Document:

Security Trust Deed

 Exhibit 10.3 
  
 EXECUTION VERSION 
  
 11 February 2005 
  
 SECURITY TRUST DEED 
  
 between 
  
 CONSTAR INTERNATIONAL U.K. LIMITED 
  
 as a Company 
  
 and 
  
 CITICORP USA, INC. 
  
 CITICORP NORTH AMERICA, INC. 
  
 CITIBANK, N.A. 
  
 as Secured Parties 
  
 and 
  
 CITIBANK, N.A., LONDON BRANCH 
 as Security Trustee 
  
 WEIL, GOTSHAL & MANGES 
  
 One South Place London EC2M 2WG 
 Tel: +44 (0) 20 7903 1000 Fax: +44 (0) 20 7903 0990 
  
 www.weil.com 
  

  
 TABLE OF CONTENTS

  

					
	 	  	 	  	Page

	1	  	INTERPRETATION	  	1
			
	2	  	DECLARATION OF TRUST	  	3
			
	3	  	DELEGATION BY SECURITY TRUSTEE	  	3
			
	4	  	INVESTMENT BY SECURITY TRUSTEE	  	3
			
	5	  	APPLICATION OF PROCEEDS	  	3
			
	6	  	SECURITY TRUSTEE’S RIGHTS AND DUTIES	  	4
			
	7	  	ADDITIONAL POWERS	  	9
			
	8	  	APPOINTMENT AND RESIGNATION OF SECURITY TRUSTEES	  	9
			
	9	  	REMUNERATION	  	10
			
	10	  	TRANSFERS	  	12
			
	11	  	REMEDIES, WAIVERS, AMENDMENTS AND CONSENTS	  	12
			
	12	  	PARTIAL INVALIDITY	  	13
			
	13	  	PERPETUITY PERIOD	  	13
			
	14	  	COUNTERPARTS	  	13
			
	15	  	GOVERNING LAW	  	13
			
	16	  	JURISDICTION	  	13
		
	SCHEDULE 1 Form of Accession Undertaking	  	14

  

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 THIS SECURITY TRUST DEED (this “Deed”) is made on 11 February 2005 
  
 AMONG: 
  

	(1)	CONSTAR INTERNATIONAL U.K. LIMITED, a company incorporated under the laws of England and Wales with company number 02407933 (“Constar UK”);

  

	(2)	CITICORP USA, INC. (the “Administrative Agent”); 

  

	(3)	CITICORP USA, INC.; 

  

	(4)	CITICORP NORTH AMERICA, INC. 

  

	(5)	CITIBANK, N.A.; and 

  

	(6)	CITIBANK, N.A., LONDON BRANCH, as trustee for the Secured Parties (the “Security Trustee”), which expression includes all other persons for the time
being the security trustee or trustees for the Secured Parties under this Deed). 

  
 WHEREAS 
  

	(A)	The Companies have granted to the Security Trustee certain security in respect of the Secured Obligations owed by the Companies to the Secured Parties under the Loan
Documents. 

  

	(B)	The Security Trustee has agreed to act as the trustee of the Trust Property under this Deed for the benefit of the Secured Parties upon the terms and conditions contained in
it. 

  

	(C)	The Security Trustee intends this Deed to, and it shall, take effect as a deed. 

  

	1	INTERPRETATION 

  
 1.1 Definitions In this Deed the following terms have the meanings given to them in this Clause 1.1. 
  
 “Accession Undertaking” means an undertaking in the form set out in Schedule
1 (Form of Accession Undertaking) hereto. 
  
 “Companies”
means, collectively, Constar UK and any additional company which becomes a party to this Deed and “Company” shall mean any of them as the context may require. 
  
 “Debenture” means the debenture dated on or about the date of this Deed and made between Constar UK and the Security
Trustee. 
  
 “Exposure” means at any time in relation to a
Secured Party all amounts which are owing, actually or contingently, at such time by the Companies to such Secured Party under the Loan Documents, whether or not due. 
  
 “Facility Agreement” means the facility agreement dated on or about the date of this Deed between the Borrower, the
Lenders, Citicorp USA, Inc. as administrative agent and the Security Trustee. 
  

 “Trust Property” means: 
  

	(a)	all assets and rights from time to time transferred, mortgaged, charged, assigned to and/or vested in the Security Trustee under or in connection with any UK Security
Document; 

  

	(b)	the security interests from time to time constituted by or pursuant to or evidenced by the UK Security Documents; 

  

	(c)	all representations, obligations, covenants, warranties or other contractual provisions in favour of the Security Trustee (other than any made or granted solely for its own
benefit) made or granted in or pursuant to any of the UK Security Documents; 

  

	(d)	all sums received or recovered by the Security Trustee under, pursuant to or in connection with this Deed and/or any UK Security Document or the exercise of any of the
Security Trustee’s powers under or in connection therewith and which are required to be held by the Security Trustee upon trust on the terms of this Deed and/or any UK Security Document; and 

  

	(e)	all income and other sums at any time received or receivable by the Security Trustee in respect of the Trust Property (or any part thereof). 

  
 “UK Security Documents” means this Deed, the Debenture and any other
document entered into from time to time by any of the Companies pursuant to which each such Company undertakes a liability to the Security Trustee as security trustee for the Secured Parties in respect of any of the Secured Obligations or which
creates or evidences a security interest in favour of the Security Trustee as security trustee for the Secured Parties over any of the assets of such Company as security for any of the Secured Obligations or which creates or evidences any right or
interest related thereto. 
  
 “VAT” means value added tax as
provided for in the Value Added Tax Act 1994 and any other tax of a similar nature. 
  
 1.2 Interpretation 
  

	(a)	Unless otherwise defined in this Deed, terms defined and references construed in the Facility Agreement or the Debenture have the same meanings in this Deed and the
construction rules set out in Section 1.5 (Certain Terms) of the Facility Agreement shall apply to this Deed as though they were set out in full in this Deed except that references to “this Agreement” shall be construed as
references to this Deed. The Administrative Agent undertakes to deliver a copy of any amendment to the Facility Agreement to the Security Trustee and unless and until the Security Trustee receives such amendment, it shall be entitled to assume that
no such amendment has been made. 

  

	(b)	The terms of the other Loan Documents and of any side letters between the parties thereto in relation to the Loan Documents are incorporated into this Deed to the extent
required for any purported disposition of the Trust Property to be a valid disposition in accordance with Section 2(1) of the Law of Property (Miscellaneous Provisions) Act 1989. 

  
 1.3 Third Party Rights A person who is not a party to this Deed has no rights
under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Deed. 
  
 1.4 Effect as a Deed This Deed is intended to take effect as a deed notwithstanding the fact that a party may only execute this Deed under hand. 
  

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	2	DECLARATION OF TRUST 

  
 The Security Trustee declares that it shall hold the Trust Property on trust for the Secured Parties on the terms contained in this Deed. Each of the parties to this Deed
agrees that the Security Trustee shall have those duties, obligations and responsibilities expressly specified in this Deed and the UK Security Documents (and no others shall be implied) and, without limiting the foregoing, each of the Secured
Parties authorises, ratifies, confirms and approves the Security Trustee’s entering into the Debenture. In exercising its rights, powers and discretions under the UK Security Documents, the Security Trustee shall act subject to and in
accordance with this Deed. If there is any conflict between the provisions of this Deed and the other UK Security Documents, the provisions of this Deed shall prevail. The rights, power and discretions conferred upon the Security Trustee by this
Deed shall be supplemental to the Trustee Act 1925 and the Trustee Act 2000 and in addition to any which may be vested in the Security Trustee by general law or otherwise. 
  

	3	DELEGATION BY SECURITY TRUSTEE 

  
 The Security Trustee may at any time and from time to time upon notice to the Administrative Agent delegate by power of attorney or in any other manner to any person or
persons all or any of the rights, powers and discretions which are for the time being exercisable by the Security Trustee under this Deed or any of the UK Security Documents. Any such delegation may be made upon such terms and conditions (including
power to sub-delegate) as the Security Trustee may think fit. The Security Trustee shall not be in any way liable or responsible to the Companies, any Secured Party or any other person for any claim, loss or damage arising from any act, default,
omission or misconduct on the part of any such delegate or sub-delegate except in the case of fraud, wilful misconduct or gross negligence on the part of the Security Trustee in the appointment of such delegate or sub-delegate. 
  

	4	INVESTMENT BY SECURITY TRUSTEE 

  
 Pending appropriation and distribution under Clause 5 (Application of Proceeds), the Security Trustee shall place any sum received, recovered or held by it in
respect of the Trust Property in a suspense account and shall invest an amount equal to the balance from time to time standing to the credit of that suspense account in any of the investments authorised by paragraph (o) of Clause 6.2
(Supplemental Provisions Relating to Security Trustee) with power from time to time in its absolute discretion to vary any such investments. The income from those investments shall be credited to the relevant suspense account when received by
the Security Trustee. 
  

	5	APPLICATION OF PROCEEDS 

  
 5.1 Order of Application The Security Trustee shall appropriate and distribute all sums received, recovered or held by it in respect of the Trust Property
as set out in Section 2.13 (Payments and Computations) of the Facility Agreement (but without prejudice to the right of the Secured Parties (or any of them) to recover any shortfall from the Companies). 
  
 5.2 Timing of Distributions Distributions by the Security Trustee shall be made
at such times as the Security Trustee in its absolute discretion determines to be as soon as reasonably practical, having regard to all relevant circumstances. 
  

5.3 Distribution Deemed to be Made Gross As between the Secured Parties, a Secured Party shall be deemed to have received from the Security Trustee any
amount which the Security Trustee is at any time required by law to deduct or withhold on account of tax from any 

  

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distribution made by the Security Trustee to that Secured Party under this Deed. However, this shall not prejudice any right which that Secured Party may
have against the Companies under the Loan Documents or any other person (whether under a grossing-up clause or otherwise) but, as between the Secured Parties, any such indebtedness shall rank after all other Secured Obligations. 

 
 5.4 Basis of Distribution For the purpose of any distribution by the
Security Trustee, the Security Trustee may fix a date as at which the amount of the Secured Obligations is to be calculated. Any such date must not be more than 10 days before the proposed date of the relevant distribution. For the purposes of
determining the amount of any payment to be made pursuant to Clause 5.1 (Order of Application) to any Secured Party, the Security Trustee shall be entitled to call for a certificate of the amount, currency and nature of any Secured Obligation
due, owing or incurred to the relevant Secured Party at the date fixed by the Security Trustee for such purpose and as to such other matters as the Security Trustee may deem necessary or desirable to enable it to make a distribution. The Security
Trustee shall be entitled to rely on any such certificate. 
  
 5.5
Unwinding Any appropriation or distribution which later transpires to have been, or is agreed by the Security Trustee to have been, invalid, or which has to be refunded, shall be refunded and shall be deemed never to have been made
provided that the Security Trustee shall be under no obligation to make such repayment or refund unless it has first received the requisite amount from the recipient of such invalid or refundable appropriation or distribution. 
  

	6	SECURITY TRUSTEE’S RIGHTS AND DUTIES 

  
 6.1 Rights and Duties 
  

	(a)	The Security Trustee shall have only those duties, obligations and responsibilities expressly specified in this Deed and the UK Security Documents and shall not have any
implied duties, obligations or responsibilities. In performing or carrying out its duties, obligations and responsibilities, the Security Trustee shall be considered to be acting only in a mechanical and administrative capacity (save as expressly
provided in this Deed or the UK Security Documents) and shall not have or be deemed to have any duty, obligation or responsibility to or relationship of trust or agency with the Companies. 

  

	(b)	The Security Trustee shall act solely in accordance with any instructions given to it by the Administrative Agent and shall assume that (i) any instructions received by it
from the Administrative Agent are duly given by or on behalf of the Secured Parties (or the requisite proportion of them) in accordance with the terms of the Loan Documents and (ii) unless it has received actual written notice of revocation, that
any instructions or directions given by the Administrative Agent have not been revoked and no revocation of any such instructions by the Administrative Agent shall affect any action taken by the Security Trustee in reliance upon such instruction or
direction prior to actual receipt of the notice of revocation. The Security Trustee shall carry out all dealings with the Secured Parties through the Administrative Agent. 

  

	(c)	If the Administrative Agent in issuing any instruction breaches any rights or restrictions set out in the Loan Documents this shall not invalidate the instruction unless the
Administrative Agent informs the Security Trustee in relation to the instruction made or given by it before the Security Trustee commences to act on such instruction that such instruction was invalid and should not be acted on. If the Security
Trustee is so informed after it has commenced to act on an instruction the validity of any action taken shall not be affected but the Security Trustee shall take no further action in accordance with such instruction, except to the extent that it has
become legally obliged to do so; 

  

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	(d)	The Security Trustee shall not be obliged to take any action or proceedings under or in relation to any Loan Document unless it has received a request or instruction from the
Administrative Agent and shall not be responsible for any delay or failure to take any such action or proceedings; 

  

	(e)	The Security Trustee is a party to the UK Security Documents solely for the purpose of being a beneficiary of the Trust Property and the Security Trustee assumes none of the
obligations of the other Secured Parties under the UK Security Documents as a result thereof. 

  
 6.2 Supplemental Provisions Relating to Security Trustee Notwithstanding that the Security Trustee may be entitled to remuneration, the Security Trustee shall have all the rights, powers, discretions,
privileges and immunities which gratuitous trustees have or may have in England and, by way of supplement to the Trustee Act 1925 and the Trustee Act 2000, it is expressly declared as follows: 
  

	(a)	The Security Trustee may execute each of the UK Security Documents and all such further documents as may be approved by the Lenders or the Administrative Agent for execution
by the Security Trustee. 

  

	(b)	The Security Trustee may, acting in good faith, rely on any communication, certificate, legal opinion or other document believed by it to be genuine.

  

	(c)	The Security Trustee may, acting in good faith, rely as to any matter of fact which might reasonably be expected to be within the knowledge of the relevant Company or a
statement by or on behalf of the relevant Company. 

  

	(d)	The Security Trustee may, acting in good faith, accept as sufficient evidence a certificate signed by any person believed by it to be a director or otherwise authorised
officer or agent of the relevant Company to the effect that any particular dealing, transaction, step or thing is, in the opinion of the person so certifying, suitable or expedient or as to any other fact or matter upon which the Security Trustee
may require to be satisfied. The Security Trustee shall be in no way bound to call for further evidence or be responsible for any loss that may be occasioned by acting on any such certificate. 

  

	(e)	The Security Trustee may obtain and pay for such legal or other expert advice or other expert advice or services as it may deem necessary or desirable and rely on any such
advice. In relation to any of the provisions of this Deed, any of the UK Security Documents, or any other agreement, matter or thing relating to any Company or the Trust Property, the Security Trustee may act on the opinion or advice of or any
information obtained from any lawyer, accountant, architect, engineer, surveyor, broker, consultant, valuer or other expert, whether obtained by the Security Trustee or otherwise, and shall not be responsible for any loss occasioned by so acting.

  

	(f)	Any opinion, advice or information referred to in paragraph (e) of this Clause 6.2 (Supplemental Provisions Relating to Security Trustee) above may be sent or obtained
by letter, telex message, facsimile, transmission, cablegram, telephone or any other means. The Security Trustee shall not be liable for acting on any opinion, advice or information purporting to be so conveyed although the same shall contain some
error or shall be authentic. 

  

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	(g)	Subject to the terms of this Deed and the UK Security Documents, the Security Trustee may retain for its own benefit and without liability to account any fee or other sum
receivable by it for its own account. 

  

	(h)	The Security Trustee may accept deposits from, lend money to, provide any advisory or other services to, or engage in any kind of banking or other business with, any Company
or any other Secured Party or, in either case, a subsidiary or associated company of any such person (and, in each case, may do so without liability to account or disclose any such arrangements to any person). 

  

	(i)	The Security Trustee may perform any of its duties, obligations and responsibilities under this Deed or the UK Security Documents by or through any of its personnel and/or
may employ and pay an agent to transact or concur in transacting any business and to do or concur in doing any acts required to be done by the Security Trustee (including the receipt and payment of money). Any agent who is a lawyer, accountant,
architect, auctioneer, engineer, surveyor, broker, consultant, valuer or other person engaged in any profession or business shall be entitled to be paid all usual professional and other charges for business transacted and acts done by him or any
partner or employee of his in connection with the trusts hereof. 

