Document:

Prepared by R.R. Donnelley Financial -- Charge Over Shares dated June 13, 2002

  
 EXHIBIT 10.107.1 
  
 DATED 13th JUNE, 2002 
  
  
 FASHION RESOURCE (TCL), INC. (1) 
  
 and 
  

UPS CAPITAL GLOBAL TRADE FINANCE 
 CORPORATION (2) 
  
  
 CHARGE OVER SHARES 
  
  
 BARLOW LYDE & GILBERT 
 24th Floor

 Nine Queen’s Road Central 
 Hong Kong 

  
 THIS CHARGE is made the 13th day of June, 2002. 
  
 BY: 
  
 (1)  FASHION RESOURCE (TCL), INC. a company incorporated under the laws of the state of California in the United States of America whose registered office is at 3151 East Washington Boulevard, Los Angeles, Ca
90023, USA (the “Chargor”) 
  
 IN FAVOUR OF: 
  
 (2)  UPS CAPITAL GLOBAL TRADE FINANCE CORPORATION in its capacity as trustee for the Beneficiaries (the
“Security Trustee”) 
  
 WHEREAS: 
  
 (A)  Under the terms of a syndicated letter of credit facility agreement (the “Letter of Credit Facility Agreement”) entered into on even
date herewith by and between Tarrant Company Limited, Marble Limited and Trade Link Holdings Limited (the “Borrowers”) and the Beneficiaries, the Security Trustee agreed, inter alia, to make available to the Borrowers a facility for
the issue of letters of credit, upon the terms and subject to the conditions set out therein. 
  
 (B)  Under the terms of a Guarantee and Security Agreement entered into on even date herewith by the Chargor and Tarrant Apparel Group in favour of the Security Trustee (the “Guarantee and Security
Agreement”), the Chargor agreed to unconditionally guarantee (jointly and severally with Tarrant Apparel Group) to the Security Trustee the punctual payment, performance and discharge of all obligations on the part of each of the Borrowers
to be paid, performed or discharged, whether directly or indirectly, under or pursuant to the terms of the Letter of Credit Facility Agreement, upon the terms and subject to the conditions set out therein. 
  
 (C)  The Chargor has agreed to enter into this Charge as continuing security for its obligations under the Guarantee and
Security Agreement. 
  
 THIS DEED WITNESSES: 
  
 1.  INTERPRETATION 
  
 1.1  In this Charge and the Recitals, unless the context requires otherwise: 
  
 
	 “Additional Securities”
 	  	 means all stocks shares and securities beneficially owned by the Chargor represented by any stock or share certificates or other documents of title from time
to time deposited by the Chargor with the Security Trustee and/or
 

 
 

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	  	  	 its nominees with the intent that they shall be subject to the Charge herein contained either in addition to or in substitution for the Original
Securities;
 
	 
	 “Beneficiaries”
 	  	 the Security Trustee, the Agent (as defined in the Letter of Credit Facility Agreement) and each of the Banks (as defined in the Letter of Credit Facility
Agreement);
 
	 
	 “Dividends”
 	  	 means all dividends, interest and other sums which are or may become payable to the registered holder of the Securities in its capacity as such by the
relevant issuer, and includes:
 

 
  

	 	(a)
	 
	the right to receive any and all such sums and all claims in respect of any default in paying such sums; and 
 

  

	 	(b)
	 
	all forms of remittance of such sums and any bank or other account to which such sums may be paid or credited; 
 

  
 
	 
	 “Dollars” and “HK$”
 	  	 mean the lawful currency for the time being of Hong Kong;
 
	 
	 “Event of Default”
 	  	 means the event mentioned in Clause 6 of this Charge;
 
	 
	 “Hong Kong”
 	  	 means the Hong Kong Special Administrative Region of the People’s Republic of China;
 
	 
	 “Original Securities”
 	  	 means all stock shares and securities listed in Schedule 1 for which the stock or share certificate or other documents of title have been deposited by the
Chargor with and/or registered in the name of the Security Trustee and/or its nominees;
 
	 
	 “Secured Obligations”
 	  	 means all of the Chargor’s obligations under the Guarantee and Security Agreement;
 
	 
	 “Securities”
 	  	 means the Original Securities and Additional Securities and, where the context permits, includes the Dividends and all allotments, accretions, offers,
rights, and benefits at any time accruing offered or arising in respect of the Securities; and
 
	 
	 “Security Documents”
 	  	 means the Guarantee and Security Agreement.
 

 
 

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 1.2  In this Charge the expressions “Chargor” and
“Security Trustee” shall where the context permits include their respective successors and permitted assigns and any persons deriving title under them. 
  
 1.3  In this Charge references to “Clauses” and “Schedules” are to clauses of and schedules to this Charge. Clause headings are inserted for reference only and shall be
ignored in construing this Charge. 
  
 1.4  References herein to gender or the neuter include both genders
and the neuter. References herein to the singular include the plural and vice versa. 
  
 2.  CHARGE

  
 2.1  The Chargor as legal and beneficial owner hereby mortgages, charges and assigns by way of
first fixed charge the Securities to the Security Trustee (as trustee for and on behalf of each of the Beneficiaries) as a continuing security for the due and punctual performance and observance by the Chargor of all the Secured Obligations.

  
 2.2  For the purpose of enabling the Securities to be registered in the name of the Security Trustee or
the nominee of the Security Trustee, or any purchaser of the Securities from the Security Trustee, the Chargor undertakes: 
  
 (a)  forthwith upon the execution of this Charge to deposit, or procure that there be deposited, with the Security Trustee or its nominee (i) the original share certificates in respect of the Original Securities,
(ii) instruments of transfer in respect of the Original Securities, duly executed in blank by the registered owner thereof and (iii) bought and sold notes for the Original Securities duly signed by the Chargor as beneficial owner; and 

 
 (b)  in respect of any Additional Securities from time to time, to forthwith on issue thereof, to
deposit, or procure that there be deposited, with the Security Trustee or its nominee the certificates or other documents or evidence of title or ownership in respect of the Additional Securities together with instruments of transfer and contract
notes (where relevant) in respect thereof, duly executed in blank by the registered owner and beneficial owner as appropriate. 
  
 2.3  The Chargor agrees that at any time after an Event of Default has occurred (and is continuing) the Security Trustee may, at the cost of the Chargor, register the Securities in the name of the Security Trustee or its
nominee who shall hold the Securities upon and subject to the terms of this Charge. 
  
 2.4  Nothing in
this Charge shall be construed as placing on the Security Trustee any liability whatsoever in respect of any calls, instalments or other payments relating to any of the Securities or any rights, shares or other securities accruing, offered or
arising as aforesaid, and the Chargor shall on demand indemnify the Security Trustee in respect of all calls, instalments or other payments relating to any of the Securities and to any rights, shares and other securities accruing, offered or arising
as aforesaid in respect of any of the Securities. 
 

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 3.  CONTINUING SECURITY 
  
 This Charge shall be a continuing security and shall remain in full force and effect until the Secured Obligations have been paid in full,
notwithstanding the insolvency or liquidation or any incapacity or change in the constitution or status of the Chargor or any other person or any intermediate settlement of account or other matter whatsoever. This Charge is in addition to any
charge, guarantee or other security or right or remedy now or at any time hereafter held by or available to the Security Trustee. 
  
 4.  REPRESENTATIONS AND WARRANTIES 
  
 The Chargor represents and warrants to the
Security Trustee that: 
  
 (a)  the Chargor has full power, authority and legal right to
enter into and engage in the transactions contemplated by this Charge and has taken or obtained all necessary corporate and other action to authorise the execution and performance of this Charge; 
  

(b)  this Charge constitutes legal, valid and binding obligations of the Chargor enforceable in accordance with its terms; 

 
 (c)  the particulars of the Original Securities furnished to the Security Trustee are, and the
particulars of any Additional Securities furnished to the Security Trustee will be, accurate and all the Securities have been validly issued and in the case of shares, such shares are fully paid up; 
  
 (d)  the Chargor is the sole beneficial owner of the Original Securities, and, on their deposit pursuant to this
Charge, the Chargor will be the beneficial owner of any Additional Securities, in each case free of all charges, liens, options, encumbrances and third party rights of any kind; and 
  
 (e)  Securities registered in the name of the Chargor’s nominee are held by that person as the Chargor’s nominee upon trust for the
Chargor absolutely. 
  
 5.  UNDERTAKINGS 
  
 The Chargor undertakes and agrees with the Security Trustee that during the continuance of this Security and so long as the Secured Obligations or any part thereof remains
outstanding, the Chargor will, unless the Security Trustee otherwise agrees in writing: 
  
 (a)  not create or attempt or agree to create or permit to arise or exist any mortgage, debenture, charge, lien or encumbrance over all or any part of the Securities or any interest therein or otherwise assign, deal with or
dispose of all or any part of the Securities (except under or pursuant to this Charge); 
  
 (b)  not grant in favour of any other person any interest in or any option or other rights in respect of any of the Securities; 
 

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 (c)  ensure that no person holding any of the
Securities as its nominee for the time being does any of the acts prohibited in paragraphs (a) and (b) above; 
  
 (d)  at all times remain the sole beneficial owner of the Securities; 
  
 (e)  do or permit to be done every act or thing which the Security Trustee may from time to time require for the purpose of enforcing the rights of the Security Trustee hereunder; 
  
 (f)  not do or cause or permit to be done anything which may in any way depreciate, jeopardise or otherwise
prejudice the value of the Security Trustee’s security hereunder; and 
  
 (g)  pay
calls on the Securities when required by the Security Trustee. 
  
 6.  EVENTS OF DEFAULT

  
 The following event shall constitute an Event of Default under this Charge: 
  
 (a)  if any Event of Default (as defined in the Security Documents) shall occur under the Security Documents.

  
 7.  POWER OF SALE 
  
 7.1  At any time after an Event of Default has occurred (and is continuing), the Security Trustee may without further authority but upon giving not less than 24
hours prior written notice to the Chargor, sell or dispose of all or any part of the Securities and may apply the proceeds of any such sale or disposition in or towards the discharge of the costs thereby incurred and of the Secured Obligations in
such manner as it in its absolute discretion thinks fit. 
  
 7.2  The Security Trustee shall be entitled to
exercise such power of sale in such manner and at such time or times and for such consideration (whether payable immediately or by instalments) as it shall in its absolute discretion think fit (whether by private sale or otherwise) and so that the
Securities (or any relevant part thereof) may be sold (a) subject to any conditions which the Security Trustee may think fit to impose, (b) to any person (including any person connected with the Chargor or the Security Trustee) and (c) at any price
which the Security Trustee in its absolute discretion, considers to be the best obtainable in the circumstances. 
  
 7.3  The Security Trustee is authorised to give a good discharge for any moneys received by it pursuant to the exercise of its power of sale and a purchaser shall not be bound to enquire whether the power of sale has arisen
as herein provided nor be concerned with the manner of application of the proceeds of sale. 
 

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 7.4  Save for wilful fault or default of the Security Trustee, the
Chargor shall not have any claim against the Security Trustee in respect of any loss arising out of any such sale or any 
 postponement thereof howsoever caused and whether or
not a better price could or might have been obtained upon the sale of the Securities or any of them by deferring or advancing the date of such sale or otherwise howsoever. 
  
 7.5  The Chargor acknowledges that it shall not be entitled to exercise and shall be deemed to have waived all rights of pre-emption or similar rights conferred
on it by the constitutional documents of the relevant company which securities are subject to this Charge or any other agreements or documents to which the Chargor is a party as soon as the power of sale of the Security Trustee has arisen.

  
 7.6  The Security Trustee shall be entitled to refer disputes over the Securities to either the courts
of Hong Kong or arbitration and to settle and compromise on those disputes. 
  
 7.7  The powers under this
Clause 7 are additional to any powers conferred on the Security Trustee by law or other regulations. 
  
 8.  DIVIDENDS AND VOTING RIGHTS 
  
 8.1  Any Dividends, interest payments,
distributions or other monies received at any time before the occurrence of an Event of Default shall be paid to the Chargor, and on and after the occurrence of an Event of Default, such sums shall be paid to the Security Trustee and the Security
Trustee shall have complete discretion to retain such monies received by the Security Trustee or its nominee for its own benefit and to apply the same as though they were proceeds from exercising the power of sale hereunder and shall offset such
monies against any sum owing by the Chargor. 
  
 8.2  Until the security created by this Charge shall have
become enforceable, the Chargor shall be entitled to the exercise of all powers or rights incidental to the ownership of the Securities (in particular, all voting rights attached to the Securities). 
  
