
      options and licences over all or any part of the Charged Property, sell or
      concur in selling, assign or concur in assigning, lease or concur in leasing
      and
      accept or concur in accepting surrenders of leases of, all or any of the
      property of the Borrower in respect of which he is appointed in such manner
      and
      generally on such terms and conditions as he thinks fit (fixtures and plant
      and
      machinery may be severed and sold separately from the premises in which they
      are
      contained without the consent of the Borrower) and to carry any such sale,
      assignment, leasing or surrender into effect. Any such sale may be for such
      consideration as he shall think fit and he may promote or concur in promoting
      a
      Borrower to purchase the property to be sold.

     

     

    
      	
              9.

            	
              To
                make settlements

            

    

     

    To
      make
      any arrangement, settlement or compromise between the Borrower and any other
      person which he may think expedient.

     

     

    
      	
              10.

            	
              To
                improve Equipment

            

    

     

    To
      make
      substitutions of, or improvements to, the Equipment as he may think
      expedient.

     

     

    
      	
              11.

            	
              To
                make calls on Borrower
                members

            

    

     

    To
      make
      calls conditionally or unconditionally on the members of the Borrower in respect
      of the uncalled capital with such and the same powers for that purpose and
      for
      the purpose of enforcing payments of any calls so made as are conferred by
      the
      Articles of Association of the Borrower on its directors in respect of calls
      authorised to be made by them.

     

     

    
      	
              12.

            	
              To
                appoint staff and agents

            

    

     

    To
      appoint managers, officers, servants, workmen and agents for the aforesaid
      purposes at such salaries and for such periods and on such terms as he may
      determine.

     

     

    
      	
              13.

            	
              To
                insure

            

    

     

    If
      he
      thinks fit, but without prejudice to the indemnity contained in clause
9,
      to
      effect with any insurer any policy or policies of insurance either in lieu
      or
      satisfaction of, or in addition to, such insurance.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    
      	
              14.

            	
              Law
                of Property Act 1925

            

    

     

    To
      exercise all powers provided for in the Law of Property Act 1925 in the same
      way
      as if he had been duly appointed under that act and to exercise all powers
      provided for an administrative receiver in Schedule 1 of the Insolvency Act
      1986.

     

     

    
      	
              15.

            	
              To
                borrow

            

    

     

    For
      any
      of the purposes authorised by this Schedule
      5
      to raise
      money by borrowing from the Lender or from any other person on the security
      of
      all or any of the Charged Property in respect of which he is appointed upon
      such
      terms (including if the Lender shall consent to terms under which such security
      ranks in priority to this debenture) as he shall think fit.

     

     

    
      	
              16.

            	
              To
                redeem prior Encumbrances

            

    

     

    To
      redeem
      any prior Encumbrance and to settle and pass the accounts to which the
      Encumbrance relates and any accounts so settled and passed will be conclusive
      and binding on the Borrower and the monies so paid will be deemed to be an
      expense properly incurred by him.

     

     

    
      	
              17.

            	
              Incidental
                powers

            

    

     

    To
      do all
      such other acts and things as he may consider incidental or conducive to any
      of
      the matters or powers in this Schedule
      5
      or which
      he lawfully may or can do as agent for the Borrower.

     

     

    
      	
              18.

            	
              Scope
                of powers

            

    

     

    Any
      exercise of any of these powers may be on behalf of the Borrower, the directors
      of the Borrower (in the case of the power contained in paragraph 11)
      or
      himself.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    Schedule
      6 Notice
      details

     

    

    
      	
              The
                Borrower:

            	
              Advance
                Homeland Security PLC

              Savannah
                House

              5th
                Floor

              11
                Charles II Street

              London
                SW1Y 4QU

            
	 	 
	
              The
                Lender: 

            	
              Conquistador
                Investments Limited

              Suite
                F8, International Commercial Centre, 

              Main
                Road, Gibraltar

            

    

    

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    

    

    
      	
               

              Executed
                as a deed by 

              ADVANCE
                HOMELAND SECURITY PLC
                acting by 

              Magnus
                Gittins and 

              Tony
                Goncalves

            	
               

               

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

              Director

               

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

              Director/Secretary

            
	 	 
	
               

               

               

               

               

              Executed
                as a deed on behalf of 

              CONQUISTADOR
                INVESTMENTS LIMITED, 

              a
                company incorporated 

              in
                Gibraltar acting by 

              [John
                Lister] [and] 

              [Giselle
                Parker], being [a] person[s] who, in accordance with the laws

              of
                that territory,
                [is][are] acting under the authority of the company

            	
               

               

               

               

               

               

               

               

              Signature[s]:

               

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

               

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

              Authorsied
                [signatory][Signatories]

            

    

    
 

     

    
      
        
        

      

      
        27AMENDED
      AND RESTATED EMPLOYMENT AGREEMENT 

    

    This
      Employment Agreement (the "Agreement"), is entered into as of January 17, 2007
      (the “Effective Date”), between LEV PHARMACEUTICALS, INC., a Delaware
      corporation (with its successors and assigns, referred to as the "Company"),
      and
      Judson Cooper (referred to as "Cooper"). 