  

	(j)	The Security Trustee may refrain from doing anything which would or might in its opinion be contrary to any law of any applicable jurisdiction or any directive or regulation
of any agency of any state or which would or might otherwise render it liable to any person and may do anything which is, in its absolute discretion, necessary to comply with any such law, directive or regulation. 

  

	(k)	The Security Trustee shall not be liable for any failure, omission or defect in perfecting the security interests created by or pursuant to the UK Security Documents
including without prejudice to the generality of the foregoing: 

  

	 	(i)	failure to obtain any licence, consent or other authority for the execution, delivery, validity, legality, adequacy, performance, enforceability or admissibility in evidence
of any UK Security Document; 

  

	 	(ii)	failure to effect or procure registration of or otherwise protect any of the security interests created by the UK Security Documents by registering under any applicable
registration laws in any territory by any notice, caution, filing, registration or other entry prescribed by or pursuant to the provisions of the said laws; 

  

	 	(iii)	failure to require the deposit with it of any deed or document certifying, representing or constituting the title of any Company to any of the property mortgaged, charged,
assigned or otherwise encumbered by or pursuant to any of the UK Security Documents; or 

  

	 	(iv)	failure to require any further assurances in relation to any of the UK Security Documents. 

  

	(l)	 The Security Trustee may accept without enquiry, requisition, objection or investigation of such title as any Company may have to that part of the assets
belonging to it (or any part thereof) which is the subject matter of this Deed or any of the UK Security Documents and shall not be liable for any failure or omission to ascertain or investigate 

  

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the title of any Company or other person to any asset now or at any time hereafter subject or purporting to be subject to any security interests created by
or pursuant to the UK Security Documents. 

  

	(m)	The Security Trustee and every Receiver, delegate, sub-delegate, attorney, agent or other person appointed under this Deed or any of the UK Security Documents may indemnify
itself or himself out of the Trust Property against all actions, charges, claims, costs, damages, demands, expenses, liability, loss or proceedings which may be brought, made or preferred against or suffered, incurred or sustained by it or him in
relation to, in connection with, or arising out of the entry into, this Deed or any UK Security Document, the taking or holding of any of the guarantees and/or security given or created by or pursuant to the UK Security Documents and/or in the
execution of any right or trust vested in any of them by this Deed or any UK Security Document and/or in respect of any other matter or thing done or omitted to be done in any way relating to this Deed or any UK Security Document and/or acting as
Security Trustee or any such other capacity other than those costs, damages, expenses, liabilities or losses which are directly attributable to the gross negligence or wilful misconduct of such person. 

  

	(n)	The Security Trustee may place any or all title deeds and other documents certifying, representing or constituting the title to any of the assets subject to the security
conferred by the UK Security Documents and for the time being in its hands in any safe deposit, safe or receptacle selected by the Security Trustee or with any banker or banking company or company whose business includes undertaking the safe custody
of documents or any solicitor or firm of solicitors. The Security Trustee may in its absolute discretion make any such arrangements as it thinks fit for allowing any of the Companies or its solicitors or auditors or other advisers access to or
possession of any such title deeds and other documents when necessary or convenient. The Security Trustee shall not be responsible for any loss incurred in connection with any such deposit, access or possession. 

  

	(o)	All moneys which under the trusts contained in this Deed are received or held by the Security Trustee may be invested in the name of or under the control of the Security
Trustee in any investment for the time being authorised by English law for the investment by trustees of trust moneys or by placing the same on deposit in the name of or under the control of the Security Trustee at such bank, financial institution
or company (including the Security Trustee) as the Security Trustee may think fit and the Security Trustee may at any time vary, exchange, transfer or transpose any such investments for or into other such investments. The Security Trustee shall not
be responsible for any loss occasioned thereby, whether by depreciation in value or otherwise. Any investment may, at the discretion of the Security Trustee, be made or retained in the names of nominees. 

  

	(p)	The Security Trustee may refrain from taking any (or any further) action or exercising any right, power or discretion vested in it under this Deed or any UK Security Document
until it has been indemnified and/or secured to its satisfaction against any and all actions, charges, claims, costs, damages, demands, expenses, liabilities, losses and proceedings (including legal, accountants’ and other professional fees)
which might be brought, made or preferred against or suffered, incurred or sustained by it as a result. 

  

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	(q)	Neither the Security Trustee nor any of its personnel or agents makes, or shall at any time be deemed to make, any representation or warranty (express or implied) as to, or
shall be responsible or liable to any person for: 

  

	 	(i)	the adequacy, accuracy or completeness of any representation, warranty, statement or information in this Deed or any other UK Security Document, any notice, report or other
document, statement or information circulated, delivered or made to any Secured Party whether orally or otherwise and whether before, on or after the date of this Deed; 

  

	 	(ii)	the execution, delivery, validity, legality, priority, ranking, adequacy, performance, enforceability or admissibility in evidence of this Deed or any UK Security Document or
any other document referred to in paragraph (a) above or of any security created thereby or any obligations imposed thereby or assumed thereunder; or 

  

	 	(iii)	anything done or not done by it or any of them under or in connection with this Deed or any other UK Security Document or any other notice or document save in the case of its
or their own gross negligence or wilful misconduct. 

  

	(r)	The Security Trustee may upon a disposal to any third party of any property the subject of any of the security interests created under any of the UK Security Documents by any
Receiver, or by any Company where the Security Trustee has consented to the disposal, release such property from such security. 

  
 6.3 No Duty to Enquire The Security Trustee may assume without enquiry that each Company and/or each other person is duly performing and observing and/or,
as the case may be, is in compliance with all the representations, warranties, undertakings, covenants, conditions, provisions and obligations contained in any UK Security Document on its part to be performed, observed or complied with and that no
Event of Default or the like has occurred unless an officer of the Security Trustee (while active on matters relating to the Companies) acquires actual knowledge to the contrary and that if the Security Trustee receives any instructions or
directions from the Administrative Agent to take any action in relation to the Trust Property, it may assume that all applicable conditions under the Loan Documents for taking that action have been satisfied. 
  
 6.4 No Duty to Collect Payments The Security Trustee shall not have any duty to
ensure that any payment or other financial benefit in respect of any of the Trust Property is duly and punctually paid, received or collected as and when the same becomes due and payable or to secure that the correct amounts (if any) are paid or
received or to ensure the taking up of any (or any offer of any) stocks, shares, rights, moneys or other property paid, distributed, accruing or offered at any time by way of interest, dividend, redemption, bonus, rights, preference, option, warrant
or otherwise on, or in respect of or in substitution for any of the Trust Property. 
  
 6.5 Indemnity to Security Trustee To the extent that any Company does not do so on demand or is not obliged to do so, each Secured Party shall indemnify the Security Trustee in the proportion which its Exposure bears to the
aggregate Exposures of all the Secured Parties for the time being (or, if the Exposures of each of the Secured Parties are zero, immediately prior to their being reduced to zero) against any action, charge, claim, cost, damage, demand, expense,
liability, loss or proceeding or sustained or incurred by the Security Trustee in complying with any instructions from the Lenders (via the Administrative Agent) or otherwise sustained or incurred by the Security Trustee in connection with this Deed
or any UK Security Document or its rights, powers, discretions, duties, obligations and responsibilities under any such document except to the extent that they are attributable to the gross negligence or wilful default of the Security Trustee.

  

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 6.6 Security Trustee as a Secured Party Notwithstanding that the Security Trustee is also a Secured Party,
the Security Trustee shall be entitled to take, or refrain from taking, in any capacity any action which it would be entitled to take, or refrain from taking, in that capacity if it were not acting in any other capacity. The Security Trustee may
enter into any banking, financial or business contracts or any other transactions or arrangements with any of the Companies, the Secured Parties, or any other party to any UK Security Document, or any subsidiary, holding company or associated
company thereof, (whether in relation to the Secured Obligations or in any other manner whatever) or in relation to the Trust Property. The Security Trustee shall not be required to disclose any such contract, transaction or arrangement to any of
the Secured Parties and shall be in no way accountable to any of the Companies or (save as otherwise provided in this Deed) to any of the Secured Parties for any profits or benefits arising from any such contract or transaction or from any contract
of loan or deposit or any other contract or transaction or arrangement which any person not being a trustee of this Deed could or might have entered into with any of the Companies or any other party to any UK Security Document, or any subsidiary,
holding company or associated company thereof, or in relation to the Trust Property. 
  

	7	ADDITIONAL POWERS 

  
 The rights and trusts conferred upon the Security Trustee by this Deed and the UK Security Documents shall be in addition to any which may from time to time be vested in
the Security Trustee by the general law. 
  

	8	APPOINTMENT AND RESIGNATION OF SECURITY TRUSTEES 

  
 8.1 Appointment The statutory power to appoint new or additional trustees shall be vested in the Security Trustee. 
  
 8.2 Separate Security Trustees At any time or times (whether for the purposes
of conforming to any legal requirements, restrictions or conditions in any jurisdiction in which any particular act or acts are to be performed or for any other purpose or reason whatsoever), the Security Trustee shall have power to appoint any
person to act either as separate trustee, or as co-trustee jointly with the Security Trustee, with (subject to the provisions of this Deed) such of the rights, powers and discretions (including the right to reasonable remuneration and indemnity),
duties and obligations vested in the Security Trustee by this Deed or any UK Security Document as shall be conferred or imposed by the instrument of its or his appointment. The Security Trustee shall have power to remove any such separate trustee or
co-trustee. Any such separate trustee or co-trustee shall be entitled to all rights, powers and discretions as are conferred on it or him by the Security Trustee by the instrument of its or his appointment. Such reasonable remuneration as the
Security Trustee may pay to such person, together with any attributable reasonable costs, charges, losses, expenses and other reasonable sums expended, paid, incurred or debited in account in performing its or his function as such separate trustee
or co-trustee, shall for the purposes of this Deed be treated as expended, paid, incurred or debited in account by the Security Trustee. 
  
 8.3 Resignation of Security Trustees 
  

	(a)	Subject to this Clause 8.3, the Security Trustee may resign its appointment under this Deed at any time without assigning any reason therefor by giving not less than 30
days’ prior written notice to that effect to the Administrative Agent and the Lenders and the Companies. 

  

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	(b)	Subject to the prior satisfaction of the conditions set out in Clause 8.3(c), the resignation of the Security Trustee and appointment of a successor Security Trustee shall
take effect upon the appointment of such successor Security Trustee pursuant to a deed of appointment duly executed and delivered by each party thereto, whereupon: 

  

	 	(i)	the retiring Security Trustee shall cease to be a party to the Loan Documents in its capacity as such and shall be discharged from any further obligation thereunder (but
without prejudice to any liabilities accrued thereunder but unperformed by the retiring Security Trustee) but shall remain entitled to the benefit of this Deed; and 

  

	 	(ii)	the successor Security Trustee and each other party to the Loan Documents shall have the same rights and obligations amongst themselves as they would have had if the
successor Security Trustee had been a party thereto in place of the retiring Security Trustee. 

  
 The retiring Security Trustee shall make available to the successor Security Trustee all records and documents held by it as Security Trustee, and shall
co operate with the successor Security Trustee in order to ensure an orderly transition. 
  

	(c)	The Security Trustee shall not be entitled to resign unless and until: 

  

	 	(i)	all deeds and documents have been executed and all acts and things have been done which are necessary to transfer and vest in the successor Security Trustee all the rights,
interests and obligations of the Security Trustee under the Loan Documents; and 

  

	 	(ii)	the Lenders are satisfied that the Security continues or will continue to constitute perfected and enforceable interests in favour of the successor Security Trustee,

  
 and each of the Companies shall execute and
deliver all deeds and documents and do all acts and things as the Lenders, the retiring Security Trustee or the successor Security Trustee may require in relation to the appointment of the successor Security Trustee provided that the Companies shall
not be required to enter into any documents which contain terms more onerous than the terms contained within this Deed. 
  

	(d)	The successor Security Trustee shall promptly notify the other parties of its appointment. 

  

	(e)	The Companies shall pay to the successor Security Trustee reasonable remuneration. 

  
 8.4 Survival of Provisions If a successor to the Security Trustee is appointed under the provisions of Clause 8.2 (Separate
Security Trustees), the retiring Security Trustee shall be discharged from any further obligations hereunder but shall remain entitled to the benefits of the provisions of Clause 6 (Security Trustee’s Rights and Duties), this Clause
8 and Clause 9 (Remuneration). 
  

	9	REMUNERATION 

  
 9.1 
  

	(a)	 In the event of the occurrence of (i) an Event of Default which is continuing or (ii) the Security Trustee considering it necessary or expedient or (iii)
being requested by a Company or any of the other Secured Parties to undertake duties which the Security 

  

 10 

	 	 
Trustee deems to be of an exceptional nature and/or outside the scope of the normal duties of the Security Trustee under the Loan Documents, the Companies
shall pay to the Security Trustee any additional remuneration (together with any applicable VAT) as may be agreed between them. 

  

	(b)	If the Security Trustee and the Companies fail to agree upon whether such duties are of an exceptional nature or otherwise outside the scope of the normal duties of the
Security Trustee under the Loan Documents or upon any additional remuneration, that dispute shall be determined by a investment bank (acting as an expert and not as an arbitrator) selected by the Security Trustee and approved by the Companies or,
failing approval, nominated (on the application of the Security Trustee ) by the President for the time being of the Law Society of England and Wales (the costs and expense of the nomination and of the investment bank being payable by the Companies)
and the determination of any investment bank shall be final and binding upon the parties to this Deed. 

  
 9.2 Each of the Companies shall, from time to time on demand of the Security Trustee, reimburse the Security Trustee for all costs and expenses (including
reasonable legal fees) together with any applicable VAT incurred by the Security Trustee and any Receiver in connection with: 
  

	(a)	the negotiation, preparation and execution of this Deed and the UK Security Documents and the completion of the transactions and perfection of the Collateral contemplated in
the UK Security Documents; and 

  

	(b)	the exercise, preservation and/or enforcement of any of the rights, powers and remedies of or the performance of the duties of the Security Trustee or any Receiver of the
Security and any proceedings instituted by or against the Security Trustee and/or any Receiver as a consequence of taking or holding the Collateral or of enforcing those rights, powers and remedies (on a full indemnity basis).

  
 9.3 The Companies shall jointly and severally pay all
stamp, registration, notarial and other Taxes or fees paid or payable by the Security Trustee in connection with any action taken or contemplated by or on behalf of the Security Trustee for enforcing or resolving any doubt concerning, or for any
other purpose in relation to this Deed or the other UK Security Documents and shall, from time to time, indemnify the Security Trustee on demand against any liabilities, costs, claims and expenses resulting from any failure to pay or any delay in
paying any Tax or fee. 
  
 9.4 The Companies shall jointly and severally,
as a separate and independent obligation and notwithstanding any release or discharge of all or any part of the security constituted by the UK Security Documents, indemnify the Security Trustee and every Receiver or any person appointed by them
under this Deed or any other UK Security Document (and their respective officers and employees) against all costs, claims, losses, expenses (including reasonable legal fees) and liabilities (together with any applicable VAT), whether or not
reasonably foreseeable, incurred by any of them in relation to or arising out of; 
  

	(a)	any failure by any of the Companies to comply with obligations under this Clause 9, 

  

	(b)	the taking, holding, protection or enforcement of the security constituted by the UK Security Documents, 

  

 11 

	(c)	the exercise of any of the rights, powers, discretions and remedies vested in any of them by the Loan Documents or by law, 

  

	(d)	any default by any Company in the performance of any of the obligations expressed to be assumed by it in the Loan Documents, and 

  

	(e)	which otherwise relate to any of the security constituted by the UK Security Documents or the performance of the terms of this Deed or exercise of any of the rights, powers,
discretions and remedies conferred on such parties by this Deed or any other Loan Document (otherwise than as a result of its gross negligence or wilful misconduct). 

  
 9.5 The Security Trustee may, in priority to any payment to the other Secured Parties, indemnify itself out of the assets the subject
of any security constituted by the UK Security Documents in respect of, and pay and retain, all sums necessary to give effect to the indemnity in Clause 9.5 from the Companies and shall have a lien on such assets and the proceeds of the enforcement
of the security in respect thereof for all moneys payable to it under this Clause. 
  
 9.6 Unless otherwise specifically stated in any discharge of this Deed the provisions of this Clause 9 shall continue in full force and effect notwithstanding such discharge. 
  

	10	TRANSFERS 

  
 10.1 Transfers by Secured Parties This Deed shall benefit the Security Trustee, each other Secured Party and each of their respective successors and permitted assigns and transferees. Any reference to
any Secured Party or the Security Trustee shall be read and construed accordingly. 
  