 8.3  The Security Trustee shall have power at any time after the security created by this Charge shall have become enforceable
either in its own name or in the Chargor’s name and without notice to the Chargor or any other person to exercise any powers or rights incidental to the ownership of the Securities or any part thereof in such manner as it may think fit and in
particular any voting and/or other rights attached to any of the Securities. 
  
 9.  CLAIMS BY CHARGOR

  
 The Chargor represents to and undertakes with the Security Trustee that it has not taken and will not take
any security in respect of its liability under this Charge from any person. So long as any sum remains owing by the Chargor to the Security Trustee, the Chargor shall not exercise any right of subrogation or any other rights of a surety or enforce
any security or other right or claim or claim in the insolvency or liquidation of any person in competition with the Security Trustee. If the Chargor receives any payment or benefit in breach of this Clause, it shall hold the same upon trust for the
Security Trustee and 
 

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 forthwith pay the same to the Security Trustee as a continuing security for the Secured Obligations.

  
 10.  TAXES AND OTHER DEDUCTIONS 
  
 All sums payable by the Chargor under this Charge shall be paid in full without set-off or counterclaim or any restriction or condition and free and clear of any tax or
other deductions or withholdings, if it is required by any law or regulation to make any deduction or withholding (on account of tax or otherwise), from any payment, the Chargor shall, together with such payment, pay such additional amount as will
ensure that the Security Trustee receives (free and clear of any tax or other deductions or withholdings) the full amount which it would have received if no such deduction or withholding had been required. The Chargor shall promptly forward to the
Security Trustee copies of official receipts or other evidence showing that the full amount of any such deduction or withholding has been paid over to the relevant taxation or other authority. 
  

11.  COSTS, CHARGES AND EXPENSES 
  
 The Chargor shall pay all reasonable costs and expenses in connection with preparation, execution and registration of this Charge. The Chargor shall from time to time forthwith on demand pay to or reimburse the Security
Trustee for all costs, charges and expenses (including legal and other fees on a full indemnity basis) incurred by the Security Trustee in connection with the lawful exercising any of its rights or powers hereunder or in suing for or seeking to
recover any sums due hereunder or otherwise preserving or enforcing its rights hereunder or in defending any claims brought against it in respect of this Charge (save and except for any claims against the Security Trustee arising from the wilful
misconduct or gross negligence of the Security Trustee, or from any breach of the terms of this Charge by the Security Trustee), or in releasing or re-assigning this Charge upon payment of all monies hereby secured and until payment of the same in
full, all such costs, charges and expenses shall be secured by this Charge. 
  
 12.  INDEMNITY

  
 12.1  The Chargor shall on demand indemnify the Security Trustee against all losses, liabilities,
damages, costs and expenses incurred by it in the lawful enforcement of the terms and conditions hereof and against all actions, proceedings, claims, demands, costs, charges and expenses which may be incurred, sustained or arise in respect of the
non-performance or non-observance of any of the Secured Obligations or any undertakings and agreements on the part of the Chargor herein contained or in respect of any matter or thing done or omitted relating in any way whatsoever to the Securities
(save and except for any claims against the Security Trustee arising from the wilful misconduct or gross negligence of the Security Trustee, or from any breach of the terms of this Charge by the Security Trustee). 
  
 12.2  The Security Trustee may retain and pay out of any money in the Security Trustee’s hands all sums necessary to effect
the indemnity contained in Clause 12.1 and all sums payable by the Chargor under Clause 12.1 shall form part of the Secured Obligations. 
 

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 13.  FURTHER ASSURANCE 
  
 13.1  The Chargor shall at any time and from time to time (whether before or after the security hereby created shall have become
enforceable) execute such further legal or other mortgages, charges or assignments and do all such transfers, assurances, acts and things as the Security Trustee may require over or in respect of the Securities to secure all monies, obligations and
liabilities hereby covenanted to be paid or hereby secured or for the purposes of perfecting and completing any assignment of the Security Trustee’s rights, benefits or obligations hereunder and the Chargor shall also give all notices, orders
and directions which the Security Trustee may require. 
  
 13.2  Without limiting the foregoing, the
Chargor agrees from time to time to execute and sign or to procure that the person for the time being holding any of the Securities as the Chargor’s nominee executes and signs all transfers, powers of attorney, proxies and other documents which
the Security Trustee may require for perfecting the Security Trustee’s title to any of the Securities or for vesting or enabling it to vest the same in itself, its nominee or in any purchaser including, without limitation, such resolutions by
the Chargor or the person holding any of the Securities as the Chargor’s nominee as the Security Trustee shall require for the purposes of approving and passing for registration any transfers of any of the Securities or for such other purposes
as the Security Trustee shall from time to time require. 
  
 13.3  The Chargor will do or permit to be done
everything which the Security Trustee may from time to time require to be done for the purpose of enforcing the Security Trustee’s rights hereunder and will allow the name of the Chargor to be used as and when required by the Security Trustee
for that purpose. 
  
 14.  POWER OF ATTORNEY 
  

The Chargor irrevocably appoints the Security Trustee by way of security to be its attorney (with full power of substitution) and in its name or otherwise on its
behalf and as its act and deed to sign, seal, execute, deliver, perfect and do all deeds, instruments, acts and things which may be required or which the Security Trustee shall think proper or expedient for carrying out any obligations imposed on
the Chargor hereunder or for exercising any of the powers hereby conferred or for giving to the Security Trustee the full benefit of this security and so that the appointment hereby made shall operate as a general power of attorney made under the
Powers of Attorney Ordinance (Chapter 31 of the Laws of Hong Kong). The Chargor ratifies and confirms and agrees to ratify and confirm any deed, instrument, act or thing which such attorney or substitute may execute or do. 
  
 15.  EVIDENCE OF DEBT 
  
 Any statement of account purporting to show, or an admission by the Chargor of, an amount due from the Chargor under the Security Documents or from the Chargor under this Charge and signed as correct
by any officer of the Security Trustee shall, in the absence of manifest error, be conclusive evidence against the Chargor of the amount so due. 
  
 

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 16.  SUSPENSE ACCOUNT 
  
 The Security Trustee may place and keep any monies received by virtue of this Charge (whether before or after the insolvency or
liquidation of the Chargor or the Company) to a suspense account for so long as the Security Trustee may think fit in order to preserve the rights of the Security Trustee to sue or prove for the whole amount of its claims against the Chargor or any
other person. 
  
 17.  GENERAL 
  
 17.1  No failure or delay by the Security Trustee in exercising any right, power or remedy hereunder shall impair such right, power or remedy or operate as a
waiver thereof, nor shall any single or partial exercise of the same preclude any further exercise thereof or the exercise of any other right, power or remedy. The rights, powers and remedies herein provided are cumulative and do not exclude any
other rights, powers and remedies provided by law. If at any time any provision of this Charge is or becomes illegal, invalid or unenforceable under the laws of any other jurisdiction, the legality, validity and enforceability of such provision
under the law of any other jurisdiction, and of the remaining provisions of this Charge, shall not be affected or impaired thereby. 
  
 17.2  The liabilities and obligations of the Chargor under this Charge shall remain in force until full, proper and valid payment of the Secured Obligations. 
  

17.3  Without limiting Clause 17.2, neither the liability of the Chargor nor the validity or enforceability of this Charge shall be prejudiced, affected or
discharged by: 
  
 (a)  the granting of any time or indulgence to the Chargor or any other
person; 
  
 (b)  any variation or modification of the Security Documents or any other
document referred to herein or therein; 
  
 (c)  the invalidity or unenforceability of any
obligation or liability of the Chargor under the Security Documents to which it is a party; 
  
 (d)  any invalidity or irregularity in the execution of the Security Documents; 
  
 (e)  any deficiency in the powers of the Chargor to enter into or perform any of its obligations under the Security Documents to which it is a party or any irregularity in the exercise thereof or any lack of authority by
any person purporting to act on behalf of the Chargor; 
  
 (f)  the insolvency or
liquidation or any incapacity, disability or limitation or any change in the constitution or status of the Chargor, or anything analogous thereto; 
  
 (g)  any other Security Document, charge, guarantee or other security or right or remedy being or becoming held by or available to the Security
Trustee or by any of the same being or becoming wholly or partly void, voidable or unenforceable or 
 

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 by the Security Trustee at any time releasing, refraining from enforcing, varying or in any other way dealing with any of
the same or any power, right or remedy the Security Trustee may now or hereafter have from or against the Chargor or any other person; 
  
 (h)  any waiver, exercise, omission to exercise, compromise, renewal or release of any rights against the Chargor or any other person or any compromise, arrangement or settlement with any of
the same; and 
  
 (i)  any act, omission, event or circumstance which would or may but for
this provision operate to prejudice, affect or discharge this Charge or the liability of the Chargor hereunder. 
  
 17.4  This Charge may be enforced without the Security Trustee first having recourse to any other security or rights or taking any other steps or proceedings against the Chargor or any other person and may be enforced for
any balance due after resorting to any one or more other means of obtaining payment or discharge of the monies, obligations and liabilities hereby secured. 
  
 17.5  Notwithstanding any discharge, release or settlement from time to time between the Security Trustee and the Chargor, if any security, disposition or payment granted or made to the
Security Trustee in respect of the Secured Obligations by the Chargor or any other person is avoided or set aside or ordered to be surrendered, paid away, refunded or reduced by virtue of any provision, law or enactment relating to bankruptcy,
insolvency, liquidation, winding-up, composition or arrangement for the time being in force, the Security Trustee shall be entitled hereafter to enforce this Charge as if no such discharge, release or settlement had occurred. 

 
 17.6  Any amendment or waiver of any provision of this Charge and any waiver of any default under this Charge shall
only be effective if made in writing and signed by the Security Trustee. 
  
 17.7  This Charge shall be
binding upon and enure to the benefit of each party hereto and its successors and permitted assignees and transferees. 
  
 17.8  The Security Trustee may assign and/or transfer all or any of its rights and/or obligations under this Charge or grant participations in all or any of its rights and/or obligations under this Charge to any other
person and for such purposes, the Security Trustee shall be entitled to make disclosure on confidential basis of information about the Chargor. The Chargor undertakes to take all necessary actions and sign all documents required by the Security
Trustee in connection with any such novation, assignment or transfer. 
  
 17.9  The illegality, invalidity
or unenforceability of any provision of this Charge or any of the Security Documents 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. 
  
 17.10  This Charge may be signed in any number of counterparts,
all of which when taken together shall constitute one and the same instrument. Either party may enter into this Charge by signing any such counterpart. 
  
 

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 18.  NOTICES 
  
 18.1  Each notice, demand or other communication to be given or made under this Charge shall be in writing and delivered or sent
to the relevant party at its address or fax number set out 
 below (or such other address or fax number as the addressee has by five days’ prior written notice specified to
the other party): 
  
 
	 To the Chargor:
 	 	 Fashion Resources (TCL), Inc.
 Fax
Number:        (+1 323) 881-0032
 Attention:              Patrick
Chow
 
	 
	  	 	  
	               To the
Security Trustee:
 	 	 UPS   Capital Global Trade Finance Corporation
 Telecopy/Fax Number:        (+1 404) 828-4408
 Attention:                              Kurt A. Niemeyer
 

 
  
 18.2  Any notice, demand or other communication so
addressed to the relevant party shall be deemed to have been delivered (a) if given or made by mail, two days after the date of posting; (b) if given or made by personal delivery, when delivered and (c) if given or made by fax, when the party
dispatching the fax receives evidence in form of an acknowledgement of receipt of the entire fax by the other party from the dispatching party’s facsimile machine. 
  
 19.  GOVERNING LAW AND JURISDICTION 
  
 19.1  This Charge is governed by and shall be construed in accordance with the laws of Hong Kong. 
  
 19.2  For the exclusive benefit of the Security Trustee, the parties irrevocably agree that the courts of Hong Kong are to have jurisdiction to settle any disputes which may arise out of or in connection with this Charge.

  
 19.3  Each of the parties hereto irrevocably waives any objection which it may now or hereafter have to
the laying of the venue of any proceedings in the courts of Hong Kong and any claim that any such proceedings have been brought in an inconvenient forum and further irrevocably agrees that a judgement in any proceedings brought in the courts of Hong
Kong shall be conclusive and binding upon the relevant party and may be enforced in the courts of any other jurisdiction, in each case to the fullest extent permitted by law. 
  
 19.4  Nothing contained in this Clause shall limit the right of the Security Trustee to take proceedings against the Chargor in any other court of competent
jurisdiction, nor shall the taking of proceedings in one or more jurisdictions preclude the taking of proceedings in any other jurisdiction, whether concurrently or not. 
  