    

    WHEREAS,
      the Company and Cooper are party to an Employment Agreement dated as of November
      1, 2004 (the “Original Employment Agreement”);

    

    WHEREAS,
      the Company and Cooper mutually desire to amend and restate the terms of such
      Original Employment Agreement upon the terms and conditions set forth herein.
      

    

    NOW,
      THEREFORE, in consideration of the foregoing premises and of the mutual
      agreements and covenants hereinafter set forth, the parties hereto agree to
      the
      terms and conditions of this Agreement as follows: 

    

    1.
      Employment
      for Term.
      The
      Company hereby continues to employ Cooper and Cooper hereby accepts such
      continued employment with the Company for the period beginning on the Effective
      Date and ending December 31, 2010 (the "Initial Term"), or upon the earlier
      termination of the Term pursuant to Section 6. This Agreement shall be
      automatically renewed for additional one-year periods (the "Renewal Terms;"
      together with the Initial Term, the "Term") unless either party notifies the
      other in writing of its intention not to so renew this Agreement no less than
      90
      days prior to the expiration of the Initial Term or a Renewal Term. The
      termination of Cooper's employment under this Agreement shall end the Term
      but
      shall not terminate Cooper's or the Company's other obligations that are
      intended to survive the termination of this Agreement (including without
      limitation, the payments under Section 7 and 8 and Cooper’s obligations under
      Section 9). 

    

    2.
      Position
      and Duties.
      During
      the Term, Cooper shall serve as Chairman of the Board and Executive Vice
      President of the Company, perform such duties as are consistent with his
      position and report to the Board of Directors of the Company. During the Term,
      Cooper shall also hold such additional positions and titles as the Board of
      Directors of the Company (the "Board") may determine from time to time. During
      the Term, Cooper shall devote as much time as is necessary to satisfactorily
      perform his duties as an employee and officer of the Company. The Company shall
      nominate Cooper, and use its best efforts to have Cooper elected, to the Board
      of Directors of the Company (the “Board”) throughout the Term of this Agreement
      and shall include him in the management slate for election as a director at
      every stockholders meeting during the Term at which his term as a director
      would
      otherwise expire. Cooper agrees to accept election, and to serve during the
      Term, as director of the Company.

    

    3.
      Compensation.
      

    

    (a)
       Base
      Salary.
      The
      Company shall pay Cooper a base salary of $425,000 per annum, beginning as
      of
      January 1, 2007 and ending on the last day of the Term, payable at least monthly
      on the Company's regular pay cycle for professional employees (as it may be
      increased (but not decreased), the "Base Salary"). 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (b) Annual
      Increases.
      The
      Base Salary shall be increased at the end of each year of service (commencing
      at
      the end of 2007) by the greater of (i) 4% or (ii) a percentage equal to the
      increase, if any, in the United States Department of Labor Consumer Price Index
      (or comparable index, if available) for the New York metropolitan area over
      the
      previous 12 months. 

    

    (c) Equity.
      Pursuant to the Company's 2004 Omnibus Incentive Compensation Plan (the "Plan"),
      on the Effective Date, the Company granted to Cooper a nonqualified stock option
      to purchase 1,600,000 shares of the Company's Common Stock at a per share
      exercise price of $1.60 as determined in accordance with the Plan on the
      Effective Date (the “New Options”). The New Options shall vest in equal annual
      installments of 25% commencing on the first anniversary of the Effective Date
      subject to Cooper’s continued employment on the applicable vesting date, except
      as provided below as a result of a Change in Control and in Section 7. The
      New
      Options shall expire on the tenth anniversary of the Effective Date subject
      to
      earlier expiration in the event of a termination of Cooper’s employment by the
      Company with Cause (as defined below) in which event the Options shall expire
      immediately. In the event of a Change in Control (as defined below in Section
      8), the New Options shall be deemed fully vested. The New Options shall be
      evidenced by an award agreement that incorporates the terms herein.

    

    Cooper
      has previously been granted a fully vested option to purchase 1,427,450 shares
      at a per share exercise price of $.30 under the Plan and such option will remain
      outstanding through November 1, 2014 in accordance with the applicable option
      agreement. 

    

    The
      Company covenants to maintain a Form S-8 Registration Statement on file with
      the
      SEC with respect to the equity awards made to Cooper.

    

    (d) Bonus.
      Cooper
      shall receive a cash bonus of 60% of his base salary (at the rate in effect
      on
      December 31, 2006) for his 2006 performance as soon as practicable after the
      Effective Date. For fiscal 2007, Cooper shall be eligible to receive a bonus
      targeted at 30% of Base Salary for fiscal 2007 upon his achievement of
      performance measures to be mutually agreed between Cooper and the Compensation
      Committee of the Board on or before January 31, 2007. Cooper shall be eligible
      to receive a bonus in excess of the targeted amount, in the discretion of the
      Compensation Committee of the Board of Directors. For future years, Cooper
      shall
      be eligible for an annual cash bonus at the discretion of the Compensation
      Committee based upon its assessment of Cooper’s and the Company’s performance.
      Cooper is entitled to such bonus so long as he remains in the employ of the
      Company through the end
      of
      the applicable fiscal year, except as provided below. Any such bonus for a
      particular fiscal year will be paid no later than the first pay period after
      the
      filing of the Company’s report on Annual Report on Form 10-K or Form 10-KSB (as
      the case may be) with the Securities and Exchange Commission
      for the
      fiscal year for such bonus. 

