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DEED OF ASSIGNMENT, AMENDMENT NOVATION

Novation Agreement

DEED OF ASSIGNMENT, AMENDMENT  NOVATION | Document Parties: AMERICAN BANKNOTE CORP | ABN Australasia Limited |  ABN Australasia Holdings Pty Ltd You are currently viewing:
This Novation Agreement involves

AMERICAN BANKNOTE CORP | ABN Australasia Limited | ABN Australasia Holdings Pty Ltd

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Title: DEED OF ASSIGNMENT, AMENDMENT NOVATION
Date: 4/20/2004
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                                                                EXHIBIT 2.2

 

MALLESONS STEPHEN JAQUES

 

                  Deed of Assignment,

                  Amendment and

                  Novation

 

                  Dated 6 April 2004

 

                   ABN Australasia Limited (ABN 42 072 664 632) ("Outgoing

                  Borrower")

 

                  ABN Australasia Holdings Pty Ltd (ABN 11 072 977 229)

                  ("Incoming Borrower")

 

                  Each company named in schedule 1 (each a "Guarantor")

 

                  Each bank or financial institution named in schedule 2 (each a

                  "Participant")

 

                  J.P. Morgan Australia Limited (ABN 52 002 888 011) ("Agent"

                  and "Security Trustee")

 

                  MALLESONS STEPHEN JAQUES

                  Level 60

                  Governor Phillip Tower

                  1 Farrer Place

                  Sydney NSW 2000

                  Australia

                  T +61 2 9296 2000

                   F +61 2 9296 3999

                  DX 113 Sydney

                  www.mallesons.com

 

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DEED OF ASSIGNMENT, AMENDMENT AND NOVATION

 

Contents

 

<TABLE>

<S>                                                 <C>

DETAILS                                              1

 

GENERAL TERMS                                       3

 

1       CONSIDERATION                                3

 

2       CONDITIONS PRECEDENT AND SUBSEQUENT          3

 

2.1     Conditions precedent                         3

2.2     Certification                                4

2.3     Condition subsequent                         4

 

3       ASSIGNMENT OF ASSIGNED PROPERTY              5

 

4       NOVATION AND ACKNOWLEDGMENTS                 5

 

4.1     Novation                                     5

4.2     Obligations of Incoming Borrower             6

4.3     Guarantor acknowledgment                     6

4.4     Ratification                                 6

4.5     Letters of Credit                            6

 

5       RELEASES                                     6

 

5.1     Release                                      6

5.2     Release by the Outgoing Borrower             7

5.3     Release unconditional                        7

 

6       SHAREHOLDERS AGREEMENT                       7

 

6.1     Incoming Borrower                             7

6.2     Issue of SPV Subscription Shares             7

 

7       INDEMNITIES                                  8

 

7.1     Indemnity from the Incoming Borrower         8

7.2     Indemnity from the Outgoing Borrower         8

7.3     Legal costs                                   8

 

8       REPRESENTATIONS AND WARRANTIES               8

 

8.1     General representations and warranties       8

8.2     Further representations and warranties       9

</TABLE>

 

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<TABLE>

<S>                                                <C>

9       ACKNOWLEDGEMENTS                             9

 

10      COSTS AND EXPENSES                           9

 

11      COUNTERPARTS                                  9

 

12      GOVERNING LAW                                9

 

13      NOTICES                                     10

 

13.1    Form                                        10

13.2    Delivery                                    10

13.3    When effective                               10

13.4    Receipt-post                                10

13.5    Receipt-fax                                 10

 

14      INTERPRETATION                              10

 

14.1    Definitions                                 10

14.2    Incorporation of terms                      11

 

SCHEDULE 1 - GUARANTORS                            12

 

SCHEDULE 2 - PARTICIPANTS                          13

 

SIGNING PAGE                                       15

 

ANNEXURE                                           22

</TABLE>

 

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DEED OF ASSIGNMENT, AMENDMENT AND NOVATION

 

Details

 

INTERPRETATION - definitions are at the end of the General terms

 

PARTIES          OUTGOING BORROWER, INCOMING BORROWER, AGENT, SECURITY TRUSTEE,

                PARTICIPANTS, PACIFIC AND GUARANTORS

 

OUTGOING         Name         ABN AUSTRALASIA LIMITED

BORROWER

 

                ABN          42072 664 692

 

                 Address      560 Sylvan Avenue, Englewood Cliffs NJ

                            07632, United States of America

 

                Fax          +1 201 568 4577

 

                Attention    Mr Steven Singer

 

INCOMING         Name         ABN AUSTRALASIA HOLDINGS PTY LTD

BORROWER

 

                ABN          11072 977 229

 

                Address      1144 Nepean Highway, Highett Vic 3190

 

                Fax          (03)9555 8135

 

                Attention    Mr David Head

 

AGENT AND        Name         J.P. MORGAN AUSTRALIA LIMITED

SECURITY

TRUSTEE          ABN          52 002 888 011

 

                Address      Level 26, Grosvenor Place, 225 George Street,

                            Sydney NSW 2000

 

                Fax          (02) 9251 3371

 

                Attention    Manager, Agency

 

PACIFIC          Name         AMERICAN BANKNOTE PACIFIC PTY LIMITED

 

                ABN          19 072 977 265

 

                Address      560 Sylvan Avenue, Englewood Cliffs, NJ

                            07632, United States of America

 

                Fax          +1 201 568 4577

 

                Attention    Mr. Steven Singer

 

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GUARANTORS       Each company named in schedule 1 or which has executed a

and each a       Guarantor Accession Agreement.

GUARANTOR

 

PARTICIPANTS     Each bank or financial institution set out in schedule 2.

and each a

PARTICIPANT

 

RECITALS         A            The parties are party to the Senior Debt Facility

                             Agreement.

 

                B            The parties to this deed have agreed to the

                            assignment and novation of the Senior Debt Facility

                            Agreement on the terms of this deed.

 

EFFECTIVE DATE   The date on which the Agent certifies to all parties that the

                conditions precedent in clause 2.1 have been satisfied.

 

BUSINESS DAY     Melbourne and Sydney

PLACES

 

GOVERNING LAW    New South Wales

 

DATE OF DEED     See signing page

 

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DEED OF ASSIGNMENT, AMENDMENT AND NOVATION

 

General terms

 

1         CONSIDERATION

 

         This deed is entered into in consideration of the parties incurring

         obligations and giving rights under this deed and for valuable

         consideration received from others.

 

2         CONDITIONS PRECEDENT AND SUBSEQUENT

 

2.1       CONDITIONS PRECEDENT

 

         Clause 3 and clause 4 of this deed are of no force or effect until the

         Agent certifies in writing to all parties that it has received the

         following, in form and substance satisfactory to the Agent, or has

         waived the requirement to receive:

 

         (a)       a statutory declaration dated no earlier than seven days

                  before the date of this deed by a secretary or a director of

                  the Incoming Borrower and each Guarantor confirming that, in

                  each case, no alterations have been made to the constitution

                  (if any) and certificate of registration of that company

                  between the date on which they were last provided to the Agent

                  and the date of the declaration or, if such a statutory

                  declaration cannot be made, a certified copy of the

                  constitution (if any) and certificate of registration of the

                  relevant company; and

 

         (b)       a certified copy of:

 

                  (i)        the minutes of a meeting of the board of directors

                           or, a duly appointed committee of the board (provided

                           appropriate evidence of the appointment and authority

                           of that committee is also supplied), of the Incoming

                           Borrower and each Guarantor which evidences the

                           resolutions the signing and delivery of

                           and observance of obligations under this deed,

                            appointing and authorising attorneys to execute this

                           deed on its behalf and which acknowledges that this

                           deed will benefit the company; and

 

                  (ii)      the power of attorney under which a person signs and

                           delivers this deed for the Incoming Borrower and each

                           Guarantor and, if required by the Agent, evidence of

                           its stamping and registration; and

 

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         (c)       a certified specimen signature of each person who is

                  authorised to sign and deliver this deed for the Incoming

                  Borrower and each Guarantor;

