Document:

Exhibit 10.6

 

INTERCREDITOR
AGREEMENT

 

dated
16 December, 2005

 

among

 

THE
COMPANIES NAMED HEREIN

as
Companies

 

and

 

THE
BANK OF NEW YORK

as
Trustee, Collateral Agent and Subordinated Security Trustee

 

and

 

THE
GOVERNOR AND COMPANY OF THE BANK OF

SCOTLAND

as
Agent and Senior Security Trustee

 

 

re:

PROJECT
PIPE

 

 

5 Old
Bailey, London  EC4M 7JX   DX 123 LONDON/CHANCERY LANE    Tel 020 7002 8573     Fax 020 7002 8501

www.mms.co.uk

 

Ref:
TMGA/SMK/BAN/1/469/jld

 

 

TABLE
OF CONTENTS

 

	
  Clause

  	
   

  	
   

  	
  Page No.

  
	
   

  	
   

  	
   

  	
   

  
	
  1

  	
  DEFINITIONS AND INTERPRETATION

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  2

  	
  PURPOSE AND PRIORITY OF SECURITY

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  3

  	
  CREDITORS UNDERTAKINGS

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  4

  	
  SUPREMACY OF AGREEMENT

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  5

  	
  TURNOVER

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  6

  	
  ENFORCEMENT BY CREDITORS

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  7

  	
  PERMITTED ENFORCEMENT

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  8

  	
  PROCEEDS OF ENFORCEMENT OF SECURITY

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
  9

  	
  RELEASE OF SECURITY ON ENFORCEMENT

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  10

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  11

  	
  OPTION TO PURCHASE

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  12

  	
  INFORMATION BETWEEN PARTIES

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
  13

  	
  SUBROGATION

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  14

  	
  PROTECTION OF SUBORDINATION

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  15

  	
  PRESERVATION OF SECURED DEBT

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  16

  	
  POWER OF ATTORNEY

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  17

  	
  EXPENSES

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  18

  	
  NOTICES

  	
   

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  19

  	
  CUMULATIVE REMEDIES AND WAIVERS

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
  20

  	
  AMENDMENTS AND WAIVERS

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  21

  	
  SEVERABILITY

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  22

  	
  TRANSFERS

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  23

  	
  COUNTERPARTS

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  24

  	
  SUPREMACY

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  25

  	
  EXPIRY

  	
   

  	
  22

  

 

i

 

	
  26

  	
  SUBORDINATED SECURED FINANCE PARTIES NOMINEES

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  27

  	
  PERPETUITY

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  28

  	
  SET OFF AND COUNTERCLAIM

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  29

  	
  GOVERNING LAW AND JURISDICTION

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  30

  	
  SERVICE OF PROCESS

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  31

  	
  THE SECURITY TRUSTEES

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 1 -
  The Companies

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE 2 - Form of
  Deed of Accession for New Companies

  	
   

  	
  28

  

 

ii

 

THIS INTERCREDITOR
AGREEMENT is entered into as a deed on 16 December, 2005

 

AMONG:

 

(1)                                           THE COMPANIES
named in Schedule 1 (collectively the “Companies” and each a “Company”);

 

(2)                                           THE BANK OF NEW YORK as Trustee (in such capacity, the “Trustee”) and Collateral Agent (in
such capacity the “Collateral Agent”) under the Indenture (as defined below)
and referred to herein as the “Subordinated Security Trustee”;

 

(3)                                           THE GOVERNOR AND COMPANY OF THE BANK OF
SCOTLAND as Agent of the other Senior Secured
Finance Parties (in such capacity, the “Agent”); and

 

(4)                                           THE GOVERNOR AND COMPANY OF THE BANK OF
SCOTLAND as Security Trustee (in such capacity, the
“Senior Security Trustee”) of the other Senior Secured Finance Parties.

 

1.                                                 DEFINITIONS AND INTERPRETATION

 

1.1                                           In this Agreement, unless the context otherwise requires:-

 

	
   

  	
  “Additional Liabilities”

  	
   

  	
  means in
  relation to a Secured Debt, any money or liability which arises or is
  incurred as a result of or in connection with: 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (a)                                  any deferral, extension, novation or refinancing of that Secured
  Debt; 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (b)                                 any claim for damages, restitution or otherwise made in connection
  with that Secured Debt; 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (c)                                  any claim against a Company resulting from a recovery by that
  Company or any other person of a payment or discharge in respect of that
  Secured Debt on the grounds of preference or otherwise; or 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (d)                                 any amount (including post-insolvency interest) which would be
  included in any of the foregoing but for any discharge, non-provability,
  unenforceability or non-allowability of the same in any insolvency or other
  proceedings;

  

 

1

 

	
   

  	
  “Administrator”

  	
   

  	
  means a person appointed under Schedule B1
  of the Insolvency Act 1986 to manage a Company’s affairs, business and/or property;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Agreement”

  	
   

  	
  means this intercreditor agreement;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Borrower”

  	
   

  	
  means Murray International Metals Limited
  (Company Number 01241058) having its registered office at 95 High Street,
  Edgware, Middlesex HA8 7DB and each member of the Group which is or becomes a
  borrower under a Senior Finance Document;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Business Day”

  	
   

  	
  means a day (other than a Saturday or
  Sunday) on which banks are generally open for business in Edinburgh and
  London;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Clawback”

  	
   

  	
  means any payment or repayment to any of
  the Senior Secured Finance Parties or the Subordinated Secured Finance
  Parties (as the case may be) of monies received by them and applied in
  or towards the payment and discharge of any Secured Debt which is required by
  any agreement, law or regulation to be paid or repaid as the case may be
  to any Company or any other person;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Deed of Accession”

  	
   

  	
  means a deed entered into pursuant to
  Clause 22 (Transfers)
  substantially in the form set out in Schedule 2 (Form of Deed of Accession for New Parties);

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Discharge of the
  Senior

  Secured Debt”

  	
   

  	
  means payment or discharge in full of the
  Senior Secured Debt (other than any Senior Secured Debt that constitutes
  Excess Senior Secured Debt), whether or not as a result of enforcement;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Enforcement Action”

  	
   

  	
  means in
  relation to any Secured Party, any action by such Secured Party whatsoever
  to: 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (a)                                  declare prematurely due and payable (in respect of the Secured
  Debt held by such Secured Party which was not expressed to be on demand) all
  or any part of that Secured Debt; 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (b)                                 recover or enforce all or any part of that Secured Debt
  (including by exercising any Security Enforcement Action) by action against
  any member of the Group; 

  

 

2

 

	
   

  	
   

  	
   

  	
  (c)                                  petition for (or take any other procedural steps which may lead
  to) an Insolvency Event in relation to any member of the Group; or 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (d)                                 commence legal proceedings (including an injunction or other
  process) against any Company;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Enforcement Date”

  	
   

  	
  means the date on which a Secured Party
  takes any Security Enforcement Action;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Excess Senior Secured

  Debt”

  	
   

  	
  means the Senior Secured Debt consisting of
  principal (including, the principal amount of any loan, the stated amount or
  reimbursement obligation of any Letter of Credit or similar amount (which for
  the avoidance of doubt shall not consist of interest, fees or
  indemnifications) in an aggregate amount exceeding the principal amount of
  Senior Secured Debt that could have been secured by a Permitted Lien (as
  defined in the Indenture as in effect on the date hereof) described in clause
  (16) of the definition thereof less (without duplication of any reductions
  effected pursuant to clause (2) of the definition of the term ‘Permitted
  Indebtedness (as defined in the Indenture as in effect on the date hereof))
  any permanent reduction of the revolving commitments under the Senior
  Facility Agreement;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Group”

  	
   

  	
  means the Companies and any Subsidiary of
  the Companies from time to time;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Indenture”