 10.2 Accession to this Deed The parties hereto confirm that any person becoming a Lender in accordance with the terms and conditions of the Facility Agreement, shall be entitled to the benefits of the provisions contained
herein as if originally named a party hereto. In addition, each party hereto (including parties subsequently becoming bound by this Deed) irrevocably authorises the Security Trustee to agree on its behalf with any other person intended to become a
party hereto as a Secured Party to the execution of an Accession Undertaking so as to make such person a party to this Deed as a Secured Party. The parties hereto further agree that this authorisation is given to secure the interests of the parties
under this Deed and is accordingly irrevocable. 
  
 10.3 Recognition of
Transfers and Transferees The Security Trustee shall not be required to recognise any transfer or transferee which does not comply with the requirements of this Clause 10 (Transfers). 
  

	11	REMEDIES, WAIVERS, AMENDMENTS AND CONSENTS 

  
 11.1 No Implied Waivers, Remedies Cumulative Except as otherwise provided in this Deed, all rights, powers and discretions of the Security Trustee may be
exercised at any time and from time to time at the absolute discretion of the Security Trustee. No failure on the part of the Security Trustee to exercise, and no delay on its part in exercising, any right, power or discretion under this Deed
or any UK Security Document will operate as a waiver thereof, nor will any single or partial exercise of any right, power or discretion preclude any other or further exercise thereof or the exercise of any other right, power or discretion. The
rights and remedies provided in this Deed and the UK Security Documents are cumulative and not exclusive of any rights or remedies provided by law. 
  

 12 

 11.2 Amendments, Waivers and Consents Any provision of this Deed and the other UK Security Documents may be
amended, released or a waiver given in respect of it only if the Companies and the Requisite Lenders so agree in writing. Any such waiver, release and any consent or approval by the Security Trustee under this Deed or the other UK Security
Documents, shall not be effective unless it is in writing, may be given subject to any conditions thought fit by the person(s) giving it may be withdrawn or modified at any time, and shall be effective only in the instance and for the purpose for
which it is given. 
  
 11.3 Determinations Any determination by the
Security Trustee pursuant to this Deed shall be conclusive in the absence of manifest error. 
  

	12	PARTIAL INVALIDITY 

  
 The illegality, invalidity or unenforceability of any provision of this Deed under the law of any jurisdiction shall not affect its legality, validity or enforceability
under the law of any other jurisdiction nor the legality, validity or enforceability of any other provision. 
  

	13	PERPETUITY PERIOD 

  
 The perpetuity period for each trust created by this Deed shall be eighty years from the date of this Deed. 
  

	14	COUNTERPARTS 

  
 This Deed may be executed in any number of counterparts, each of which when executed and delivered constitutes an original of this Deed, but all the counterparts shall together constitute one and the same agreement.

  

	15	GOVERNING LAW 

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

	16	JURISDICTION 

  

	16.1 	Jurisdiction of English Courts 

  

	(a)	The courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this Deed (including a dispute regarding the existence, validity
or termination of this Deed and the other UK Security Documents to which a Company is a party). 

  

	(b)	The parties agree that the courts of England are the most appropriate and convenient courts to settle such disputes and accordingly no party shall argue to the contrary.

  

	(c)	This Clause 16.1 is for the benefit of the Secured Parties only. As a result, no Secured Party shall be prevented from taking proceedings relating to such a dispute in any
other court with jurisdiction. To the extent allowed by law, the Secured Parties may take concurrent proceedings in any number of jurisdictions. 

  

IN WITNESS whereof this Deed has been entered into as a deed on the date stated at the beginning. 
  

 13 

  
 SCHEDULE 1 

 
 Form of Accession Undertaking 
  
 To: The Security Trustee, on its own behalf and on behalf of each of the other parties to the
Security Trust Deed referred to below. 
  
 THIS UNDERTAKING is made the
             day of             , [             ] by the new Secured
Party (the “Acceding Secured Party”) in relation to the Security Trust Deed (the “Security Trust Deed”) dated [            ] February 2005 between,
inter alia, the Companies and the Security Trustee. Terms defined in the Security Trust Deed shall bear the same meanings herein. 
  
 In consideration of the Acceding Secured Party being accepted as a Secured Party for the purposes of the Security Trust Deed by the parties thereto as from such date, the
Acceding Secured Party hereby confirms that, as from [date], it intends to be party to the Security Trust Deed as a Secured Party, undertakes to perform all the obligations expressed therein to be assumed by Secured Parties and agrees that it shall
be bound by all the provisions of the Security Trust Deed, as if it had been an original party thereto. 
  
 This Undertaking shall be governed by and construed in accordance with English law. 
  
 Executed as a Deed by: 
  
 [Name of acceding party] 
  
 acting by:
[                                 ] 
  
 in the presence of: 
  
 Name: 
  
 Address: 
  
 Countersigned by the Security Trustee 
  

					
			
	  	 	 	 	  
	 for and on behalf of Date:
	 	 Date:
	 	 

  

 14 

  
 SIGNATORIES

  
 THE COMPANIES 
  

							
	 Executed as a deed by
	 	 	 	 )
	 	 
	CONSTAR INTERNATIONAL U.K.	 	 	 	 )
	 	 
	LIMITED	 	 	 	 )
	 	 /s/ FRANK E. GREGORY

	 acting by
	 	 	 	 )
	 	 Director

	 and
	 	 	 	 )
	 	 
	 	 	 	 	 )
	 	 /s/ I. ATKINSON

	 	 	 	 	 )
	 	Director/Secretary
				
	THE SECURITY TRUSTEE	 	 	 	 	 	 
				
	Executed as a deed by	 	 	 	 )
	 	 
	CITIBANK, N.A.,	 	 	 	 )
	 	 
	LONDON BRANCH	 	 	 	 )
	 	 /s/ DAVID JAFFE

	 acting by
	 	 	 	 )
	 	 Title:

	 and
	 	 	 	 )
	 	 
	 	 	 	 	 )
	 	 
	 	 	 	 	 )
	 	 Title:

				
	THE SECURED PARTIES	 	 	 	 	 	 
				
	Executed as a deed by	 	 )
	 	 	 	 
	CITICORP USA, INC.	 	 )
	 	 	 	 
	as Swing Loan Lender	 	 )
	 	 	 	 
	acting by its attorney	 	 )
	 	 	 	 
	in the presence of:	 	 )
	 	 	 	 
				
	Executed as a deed by	 	 )
	 	 	 	 
	CITICORP USA, INC.	 	 )
	 	 	 	 /s/ David Jaffe

	 as Lender
	 	 )
	 	 	 	 Title:

	acting by its attorney	 	 )
	 	 	 	 
	in the presence of:	 	 )
	 	 	 	 Title:

  

 SIGNATURE PAGE 1 OF 2 TO THE
SECURITY TRUST DEED 

							
	Executed as a deed by	 	 )
	 	 	 	 
	CITICORP NORTH	 	 )
	 	 	 	 
	AMERICA, INC.	 	 )
	 	 	 	 
	as Lender	 	 )
	 	 	 	 Title:

	acting by its attorney	 	 )
	 	 	 	 
	in the presence of:	 	 )
	 	 	 	 Title:

				
	ADMINISTRATIVE AGENT	 	 	 	 	 	 
				
	Executed as a deed by	 	 	 	 )
	 	 
	CITICORP USA, INC.	 	 	 	 )
	 	 
	 as Administrative Agent
	 	 	 	 )
	 	 Title:

	 acting by its attorney
	 	 	 	 )
	 	 
	 in the presence of:
	 	 	 	 )
	 	 Title:

	 	 	 	 	 )
	 	 
				
	ISSUER	 	 	 	 	 	 
				
	Executed as a deed by	 	 	 	 )
	 	 
	CITIBANK N.A.	 	 	 	 )
	 	 
	 as Issuer
	 	 	 	 )
	 	 Title:

	acting by its attorney	 	 	 	 )
	 	 
	in the presence of:	 	 	 	 )
	 	 
	 	 	 	 	 )
	 	 Title:

  

 SIGNATURE PAGE 2 OF 2 TO THE
SECURITY TRUST DEEDDebenture dated as of February 11,2005

 Exhibit 10.4 
  
 EXECUTION VERSION 
  
 11 February 2005 
  
 DEBENTURE 
  
 between 
  
 CONSTAR INTERNATIONAL U.K. LIMITED 
 as Chargor 
  
 and 
  
 CITIBANK, N.A., LONDON BRANCH 
 as
Security Trustee 
  
 This Debenture is entered into subject to
and with the benefit of the terms of a Security Trust 
 Deed (as defined herein) 
  
 WEIL, GOTSHAL & MANGES 
  
 ONE SOUTH PLACE LONDON EC2M 2WG 
 020 7903 1000 
 WWW.WEIL.COM 

 

  
 TABLE OF CONTENTS

  

					
	 	  	 	  	Page

	1	  	INTERPRETATION	  	1
			
	2	  	COVENANT TO PAY	  	4
			
	3	  	CREATION OF FIXED SECURITY	  	4
			
	4	  	ASSIGNMENTS	  	7
			
	5	  	FLOATING CHARGE	  	8
			
	6	  	CONTINUING SECURITY	  	9
			
	7	  	REPRESENTATIONS AND WARRANTIES	  	12
			
	8	  	UNDERTAKINGS OF CHARGOR	  	14
			
	9	  	PROVISIONS RELATING TO SHARES	  	17
			
	10	  	ACCOUNT BANK	  	19
			
	11	  	ENFORCEMENT OF SECURITY	  	20
			
	12	  	RECEIVER	  	21
			
	14	  	POWER OF ATTORNEY	  	24
			
	15	  	DELEGATION	  	24
			
	16	  	NO LIABILITY AS MORTGAGEE IN POSSESSION	  	24
			
	17	  	PROTECTION OF THIRD PARTIES	  	25
			
	18	  	STAMP DUTIES	  	25
			
	19	  	ADDITIONAL PROVISIONS	  	25
			
	20	  	REMEDIES AND WAIVERS	  	26
			
	21	  	NOTICES	  	26
			
	22	  	COSTS AND EXPENSES	  	27
			
	23	  	CURRENCY OF ACCOUNT	  	27
			
	24	  	ASSIGNMENTS, ETC.	  	28
			
	25	  	SET-OFF	  	28
			
	26	  	COVENANT TO RELEASE	  	28
			
	27	  	GOVERNING LAW	  	29
			
	28	  	JURISDICTION OF ENGLISH COURTS	  	29
			
	29	  	COUNTERPARTS AND EFFECTIVENESS	  	29
		
	SCHEDULE 1 PART I INTELLECTUAL PROPERTY RIGHTS	  	30

  

 i 

  
 TABLE OF CONTENTS

  
 (continued) 
  

			
	 	  	Page

	 SCHEDULE 1 PART II CHARGED SHARES
	  	31
		
	 SCHEDULE 2 NOTICE OF ASSIGNMENT OF INSURANCES PART I FORM OF NOTICE OF ASSIGNMENT OF INSURANCES
	  	32
		
	 SCHEDULE 2 NOTICE OF ASSIGNMENT OF INSURANCES PART II FORM OF ACKNOWLEDGEMENT OF ASSIGNMENT OF INSURANCES
	  	34
		
	 SCHEDULE 3 NOTICE TO ACCOUNT BANK PART I FORM OF NOTICE OF CHARGE OVER BANK ACCOUNTS
	  	35
		
	 SCHEDULE 3 NOTICE TO ACCOUNT BANK PART II FORM OF ACKNOWLEDGEMENT OF CHARGE OVER BANK ACCOUNTS
	  	37
		
	 SCHEDULE 4 NOTICE OF ASSIGNMENT OF MATERIAL CONTRACT PART I FORM OF NOTICE OF ASSIGNMENT
	  	39
		
	 SCHEDULE 4 NOTICE OF ASSIGNMENT OF MATERIAL CONTRACT PART II FORM OF ACKNOWLEDGEMENT OF ASSIGNMENT OF MATERIAL CONTRACTS
	  	41
		
	 SIGNATORIES
	  	42

  

 ii 

 THIS DEBENTURE (this “Debenture”) is made as a deed on the 11th day of February 2005 

 
 BETWEEN: 
  

	(1)	CONSTAR INTERNATIONAL U.K. LIMITED, a company incorporated under the laws of England and Wales with registered number 02407933 (the “Chargor”); and

  

	(2)	CITIBANK, N.A., LONDON BRANCH, acting as trustee for the Secured Parties pursuant to the terms of the Security Trust Deed (together with its successors and assigns,
the “Security Trustee”). 

  
 WHEREAS:

  

	(A)	The Secured Parties have entered into the Facility Agreement pursuant to which Loans and other financial accommodations will be made available to the Borrower subject to
certain conditions, one of which is that the Chargor enter into this Debenture. 

  

	(B)	The Sole Director of the Chargor is satisfied that the Chargor will receive direct and indirect economic benefits from the loans and other extensions of credit under the
Facility Agreement and that entering into the Guaranty and this Debenture is for the purposes and to the benefit of the Chargor and its business. 

  

	(C)	The Security Trustee and the Chargor intend this Debenture to, and it shall, take effect as a deed. 

  

	(D)	The Security Trustee is holding the benefit of this Debenture on trust for the Secured Parties in accordance with the terms of the Security Trust Deed.

  

	1	INTERPRETATION 

  
 1.1 Definitions In this Debenture the following terms have the meanings given to them in this Clause 1.1, except where the context otherwise requires.

  
 “Account Bank” means such bank or financial institution with
which the Security Accounts are from time to time maintained pursuant to Clause 10 (Account Bank). 
  
 “Charged Assets” means all the assets, rights and property of the Chargor which are the subject of any security constituted or intended to be constituted by this Debenture. 
  
 “Collateral Account” means each account maintained from time to time by the
Chargor for the purposes of Clause 8.5(a) (Book Debts and Receipts) at such branch of the Account Bank as the Security Trustee may from time to time approve (acting reasonably). 
  
 “Default Interest” is the rate of interest as set out in Section 2.10(c) (Default Interest) of the Facility
Agreement. 
  
 “Excluded Property” has the meaning given to it in
Clause 3.2 (Material Contracts Containing Prohibition on Charging). 
  

 “Facility Agreement” means the credit agreement dated on or about the date hereof among the Borrower,
the original lenders and issuers party thereto and Citicorp USA, Inc. as agent for the lenders and issuers party thereto. 
  
 “Financial Collateral Assets” means the Shares, the Related Rights, the Security Collateral and all moneys standing from time to time to the credit of
each Security Account in each case mortgaged or charged under this Debenture. 
  
 “Financial Collateral Regulations” means the Financial Collateral Arrangements (No. 2) Regulations 2003 (SI 2003 No. 3226). 
  
 “First Mortgage Collateral” has the meaning given to it in the Intercreditor Agreement. 
  
 “Floating Charge Assets” has the meaning given to it in Clause 5.1 (Creation of Floating Charge). 
  
 “Insurances” means all contracts and policies of insurance (including, for
the avoidance of doubt, all cover notes) of whatever nature which are, from time to time, taken out by or on behalf of the Chargor or (to the extent of such interest) in which the Chargor has an interest (and including key man policies) other than
those directly relating to the First Mortgage Collateral. 
  
 “Intellectual Property Rights” means all know-how, patents, trade marks, service marks, designs, utility models, business names, domain names, topographical or similar rights, copyrights (including rights in computer
software), moral rights, inventions, confidential information and other intellectual property monopoly rights and all interests (including by way of licence) subsisting anywhere in the world in any of the foregoing (in each case whether registered
or not and including all applications for the same) other than those directly relating to the First Mortgage Collateral. 
  
 “Issuer” means each company listed in Part II (Charged Shares) of Schedule 1 hereto. 
  
 “Material Contracts” means: 
  

	(a)	the Sale and Purchase Agreement dated 1 December 2004 between the Chargor and Britvic Soft Drinks Limited in relation to the Britvic Huddersfield plant;

  

	(b)	the Sale and Purchase Agreement dated 1 December 2004 between the Chargor and Britvic Soft Drinks Limited in relation to the Britvic Rugby plant; 

  

	(c)	the Supply Agreement dated 27 February 2002 between Coca-Cola Enterprises Limited and the Chargor; 

  

	(d)	the Supplemental Letter Agreement dated 7 December 2001 between Cott Beverages Limited and the Chargor to the Asset Sale Agreement, Supply Agreement and Marketing Support
Agreement; and 

  

	(e)	Sale and Purchase Letter Agreement dated 13 October 2004 between Coca-Cola Enterprises Limited, the Chargor and Constar International Holland (Plastics) B.V.

  
 and any other agreement that the Security Trustee in its good
faith judgment deems to be material. 
  