 

         (d)       an executed copy of this deed;

 

         (e)       a legal opinion from Freehills, legal counsel to the Borrower

                  with respect to this deed in form and substance acceptable to

                  the Agent;

 

         (f)       a certificate signed by 2 directors of the Incoming Borrower

                  evidencing:

 

                  (i)       that there have been no material changes to the

                           Business since the date of the Ferrier Hodgson

                           Review, which have not been disclosed to the Agent in

                           writing prior to the date of this deed; and

 

                  (ii)      [the age and amount of debts owed to trade creditors

                           of the Group and confirmation, to the satisfaction of

                           the Agent, that all reasonable endeavours have been

                           made by the Group to return trade creditors to normal

                           business terms];

 

         (g)       a Shareholders Agreement signed by, amongst others, the

                  Incoming Borrower;

 

         (h)       each of the obligations in clauses 1, 2 and 3 of the

                  Shareholders Agreement (except any obligation of the SPV)

                  having been satisfied (or waived) to the satisfaction of the

                  Agent;

 

         (i)       a copy of the register of members of the Group evidencing the

                  issue and allotment of the SPV Subscription Shares; and

 

         (j)       a copy of the corporate structure of the Group.

 

2.2       CERTIFICATION

 

         With respect to the requirements contained in clause 2.1, anything

         required to be certified must be certified by the secretary or a

         director of the relevant company as being true and correct as at a date

         no earlier than 14 days before the date of this deed.

 

2.3       CONDITION SUBSEQUENT

 

          The Incoming Borrower will provide to the Agent:

 

         (a)       within 60 days (or such other period as agreed between the

                  Incoming Borrower and the Agent) of the Effective Date the

                  cash flow projections for the year ending 31 December 2004;

                  and

 

         (b)       on or before the earlier of 120 days after the appointment of

                  a chief financial officer and 180 days after the Effective

                  Date (or such other later date as agreed between the Incoming

                  Borrower and the Agent) the cash flow projections for the

                  years ending 31 December 2005 and 2006.

 

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3         ASSIGNMENT OF ASSIGNED PROPERTY

 

         (a)       In consideration of the issue of the SPV Subscription Shares,

                  the Participants assign (in accordance with clause 29.2 of the

                  Senior Debt Facility Agreement) to the Incoming Borrower the

                  Assigned Property on and from the Effective Date so that:

 

                  (i)       the Assigned Property becomes a debt owing by the

                           Outgoing Borrower to the Incoming Borrower on the

                           terms set out in the Senior Debt Facility Agreement

                           as if the Incoming Borrower was a Participant, the

                           Security Trustee and the Agent under the Senior Debt

                            Facility Agreement; and

 

                  (ii)      each reference to a Participant the Security Trustee

                           or the Agent in the context of the Assigned Property

                           is to be read as a reference to the Incoming

                           Borrower.

 

         (b)       The Outgoing Borrower consents to the assignment of the

                  Assigned Property under clause 3(a).

 

4         NOVATION AND ACKNOWLEDGMENTS

 

4.1       NOVATION

 

          The parties agree and acknowledge that on and from the Effective Date:

 

         (a)       the Residual Rights and Obligations are terminated and a new

                  agreement is created on the terms and conditions set out in

                  the annexure to this deed creating the Novated Rights and

                  Obligations;

 

         (b)       through the creation of the Novated Rights and Obligations the

                  Incoming Borrower replaces the Outgoing Borrower in every

                   capacity in respect of the Residual Rights and Obligations as

                  if the Incoming Borrower was an original party to the Senior

                  Debt Facility Agreement in respect of the Residual Rights and

                  Obligations instead of the Outgoing Borrower;

 

         (c)       the Incoming Borrower is bound by the New Senior Debt Facility

                  Agreement as the Outgoing Borrower was bound by the Senior

                  Debt Facility Agreement in respect of the Residual Rights and

                  Obligations and in particular but without limitation:

 

                  (i)       the Incoming Borrower enjoys under the New Senior

                           Debt Facility Agreement all the rights and benefits

                            conferred on the Outgoing Borrower under the Senior

                           Debt Facility Agreement in respect of the Residual

                           Rights and Obligations;

 

                  (ii)      the Incoming Borrower assumes under the New Senior

                           Debt Facility Agreement all of the debts, liabilities

                           and obligations of the Outgoing Borrower under the

                           Senior Debt Facility Agreement in respect of the

                            Residual Rights and Obligations; and

 

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                  (iii)     the Incoming Borrower is indebted to the Participants

                            for all amounts owing or payable by the Outgoing

                           Borrower under the Senior Debt Facility Agreement in

                           respect of the Residual Rights and Obligations as at

                           that date and all such amounts are deemed outstanding

                           under the New Senior Debt Facility Agreement; and

 

         (d)       any reference in any Transaction Document (other than this

                  deed) to the "Senior Debt Facility Agreement'" is a reference

                  to the New Senior Debt Facility Agreement.

 

4.2       OBLIGATIONS OF INCOMING BORROWER

 

         The Incoming Borrower has no obligations or liability under the Senior

         Debt Facility Agreement arising before the Effective Date except as

         Guarantor.

 

4.3       GUARANTOR ACKNOWLEDGMENT

 

         The Guarantors acknowledge and agree that:

 

         (a)       as at the Effective Date, they are jointly and severally

                  liable for the Secured Moneys as defined in the Senior Debt

                  Facility Agreement; and

 

         (b)       on and from the Effective Date, they are jointly and severally

                  unconditionally and irrevocably liable for the due and

                  punctual payment of the Secured Money as set out in clause 18

                  of the New Senior Debt Facility Agreement ("GUARANTEE").

 

4.4       RATIFICATION

 

         The Incoming Borrower and each Guarantor ratify and confirm the

         execution and performance of the Transaction Documents by each other of

         them.

 

4.5       LETTERS OF CREDIT

 

         On the Effective Date:

 

         (a)       the Outgoing Borrower will arrange for the return of all

                  Letters of Credit ("EXISTING LC") issued and outstanding under

                  the Senior Debt Facility Agreement to the Agent for

                  cancellation;

 

         (b)       the Agent will issue to the beneficiary of each Existing LC a

                  new Letter of Credit under the New Senior Debt Facility

                  Agreement.

 

5         RELEASES

 

5.1       RELEASE

 

         The Agent, Security Trustee, Participants and Guarantors release the

         Outgoing Borrower from:

 

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         (a)       any obligation and "liability under or in respect of the

                  Senior Debt Facility Agreement; and

 

         (b)       any Claim which it may have or but for this release might have

                  had against the Outgoing Borrower connected with the Senior

                  Debt Facility Agreement,

 

         arising in respect of events occurring after the assignment in clause 3

         and the novation in clause 4 on or after the Effective Date.

 

5.2       RELEASE BY THE OUTGOING BORROWER

 

         The Outgoing Borrower releases the Agent, Security Trustee,

         Participants and Guarantors from:

 

         (a)       any obligations and liability under or in respect of the

                  Senior Debt Facility Agreement; and

 

         (b)       any Claim which it may have or but for this release might have

                  had against the Agent, Security Trustee, Participants and

                  Guarantors connected with the Senior Debt Facility Agreement,

 

         arising in respect of events occurring after the assignment in clause 3

         and the novation in clause 4 on or after the Effective Date.

 

5.3       RELEASE UNCONDITIONAL

 

         The parties (other than the Incoming Borrower) give the releases in

         clauses 5.1 and 5.2 regardless of:

 

         (a)       when the obligation, liability or Claim arises; and

 

         (b)       whether or not it is now or in the future aware of the facts

                   and circumstances relevant to any obligation, liability or

                  Claim.

 

6         SHAREHOLDERS AGREEMENT

 

6.1       INCOMING BORROWER

 

         In consideration for the Participants entering into this deed, the

         Incoming Borrower agrees to enter into the Shareholders Agreement.