  	
   

  	
  means the Indenture dated on or around the
  date of this Agreement among Pipe Acquisition Finance PLC, Pipe Acquisition
  Limited, the Guarantors (as defined therein), the Trustee and the Collateral
  Agent;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Insolvency Event”

  	
   

  	
  means: 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (a)                                  in relation to the Subordinated Secured Debt, an “Insolvency Event”
  as defined in the Indenture; or 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (b)                                 in relation to the Senior Secured Debt, any of the events
  described in Clause 28.6 (Insolvency)
  to 28.8 (Creditors’ Process) of
  the Senior Facility Agreement or any

  

 

3

 

	
   

  	
   

  	
   

  	
  analogous
  procedure in any jurisdiction;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Letter of Credit”

  	
   

  	
  means any letter of credit, guarantee,
  performance bond, indemnity or other instrument in a form requested by
  the Borrower and agreed by the Agent and Issuing Bank in accordance with the
  terms of the Senior Facility Agreement;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Newbridge Lease”

  	
   

  	
  means the lease dated on or around the date
  of this Agreement between Steels (UK) QRS 16-58, Inc. as landlord and
  Murray International Metals Limited as tenant in respect of the land and
  buildings located at Newbridge Industrial Estate, Newbridge, Midlothian;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Note Documents”

  	
   

  	
  means the Indenture, the Notes (as defined
  in the Indenture), the Guarantees (as defined in the Indenture) and the
  Subordinated Security Documents;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Noteholder”

  	
   

  	
  means a Holder of Notes as such terms are
  defined in the Indenture;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Party”

  	
   

  	
  means a party to this Agreement;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Real Property”

  	
   

  	
  means the property at 49 Coniscliffe Road,
  Darlington registered at H.M. Land Registry under title number DU41858;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Receiver”

  	
   

  	
  means a receiver or receiver and manager or
  administrative receiver of the whole or any part of the assets of a
  Company which from time to time are, or are expressed to be, the subject of
  the Security created or purported to be created pursuant to the Security
  Documents;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Relevant Documents”

  	
   

  	
  means in connection with the Senior Secured
  Debt, any of the Senior Finance Documents and in connection with the
  Subordinated Secured Debt, the Note Documents;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Responsible
  Officer”

  	
   

  	
  has the meaning given to that term in
  Clause 1.7;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Secured Debt”

  	
   

  	
  means each of the Senior Secured Debt and
  the Subordinated Secured Debt;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Secured Parties”

  	
   

  	
  means each of the Senior Secured Finance
  Parties and the 

  

 

4

 

	
   

  	
   

  	
   

  	
  Subordinated Secured Finance Parties;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Security”

  	
   

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

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Security Trustee”

  	
   

  	
  means each of the Senior Security Trustee
  and the Subordinated Security Trustee;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Security Documents”

  	
   

  	
  means in connection with the Senior Secured
  Debt, the Senior Security Documents and in connection with the Subordinated
  Secured Debt, the Subordinated Security Documents;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Security Enforcement Action”

  	
   

  	
  means in
  relation to any Secured Party, any action whatsoever by such Secured Party to
  exercise or enforce any Security conferred on or for the benefit of it or any
  other Secured Party by the Security Documents on any asset of a Company,
  including without limitation any such action to: 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (a)                                  enforce such Security by disposal (by sale or otherwise) of any
  such asset; 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (b)                                 appoint a Receiver for the orderly sale or liquidation of any such
  asset; 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (c)                                  appoint an Administrator; 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (d)                                 exercise any right of set-off or combination of accounts or by way
  of attachment by such Secured Party against any such asset; 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (e)                                  commence legal proceedings (including an injunction or other
  process) against any Company for the purpose of enforcing such Security; and 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (f)                                    crystallise any floating charge in any Security Document.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Senior Secured
  Debt”

  	
   

  	
  means all present and future liabilities
  and obligations (whether actual or contingent) which now or hereafter may be
  or become due and owing by the Companies or any of them to the Senior Secured
  Finance Parties under or pursuant to the Senior Finance Documents 

  

 

5

 

	
   

  	
   

  	
   

  	
  together with all Additional Liabilities
  relating thereto (including any increase or reinstatement of such liabilities
  resulting from the operation of a Clawback);

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Senior Security

  Documents”

  	
   

  	
  means the “Transaction Security Documents”
  as defined in the Senior Facility Agreement;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Senior Facility

  Agreement”

  	
   

  	
  means the facility agreement dated on or
  around the date of this Agreement among, inter
  alia, the Borrower and the Senior Secured Finance Parties in
  relation to multicurrency revolving credit facilities of up to £27,000,000;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Senior Finance

  Documents”

  	
   

  	
  means the “Finance Documents” as defined in
  the Senior Facility Agreement;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Senior Secured
  Finance

  Parties”

  	
   

  	
  means the “Finance Parties” as defined in
  the Senior Facility Agreement;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Subordinated
  Secured

  Debt”

  	
   

  	
  means all present and future liabilities
  and obligations (whether actual or contingent and whether owed jointly or
  severally or in any capacity whatsoever) which now or hereafter may be
  or become due and owing by the Companies or any of them to the Subordinated
  Secured Finance Parties pursuant to the Subordinated Security Documents
  together with all Additional Liabilities relating thereto (including any
  increase or reinstatement of such liabilities resulting from the operation of
  a Clawback);

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Subordinated
  Secured

  Finance Parties”

  	
   

  	
  means the Trustee, the Collateral Agent and
  the Noteholders ;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Subordinated
  Security

  Documents”

  	
   

  	
  means the “Collateral Agreements” as
  defined in the Indenture;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Subordinated
  Security

  Trustee Amounts”

  	
   

  	
  means the fees, costs and expenses of the
  Subordinated Security Trustee (for the avoidance of doubt, including any
  amount payable to the Trustee personally by way of indemnity, remuneration or
  to reimburse it for expenses incurred) payable to the Subordinated Security
  Trustee for its own account pursuant to the Note Documents and the costs of
  any actual or attempted Security Enforcement Action in accordance with the
  provisions of this 

  

 

6

 

	
   

  	
   

  	
   

  	
  Agreement and the Indenture (including
  legal and other professional advisory fees) which are recoverable pursuant to
  the terms of the Indenture (including guarantees of such amounts contained
  therein) or any other document entered into in connection with the issuance
  of the Notes (as defined in the Indenture), but excluding any costs and expenses
  incurred in respect of bringing any suit, claim, action or proceedings
  against the Agent or any other Senior Secured Finance Party.

  

 

1.2                                           In this Agreement, a reference to:-

 

1.2.1                                 any “Company” or any “Secured Party” or any other person shall
include any person deriving title from them or any permitted assigns and
permitted transferees and in the case of any Secured Party that is the Agent,
the Trustee, the Collateral Agent, the Subordinated Security Trustee or the
Senior Security Trustee, any person for the time being appointed as such under
this Agreement;

 

1.2.2                                 a document is a reference to that document as amended, novated,
supplemented or replaced in whole or in part (however fundamentally);

 

1.2.3                                 an enactment includes references to any amendment, enactment and/or
legislation subordinate to that enactment and/or any permission of whatever
kind under the enactment;

 

1.2.4                                 a “Clause”, “paragraph”, “sub-paragraph” or the “Schedule”
are to a clause, paragraph, sub-paragraph of, and the schedule to, this
Agreement;

 

1.2.5                                 A Company “repaying” or
“prepaying” Senior Secured Debt
includes:

 

(a)                         that Company providing cash cover for any Letter of Credit;

 

(b)                        the maximum amount payable under any Letter of Credit being reduced
or cancelled in accordance with its terms; or

 

(c)                         the Issuing Bank of such Letter of Credit being satisfied that it
has no further liability thereunder,

 

and the amount by which any Letter of Credit
is repaid or prepaid under sub-paragraphs 1.2.5(a) and (b) above
is the amount of the relevant cash cover or reduction.