 2 

 “Realisations Accounts” means each account maintained from time to time by the Security Trustee for the
purposes of Clause 11.5 (Contingencies) at such branch of the Account Bank as the Security Trustee may from time to time approve. 
  
 “Receiver” means a receiver and manager or other receiver, in either case, appointed pursuant to this Debenture. 
  
 “Related Rights” means: 
  

	(a)	any dividend or interest paid or payable in relation to any of the Shares; 

  

	(b)	any stock, shares, securities, rights, moneys or property accruing or offered at any time, (whether by way of redemption, substitution, exchange, bonus or preference, under
option rights or otherwise) to or in respect of any of the Shares or in substitution or exchange for or otherwise derived from any of the Shares; and 

  

	(c)	any dividend, interest or other income in respect of any asset referred to in paragraph (b) above. 

  
 “Secured Obligations” has the meaning set out in the Facility Agreement, PROVIDED THAT no obligation or liability shall be
included in the definition of “Secured Obligations” to the extent that, if it were so included, this Debenture (or any part thereof) would constitute unlawful financial assistance within the meaning of Sections 151 and 152 of the Companies
Act 1985. 
  
 “Security Accounts” means the Collateral Accounts
and the Realisations Accounts. 
  
 “Security Collateral” has the
meaning set out in Clause 3.1(a)(iii)(Fixed Charges). 
  
 “Security
Period” means the period beginning on the date of this Debenture and ending on the date upon which the Security Trustee is satisfied that: 
  

	(a)	no Secured Party is under any commitment, obligation or liability (whether actual or contingent) to make Loans or provide other financial accommodation to the Borrower under
any of the Loan Documents; and 

  

	(b)	all the Secured Obligations have been unconditionally and irrevocably paid and discharged in full in cash or the security interests contemplated to be created hereby have
been unconditionally and irrevocably released and discharged in full. 

  
 “Security Trust Deed” means the security trust deed dated on or about the date hereof between, inter alios, the Security Trustee, the Lenders named therein from time to time and the Chargor. 
  
 “Shares” means the shares (if any) specified in Part II (Charged
Shares) of Schedule 1 hereto. 
  
 1.2 Interpretation 

  

	(a)	 Unless expressly defined in this Debenture, capitalised terms defined in the Facility Agreement or in the Security Trust Deed have the same meanings in this
Debenture and the construction rules set out in Section 1.5 (Certain Terms) of the Facility 

  

 3 

 
Agreement shall apply to this Debenture as though they were set out in full in this Debenture except that references to “this Agreement”
shall be construed as references to this Debenture. 
  

	(b)	The terms of the other Loan Documents and of any side letters between the parties hereto in relation to the Loan Documents are incorporated into this Debenture to the extent
required for any purported disposition of the Charged Assets to be a valid disposition in accordance with Section 2(1) of the Law of Property (Miscellaneous Provisions) Act 1989. 

  
 1.3 Certificates A certificate of the Security Trustee or any Secured Party
setting forth the amount of any Secured Obligation due from the Chargor shall be prima facie evidence of such amount in the absence of manifest error. 
  
 1.4 Third Party Rights A person who is not a party to this Debenture has no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any
term of this Debenture. 
  

	2	COVENANT TO PAY 

  
 2.1 Covenant to Pay The Chargor, as primary obligor and not merely as surety, hereby undertakes to the Security Trustee that it will pay or discharge each of the Secured Obligations when due and payable
in the manner provided for in the Loan Documents. 
  
 2.2 Default
Interest The Chargor agrees to pay Default Interest on any amount not paid when due under this Debenture (after as well as before judgment) from the due date until the date such amount is unconditionally and irrevocably paid and discharged in
full. 
  
 2.3 Covenant to Make Facility Available For the purposes
of Section 94(1)(c) of the Law of Property Act 1925, each Lender and Issuer, by the Security Trustee’s execution of this Debenture, hereby covenants with and undertakes to the Chargor, to the intent that each such covenant and undertaking shall
be binding on each Lender and Issuer severally in accordance with Article II (The Facility) of the Facility Agreement as if the same applied to this Clause 2.3 mutatis mutandis, that each Lender will perform its obligations under the
Facility Agreement to make the Facility available to the Borrower on and conditional to the terms set forth in the Facility Agreement. 
  

	3	CREATION OF FIXED SECURITY 

  
 3.1 Fixed Charges The Chargor, as continuing security for the payment, discharge and performance of all the Secured Obligations, hereby charges and agrees
to charge in favour of the Security Trustee with full title guarantee in accordance with the Law of Property (Miscellaneous Provisions) Act 1994: 
  

	(a)	by way of first fixed charge: 

  

	 	(i)	 all of the Chargor’s present and future book and other debts, and all other moneys due and owing to the Chargor or which may become due and owing to it
at any time in the future and the benefit of all rights, securities and guarantees of any nature whatsoever now or at any time enjoyed or held by it in relation to any of the foregoing including, in each case, the proceeds of the same, all liens,
reservations of title, rights of tracing and other rights enabling the Chargor to enforce such debts provided that without prejudice to any other 

  

 4 

	 	 
provision of this Clause 3 (including paragraph (a)(ii) hereof) such proceeds shall be released automatically from the fixed charge effected by this
paragraph (i) upon these proceeds being credited to any Realisations Account; 

  

	 	(ii)	all moneys (including interest) from time to time standing to the credit of each of the Chargor’s present and future accounts (including each Security Account) with any
bank, financial institution or other person in any jurisdiction and all rights in relation thereto and the debts represented thereby provided that without prejudice to any other provision of this Clause 3, any monies paid out of such accounts
without breaching the terms of any Loan Document and not paid into another such account in the name of the Chargor shall be released from the fixed charge hereby effected upon the proceeds so being paid out; 

  

	 	(iii)	its present and future interest in all stocks, shares, debentures, notes, bonds, warrants, coupons or other securities and investments now or in the future owned by the
Chargor from time to time together with all Related Rights accruing thereto not charged pursuant to Clause 3.3 (Charge on Shares) (the “Security Collateral”); 

  

	 	(iv)	to the extent not effectively assigned under Clause 4.1 (Assignments) all rights, interests and benefits to and in respect of the Insurances and all claims (and
proceeds thereof) and returns of premiums in respect thereof to which the Chargor is now or may at any future time become entitled; 

  

	 	(v)	(to the extent that the same do not fall within any other sub-paragraph of this paragraph (a) and are not effectively assigned under Clause 4.1 (Assignments)) all of
the Company’s rights and benefits under all Material Contracts; 

  

	 	(vi)	any beneficial interest, claim or entitlement of the Chargor to any assets in any pension fund; 

  

	 	(vii)	the Chargor’s present and future goodwill (including all brand names not otherwise subject to a fixed charge under this Debenture); 

  

	 	(viii)	the benefit of all present and future licences, consents and authorisations (statutory or otherwise) held in connection with the Chargor’s business or the use of any of
the Charged Assets other than those directly relating to the First Mortgage Collateral and the right to recover and receive all compensation which may at any time become payable to it in respect thereof; 

  

	 	(ix)	the Chargor’s present and future uncalled capital; and 

  

	 	(x)	 all the Chargor’s present and future Intellectual Property Rights (including the Intellectual Property Rights, if any, specified in Part I of Schedule 1
(Intellectual Property Rights)), subject to any necessary third party’s consent to such charge being obtained. To the extent that any such Intellectual Property Rights are not capable of being charged (whether by reason of lack of any
such consent as aforesaid or otherwise) and, if the same is required, pending the grant of any such consent as aforesaid or otherwise the charge thereof purported to be effected by this sub-paragraph (xi) shall operate as an 

  

 5 

	 	 
assignment of any and all damages, compensation, remuneration, profit, rent or income which the Chargor may derive therefrom or be awarded or entitled to in
respect thereof, as continuing security for the payment, discharge and performance of the Secured Obligations. 

  
 3.2 Material Contracts Containing Prohibition on Charging 
  

	(a)	Until the relevant consent has been obtained, there shall be excluded from the charge created by Clause 3.1 (Fixed Charges) without prejudice to Clause 4.2
(Non-Assignable Material Contracts), any Material Contract which by its terms either precludes absolutely the Chargor from creating any charge over such Material Contract or requires the consent of any third party prior to the creation of
such Charge, and such consent has not previously been obtained (each an “Excluded Property”). 

  

	(b)	With regard to each Excluded Property the Chargor undertakes to (i) (A) provide the Security Trustee with a list of all consents needed as soon as practicable after the date
hereof and (B) make an application for the consent of the relevant third party to the creation of the charge contained in Clause 3.1 (Fixed Charges) or to be created pursuant to Clause 8.8 (Maintenance of Property) or Clause 13
(Further Assurances) within 14 days of the date hereof, or if later within 14 days of the date on which the obligation to create such charge arises, and (ii) use all reasonable endeavours to obtain such consent as soon as possible and keep
the Security Trustee informed of the progress of the Chargor’s negotiations with each such third party. 

  

	(c)	Forthwith, upon receipt of the relevant third party’s consent as aforesaid, the relevant Excluded Property shall thereupon stand charged to the Security Trustee pursuant
to the terms of Clause 3.1 (Fixed Charges) above. If required by the Security Trustee at any time following receipt of such consent, the Chargor will execute a valid charge or assignment in such form as the Security Trustee shall reasonably
require. 

  
 3.3 Charge on Shares The Chargor, as
continuing security for the payment, discharge and performance of all the Secured Obligations, hereby with full title guarantee: 
  

	(a)	mortgages and charges and agrees to mortgage and charge to the Security Trustee the Shares held now or in the future by it and/or any nominee on its behalf, by way of first
legal mortgage; and 

  

	(b)	mortgages and charges and agrees to mortgage and charge to the Security Trustee the Related Rights held now or in the future by it and/or any nominee on its behalf, by way of
first legal mortgage; and 

  

	(c)	(to the extent they are not effectively mortgaged or charged pursuant to paragraph (a) or (b) above), charges the Shares and the Related Rights held now or in the future by
it and/or any nominee on its behalf, by way of first fixed charge, 

  
 PROVIDED THAT: 
  

	 	(i)	 whilst no Event of Default has occurred which is continuing, the Chargor shall be entitled (notwithstanding the security contemplated to be created hereby)
to 

  

 6 

	 	 
receive all dividends, interest and income from and any property accruing or in respect of the Charged Assets; and 

  

	 	(ii)	whilst no Event of Default has occurred which is continuing, the Chargor shall be entitled (notwithstanding the security contemplated to be created hereby) to exercise, any
voting or other rights attached to any of the Charged Assets, provided that it shall not exercise any voting rights in a manner which would prejudice the security created under this Debenture. 

  
 3.4 Financial Collateral The parties agree and acknowledge that: 
  

	(a)	the Financial Collateral Assets constitute financial collateral, and 

  

	(b)	this Debenture and the obligations of the Chargor under this Debenture are a security financial collateral arrangement, 

  
 (in each case) for the purposes of the Financial Collateral Regulations. 
  

	4	ASSIGNMENTS 

  
 4.1 Assignments Subject to Clause 4.2 (Non-Assignable Material Contracts), the Chargor hereby assigns and agrees to assign to the Security Trustee, with full title guarantee in accordance with the
Law of Property (Miscellaneous Provisions) Act 1994 and as continuing security for the payment, discharge and performance of all Secured Obligations: 
  

	(a)	all of its rights, title, interests (if any) to all proceeds of the Insurances received by the Chargor; and 

  

	(b)	(to the extent the same do not fall within any other provision of this Clause 4 or within the definition of Excluded Property) all of its rights, title, interest and benefits
under the Material Contracts, any letters of credit issued in its favour and all bills of exchange and other negotiable instruments held by it, 

  
 in each case, together with the benefit of all powers and remedies for enforcing the same. 
  
 4.2 Non-Assignable Material Contracts To the extent that any such right, title and interest described in Clause 4.1(b)
(Assignments) is not assignable or capable of assignment: 
  

	(a)	the assignment purported to be effected by Clause 4.1(b) (Assignments) shall operate as an assignment of any and all damages, compensation, remuneration, profit, rent
or income which the Chargor may derive therefrom or be awarded or entitled to in respect thereof, with full title guarantee as continuing security for the payment, discharge and performance of the Secured Obligations; and 

 

	(b)	the Chargor shall hold the benefit of any such right, title and interest on trust for the Security Trustee. 

  

 7 

 4.3 Insurances and Material Contracts Whilst no Event of Default has occurred which is continuing (and
subject always to the terms of the Facility Agreement): 
  

	(a)	the Chargor may exercise its rights under the Insurances and the Material Contracts, provided that the exercise of those rights in the manner proposed would not result in a
Default; and 

  

	(b)	any payments received by the Chargor under or in respect of the Material Contracts shall be paid by the Chargor into a Collateral Account and be subject to the provisions of
Clause 8.5 (Book Debts and Receipts) pending application in accordance with the terms of this Debenture. 

  

	5	FLOATING CHARGE 

  
 5.1 Creation of Floating Charge The Chargor, as owner with full title guarantee in accordance with the Law of Property (Miscellaneous Provisions) Act 1994 and by way of a first floating charge, charges
in favour of the Security Trustee (as trustee for the Secured Parties) as continuing security for the payment, discharge and performance of the Secured Obligations, all its undertaking, property, assets and rights (for the avoidance of doubt
including, without limitation, all inventory, work in progress, raw materials, investment property and instruments) whatsoever and wheresoever both present and future to the extent such assets have not otherwise been validly and effectively
mortgaged or charged pursuant to Clause 3 (Creation of Fixed Security) or Clause 4 (Assignments) (the “Floating Charge Assets”) provided that such Floating Charge Assets shall not include any First Mortgage Collateral.

  
 5.2 Conversion of Floating Charge 
  

	(a)	Notwithstanding anything expressed or implied in this Debenture, the Security Trustee may, by notice to the Security Trustee, convert the floating charge created by Clause
5.1 (Creation of Floating Charge) with immediate effect into a fixed charge as regards all or any of the Floating Charge Assets specified in such notice if: 

  

	 	(i)	an Event of Default has occurred and is continuing; 

  

	 	(ii)	the Chargor creates or attempts to create any Lien over all or any of the Floating Charge Assets save as permitted by the Facility Agreement; 

  

	 	(iii)	the Security Trustee considers such Floating Charge Assets to be in danger of being seized or sold under or pursuant to any form of distress, attachment, execution or other
legal process or otherwise to be in jeopardy; 

  

	 	(iv)	the Security Trustee becomes aware or has reason to believe that bona fide and non-vexatious steps have been or are being taken which, in the opinion of the Security Trustee,
are reasonably likely to lead to the making of an application to appoint an administrator in relation to the Chargor (or such administrator has been appointed) or the making of a petition to wind up the Chargor or that any application has been made
or any petition has been presented, which in the reasonable opinion of the Security Trustee is reasonably likely to result in the winding up of the Chargor or the appointment of such administrator; or 

  

	 	(v)	 the Chargor fails to comply, or takes or threatens to take any action which in the reasonable opinion of the Security Trustee is likely to result in the
Chargor 

  

 8 

	 	 
failing to comply with its obligations under Clause 8.4 (Restrictions on Dealing). 

  

	(b)	The floating charge hereby created may not be converted into a fixed charge solely by reason of: 

  

	 	(i)	the obtaining of a moratorium; or 

  

	 	(ii)	anything done with a view to obtaining a moratorium, 

  
 under the Insolvency Act 2000. 
  

	(c)	The floating charge created by Clause 5.1 (Creation of Floating Charge) shall (in addition to the circumstances in which the same will occur under general law)
automatically be converted into a fixed charge: 

  

	 	(i)	if an administrator is appointed or the Security Trustee receives notice of an intention to appoint an administrator; or 

  

	 	(ii)	upon the convening of any meeting of the members of the Chargor to consider a resolution to voluntarily wind up the Chargor (or not to wind up the Chargor); or

  

	 	(iii)	upon the presentation of a petition to compulsorily wind up the Chargor (save for a petition which is frivolous, vexatious or an abuse of process which is dismissed within 14
days); or 

  

	 	(iv)	if there occurs in relation to the Chargor or any of its assets in any country or territory in which it is incorporated or carries on business or to the jurisdiction of whose
courts it or any of its assets is subject any event which corresponds in that country or territory with any of those mentioned in paragraphs (i) to (iii) (inclusive) of this Clause 5.2(c); or 

  

	 	(v)	if the Chargor fails to comply with its obligations under Clause 8.4 (Restrictions on Dealing). 