 

6.2       ISSUE OF SPV SUBSCRIPTION SHARES

 

         Each of the Participants agrees that all of the SPV Subscription Shares

         that will be issued to the SPV under the Shareholders Agreement will be

          held by the SPV for each of the Participants rateably in accordance

         with their Pro Rata Share (rounded up to the nearest whole share) from

         time to time.

 

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7         INDEMNITIES

 

7.1       INDEMNITY FROM THE INCOMING BORROWER

 

         The Incoming Borrower indemnifies the Outgoing Borrower on demand

         against any Claim, damage, loss, cost, charge, expense, outgoing or

         payment which the Outgoing Borrower pays, suffers, incurs or is liable

         for in respect of any act or omission by the Incoming Borrower in

         respect of the Residual Rights and Obligations which occurs on or after

         the Effective Date.

 

7.2       INDEMNITY FROM THE OUTGOING BORROWER

 

         The Outgoing Borrower indemnifies the Incoming Borrower on demand

         against any Claim, damage, loss, cost, charge, expense, outgoing or

         payment which the Incoming Borrower pays, suffers, incurs or is liable

         for in respect of any act or omission by the Outgoing Borrower in

         respect of the Residual Rights and Obligations which occurs before the

         Effective Date.

 

7.3       LEGAL COSTS

 

         The indemnities in clauses 7.1 and 7.2 extend to all legal costs and

         expenses incurred by the party on the higher of a solicitor and own

         client basis and a full indemnity basis.

 

8         REPRESENTATIONS AND WARRANTIES

 

8.1       GENERAL REPRESENTATIONS AND WARRANTIES

 

         Each party represents and warrants to each other party that:

 

         (a)       (INCORPORATION AND EXISTENCE) other than each of the

                  Participants, it has been incorporated in accordance with the

                  laws of its jurisdiction of incorporation, is validly existing

                  under those laws and has power and authority to carry on its

                  business as it is now being conducted;

 

         (b)       (POWER) it has power to enter into and comply with its

                  obligations under this deed;

 

         (c)       (AUTHORISATIONS) it has in full force and effect the

                  authorisations necessary for it to enter into and comply with

                  its obligations and exercise its rights under this deed and,

                  for each Party (other than the Outgoing Borrower), the New

                  Senior Debt Facility Agreement and to allow them to be

                  enforced; and

 

         (d)       (VALIDITY OF OBLIGATIONS) its obligations under this deed and,

                  for each Party (other than the Outgoing Borrower), the New

                  Senior Debt Facility Agreement, are valid and binding and are

                  enforceable against it in accordance with their terms.

 

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8.2       FURTHER REPRESENTATIONS AND WARRANTIES

 

         The Incoming Borrower and each Guarantor make each of the

         representations and warranties as set out in clause 14 of the New

         Senior Debt Facility Agreement with respect to itself as at the date of

         this deed.

 

9         ACKNOWLEDGEMENTS

 

         The Outgoing Borrower, the Incoming Borrower and each Guarantor:

 

          (a)       acknowledges that this deed is a "Transaction Document" within

                  the definition of that term in the New Senior Debt Facility

                  Agreement;

 

         (b)       acknowledges that, except as expressly provided for in this

                  deed, nothing in this deed affects or limits their existing

                  obligations under any Transaction Document; and

 

         (c)       consents to the novation, assignment, amendments and

                  variations to the Senior Debt Facility Agreement which are

                  effected by this deed.

 

10        COSTS AND EXPENSES

 

         If the Effective Date occurs, the Incoming Borrower must pay the Agent:

 

         (a)       on demand, for the account of the Agent or for the account of

                  each Participant, the costs, charges and expenses (and any

                  Taxes and fees relating thereto) in respect of the

                  negotiation, preparation and execution of this deed and any

                   Taxes payable in respect of it and the transactions under it;

                  and

 

         (b)       any other fees as advised in writing by the Agent and agreed

                  to by the Incoming Borrower.

 

         If the Effective Date does not occur, the Outgoing Borrower must pay

         the Agent the amounts set out above.

 

11        COUNTERPARTS

 

         This deed may consist of a number of copies each signed by one or more

         parties to the deed. If so, the signed copies are treated as making up

         the one document.

 

12        GOVERNING LAW

 

         This deed is governed by the law in force in the place specified in the

         Details. Each party submits to the non-exclusive jurisdiction of the

         courts of that place.

 

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13        NOTICES

 

13.1      FORM

 

         Unless expressly stated otherwise in this deed, all notices,

         certificates, consents, approvals, waivers, offers, acceptances and

         other communications in connection with this deed (each a "NOTICE")

         must be in writing, signed by the sender (if an individual) or an

         Authorised Officer of the sender and marked as set out or referred to

         in the Details or, if the recipient has notified otherwise, then marked

         for attention in the way last notified.

 

13.2      DELIVERY

 

         Notices must be:

 

         (a)       left at the address set out or referred to in the Details; or

 

         (b)       sent by prepaid ordinary post (airmail if appropriate) to the

                  address set out or referred to in the Details; or

 

         (c)       sent by fax to the fax number set out or referred to in the

                  Details; or

 

         (d)       given in any other way permitted by law.

 

         However, if the intended recipient has notified a changed postal

         address or changed fax number, then the communication must be to that

         address or number.

 

13.3      WHEN EFFECTIVE

 

         Notices take effect from the time they are received unless a later time

         is specified.

 

13.4      RECEIPT - POST

 

         If sent by post, Notices are taken to be received three days after

         posting (or seven days after posting if sent to or from a place outside

         Australia).

 

13.5      RECEIPT-FAX

 

         If sent by fax, Notices are taken to be received at the time shown in

         the transmission report as the time that the whole fax was sent.

 

14        INTERPRETATION

 

14.1      DEFINITIONS

 

         These meanings apply unless the contrary intention appears:

 

         ABN means American Banknote Australasia Holdings, Inc., incorporated in

         Delaware of 410 Park Avenue, Suite 910, New York, New York.

 

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         ASSIGNED PROPERTY means all right, title and interest of the

         Participants to be paid or repaid $64,074,166.61 outstanding under the

          Cash Advance Facility as defined in the Senior Debt Facility Agreement.

 

         CLAIM means any allegation, debt, cause of action, liability, claim,

         proceeding, suit or demand of any nature howsoever arising and whether

         present or future, fixed or unascertained, actual or contingent and

         whether at law, in equity, under statute or otherwise and which any

         party may have against another in connection with the Senior Debt

         Facility Agreement, the New Senior Debt Facility Agreement or this

         deed.

 

         DETAILS means the section of this deed headed "Details".

 

         EFFECTIVE DATE means the date set out in the Details.

 

         FERRIER HODGSON REVIEW means the Investigating Accountant's Report ABN

          Australasia Ltd and Associated Entities Trading as Leigh Mardon dated

         27 February 2004 and prepared by Ferrier Hodgson.

 

         NEW SENIOR DEBT FACILITY AGREEMENT means the Senior Debt Facility

         Agreement as novated and amended by this deed.

 

         NOVATED RIGHTS AND OBLIGATIONS means all rights, and obligations to

         repay to the Participants $23,441,780.82 outstanding under the Cash

         Advance Facility and LC Facility and all Capitalised Interest, in each

         case of the Incoming Borrower under the New Senior Debt Facility

         Agreement.

 

         RESIDUAL RIGHTS AND OBLIGATIONS means all rights, and obligations to

         repay to the Participants $23,441,780.82 outstanding under the Cash

         Advance Facility and LC Facility and all Capitalised Interest, in each

         case of the Outgoing Borrower under the Senior Debt Facility Agreement.

 

         SENIOR DEBT FACILITY AGREEMENT means the agreement entitled "Senior

         Debt Facility Agreement" dated 3 June 1996 between, amongst others, the

         Outgoing Borrower, the Guarantors, the Participants, the Security

         Trustee and the Agent (as amended).

 

         SHAREHOLDERS AGREEMENT means the agreement entitled "Subscription and

          Shareholders Agreement for ABN Australasia Holdings Pty Limited" dated

         on or about the date of this deed between the Incoming Borrower, SPV,

         the Outgoing Borrower, ABN and David Head.