    

    (e)
      Other
      and Additional Compensation.
      The
      preceding sections establish the minimum compensation during the Term and shall
      not preclude the Compensation Committee from awarding Cooper a higher salary
      or
      any bonuses or stock options, restricted stock or other forms of equity awards
      in the discretion of the Committee during the Term at any time. The Company
      shall pay Cooper a monthly car allowance of $1,000. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    4.
      Employee
      Benefits.
      During
      the Term, Cooper shall be entitled to participate at the same level as other
      senior executive officers of the Company in any group insurance,
      hospitalization, medical, health and accident, disability, fringe benefit and
      tax-qualified retirement plans or programs of the Company now existing or
      hereafter established to the extent that he is eligible under the general
      provisions thereof. For the term of this Agreement, Cooper shall be entitled
      to
      paid vacation at the rate of (4) weeks per annum.

    

    5.
      Expenses.
      The
      Company shall reimburse Cooper for actual out-of-pocket expenses incurred by
      him
      in the performance of his services for the Company upon the receipt of
      appropriate documentation of such expenses. 

    

    6.
      Termination.
      

    

    (a)
      General.
      The
      Term shall end immediately upon Cooper's death. Cooper’s employment may also be
      terminated by the Company with or without Cause or as a result of Cooper’s
      Disability, as defined in Section 7 or by Cooper with or without Good Reason
      (as
      such terms are defined below). 

    

    (b)
      Notice
      of Termination.
      Either
      party shall give written notice of termination to the other party, which shall
      include a statement as to the reason for the termination. 

    

    7.
      Severance
      Benefits. 

    

    (a)
      Cause
      Defined.
      "Cause"
      means (i) willful malfeasance or willful misconduct by Cooper in connection
      with
      his employment; (ii) Cooper's gross negligence in performing any of his duties
      under this Agreement; (iii) Cooper's conviction of, or entry of a plea of guilty
      to, or entry of a plea of nolo contendre with respect to, any crime other than
      a
      traffic violation or infraction which is a misdemeanor; (iv) Cooper's material
      breach of any written policy applicable to all employees adopted by the Company
      which is not cured to the reasonable satisfaction of the Company within thirty
      (30) business days after notice thereof; or (v) material breach by Cooper of
      any
      of his obligations in this Agreement which is not cured to the reasonable
      satisfaction of the Company within thirty (30) business days after notice
      thereof. 

    

    (b)
      Disability
      Defined.
      "Disability" shall mean (i) Cooper's incapacity due to physical or mental
      illness that results in his being substantially unable to perform his duties
      hereunder for six consecutive months (or for six months out of any nine month
      period) or (ii) a qualified independent physician mutually acceptable to the
      Company and Cooper determines that Cooper is mentally or physically disabled
      so
      as to be unable to regularly perform the duties of his position and such
      condition is expected to be of a permanent duration. During a period of
      Disability, Cooper shall continue to receive his Base Salary hereunder, provided
      that if the Company provides Cooper with disability insurance coverage, payments
      of Cooper's Base Salary shall be reduced by the amount of any disability
      insurance payments received by Cooper due to such coverage. The Company shall
      give Cooper written notice of termination which shall take effect sixty (60)
      days after the date it is sent to Cooper unless Cooper shall have returned
      to
      the performance of his duties hereunder during such sixty (60) day period
      (whereupon such notice shall become void). In the event that the Company
      terminates Cooper’s employment as a result of his Disability, Cooper shall be
      entitled to the same benefits as if his employment had been terminated by the
      Company without Cause.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (c)
      Good
      Reason Defined.
      If the
      Company (i) reassigns Cooper's base of operations outside of New York City,
      (ii)
      materially reduces Cooper's duties or responsibilities during the Term,
      including replacing Cooper as Chairman , (iii) materially breaches this
      Agreement or (iv) provides notice of nonrenewal of the Agreement pursuant to
      Section 1 of this Agreement or (v) any time after six months following the
      occurrence of a Change in Control (each such event being “Good Reason”) then, at
      his option, Cooper may treat such event as a termination of the Term without
      Cause by the Company unless the Company has cured the event (if susceptible
      to
      cure) within 30 business days of receipt of written notice from Cooper.

    

    (d)
      Accrued
      Compensation Defined.
      Accrued
      Compensation shall mean an amount which shall include all amounts earned or
      accrued by Cooper through the date of termination of this Agreement but not
      paid
      as of such date, including (i) Base Salary, (ii) reimbursement for business
      expenses incurred by the Cooper on behalf of the Company, pursuant to the
      Company’s expense reimbursement policy in effect at such time, (iii) expense
      allowance, (iv) vacation pay per Company policy, and (v) bonuses and incentive
      compensation earned and awarded prior to the date of termination. Accrued
      Compensation shall be paid on the first regular pay date after the date of
      termination (or earlier, if required by applicable law).