  

	(d)	Service by the Security Trustee of a notice pursuant to Clause 5.2(a) (Conversion of Floating Charge) in relation to any of the Floating Charge Assets shall not be
construed as a waiver or abandonment of the Security Trustee’s rights to serve similar notices in respect of any other of the Floating Charge Assets or of any other of the rights of the Secured Parties (or any of them) under any Loan Document
and shall remove from the Chargor any right which the Chargor has to deal with the relevant assets without the prior written permission (in the case of dealing) of the Security Trustee. 

  

	6	CONTINUING SECURITY 

  
 6.1 Continuing Security The security constituted by this Debenture shall be continuing security which shall extend to all the Secured Obligations and shall not be considered as satisfied or discharged by
any intermediate payment or settlement of all or any of the Secured Obligations. 
  

 9 

 6.2 Breaking of Accounts If for any reason the security constituted hereby ceases to be a continuing
security in respect of the Chargor (other than by way of discharge of such security in accordance with the terms of this Debenture) or the Security Trustee or any other Secured Party receives, or is deemed to be affected by, notice, whether actual
or constructive of any Lien affecting the Charged Assets, the Security Trustee may open a new account with or continue any existing account with the Chargor. If the Security Trustee does not open a new account, it shall nevertheless be treated as if
it had done so at the date of such cessation or the time when it received or was deemed to have received notice. As from that time all payments made to the Security Trustee will be deemed to be credited or treated as being credited to the new
account and the liability of the Chargor in respect of the Secured Obligations relating to it at the date of such cessation or the time when notice was received or deemed received shall remain and shall not be reduced regardless of any payments into
or out of any such account. 
  
 6.3 Avoided Payments Where any
release or discharge or other arrangement in respect of all or part of the Secured Obligations (or in respect of any security for those Secured Obligations including the security created under this Debenture) is made in reliance on any payment,
security or other disposition which is avoided or must be restored in an insolvency, liquidation or otherwise and whether or not the Security Trustee has conceded or compromised any claim that any payment, security or other disposition will or
should be avoided, the liability of the Chargor for the payment of the Secured Obligations and the obligations of the Chargor under this Debenture shall continue as if such release, discharge or other arrangement had not been made. 
  
 6.4 Waiver of Defences The obligations of the Chargor hereunder will not be
affected by any act, omission, circumstance, matter or thing which but for this provision would release or prejudice any of its obligations hereunder or prejudice or diminish such obligations in whole or in part, including (whether or not known to
the Chargor or the Security Trustee or any other person whatsoever): 
  

	(a)	any time, indulgence or waiver granted to, or composition with, any Loan Party or any other person; or 

  

	(b)	the taking, variation, compromise, exchange, renewal or release of, refusal or neglect to perfect, take up or enforce any rights or remedies against, or any security over
assets of any Loan Party or any other person or any non-presentment or non-observance of any formality or other requirement in respect of any instruments or any failure to realise the full value of any other security; or 

  

	(c)	any incapacity or lack of powers, authority or dissolution or change in the members or status of any Loan Party or any other person; or 

  

	(d)	any variation (however fundamental and whether or not involving any increase in the liability of any Loan Party or any other person thereunder) or replacement of any Loan
Document or any other document or security so that references to that Loan Document or other document or security in this Debenture shall include each such variation or replacement; or 

  

	(e)	the unenforceability, illegality or invalidity of any obligation of any Loan Party or any other person under any Loan Document or of any other security the Security Trustee
may hold in respect of the Secured Obligations (or any of them) or otherwise; or 

  

 10 

	(f)	any postponement, discharge, reduction, non-provability or other similar circumstances affecting any obligation of any Loan Party or any other person under any Loan Document
resulting from any insolvency, liquidation or dissolution proceedings or from any law, regulation or order or otherwise. 

  
 The Security Trustee shall not be concerned to see or investigate the powers or authorities of any Loan Party or any of its respective officers or agents, and moneys
obtained or Secured Obligations incurred in the purported exercise of such powers or authorities or by any person purporting to be such Loan Party shall be deemed to form a part of the Secured Obligations, and “Secured Obligations”
shall be construed accordingly. 
  
 6.5 Immediate Recourse Neither
the Security Trustee nor any Secured Party shall be required to proceed against or enforce any other rights or security it may have or hold in respect of the Secured Obligations or claim payment from any other person before enforcing the security
constituted by this Debenture and the Chargor waives any right it may have of first requiring the Security Trustee or any other Secured Party to do so. 
  
 6.6 No Competition Until all the Secured Obligations have been unconditionally and irrevocably discharged in full, any rights (if any) which the Chargor may
have: 
  

	(a)	to be subrogated to any rights or security of or moneys held, received or receivable by the Security Trustee or any other Secured Party (or any agent or trustee on its
behalf) with respect to the Secured Obligations; or 

  

	(b)	to be entitled to any right of contribution or indemnity from any other person; or 

  

	(c)	to claim, rank, prove or vote as a creditor of such other person or its estate in competition with the Security Trustee or any other Secured Party (or any agent or trustee on
its behalf), 

  
 shall be exercised by the Chargor only if and to
the extent that the Security Trustee so requires and in such manner and upon such terms as the Security Trustee may specify and the Chargor shall hold any moneys, rights or security held or received by it as a result of the exercise of any such
rights on trust for the Security Trustee for application in accordance with the terms hereof as if such moneys, rights or security were held or received by the Security Trustee under this Debenture. 
  
 6.7 Appropriations Until all the Secured Obligations have been unconditionally
and irrevocably paid and discharged in full in cash, the Security Trustee and each other Secured Party (or any agent or trustee on its behalf) may: 
  

	(a)	refrain from applying or enforcing any other moneys, security or rights held or received by it in respect of the Secured Obligations or apply and enforce the same in such
manner and order as it sees fit (whether against the Secured Obligations or otherwise) and the Chargor shall not be entitled to the benefit of the same; and 

  

	(b)	hold in a suspense account any moneys received from the Chargor or any other person in respect of the Secured Obligations. 

  
 6.8 Additional Security This Debenture is in addition to and shall not in any
way be prejudiced by, prejudicial to or affect or merge with any other security now or hereafter held 

  

 11 

 
by the Security Trustee or any other Secured Party (or any agent or trustee on behalf of any of them) for the Secured Obligations or any of them. 

 
 6.9 Security Held by Chargor The Chargor will not without the prior written
consent of the Security Trustee hold any security, guarantee, indemnity, bond or other assurance from any other person in respect of the Chargor’s liabilities hereunder. The Chargor will hold any security held by it in breach of this provision
on trust for the Security Trustee (as trustee as aforesaid) and shall on request promptly deposit the same and/or charge the same to the Security Trustee in such a manner as the Security Trustee may require as security for due and punctual
performance and discharge by the Chargor of the Secured Obligations. 
  
 6.10
Remedies Not Exclusive 
  

	(a)	The rights and remedies of the Security Trustee and any Receiver provided for in this Debenture: 

  

	 	(i)	may be exercised as often as necessary; 

  

	 	(ii)	are cumulative and not exclusive of any rights or remedies provided by law; and 

  

	 	(iii)	may be waived only in writing and specifically. 

  
 Delay in exercising or non-exercise of any such right is not a waiver of that right. 
  

	(b)	The Security Trustee may waive any breach by the Chargor of any of its obligations hereunder. 

  
 6.11 Protection of the Security Trustee The Security Trustee shall not be liable in respect of any loss or damage which arises
out of the exercise, or the attempted or purported exercise of, or the failure to exercise any of its powers, unless such loss or damage is caused by its gross negligence or wilful default. 
  

	7	REPRESENTATIONS AND WARRANTIES 

  
 The Chargor makes each of the representations and warranties set out in this Clause 7 and acknowledges that the Security Trustee and the Secured Parties have entered into
the Loan Documents in reliance on those representations and warranties. Where there is a conflict between the representations and warranties set out in this Clause 7 and those appearing in Article IV (Representations and Warranties) of the
Facility Agreement as to the Chargor, the representations and warranties in the Facility Agreement shall prevail. 
  
 7.1 No Filing or Stamp Taxes Under the laws of England in force at the date hereof, it is not necessary that this Debenture be filed, recorded or enrolled
with any court or other authority (save for registration under Section 395 of the Companies Act 1985 or at any Intellectual Property registry pursuant to the terms of Clause 8.12 (Intellectual Property)) or that any stamp, registration or
similar tax be paid on or in relation to this Debenture. 
  
 7.2 Shares
 
  

	(a)	 If the Chargor is listed in Part II of Schedule 1 as an owner of any Shares, it is and, from and after the date hereof will (subject to the terms of the
Facility Agreement) 

  

 12 

	 	 
remain the legal and beneficial owner of the Shares and the Related Rights and it or its nominee is and will remain the absolute legal owner of the Shares
and the Related Rights and, with full title guarantee, it is able to mortgage and has so mortgaged the Shares and the Related Rights; 

  

	(b)	the security created over the Shares and the Related Rights under this Debenture constitutes a first priority security interest over the Shares and the Related Rights;

  

	(c)	the Shares and the Related Rights are within the Chargor’s disposition and control and neither the terms of the Shares and the Related Rights nor of the Memorandum and
Articles of Association of any Issuer restrict or otherwise limit the right to mortgage, charge or pledge the Shares and the Related Rights in favour of the Security Trustee; 

  

	(d)	the Shares are duly authorised, validly issued, fully paid or credited as fully paid and no calls have been made in respect thereof which remain unpaid or can be made in
respect thereof in the future; 

  

	(e)	except as stated in Clause 3 (Creation of Fixed Security), the Chargor has not sold or granted any rights of pre-emption over or agreed to sell or grant any right of
pre-emption over or otherwise disposed of or agreed to dispose of the benefit of all or any of its rights, title and interest in and to all or any part of the Shares or Related Rights; and 

  

	(f)	the Shares are non-assessable and neither the Shares nor the Related Rights are subject to any options to purchase or similar rights of any person. 

 
 7.3 Material Contracts Each of the Material Contracts is in full force and
effect. The obligations of the Chargor in the Material Contracts are legal, valid, binding and enforceable obligations of the Chargor subject to equitable remedies and matters affecting creditors’ rights generally. The Chargor is not in default
under any Material Contract and, to the best of its knowledge, no other party to a Material Contract is in default under such Material Contract. 
  
 7.4 Intellectual Property Rights 
  

	(a)	The Intellectual Property Rights owned by or licensed to the Chargor (including the Intellectual Property Rights specified in Part I (Intellectual Property
Rights) of Schedule 1) are all of the Intellectual Property Rights required by it in order for it to carry on its business as it is being conducted and to the Chargor’s knowledge, the Chargor, in carrying on its business does not infringe
any Intellectual Property Rights of any third party in a manner which would have a Material Adverse Effect. 

  

	(b)	Except as disclosed in writing to the Security Trustee prior to the date hereof, the Intellectual Property Rights owned by or licensed to the Chargor (including the
Intellectual Property Rights listed in Part I (Intellectual Property Rights) of Schedule 1) are free of any Liens (except for any Liens created by or pursuant to this Debenture or permitted by the terms of the Facility Agreement) and any
other rights or interests (including any licences) in favour of third parties. 

  

	(c)	 None of the Intellectual Property Rights owned by or licensed to the Chargor (including the Intellectual Property Rights listed in Part I (Intellectual
Property  

  

 13 

	 	 
Rights) of Schedule 1) is being infringed in a manner which would have a Material Adverse Effect and there is no threatened such infringement of any
such Intellectual Property Right. 

  
 7.5 Charged
Assets  
  

	(a)	The Chargor has not received notice of any adverse claim in respect of any of the Charged Assets (including the Shares and the Related Rights). 

  

	(b)	Except for any Liens granted to the Security Trustee pursuant to this Debenture and any other Liens permitted to exist on the Charged Assets under the Facility Agreement:

  

	 	(i)	the Chargor is the legal and beneficial owner of the Charged Assets which it purports to charge on the date hereof and, with full title guarantee, is able to mortgage or
charge and has so mortgaged or charged such Charged Assets. 

  

	 	(ii)	the Charged Assets are within the Chargor’s disposition and control and the terms of the Charged Assets do not restrict or otherwise limit the right to transfer,
mortgage, charge or pledge the Charged Assets in favour of the Security Trustee. 

  
 7.6 Financial Assistance There is no obligation or liability which is included in the definition of “Secured Obligations” to the extent that, if it were so included, this Debenture (or any part
thereof) would constitute unlawful financial assistance within the meaning of Sections 151 and 152 of the Companies Act 1985. 
  
 7.7 Representations and Warranties in the Facility Agreement The Chargor repeats the representations and warranties as to it given by the Borrower in
Article IV (Representations and Warranties) of the Facility Agreement. 
  
 7.8 Times of Making Representations and Warranties The representations and warranties set out in this Clause 7: 
  

	(a)	will survive the execution of each Loan Document and each drawdown under the Facility Agreement; and 

  

	(b)	are made on the date hereof and are deemed to be repeated on and as of each date required by Subsection (i) of Section 3.2(b) (Representations and Warranties; No
Defaults) of the Facility Agreement during the Security Period with reference to the facts and circumstances then existing. 

  

	8	UNDERTAKINGS OF CHARGOR 

  
 8.1 Duration The undertakings in this Clause 8 shall remain in force throughout the Security Period. 
  

 14 

 8.2 Maintenance of Legal Validity The Chargor shall obtain, comply with the terms of and do all that is
necessary to: 
  

	(a)	maintain in full force and effect all authorisations, approvals, licences and consents required in or by the laws and regulations of England to enable it lawfully to enter
into and perform its obligations under this Debenture; and 

  

	(b)	ensure the legality, validity, enforceability or admissibility in evidence of this Debenture and that otherwise than permitted by the Security Trustee (acting in its absolute
discretion) the Charged Assets remain subject to the laws and regulations of England. 

  
 8.3 Untrue Representations The Chargor shall notify the Security Trustee of the occurrence of any event which results in or may reasonably be expected to result in any of the representations and
warranties contained in Clause 7 (Representations and Warranties) being untrue in any material respect. 
  
 8.4 Restrictions on Dealing The Chargor undertakes that, except as permitted under the terms of this Debenture or any other Loan Document it will not: 
  

	(a)	create or permit to subsist any Lien over all or any of its assets, rights or property other than the Liens created pursuant to this Debenture or any other Loan Document; or

  

	(b)	lease, sell, transfer, assign or otherwise dispose of or agree to lease, sell, transfer, assign or otherwise dispose of, all or any part of its assets, rights or property,
including the Charged Assets or any interest therein. 

  
 8.5
Book Debts and Receipts The Chargor shall: 
  

	(a)	get in and realise its: 

  

	 	(i)	securities to the extent held by way of temporary investment; 

  

	 	(ii)	book and other debts and other moneys, including, but without prejudice to the generality of the foregoing, debts and moneys arising from any Material Contract; and

  

	 	(iii)	royalties, fees and income of like nature in relation to any Intellectual Property Right owned by it, 

  
 in each case, in the ordinary course of its business and pay the proceeds of
such getting in and realisation into such Collateral Account(s) as the Security Trustee may from time to time specify and, pending such payment, hold the proceeds of such getting in and realisation upon trust for the Security Trustee; 
  

	(b)	not withdraw all or any moneys (including interest) standing to the credit of any Collateral Account following notice from the Security Trustee during the continuance of an
Event of Default; and 

  

	(c)	not assign or otherwise transfer, and not create or permit to exist any Lien (other than a Permitted Lien) over any Collateral Account or any interest therein.

  
 8.6 Material Contracts No Chargor shall amend
(except for amendments of a minor technical or administrative nature), terminate or waive any provision of any Material Contract 

  

 15 

 
and the Chargor shall duly and promptly perform its obligations under each Material Contract and diligently pursue its rights and remedies thereunder except
where any of the foregoing would not result either individually or in aggregate in a Material Adverse Effect. 
  