 

         SPV means LM SPV Pty Ltd (ACN 108 316 598).

 

         SPV SUBSCRIPTION SHARES has the meaning given in the Shareholders

         Agreement.

 

14.2      INCORPORATION OF TERMS

 

         Clauses 1.1, 1.2, 1.3, 1.8, 24, 25, 36, 38 and 39 of the New Senior

         Debt Facility Agreement apply as if set out in full in this deed.

 

EXECUTED as a deed

 

(C) Mallesons Stephen Jaques      Deed of Assignment, Amendment and Novation    11

7000475 12

<PAGE>

 

DEED OF ASSIGNMENT, AMENDMENT AND NOVATION

 

Schedule 1 - Guarantors

 

<TABLE>

<CAPTION>

                                              PLACE OF

                                           REGISTRATION/

    COMPANY NAME               ABN           INCORPORATION           ADDRESS

<S>                        <C>               <C>               <C>

American Banknote          25 072 977 292    Victoria          1144 Nepean Highway

Australasia Pty Limited                                      Highett Victoria 3190

 

Leigh-Mardon Payment       32 006 412 657    Victoria          1144 Nepean Highway

Systems Pty Limited                                           Highett Victoria 3190

 

Leigh-Mardon               n/a               Taiwan            Bl, 192 Lien Chien Road,

(Taiwan) Ltd                                                 Chung Ho City, Taipei,

                                                             Taiwan

 

American Banknote New      n/a               New Zealand       c/- Chapman Tripp

Zealand Limited                                              Sheffield Young Level 1,

                                                            AMP Centre 1 Grey Street

                                                            Wellington New Zealand

</TABLE>

 

(C) Mallesons Stephen Jaques      Deed of Assignment, Amendment and Novation    12

7000475 12                        5 April 2004

 

<PAGE>

 

DEED OF ASSIGNMENT, AMENDMENT AND NOVATION

 

Schedule 2 - Participants

 

<TABLE>

<CAPTION>

  PARTICIPANT              ABN                          ADDRESS

<S>                    <C>               <C>

JP Morgan Chase        43 074 112011     Level 32

Bank                                     225 George Street

                                       Sydney NSW 2000

 

                                       with a copy of any Notices to:

                                       JPMorgan Business Credit Corp.

                                        16th Floor

                                       1166 Avenue of the Americas

                                       New York NY 10036

                                       Attn:Robert Morrow

 

                                       JPMorgan Business Credit Corp.

                                       17th Floor

                                       1166 Avenue of the Americas

                                       New York NY 10036

                                       Attn:Robert Kuhn

 

Societe Generale       71 092 516 286    Level 21

Australia Branch                        400 George Street

                                       Sydney NSW 2000

                                       Attn: Executive Manager Credit

 

BOS International      23 066 601 250    Level 11

(Australia) Limited                     50 Carrington Street

                                       Sydney NSW 2000

                                       Attn:

 

Bank of Western        22 050 494 454    Level 7

Australia Limited                        Grosvenor Place

                                       225 George Street

                                       Sydney NSW 2000

                                       Attn: Senior Manager, Credit

                                       Restructuring

</TABLE>

 

(C) Mallesons Stephen Jaques      Deed of Assignment, Amendment and Novation    13

7000475 12                        5 April 2004

 

<PAGE>

 

<TABLE>

<CAPTION>

   PARTICIPANT              ABN                         ADDRESS

<S>                    <C>                <C>

The Toronto-           74 082 818 175    Before 1 May 2004

Dominion Bank

                                       Level 34

                                       Rialto Tower South

                                       525 Collins Street

                                        Melbourne Vic 3000

                                       Fax:(03) 9614 1613

                                       Tel:(03) 9993 1209

                                       Attn: Managing Director, Credit

 

                                        After 1 May 2004

 

                                       Level 24,

                                       9 Castlereagh Street, Sydney

                                       Phone: (02) 9619 8888

                                       Fax: (02) 9619 8800

                                       Attn: Managing Director, Credit

 

Credit Lyonnais S.A.                    Direction des Finances du Groupe

                                       Departement de L'Ingenierie

                                        Financiere du Group BC 1640

                                       19 Boulevard des Italiens

                                       75002 Paris

                                       Attn: Annette Bouly

 

                                        with a copy of any Notices to:

                                       Credit Lyonnais Singapore

                                       Regional Recovery Unit

                                       3 Temasek Avenue

                                       #11-01, Centennial Tower

                                       Singapore 039190

                                       Attn: Vincent Lee

</TABLE>

 

(C) Mallesons Stephen Jaques      Deed of Assignment, Amendment and Novation    14

7000475 12

<PAGE>

 

DEED OF ASSIGNMENT, AMENDMENT AND NOVATION

 

Signing page

 

DATED: 6 April 2004

 

EXECUTED by ABN                          )

AUSTRALASIA LIMITED in                   )

accordance with section 127(1) of the    )

Corporations Act by authority of its     )

directors:                                )

                                        )

/s/ DAVID J HEAD                         )     /s/ GARRY [ILLEGIBLE]

------------------------------------     )     ----------------------------------

Signature of director                    )      Signature of director

                                        )

                                        )

DAVID J HEAD                             )     GARRY [ILLEGIBLE]

------------------------------------     )     ----------------------------------

Name of director (block letters)              Name of director (block letters)

 

EXECUTED by ABN                          )

AUSTRALASIA HOLDINGS PTY                 )

LIMITED in accordance with               )

section 127(1) of the Corporations       )

Act by authority of its directors:       )

                                        )

/s/ DAVID J HEAD                         )     /s/ GARRY [ILLEGIBLE]

------------------------------------     )     ---------------------------------

Signature of director                    )     Signature of director

                                        )

DAVID J HEAD                             )     GARRY [ILLEGIBLE]

------------------------------------     )     ----------------------------------

Name of director (block letters)              Name of director (block letters)

 

(C) Mallesons Stephen Jaques      Deed of Assignment, Amendment and Novation    15

7000475 12                        5 April 2004

<PAGE>

 

EXECUTED by AMERICAN                     )

BANKNOTE AUSTRALASIA                     )

PTY LIMITED in accordance with           )

section 127(1) of the Corporations       )

Act by authority of its directors:       )

                                        )

/s/ DAVID J HEAD                         )     /s/ GARRY [ILLEGIBLE]

------------------------------------     )     ----------------------------------

Signature of director                    )     Signature of director

                                        )

DAVID J HEAD                             )     GARRY [ILLEGIBLE]

------------------------------------     )     ----------------------------------

Name of director (block letters)              Name of director (block letters)

 

EXECUTED by LEIGH-MARDON                 )

PAYMENT SYSTEMS PTY                      )

LIMITED in accordance with               )

section 127(1) of the Corporations       )

Act by authority of its directors:       )

                                        )

/s/ DAVID J HEAD                         )     /s/ GARRY [ILLEGIBLE]

------------------------------------     )     ----------------------------------

Signature of director                    )     Signature of director

                                        )

DAVID J HEAD                             )     GARRY [ILLEGIBLE]

------------------------------------     )     ----------------------------------

Name of director (block letters)              Name of director (block letters)

 

EXECUTED by LEIGH-MARDON                 )

(TAIWAN) LIMITED in                      )

by authority of its                      )

directors:                                )

                                        )

/s/ DAVID J HEAD                         )     /s/ GARRY [ILLEGIBLE]

------------------------------------     )     ----------------------------------

Signature of director                    )     Signature of director

                                        )

DAVID J HEAD                             )     GARRY [ILLEGIBLE]

------------------------------------     )     ----------------------------------

Name of director (block letters)              Name of director (block letters)

 

(C) Mallesons Stephen Jaques      Deed of Assignment, Amendment and Novation    16

7000475 12

<PAGE>

 

EXECUTED by AMERICAN                     )

BANKNOTE NEW ZEALAND                     )

LIMITED                                  )

by authority of its directors:           )

                                        )

/s/ DAVID J. HEAD                        )     /s/ GARRY [ILLEGIBLE]