 

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

 

7

 

1.4                                           The headings in this Agreement shall not affect its interpretation.

 

1.5                                           Unless the context dictates otherwise, terms defined in the Senior
Facility Agreement shall bear the same meaning in this Agreement.

 

1.6                                           All obligations and undertakings in favour of each of the Agent and
the Senior Security Trustee contained in this Agreement or any actions taken by
it under this Agreement are made, created and entered into in favour of it in
its capacity as such for and on behalf of the Senior Secured Finance Parties
from time to time on the terms set out in the Senior Facility Agreement, and
all obligations and undertakings in favour of each of the Trustee and the
Subordinated Security Trustee contained in this Agreement or any actions taken
by it under this Agreement are made, created and entered into in favour of it
in its capacity as such for and on behalf of the Noteholders from time to time
on the terms set out in the Indenture.

 

1.7                                           References to actual knowledge of the Subordinated Security Trustee
shall be construed to mean that the Subordinated Security Trustee shall not be
charged with knowledge (actual or otherwise) of the existence of facts that
would impose an obligation on it to make any payment or prohibit it from making
any payment unless a Responsible Officer of the Subordinated Security Trustee
has received written notice from the Agent or the Senior Security Trustee by 10 a.m.
on the previous Business Day (or earlier) that such payments are required or
prohibited by this Agreement. For the purposes of this Agreement, delivery of
the notice will be effective only when actually received by a Responsible
Officer and then only if it is expressly marked for the attention of a
Responsible Officer; and a “Responsible
Officer” in this Agreement means any person who (i) is an
officer within the corporate trust and agency department of the Subordinated
Security Trustee, including any vice president, assistant vice president,
assistant treasurer, trust officer or any other officer of the Subordinated
Security Trustee who customarily performs functions similar to those performed
by these officers or (ii) is notified by the Subordinated Security Trustee
as identified herein in accordance with Clause 18 (Notices).

 

2.                                                 PURPOSE AND PRIORITY OF SECURITY

 

2.1                                           The purpose of this Agreement is that, subject only as expressly
provided in this Agreement to the contrary, all Security conferred on or for
the benefit of the Secured Parties by the Security Documents will for all
purposes and at all times:

 

2.1.1                                 in the case of the Security conferred on or for the benefit of the
Senior Secured Finance Parties by the Senior Security Documents,

 

8

 

(a)                         secure the Senior Secured Debt in priority to the Security conferred
on the Subordinated Secured Finance Parties by the Subordinated Security
Documents; and

 

(b)                        rank as Security for the Senior Secured Debt in priority to the
Security for the Subordinated Secured Debt,

 

in each case, to the extent that such Senior
Secured Debt does not constitute Excess Senior Secured Debt; and

 

2.1.2                                 all Security conferred on or for the benefit of the Subordinated
Secured Finance Parties by the Subordinated Security Documents,

 

(a)                         secure the Subordinated Secured Debt in priority to the Security
conferred on the Senior Secured Finance Parties by the Senior Security
Documents; and

 

(b)                        rank as Security for the Subordinated Secured Debt in priority to
the Security for the Senior Secured Debt,

 

in each case, to the extent that such Senior
Secured Debt constitutes Excess Senior Secured Debt,

 

and that as between the Senior Secured
Finance Parties and the Subordinated Secured Finance Parties such order of
priorities shall prevail irrespective of whether or not an Insolvency Event
shall have occurred so that before and after the occurrence of an Insolvency
Event, and unless expressly provided to the contrary in this Agreement, a
Security which ranks after other Security in the foregoing order of priorities
shall be subordinate to those other Security as provided herein.

 

2.2                                           Purpose

 

2.2.1                                 Each Security Trustee agrees on behalf of itself and the other
Secured Parties on whose behalf it acts, to regulate its and their rights in
respect of the Security conferred on such Secured Parties under their Security
Documents in the manner set out in this Agreement.

 

2.2.2                                 Each Company enters into this Agreement for the purpose of
acknowledging the arrangements among the Secured Parties regulating their
rights in respect of the Security conferred on such Secured Parties under their
Security Documents in the manner set out in this Agreement; and:

 

9

 

(a)                         expressly authorises them to enforce their Relevant Documents in
such order as provided for in this Agreement or in such other order as the
Secured Parties may agree between themselves; and

 

(b)                        irrevocably waives any rights which it may now or in future
have to challenge or have set aside any arrangements as agreed between the
Secured Parties.

 

2.2.3                                 None of the undertakings in this Agreement on the part of any
Secured Party is given to any Company or any other person (other than a Secured
Party) or shall be enforceable by any Company or any other person (other than a
Secured Party).

 

2.2.4                                 Each Company undertakes to each Secured Party to comply with the
provisions of this Agreement at all times and not in any way to prejudice or affect
the enforcement of those provisions or to do or omit to do anything in breach
of the terms of this Agreement.

 

2.2.5                                 Not in limitation, but in furtherance of the agreements set forth in
Clause 2.2.2, each of the Security Trustees agree, on behalf of itself and the
other Secured Parties on whose behalf it is acting, that neither it nor any of
them shall (and hereby waives, on behalf of itself and those other Secured
Parties any right to) take any action to contest or challenge (or assist or
support any other person in contesting or challenging), directly or indirectly,
whether or not in any proceeding (including any proceeding arising in
connection with an Insolvency Event), the validity, priority or perfection of
Security conferred on the other Secured Parties under their Security Documents.

 

2.2.6                                 No Senior Secured Finance Party shall be responsible to any
Subordinated Secured Finance Party for any action taken or not taken in
relation to the Senior Security Documents provided in each case they acted in
good faith and not in contravention of the terms hereof, and no Subordinated
Secured Finance Party shall be responsible to any Senior Secured Finance Party
for any action taken or not taken in relation to the Subordinated Security
Documents provided in each case they acted in good faith and not in
contravention of the terms hereof.

 

2.3                                           Real Property

 

The Security constituted by the Security
Documents includes a legal charge over the Real Property and the Parties
acknowledge for the purposes of complying with any registration requirements of
H.M. Land Registry or otherwise that the reference to “Security” in this
Agreement includes the legal charge over the Real Property and the priority of
the Security as set out in Clause 2.1 applies to such Real Property.

 

10

 

3.                                                 CREDITORS UNDERTAKINGS

 

3.1                                           Until the Discharge of the Senior Secured Debt, except with the
prior written consent of the Agent, the Subordinated Secured Finance Parties
shall not:

 

3.1.1                                 amend, vary, waive or release any term of any of the Note Documents
that is in the reasonable opinion of the Agent adverse in any material respect
to the rights of any Senior Secured Finance Party; or

 

3.1.2                                 take or omit to take any action whereby the rights conferred upon
the Senior Secured Finance Parties pursuant to and as contemplated by this
Agreement may be impaired.

 

3.2                                           In the event that any term of any Note Document is amended, varied,
waived or released in any respect the Subordinated Security Trustee will as
soon as reasonably practicable following such amendment, variation, waiver or
release, deliver to the Senior Security Trustee a copy of any such amendment,
variation, waiver or release.

 

4.                                                 SUPREMACY OF AGREEMENT

 

4.1                                           If there is any inconsistency between the terms of this Agreement
and the terms of any Note Document or any Senior Finance Document, the terms of
this Agreement shall prevail; provided,
however, that no term of this
Agreement shall relieve any member of the Group of any of its obligations under
any Note Document or any Senior Finance Document and provided further, for the
avoidance of doubt, nothing in this Agreement shall prevent payment of any
amounts (prior to the taking of any Enforcement Action) payable to the Trustee,
each Security Trustee, the Agent or the Collateral Agent, as the case may be,
at any time as and when the same are due and payable.