 8.7 Intellectual Property Rights The Chargor shall: 
  

	(a)	take all reasonable steps and practical steps to preserve and enforce all of the Intellectual Property Rights which are used or useful to the conduct of the Chargor’s
business or which are required by it in order to carry on its business; and 

  

	(b)	not without the prior written consent of the Security Trustee (acting on the instructions of the Requisite Lenders): 

  

	 	(i)	sell, transfer, license or otherwise dispose of all or any part of its Intellectual Property Rights; or 

  

	 	(ii)	permit any such Intellectual Property Rights which are registered to be abandoned or cancelled, to lapse or to be liable to any claim of abandonment for non-use or otherwise.

  
 8.8 Maintenance of Property The Chargor shall
(except as otherwise permitted pursuant to the terms of the Facility Agreement): 
  

	(a)	Noting of Interest procure that a note of the Security Trustee’s interest is endorsed upon all policies of insurance which shall at any time during the
subsistence of this security be effected, maintained or held by the Chargor or any person on its behalf pursuant to Clause 7.5 (Maintenance of Insurance) of the Facility Agreement; 

  

	(b)	Maintenance of Insurances (i) not do or permit anything to be done in or upon or relating to the Charged Assets or any part thereof which may make void or
voidable any Insurance in connection therewith, (ii) comply with obligations as to insurance as set out in the Loan Documents and (iii) comply with any insurance obligations under leases and do all things reasonable to ensure that the landlord
maintains adequate insurances of any leasehold property; 

  

	(c)	Premiums pay or procure the payment of all premiums and do all other things reasonably necessary to keep all of the Insurances in force and, on demand of the
Security Trustee (acting reasonably) and, where practicable, produce, or procure the production to the Security Trustee the receipt for the payment of each such premium; 

  

	(d)	Taxes and Outgoings pay as and when the same shall become due and payable by it all taxes, rates, duties, charges, assessments and outgoings whatsoever (whether
parliamentary, parochial, local or of any other description) which shall be assessed, charged or imposed upon or payable in respect of the Charged Assets or any part thereof (save to the extent that payment of the same is being contested in good
faith by proper proceedings and adequate reserves have been set aside for the payment thereof); 

  

	(e)	 Notices as soon as reasonably practicable after the receipt by the Chargor and in any event within 14 days from such receipt of any
application, requirement, order or notice served or given by any public or local or any other authority with respect to the Charged Assets (or any part thereof), give written notice thereof to the Security 

  

 16 

	 	 
Trustee and within 14 days after demand therefor produce the same or a copy thereof to the Security Trustee and inform it of the steps taken or proposed to
be taken to comply with any such requirement thereby made or implicit therein or how and why the Chargor, acting in good faith, intends to dispute such application, order or notice; 

  

	(f)	Statutes duly and punctually perform and observe in all material respects all its material obligations in connection with the Charged Assets under any present
or future statue or any regulation, order or notice made or given thereunder; 

  
 8.9 Shares No Chargor will take any action whereby the rights attaching to the Shares or the Related Rights are altered or diluted except to the extent permitted by the Security Trustee. 
  
 8.10 Notice of Assignment The Chargor shall promptly give notice of the
assignment pursuant to Clause 4 (Assignments) of this Debenture of its rights, title and interest (if any): 
  

	(a)	in and to the Insurances, by sending a notice in the form of Part I (Form of Notice of Assignment of Insurances) of Schedule 2 duly completed to each of the other
parties to the Insurances; and 

  

	(b)	in and to the Material Contracts, by sending a notice in the form of Part I (Form of Notice of Assignment) of Schedule 4 duly completed to each of the other parties to
the Material Contracts, 

  
 and the Chargor shall use its reasonable
endeavours to procure (i) in the case of Insurances, that each such other party acknowledges such notice in the form of Part II (Form of Acknowledgement of Assignment of Insurances) of Schedule 2 and (ii) in the case of Material Contracts,
that each such other party acknowledges such notice in the form of Part II (Form of Acknowledgement of Assignment of Material Contracts) of Schedule 4. 
  

8.11 Notice of Charge over Bank Account The Chargor will forthwith give notice to each Account Bank (and forthwith on any change in the identity of any
Account Bank shall give notice to the new Account Bank) of this Debenture in the form of Part I (Form of Notice of Charge over Bank Accounts) of Schedule 3 and shall use its reasonable endeavours to procure that the Account Bank or new
Account Bank (as the case may be) acknowledges such notice in the form of Part II (Form of Acknowledgement of Charge over Bank Accounts) of Schedule 3. 
  

8.12 Intellectual Property In respect of the Intellectual Property Rights specified in Part I (Intellectual Property Rights) of Schedule 1 the
title to which is registered with the Trade Marks Registry and in respect of any other registered trademarks of the Chargor against which this Debenture may be noted, the Chargor shall forthwith file such form with the Trade Marks Registry as
necessary to register its interest within any applicable time periods. 
  

	9	PROVISIONS RELATING TO SHARES 

  
 9.1 Deposit of Certificates The Chargor shall, as soon as reasonably practicable: 
  

	(a)	 deposit with the Security Trustee (or as the Security Trustee may direct) all bearer instruments, share certificates and other documents of title or evidence
of ownership in relation to the Shares and their Related Rights and/or the Security Collateral, as are 

  

 17 

	 	 
owned by it or in which it has or acquires an interest entitling it to control such documents; 

  

	(b)	execute and deliver to the Security Trustee all such stock transfer forms and other documents as may be reasonably requested by the Security Trustee in order to enable the
Security Trustee (or its nominee), in accordance with paragraph (c) below, to be registered as the owner or otherwise to obtain a legal title to the Shares and their Related Rights and/or the Security Collateral; and 

  

	(c)	at any time following the occurrence of an Event of Default which is continuing, if the Security Trustee so requests, procure that all such stock transfer forms are forthwith
registered with the relevant person and that share certificates in the name of the Security Trustee (or such nominee) in respect of the Shares and their Related Rights and/or the Security Collateral are forthwith delivered to the Security Trustee.

  
 9.2 Registration on Transfer The Chargor hereby
authorises the Security Trustee: 
  

	(a)	to arrange for any of the Shares and their Related Rights and/or the Security Collateral to be registered in the name of the Security Trustee (or its nominee) at any time
following an Event of Default which is continuing; or 

  

	(b)	(under its powers of realisation) upon enforcement of the security created hereby following the occurrence of an Event of Default which is continuing, to transfer or cause
the Shares and their Related Rights and/or the Security Collateral to be transferred to and registered in the name of the Security Trustee (or its nominee) or any purchaser or transferee, 

  
 and each the Chargor undertakes from time to time promptly to execute and sign all transfers,
contract notes, powers of attorney and other documents (and to procure the registration of any such transfer of the Shares and their Related Rights and/or the Security Collateral in the relevant shareholders’ or other register) that may be
required by the Security Trustee in connection therewith. 
  
 9.3
Liability to Perform Notwithstanding anything to the contrary herein contained, the Chargor shall remain liable to observe and perform all of the conditions and obligations assumed by it in respect of the Charged Assets and, without
limitation, to pay all calls or other payments that may become due in respect of any of the Charged Assets. Notwithstanding the provisions of Clause 9.6 (Calls), the Security Trustee shall not be required in any manner to perform or fulfil
any obligation of the Chargor in respect of the Charged Assets, or to make any payment, or to make any enquiry as to the nature or sufficiency of any payment received by it, or to present or file any claim or take any other action to collect or
enforce the payment of any amount to which it may have been or to which it may be entitled hereunder at any time or times. 
  
 9.4 Subsequently Acquired Security Collateral The Chargor shall, as soon as reasonably practicable, upon it (or any nominee of the Chargor) becoming the
registered owner of and receiving share certificates in respect of any Shares and their Related Rights and/or the Security Collateral after the date hereof, deliver to the Security Trustee all share certificates in respect thereof together with
share transfer documentation in respect of such Shares and their Related Rights and/or the Security Collateral duly executed in blank by or on behalf of the Chargor (or such nominee) as appropriate. 
  

 18 

 9.5 Powers  
  

	(a)	At any time after an Event of Default has occurred which is continuing and without any further consent or authority on the part of the Chargor, the Security Trustee may
exercise (or refrain from exercising) at its discretion in the name of the Chargor (or the registered holder) in respect of the Shares and their Related Rights and/or the Security Collateral any voting rights and any powers or rights under the terms
thereof or otherwise which may be exercised by the person or persons in whose name or names the Charged Assets are registered or who is the holder thereof. 

  

	(b)	If the Security Trustee takes any such action as is referred to in paragraph (a) above, it shall give notice to the Chargor as soon as practicable. 

 

	(c)	For the purposes of giving effect to this Clause 9.5 (Powers) and to the extent that the Shares and their Related Rights and/or the Security Collateral remain
registered in the name of the Chargor, the Chargor hereby irrevocably appoints the Security Trustee (or its nominee) as its proxy to exercise all voting and other rights in respect thereof. 

  
 9.6 Calls To the extent that the Chargor fails to comply with its obligations
under Clause 9.3 (Liability to Perform) the Security Trustee may (if it thinks fit) make such payment on behalf of the Chargor. Any sums so paid by the Security Trustee shall be repayable by the Chargor to the Security Trustee on demand
(which demand shall be made promptly following the making of the payment by the Security Trustee) together with interest at the Default Rate from the date of such payment by the Security Trustee until the date of payment by the Chargor, and pending
such repayment shall constitute part of the Secured Obligations. 
  
 9.7
Provision of Information The Chargor shall, within such time as required of the Borrower pursuant to Article VI (Reporting Covenants) of the Facility Agreement, or if not so referenced, promptly, send to the Security Trustee,
following receipt by the Chargor, a copy of every balance sheet, profit and loss account, report or other notice, statement or circular sent or delivered by each Issuer to its members. 
  

	10	ACCOUNT BANK 

  
 10.1 Identity of Account Bank The initial Account Bank is National Westminster Bank plc. The Account Bank may be changed at any time: 
  

	(a)	to any alternative that the Security Trustee reasonably requires; and 

  

	(b)	to any other bank or financial institution with the agreement of the Chargor and the Security Trustee, 

  
 but, in each case, provided that such change shall only become effective upon the proposed
new Account Bank agreeing with the Security Trustee and the Chargor, in a manner satisfactory to the Security Trustee, to fulfil the role of Account Bank hereunder. 
  
 10.2 Transfer of Balances Forthwith upon any change to the Account Bank pursuant to Clause 10.1 (Identity of Account
Bank) becoming effective, any amounts standing to the credit of each Collateral Account maintained with the old Account Bank shall be transferred to the corresponding Collateral Account maintained with the new Account Bank appointed 

  

 19 

 
pursuant to Clause 10.1 (Identity of Account Bank). The Chargor hereby irrevocably agrees to give all authorisations and instructions necessary for
any such transfer to be made. 
  
 10.3 Further Perfection The
Chargor shall do all such things (including the execution of bank mandate forms) as the Security Trustee may reasonably request in order to facilitate any change of Account Bank pursuant to Clause 10.1 (Identity of Account Bank) or any
transfer of credit balances pursuant to Clause 10.2 (Transfer of Balances). 
  

	11	ENFORCEMENT OF SECURITY 

  
 11.1 Security Enforceable The security constituted hereby shall become immediately enforceable at any time after an Event of Default has occurred which is
continuing. 
  
 11.2 Enforcement After the security constituted
hereby has become enforceable in accordance with the terms of this Debenture the Security Trustee may, in its absolute discretion, enforce all or any part of the security created hereby and exercise any other rights or remedies conferred on it
hereunder or by law in such manner as it sees fit and may, without notice to the Chargor and without demand for payment, apply the proceeds of such enforcement in or towards discharge of the Secured Obligations in such order and in such amounts as
the Security Trustee sees fit or otherwise in accordance with the terms hereof. 
  
 11.3 Law of Property Act Sections 93 and 103 of the Law of Property Act 1925 shall not apply to this Debenture. 
  
 11.4 Statutory Powers The powers conferred on mortgagees or receivers by the Law of Property Act 1925, the Insolvency Act 1986 and the Financial Collateral
Regulations shall apply to this Debenture except insofar as they are expressly or impliedly excluded and, where there is ambiguity or conflict between the powers contained in such Acts and those contained in this Debenture, those contained in this
Debenture shall prevail. For the purposes of all powers implied by statute, the Secured Obligations shall be deemed to have become due and payable on the date hereof. Such powers and rights shall, for the avoidance of doubt, include the right to
appropriate all or any part of the Financial Collateral Assets in or towards the satisfaction of the Secured Obligations and, for this purpose, the value of such Financial Collateral Assets so appropriated shall be such amount as the Security
Trustee so determines having taken into account advice obtained by it from an independent investment or accountancy firm of national standing selected by it. 
  
 11.5 Contingencies 
  

	(a)	If the Security Trustee enforces the security constituted by this Debenture (whether by the appointment of a Receiver or otherwise) at a time when no amounts are due under
any of the Loan Documents (but at a time when amounts may become so due), the Security Trustee (or such Receiver) may pay the proceeds of any recoveries effected by it into such number of Realisations Accounts as it considers appropriate.

  

	(b)	The Security Trustee (or such Receiver) may (subject to the payment of any claims having priority to the security constituted by this Debenture) withdraw amounts standing to
the credit of the Realisations Accounts to: 

  

	 	(i)	meet all costs, charges and expenses incurred and payments made by the Security Trustee (or such Receiver) in the course of such enforcement; 

  

 20 

	 	(ii)	pay remuneration to the Receiver as and when the same becomes due and payable; 

  

	 	(iii)	satisfy the Secured Obligations as and when the same become due and payable; and 

  
 in each case, together with interest thereon (after, as well as before, judgment and payable on demand) at the Default Rate
from the date the same become due and payable until the date the same are unconditionally and irrevocably paid and discharged in full. 
  

	12	RECEIVER 

  
 12.1 Appointment of Receiver  
  

	(a)	At any time after the security constituted by this Debenture becomes enforceable in accordance with its terms or if an application is made for the appointment of or notice is
given of intention to appoint an administrator in respect of the Chargor or if requested by the Chargor, the Security Trustee may without further notice appoint under seal or in writing under its hand any one or more qualified persons to be a
Receiver of all or any part of the Charged Assets in like manner in every respect as if the Security Trustee had become entitled under the Law of Property Act 1925 to exercise the power of sale thereby conferred. 

  

	(b)	The Security Trustee is not entitled to appoint a Receiver solely as a result of the obtaining of a moratorium (or anything done with a view to obtaining a moratorium) under
the Insolvency Act 2000 except with leave of the court. 

  

	(c)	As used in this clause “qualified person” means a person who, under the Insolvency Act 1986, is qualified to act as a receiver of the property of the Chargor
with respect to which he is appointed. 

  
 12.2 Powers of
Receiver  
  

	(a)	Every Receiver appointed in accordance with Clause 12.1 (Appointment of Receiver) shall have and be entitled to exercise all of the powers set out in paragraph (b) of
this Clause 12.2 in addition to those conferred by the Law of Property Act 1925 on any receiver appointed thereunder. If at any time there is more than one Receiver of all or any part of the Charged Assets, each such Receiver may (unless otherwise
stated in any document appointing him) exercise all of the powers conferred on a Receiver under this Debenture individually and separately from each other Receiver. 