------------------------------------     )     ----------------------------------

Signature of director                    )     Signature of director

                                        )

DAVID J. HEAD                            )     GARRY [ILLEGIBLE]

------------------------------------     )     ----------------------------------

Name of director (block letters)              Name of director (block letters)

 

EXECUTED by AMERICAN                     )

BANKNOTE PACIFIC PTY                     )

LIMITED in accordance with               )

section 127(1) of the Corporations       )

Act by authority of its directors:       )

                                         )

/s/ DAVID J HEAD                         )     /s/ GARRY [ILLEGIBLE]

------------------------------------     )     ----------------------------------

Signature of director                    )     Signature of director

                                         )

DAVID J HEAD                             )     GARRY [ILLEGIBLE]

------------------------------------     )     ----------------------------------

Name of director (block letters)              Name of director (block letters)

 

(C) Mallesons Stephen Jaques      Deed of Assignment, Amendment and Novation    17

7000475 12

<PAGE>

 

SIGNED, SEALED AND                       )

DELIVERED by                             )

as attorney for BOS                      )

INTERNATIONAL (AUSTRALIA)                 )

LIMITED under power of attorney          )

dated                                    )

                                        )

in the presence of:                      )

                                        )

/s/ STEPHEN W POLLOK                      )     /s/ [ILLEGIBLE]

------------------------------------     )     -----------------------------------

Signature of witness                     )     By executing this deed the attorney

                                             states that the attorney has

STEPHEN W POLLOK                         )     received no notice of revocation

------------------------------------     )     of the power of attorney

Name of witness (block letters)          )                                      

 

SIGNED, SEALED AND                        )

DELIVERED BY                             )

as attorney for BANK OF                  )

WESTERN AUSTRALIA                        )

LIMITED under power of attorney          )

dated                                    )

                                         )

in the presence of:                      )

                                        )

/s/ ROSALIND ANDERSON                    )     /s/ [ILLEGIBLE]

------------------------------------     )     -----------------------------------

Signature of witness                     )     By executing this deed the attorney

                                        )     states that the attorney has

ROSALIND ANDERSON                        )     received no notice of revocation

----------------------------------       )     of the power of attorney

Name of witness (block letters)

 

(C) Mallesons Stephen Jaques      Deed of Assignment, Amendment and Novation    18

7000475 12

<PAGE>

 

SIGNED, SEALED AND                       )

DELIVERED by TONY BENECKE                )

as attorney for J.P. MORGAN              )

AUSTRALIA LIMITED under                  )

power of attorney dated                  )

28 OCTOBER 1998                          )

in the presence of:                      )

                                        )

/s/ ROSALIND ANDERSON                    )     /s/ [ILLEGIBLE]

------------------------------------     )     -----------------------------------

Signature of witness                     )     By executing this deed the attorney

                                        )     states that the attorney has

ROSALIND ANDERSON                        )     received no notice of revocation

------------------------------------     )     of the power of attorney

Name of witness (block letters)          )

 

SIGNED, SEALED AND                        )

DELIVERED by                             )

as attorney for CREDIT                   )

LYONNAIS S.A. under power of             )

attorney dated                           )

                                        )

in the presence of:                      )

                                        )

-------------------------------------    )     -----------------------------------

Signature of witness                     )     By executing this deed the attorney

                                        )     states that the attorney has

                                        )     received no notice of revocation

------------------------------------     )     of the power of attorney

Name of witness (block letters)          )

 

(C) Mallesons Stephen Jaques      Deed of Assignment, Amendment and Novation    19

 

<PAGE>

 

SIGNED, SEALED AND                       )

DELIVERED by                             )

as attorney for J.P. MORGAN              )

AUSTRALIA LIMITED under                  )

power of attorney dated                  )

                                        )

in the presence of;                      )

                                        )

------------------------------------     )     -----------------------------------

Signature of witness                     )     By executing this deed the attorney

                                        )     states that the attorney has

------------------------------------     )     received no notice of revocation

Name of witness (block letters)          )     of the power of attorney

 

SIGNED, SEALED AND                       )

DELIVERED by                             )

as attorney for CREDIT                   )

LYONNAIS S.A. under power of             )

attorney dated                           )

                                        )

in the presence of:                      )

                                        )

/s/ VINCENT LEE                          )      /s/ [ILLEGIBLE]

------------------------------------     )     -----------------------------------

Signature of witness                      )     By executing this deed the attorney

                                        )     states that the attorney has

VINCENT LEE                              )     received no notice of revocation of

-----------------------------------      )     the power of attorney

Name of witness (block letters)          )

                                        )

 

(C) Mallesons Stephen Jaques      Deed of Assignment, Amendment and Novation    20

2118648

<PAGE>

 

SIGNED, SEALED AND                       )

DELIVERED by JP MORGAN                   )

CHASE BANK by its duly                   )

authorised representative in the         )

presence of:                             )

                                        )

/s/ ROSALIND ANDERSON                    )

------------------------------------     )

Signature of witness                     )

                                        )

Name of witness (please print)           )

                                        )

        ROSALIND ANDERSON                )

                                         )

Signature of authorised representative   )

                                        )

        [ILLEGIBLE]                      )

 

Name Peter Eckstein

Rank Managing Director

 

(C) Mallesons Stephen Jaques      Deed of Assignment, Amendment and Novation    21

7000475 13

<PAGE>

 

SIGNED, SEALED AND                       )

DELIVERED by                             )

as attorney for SOCIETE                  )

GENERALE AUSTRALIA                       )

BRANCH under power of attorney           )

dated                                     )

                                        )

in the presence of:                      )

                                        )

/s/ ROSALIND ANDERSON                    )     /s/ [ILLEGIBLE]

------------------------------------     )     -----------------------------------

Signature of witness                     )     By executing this deed the attorney

                                        )     states that the attorney has

ROSALIND ANDERSON                        )     received no notice of revocation

------------------------------------     )     of the power of attorney

Name of witness (block letters)          )

 

SIGNED, SEALED AND                       )

DELIVERED by                             )

as attorney for THE TORONTO              )

DOMINION BANK under power of             )

attorney dated                           )

                                        )

in the presence of:                      )

                                        )

/s/ ROSALIND ANDERSON                    )     /s/ [ILLEGIBLE]

------------------------------------     )     -----------------------------------

Signature of witness                     )     By executing this deed the attorney

                                        )     states that the attorney has

ROSALIND ANDERSON                        )     received no notice of revocation

------------------------------------     )     of the power of attorney

Name of witness (block letters)

 

(C) Mallesons Stephen Jaques      Deed of Assignment, Amendment and Novation    22

7000475 12

<PAGE>

 

SIGNED, SEALED AND                       )

DELIVERED by                             )

as attorney for JP MORGAN                )

CHASE BANK under power of                )

attorney dated                           )

                                         )

in the presence of:                      )

                                        )

                                        )

------------------------------------     )     -----------------------------------

Signature of witness                      )     By executing this deed the attorney

                                        )     states that the attorney has

------------------------------------     )     received no notice of revocation

Name of witness (block letters)          )     of the power of attorney

 

(C) Mallesons Stephen Jaques      Deed of Assignment, Amendment and Novation    23

7000475 12

<PAGE>

 

DEED OF ASSIGNMENT, AMENDMENT AND NOVATION

 

Annexure

 

(C) Mallesons Stephen Jaques      Deed of Assignment, Amendment and Novation    24

7000475 12                        5 April 2004

          

<PAGE>

 

                            NEW SENIOR DEBT FACILITY

                                   AGREEMENT

 

                       THIS IS THE ANNEXURE OF 100 PAGES

                            DESCRIBED IN THE DEED OF

                           ASSIGNMENT, AMENDMENT AND

                           NOVATION DATED 6 APRIL 2004

 

<PAGE>

 

                                                                    1

 

<TABLE>

<CAPTION>

CONTENTS                  NEW FACILITY AGREEMENT

----------------------------------------------------------------------------

<S>        <C>                                                        <C>

          1     DEFINITIONS AND INTERPRETATION                         1

 