 19.5  To the extent that the Chargor has or hereafter may acquire any immunity (sovereign or otherwise) from any legal action, suit or proceeding, from the
jurisdiction of any court or 
 

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 from set-off or any legal process (whether service or notice, attachment prior to judgement, attachment in aid of execution of judgement,
execution of judgement or otherwise) with respect to itself or any of its property, the Chargor hereby irrevocably waives and agrees not to plead or claim such immunity in respect of its obligations under this Charge. 
  
 20.  RELEASE AND DISCHARGE 
  
 If the Secured Obligations and all other moneys due and payable under the Note Instrument shall have been duly repaid and all the agreements, undertakings, terms and conditions contained therein and in
the Security Documents to be performed and observed by the Chargor and other parties thereto (other than the Security Trustee) shall have been duly performed and observed or in the event of conversion of the entire principal amount under the Note
Instrument into new shares in the capital of the Company, the Security Trustee shall at any time thereafter at the request of the Chargor, forthwith release and discharge this Charge and the security hereby created and release, reassign and transfer
all the Securities to the Chargor or as the Chargor shall direct and the Chargor shall bear the costs for such release and/or discharge and/or transfer. 
  
 IN WITNESS WHEREOF the Chargor has executed this Charge under seal on the day and year first before written. 
 

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 SCHEDULE 1 
  
 PARTICULARS OF SECURITIES 
  
 
	 Registered Holder
 
	    	 Number of ordinary shares
 of HK$1.00 each in
 Tarrant Company Limited
 
	    	 Certificate No(s)
 

	 Fashion Resource (TCL), Inc.
 	    	 599,999
 	    	 - 19 -
 
	 Gerard Rose
 (Alias: Gerard Guez)
 	    	 1
 	    	 - 17 -
 

 
 

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	 Signed and delivered
 In the presence of:
 	 	  	 	 FASHION RESOURCE (TCL), INC.
 
	 
	  	 	  	 	  	 	 By:
 	 	 /s/      Gerard Guez       
 

	 Antonio Silva Jr.
 Notary public
 	 	  	 	  
  
 Address:
 

 	 	 Gerard Guez
 Chairman
  
 3151 East Washington Blvd.
 Los Angeles, CA 90023
 

 
  
 My commission expires: 
 March 8, 2006 
 [NOTARY SEAL] 
  
 Accepted: 
  
 
	 UPS CAPITAL GLOBAL TRADE FINANCE CORPORATION
 
	 
	 By:
 	 	 /s/    SANJEEV
CHOPRA        
 

	  	 	 Sanjeev Chopra
 Business
Development
 

 
 

 14Prepared by R.R. Donnelley Financial -- Syndicated Composite Guarantee and Debenture

  
 EXHIBIT 10.107.2 
  
 DATED 13th. JUNE, 2002 
  
  
 TARRANT COMPANY LIMITED (1) 
  
 and 
  
 MARBLE LIMITED (2) 
  
 and 
  
 TRADE LINK HOLDINGS LIMITED (3) 
  

and 
  
 UPS CAPITAL GLOBAL TRADE

 FINANCE CORPORATION (4) 
  
  
  
 SYNDICATED COMPOSITE 
 GUARANTEE AND DEBENTURE

  
  
 BARLOW LYDE & GILBERT 
 24th Floor 
 Nine Queen’s Road Central 
 Hong Kong 
  
 

  
 CONTENTS 
  
 
	  	  	 PAGE
 

	 CLAUSE
 	  	  
	 
	 1
 	  	 
DEFINITIONS AND INTERPRETATION 
 	  	 1
 
	 
	 2
 	  	 
CHARGING PROVISIONS 
 	  	 5
 
	 
	 3
 	  	 
PAYMENT OF THE SECURED OBLIGATIONS 
 	  	 6
 
	 
	 4
 	  	 
GUARANTEE AND INDEMNITY 
 	  	 6
 
	 
	 5
 	  	 
REPRESENTATIONS AND WARRANTIES 
 	  	 9
 
	 
	 6
 	  	 
COVENANTS 
 	  	 10
 
	 
	 7
 	  	 
COLLECTION OF DEBTS AND RELATED MATTERS 
 	  	 11
 
	 
	 8
 	  	 
INSURANCE 
 	  	 12
 
	 
	 9
 	  	 
THE INVESTMENTS AND QUOTA 
 	  	 13
 
	 
	 10
 	  	 
NEGATIVE PLEDGE 
 	  	 16
 
	 
	 11
 	  	 
FURTHER ASSURANCE AND PERFECTION OF SECURITY 
 	  	 16
 
	 
	 12
 	  	 
RECEIVER 
 	  	 18
 
	 
	 13
 	  	 
VARIATION AND EXTENSION OF STATUTORY POWERS 
 	  	 21
 
	 
	 14
 	  	 
CONTINUING SECURITY 
 	  	 23
 
	 
	 15
 	  	 
POWER OF ATTORNEY 
 	  	 23
 
	 
	 16
 	  	 
INDEMNITIES 
 	  	 24
 
	 
	 17
 	  	 
NO WAIVER 
 	  	 24
 
	 
	 18
 	  	 
PAYMENTS AND DISCHARGE 
 	  	 24
 
	 
	 19
 	  	 
CURRENCY 
 	  	 25
 
	 
	 20
 	  	 
NOTICES 
 	  	 26
 
	 
	 21
 	  	 
TRUSTEE PROVISIONS 
 	  	 28
 
	 
	 22
 	  	 
LAW AND JURISDICTION 
 	  	 28
 
	 
	 SCHEDULE
 
	 
	 1
 	  	 
THE OBLIGORS 
 	  	 29
 
	 
	 2
 	  	 
THE SECURITIES 
 	  	 30
 
	 
	 3
 	  	 
THE QUOTA 
 	  	 31
 

 
 

  
 THIS DEBENTURE is made the 13th. day of June, 2002 

 
 BETWEEN:- 
  
 (1)  THE COMPANIES referred to in Schedule 1 (together the “Obligors” and individually an “Obligor”); and 
  
 (2)  UPS CAPITAL GLOBAL TRADE FINANCE CORPORATION in its capacity as trustee for the Beneficiaries (the “Security Trustee”).

  
 IT IS AGREED as follows:- 
  
 1  
DEFINITIONS AND INTERPRETATION 
  
 1.1  In this Debenture, including the
Schedules, the following words and expressions shall (except where the context otherwise requires) have the following meanings:- 
  
 
	 “Beneficiaries”
 	  	 the Security Trustee, the Agent and each of the Banks and “Beneficiary” means any one of them;
 
	 
	 “Charged Assets”
 	  	 in relation to each Obligor, all of its property or properties and/or other assets and, where the context so admits, each of them and any part thereof and
the proceeds of the disposal of the same and all rights, title and interest in and to the same, in each such case as may now or in the future be the subject of the security constituted or intended to be constituted by this Debenture;

	 
	 “Debts”
 	  	 in relation to each Obligor, (i) all book debts, both present and future, due or owing to such Obligor and all other monetary debts and claims, choses in
action and other rights and benefits both present and future (including, in each such case, the proceeds thereof and all damages and dividends in relation thereto) due or owing to such Obligor and the benefit of all related rights and remedies
(including under negotiable or non-negotiable instruments, letters of credit, guarantees, indemnities, legal and equitable charges, reservation of proprietary rights, rights of tracing and liens) and (ii) all sums, both present and future, due or
owing to such Obligor by way of grant, subsidy or refund by any statutory, legal or governmental body, authority or institution;
 
	 
	 “Derivative Assets”
 	  	 all assets deriving from any of the Securities owned by any Obligor including all allotments, accretions, offers, rights, dividends, interest, income,
benefits and
 

 
 

 1 

  
 
	  	  	 advantages whatsoever at any time accruing, offered or arising in respect of or incidental to any of the Securities and all stocks, shares, rights, money or
property accruing or offered at any time by way of conversion, redemption, bonus, preference, exchange, purchase, substitution, option, interest or otherwise in respect thereof;
 
	 
	 “Encumbrance”
 	  	 any mortgage, charge, assignment by way of security, pledge, lien, hypothecation, right of set-off, reservation of title arrangement, preferential right
(save as arising under the general law for the protection of certain classes of creditors) or any trust, flawed asset or other arrangement for the purpose of and having a similar effect to the granting of security, or other security interest of any
kind;
 
	 
	 “Expenses”
 	  	 all banking, legal and other costs, charges, expenses and/or liabilities paid or, if earlier, incurred by or on behalf of any Beneficiary or any Receiver in
each case on a full indemnity basis in relation to any of the Charged Assets or in protecting, preserving, improving, considering the enforcement or exercise of or enforcing or exercising or attempting to enforce or exercise, any rights arising
under or pursuant to any of the Finance Documents and/or in procuring the payment, performance or discharge of any of the Secured Obligations and including, without limitation, the principal amount of any borrowings together with interest thereon
and all other expenses and/or liabilities of any Beneficiary or any Receiver paid or incurred from time to time in relation to the exercise of any right or power on the part of any Beneficiary or any Receiver referred to in the Finance
Documents;
 
	 
	 “Facility Agreement”
 	  	 the syndicated letter of credit facility agreement entered into on even date herewith between the Obligors (1), the Banks (2) and UPS Capital Global Trade
Finance Corporation as Agent and Issuing Bank (3) whereby it was agreed that there should be made available to the Obligors a letter of credit facility of up to US$25 million upon the terms and conditions contained therein;
 
	 
	 “Finance Documents”
 	  	 the Facility Agreement, this Debenture, the Security Documents and all other documents from time to time entered into by any Obligor or any other person in
connection with or pursuant to the terms of the Facility Agreement, this Debenture, the Security Documents or any other such document, in each case as amended or modified from time to time;
 

 
 

 2 

  
 
	 “Hong Kong”
 	  	 the Hong Kong Special Administrative Region of the People’s Republic of China;
 
	 
	 “Investments”
 	  	 in relation to each Obligor, its Securities and the Derivative Assets relating to such Securities;
 
	 
	 “Quota”
 	  	 in relation to each Obligor, all its rights, title to and interest in any textile export quota in respect of which the Obligor is the registered holder, or
in which it otherwise has an interest, including without limitation the textile export quota which is more particularly specified in Schedule 3;
 
	 
	 “Receivables Account”
 	  	 any separate and denominated account as may be maintained by any of the Obligors with a bank (other than any Beneficiary) in accordance with the provisions
of Clause 7.3;
 
	 
	 “Receiver”
 	  	 a receiver and/or manager (including, as the context admits, an administrative receiver) appointed under this Debenture;
 
	 
	 “Secured Obligations”
 	  	 all monies, obligations and liabilities (whether present or future, actual or contingent) on the part of each Obligor to any Beneficiary to be paid,
performed or discharged, whether directly or indirectly, under or pursuant to the terms of any of the Finance Documents and/or in connection with the loan facility or other financial accommodation from time to time granted or otherwise made
available pursuant thereto, together with all Expenses and any interest charged under the terms of this Debenture;
 
	 
	 “Securities”
 	  	 in relation to each Obligor, all shares, stocks, debentures, debenture stock, bonds and securities of any kind whatsoever owned by such Obligor (including
rights to subscribe for, convert into or otherwise acquire the same) whether marketable or otherwise, and all other interests (including loan capital) of such Obligor both present and future in any company, firm, consortium or entity wherever
situate including those details of which appear in Schedule 2 and set opposite the name of such Obligor; and
 
	 
	 “Security Documents”
 	  	 (i) the guarantee and security agreement entered into on even date herewith by Tarrant Apparel Group and Fashion Resource (TCL) Inc in favour of the Security
Trustee; (ii) the guarantee entered into on even date herewith by Mr Gerard Guez in favour of the Security Trustee; (iii) a charge over shares executed on even
 

 
 

 3 

  
 
	  	  	 date herewith by Fashion Resource (TCL) Inc. in favour of the Security Trustee in respect of its shares in Tarrant Company Limited, and (iv) the
Intercreditor Agreement, in each case as amended or modified from time to time.
 

 
  
 1.2  Words and phrases which are not defined or construed
in this Debenture but which are defined or construed in the Facility Agreement, the Companies Ordinance or the Bankruptcy Ordinance shall be construed as having the meanings ascribed to them therein. To the extent that there is any inconsistency
between the terms of this Debenture and the Facility Agreement, the terms of the Facility Agreement shall prevail. 
  
 1.3  In construing this Debenture, general words introduced by the word “other” shall not be given a restrictive meaning by reason of the fact that they are preceded by words indicating a particular class
of acts, matters or things and general words shall not be given a restrictive meaning by reason of the fact that they are followed by particular examples intended to be embraced by the general words. In addition, the words “any of”
shall be construed as a reference to any one or more (including all) of the rights, assets, liabilities or other things referred to. 
  