    

    (e)
      Termination.
      (i)
      Cause; Without Good Reason. If the Company ends the Term for Cause, or if Cooper
      resigns as an employee of the Company for reasons other than an event of Good
      Reason, then the Company shall pay to Cooper the Accrued Compensation but shall
      have no obligation to pay Cooper any amount, whether for salary, benefits,
      bonuses, or other compensation or expense reimbursements of any kind, accruing
      after the end of the Term, and such rights shall, except as otherwise required
      by law or pursuant to the applicable award agreement or plan (including, without
      limitation, the documents evidencing the Old Options), be forfeited immediately
      upon the end of the Term. For the sake of clarity, the New Options and the
      Old
      Options, to the extent vested on the date of resignation without Good Reason
      will remain outstanding through the expiration of the original ten year
      term.

    

    (ii)
      Without Cause; Good Reason; Death. In the event that the Company terminates
      Cooper’s employment hereunder without Cause, Cooper terminates his employment
      with Good Reason or his employment terminates as a result of his death, he
      shall
      be entitled to the Accrued Compensation and, subject to Section 21 below, the
      following payments and benefits:

     

    (A)
      a
      lump sum payment equal to the greater of (x) or (y): 

    

    (x)
      (1)
      two times his Base Salary in effect at the date of termination plus (2) two
      times the greater of (the “Applicable Bonus”) the bonus paid for the fiscal year
      prior to the date of termination or 60% of his Base Salary in effect at the
      date
      of termination plus (3) a pro rated bonus for the year of termination based
      upon
      the Applicable Bonus; or

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (y)
      (1)
      Base Salary as if Cooper remained in the employ of the Company through December
      31, 2010 plus (2) bonus payments as if he remained in the employ of the Company
      through December 31, 2010 based upon the Applicable Bonus. Such payment to
      be
      made no later than 10 business days from the date of termination; 

    

    ;
      provided, however, that in the event of the termination of Cooper’s employment
      as a result of his death, the lump sum payment pursuant to this Section
      7(e)(ii)(A) shall be the amount provided in (x) above.

    

    (B)
      continued participation in the health and welfare plans (or comparable plans)
      provided by the Company to Cooper at the time of termination for a period equal
      to the greater of two years from the date of termination and December 31, 2010
      or, if earlier until he is eligible for comparable coverage with a subsequent
      employer. Cooper shall give the Company prompt notice of his eligibility of
      comparable coverage.

    

    (C)
      the
      New Options shall be deemed fully vested on the date of termination and any
      restrictions thereon shall lapse and the options shall remain outstanding
      through the expiration of the original ten year term. 

    

    (D)
      Liquidated
      Damages.
      Cooper
      acknowledges that the payment in full of all amounts and benefits due to him
      under this Section 7(d)(ii)(A)-(C) resulting from a termination of the Term
      by
      the Company without Cause or by Cooper for Good Reason (as such terms are
      defined above) are in lieu of any and all claims that Cooper may have against
      the Company or any of its affiliates (including, without limitation, any
      discrimination claims under Title VII of the Civil Rights Act of 1964, the
      Age
      Discrimination in Employment Act and similar federal and state laws and
      regulations) other than benefits under the Company's employee benefit plans
      that
      by their terms survive termination of employment, benefits under the
      Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and rights
      to indemnification as set forth below and under the Company’s charter and
      by-laws), and represent liquidated damages (and not a penalty). The Company
      may
      request that Cooper confirm such acknowledgment in writing prior to the receipt
      of such benefits.

    

    8.
      Change
      in Control Payment.
      The
      provisions of this paragraph 8 set forth the terms of an agreement reached
      between Cooper and the Company regarding Cooper's rights and obligations upon
      the occurrence of a "Change in Control" (as hereinafter defined) of the Company
      during the Term. These provisions are intended to assure and encourage in
      advance Cooper's continued attention and dedication to his assigned duties
      and
      his objectivity during the pendency and after the occurrence of any such Change
      in Control. The following provisions shall apply in the event of a Change in
      Control, in addition to any payment or benefit that may be required pursuant
      to
      Section 7.

    

    (a) Equity.
      Upon
      the
      occurrence of a Change in Control, all stock options and other stock-based
      grants (including, without limitation, the New Options) to Cooper by the Company
      or that may be granted in the future shall, irrespective of any provisions
      of
      his award agreements, immediately and irrevocably vest and become exercisable.
      In addition, six months after a Change in Control, Cooper may resign without
      Good Reason and receive the same payments and benefits as if his employment
      were
      terminated by the Company without Cause.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (b)
      Gross
      Up Payment.
      