               Definitions                                            1

               Interpretation                                        16

               Determination, statement and certificate              17

               Document or agreement                                  17

               Repayment and prepayment                              17

               Principal                                             17

               Trust                                                 17

               Current accounting practice and accounting terms      18

               International accounting standards                    18

               Outstanding                                           18

               Debenture Trust Deed                                  18

                Shareholders Agreement                                18

 

          2     COMMITMENTS                                           19

 

               Commitments                                           19

               Allocation among Participants                          19

               Obligations several                                   19

 

          3     CANCELLATION OF COMMITMENTS                           19

 

               During Availability Period                            19

               Allocation among Participants                         19

               At end of Availability Period                         19

 

          4     PURPOSE                                               20

 

               Cash Advance Facility                                  20

               LC Facility                                           20

               Acknowledgment                                        20

               NZ Sale Proceeds                                      20

 

          5     DRAWDOWN NOTICES                                       21

 

               When notice to be given - Cash Advance Facility       21

               When notice to be given - LC Facility                 21

               Minimum Drawing                                       21

                Notification of Participants                          21

 

          6     SELECTION OF FUNDING PERIODS                          21

 

          7     REPAYMENT                                             22

 

               Repayment - Cash Advance Facility                     22

               Repayment - LC Facility                               22

               Allocation among Participants                         22

               Allocation among Segments                             22

               Use of Free Cash Flow                                 23

               Mandatory Repayments                                  23

               Repayment                                             24

 

          8     PREPAYMENTS                                            24

 

               Voluntary prepayments                                 24

               Voluntary prepayment on expiry of Funding Period      24

</TABLE>

 

<PAGE>

 

                                                                     2

 

<TABLE>

<S>        <C>                                                        <C>

               Limitation on prepayments                             25

               Apportionment                                         25

               Redrawing                                              25

 

          9     CASH ADVANCE FACILITY                                 25

 

               Advance of Segment                                    25

               Repayment                                             25

               Preparation of Reliquefication Bills                  26

               Requirements of Reliquefication Bills                 26

               Dealing with Reliquefication Bills                    26

               Indemnity                                              26

               Stamp duty on Reliquefication Bills                   26

 

          10    LETTER OF CREDIT FACILITY                             26

 

               Issue of Letters of Credit                            26

               Form                                                   27

               Number                                                27

               Expiry date                                           27

               Amount                                                27

               Secured Financing                                     27

               Participant as Beneficiary                            28

               Agent's authority                                     28

               Notification of issue                                  28

               Drawings procedure                                    28

               Recovery by Agent                                     28

               Payment of Secured Financings by Group Member         29

               Indemnity                                             29

               Obligations unconditional                             29

               Indemnity from Participants to Agent                  30

 

          11    PAYMENTS                                               30

 

               Manner                                                30

               Payment to be made on Business Day                    30

               Distribution by Agent                                 30

               Appropriation where insufficient moneys available     30

               Unanticipated default                                 30

               Rounding                                              31

               Withholding tax                                       31

 

          12    CHANGES IN LAW                                        32

 

               Increased costs                                       32

               Minimisation                                          33

               Survival of obligations                                33

               Prepayment on increased costs                         33

               Illegality                                            33

 

          13    CONDITIONS PRECEDENT                                  34

 

          14    REPRESENTATIONS AND WARRANTIES                        35

 

               Representations and warranties                        35

               Reliance on representations and warranties            39

               Repetition for Guarantors                              39

</TABLE>

 

<PAGE>

 

                                                                      3

 

<TABLE>

<S>        <C>                                                        <C>

          15    UNDERTAKINGS                                           39

 

               General undertakings                                  39

               Undertakings relating to Mortgaged Property           48

               Financial undertakings                                52

               Term of undertakings                                   53

 

          16    EVENTS OF DEFAULT                                     54

 

               Events of Default                                     54

               Consequences                                          58

                Cash cover for letters of credit                      58

               Technical default in payment                          59

 

          17    GUARANTEE                                             60

 

               Guarantee                                              60

               Payment                                               60

               Unconditional nature of obligation                    60

               No marshalling                                        61

               No competition                                        61

               Suspense account                                      62

               Rescission of payment                                 62

               Indemnity                                              62

               Continuing guarantee and indemnity                    63

               Variations                                            63

               Judgment                                              63

               Conditions precedent                                  63

 

          18    INTEREST ON OVERDUE AMOUNTS                           63

 

               Accrual and payment                                   63

               Rate                                                  64

 

           19    FEES                                                  64

 

               Fees - general                                        64

               Letter of credit fee                                  64

               Refund of fees                                         65

 

          20    INDEMNITIES                                           65

 

          21    CONTROL ACCOUNTS                                      66

 

          22    EXPENSES                                              66

 

          23    STAMP DUTIES                                          66

 

          24    SET-OFF                                               67

 

          25    WAIVERS, REMEDIES CUMULATIVE                          67

 

          26    SEVERABILITY OF PROVISIONS                             67

 

          27    SURVIVAL OF REPRESENTATIONS AND INDEMNITIES           67

 

          28    MORATORIUM LEGISLATION                                68

 

          29    ASSIGNMENTS                                           68

</TABLE>

 

<PAGE>

 

                                                                      4

 

<TABLE>

<S>        <C>                                                        <C>

               Assignment by Borrower and Guarantor                  68

               Assignment by Participants                            68

               Substitution certificates                             69

               Disclosure                                            70

               No increased costs                                    70

 

          30    RELATIONSHIP OF PARTICIPANTS TO AGENT                 70

 

               Authority                                             70

               Instructions; extent of discretion                    70

               No obligation to investigate authority                70

               Agent not a fiduciary                                 71

               Exoneration                                           71

               Delegation                                            71

               Reliance on documents and experts                     71

               Notice of transfer                                    71

               Notice of default                                     71

               Agent as Participant and banker                        72

               Indemnity to Agent                                    72

               Independent investigation of credit                   72

               No monitoring                                         72

               Information                                            73

               Replacement of Agent                                  73

               Amendment of Transaction Documents                    74

               Subscription for Stock                                75

 

          31    PROPORTIONATE SHARING                                 75

 

               Sharing                                               75

               Refusal to join in action                             76

 

          32    AGENT DEALINGS                                         76

 

          33    ADDITION OF GUARANTORS                                76

 

          34    NOTICES                                               77

 

          35    AUTHORISED OFFICERS                                   77

 

          36    GOVERNING LAW AND JURISDICTION                        77

 

               Governing Law and Jurisdiction                        77

               Process agents                                        77

 

          37    COUNTERPARTS                                           78

 

          38    ACKNOWLEDGEMENT BY BORROWERS AND GUARANTORS           78

 

          39    CONSENTS AND OPINIONS                                 78

 

          SCHEDULE 1   GUARANTORS                                     79

 

          SCHEDULE 2   PARTICIPANTS                                   80

 

          SCHEDULE 3   LINE ITEMS                                     84

 

          ANNEXURE A   DRAWDOWN NOTICE                                85

</TABLE>

 

<PAGE>

 

                                                                      5

 

<TABLE>

<S>        <C>                                                        <C>

          ANNEXURE B     GUARANTOR ACCESSION DEED                     87

 

          ANNEXURE C     LETTER OF CREDIT AUTHORISATION               89

 

          ANNEXURE D     FORM OF LETTER OF CREDIT                     90

 

          ANNEXURE E     FINANCIAL INDEBTEDNESS                       92

 

          ANNEXURE F     SUBSTITUTION CERTIFICATE                     93

 

          ANNEXURE G     CORPORATE TREE                                97

 

          ANNEXURE H     CASH FLOW STATEMENT                          98

 

          ANNEXURE I     OPERATING FORECAST                           99

 

          ANNEXURE J     FORECAST CASH FLOW STATEMENT                 100

</TABLE>

 

<PAGE>

 

                                                                                1

 

                       NEW SENIOR DEBT FACILITY AGREEMENT

 

OPERATIVE PROVISIONS:

 

1         DEFINITIONS AND INTERPRETATION

 

DEFINITIONS

 

                  1.1       The following definitions apply unless the context

                           requires otherwise.