 1.4  The security constituted by, and the rights of the Security Trustee under, this Debenture shall be enforceable notwithstanding any change in the constitution of any Beneficiary or any Beneficiary’s
absorption in or amalgamation with any other person or the acquisition of all or part of any Beneficiary’s undertaking by any other person. 
  
 1.5  The headings in this Debenture are inserted for convenience only and shall not affect its construction or interpretation and references to a Clause or Schedule are (unless otherwise
stated) to a Clause in, or a Schedule to, this Debenture. 
  
 1.6  Any reference in this Debenture to
“this Debenture” or to any other agreement or document shall, unless the context otherwise requires, be construed as a reference to this Debenture or to such other agreement or document as the same may from time to time be amended,
varied, supplemented, novated or replaced and shall include any document which is supplemental to, is expressed to be collateral with, or is entered into pursuant to or in connection with, the terms of this Debenture or of such other agreement or
document. 
  
 1.7  The illegality, invalidity or unenforceability of any provision of this Debenture under
the law of any jurisdiction shall not affect its validity or enforceability under the law of any other jurisdiction. 
  
 1.8  Save where the context otherwise requires, the plural of any term includes the singular and vice versa. 
  
 1.9  Any reference in this Debenture to any ordinance, statute or statutory provision shall, unless the context otherwise requires, be construed as a reference to such ordinance, statute or statutory provision as
in force at the date of this Debenture and as subsequently re-enacted or consolidated and shall also include all instruments, 
 

 4 

  
 orders and regulations for the time being made thereunder or deriving validity therefrom. 

 
 1.10  In this Debenture any reference to the “Agent”, the “Arranger”, the
“Security Trustee”, the “Obligor” any “Bank” or any “Beneficiary” shall, unless the context otherwise requires, be construed so as to include their respective assignees, Transferees
or successors in title, whether immediate or derivative in relation to their respective interests. 
  
 1.11  The obligations of the Obligors under this Debenture are joint and several. 
  
 2  
CHARGING PROVISIONS 
  
 2.1  Fixed Charges 
  
 Each Obligor, as beneficial owner and as a continuing security for the payment and discharge of the Secured Obligations, hereby charges to
the Security Trustee (in each case as trustee for and on behalf of each of the Beneficiaries):- 
  
 2.1.1  by way of first fixed charge and agrees to mortgage to the Security Trustee (as trustee for and on behalf of each of the Beneficiaries) its Investments; 
  
 2.1.2  by way of first fixed charge its Quota; 
  
 2.1.3  by way of first fixed charge its Debts, and all deeds and documents from time to time relating to its Charged Assets; and 

 
 2.1.4  by way of first fixed charge all the rights, title and interest of such Obligor in and to all
chattels from time to time hired, leased or rented by such Obligor to any other person together, in each case, with the benefit of the related hiring, leasing or rental contract and any guarantee, indemnity or other security for the performance of
the obligation of any person under or in respect of such contract. 
  
 2.2  Floating Charge

  
 Each Obligor, as beneficial owner and as a continuing security for the payment, performance and discharge of the
Secured Obligations, hereby charges to the Security Trustee (as trustee for and on behalf of each of the Beneficiaries) by way of floating charge the undertaking and all property, assets and rights of such Obligor, whatsoever and wheresoever, both
present and future (save insofar as any of the same shall for the time being be effectively mortgaged or charged by way of specific fixed charge under the provisions of Clauses 2.1.1 to 2.1.4 inclusive or assigned by way of security under the
provisions of Clause 2.3). 
  
 2.3  Assignments by way of Security 
  
 Each Obligor as beneficial owner and as a continuing security for the payment, performance and discharge of the Secured Obligations hereby
assigns and agrees to assign by way of security to the Security Trustee (in each case as trustee for and on behalf of each of the Beneficiaries) all its rights, title and interest in and to each 
 

 5 

 Receivables Account maintained by it and any monies from time to time standing to the credit of any such account. 
  
 3  
PAYMENT OF THE SECURED OBLIGATIONS 
  
 3.1  Covenant 

 
 Each of the Obligors hereby jointly and severally covenants to pay, perform and discharge to the Security Trustee (as trustee
for and on behalf of each of the Beneficiaries) the Secured Obligations on the due date or dates for payment, performance and discharge or, in the absence of any such date, forthwith upon any demand made by the Security Trustee. 

 
 3.2  Interest 
  
 Save to the extent that the Security Trustee is otherwise entitled to do so under the Facility Agreement, interest may be added by the Security Trustee to any of the Secured Obligations which shall
remain unpaid on the due date for payment, from such date until payment (whether before, on or at any time after demand or judgment or the liquidation of any Obligor) at the rate of three per cent (3%) per annum above the Prime rate for the time
being of Bank of America, which interest may be compounded (whether before, on or at any time after demand or judgment or the liquidation of any Obligor), by the Security Trustee with monthly rests to the extent that it shall remain unpaid.

  
 4  
GUARANTEE AND INDEMNITY 
  
 4.1  Guarantee 
  
 Each of the Obligors unconditionally and irrevocably guarantees to the Security Trustee (as trustee for and on behalf of each of the
Beneficiaries) the due and punctual payment, performance and discharge by each other Obligor of the Secured Obligations. If and whenever any Obligor shall default in the payment, performance or discharge of any of the Secured Obligations, each other
Obligor shall, upon written demand by the Security Trustee, promptly pay, perform or discharge to the Security Trustee (for the account of the Beneficiaries) the Secured Obligations in respect of which such default has been made. 

 
 4.2  Indemnity 
  
 Each Obligor agrees to indemnify and hold harmless the Security Trustee and each of the Beneficiaries from time to time on demand for and against any loss incurred by any such person as a result of any
of the Secured Obligations being or becoming void, voidable or unenforceable for any reason whatsoever, whether known to such person or persons or not. The amount of such loss shall be the amount which the person or persons suffering it would
otherwise have been entitled to recover from such other Obligor. 
  
 4.3  Continuing Security

  
 The obligations of each Obligor under this Debenture are continuing obligations and shall remain in force until
all of the Secured Obligations have been discharged 
 

 6 

 in full. The obligations of each Obligor under this Debenture shall not be (or be construed so as to be) satisfied by any intermediate discharge
or payment of or on account of any of the Secured Obligations or any settlement of account between the Security Trustee or any other Beneficiary and any Obligor or any other person, or any other matter. 
  
 4.4  Protective Provisions 
  
 Neither the obligations of any Obligor nor the rights and remedies of the Security Trustee under any of the Finance Documents or otherwise conferred by law shall be discharged, prejudiced or impaired
by reason of:- 
  
 4.4.1 any variation of any of the Secured Obligations or of the terms or
conditions of any of the Finance Documents or of any Encumbrance, guarantee or other assurance held or to be held as security for the payment, performance or discharge of any of the Secured Obligations (any such Encumbrance, guarantee or other
assurance together referred to in this Clause 4 as “related security”); 
  
 4.4.2 any failure on the part of any Beneficiary (whether intentional or not) to take, perfect or realise (whether in full or in part) the security constituted or intended to be constituted by this Debenture or any related security
now or in the future agreed to be taken in respect of any of the Secured Obligations; 
  
 4.4.3 any
incapacity or change in the constitution of any party to any of the Finance Documents or to any related security; 
  
 4.4.4 any of the Secured Obligations or any obligation of any person under any of the Finance Documents or under any related security being or becoming invalid, illegal, void or unenforceable for any reason; 
  
 4.4.5 any time or other indulgence given or agreed to be given to, or any composition or other arrangement made with or
accepted from, any Obligor in respect of any of the Secured Obligations or any other person in respect of any of its obligations under any related security; 
  
 4.4.6 any waiver or release of any of the Secured Obligations or of any obligation of any person under any related security or any failure to realise, in
full or in part, the value of, or any discharge or exchange of the security constituted or intended to be constituted by this Debenture or any related security; 
  
 4.4.7 any Obligor or any other person party to any of the Finance Documents or any related security being wound up, going into administration or liquidation
or making any composition or arrangement with its creditors (whether or not sanctioned by the court and whether or not any Beneficiary has agreed to such compromise or arrangement) and so that where, by virtue of any compromise or arrangement, any
of the Secured Obligations are transferred to any other person, the guarantee and indemnity of each Obligor contained in this Debenture shall take effect as if the term “Obligor” included such other person; or 
 

 7 

  
 4.4.8  any other act, event or omission which, but for
this provision, would or might operate to offer any legal or equitable defence for or impair or discharge any of the Secured Obligations or any obligation of any person under any related security or prejudicially affect the rights or remedies of the
Security Trustee under this Debenture or otherwise conferred by law. 
  
 4.5  Independent
Obligations 
  
 The obligations of each Obligor under this Debenture is additional to, and not in substitution
for, any related security and the obligations assumed by such Obligor under this Debenture may be enforced without first having recourse to any related security and without making or filing any claim or proof in a winding-up or dissolution of any
other Obligor or any other person party to any of the Finance Documents or any related security or first taking any steps or proceedings against any other Obligor or any such person. 
  
 4.6  Non-Competition 
  
 Until all of the Secured Obligations have been satisfied in full and none of the Beneficiaries are under any further obligation, actual or contingent, to any Obligor, no Obligor shall:- 
  
 4.6.1  exercise any right of subrogation, indemnity, set-off or counterclaim against any other Obligor or any
person party to any related security; 
  
 4.6.2  claim payment of any other monies for the
time being due to it by any other Obligor or any person party to any related security by reason of the performance by it of its obligations under any of the Finance Documents or under any related security or on any account whatsoever or exercise any
other right or remedy or enforce any security, guarantee or other assurance which it has in respect thereof; 
  
 4.6.3  claim any contribution from any other Obligor, or any other person party to any of the Finance Documents or any related security; 
  
 4.6.4  negotiate, assign, charge or otherwise dispose of any monies, obligations or liabilities now or at any future time due or owing to it by
any other Obligor or any person party to any related security or any encumbrance, guarantee or other assurance in respect thereof; or 
  
 4.6.5  claim or prove in a winding-up or dissolution of any other Obligor or any other person party to any of the Finance Documents or any related security in competition with any
Beneficiary; and 
  
 if any Obligor receives any sums in contravention of this Clause 4.6, it shall hold them on trust to be applied
promptly in or towards the satisfaction of the Secured Obligations. 
 

 8 

  
 4.7  No Security 
  
 Each Obligor warrants that it has not taken, and agrees that it will not take, from any other Obligor or any person party to any related
security any Encumbrance, guarantee or other assurance in respect of or in connection with its obligations under this Debenture. If any Obligor takes any such Encumbrance, guarantee or other assurance in contravention of this Clause, it shall hold
it on trust for the Security Trustee (as trustee for and on behalf of each of the Beneficiaries) until such time as all the Secured Obligations have been satisfied in full (and none of the Beneficiaries is under any further obligation, actual or
contingent, to any Obligor) and shall on request promptly deposit the same with and/or charge the same to the Security Trustee (as trustee for and on behalf of each of the Beneficiaries) in such manner as the Security Trustee may require as a
security for the due and punctual payment, performance and discharge by such Obligor of the Secured Obligations. 
  
 4.8  Suspense Account 
  
 If any Obligor is wound up, goes into liquidation or makes
any composition or arrangement with its creditors, neither the existence of this Debenture nor any monies received or recovered by the Security Trustee pursuant to this Debenture shall impair the right of the Security Trustee to prove in such
winding-up, liquidation, composition or arrangement for the total amount due from such Obligor. The Security Trustee may at any time and from time to time place and, for so long as it thinks fit, keep any monies received or recovered under this
Debenture in a separate or suspense account, in such name as it thinks fit, without any intermediate obligation on its part to apply the same in or towards discharge of the Secured Obligations. 
  

5  
REPRESENTATIONS AND WARRANTIES
 
  
 Each Obligor represents and warrants to the Security Trustee (as trustee for and on
behalf of each of the Beneficiaries) that:- 
  
 5.1  Beneficial
owner:    it is the sole, absolute and beneficial owner of the Quota specified in Schedule 3 opposite its name, the Securities specified in Schedule 2 opposite its name and of all other Investments owned by it as at the date
of this Debenture and it is the sole legal and beneficial owner of its other Charged Assets free and clear from any Encumbrance other than under or pursuant to the Facility Agreement or this Debenture; 
  
 5.2  No disposals:    except in accordance with the terms of the Facility Agreement,
it has not disposed of any interest in, or granted any rights (whether of pre-emption or otherwise) over, any of its Charged Assets nor agreed to do any of the same or subordinated or agreed to subordinate to the rights of any other person in
relation to debts owed to such person, or released or agreed to release, any of its rights in or to any of its Debts; and 
  
 5.3  No claims:    none of its Charged Assets is the subject of any claim, assertion, infringement, attack, right, action or other restriction or arrangement of whatever nature which does
or may impinge upon the 
 

 9 

  
 validity, enforceability or ownership of its Charged Assets by such Obligor or
their utilisation by such Obligor and its Investments are and will be fully paid up. 
  