 

5.                                                 TURNOVER

 

5.1                                           Turnover Obligations

 

If at any time after an Enforcement Date:

 

5.1.1                                 any Secured Party receives a payment from any Security Enforcement
Action made by or on behalf of such Secured Party; or

 

5.1.2                                 any Secured Party receives a payment from the trustee in bankruptcy,
liquidator, other insolvency practitioner or similar officer, assignee or other
person distributing the assets of any Company that are subject of any Security
conferred upon such Secured 

 

11

 

Party under its Security
Documents or their proceeds following the occurrence of an Insolvency Event,

 

then such Secured Party shall hold the same
on trust for and promptly pay to (a) until the Discharge of the Senior
Secured Debt has occurred, the Senior Security Trustee and (b) following
the occurrence of the Discharge of the Senior Secured Debt, the Subordinated
Security Trustee, in each case, for application in accordance with Clause 8 (Proceeds of Enforcement of Security).

 

5.2                                           Failure of Trusts

 

If for any reason any trust which is to arise
(pending payment or any assets or monies in accordance with Clause 8 (Proceeds of Enforcement of Security))
pursuant to Clause 5.1 fails or for any reason cannot be given effect to
(including without limitation, by reason of the laws of any jurisdiction in
which any assets or monies may be situated), the relevant Security Trustee
will (subject to Clause 5.3) pay to the relevant party in accordance with
Clause 8  (Proceeds of Enforcement of Security) an amount equal to the
amount (or the value of the relevant asset) intended to be so held on trust for
such relevant party.

 

5.3                                           If, at any time after an Enforcement Date, the Subordinated Security
Trustee receives and recovers any amount in respect of the Subordinated Secured
Debt, the Subordinated Security Trustee shall, subject to having not less than
two Business Days’ prior actual knowledge of the aforementioned Enforcement
Date and not having paid out such amount, hold such amount in accordance with
Clause 5.1.

 

6.                                                 ENFORCEMENT BY CREDITORS

 

Until the Discharge of the Senior Secured
Debt, subject to Clause 7, and unless the Senior Security Trustee has
previously consented in writing, none of the Subordinated Secured Finance
Parties shall take any Security Enforcement Action.

 

7.                                                 PERMITTED ENFORCEMENT

 

7.1                                           The Subordinated Secured Finance Parties may (but shall not be
obliged to) take action in relation to the Subordinated Security Documents
which would otherwise be prohibited by Clause 6 if (but only if):

 

7.1.1                                 an Event of Default under, and as defined in, the Indenture shall
have occurred; and

 

7.1.2                                 the Subordinated Security Trustee shall have given notice in writing
(an “Enforcement Notice”) to the
Agent of the occurrence of such Event of Default; and

 

12

 

7.1.3                                 a period of 60 days shall have elapsed since the giving of an
Enforcement Notice; provided that
such 60-day period shall be extended if the Senior Secured Finance Parties have
commenced a Security Enforcement Action with respect to a material portion of
the assets that are the subject of the Security conferred by the Senior
Security Documents prior to the end of such 60-day period and for so long as the
Senior Secured Finance Parties pursue such Security Enforcement Action with
respect to a material portion of such assets.

 

7.2                                           Notwithstanding anything to the contrary in this Agreement, the
Subordinated Security Trustee may crystallise any floating charge over any
asset subject to the Subordinated Security Documents if the Senior Security
Trustee has crystallised its floating charge over such asset subject to the
Senior Security Documents.

 

7.3                                           For the avoidance of doubt, the Senior Security Trustee may pursue
any Security Enforcement Action as it sees fit without consulting with, or
obtaining the consent of, any Subordinated Secured Finance Party. The Senior
Security Trustee shall inform the Subordinated Security Trustee promptly
upon the taking of any Security Enforcement Action by it.

 

8.                                                 PROCEEDS OF ENFORCEMENT OF SECURITY

 

Subject to applicable laws and the rights of
any prior or preferential Security or creditors, the proceeds of enforcement
paid or turned over to the Agent as a result of all recoveries made by or on
behalf of any Secured Party on any Security conferred on such Secured Party or
received anytime after an Enforcement Date in respect of any asset subject to
such Security (whether under the turnover provisions or otherwise) shall be
applied in the following order:

 

First                                                           in payment of all unpaid costs, charges, expenses and liabilities
incurred by or on behalf of such Secured Party to the extent it is a Security
Trustee (including any Receiver, adviser or agent appointed by it) in
connection with such Security Trustee’s enforcement of any Security Document;

 

Second                                               in payment to the Senior Security Trustee for application towards
the balance of the Senior Secured Debt to the extent not constituting Excess
Senior Secured Debt;

 

Third                                                       in payment to the Subordinated Security Trustee for application
towards the balance of the Subordinated Secured Debt;

 

Fourth                                                 in payment to the Senior Security Trustee for application towards
the balance of the Senior Secured Debt to the extent constituting Excess Senior
Secured Debt;

 

13

 

Fifth                                                            the payment of the surplus, if any, to the Company concerned or
other person entitled thereto.

 

9.                                                 RELEASE OF SECURITY ON ENFORCEMENT

 

If, pursuant to or for the purpose of
effecting any Security Enforcement Action taken or to be taken by the Senior
Security Trustee or, if permitted under Clause 7, the Subordinated Security
Trustee, in accordance with the provisions of this Agreement, the Senior
Security Trustee or Subordinated Security Trustee, as applicable, requires any
release of any Security granted by any member of the Group, each Party shall
promptly enter into any documents the relevant Secured Party shall reasonably
require to enable that Security Enforcement Action to be effected.

 

10.                                           REPRESENTATIONS AND WARRANTIES

 

Each Party represents and warrants to each
other Party that:-

 

10.1                                     it is duly established and (if a company) duly incorporated and
validly existing with limited liability under the laws of the place of its
incorporation and has the power to own its assets and carry on its business
substantially as it is now being conducted;

 

10.2                                     it has the power and capacity to enter into and comply with its
obligations under this Agreement on behalf of itself and in the case of any
Security Trustee, the Secured Parties on whose behalf it is acting in such
capacity;

 

10.3                                     it has taken all necessary action:-

 

10.3.1                           to authorise the entry into and compliance with its obligations
under this Agreement; and

 

10.3.2                           to ensure that its obligations under this Agreement are valid,
legally binding and enforceable in accordance with their terms; and

 

10.4                                     the entry into this Agreement does not conflict with any law or regulation
or its constitutional documents or any document binding on it and that it has
obtained all necessary consents for the performance by it of this Agreement.

 

11.                                           OPTION TO PURCHASE

 

11.1                                     Purchase Option

 

If the Senior Secured Finance Parties have instigated
any formal steps to take any Enforcement Action, all or any of the Noteholders (or
their designee) may, on giving no less than 45 days’ 

 

14

 

notice to the Senior Secured Finance Parties
at the expense of such Noteholders, to acquire or procure the acquisition by a
person nominated by such Noteholders of all (but not part only) of the
rights and obligations of the Senior Secured Finance Parties in connection with
the Senior Secured Debt under the Senior Finance Documents by way of transfer
in accordance with Clause 29 (Changes to the
Lenders) of the Senior Facility Agreement (but in any event without
the consent of the Agent or the payment of any assignment or transfer fee
contemplated under such Clause).