    

    (1)
      Excess
      Parachute Payment.
      If
      Cooper incurs the tax (the "Excise Tax") imposed by Section 4999 of the Internal
      Revenue Code of 1986 (the "Code") on "Excess Parachute Payments" within the
      meaning of Section 28OG(b)(1) of the Code, the Company will pay to Cooper an
      amount (the "Gross Up Payment") such that the net amount retained by Cooper,
      after deduction of any Excise Tax on both the Excess Parachute Payment and
      any
      federal, state and local income tax (together with penalties and interest)
      as
      well as the Excise Tax upon the payment provided for by this subparagraph
      8(b)(1), will be equal to the Change in Control Amount. 

    

    (2)
      Applicable
      Rates.
      For
      purposes of determining the amount of the Gross Up Payment, Cooper will be
      deemed to pay federal income taxes at the highest marginal rate of federal
      income taxation in the calendar year in which the Gross Up Payment is to be
      made
      and state and local income taxes at the highest marginal rates of taxation
      in
      the state and locality where taxes thereon are lawfully due, net of the maximum
      reduction (if any) in federal income taxes that could be obtained from deduction
      of deductible state and local taxes. 

    

    (3)
      Determination
      of Gross Up Payment Amount.
      The
      determination of whether the Excise Tax is payable and the amount thereof will
      be based upon the opinion of tax counsel selected by Cooper and reasonably
      approved by the Company, which approval will not be unreasonably withheld or
      delayed. If such opinion is not finally accepted by the Internal Revenue Service
      (or state and local taxing authorities), then appropriate adjustments to the
      Excise Tax will be computed and additional Gross Up Payments will be made in
      the
      manner provided by this subparagraph (b). 

    

    (4)
      Payment.
      The
      Company will pay the estimated amount of the Gross Up Payment in cash to Cooper
      at the time specified in this Agreement. Cooper and the Company agree to
      reasonably cooperate in the determination of the actual amount of the Gross
      Up
      Payment. Further, Cooper and the Company agree to make such adjustments to
      the
      estimated amount of the Gross Up Payment as may be necessary to equal the actual
      amount of the Gross Up Payment, which in the case of the Company will refer
      to
      refunds of prior overpayments by the Company and in the case of Cooper will
      refer to additional payments to Cooper to make up for prior underpayments.
      

    

    (c)
      Definitions.
      For
      purposes of this paragraph 8, the following terms shall have the following
      meanings: 

    

    "Change
      in Control" shall mean any of the following: 

    

    (1)
      the
      acquisition by any individual, entity, or group (within the meaning of Section
      13(d)(3) or 14(d)(2) of the Exchange Act) (the "Acquiring Person"), other than
      the Company, or any of its Subsidiaries or any Excluded Group (as defined
      herein), of beneficial ownership (within the meaning of Rule 13d-3- promulgated
      under the Exchange Act) of 35% or more of the combined voting power or economic
      interests of the then outstanding voting securities of the Company entitled
      to
      vote generally in the election of directors; provided however, that any transfer
      from Judson Cooper or Joshua Schein (the "Excluded Group") will not result
      in a
      Change in Control if such transfer was part of a series of related transactions
      the effect of which, absent the transfer to such Acquiring Person by the
      Excluded Group, would not have resulted in the acquisition by such Acquiring
      Person of 35% or more of the combined voting power or economic interests of
      the
      then outstanding voting securities; or 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (2)
      during any period of 12 consecutive months after the date of this Amendment,
      the
      individuals who at the beginning of any such 12-month period constituted a
      majority of the Directors (the "Incumbent Non-Investor Majority") cease for
      any
      reason to constitute at least a majority of such Directors; provided that (i)
      any individual becoming a director whose election, or nomination for election
      by
      the Company's stockholders, was approved by a vote of the stockholders having
      the right to designate such director and (ii) any director whose election to
      the
      Board or whose nomination for election by the stockholders of the Company was
      approved by the requisite vote of directors entitled to vote on such election
      or
      nomination in accordance with the Restated Certificate of Incorporation of
      the
      Company, shall, in each such case, be considered as though such individual
      were
      a member of the Incumbent Non-Investor Majority, but excluding, as a member
      of
      the Incumbent Non-Investor Majority, any such individual whose initial
      assumption of office is in connection with an actual or threatened election
      contest relating to the election of the directors of the Company (as such terms
      are used in Rule 14a-2 of Regulation 14A promulgated under the Exchange Act)
      and
      further excluding any person who is an affiliate or associate of an Acquiring
      Person having or proposing to acquire beneficial ownership of 25% or more of
      the
      combined voting power of the then outstanding voting securities of the Company
      entitled to vote generally in the election of directors; or 

    

    (3)
      the
      consummation by the Company of a reorganization, merger or consolidation, in
      each case, with respect to which all or substantially all of the individuals
      and
      entities who were the respective beneficial owners of the voting securities
      of
      the Company immediately prior to such reorganization, merger, or consolidation
      do not, following such reorganization, merger, or consolidation, beneficially
      own, directly or indirectly, more than 50% of the combined voting power of
      the
      then outstanding voting securities entitled to vote generally in the election
      of
      directors of the Company resulting from such reorganization, merger, or
      consolidation; or 

    

    (4)
      the
      sale or other disposition of assets representing 50% or more of the assets
      of
      the Company in one transaction or series of related transactions not initiated
      or commenced by any person within the Excluded Group; or 

    

    (5)
      a
      "Fundamental Change in Business" as hereinafter defined; or 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (6)
      a
      "Hostile Takeover" as hereinafter defined is declared. 