 6  
COVENANTS
 
  
 6.1  General Covenants 
  
 Each Obligor covenants with the Security Trustee (as trustee for and on behalf of each of the Beneficiaries) that it will:- 

 
 6.1.1  Quota:    take all such steps as may be necessary to protect,
maintain and renew its Quota, including without limitation by ensuring that it utilises its full Quota for each category of goods in each year (subject to Clause 9.4); 
  
 6.1.2  Licences:    take all such steps as may be necessary to protect, maintain and renew its Licences; 

  
 6.1.3  Obligations generally:    comply with its obligations
in the Finance Documents and comply with every covenant (whether restrictive or otherwise), obligation and provision on its part to be complied with (and use its best endeavours to procure compliance by each other party thereto with every covenant,
obligation and provision on the part of each such other party to be complied with) contained in any document affecting or constituting any of its Charged Assets or their use and enjoyment and not enter into any onerous or restrictive obligations
affecting any of its Charged Assets; 
  
 6.1.4  Deeds:    deposit with the Security Trustee and permit the Security Trustee to hold and retain all deeds and documents relating to or constituting any of its Charged Assets and hold on
trust for the Security Trustee (as trustee for and on behalf of each of the Beneficiaries) any such deeds and documents not for the time being so deposited (and such Obligor hereby declares itself as trustee accordingly); 
  
 6.1.5  Registrations:    make all such filings and registrations and take all such
other steps as may be necessary in connection with the creation, perfection or protection of the security constituted or intended to be constituted by this Debenture and pay all application, registration, renewal and other fees necessary for
effecting, protecting, maintaining or renewing registrations in respect of any of its Charged Assets; 
  
 6.1.6  Value of the security:    not do or cause or permit to be done anything which may in any way depreciate, jeopardise or otherwise prejudice the value of the security constituted or intended
to be constituted by this Debenture; 
  
 6.1.7  Dealings with Charged
Assets:    not amend, vary, supplement, replace, release, novate, waive, surrender, determine, discharge, rescind or avoid any of its Charged Assets nor compound, grant any time or other indulgence or otherwise deal with any
of its Charged Assets nor purport 
 

 10 

  
 to do so (save, in the case of assets of such Obligor charged by this Debenture
by way of floating charge only, in the ordinary course of its operations). 
  
 6.2  Information
Covenants 
  
 6.2.1  General:    The Security Trustee may at
any time seek from any person having dealings with any Obligor such information about such Obligor and its affairs as the Security Trustee may think fit. Each Obligor authorises and requests any such person to provide any such information to the
Security Trustee and agrees to provide such further authority for this purpose as the Security Trustee may require from time to time. 
  
 6.2.2  Investigations:    If the Security Trustee so requests at any time, all or any of the Obligors shall appoint accountants nominated by the Security Trustee to
investigate the financial affairs of each such Obligor, and/or any subsidiary of each such Obligor and/or any company of which each such Obligor is a subsidiary. For the purposes of this Clause 6.3.2, each Obligor authorises the Security Trustee to
make such appointment on such Obligor’s behalf. In every case where accountants are so appointed in relation to any Obligor, the costs, fees and expenses of such accountants shall be paid by such Obligor, but the Security Trustee may, at its
sole discretion, pay such costs, fees and expenses on behalf of such Obligor and, in such case, such Obligor agrees to reimburse the Security Trustee forthwith on demand. 
  
 7  
COLLECTION OF DEBTS AND RELATED MATTERS
 
  
 Each Obligor covenants with the Security Trustee (as trustee for and on behalf of each of
the Beneficiaries) that it will:- 
  
 7.1  Collection:    get in
and realise its Debts in the ordinary course of its business and not release, exchange, compound, set off, grant time or indulgence, subordinate its rights in respect of any of its Debts to the rights of any other person in relation to debts owed to
such person or otherwise deal with its Debts in favour of any person (nor, in each such case, purport to do so) save in the ordinary course of its business and, in any event, not sell, assign, factor, discount or otherwise charge its Debts in favour
of any person, nor purport to do so; 
  
 7.2  Assignments:    without prejudice to the generality of Clause 11.1, if called upon by the Security Trustee to do so, execute in favour of the Security Trustee (as trustee for and on behalf of
each of the Beneficiaries) or as the Security Trustee may otherwise direct, assignments of its Debts or such other transfers or equivalent arrangements as the Security Trustee may require and take such steps as the Security Trustee may require to
perfect such assignments, transfers or equivalent arrangements including, without prejudice to the generality of the foregoing and without prejudice to the Security Trustee’s right to do so, giving notice of any such assignment, transfer or
other arrangement to any of the persons (as the Security Trustee shall specify) from whom its Debts are due, owing or incurred by delivery to each such person of a Notice of Assignment duly executed by such Obligor and procuring that each such
person delivers to the Security Trustee (if the 
 

 11 

  
 Security Trustee so requires) a written acknowledgement substantially in the form
of the acknowledgement and agreement attached to the Notice of Assignment; and 
  
 7.3  Designated accounts:    subject and without prejudice to the provisions of this Debenture and to any provisions in the Facility Agreement regarding payments into any designated account,
unless the Security Trustee otherwise agrees, pay the proceeds of its Debts into a separate and denominated account with the Security Trustee or into such an account (governed by a mandate in form and substance satisfactory to the Security Trustee
conferring control over such account on the Security Trustee) with such other bank as the Security Trustee may from time to time specify in writing, and so that such Obligor hereby declares itself trustee of the proceeds of any such Debts not from
time to time so paid to hold the same upon trust for the Security Trustee (as trustee for and on behalf of each of the Beneficiaries) to pay the same to the Security Trustee in or towards payment and discharge of the Secured Obligations in such
order and manner as the Security Trustee may in its absolute and unfettered discretion from time to time conclusively determine. 
  
 8  
INSURANCE
 
  
 8.1  Insurance Covenants 
  
 Each Obligor covenants with the Security Trustee (as trustee for and on behalf of each of the Beneficiaries) that it will at its own
expense (failing which the Security Trustee may elect, and is hereby authorised, to procure such compliance), comply with (or procure compliance with) all obligations as to insurance imposed by the terms of any prior mortgage or charge, lease,
agreement for lease, tenancy or other binding contract comprised in and/or affecting any of its Charged Assets or under which such Obligor derives its title or interest to any relevant Charged Asset and, subject to the foregoing and so far as not
inconsistent with the said terms, such Obligor shall:- 
  
 8.1.1  insure and keep insured
all fixed and other plant and machinery forming part of its Charged Assets with insurers previously approved by the Security Trustee in writing against loss or damage by fire, explosion, storm, malicious damage, and such other risks and
contingencies as the Security Trustee shall from time to time require, to a minimum of the full cost of reinstatement thereof from time to time; 
  
 8.1.2  maintain such other insurances as are normally maintained by prudent companies carrying on similar business (including public liability insurance and employees’ liability
insurance); 
  
 8.1.3  punctually pay all premiums and other sums payable under or in
relation to each policy in which it is interested and promptly, if the Security Trustee so requests, produce evidence satisfactory to the Security Trustee of such payments; 
  
 8.1.4  not make, do, consent or agree to any act or omission which would or might render any policy in which it is interested invalid, void,
voidable 
 

 12 

  
 or unenforceable or render any proceeds of any such policy irrecoverable whether
in whole or in part, and not alter the terms of any such policy or allow any such policy to lapse; and 
  
 8.1.5  effect all insurances pursuant to Clause 8.1.1 with the Security Trustee named as joint insured or, where the Security Trustee agrees that joint insurance shall not be practicable, with the interest of the Security
Trustee endorsed on the relevant policy in which it is interested and every such policy shall contain a standard mortgagee clause whereby such insurance shall not be vitiated or avoided as against a mortgagee in the event or as a result of any
misrepresentation, act or neglect or failure to make disclosure on the part of the insured party or in the event of any circumstances beyond the control of the insured party. 
  
 8.2  Declaration of Trust 
  
 Each Obligor hereby declares itself as trustee of all monies not paid directly to the Security Trustee (as trustee for and on behalf of each of the Beneficiaries) by the insurers in relation to any policy in which it is interested
whether or not effected or maintained pursuant to the obligations of such Obligor under this Clause 8, to hold the same upon trust to apply the same either in making good to the satisfaction of the Security Trustee the loss or damage in respect of
which the same may have been received (such Obligor making good any deficiency from its own resources) or, at the option of the Security Trustee and without prejudice to any obligations and/or entitlements expressly provided in the relevant Policy
or to any rights, claims and/or obligations having priority to the obligations imposed by this Debenture, to pay the same to the Security Trustee (as trustee for and on behalf of each of the Beneficiaries) for application in or towards payment and
discharge of the Secured Obligations in accordance with the Facility Agreement. 
  
 9  
THE INVESTMENTS AND QUOTA
 
  
 9.1  Obligors’ covenants in respect of the Investments

  
 Each Obligor covenants with the Security Trustee (as trustee for and on behalf of each of the Beneficiaries) that
it will:- 
  
 9.1.1  Deposit of documents of title:    without
prejudice to the generality of the provisions of Clause 6.2.3, forthwith upon execution of this Debenture and as soon as practicable following its acquisition of any Investment deposit or procure the deposit with the Security Trustee and permit the
Security Trustee to hold and retain all stock and share certificates and documents of title relating to each of its Investments at such time; 
  
 9.1.2  Execution of transfers:    without prejudice to the generality of the provisions of Clause 11.1, forthwith upon execution of this Debenture (in relation to
the Securities details of which appear in Schedule 2 opposite its name) and as soon as practicable following its acquisition of any Investment and at any other time upon request by the Security Trustee promptly deliver to the Security Trustee such
instruments of transfer (with the name of the transferee, the consideration and the date left blank, but otherwise duly completed and executed) and other 
 

 13 

 documents as the Security Trustee may from time to time require for perfecting its title to the Investments of such
Obligor (duly executed by or signed on behalf of the registered holder) or for vesting or enabling it to vest the same in itself or any of its nominees or in any purchaser provided that, in the event of any such transfer being effected, neither the
Security Trustee nor any of its nominees shall be liable for any loss occasioned by any exercise or non-exercise of rights attached to such Investments or by any failure to report to such Obligor any notice or other communication received in respect
of such Investments; 
  
 9.1.3  No restrictions on
transfer:    ensure that its Investments are at all times free from any restriction on transfer (whether under any relevant constitutive documents or otherwise) by the Security Trustee or any of its nominees to perfect or
enforce the security constituted or intended to be constituted by this Debenture and procure that the board of directors of any Company in which any of its Investments are held approve any transfer of any of its Investments desired to be made by the
Security Trustee in the exercise of the rights, powers and remedies conferred upon it by this Debenture or by law; 
  
 9.1.4  Derivative Assets:    upon the accrual, offer or issue of any Derivative Assets deriving from its Investments (apart from dividends, interest payments or
other payments of money, as the case may be, forming part of its Investments) deliver to the Security Trustee (or procure the delivery to the Security Trustee of) all such Derivative Assets and the certificates and documents of title to or
representing the same together with each of the documents required to be duly executed, completed and delivered under and in accordance with the terms of Clause 9.2; 
  
 9.1.5  Calls:    duly and promptly pay or procure the payment of all calls, instalments and other payments in respect
of any of its Investments provided that if it defaults in making any such payment, the Security Trustee may (but shall not be obliged to) pay such amounts on behalf of such Obligor and shall be reimbursed by such Obligor forthwith on demand;

  
 9.1.6  Exercise of Voting Rights by Obligors:    (at all
times when its Investments have not been legally transferred into the name of the Security Trustee) exercise any voting rights attaching to its Investments in such manner as it thinks fit provided that such voting rights shall not be exercised in
any manner which is inconsistent with the security constituted or intended to be constituted by this Debenture or is in breach of any of the provisions of any of the Finance Documents and notwithstanding the foregoing, at any time after the Security
Trustee becomes entitled to appoint a Receiver, procure that all voting and other rights in respect of its Investments are exercised in accordance with the Security Trustee’s instructions; and 
  
 9.1.7  Variation of rights:    not, by the exercise of any voting rights or
otherwise, permit or agree to any proposed compromise, arrangement, capital reorganisation, conversion, exchange, repayment or takeover 
 

 14 

  
 offer affecting or in respect of any of its Investments or to any variation of
the rights attaching to or conferred by any of its Investments or to any conversion of any of its Investments into an uncertificated security. 
  