 

11.2                                     Terms of Purchase

 

Any purchase to be made under clause 11.1
shall take effect on the following terms:-

 

(i)                                              payment in full in cash of an amount equal to the Senior Secured
Debt outstanding as at the date that amount is to be paid;

 

(ii)                                           payment in full in cash of the amount which each Senior Secured
Finance Party certifies to be necessary to compensate it for any loss on
account of funds borrowed, contracted for or utilised to fund any amount
included in the Senior Secured Debt resulting from the receipt of that payment
otherwise than on the last day of an Interest Period in relation thereto;

 

(iii)                                        after the transfer, no Senior Secured Finance Party will be under
any actual or contingent liability to any Company or any other person under
this Agreement or any Relevant Document (as appropriate) for which it is not
holding cash collateral in an amount and established on terms reasonably
satisfactory to it;

 

(iv)                                       an indemnity is provided severally from the those of the Noteholders
(or its nominee as referred to at Clause 11.1 above) who have agreed to
purchase the Senior Secured Debt (or from another third party acceptable to the
Agent) in a form reasonably satisfactory to the Agent in respect of all
losses which may be sustained or incurred by any Senior Secured Finance
Party in consequence of any sum received or recovered by any Senior Secured
Finance Party from any Company or any such Noteholder, or other person being
required (or it being alleged that it is required) to be paid back by or clawed
back from any such Noteholder for any reason whatsoever, provided that where it is demonstrated to
the reasonable satisfaction of the Senior Secured Debt Finance Parties that
those losses could not have been recovered in full by the relevant Senior
Secured Debt Finance Parties under the Senior Secured Finance Documents, that
transfer had not been made, that indemnity shall not extend to the shortfall;
and

 

15

 

(v)                                          the relevant transfer shall be without recourse to, or warranty
from, the Senior Secured Finance Parties, except that each Senior Secured
Finance Party shall be deemed to have warranted on the date of that transfer
that:

 

(a)                        it is the owner, free from all Security and third party interests
(other than any arising under the Senior Finance Documents or by operation of
law), of all rights and interests under the Senior Finance Documents purporting
to be transferred by it by that transfer;

 

(b)                       it has the corporate power to effect that transfer; and

 

(c)                        it has taken all necessary action to authorise the making by it of
that transfer.

 

12.                                           INFORMATION BETWEEN PARTIES

 

12.1                                     Defaults

 

Each Party will notify the other Parties of
the occurrence of any default under the Relevant Documents respectively but
only if the relevant Party is aware of the event or if the event is non-payment
of principal or interest which is more than five Business Days overdue.

 

12.2                                     Secured Debt

 

Each Party (other than the Companies) will on
written request by any other Party from time to time notify the other in
writing of details of the amount of any Secured Debt owed to it by any of the
Companies under a Relevant Document so far as known to it.

 

12.3                                     Newbridge Lease

 

If any Secured Party received notice of a
Breach Event (as defined in the Newbridge Lease) in accordance with Clause
13.1.2 of the Newbridge Lease that Secured Party will promptly notify the other
Secured Party of the occurrence of such Breach Event.

 

16

 

12.4                                     Other Information

 

Each Company authorises the other Parties to
disclose to each other all information relating to that Company, its
Subsidiaries or related entities, and coming into the possession of any of them
in connection with the Relevant Documents.

 

12.5                                     Co-operation

 

The Senior Secured Finance Parties and the
Subordinated Secured Finance Parties undertake to use all reasonable endeavours
to ensure that any and all Security now or in the future held or obtained from
any member of the Group in relation to the Senior Secured Debt or the
Subordinated Secured Debt shall be constituted by the Security Documents and
held in accordance with the provisions of this Agreement), for the benefit (as
the case may be) of the Senior Secured Finance Parties or the Subordinated
Secured Finance Parties, in accordance with their respective priority
entitlements set out in this Agreement and to the extent permitted by
appropriate law.

 

12.6                                     Consultation

 

The Secured Parties shall, so far as
practicable in the circumstances, consult with each other:

 

12.6.1                           before taking any formal steps to exercise any remedy against any
member of the Group or take other Enforcement Action; and

 

12.6.2                           generally with regard to significant matters affecting the rights of
the Secured Parties as regulated by this Agreement,

 

but nothing in this Clause 12.6 or elsewhere
in this Agreement will invalidate or otherwise affect any action or step taken
without any such consultation.

 

13.                                           SUBROGATION

 

If the Senior Secured Debt is wholly or
partially paid out of any proceeds received in respect of, or on account of,
the Subordinated Secured Debt, the Subordinated Secured Finance Parties will to
that extent be subrogated to the Senior Secured Debt so paid (and all
securities and guarantees for that Senior Secured Debt) but not before all the
Senior Secured Debt is irrevocably paid in full. The Subordinated Secured
Finance Parties waive existing or future rights they may have to
marshalling in respect of any Security held by the Senior Secured Finance
Parties.

 

17

 

14.                                           PROTECTION OF SUBORDINATION

 

14.1                                     The subordination provisions in this Agreement shall constitute a
continuing subordination irrespective of any intermediate payment or
satisfaction of the Secured Debt.

 

14.2                                     The subordination provisions in this Agreement shall remain in full
force and effect irrespective of any act, event or matter which might, as a
matter of law or otherwise, discharge this Agreement including:

 

14.2.1                           any time or other indulgence granted in respect of the Secured Debt;
or

 

14.2.2                           any increase (it being agreed and understood that under certain
circumstances the amount of such increase may result in such Senior
Secured Debt constituting Excess Senior Secured Debt), in or waiver or discharge
of any of the Secured Debt or any amendment or termination of any agreement
relating to the Secured Debt; or

 

14.2.3                           any Secured Party abstaining from perfecting or enforcing or giving
up or waiving any Security, this Agreement or other right or remedy for all or
any of the Security Documents; or

 

14.2.4                           any legal limitation, disability, incapacity or other circumstance
relating to, or any invalidity, unenforceability or frustration of any of the
obligations of, any Company, any other guarantor or any other person in respect
of the Secured Debt.

 

15.                                           PRESERVATION OF SECURED DEBT

 

Notwithstanding any term of this Agreement
postponing or preventing the payment of any of the Secured Debt, the Secured
Debt concerned shall solely as between the Companies and the Secured Parties
remain owing or due and payable in accordance with the terms of the Relevant
Documents and interest and default interest will accrue on missed payments
accordingly. No delay in exercising rights and remedies under any of the
Relevant Documents by reason of any term of this Agreement postponing,
restricting or preventing such exercise shall operate as a waiver of any of
those rights and remedies.

 

16.                                           POWER OF ATTORNEY

 

By way of security for their obligations
hereunder each Company irrevocably appoints the Senior Security Trustee as its
attorney to do anything which any Company is required to do by this Agreement
but has failed to do for a period of five Business Days (or such shorter
request period as the Agent considers is appropriate in the circumstances,
acting reasonably, having regard to the urgency and nature of the act or deed
that requires to be undertaken as attorney) after 

 

18

 

receiving notice from the Agent (copied to
the Senior Security Trustee) requiring it to do so. The Senior Security Trustee
may delegate this power.

 

17.                                           EXPENSES

 

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

 

17.1                                     the preparation, negotiation and execution of this Agreement;

 

17.2                                     the perfection of this Agreement or any other document entered into
by any of the Companies and the Subordinated Secured Finance Parties pursuant
to this Agreement; and

 

17.3                                     the exercise or the attempted or purported exercise by or on behalf
of the Secured Parties of any of the powers of the Secured Parties, and the
enforcement, preservation or the attempted or purported enforcement or
preservation of, under this Agreement.

 

18.                                           NOTICES

 

18.1                                     Any communication to be made hereunder shall be made in writing and,
unless otherwise stated, may be made by letter or fax.

 

18.2                                     Any communication to be made or document to be delivered by one
person to another pursuant to this Agreement shall (unless that other person
has by five Business Days’ written notice to each other Party specified another
address) be made or delivered to that other person at the address or fax number
identified with its execution below and shall be deemed to have been made or
delivered (in the case of any communication made by fax) when received legibly
and in full by the recipient or (in the case of any communication made by
letter) when left at that address or (as the case may be) two Business
Days after being deposited in the post first class postage prepaid in an
envelope addressed to it at that address.