    

    "Fundamental
      Change in Business" shall mean that the Company, at any time, no longer spends
      at least fifty percent (50%) of its annual budget on activities related to
      biotechnology or pharmaceuticals. 

    

    "Hostile
      Takeover" shall mean any Change in Control which at any time is declared by
      at
      least a majority of the Board, directly or indirectly, to be hostile or not
      in
      the best interests of the Company, or in which an attempt is made (irrespective
      of whether successful) to wrest control away from the incumbent management
      of
      the Company, or with respect to which the Board makes any effort to resist.
      

    

    9.
      Confidentiality,
      Ownership, and Covenants.
      

    

    (a)
      "Company
      Information" and "Inventions" Defined.
      "Company Information" means all information, knowledge or data of or pertaining
      to (i) the Company, its employees and all work undertaken on behalf of the
      Company, and (ii) any other person, firm, Company or business organization
      with
      which the Company may do business during the Term, that is not in the public
      domain (and whether relating to methods, processes, techniques, discoveries,
      pricing, marketing or any other matters). "Inventions" collectively refers
      to
      any and all inventions, trade secrets, ideas, processes, formulas, source and
      object codes, data, programs, other works of authorship, know-how, improvements,
      research, discoveries, developments, designs, and techniques regarding any
      of
      the foregoing. 

    

    (b)
      Confidentiality.
      Cooper
      hereby recognizes that the value of all trade secrets and other proprietary
      data
      and all other information of the Company not in the public domain disclosed
      by
      the Company in the course of his employment with the Company may be attributable
      substantially to the fact that such confidential information is maintained
      by
      the Company in strict confidentiality and secrecy and would be unavailable
      to
      others without the expenditure of substantial time, effort or money. Cooper,
      therefore, except as provided in the next two sentences, covenants and agrees
      that all Company Information shall be kept secret and confidential at all times
      during or after the Term and shall not be used or divulged by him outside the
      scope of his employment as contemplated by his Agreement, except as the Company
      may otherwise expressly authorize by action of the Board. In
      the
      event that Cooper is requested in a judicial, administrative or governmental
      proceeding to disclose any of the Company Information, Cooper will promptly
      so
      notify the Company so that the Company may seek a protective order of other
      appropriate remedy and/or waive compliance with this Agreement. If disclosure
      of
      any of the Company Information is required, Cooper may furnish the material
      so
      required to be furnished, but Cooper will furnish only that portion of the
      Company Information that legally is required. 

    

    (c)
      Ownership
      of Inventions, Patents and Technology.
      Cooper
      hereby assigns to the Company all of Cooper's rights (including patent rights,
      copyrights, trade secret rights, and all other rights throughout the world),
      title and interest in and to Inventions, whether or notpatentable or registrable
      under copyright or similar statutes, made or conceived or reduced to practice
      or
      learned by Cooper, either alone or jointly with others, during the course of
      the
      performance of services for the Company. Cooper shall also assign to, or as
      directed by, the Company, all of Cooper's right, title and interest in and
      to
      any and all Inventions, the full title to which is required to be in the United
      States government of any of its agencies. The Company shall have all right,
      title and interest in all research and work product produced by Cooper as an
      employee of the Company, including, but not limited to, all research materials
      and lab books. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (d)
      Non-Competition.
      During
      his employment with the Company and for a period of one year after the
      termination of such employment for any reason, Cooper agrees that he will not
      enter into or become associated with or engage in any other business (whether
      as
      a partner, officer, director, shareholder, employee, consultant, or otherwise),
      which
      business is in direct competition with the Company (a “Competitive Business”).
      For purposes of this Agreement, the Company shall be deemed to be actively
      engaged (a) on the date hereof in the development and commercialization of
      therapeutic products for the treatment of hereditary angioedema and (b) in
      the
      future during the Term of this Agreement in any other material business in
      which
      the Company actually devotes substantive resources to study, develop or pursue
      and in which Executive is directly and actively involved. Notwithstanding the
      foregoing, (x) the ownership by Cooper of less than five percent of the shares
      of any publicly held corporation shall not violate the provisions of this
      Article VII, and (y) Cooper shall not be required to comply with any provision
      of this Section 9(d) following termination of this Agreement if the amounts
      required to be paid under Sections 7 or 8 of this Agreement are not timely
      paid.