 9.2  Exercise of Voting Rights by Security Trustee and Dividend Entitlement 
  
 If any of the Investments of any Obligor are transferred into the name of the Security Trustee or any nominee of the Security Trustee, then (subject always to the provisions of Clause 9.1.6):-

  
 9.2.1  the Security Trustee shall use its reasonable endeavours to procure that all
voting rights attached to such Investments are exercised as such Obligor shall direct provided that the Security Trustee shall not be obliged to comply with such Obligor’s directions if, as a result, such voting rights would be exercised in any
manner which (a) is inconsistent with the security constituted or intended to be constituted by this Debenture or (b) is in breach of any provision of any of the Finance Documents or (c) would or might result in permission or agreement being given
to any compromise, capital reorganisation, conversion, exchange, repayment or takeover offer affecting or in respect of any of such Investments or to any variation of the rights attaching to or conferred by any of such Investments; and 

 
 9.2.2  any and all dividend and interest payments and other distributions accruing on or deriving
from such Investments shall be paid to such Obligor. 
  
 9.3  Dividends and Voting Rights following
Enforcement 
  
 On or at any time after the Security Trustee becomes entitled to appoint any person or persons to
be a Receiver of any of the Charged Assets, the Security Trustee (or its nominee(s)) or any Receiver shall, on notice in writing to any of the Obligors, have the right (a) to exercise (or direct the exercise of) any and all voting rights attaching
to any of the Investments of such Obligor in such manner as any such person so acting shall in its sole discretion think fit and (b) to receive, retain and give a good discharge for any and all payments falling due in respect of dividends or other
distributions of profits or capital on or arising from any of such Investments notwithstanding that they may have accrued in respect of a period prior to the time at which the security constituted by this Debenture shall have become enforceable.

  
 9.4  Obligors’ covenants in respect of the Quota 
  
 Each Obligor covenants with the Security Trustee (as trustee for and on behalf of each of the Beneficiaries) that it will not:-

  
 9.4.1  Protection of Quota:    do any act or thing, or make
any omission, which would or may cause the Obligor’s entitlement to, allocation of, or enjoyment or use of its Quota to be cancelled, forfeited, surrendered, reduced or otherwise impaired, or which would result in the Obligor’s
registration with the Trade Department of the Government of Hong Kong being cancelled; or 
  

	

 

 15 

  
 9.4.2  Sale or transfer of
Quota:    sell, transfer, assign or otherwise dispose of all or any part of its Quota to any third party except with the Security Trustee’s prior written consent, and provided always that any such sale, transfer,
assignment or disposal shall be on terms that it shall not affect the Obligor’s Quota allocation for any subsequent year. For the purposes of this Clause 9.4.2, the parties hereby acknowledge that the Security Trustee’s consent to the
temporary transfer of Quota by any Obligor may be given by the Security Trustee in advance on a monthly basis, subject to such conditions (including without limitation any conditions or restrictions as to the price of such transfer and/or the
application of any consideration received by the Obligor in respect of such transfer) as the Security Trustee may from time to time specify, and further subject to the Security Trustee’s overriding right to cancel or withdraw such consent at
any time forthwith upon written notice to the Obligor. 
  
 10  
NEGATIVE PLEDGE 
  
 Each Obligor agrees that it will not, save as permitted under the
Facility Agreement or this Debenture:- 
  
 10.1  Encumbrances:    create or permit to subsist any Encumbrance on or over its Charged Assets (save and except for any Permitted Encumbrance) or any interest therein ranking in priority to,
pari passu with or subsequent to the security constituted or intended to be constituted by this Debenture; or 
  
 10.2  Disposals:    sell, transfer, assign, lease out, lend or otherwise dispose of (whether outright, by a sale and repurchase or sale and leaseback arrangement or otherwise), or grant any rights
(whether of pre-emption or otherwise) over its Charged Assets or any interest therein nor enter into any agreement to do any of the same other than where such agreement is conditional upon the consent of the Security Trustee being obtained (save in
the ordinary course of its operations in the case of assets of such Obligor charged by this Debenture by way of floating charge only). 
  
 11  
FURTHER ASSURANCE AND PERFECTION OF SECURITY 
  
 11.1  Further Assurance

  
 11.1.1  Each Obligor shall execute in favour of the Security Trustee (as trustee for
and on behalf of each of the Beneficiaries), or as the Security Trustee may otherwise direct, such further assignments, transfers, mortgages, charges or other encumbrances as in each such case the Security Trustee shall stipulate over its Charged
Assets for the purpose of more effectively providing security for the payment, performance and discharge of the Secured Obligations or of enabling the Security Trustee to vest any of its Charged Assets in the Security Trustee or its nominee(s).

  
 11.1.2  Each Obligor shall, whenever requested by the Security Trustee and at such
Obligor’s cost, affix to such of its Charged Assets or endorse or cause to be endorsed on such documents as the Security Trustee shall in each case stipulate, 
 

 16 

 labels, signs or memoranda in such form as the Security Trustee shall require (but not so as to impede or restrict the
normal use or operation thereof) referring or drawing attention to the security constituted or intended to be constituted by this Debenture. 
  
 11.2  Conversion of Floating Charge 
  
 11.2.1  Without prejudice to the security constituted or intended to be constituted by this Debenture, the Security Trustee may at any time by notice in writing to any Obligor convert the floating charge created by such
Obligor pursuant to Clause 2.2 with immediate effect into a specific charge as regards any of the Charged Assets of such Obligor specified in the notice:- 
  
 (a)  at any time after the Security Trustee becomes entitled to appoint a Receiver notwithstanding it may elect not to do so; or 

 
 (b)  if the Security Trustee considers such Charged Assets to be in danger of seizure, distress,
attachment, execution, diligence or other legal process or to be otherwise in jeopardy. 
  
 11.2.2  The floating charge created by each Obligor pursuant to Clause 2.2 shall (in addition to the circumstances in which the same will occur under general law) automatically be converted into a fixed charge:-

  
 (a)  upon the presentation of a petition for an administration order or a winding up
order to be made in relation to any Obligor; 
  
 (b)  if any Obligor fails to comply with
its obligations under Clause 10; 
  
 (c)  upon any person taking any step with a view to
levying distress against any of the Charged Assets of any Obligor or any judgment creditor taking any step with a view to enforcing against any of the Charged Assets of any Obligor a judgment obtained against such Obligor whether by a warrant of
execution, writ of fieri facias, garnishee order, charging order or otherwise; or 
  
 (d)  if any other floating charge created by any Obligor crystallises for any reason. 
  
 11.2.3  Service by the Security Trustee of a notice pursuant to Clause 11.2.1 in relation to any class of the Charged Assets of any Obligor shall not be construed as a waiver or abandonment of the Security Trustee’s
right to serve similar notices in respect of any other class of the Charged Assets of that or any other Obligor or its or any Beneficiary’s other rights under this Debenture. 
  
 11.3  Security in Jeopardy 
  
 If at any time it shall appear to the Security Trustee that any of the Charged Assets of any Obligor shall be in danger of seizure, distress, attachment, execution, diligence or other legal process, or that the security constituted
or intended to be constituted by this Debenture over such Charged Assets shall for any other reason be in jeopardy, the Security Trustee shall be entitled without notice to such Obligor 
 

 17 

 to take possession of and hold the same or to appoint a Receiver of such Charged Assets. The provisions of Clause 12 shall govern the
appointment, removal and powers of a Receiver appointed under this Clause 11.3 as if he were a Receiver appointed under Clause 12. 
  
 12  
RECEIVER 
  
 12.1  Appointment of Receiver 
  
 If:- 
  
 12.1.1  any Obligor requests that a Receiver be appointed; or 
  
 12.1.2  the Security Trustee becomes aware of the intention of any party to petition for an administration order or a winding up order to be made in relation to any Obligor or any such petition is presented; or

  
 12.1.3  any Obligor fails duly and punctually to perform or discharge any of the
Secured Obligations or any Event of Default occurs under the Facility Agreement, 
  
 then at any time or times thereafter the Security
Trustee may by writing under its common or corporate seal (as the case may be) or under the hand of any director, manager or other authorised signatory for the time being of the Security Trustee or by deed appoint any person or persons to be a
Receiver of any of the Charged Assets of any of the Obligors and of the rights of the Security Trustee contained in this Debenture in relation thereto. 
  
 12.2  Joint Receivers 
  
 Where two or more persons
are appointed to be a Receiver, the Security Trustee may in the appointment declare whether any act required or authorised to be done by a Receiver is to be done by any one or more of them for the time being holding office and, subject thereto, any
such persons may act jointly and/or severally. 
  
 12.3  General Powers of Receiver 

 
 Any Receiver of any of the Charged Assets of any Obligor shall (subject to any limitations or restrictions which the Security
Trustee may in its absolute and unfettered discretion incorporate in the deed or other instrument appointing him but notwithstanding the liquidation, winding-up, or dissolution at any time of such Obligor and whether or not any such Receiver shall
be an administrative receiver) have:- 
  
 12.3.1  all the powers conferred from time to
time on receivers (whether administrative receivers or otherwise) by law and/or statute (including the Companies Ordinance and/or the Bankruptcies Ordinance); 
  
 12.3.2  power on behalf and at the cost of such Obligor and whether in the name of such Obligor or otherwise to exercise all the powers and rights
of an absolute owner and do or omit to do anything which such Obligor could do or omit to do or could have done or omitted to do but for any 
 

 18 

 incapacity or the appointment of a liquidator, administrator or like officer in relation to such Obligor or its Charged
Assets; and 
  
 12.3.3  power to use the name of such Obligor in connection with the
exercise of any of such powers and, without prejudice to the generality of the provisions of Clauses 12.3.1 and 12.3.2, on behalf and at the cost of, and in the name of such Obligor or otherwise, the powers referred to in Clause 12.4. 

 
 12.4  Specific Powers of Receiver 
  
 Subject as stated above, any Receiver shall, in relation to any Obligor and the Charged Assets of such Obligor in respect of which it is appointed, have the power to:-

  
 12.4.1  enter the Property of such Obligor for any purpose connected with the conduct
of his receivership and take possession of, collect and get in such Charged Assets, exercise in respect of the Investments of such Obligor all voting or other powers or rights available to a registered holder thereof in such manner as he may think
fit, give instructions and generally exercise any of the rights of such Obligor under any contract with any third party in relation to such Charged Assets, including any building contract and/or contract with any professionals engaged in connection
with any works carried out at the Property of such Obligor and make any arrangement or compromise or enter into, renew and/or cancel any contracts and bring, defend or discontinue any action or proceedings (including proceedings for the compulsory
winding-up of such Obligor) or submit to arbitration in the name of such Obligor or otherwise, in each case as may seem expedient to him; 
  
 12.4.2  carry on, manage, develop, reconstruct, amalgamate or diversify (or concur in managing, developing, reconstructing, amalgamating or diversifying) the business of such Obligor or any
part thereof or concur in so doing; 
  
 12.4.3  purchase, acquire, accept a lease or
licence of and/or any other interest in and/or develop or improve properties or other assets without being responsible for loss or damage; 
  
 12.4.4  raise or borrow any money (including, without limitation, money for the completion, with or without modification, of any building on the Property of such Obligor in the course of
construction and any development or project in which such Obligor was engaged) from, or incur any other liability to, the Security Trustee and/or any of the Beneficiaries and/or others on such terms as he may think fit and secure the payment of any
such money and liabilities, whether or not in priority to the Secured Obligations, in such manner as he shall think fit and with or without any encumbrance on or affecting any of such Charged Assets and enter into any form of hedging arrangement,
whether in relation to any such borrowing or any Secured Obligation or otherwise, on such terms as he shall think fit; 
 

 19 

  
 12.4.5  sell by public auction or private contract,
convey, transfer, assign, let, surrender or accept surrenders, grant licences or otherwise dispose of or deal with such Charged Assets or concur in so doing in such manner, for such consideration and generally on such terms and conditions as he may
think fit; 
  
 12.4.6  sever plant, machinery and other fixtures and sell them separately
from that part of any Property of such Obligor containing them and pending any such sale use the same without cost to the Receiver and without any liability to such Obligor in connection with the use thereof; 
  
 12.4.7  promote the formation of companies with a view to the same purchasing, leasing, licensing or otherwise
acquiring interests in such Charged Assets, or otherwise arrange for such companies to trade or cease to trade and to purchase, lease, license or otherwise acquire any of such Charged Assets on such terms and conditions whether or not including
payment by instalments secured or unsecured as he may think fit; 
  
 12.4.8  make and
effect such repairs, renewals and improvements to such Charged Assets as he may think fit and maintain, renew, take out or increase insurances; 
  
 12.4.9  appoint managers, agents, officers and employees for any of the purposes set out in Clauses 12.3 and 12.4 or to guard or protect such Charged Assets at such salaries and commissions
and for such periods and on such terms as he may determine and may dismiss the same; 
  
 12.4.10  make calls, conditionally or unconditionally, on the members of such Obligor in respect of uncalled capital; 
  
 12.4.11  exercise for and on behalf of such Obligor all the powers and provisions conferred on a landlord or a tenant by any applicable legislation from time to time in force relating to
rents or agriculture in respect of any part of the Property of such Obligor but without any obligation to exercise any of such powers and without any liability in respect of powers so exercised or omitted to be exercised; and 

 
 12.4.12  sign any document, execute any deed and do all such other acts and things, whether in the
name of such Obligor or otherwise, in relation to, or as may be considered by him to be incidental or conducive to, any of the matters or powers aforesaid or to the protection and/or realisation of the security constituted or intended to be
constituted by this Debenture. 
  