 

18.3                                     Any communication or document to be made or delivered to another Party
will be effective only when actually received by that other Party and then only
if it is expressly marked for the attention of the department or officer
identified with the signature of that Party below (or any substitute department
or officer as that Party shall specify for this purpose) which in the case of
the Subordinated Security Trustee shall require it to be marked for the
attention of a Responsible Officer.

 

19

 

18.4                                     All notices from or to a Company under this Agreement to or from a
Security Trustee shall be copied to the other Security Trustee.

 

18.5                                     Any communication or document made or delivered to the Borrower in
accordance with this Clause 18 will be deemed to have been made or delivered to
each of the Companies.

 

18.6                                     Any communication to be made between any Parties under or in
connection with this Agreement may be made by electronic mail or other
electronic means, if both Parties:

 

18.6.1                           agree that, unless and until notified to the contrary, this is to be
an accepted form of communication;

 

18.6.2                           notify each other in writing of their electronic mail address and/or
any other information required to enable the sending and receipt of information
by that means; and

 

18.6.3                           notify each other of any change to their addresses or any other
information supplied by them.

 

18.7                                     Any electronic communication made between Parties will be effective
only when actually received in readable form and only if it is addressed
in such a manner as the receiving Party shall specify for this purpose.

 

18.8                                     Any notice given under or in connection with this Agreement must be
in English.

 

18.9                                     All other documents provided under or in connection with this
Agreement must be:

 

18.9.1                           in English; or

 

18.9.2                           if not in English, and if so required by the Senior Security
Trustee, accompanied by a certified English translation and, in this case, the
English translation will prevail unless the document is a constitutional,
statutory or other official document.

 

19.                                           CUMULATIVE REMEDIES AND WAIVERS

 

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

 

20

 

20.                                           AMENDMENTS AND WAIVERS

 

20.1                                     Subject to Clause 20.2, any term of this Agreement may be
amended or waived only with the consent of the Security Trustees, the Trustee
and the Agent. Each Party agrees that the Security Trustees, the Trustee and
the Agent may effect any amendment or waiver, on behalf of the other Secured
Parties and such amendment or waiver will be binding on each Secured Party.

 

20.2                                     The Senior Security Trustee shall only be entitled to execute any
amendment or waiver following the receipt of consent from the requisite
percentage of Lenders (as defined in the Senior Facility Agreement). The
consent of each Company (such consent not to be unreasonably withheld) shall only
be required to any amendment or waiver which has the effect of changing or
which would increase or extend any obligation or liability upon such Company hereunder.

 

21.                                           SEVERABILITY

 

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

 

22.                                           TRANSFERS

 

22.1                                     No Company may assign or transfer any of its rights (if any) or
obligations under this Agreement, except with the prior written consent of the
Secured Parties.

 

22.2                                     If any Subsidiary of a Company guarantees or otherwise becomes
liable for any of the Senior Secured Debt or the Subordinated Secured Debt or
grants Security for any Senior Secured Debt or Subordinated Secured Debt, that
Company will procure that such Subsidiary becomes a party hereto by execution
of a Deed of Accession.

 

22.3                                     None of the Trustee, the Agent, the Subordinated Security Trustee or
the Senior Security Trustee (in this capacity the “Transferor”) agrees that it
shall not assign or transfer any of its rights or obligations under any of the
Relevant Documents to any persons (a “Transferee”) unless the Transferee is
permitted to assign or transfer rights, benefits and obligations under the
Relevant Documents and such assignment or transfer will only be effective after
the Transferee has first agreed to adhere to and be bound by all of the
provisions of this Agreement. Each Secured Party agrees that the execution of a
Deed of Accession shall be sufficient for the purposes of any proposed
transferee adhering to the terms of this Agreement.

 

22.4                                     The Transferee will promptly notify the other Parties of the receipt
and execution by it of a Deed of Accession. The other Parties agree to take any
action necessary and to execute and deliver any 

 

21

 

other documentation required by the Transferor
or Transferee to give effect to such transfer or assignment.

 

23.                                           COUNTERPARTS

 

This Agreement may be executed in any
number of counterparts and by the different parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original
but all the counterparts shall together constitute one and the same agreement.

 

24.                                           SUPREMACY

 

For the avoidance of doubt, it is agreed
between the parties hereto that in the event of a conflict between the terms of
this Agreement and any of the Relevant Documents then, as between the parties
hereto, this Agreement shall prevail.

 

25.                                           EXPIRY

 

On the full and unconditional payment and
discharge of each of the Senior Secured Debt and the Subordinated Secured Debt
and the cancellation of all commitments to fund to the Borrower or any other
Company by each of the Senior Secured Finance Parties, this Agreement shall
cease to have effect; provided, however,
that if a Clawback shall occur after the termination of this Agreement, the
terms of this Agreement shall be reinstated as if the termination hereof had
not occurred.

 

26.                                           SUBORDINATED SECURED FINANCE PARTIES
NOMINEES

 

Each of the Subordinated Secured Finance
Parties undertakes to the other parties to this Agreement that if at any time
all or any of the Subordinated Secured Debt is owed or registered in the name
of, or held on its behalf by, any nominee or trustee, then the relevant
Subordinated Secured Finance Parties will procure that such nominee or trustee
will comply in all respects with the provisions of this Agreement and will not
take any action in breach of the provisions of this Agreement.

 

27.                                           PERPETUITY

 

The perpetuity period applicable to the
trusts contained in or arising from this Agreement shall be 80 years from the
date hereof.

 

28.                                           SET OFF AND COUNTERCLAIM

 

All payments made or received by a Secured
Party under this Agreement shall be made without set off or counterclaim.

 

22

 

29.                                           GOVERNING LAW AND JURISDICTION

 

29.1                                     This Agreement is governed by, and construed in accordance with the
law of England.

 

29.2                                     For the benefit of each Secured Party, each other Party irrevocably
submits to the non-exclusive jurisdiction of the English courts for the purpose
of hearing and determining any dispute arising out of this Agreement and for
the purpose of enforcement of any judgment against its assets.

 

29.3                                     Nothing in this Clause 29 limits the rights of a Secured Party to
bring proceeding against a Party in connection with this Agreement:

 

29.3.1                           in any other court of competent jurisdiction; or

 

29.3.2                           concurrently in more than one jurisdiction.

 

30.                                           SERVICE OF PROCESS

 

Without prejudice to any other mode of
service allowed under any relevant law, each Company (other than any Company
incorporated in England and Wales):

 

30.1.1                           irrevocably appoints Pipe Acquisition Limited as its agent for
service of process in relation to any proceedings before the English courts in
connection with this Agreement (and Pipe Acquisition Limited by its execution
of this Agreement, accepts that appointment); and

 

30.1.2                           agrees that failure by a process agent to notify it of the process
will not invalidate the proceedings concerned.

 

31.                                           THE SECURITY TRUSTEES

 

31.1                                     Capacity

 

It is expressly understood and agreed by each
Party that this Agreement is executed and delivered by a Security Trustee not
individually or personally but solely in its capacity as trustee in the
exercise of the powers and authority conferred and vested in it under and which
powers and authority shall be exercised under this Agreement in the manner
provided for (i) in respect of the Subordinated Security Trustee, the
Indenture for and on behalf of the Noteholders; and (ii) in respect of the
Senior Security Trustee, the Senior Facility Agreement, for which it acts as
trustee,   and it shall have no liability
for acting in any capacity other than as trustee and nothing in this Agreement
shall impose on it any obligation to pay any amount out of its personal assets.