  

	(b)	The powers referred to in the first sentence of paragraph (a) of this Clause 12.2 above are: 

  

	 	(i)	Take Possession to take immediate possession of, get in and collect the Charged Assets or any part thereof; 

  

	 	(ii)	Carry on Business to carry on the business of the Chargor as such Receiver may think fit; 

  

 21 

	 	(iii)	Protection of Assets to make and effect all insurances and do all other acts which the Chargor might do in the ordinary conduct of its business or is obliged to
do under the terms of this Debenture as well for the protection as for the improvement of the Charged Assets and any permissions, consents or licences, in each case as such Receiver may in its absolute discretion think fit; 

 

	 	(iv)	Employees to appoint and discharge managers, officers, agents, accountants, servants, workmen and others for the purposes hereof upon such terms as to
remuneration or otherwise as such Receiver may think proper and to discharge any such persons appointed by the Chargor; 

  

	 	(v)	Borrow Money for the purpose of exercising any of the powers, authorities and discretions conferred on him by or pursuant to this Debenture and/or of defraying
any costs, charges, losses or expenses (including his remuneration) which shall be incurred by such Receiver in the exercise thereof or for any other purpose, to raise and borrow money either unsecured or on the security of the Charged Assets or any
part thereof either in priority to the security constituted by this Debenture or otherwise and generally on such terms and conditions as such Receiver may think fit and no person lending such money shall be concerned to enquire as to the propriety
or purpose of the exercise of such power or to see to the application of any money so raised or borrowed; 

  

	 	(vi)	Sell Assets to sell, exchange, convert into money and realise all or any part of the Charged Assets by public auction or private contract and generally in such
manner and on such terms as such Receiver shall think proper. Without prejudice to the generality of the foregoing, such Receiver may do any of these things for a consideration consisting of cash, debentures or other obligations, shares, stock or
other valuable consideration and any such consideration may be payable in a lump sum or by instalments spread over such period as such Receiver may think fit; 

  

	 	(vii)	Compromise to settle, adjust, refer to arbitration, compromise and arrange any claims, accounts, disputes, questions and demands with or by any person who is or
claims to be a creditor of the Chargor or relating in any way to the Charged Assets or any part thereof; 

  

	 	(viii)	Legal Actions to bring, prosecute, enforce, defend and abandon any actions, suits and proceedings in relation to the Charged Assets or any part thereof as may
seem to such Receiver to be expedient; 

  

	 	(ix)	Receipts to give valid receipts for all moneys and execute all assurances and things which may be proper or desirable for realising the Charged Assets;

  

	 	(x)	Subsidiaries to form a subsidiary or subsidiaries of the Chargor and transfer to any such subsidiary all or any part of the Charged Assets; and

  

	 	(xi)	 General Powers to do all such other acts and things as such Receiver may consider desirable or necessary for realising the Charged Assets or
any part thereof or incidental or conducive to any of the matters, powers or authorities conferred on a Receiver under or by virtue of this Debenture; to exercise in relation to the Charged Assets or any part thereof all such powers, authorities

  

 22 

	 	 
and things as such Receiver would be capable of exercising if such Receiver were the absolute beneficial owner of the same; and to use the name of the
Chargor for all or any of such purposes. 

  
 12.3
Removal and Remuneration The Security Trustee may from time to time by writing under its hand remove any Receiver appointed by it and may, whenever it may deem it expedient, appoint a new Receiver in the place of any Receiver whose
appointment may for any reason have terminated and may from time to time fix the remuneration of any Receiver appointed by it. 
  
 12.4 Security Trustee May Exercise Powers of Receiver To the fullest extent permitted by law, all or any of the powers, authorities and discretions which
are conferred by this Debenture (either expressly or implied) upon a Receiver may be exercised by the Security Trustee at any time after the security constituted by this Debenture has become enforceable in accordance with its terms in relation to
the whole of such Charged Assets or any part thereof without first appointing a Receiver of such property or any part thereof or notwithstanding the appointment of a Receiver of such property or any part thereof. 
  
 12.5 Application of Proceeds Any moneys received by the Security Trustee or by
any Receiver appointed by it pursuant to this Debenture and/or under the powers hereby conferred shall, after the security constituted in this Debenture shall have become enforceable in accordance with its terms, but subject to the payment of any
claims having priority to the security constituted by this Debenture and to the Security Trustee’s and such Receiver’s rights under Clauses 11.5 (Contingencies) and 12.2 (Powers of Receiver), be applied against the amounts
due and payable under the Loan Documents in accordance with the provisions of Clause 5 (Application of Proceeds) of the Security Trust Deed. 
  

	13	FURTHER ASSURANCES 

  
 13.1 The Chargor shall, at its own expense from time to time, execute and give all such assurances and do all acts and things as the Security Trustee may require or consider desirable under the laws of any
jurisdiction governing the Charged Assets to enable the Security Trustee to perfect or protect the security intended to be created hereby over the Charged Assets or any part thereof or to facilitate the sale of the Charged Assets or any part thereof
or the exercise by the Security Trustee of any of the rights, powers, authorities and discretions vested in it or any Receiver of the Charged Assets or any part thereof or any such delegate or sub-delegate as aforesaid, including to facilitate
vesting all or part of such assets in the name of the Security Trustee or in the names of its nominee, agent or any purchaser. To that intent, without prejudice to the generality of the foregoing and subject to the terms and conditions set out in
the other Clauses of this Debenture, the Chargor shall execute all transfers, sales, dispositions and appropriations (whether to the Security Trustee or otherwise) and shall give all notices, orders and directions and make all registrations which
the Security Trustee may (in its absolute discretion) consider expedient. 
  
 13.2 Without prejudice to the generality of Clause 13.1 but subject to the other terms and conditions of this Debenture, the Chargor will forthwith at the request of the Security Trustee execute a legal mortgage, charge or other
security at any time over all or any of the Charged Assets subject to or intended to be subject to the security constituted by this Debenture in such form as the Security Trustee may require but containing terms no more onerous than those in this
Debenture. 
  

 23 

	14	POWER OF ATTORNEY 

  
 14.1 Appointment The Chargor hereby, by way of security and in order more fully to secure the performance of its obligations hereunder, irrevocably appoints the Security Trustee and every Receiver of the
Charged Assets (or any part thereof) appointed hereunder and any person nominated for the purpose by the Security Trustee or any Receiver in writing under hand by an officer of the Security Trustee or any Receiver severally as its attorney and on
its behalf and in its name or otherwise to execute and do all such assurances, acts and things which the Chargor is required to do under the covenants and provisions contained in this Debenture (including to make any demand upon or to give any
notice or receipt to any person owing moneys to the Chargor and to execute and deliver any charges, legal mortgages, assignments or other security and any transfers of securities) and generally in its name and on its behalf to exercise all or any of
the powers, authorities and discretions conferred by or pursuant to this Debenture or by statute on the Security Trustee or any such Receiver, delegate or sub-delegate and (without prejudice to the generality of the foregoing) to seal and deliver
and otherwise perfect any deed, assurance, agreement, instrument or act which it may reasonably deem proper in or for the purpose of exercising any of such powers, authorities and discretions provided that the power of attorney granted pursuant to
this Clause 14.1 shall not be exercisable until the occurrence of an Event of Default which is continuing. 
  
 14.2 Ratification The Chargor hereby ratifies and confirms and agrees to ratify and confirm whatever any such attorney as is mentioned in Clause 14.1 (Appointment) shall do or purport to do in
good faith in the exercise or purported exercise of all or any of the powers, authorities and discretions referred to in such Clause 14.1 (Appointment). 
  

	15	DELEGATION 

  
 The Security Trustee or any Receiver appointed hereunder may at any time and from time to time delegate by power of attorney or in any other manner to any properly qualified person or persons all or any of the powers,
authorities and discretions which are for the time being exercisable by the Security Trustee or such Receiver under this Debenture in relation to the Charged Assets or any part thereof. Any such delegation may be made upon such terms (including
power to sub-delegate) and subject to such regulations as the Security Trustee or such Receiver may think fit. Neither the Security Trustee nor any Receiver shall be in way liable or responsible to the Chargor for any loss or damage arising from any
act, default, omission or misconduct on the part of any such delegate or sub-delegate. 
  

	16	NO LIABILITY AS MORTGAGEE IN POSSESSION 

  
 Neither the Security Trustee nor its nominee nor any Receiver shall by reason of entering into possession of the Charged Assets or any of them be liable to account as
mortgagee in possession or be liable for any loss on realisation or for any default or omission for which a mortgagee in possession might otherwise be liable. Every Receiver duly appointed by the Security Trustee under the powers set forth herein
shall be deemed to be the agent of the Chargor for all purposes and shall as such agent for all purposes be deemed to be in the same position as a Receiver duly appointed by a mortgagee under the Law of Property Act 1925. The Chargor alone shall be
responsible for each Receiver’s contracts, engagements, acts, omissions, defaults and losses and for all liabilities incurred by him and neither the Security Trustee nor the Receiver shall incur any liability therefor (either to the Chargor or
to any other person whatsoever) or for any other reason whatsoever other than for their gross negligence or wilful default. 
  

 24 

	17	PROTECTION OF THIRD PARTIES 

  
 No purchaser, mortgagee or other person or company dealing with the Security Trustee or the Receiver or its or his agents shall be concerned to enquire whether the
Secured Obligations have become due and payable or whether any power which the Receiver is purporting to exercise has become exercisable or whether any of the Secured Obligations remains outstanding or to see to the application of any money paid to
the Security Trustee or to such Receiver. 
  

	18	STAMP DUTIES 

  
 The Chargor shall pay and, forthwith on demand, indemnify the Security Trustee against any liability it incurs in respect of any stamp, registration and similar tax which is or becomes payable in connection with the
entry into, performance or enforcement of this Debenture. 
  

	19	ADDITIONAL PROVISIONS 

  
 19.1 Redemption of Prior Mortgages The Security Trustee may, at any time after the security constituted by this Debenture has become enforceable in
accordance with its terms, redeem any prior Lien against the Charged Assets or any part thereof or procure the transfer thereof to itself and may settle and pass the accounts of the prior mortgagee, chargee or encumbrancer. Any accounts so settled
and passed shall be conclusive and binding on the Chargor. All principal moneys, interest, costs, charges and expenses of and incidental to such redemption and transfer shall be paid by the Chargor to the Security Trustee on demand. 
  
 19.2 Provisions Severable  
  

	(a)	If a provision of this Debenture is, or but for this Clause 19.2 would be, held to be illegal, invalid or unenforceable, in whole or in part, in any jurisdiction the
provision shall be ineffective to the extent of such illegality, invalidity or unenforceability without rendering the remaining provisions of this Debenture illegal, invalid or unenforceable, and any such illegality, invalidity or unenforceability
in any jurisdiction shall not invalidate or render invalid or unenforceable such provisions in any other jurisdiction. 

  

	(b)	If a provision of this Debenture is held to be illegal, invalid or unenforceable, in whole or in part and paragraph (a) of this Clause 19.2 cannot be used to make it legal,
valid and enforceable, either party to this Debenture may require the other party to enter into a deed under which that other party undertakes in the terms of the original provision, but subject to such amendments as are necessary or required in
order to make the provision legal, valid and enforceable. No party will be obliged to enter into a deed that would increase its liability beyond that contained in this Debenture had all its provisions been legal, valid and enforceable.

  
 19.3 Potentially Avoided Payments If the Security
Trustee considers that an amount paid to the Security Trustee or any Secured Party under any Loan Document is capable of being avoided or otherwise set aside on the liquidation or administration of the person by whom such amount is paid, then for
the purposes of this Debenture, such amount shall be regarded as not having been paid. 
  

 25 

 19.4 Variation This Debenture shall not be varied except by an agreement in writing between the parties of
even date herewith or later. 
  

	20	REMEDIES AND WAIVERS 

  
 A delay in exercising, or failure to exercise, any right or remedy under this Debenture does not constitute a waiver of such or other rights or remedies and does not operate to prevent the exercise or enforcement of
any such right or remedy. No single or partial exercise of any right or remedy under this Debenture prevents further exercise of such or other rights or remedies. The rights, powers and remedies provided in this Debenture are cumulative and not
exclusive of any rights and remedies provided by law. The Security Trustee may, in connection with the exercise of its powers, join or concur with any person in any transaction scheme or arrangement whatsoever. A waiver given or consent granted by
the Security Trustee under this Debenture will be effective only if given in writing and then only in the instance and for the purpose for which it is given. 
  

	21	NOTICES 

  
 21.1 Communications in Writing A notice, other communication or document given under this Debenture other than as set out in Section 11.8 (Notices, Etc.) of the Facility Agreement shall be in
writing and signed by or on behalf of the person giving it and, unless otherwise stated, may be made or delivered personally, posted or faxed in accordance with Clause 21.3 (Delivery). 
  
 21.2 Addresses The address and fax number (and the department or officer, if
any, for whose attention the notice, other communication or document is to be made or delivered) of each party for any notice, communication or document to be made or delivered under or in connection with this Debenture is that identified with its
name below, or any substitute address, fax number or department or officer as the relevant party notifies to the other party by not less than five Business Days notice. 
  
 21.3 Delivery 
  

	(a)	Any notice, other communication or document so addressed shall be deemed to have been received: 

  

	 	(i)	if personally delivered, at the time of delivery; 

  

	 	(ii)	if sent by pre-paid, recorded delivery or registered post, two Business Days (in the place where the notice was received) after the date of posting to the relevant address;

  

	 	(iii)	if sent by registered air-mail, (in the place where the notice was received) five Business Days (in the place where the notice was received) after the date of posting to the
relevant address; and 

  

	 	(iv)	if sent by fax, as per the transmission report from the machine from which the fax was sent received in legible form, save that if such notice, communication or document is
received after normal working hours (which shall be deemed to be 8.30 a.m. and 5.30 p.m. on any Business Day in the country of the recipient), such notice, communication or document shall be deemed to have been received on the next Business Day,

  

 26 

 and, if a particular department or officer is specified as part of its address details provided under
Clause 21.2 (Addresses), if addressed to that department or officer. 
  

	(b)	Any communication or document to be made or delivered to the Security Trustee shall be effective only when actually received by the Security Trustee and then only if the same
is expressly marked for the attention of the department or officer identified with the Security Trustee’s signature below or such other department or officer as the Security Trustee shall from time to time specify for this purpose.

  

	(c)	For the avoidance of doubt, notice given under this Debenture shall not be validly served if given by e-mail. 

  

	22	COSTS AND EXPENSES 

  
 22.1 Costs and Expenses The Chargor shall, on demand of the Security Trustee, reimburse to the Security Trustee all costs and expenses (including reasonable legal fees), and any VAT thereon, reasonably
and properly incurred by the Security Trustee in connection with the negotiation, preparation, execution, modification, amendment, release and/or preservation of any of its rights under this Debenture. 
  
 22.2 Indemnity The Chargor shall indemnify the Security Trustee on demand
against any and all properly incurred costs, claims, losses, expenses (including reasonable legal fees) and liabilities, and any VAT thereon, which the Security Trustee may incur as a result of the occurrence of any Event of Default or the exercise
by the Security Trustee of any of its rights and powers under this Debenture. 
  
 22.3 Interest The amounts payable under Clauses 22.1 (Costs and Expenses) and 22.2 (Indemnity) above shall bear Default Interest (compounded monthly) (payable after as well as before judgment), from the dates on
which they were paid or incurred by the Security Trustee to the date of payment thereof by the Chargor. 
  

	23	CURRENCY OF ACCOUNT 

  
 23.1 Currency of Account All payments hereunder shall be made in immediately available funds in the currency and to the account specified by the Security Trustee in the corresponding demand. 

 
 23.2 Currency Conversion If notwithstanding Clause 23.1 (Currency of
Account) any monies are received or held by the Security Trustee in a currency other than that specified in such demand, such monies may be converted into the currency specified in the demand issued by the Security Trustee pursuant to Clause
23.1 (Currency of Account) to cover the Secured Obligations in that other currency at the spot rate of exchange quoted by a prime clearing bank selected by the Security Trustee (acting reasonably) then prevailing for purchasing that other
currency with the existing currency. 
  
 23.3 No Discharge No
payment to the Security Trustee (whether under any judgment or court order or otherwise) shall discharge the obligation or liability of the Chargor unless and until the Security Trustee shall have received payment in full in the currency in which
the obligation or liability was incurred and to the extent that the amount of any such payment shall on actual conversion into such currency fall short of such obligation or liability 

  

 27 

 
expressed in that currency the Security Trustee shall have a further separate cause of action against the Chargor to recover the amount of the shortfall.

  
 23.4 Currency Indemnity If any sum due from the Chargor under
this Debenture or any order or judgment given or made in relation hereto has to be converted from the currency (the “first currency”) in which the same is payable hereunder or under such order or judgment into another currency (the
“second currency”) for the purpose of (1) making or filing a claim or proof against the Chargor; (2) obtaining an order or judgment in any court or other tribunal; or (3) enforcing any order or judgment given or made in relation
hereto, the Chargor shall indemnify and hold harmless the Security Trustee from and against any loss suffered or incurred as a result of any discrepancy between (A) the rate of exchange used for such purpose to convert the sum in question from the
first currency into the second currency and (B) the rate or rates of exchange at which the Security Trustee may in the ordinary course of business purchase the first currency with the second currency upon receipt of a sum paid to it in satisfaction,
in whole or in part, of any such order, judgment, claim or proof. 
  

	24	ASSIGNMENTS, ETC. 

  
 24.1 The Security Trustee The Security Trustee may assign and transfer all of its respective rights and obligations hereunder to a replacement Security Trustee appointed in accordance with the terms of
the Facility Agreement. Upon such assignment and transfer taking effect, the replacement Security Trustee shall be and be deemed to be acting as Security Trustee for the Secured Parties for the purposes of this Debenture in place of the old Security
Trustee. 
  