 12.5  Receiver as Agent 
  
 Any Receiver of any of the Charged Assets of any Obligor shall, so far as the law allows, be deemed to be the agent of such Obligor for
all purposes and such Obligor shall be solely responsible for his acts, defaults, contracts, engagements, omissions, losses, liabilities, misconduct and remuneration and neither the Security Trustee nor any of the Beneficiaries shall be under any
liability whatsoever in such regard. 
 

 20 

  
 12.6  Remuneration 
  
 The remuneration of the Receiver shall be such sum or rate payable in such manner as may be agreed between him and the Security Trustee at
or at any time after his appointment. 
  
 12.7  Removal 
  
 The Security Trustee may from time to time under its common or corporate seal (as the case may be) or under the hand of any director,
manager or other authorised signatory for the time being of the Security Trustee or by deed remove any Receiver appointed by it and, in the case of an administrative receiver, may at any time and from time to time apply to the court for removal of
any administrative receiver appointed by it and may, whenever it may deem it expedient, appoint or as the case may be apply to the court for the appointment of another qualified person as a new Receiver in place of any Receiver whose appointment may
for any reason have terminated. 
  
 12.8  Application of Proceeds 
  
 Any Receiver shall (so far as the law allows) apply all monies received by him in the following order:- 
  
 12.8.1  in the payment of any costs, charges and expenses of or incidental to the Receiver’s appointment,
the payment of his remuneration and the payment and discharge of any other Expenses incurred by or on behalf of the Receiver; 
  
 12.8.2  in or towards payment of any debts or claims which are by statute payable in preference to the Secured Obligations but only to the extent to which such debts or claims have such
preference; and 
  
 12.8.3  in or towards payment and discharge of the balance of the
Secured Obligations in accordance with Clause [            ] of the Facility Agreement. 
  
 13  
VARIATION AND EXTENSION OF STATUTORY POWERS 
  
 13.1  Statutory Powers
Generally 
  
 The powers conferred on mortgagees or receivers (including administrative receivers) by the
Companies Ordinance shall apply to this Debenture except insofar as they are expressly or impliedly excluded and where there is any ambiguity or conflict between the powers contained in the Companies Ordinance and those contained in this Debenture
the terms of this Debenture shall (so far as the law allows) prevail. 
  
 13.2  Mortgagee in
Possession 
  
 It is agreed and declared that no exercise (whether by the Security Trustee or any Receiver) of
any of the powers contained in this Debenture shall render the Security Trustee or any Receiver liable as mortgagee in possession in respect of any of the Charged Assets of any Obligor or liable for any loss or damage (including, without

 

 21 

  
 limitation, loss upon realisation of any of the Charged Assets) save where caused by gross negligence or
wilful default on the part of the Security Trustee or any Receiver. 
  
 13.3  Protection for Third
Parties 
  
 No third party dealing with the Security Trustee or any Receiver or its or his agents shall, whether
before, on or after any contract, disposition or assurance in relation to any Charged Assets in such third party’s favour be concerned to enquire whether the Secured Obligations have become payable or whether any power which the Security
Trustee or any Receiver purports to exercise has become exercisable or whether any of the Secured Obligations remain undischarged or to see to the application of any money paid to the Security Trustee or any Receiver, nor shall any such third party
lending any money to a Receiver be concerned to enquire as to the propriety or purpose of the exercise of such power or as to the application of any money so borrowed. 
  
 13.4  Delegation 
  
 The Security Trustee or any Receiver may at any time delegate by power of attorney or in any other manner to any person or persons any of the powers (including the power of attorney contained in Clause 15.1), authorities and
discretions which are for the time being exercisable by the Security Trustee or any Receiver under this Debenture in relation to the Charged Assets of any Obligor. Any such delegation may be made upon such terms (including power to sub-delegate) and
subject to such regulations as the Security Trustee or any Receiver may think fit. Neither the Security Trustee nor any Receiver shall, save for their wilful default or gross negligence, be in any way liable or responsible to any Obligor for any
loss or damage arising from any act, default, omission or misconduct on the part of any such delegate or sub-delegate. 
  
 13.5  Suspense Accounts 
  
 The Security Trustee and any Receiver may place and keep
(for such time as it or he shall consider prudent) any money received, recovered or realised from any Obligor or in relation to any Charged Assets of such Obligor pursuant to this Debenture in a separate suspense account (to the credit of either
such Obligor or the Security Trustee (as trustee for and on behalf of each of the Beneficiaries) as the Security Trustee shall think fit) without any obligation to apply the same or any part thereof in or towards the discharge of the Secured
Obligations. 
  
 13.6  Security Trustee’s Power to Remedy Breaches 
  
 If at any time any Obligor fails to perform any of the covenants contained in this Debenture it shall be lawful for the Security Trustee,
but the Security Trustee shall have no obligation, to take such action on behalf of such Obligor (including, without limitation, the payment of money) as may in the Security Trustee’s reasonable opinion be required to ensure that such covenants
are performed. Any losses, costs, charges and expenses incurred by the Security Trustee in taking such action shall be reimbursed by such Obligor on demand. 
 

 22 

  
 14  
CONTINUING SECURITY
 
  
 14.1  Subsequent Charges 
  
 14.1.1  If the Security Trustee receives notice (whether actual or constructive) of any subsequent encumbrance
or other interest affecting any of the Charged Assets of any Obligor, or of any other matter which may cause the security constituted or intended to be constituted by this Debenture to cease to be a continuing security the Security Trustee may open
a new account or accounts for such Obligor. 
  
 14.1.2  If the Security Trustee does not
open a new account for an Obligor pursuant to Clause 14.1.1 then, unless the Security Trustee shall notify such Obligor to the contrary, it shall nevertheless be treated as if it had done so at the time when it received such notice and as from that
time all payments made by or on behalf of such Obligor to the Security Trustee shall be credited or deemed to have been credited to the new account and shall not operate to reduce the amount due from such Obligor at the time when it received such
notice. 
  
 14.2  General 
  
 The security constituted by this Debenture shall be a continuing security notwithstanding any settlement of account or other matter whatsoever and is in addition to and
shall not merge with or otherwise prejudice or affect (or be prejudiced or affected by) the security constituted by any encumbrance, guarantee or other assurance now or hereafter held by any of the Beneficiaries or any right or remedy of any of the
Beneficiaries in respect of the same and shall not be in any way prejudiced or affected by the invalidity thereof, or by any of the Beneficiaries now or hereafter dealing with, exchanging, releasing, modifying or abstaining from perfecting or
enforcing any of the same, or any rights which it may now or hereafter have, or giving time for payment or indulgence or compounding with any other person liable. 
  
 15  
POWER OF ATTORNEY
 
  
 15.1  Appointment 
  

Each Obligor, by way of security and in order more fully to secure the performance of such Obligor’s obligations under this Debenture, irrevocably appoints the
Security Trustee and the persons deriving title under it and separately any Receiver jointly and severally to be its attorney or attorneys for and in the name and on behalf and as the act and deed or otherwise of such Obligor to execute under its
common or corporate seal (as the case may be) or as a deed or under hand (as applicable) and deliver and do all such assurances, acts and things which such Obligor is required to execute and do under the covenants contained in this Debenture
(including, without limitation, to make any demand upon or to give any notice, receipt or discharge to any person owing monies to such Obligor for any monies comprised in its Charged Assets and to execute under its common or corporate seal (as the
case may be) or as a deed or under hand (as applicable) and deliver any charges, mortgages, assignments or other encumbrances and to execute, seal, deliver or otherwise perfect or complete any transfers or other documents which the Security Trustee
or any such Receiver may require to perfect its title to any of the Investments of such Obligor or to vest any of such Investments or any 
 

 23 

  
 entitlement thereto in the Security Trustee or any of its nominee(s) or any such Receiver) and generally
in its name and on its behalf to exercise 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, and (without prejudice to the generality of the
foregoing) to execute under its common or corporate seal (as the case may be) or as a deed or under hand (as applicable) and deliver and otherwise perfect any deed, assurance, agreement, instrument or act which it or he may reasonably deem proper in
or for the purpose of exercising any of such powers, authorities and discretions and, in relation to the proceeds of any claim under any Policy in which such Obligor is interested, to sign and give a good receipt therefor for and on behalf of such
Obligor. 
  
 15.2  Ratification 
  
 Each Obligor covenants with the Security Trustee (as trustee for and on behalf of each of the Beneficiaries) and separately with any Receiver that, on request, it will
ratify and confirm all security agreements, documents, acts and all transactions entered into by the Security Trustee or any Receiver (or by such Obligor at the instance of the Security Trustee or any Receiver) in the exercise or purported exercise
of its or his powers and such Obligor irrevocably acknowledges and agrees that the power of attorney contained in Clause 15.1 is given to secure the proprietary interest of, and the performance of obligations owed to, the respective donees within
the meaning of the Powers of Attorney Act Ordinance. 
  
 16  
INDEMNITIES
 
  
 16.1  General 
  

Each Obligor agrees to indemnify each Beneficiary and any Receiver on demand against all losses, actions, claims, expenses, demands or liabilities whether in contract,
tort or otherwise now or hereafter incurred by any of them or by any manager, agent, officer or employee for whose liability, act or omission any of them may be answerable for anything done or omitted in the exercise or purported exercise of the
powers contained in this Debenture or occasioned by any breach by such Obligor of any of its covenants or other obligations under this Debenture or otherwise arising out of or in connection with the Charged Assets of such Obligor or the security
constituted or intended to be constituted by this Debenture. 
  
 17  
NO WAIVER
 
  
 No failure or delay by any Beneficiary in exercising any right or remedy shall operate
as a waiver thereof, nor shall any single or any partial exercise or waiver of any right or remedy preclude its further exercise or the exercise of any other right or remedy as though no waiver had been made and no relaxation or indulgence granted.

  
 18  
PAYMENTS AND DISCHARGE
 
  
 18.1  Payment without Deduction 
  
 All payments to be made to any person under this Debenture shall be made free and clear of and (save as required by law) without any
deduction for or on account of 
 

 24 

  
 any tax, withholding, charges, set-off or counterclaim. All payments shall be made into such account or
accounts as the Security Trustee may from time to time specify for that purpose. 
  
 18.2  Reinstatement 
  
 Any settlement or discharge under this Debenture between the
Security Trustee and any Obligor shall be conditional upon no security or payment to the Security Trustee or any Beneficiary by such Obligor or any other person being avoided or set aside or ordered to be refunded or reduced by or pursuant to any
applicable law or regulation and, if such condition is not satisfied, the Security Trustee shall be entitled to recover from such Obligor on demand the value of such security or the amount of any such payment as if such settlement or discharge had
not occurred. 
  
 18.3  Releases 
  
 Without prejudice to any of the terms of the Facility Agreement regarding the giving of consents, releases and/or discharges to any Obligor (whether to facilitate any
disposition in relation to any of the Charged Assets of any Obligor or otherwise) the Security Trustee shall, at the request and cost of the Obligors following the irrevocable payment and discharge of the Secured Obligations (with none of the
Beneficiaries being under any further obligation, actual or contingent, to any Obligor) and provided that the security constituted by this Debenture shall not have been enforced, and the Security Trustee is satisfied that such payment is not subject
to avoidance or liable to be set aside, refunded or reduced as referred to in Clause 18.2, duly execute and do all such deeds, acts and things as may be necessary to release from the security constituted by this Debenture the assets which are then
subject to it. Each Obligor agrees that if any of its Investments charged by this Debenture are released from such charge, the Security Trustee may release securities of the same class and denomination as the Investments concerned rather than the
identical Investments deposited or transferred under this Debenture. 
  