 

23

 

31.2                                     Liability of Subordinated Security Trustee

 

31.2.1                           The Subordinated Security Trustee shall not owe any fiduciary duty
to any Senior Secured Finance Party and the Senior Security Trustee shall not
owe any fiduciary duty to any Subordinated Secured Finance Party. The Secured Parties
agree and acknowledge that in no case shall either Security Trustee be (i) personally
responsible or accountable in damages or otherwise to any other Secured Party
for any loss, damage or claim incurred by reason of any act or omission
performed or omitted by such Security Trustee in good faith in accordance with
this Agreement or any of the Relevant Documents (other than for its own gross
negligence or wilful misconduct); or (ii) personally liable for or on
account of any of the statements, representations, warranties, covenants or
obligations stated to be those of any other Secured Party, all such liability,
if any, being expressly waived by the Secured Parties and any person claiming
by, through or under such Secured Party; provided however, that each Security
Trustee (or any successor Security Trustee) shall be personally liable under
this Agreement for its own gross negligence or wilful misconduct or for its
breach of its covenants or obligations contained herein, to the extent
expressly covenanted or undertaken in its individual capacity. It is also
acknowledged and agreed that the Subordinated Security Trustee shall have no
responsibility for the actions of any individual Noteholder but confirms that
the terms of this Agreement are binding upon the Noteholders by its execution
hereof. It is also acknowledged and agreed that the Senior Security Trustee
shall have no responsibility for the actions of any other Senior Secured Finance
Party but confirms that the terms of this Agreement are binding upon each
Senior Secured Finance Party by its execution hereof.

 

31.2.2                           With respect to the Senior Secured Finance Parties, the Subordinated
Security Trustee undertakes to perform or to observe only such of its
covenants or obligations as are specifically set forth in the Note Documents
pursuant to which it acts as agent or trustee or this Agreement, and the Secured
Parties acknowledge and agree that no implied agreement, covenants or
obligations on the part of the Subordinated Security Trustee shall be read
into this Agreement. With respect to the Subordinated Secured Finance Parties,
the Senior Security Trustee undertakes to perform or to observe only such
of its covenants or obligations as are specifically set forth in the Senior
Finance Documents pursuant to which it acts as agent or trustee or this
Agreement, and the Parties acknowledge and agree that no implied agreement,
covenants or obligations on the part of the Senior Security Trustee shall
be read into this Agreement.

 

24

 

31.3                                     Reliance and information

 

The Secured Parties agree that each Security
Trustee shall at all times be entitled to and may rely on any notice,
consent or certificate given or granted by (i) in respect of the
Subordinated Security Trustee, the Agent, the Trustee and the Senior Security
Trustee and (ii) in respect of the Senior Security Trustee, pursuant to
the terms of this Agreement, the Subordinated Security Trustee,  without being under any obligation to enquire
or otherwise determine whether any such notice, consent or certificate has been
given or granted by the Agent,  the
Senior Security Trustee or the Subordinated Security Trustee, as applicable.

 

31.4                                     Instructions to the Subordinated Security Trustee

 

In acting under and in accordance with this
Agreement;

 

31.4.1                           the Subordinated Security Trustee is entitled to seek instructions
from the Noteholders at any time, and where it so acts on the instructions of
the requisite percentage of the Noteholders (to the extent required by the
Indenture) shall not incur any liability to any person for so acting other than
in accordance with the Indenture; and

 

31.4.2                           the Senior Security Trustee is entitled to seek instructions from
the Lenders (as defined in the Senior Facility Agreement) at any time, and
where it so acts on the instructions of the requisite percentage of the Lenders
(to the extent required by the Senior Facility Agreement) shall not incur any
liability to any person for so acting other than in accordance with the Senior
Facility Agreement.

 

31.5                                     No action

 

No Security Trustee shall have any obligation
to take any action under this Agreement unless it is indemnified to its
satisfaction in accordance with the Relevant Documents in respect of all costs,
expenses and liabilities which it would in its opinion thereby incur. In
connection with its appointment and acting hereunder, the Subordinated Security
Trustee is entitled to all rights, privileges, protections, immunities and
indemnities provided to it under the Indenture.

 

31.6                                     Reliance and information

 

Each Security Trustee:

 

31.6.1                           may rely and shall be fully protected in acting or refraining
from acting upon any notice or other document reasonably believed by it to be
genuine and correct and to have been signed by, or with the authority of, the
proper person, and any statement made by any person regarding any matters which
may be assumed to be within his knowledge or within his powers to verify;
and

 

25

 

31.6.2                           engage, pay for and rely upon professional advisers selected by it
(including those representing a person other than the Security Trustee).

 

31.7                                     Resignation

 

Each Security Trustee may resign or be
removed in accordance with the terms of the Relevant Documents, provided that a
replacement Security Trustee agrees with the Parties to become the replacement
Security Trustee under this Agreement by the execution of a Deed of Accession.

 

26

 

SCHEDULE 1

 

The
Companies

 

	
  Name

  	
   

  	
  Registered Office

  	
   

  	
  Company Number

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pipe Acquisition Limited

  	
   

  	
  160 Queen Victoria Street

  London

  EC4V 4QQ

  	
   

  	
  05501083

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Murray International Metals Limited

  	
   

  	
  95 High Street

  Edgware

  Middlesex

  HA8 7DB

  	
   

  	
  01241058

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pipe Acquisition Finance PLC

  	
   

  	
  160 Queen Victoria Street

  London

  EC4V 4QQ

  	
   

  	
  05644999

  

 

27

 

SCHEDULE 2

 

Form of
Deed of Accession for New Companies

 

THIS DEED [dated •] is supplemental to an intercreditor agreement (the “Intercreditor Agreement”) dated 16
December, 2005, among, inter alia,
PIPE ACQUISITION LIMITED, MURRAY INTERNATIONAL METALS LIMITED, THE BANK OF NEW
YORK, as Trustee, Collateral Agent and Subordinated Security Trustee and THE
GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND, as Agent and Senior Security
Trustee.

 

Words and expressions defined in the
Intercreditor Agreement have the same meaning when used in this Deed.

 

• [Limited] [plc]
(the “New Party”) hereby agrees
that it has been supplied with a copy of the Intercreditor Agreement and with
each other person who is or who becomes a party to the Intercreditor Agreement
that with effect on and from the date hereof it will be bound by the
Intercreditor Agreement as [a [Company]] [the [Trustee] [Agent] [[Senior] [Subordinated]
Security Trustee]] as if the New Party had been party to the Intercreditor
Agreement in that capacity.

 

This Deed is governed by the law of England.

 

IN WITNESS WHEREOF this Deed has been
executed as a deed the day and date first written above.

 

EXECUTED AND
DELIVERED as a deed

for and on
behalf of

• [Limited] [plc]

[acting by]
[by:]

 

 

	
   

  	
   

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Director/Secretary

  
	
   

  	
   

  	
   

  
	
  Address for
  notices:

  	
   

  	
  •

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Fax Number:

  	
   

  	
  •

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  •

  	
   

  

 

28

 

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

 

COMPANIES

 

EXECUTED as a
deed for and on behalf of

PIPE
ACQUISITION LIMITED by:-

 

	
   

  	
  K A COCKBURN

  	
   

  	
  Director

  
	
   

  	
   

  	
   

  
	
  and

  	
  DAVID KEMP

  	
   

  	
  Director/Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address for
  notices:

  	
   

  	
  Jeffries
  Capital Partners

  
	
   

  	
   

  	
  520 Madison
  Avenue

  
	
   

  	
   

  	
  12th
  Floor

  
	
   

  	
   

  	
  New York

  
	
   

  	
   

  	
  NY 10022

  
	
   

  	
   

  	
   

  
	
  Fax Number:

  	
   

  	
  001 212 284
  1717

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  James
  Luikart and Nick Daraviras

  
	
   

  	
   

  	
   

  
	
  with a copy
  to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Dechert LLP

  
	
   

  	
   

  	
  160 Queen
  Victoria Street

  
	
   

  	
   

  	
  London

  
	
   

  	
   