    

    (e)
      Remedies.
      Cooper
      hereby acknowledges that the covenants and agreements contained in Section
      9
      (the “Restrictive Covenants”) are reasonable and valid in all respects and that
      the Company is entering into this Agreement, inter alia, on such
      acknowledgement. If Cooper breaches, or threatens to commit a breach, of any
      of
      the Restrictive Covenants, the Company shall have the following rights and
      remedies, each of which rights and remedies shall be independent of the other
      and severally enforceable, and all of which rights and remedies shall be in
      addition to, and not in lieu of, any other rights and remedies available to
      the
      Company under law or in equity: (i) the right and remedy to have the Restrictive
      Covenants specifically enforced by any court having equity jurisdiction, it
      being acknowledged and agreed that any such breach or threatened breach will
      cause irreparable injury to the Company and that money damages will not provide
      an adequate remedy to the Company; (ii) the right and remedy to require Cooper
      to account for and pay over to the Company such damages as are recoverable
      at
      law as the result of any transactions constituting a breach of any of the
      Restrictive Covenants; (iii) if any court determines that any of the Restrictive
      Covenants, or any part thereof, is invalid or unenforceable, the remainder
      of
      the Restrictive Covenants shall not thereby be affected and shall be given
      full
      effect, without regard to the invalid portions; and (iv) if any court construes
      any of the Restrictive Covenants, or any part thereof, to be unenforceable
      because of the duration of such provision or the area covered thereby, such
      court shall have the power to reduce the duration or area of such provision
      and,
      in its reduced form, such provision shall then be enforceable and shall be
      enforced. 

    

    (f)
      Jurisdiction.
      The
      parties intend to and hereby confer jurisdiction to enforce the Restrictive
      Covenants upon the courts of any jurisdiction within the geographical scope
      of
      such Covenants. If the courts of any one or more such jurisdictions hold the
      Restrictive Covenants wholly unenforceable by reason of the breadth of such
      scope or otherwise, it is the intention of the parties that such determination
      not bar or in any way affect the Company's right to the relief provided above
      in
      the courts of any other jurisdiction, within the geographical scope of such
      Covenants, as to breaches of such Covenants in such other respective
      jurisdiction such Covenants as they relate to each jurisdiction being, for
      this
      purpose, severable into diverse and independent covenants. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    10.
      Successors
      and Assigns. 

    

    (a)
      Cooper.
      This
      Agreement is a personal contract, and the rights and interests that the
      Agreement accords to Cooper may not be sold, transferred, assigned, pledged,
      encumbered, or hypothecated by him. All rights and benefits of Cooper shall
      be
      for the sole personal benefit of Cooper, and no other person shall acquire
      any
      right, title or interest under this Agreement by reason of any sale, assignment,
      transfer, claim or judgement or bankruptcy proceedings against Cooper. Except
      as
      so provided, this Agreement shall inure to the benefit of and be binding upon
      Cooper and his personal representatives, distributes and legatees. 

    

    (b)
      The
      Company.
      This
      Agreement shall be binding upon the Company and inure to the benefit of the
      Company and of its successors and assigns, including (but not limited to) any
      Company that may acquire all or substantially all of the Company's assets or
      business or into or with which the Company may be consolidated or merged. In
      the
      event that the Company sells all or substantially all of its assets, merges
      or
      consolidates, otherwise combines or affiliates with another business, dissolves
      and liquidates, or otherwise sells or disposes of substantially all of its
      assets, then this Agreement shall continue in full force and effect. The
      Company's obligations under this Agreement shall cease, however, if the
      successor to, the purchaser or acquirer either of the Company or of all or
      substantially all of its assets, or the entity with which the Company has
      affiliated, shall assume in writing the Company's obligations under this
      Agreement (and deliver and executed copy of such assumption to Cooper), in
      which
      case such successor or purchaser, but not the Company, shall thereafter be
      the
      only party obligated to perform the obligations that remain to be performed
      on
      the part of the Company under this Agreement. 

    

    11.
      Entire
      Agreement.
      This
      Agreement (together with the equity award agreements referred to herein)
      represents the entire agreement between the parties concerning Cooper's
      employment with the Company and supersedes all prior negotiations, discussions,
      understanding and agreements, whether written or oral, between Cooper and the
      Company relating to the subject matter of this Agreement (including, without
      limitation, the Original Employment Agreement (other than with respect to the
      option referenced therein, as amended). 

    

    12.
      Amendment
      or Modification, Waiver.
      No
      provision of this Agreement may be amended or waived unless such amendment
      or
      waiver is agreed to in writing signed by Cooper and by a duly authorized officer
      of the Company. No waiver by any party to this Agreement or any breach by
      another party of any condition or provision of this Agreement to be performed
      by
      such other party shall be deemed a waiver of a similar or dissimilar condition
      or provision at the same time, any prior time or any subsequent time.

    

    13.
      Notices.
      Any
      notice to be given under this Agreement shall be in writing and delivered
      personally or sent by overnight courier or registered or certified mail, postage
      prepaid, return receipt requested, addressed to the party concerned at the
      address indicated below, or to such other address of which such party
      subsequently may give notice in writing: 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

      
        	
                If
                  to Cooper:

              	
                 to
                  the address specified in the payroll records of the
                  Company

              
	 	 
	
                If
                  to the Company:

              	
                 122
                  East 42nd
                  Street

              
	
                 

              	
                 Suite
                  1700

              
	
              	
                 New
                  York, NY 10168

              

      

Any
      notice delivered personally or by overnight courier shall be deemed given on
      the
      date delivered and any notice sent by registered or certified mail, postage
      prepaid, return receipt requested, shall be deemed given on the date mailed.
      