 19  
CURRENCY
 
  
 Any amount received or recovered by the Security Trustee in respect of any sum expressed
to be due to it (whether for itself or as trustee for any other person) from any Obligor under this Debenture in a currency other than the currency (the “contractual currency”) in which such sum is so expressed to be due (whether as
a result of, or of the enforcement of, any judgment or order of a court or tribunal of any jurisdiction, the winding-up of an Obligor or otherwise) shall only constitute a discharge to such Obligor to the extent of the amount of the contractual
currency that the Security Trustee is able, in accordance with its usual practice, to purchase with the amount of the currency so received or recovered on the date of receipt or recovery (or, if later, the first date on which such purchase is
practicable). If the amount of the contractual currency so purchased is less than the amount of the contractual currency so expressed to be due such Obligor shall indemnify the Security Trustee against any loss sustained by it as a result, including
the cost of making any such purchase. 
 

 25 

  
 20  
NOTICES
 
  
 20.1  General 
  

Any demand, notice or other communication to be made on or delivered to an Obligor hereunder or in respect of the Secured Obligations shall be made or delivered by
facsimile transmission (referred to as “fax”) or otherwise in writing and shall be treated as having been served if served in accordance with Clause 20.2. Each demand, notice or other communication to be made on or delivered to any
party to this Debenture may (unless that party has by 15 days’ written notice to the other party or parties specified another address or fax number) be made or delivered to that other person at its registered office or the following addresses
or fax numbers:- 
  
 Tarrant Company Limited 
  
 Address:   13th Floor, Lladro Centre, 72-80 Hoi Yuen Road, Kwun Tong, Kowloon, Hong Kong. 

 
 Fax:          852-2343 2801 
  
 Attention: Mr Paul Lau and/or Mr Henry Chu 
  
 Marble Limited 
  
 Address:   13th Floor, Lladro Centre, 72-80 Hoi Yuen Road, Kwun Tong, Kowloon, Hong Kong. 
  
 Fax:          852-2343 2801 
  
 Attention: Mr Paul Lau and/or Mr Henry Chu 
  
 Trade Link Holdings Limited 
  
 Address:   13th Floor, Lladro
Centre, 72-80 Hoi Yuen Road, Kwun Tong, Kowloon, Hong Kong. 
  
 Fax:          852-2343 2801 
  
 Attention: Mr Paul Lau and/or Mr Henry Chu 
  
 UPS Capital Global Trade Finance
Corporation 
  
 Address:   35 Glenlake Parkway, NE, Atlanta, GA 30328, U.S.A.

  
 Fax:          1 404-828-4408 

 
 Attention: Kurt A. Niemeyer (Relationship Manager) 
  
 20.2  Mode of Service 
  
 Service may be made on any Obligor:- 
 

 26 

  
 20.2.1  personally on any director or the company
secretary of such Obligor; 
  
 20.2.2  by leaving it at the address for service of such
Obligor referred to in Clause 20.1; 
  
 20.2.3  by sending it through the post to the
address for service of such Obligor referred to in Clause 20.1; or 
  
 20.2.4  by fax to
the fax number of such Obligor and so that any fax shall be deemed to be in writing and, if it bears the signature of the server or its authorised representative or agent, to have been signed by or on behalf of the server. 
  
 20.3  Deemed Service 
  
 Any demand, notice or other communication shall be served or treated as served at the following times:- 
  
 20.3.1  in the case of service personally or in accordance with Clause 20.2.2, at the time of such service; 
  
 20.3.2  in the case of service by post, at 9.00 a.m. on the working day next following the day on which it was
posted or, in the case of service to or from an address outside Hong Kong, at 9.00 a.m. on the fourth working day following the day on which it was posted; and 
  
 20.3.3  in the case of service by telex or fax, if sent before 9.00 a.m. on a working day, at 11.00 a.m. on the same day, if sent between 9.00
a.m. and 5.30 p.m. on a working day, two hours after the time of such service or, if sent after 5.30 p.m. on a working day, or if sent on a day other than a working day, at 9.00 a.m. on the next following working day. 
  
 For the purpose of this Clause 20 the term “working day” shall mean a day (other than a Saturday or a Sunday) upon which the recipient of any
demand, notice or other communication is normally open for business in the country of its address for service referred to in Clause 20.1 and references to any time of day shall be construed as references to the time of day in such country.

  
 20.4  Proof of Service 
  
 In proving service of a demand, notice or other communication served:- 
  
 20.4.1  by post, it shall be sufficient to prove that such demand, notice or other communication was correctly addressed, full postage paid and
posted; and 
  
 20.4.2  by fax, it shall be sufficient to prove that the fax was followed
by such machine record as indicates that the entire fax was sent to the relevant number. 
 

 27 

  
 21  
TRUSTEE PROVISIONS
 
  
 21.1  Declaration of Trust 
  
 The Security Trustee shall hold the security constituted by this Debenture and the benefit of all related rights in trust for the benefit
of the Beneficiaries on the terms and subject to the conditions set out in this Debenture and the Facility Agreement. 
  
 22  
LAW AND JURISDICTION
 
  
 22.1  Law 
  
 This Debenture and the rights and obligations of the parties hereto shall be governed by and construed in accordance with the laws of Hong Kong. 
  
 22.2  Jurisdiction 
  
 22.2.1  Submission:    Each of the parties to this Debenture (other than the Security Trustee) agrees for the benefit of the Security Trustee that the courts of
Hong Kong shall have jurisdiction to hear and determine any suit, action or proceeding, and to settle any dispute, which may arise out of or in connection with this Debenture and, for such purposes, irrevocably submits to the jurisdiction of such
courts. 
  
 22.2.2  Forum:    Each Obligor irrevocably waives any objection
which it might now or hereafter have to the courts referred to in Clause 22.2.1 being nominated as the forum to hear and determine any suit, action or proceeding, and to settle any dispute, which may arise out of or in connection with this Debenture
and agrees not to claim that any such court is not a convenient or appropriate forum. 
  
 22.2.3  Other
competent jurisdictions:    The submission to the jurisdiction of the courts referred to in Clause 22.2.1 shall not (and shall not be construed so as to) limit the right of the Security Trustee to take proceedings against any
Obligor in any other court of competent jurisdiction nor shall the taking of proceedings in any one or more jurisdictions preclude the taking of proceedings in any other jurisdiction, whether concurrently or not. 
  
 IN WITNESS whereof each Obligor has duly executed this Debenture as a deed and intends to deliver and hereby delivers the same on
the date first above written and, prior to such delivery, this Debenture has been duly signed on behalf of the Security Trustee, in the manner appearing below. 
 

 28 

  
 SCHEDULE 1 
  
 
THE OBLIGORS 
  
 
	  	 	 Company Name
 
	 	 Company Number
 

	 
	 1.
 	 	 Tarrant Company Limited
 	 	 163310
 
	 
	 2.
 	 	 Marble Limited
 	 	 399753
 
	 
	 3.
 	 	 Trade Link Holdings Limited
 	 	 592076
 

 
 

 29 

  
 SCHEDULE 2 
  
 
THE SECURITIES 
  
 
	 Obligor
 
	 	 Name of company in which the Securities are held
 
	 	 Issued share capital
 
	 	 Description and
 number of
shares
 
	  	 Share certificate numbers
 

	 Tarrant Company Limited
 	 	 1.      Marble Limited
 	 	 HK$2.00 divided into 2 ordinary shares of HK$1.00 each
 	 	 1 share held by Tarrant Company Limited
 	  	 - 6 -
 
	  	 	  	 	  	 	 1 share held by Tam Yuet Ngan Grace on trust for Tarrant Company Limited
 	  	 - 7 -
 
	 
	  	 	 2.      Trade Link
          Holdings Limited
 	 	 HK$2.00 divided into 2 ordinary shares of HK$1.00 each
 	 	 1 share held by Tarrant Company Limited
 	  	 - 1 -
 
	  	 	  	 	  	 	 1 share held by Tam Yuet Ngan Grace on trust for Tarrant Company Limited
 	  	 - 3 -
 

 
 

 30 

  
 SCHEDULE 3 
  
 
QUOTA 
  
 
	  	  	 Obligor
 
	 	 Quota
 

	 1.
  
 	  	 Tarrant Company Limited
  
 	 	 Government allocation for the USA for the Year 2002
 

	 
	  	  	  	 	 Cat No.
 	 	 Unit
 	    	 Total
 
	  	  	  	 	 

	  	  	  	 	 218R/225/317/326
 237
 GP II BCQ
 335
 336
 341
 342
 347
 348
 635
 636
 641
 642
 647
 648
 	 	 SQM
 DOZ
 ESM
 DOZ
 DOZ
 DOZ
 DOZ
 DOZ
 DOZ
 DOZ
 DOZ
 DOZ
 DOZ
 DOZ
 DOZ
 	    	 145
 9,991
 417,383
 6,133
 3,110
 17,408
 23,101
 5,121
 48,179
 929

31
 338
 421
 78
 3,736
 
	 
	 2.
 	  	 Marble Limited
 	 	 Government allocation for the USA for the Year 2002
 

	 
	  	  	  	 	 Cat No.
 	 	 Unit
 	    	 Total
 
	  	  	  	 	 

	  	  	  	 	 GP II BCQ
 335
 336
 341
 342
 347
 348
 	 	 ESM
 DOZ
 DOZ
 DOZ
 DOZ
 DOZ
 DOZ
 	    	 2,142
 109
 17
 408
 455
 653
 1,790
 
	 
	  	  	  	 	 Government allocation for Canada for the Year 2002
 

	 
	  	  	  	 	 Cat No.
 	 	 Unit
 	    	 Total
 
	  	  	  	 	 

	  	  	  	 	 1B
 4B
 5A
 5B
 	 	 PCS
 PCS
 PCS
 PCS
 	    	 1,860
 7,611
 6,047
 4,399
 
	 
	  	  	  	 	 Government allocation for the EU for the Year 2002
 

	 
	  	  	  	 	 Cat No.
 	 	 Unit
 	    	 Total
 
	  	  	  	 	 

	  	  	  	 	 6A
 	 	 PCS
 	    	 35,728
 

 
 

 31 

  
 
	 3.
  
 	  	 Trade Link Holdings Limited
  
 	  	 Government allocation for the USA for the Year 2002
 

	 
	  	  	  	  	 Cat No.
 	 	 Unit
 	    	 Total
 
	  	  	  	  	 

	  	  	  	  	 335
 341
 347
 348
 359(1)
 359(2)
 641
 648
 	 	 DOZ
 DOZ
 DOZ
 DOZ
 KG
 KG
 DOZ
 DOZ
 	    	 1,120
 10,000
 624
 19,717
 6,649
 18,621
 599
 162
 

 
 

 32 

  
 
	 THE OBLIGORS
 	  	  	  	  
	 
	 THE COMMON SEAL of
 	  	 )
 	  	  
	 TARRANT COMPANY LIMITED
 	  	 )
 	  	  
	 was hereunto affixed in the presence of:
 	  	 )
 	  	  
	  	  	 )
 	  	  
	 
	 /s/ illegible
 	  	  	  	  
	 Director
 	  	  	  	  
	 
	 /s/ Paul Lau
 	  	  	  	  
	 Direct or/Secretary
 	  	  	  	  
	 
	 THE COMMON SEAL of
 	  	 )
 	  	  
	 MARBLE LIMITED
 	  	 )
 	  	  
	 was hereunto affixed in the presence of:
 	  	 )
 	  	  
	  	  	 )
 	  	  
	 
	 /s/ illegible
 	  	  	  	  
	 Director
 	  	  	  	  
	 
	 /s/ Paul Lau
 	  	  	  	  
	 Director/Secretary
 	  	  	  	  
	 
	 THE COMMON SEAL of
 	  	 )
 	  	  
	 TRADE LINK HOLDINGS LIMITED
 	  	 )
 	  	  
	 was hereunto affixed in the presence of:
 	  	 )
 	  	  
	  	  	 )
 	  	  
	 
	 /s/ illegible
 	  	  	  	  
	 Director
 	  	  	  	  
	 
	 /s/ Paul Lau
 	  	  	  	  
	 Director/Secretary
 	  	  	  	  
	 
	 THE SECURITY TRUSTEE
 	  	  	  	  
	 
	 SIGNED by
 	  	 )
 	  	  
	 For and on behalf of
 	  	 )
 	  	             /s/ Joseph Guerris
 
	 UPS CAPITAL GLOBAL TRADE
 	  	 )
 	  	  
	 FINANCE CORPORATION
 	  	 )
 	  	  
	 in the presence of:-
 	  	  	  	  
	 
	 s/s Sanjeev Chopra
 	  	  	  	  
	 Signature of witness
 	  	  	  	  
	 
	 Sanjeev Chopra
 	  	  	  	  
	 Full name and address of witness
 	  	  	  	  
	 
	 35 Glenlake Pkwy.
 	  	  	  	  
	 Atlanta, GA 30328
 	  	  	  	  

 
 

 33

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]