  	
  EC4V 4QQ

  
	
   

  	
   

  	
   

  
	
  Fax Number:

  	
   

  	
  020 7184
  7001

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  David Wallis

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXECUTED as
  a deed for and on behalf of

  
	
  MURRAY
  INTERNATIONAL METALS LIMITED by:-

  
	
   

  	
   

  	
   

  
	
   

  	
  K A COCKBURN

  	
   

  	
  Director

  
	
   

  	
   

  	
   

  
	
  and

  	
  DAVID KEMP

  	
   

  	
  Director/Secretary

  
	
   

  	
   

  	
   

  
	
  Address for
  notices:

  	
   

  	
  Jeffries
  Capital Partners

  
	
   

  	
   

  	
  520 Madison
  Avenue

  
	
   

  	
   

  	
  12th
  Floor

  
	
   

  	
   

  	
  New York

  
	
   

  	
   

  	
  NY 10022

  
	
   

  	
   

  	
   

  
	
  Fax Number:

  	
   

  	
  001 212 284
  1717

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  James
  Luikart and Nick Daraviras

  
							

 

29

 

	
  with a copy
  to:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Dechert LLP

  	
   

  	
   

  
	
   

  	
   

  	
  160 Queen
  Victoria Street

  
	
   

  	
   

  	
  London

  	
   

  	
   

  
	
   

  	
   

  	
  EC4V 4QQ

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fax Number:

  	
   

  	
  020 7184
  7001

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  David Wallis

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXECUTED as
  a deed for and on behalf of

  	
   

  	
   

  
	
  PIPE ACQUISITION
  FINANCE PLC by:-

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  K A COCKBURN

  	
   

  	
  Director

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  and

  	
  DAVID KEMP

  	
   

  	
  Director/Secretary

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address for
  notices:

  	
   

  	
  Jeffries
  Capital Partners

  	
   

  	
   

  
	
   

  	
   

  	
  520 Madison
  Avenue

  	
   

  	
   

  
	
   

  	
   

  	
  12th
  Floor

  	
   

  	
   

  
	
   

  	
   

  	
  New York

  	
   

  	
   

  
	
   

  	
   

  	
  NY 10022

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fax Number:

  	
   

  	
  001 212 284
  1717

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  James
  Luikart and Nick Daraviras

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  with a copy
  to:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  Dechert LLP

  	
   

  	
   

  
	
   

  	
   

  	
  160 Queen
  Victoria Street

  
	
   

  	
   

  	
  London

  	
   

  	
   

  
	
   

  	
   

  	
  EC4V 4QQ

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fax Number:

  	
   

  	
  020 7184
  7001

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  David Wallis

  	
   

  	
   

  
										

 

30

 

TRUSTEE, COLLATERAL
AGENT AND SUBORDINATED SECURITY TRUSTEE

 

EXECUTED as a
deed for and on behalf of

THE BANK OF
NEW YORK, as Trustee, Collateral Agent and Subordinated Security Trustee

by:-

 

	
  CHARLOTTE
  FRICKER

  	
   

  	
  Authorised
  Signatory ASSISTANT VICE PRESIDENT

  
	
   

  	
   

  	
   

  
	
  in the presence of this witness

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EMMA WILKES

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
  EMMA WILKES

  	
   

  	
  Name

  
	
   

  	
   

  	
   

  
	
  Address for
  notices:

  	
   

  	
  Bank of New
  York

  
	
   

  	
   

  	
  1 Canada
  Square

  
	
   

  	
   

  	
  London E14
  5AL

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax Number:

  	
   

  	
  +44 20 7964
  6399

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Corporate
  Trust Administration

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AGENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXECUTED as
  a deed for and on behalf of

  
	
  THE GOVERNOR
  AND COMPANY OF THE BANK OF SCOTLAND

  
	
  by:-

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CHRIS GOW

  	
   

  	
  Authorised
  Signatory

  
	
   

  	
   

  	
   

  
	
  in the presence of this witness

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ARUNA WOOGRASINGH

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
  ARUNA
  WOOGRASINGH

  	
   

  	
  Name

  
	
   

  	
   

  	
   

  
	
  Address for
  notices:

  	
   

  	
  New Uberior House

  
	
   

  	
   

  	
  11 Earl Grey Street

  
	
   

  	
   

  	
  Edinburgh

  
	
   

  	
   

  	
  EH3 9BN

  
	
   

  	
   

  	
   

  
	
  Fax Number:

  	
   

  	
  +44 131 659 0855

  
	
   

  	
   

  	
   

  
	
  Attention

  	
   

  	
  Iain Shearer

  

 

31

 

SENIOR SECURITY
TRUSTEE

 

EXECUTED as a
deed for and on behalf of

THE GOVERNOR
AND COMPANY OF THE BANK OF SCOTLAND

by:-

 

	
  CHRIS
  GOW

  	
   

  	
  Authorised Signatory

  
	
   

  	
   

  	
   

  
	
  in
  the presence of this witness

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ARUNA WOOGRASINGH

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
  ARUNA WOOGRASINGH

  	
   

  	
  Name

  
	
   

  	
   

  	
   

  
	
  Address for notices:

  	
   

  	
  New
  Uberior House

  
	
   

  	
   

  	
  11
  Earl Grey Street

  
	
   

  	
   

  	
  Edinburgh

  
	
   

  	
   

  	
  EH3
  9BN

  
	
   

  	
   

  	
   

  
	
  Fax Number:

  	
   

  	
  +44
  131 659 0855

  
	
   

  	
   

  	
   

  
	
  Attention

  	
   

  	
  Iain
  Shearer

  

 

32Exhibit 10.7

 

 

DEED OF ACCESSION

 

dated 25 January 2006

 

for

 

MURRAY INTERNATIONAL
METALS PTE LIMITED

 

 

 

re:

PROJECT PIPE

 

 

 

THIS DEED dated the 25th day
of January 2006 is made by MURRAY INTERNATIONAL
METALS PTE LIMITED of 31 Tuas View Close, Singapore 637469 (the New Party”).

 

SUPPLEMENTAL to an
intercreditor agreement (the “Intercreditor
Agreement”) dated 16 December, 2005, among, inter alia, :

 

(i)            PIPE ACQUISITION LIMITED;

 

(ii)           MURRAY INTERNATIONAL METALS LIMITED;

 

(iii)                               THE BANK OF NEW YORK, as Trustee, Collateral Agent and Subordinated
Security Trustee; and

 

(iv)                              THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND, as Agent and
Senior Security Trustee.

 

IT IS HEREBY AGREED as
follows:

 

1.             Words and expressions defined in
the Intercreditor Agreement have the same meaning when used in this Deed.

 

2.             The New Party hereby agrees that it has been supplied with a copy of
the Intercreditor Agreement and with each other person who is or who becomes a
party to the Intercreditor Agreement that with effect on and from the date
hereof it will be bound by the Intercreditor Agreement as a Company as if the
New Party had been party to the Intercreditor Agreement in that capacity.

 

3.             This Deed is governed by the laws
of England.

 

IN WITNESS WHEREOF this Deed
has been duly executed by the New Party as a deed the day and date first
written above.

 

	
  The COMMON SEAL of
  MURRAY INTERNATIONAL

  	
  )

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  METALS PTE LIMITED was hereunto affixed in the

  	
  )

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  presence of :

  	
  )

  	
   

  	
   

  	
   

  

 

 

	
  MICHAEL CRAIG

  	
   

  
	
  Director

  
	
   

  
	
   

  
	
  K A COCKBURN

  	
   

  
	
  Director

  

 

	
  Address for
  notices:

  	
   

  	
  31
  View Close, Singapore 637469

  
	
   

  	
   

  	
   

  
	
  Fax
  Number:

  	
   

  	
  +65
  6223 3336

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Mr. Michael Craig

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]