 

                           ABN SHARES means those shares in the Borrower which

                           are the subject of the Shareholders Agreement.

 

                            ACCOUNTS means profit and loss accounts, balance

                           sheets and cash flow statements together with any

                           statements, reports (including, without limitation,

                           any directors' and auditors' reports) and notes

                           attached to or intended to be read with any of them.

 

                           AGENT means J.P. Morgan Australia Limited (ABN 52 002

                           888011).

 

                            ASSOCIATE in relation to an entity means:

 

                           (a)       a Related Corporation of that entity;

 

                           (b)       an entity, or the trustee or manager of a

                                    trust, which has a Controlling Interest in

                                    that entity, or a Related Corporation of

                                    that entity;

 

                           (c)       a Related Corporation of an entity included

                                     in paragraph (b) or (e);

 

                           (d)       an executive director of that entity or an

                                    entity included in paragraph (a), (b) or (c)

                                    or of the manager or of the trustee of any

                                    trust included in paragraph (a), (b) or (c)

                                    or a spouse, child, parent or sibling of

                                    that director;

 

                            (e)       a corporation, or the trustee or manager of

                                    a trust, in which one or more entity or

                                    person mentioned in paragraph (a), (b), (c),

                                    (d), (e), (f) or (g) alone or together has a

                                    Controlling Interest;

 

                           (f)       the trustee of a discretionary trust of

                                    which an entity or person included in

                                     paragraph (a), (b), (c), (d), (e) or (g) is

                                    a beneficiary (whether or not through one or

                                    more other discretionary trusts); or

 

                           (g)        an entity of which an executive director of

                                    that entity or a Related Corporation of that

                                    entity is also a director.

 

                           For the purposes of this definition:

 

                           (i)       where a person is a beneficiary of a

                                    discretionary trust, that person will be

                                    taken to own, and control, all the assets of

                                     that trust;

 

                           (ii)      DIRECTOR has the meaning given in the

                                    Corporations Act; and

<PAGE>

                                                                               2

 

                   (iii)     a person has a CONTROLLING INTEREST in a corporation

                           or trust if:

 

                           (A)       the corporation or its directors, or the

                                    trustee or manager of the trust or its

                                    directors, are accustomed, or under an

                                    obligation, whether formal or informal, to

                                    act in accordance with the directions,

                                     instructions or wishes of that person or of

                                    that person in concert with others; or

 

                           (B)       the person has a relevant interest (as

                                    defined in the Corporations Act) in more

                                    than 51% of the issued or voting shares,

                                    units or other interests in the corporation

                                    or trust (in number, voting power or value),

                                    or would have that relevant interest if any

                                    rights were exercised to subscribe for, or

                                    acquire or convert into, shares, units or

                                     other interests which are issued or

                                    unissued. The definition of relevant

                                    interest applies as if units or other

                                    interests were shares.

 

                  AUTHORISATION includes:

 

                  (a)       any consent, authorisation, registration, filing,

                           lodgement, agreement, notarisation, certificate,

                           permission, licence, approval, authority or exemption

                           from, by or with a Governmental Agency; or

 

                  (b)       in relation to anything which will be fully or partly

                           prohibited or restricted by law if a Governmental

                           Agency intervenes or acts in any way within a

                           specified period after lodgement, filing,

                           registration or notification, the expiry of that

                            period without intervention or action.

 

                  AUTHORISED OFFICER means:

 

                  (a)       in respect of the Borrower or any Guarantor, any

                           director or secretary, or any person from time to

                            time nominated as an Authorised Officer by the

                           Borrower or the relevant Guarantor by a notice to the

                           Agent accompanied by certified copies of signatures

                           of all new persons so appointed; and

 

                  (b)       in respect of the Agent or a Participant, any person

                           whose title or acting title includes the word MANAGER

                           or PRESIDENT or cognate expressions, or any secretary

                           or director.

 

                  AVAILABILITY PERIOD means for a Facility, the period

                  commencing on the date of this agreement and expiring on the

                  Final Maturity Date or, if earlier, the date on which the

                  Commitment for a Facility is cancelled.

 

                  BASE RATE means, on any Rate Set Date in respect of a Funding

                  Period:

 

                  (a)       the average bid rate displayed at or about 10.30am on

                           the Rate Set Date on the Reuters screen BBSY page for

                           a term equivalent to the Funding Period; or

 

                  (b)       if:

 

<PAGE>

 

                                                                                3

 

                           (i)       for any reason that rate is not displayed;

                                    or

 

                           (ii)      the basis on which that rate is displayed is

                                     changed and in the reasonable opinion of the

                                    Agent it ceases to reflect the Participants'

                                    cost of funding to the same extent as at the

                                     date of this agreement,

 

                           then the Base Rate will be the rate determined by the

                           Agent to be the average of the buying rates quoted to

                           the Agent by 3 Reference Banks at or about 10.30am on

                           the Rate Set Date. The buying rates must be for bills

                           of exchange accepted by a leading Australian bank and

                           which have a term equivalent to the Funding Period.

                            If there are less than 3 Reference Banks quoting

                           buying rates, then the Base Rate for each Participant

                           will be the rate notified by that Participant to the

                            Agent to be that Participant's cost of funding its

                           Pro Rata Share of the Principal Outstanding for the

                           Funding Period;

 

                  All calculations of rates for the purposes of this definition

                  will be expressed as a yield percent per annum to maturity.

 

                  BENEFICIARY means the beneficiary of a Letter of Credit.

 

                  BILL means a BILL OF EXCHANGE as defined in the Bills of

                  Exchange Act 1909.

 

                  BOARD means some or all of the directors of the Borrower

                  acting as a board in accordance with the constitution of the

                  Borrower and the Shareholders Agreement.

 

                  BORROWER means ABN Australasia Holdings Pty Ltd (ABN 11 072

                  977 229).

 

                  BUDGET has the meaning as set out in the Shareholders

                  Agreement.

 

                  BUSINESS means the manufacture and supply of transactions and

                  identification products, service and logistics carried on at

                  the date of this Agreement by the Group, as it may develop or

                  be expanded from time to time. It includes, without

                  limitation:

 

                  (a)       the manufacture and supply of personalised cheques

                           and cheque books, deposit books, bank cheques,

                           medical and other forms, postal money orders, gift or

                            title certificates, promissory notes, drafts, bearer

                           securities and warrants;

 

                  (b)       the provision of electronic printing services and

                           distribution of bills, statements, dividend and

                           disbursement cheques, local government rate notices,

                           statements for insurances purposes and vehicle

                           registration labels;

 

                  (c)       the managing of business process outsourcing of

                           customers' operational and marketing print

                           requirements;

 

                  (d)       the management of content data, and interpretation of

                            data from customers core systems into multiple forms

                           of output;

 

<PAGE>

 

                                                                               4

 

                  (e)       provision of postage management services including

                           the sorting, appending and aggregating of mail, and

                           return mail processing;

 

                  (f)       the manufacture and distribution of a wide range of

                           cards, including financial cards, telecommunication

                           cards and commercial cards;

 

                  (g)       the provision of bureau personalisation services for

                           financial and non-financial cards;

 

                   (h)       the provision of licence issuance software solutions

                           including the manufacture and distribution of

                           photographic identification cards;

 

                  (i)       the manufacture and distribution of photographic and

                           high resolution bar code Labels;

 

                  (j)       through its joint venture LM Gemplus, the manufacture

                           and distribution of smart cards, including financial

                            and telecommunication cards and the sale of hardware

                           and software that enables the use of smart cards;

 

                  (k)       anything developed from or substantially similar to

                           the above.

 

                  BUSINESS DAY means a weekday on which banks are open in

                  Melbourne and Sydney.

 

                  BUSINESS PLAN has the meaning as set out in the Shareholders

                  Agreement.

 

                  CAI means Credit Agricole Indosuez S.A..