    

    14.
      Severability.
      If any
      provision of this Agreement or the application of any such provision to any
      party or circumstances shall be determined by any court of competent
      jurisdiction to be invalid and unenforceable to any extent, the remainder of
      this Agreement or the application of such provision to such person or
      circumstances other than those to which it is so determined to be invalid and
      unenforceable shall not be affected, and each provision of this Agreement shall
      be validated and shall be enforced to the fullest extent permitted by law.
      If
      for any reason any provision of this Agreement containing restrictions is held
      to cover an area or to be for a length of time that is unreasonable or in any
      other way is construed to be too broad or to any extent invalid, such provision
      shall not be determined to be entirely null, void and of no effect; instead,
      it
      is the intention and desire of both the Company and Cooper that, to the extent
      that the provision is or would be valid or enforceable under applicable law,
      any
      court of competent jurisdiction shall construe and interpret or reform this
      Agreement to provide for a restriction having the maximum enforceable area,
      time
      period and such other constraints or conditions (although not greater than
      those
      contained currently contained in this Agreement) as shall be valid and
      enforceable under the applicable law. 

    

    15.
      Survivorship.
      The
      respective rights and obligations of the parties hereunder shall survive any
      termination of this Agreement to the extent necessary to the intended
      preservation of such rights and obligations. 

    

    16.
      Headings.
      All
      descriptive headings of sections and paragraphs in this Agreement are intended
      solely for convenience of reference, and no provision of this Agreement is
      to be
      construed by reference to the heading of any section or paragraph. 

    

    17.
      Withholding
      Taxes.
      All
      salary, benefits, reimbursements and any other payments to Cooper under this
      Agreement shall be subject to all applicable payroll and withholding taxes
      and
      deductions required by any law, rule or regulation of and federal, state or
      local authority. 

    

    18.
      Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed to be an original but all of which together constitute one and same
      instrument. 

    

    19.
      Applicable
      Law; Arbitration.
      The
      validity, interpretation and enforcement of this Agreement and any amendments
      or
      modifications hereto shall be governed by the laws of the State of New York,
      as
      applied to a contract executed within and to be performed in such State. The
      parties agree that any disputes shall be definitively resolved by binding
      arbitration before the American Arbitration Association in New York, New York
      and consent to the jurisdiction to the federal courts of the Southern District
      of New York or, if there shall be no jurisdiction, to the state courts located
      in New York County, New York, to enforce any arbitration award rendered with
      respect thereto. Each party shall choose one arbitrator and the two arbitrators
      shall choose a third arbitrator. All costs and fees related to such arbitration
      (and judicial enforcement proceedings, if any) shall be borne by the Company
      unless Cooper’s claim is deemed to be frivolous by the arbitrator(s) or judge.
      The Company shall pay the reasonable legal fees and expenses of counsel
      (collectively, the “Fees”) incurred by Cooper in the event there is a dispute
      hereunder as follows: if such dispute is settled, the Company shall pay the
      Fees
      or, in the event that it is resolved by binding arbitration or a judgment,
      the
      Company shall pay the Fees unless the arbitrator or judge finds that Cooper’s
      claim was frivolous. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    20.  Legal
      Fees.
      The
      Company shall reimburse Cooper for the reasonable expenses of his counsel in
      drafting and negotiating this Agreement on an after tax basis.

    

    21.  Section
      409A.
      The
      payments provided for herein are intended to comply with the terms of Section
      409A of the Internal Revenue Code. In the event, however, that any such payments
      are determined to be subject to 409A, then the Company will make such
      adjustments as are reasonably required to comply with such section, including
      delaying any such payments that would have been required to be paid to Cooper
      pursuant to this Agreement during the first six months following the termination
      of Cooper’s employment until the end of such six-month period in accordance with
      the requirements of Section 409A.

    

    22.  Indemnification.
      The
      Company shall, to the maximum extent permitted by law, indemnify and hold Cooper
      harmless against, and shall purchase director and officer indemnity insurance
      on
      behalf of Cooper for, expenses, including reasonable attorneys fees (the
      attorney to be selected by Cooper), judgments, fines, settlements and other
      amounts actually and reasonably incurred in connection with any proceeding
      or
      claim (or threatened proceeding or claim) arising by reason of Cooper’s
      employment by the Company. The Company shall advance to Cooper any expense
      incurred in defending any such proceeding or claim (or threatened proceeding
      or
      claim) to the maximum extent permitted by law. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      date
      first written above. 

    
      	 	 	 
	 	Lev Pharmaceuticals, Inc.
              
	 
 	 
 	 
 
	
            	By:  	/s/ Eric I. Richman
	 	
              
Eric
              I. Richman 
	 	Chairman of the Compensation Committee
              

    

     

    
      	 	 	 
	 	Employee
	 
 	 
 	 
 
	
            	
            	/s/ Judson Cooper
	 	
              
Judson
              Cooper
	 	Employee

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