 24.2 The Chargor No Chargor shall be entitled to
transfer or assign all or any of its rights or obligations in respect of this Debenture without the prior written consent of the Security Trustee. 
  

	25	SET-OFF 

  
 Where an Event of Default has occurred and is continuing unwaived, the Security Trustee may (but shall not be obliged to) set off any obligation which is due and payable by the Chargor and unpaid against any
obligation (whether or not matured) owed by the Security Trustee to the Chargor, regardless of the place of payment, booking branch or currency of either obligation. If the obligations are in different currencies, the Security Trustee may convert
either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off. If either obligation is unliquidated or unascertained, the Security Trustee may set off in an amount estimated by it in good faith to be
the amount of that obligation. 
  

	26	COVENANT TO RELEASE 

  
 Upon the expiry of the Security Period or as otherwise permitted under the terms of the Facility Agreement (but not otherwise), the Security Trustee shall (or procure that its nominees shall), at the request and cost
of the Chargor, execute and do all such deeds, acts and things as may be necessary to release the relevant Charged Assets from the security constituted hereby including the payment of any moneys standing to the credit of the Realisations Accounts to
the Chargor. The Security Trustee shall not be bound to return the identical Shares which were deposited, held or transferred and each Chargor shall accept Shares of the same class and denomination. 
  

 28 

	27	GOVERNING LAW 

  
 This Debenture is governed by, and shall be construed in accordance with, English law. 
  

	28	JURISDICTION OF ENGLISH COURTS 

  
 28.1 The courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this Debenture (including a dispute regarding the
existence, validity or termination of this Debenture). 
  
 28.2 The parties
to this Debenture agree that the courts of England are the most appropriate and convenient courts to settle such disputes and accordingly no party shall argue to the contrary. 
  
 28.3 This Clause 28 is for the benefit of the Secured Parties only. As a result, no Secured Party shall be prevented from taking
proceedings relating to such a dispute in any other court with jurisdiction. To the extent allowed by law, the Secured Parties may take concurrent proceedings in any number of jurisdictions. 
  

	29	COUNTERPARTS AND EFFECTIVENESS 

  
 29.1 Counterparts This Debenture may be executed in any number of counterparts, each of which when executed and delivered constitutes an original of this
Debenture, but all the counterparts shall together constitute one and the same agreement. 
  
 29.2 Effectiveness This Debenture shall come into effect as a Deed on the date set forth above. 
  
 IN WITNESS WHEREOF this Debenture has been executed as a Deed by the parties hereto on the date stated at the beginning of this Debenture. 
  

 29 

 SCHEDULE 1 
  

PART I 
  
 INTELLECTUAL PROPERTY RIGHTS 
  
 None 
  

  
 SCHEDULE 1 

 
 PART II 
  
 CHARGED SHARES 
  
 None 
  

 31 

  
 SCHEDULE 2 

 
 NOTICE OF ASSIGNMENT OF INSURANCES 
  
 PART I 
  
 FORM OF NOTICE OF ASSIGNMENT OF INSURANCES 
  

	To:	[Insert name of Insurer] 

  
 [Date] 
  
 Dear Sirs 
  
 We hereby give you notice that, by a
Debenture dated 11 February 2005 (the “Debenture”), Constar International U.K. Limited (the “Company”) charged (by way of a first fixed charge) to Citibank, N.A., London Branch (as security trustee,
the “Security Trustee”) all of its rights, title, interest and benefits in respect of the Insurances (as defined in the Debenture) (which includes the insurance policies with you set out below) and all claims and returns of
premiums in respect thereof to which the Company is or may at a future time become entitled. Pursuant to the terms of the Debenture and the Facility Agreement (as defined in the Debenture) please note the name and details of the Security Trustee
(details of whom are set out in the schedule attached hereto) and the Security Trustee (as trustee and loss payee). The Security Trustee, by its counter-signature hereto, hereby directs that all rights accruing to it under the Debenture relating to
the Insurances be exercised as set out below. 
  

	1	After your receipt of this notice we hereby request that following the occurrence of an Event of Default which is continuing (as defined in the Debenture and as notified to
you by the Security Trustee): 

  

	(a)	all payments under or arising from the Insurances should be made to the Security Trustee or to its order; 

  

	(b)	all remedies provided for in the Insurances or available at law or in equity are exercisable by the Security Trustee; and 

  

	(c)	all rights to compel the performance of the Insurances are exercisable by the Security Trustee; 

  

	(d)	all rights, interests and benefits whatsoever accruing to or the benefit of ourselves arising from the Insurances belong to the Security Trustee; 

  

	2	You will give notice to the Security Trustee in writing: 

  

	(a)	if the Company proposes to cancel or gives notice of cancellation of any Insurance at least 30 days before such cancellation is to take effect; 

  

	(b)	of any material alteration or, the termination or expiry of any such Insurance at least 30 days before such alteration, termination or expiry is to take effect; and

  

 32 

	(c)	promptly of any default in the payment of any premium or failure to renew any such Insurance and shall give the Security Trustee not less than 30 days in which to pay the
defaulted premium without cancelling the policy during such 30 days period. 

  
 This letter shall be governed by and construed in accordance with English law. 
  
 Would you please confirm your agreement to the above by sending the enclosed acknowledgement to the Security Trustee with a copy to ourselves. 
  
 The Insurances to which this letter relates are, as at the date hereof as follows: 
  
 [Insert details of insurance policies] 
  

	
	Yours faithfully
	
	  
	(Authorised signatory)
	Constar International U.K. Limited

  

	
	
	  
	Citibank, N.A., London Branch
	as Security Trustee

  
 Encs 
  

 33 

  
 SCHEDULE 2 

 
 NOTICE OF ASSIGNMENT OF INSURANCES 
  
 PART II 
  
 FORM OF ACKNOWLEDGEMENT OF ASSIGNMENT OF INSURANCES 
  

	To:	Citibank, N.A., London Branch (as Security Trustee) 

  
 Citibank Centre 
 Canada Square 
 Canary Wharf 
 London 
 E14 5LB 
  
 338 Greenwich Street 
 19th Floor 

New York 
 New York 10013 
  
 Attention: David Jaffe, Director 
  
 [Date] 
  
 Dear Sirs 
  
 We confirm receipt from Constar International U.K. Limited (the “Company”) of a notice dated
[            ] February 2005 (the “Notice”) of a charge upon the terms of a Debenture dated 11 February 2005 (the “Debenture”) of all of its
rights, title, interest and benefits in respect of the Insurances (as defined in the Debenture) (which includes the insurance policies set out in the Notice) and all claims and returns of premiums in respect thereof to which the Company is or may at
a future time become entitled. 
  
 We confirm that we shall hereafter act in
accordance with the Notice and that we have not received notice of any third party interests in the Insurances (as defined in the Notice). 
  
 This letter shall be governed by construed in accordance with English law. 
  

	
	Yours faithfully
	
	  
	(Authorised signatory)
	[Insert name of Insurer]

  

 34 

  
 SCHEDULE 3 

 
 NOTICE TO ACCOUNT BANK 
  
 PART I 
  
 FORM OF NOTICE OF CHARGE OVER BANK ACCOUNTS 
  

	To:	National Westminster Bank plc 

 Bishopsgate 
 London 
 EC2P 2AP 
  
 Sort Code 50-00-00 
  
 [Date] 
  
 Dear Sirs 
  
 We hereby give you notice that, by a Debenture dated 11 February 2005 (the “Debenture”), Constar International U.K. Limited have charged (by way
of a first fixed charge) to Citibank, N.A., London Branch (as security trustee, the “Security Trustee”) all moneys (including interest) from time to time standing to the credit of each of its present and future accounts with
any bank, financial institution or other person, which includes the accounts numbered 20501102, 23500077 and 23500069 (GBP, Euro and USD accounts respectively) held with you (the “Accounts”) and the debt or debts represented
thereby. 
  
 We hereby irrevocably instruct and authorise you to: 
  

	(a)	disclose to the Security Trustee without any reference to or further authority from us and without any inquiry by you as to the justification for such disclosure, such
information relating to any of the Accounts maintained with you from time to time as the Security Trustee may, at any time and from time to time, request you to disclose to it; and 

  

	(b)	following notice from the Security Trustee of the occurrence of an Event of Default (as such term is defined in the Debenture) which is continuing, act solely in accordance
with the instructions of the Security Trustee which include, but are not limited to, the following: 

  

	 	(i)	hold all sums from time to time standing to the credit of the Accounts maintained with you in our name to the order of the Security Trustee; 

  

	 	(ii)	pay or release all or any part of the sums from time to time standing to the credit of the Accounts maintained with you in our name in accordance with the written
instructions of the Security Trustee at any time or times; and 

  

	 	(iii)	 comply with the terms of any written notice or instructions in any way relating to or purporting to relate to the assignment specified above, the sums
standing to the credit of the Accounts maintained with you in our name from time to 

  

 35 

	 	 
time or the debts represented thereby which you receive at any time from the Security Trustee without any reference to or further authority from us and
without any inquiry by you as to the justification for or validity of such notice or instructions. 

  
 Please also note that these instructions are not to be revoked or varied without the prior written consent of the Security Trustee. 
  
 This letter shall be governed by and construed in accordance with English law. 
  
 Would you please confirm your agreement to the above by sending the enclosed acknowledgement
to the Security Trustee with a copy to ourselves. 
  

	
	Yours faithfully
	
	  
	(Authorised signatory)
	Constar International U.K. Limited

  
 Encs 
  

 36 

  
 SCHEDULE 3 

 
 NOTICE TO ACCOUNT BANK 
  
 PART II 
  
 FORM OF ACKNOWLEDGEMENT OF CHARGE OVER BANK ACCOUNTS 
  

	To:	Citibank, N.A., London Branch (as Security Trustee) 

  
 Citibank Centre 
 Canada Square 
 Canary Wharf 
 London 
 E14 5LB 
  
 338 Greenwich Street 
 19th Floor 

New York 
 New York 10013 
  
 Attention: David Jaffe, Director 
  
 [Date] 
  
 Dear Sirs 
  
 We confirm receipt from Constar International U.K. Limited (the “Company”) of a notice dated [        ] of
a charge upon the terms of a Debenture dated 11 February 2005 (the “Debenture”) of all moneys (including interest) from time to time standing to the credit of each of the Company’s present and future accounts with us
(the “Accounts”) and the debt or debts represented thereby. 
  
 We confirm that we accept the instructions and authorisations contained in that notice and we undertake to act in accordance with the terms of that notice. 
  
 We further wish to advise you that: 
  

	(i)	we have not received notice of the interest of any third party in the Accounts; 

  

	(ii)	subject to your letter to us of [date] (i.e. the letter of operation) we have neither claimed or exercised nor will claim or exercise any security interest, set-off, counterclaim or
other rights in respect of the Accounts, the sums therein or the debts represented thereby without your prior written consent; 

  

	(iii)	we shall pay all monies received by us for the account of the Company to (and only to) the credit of the Accounts in the name of the Company specified in that notice unless
otherwise consented to by you; and 

  

 37 

	(iv)	following notice from you of the occurrence of an Event of Default (as defined in the Debenture) which is continuing we shall not permit any amount to be withdrawn from any of the
Accounts without your prior written consent. 

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

	
	Yours faithfully
	
	  
	(Authorised signatory)
	National Westminster Bank plc

  

 38 

  
 SCHEDULE 4 

 
 NOTICE OF ASSIGNMENT OF MATERIAL CONTRACT 
  
 PART I 
  
 FORM OF NOTICE OF ASSIGNMENT 
  

	To:	[Insert Name and Address of Counterparty to Material Contract] 

  

[Date] 
  
 We refer to the [Describe Material Contract] between [Insert name of counterparty] and Constar International U.K. Limited (the “Company”) dated
[                                ] (the “Contract”). 

 
 We hereby inform you that by a Debenture dated 11 February 2005 (the
“Debenture”), the Company charged (by way of first ranking fixed and floating charges) to Citibank, N.A., London Branch (the “Security Trustee”, as security trustee for various lenders under a credit
agreement dated 11 February 2005 (as amended from time to time the “Facility Agreement”)) all its benefits in respect of the Contract and all moneys due in respect thereof to which the Company is or may at a future time
become entitled as security for its obligations under the guarantee in substantially the form attached as Exhibit H (Form of Guaranty) to the Facility Agreement (the “Guarantee”). 
  
 By this letter the Company requests you to recognise the Security Trustee’s right to
payment in respect of and security interest in the Contract. 
  
 The Company
requests that after your receipt of this notice, all payments by you to the Company under or arising from the Contract should be made to a collections account of the Company approved by the Security Trustee which, as at the date of the Debenture, is
the account held by the Company at National Westminster Bank plc, Bishopsgate, London EC2P 2AP, Sort Code 50-00-00, and includes accounts numbered 20501102, 23500077 and 23500069 (GBP, Euro and USD accounts respectively), and if you are notified by
the Security Trustee that an Event of Default (as defined in the Debenture) has occurred which is continuing: 
  

	(a)	all payments by you to the Company under or arising from the Contract should be made to the Security Trustee (being Citibank, N.A., London Branch) or to its order as it may
specify in writing from time to time; 

  

	(b)	all remedies provided for in the Contract or available at law or in equity are exercisable by the Security Trustee; 

  

	(c)	all rights to compel performance of the Contract are exercisable by the Security Trustee although the Company shall remain liable to perform all the obligations undertaken by
it in the Contract; 

  

	(d)	 all rights, interests and benefits whatsoever accruing to or for the benefit of the Company arising from the Contract belong to the Security Trustee and no
changes 

  

 39 

	 	 
may be made to the terms of the Contract nor may the Contract be terminated without the Security Trustee’s consent; and 

  

	(e)	you are authorised and instructed, without requiring further approval from the Company, to provide the Security Trustee with such information relating to the Contract as it
may from time to time request and to send it copies of all notices issued by you under the Contract to the Security Trustee as well as to the Company. 

  
 These instructions may not be revoked, varied or waived without the prior written consent of the Security Trustee. 
  
 Kindly acknowledge receipt of this notice by signing the attached Acknowledgement and
Confirmation and returning the same to the Security Trustee at Citibank, N.A., London Branch, Citibank Centre, Canada Square, Canary Wharf, London E14 5LB and 338 Greenwich Street, 19th Floor, New York, New York 10013. 
  
 For and on behalf of 
  
 Constar International U.K. Limited 
  

 40 

  
 SCHEDULE 4 

 
 NOTICE OF ASSIGNMENT OF MATERIAL CONTRACT 
  
 PART II 
  
 FORM OF ACKNOWLEDGEMENT OF ASSIGNMENT OF MATERIAL CONTRACTS 
  

	To:	Citibank, N.A., London Branch as Security Trustee for and on behalf of the Secured Parties 

  
 Citibank Centre 
 Canada Square 
 Canary Wharf 
 London 
 E14 5LB 
  
 338 Greenwich Street 
 19th Floor 

New York 
 New York 10013 
  
 Attention: David Jaffe, Director 
  
 [Date] 
  
 Notice of Assignment 
  
 We hereby acknowledge receipt of the Notice of Assignment dated [        ] (the “Notice”) (a copy of which
is attached hereto) from Constar International U.K. Limited ( the “Company”). 
  
 We hereby acknowledge the Notice and confirm that we shall hereafter act in accordance with the terms of the Notice. 
  
 For and on behalf of 
  
 [Insert Name of Counterparty] 
  

 41 

  
 SIGNATORIES

  

			
	 Executed as a deed by
	  	)
	CONSTAR INTERNATIONAL U.K. LIMITED	  	)

  

							
	 /s/ F. E. GREGORY
	 	Signature of director	 	/s/ I. ATKINSON	 	Signature of secretary
				
	 Frank Edward Gregory
	 	Name of director	 	Ian Michael Atkinson	 	Name of secretary

  

			
	 Address:
	 	 Moore Lane Trading Estate
 Sherburn-in-Elmet
 North Yorkshire L S25 6ES

  
 Fax number: 01977 882090 

 
 Attn 
  

			
	THE SECURITY TRUSTEE
	
	CITIBANK, N.A., LONDON BRANCH
		
	By:	 	/s/ DAVID JAFFE
	
	Address:
	
	Fax No:
	
	Attn:

  

 42

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