 

                  CAPITALISED INTEREST means all interest which has accrued and

                  remains unpaid under the Senior Debt Facility Agreement from

                  15 September 2003 to the Effective Date being $1,932,191.78.

 

                  CASH ADVANCE COMMITMENT means, in relation to a Participant,

                  the amount opposite that Participant's name in Column 2 of

                  Part A of schedule 2, as reduced or cancelled under this

                   Agreement.

 

                  CASH ADVANCE FACILITY means the Facility provided under clause

                  9.

 

                  CASH ADVANCE UNDRAWN COMMITMENT means a Participant's Cash

                  Advance Commitment less the total principal amount of its

                  Share of all outstanding Segments of the Cash Advance

                  Facility.

 

                  CASH FLOW PROJECTIONS means the cash flow projections provided

                  to the Agent under clause 2.3 of the Deed of Assignment.

 

                  CHARGE means any charge, debenture or other Security Interest

                  given by the Borrower or a Guarantor to secure the Secured

                  Moneys (including without limitation the Debenture Trust Deed

                  and any Satisfactory Charge).

 

<PAGE>

                                                                               5

 

                  CLASS A PREFERENCE SHARES has the meaning given to it in the

                  Shareholders Agreement.

 

                  COLLATERAL SECURITY means any Security Interest, Guarantee or

                  other document or agreement at any time created or entered

                  into as security for any Secured Moneys.

 

                  COMMITMENT in relation to a Participant means:

 

                  (a) in relation to the Cash Advance Facility, its Cash Advance

                      Commitment; and

 

                  (b) in relation to the LC Facility, its LC Commitment.

 

                  COMPLETION DATE has the meaning given to it in the

                  Shareholders Agreement.

 

                  CONTROL has the meaning given to it in s50AA of the

                  Corporations Act and CONTROLLED has a corresponding meaning.

 

                   DEBENTURE TRUST DEED means the Debenture Trust Deed dated 3

                  June 1996 between, among others, the Borrower and each

                  Guarantor.

 

                  DEBT SERVICE means, for any period, Interest Expense under

                   this Agreement paid or payable in cash plus Principal

                  Outstanding paid or payable under clause 7 during that period.

 

                  DEED OF ASSIGNMENT means the deed entitled "Deed of

                  Assignment, Amendment and Novation" dated 6 April 2004 between

                  ABN Australasia Limited ABN 42 072 665 692, the Borrower, the

                  Participants, the Guarantors, the Security Trustee and the

                  Agent.

 

                  DERIVATIVE CONTRACT means an agreement, contract or

                  arrangement the value of which depends on or derives from the

                  value of an underlying asset, currency, reference rate or

                  index (whether over-the-counter or exchange traded) and

                  includes a futures contract, interest rate swap contract,

                  currency swap contract, forward foreign exchange rate

                  contract, forward interest rate contact, interest rate and

                  currency option and cap, collar and floor transaction entered

                  into by a Group Member in good faith on normal commercial

                  terms at arm's length in the ordinary course of business with

                  an Indemnified Party.

 

                   DISTRIBUTION means, in relation to a company, any payment or

                  distribution of any money or other assets to a shareholder of

                  the company or an Associate of the company or that

                  shareholder, including without limitation:

 

                  (a)       any dividend or other distribution, whether of a

                           capital or revenue nature, to a company's

                           shareholders or stockholders, partners or members as

                            such;

 

                  (b)       any application or distribution of any property or

                           assets to purchase, redeem or otherwise retire any

                           shares or stock in a company;

 

<PAGE>

                                                                                6

 

                  (c)       any reduction (followed by any distribution) of a

                           company's capital;

 

                  (d)       any payment or exchange of property or assets for

                           property, assets or services for a consideration

                           which (independently valued) exceeds the fair market

                           value of the property, assets or services acquired,

                           or any gift;

 

                  (e)       any management fee (however called);

 

                  (f)       any interest or principal under a loan;

 

                  (g)       any transfer or settlement or setting aside of

                            property or assets to meet or effect any other

                           Distribution mentioned above; and

 

                  (h)       any payments under a guarantee in respect of a

                           shareholder,

 

                   but does not include:

 

                           (i)       any director's fee determined at market

                                    rates;

 

                           (ii)      any distribution required or permitted under

                                     the Cash Advance Facility or the LC

                                    Facility;

 

                           (iii)     any reasonable entertainment, travel and

                                    other out-of-pocket expenses of officers or

                                     managers of such shareholder or Associate

                                    incurred in connection with any Group

                                    Member;

 

                           (iv)      the premium for, or other amounts incurred

                                    in relation to, any insurance taken out by

                                    that shareholder or Associate for the

                                    benefit of any Group Member (whether for

                                     that Group Member alone or for that Group

                                    Member and any other person); and

 

                           (v)       any payment or exchange of property or

                                    assets for property, assets or services for

                                    a consideration which (independently valued)

                                    is equal to or less than the fair market

                                    value of the property, assets or services

                                    acquired.

 

                  DRAWDOWN DATE means the date on which any accommodation under

                  this Agreement is or is to be drawn.

 

                  DRAWDOWN NOTICE means a notice under clause 5.

 

                  EBITDA means, in respect of any period, the amount shown by

                  the Accounts for that period as revenue:

 

                  (a)       less:

 

                           (i)       all corporate overheads; and

 

                            (ii)      all operating expenses (including cost of

                                    goods sold), other than:

 

<PAGE>

                                                                               7

 

                                     (B)       Interest Expense;

 

                                    (C)       provision for Tax;

 

                                    (D)       depreciation;

 

                                    (E)       amortisation; and

 

                                    (F)       non-cash charges (other than

                                             employee entitlement provisioning),

 

                           of the Group on a consolidated basis (to the extent

                           included in operating expenses)

 

                  (b)       adjusted for:

 

                           (i)       non-recurring gains or losses;

 

                           (ii)      gains or losses from the sale of assets;

 

                           (iii)     non cash forex gains and losses,

 

                           of the Group on a consolidated basis,

 

                  (c)       plus an amount equal to the aggregate of all cash

                           dividends received in respect of equity investments

                           of the Group on a consolidated basis.

 

                  EFFECTIVE DATE has the meaning set out in the Deed of

                  Assignment.

 

                  ENVIRONMENTAL LAW means a provision of a law or a law, which

                  relates to an aspect of the environment or health.

 

                  EVENT OF DEFAULT has the meaning in clause 16.1.

 

                  EXCLUDED TAX means:

 

                  (a)       any Tax imposed by a jurisdiction (other than

                           Australia or any political subdivision or Taxing

                           authority of or in Australia) solely as a consequence

                           of any Indemnified Party being organised or doing

                           business in that jurisdiction;

 

                   (b)       any Tax imposed on the net income or revenues of an

                           Indemnified Party:

 

                           (i)       by any jurisdiction outside Australia; or

 

                           (ii)      by Australia or any political subdivision or

                                    Taxing authority of or in Australia as a

                                    consequence of any Indemnified Party being

                                    or becoming a "resident" of Australia or

                                    carrying on business in Australia through a

                                    "permanent establishment" in Australia (as

                                    those terms are defined in the Income Tax

                                     Assessment Act 1936 or any relevant

                                    statutory concept which replaces or is in

                                    addition to those concepts); and

 

<PAGE>

                                                                                8

 

                  (c)       any withholding tax imposed by Australia or any

                           political subdivision or Taxing authority of or in

                           Australia on any payment made or to be made by or on

                           behalf of the Borrower (including without limitation

                           payment by the Agent) to or income derived by an

                           Indemnified Party who is a non-resident of Australia

                            or who is a resident of Australia deriving the income

                           or payment through an overseas branch.

 

                  FACILITY means the Cash Advance Facility and the LC Facility.

 

                  FERRIER HODGSON REVIEW means the Investigating Accountant's

                  Report ABN Australasia Ltd and Associated Entities Trading as

                  Leigh Mardon review dated 27 February 2004 and prepared by

                  Ferrier Hodgson.

 

                  FINAL MATURITY DATE means, for each Facility, the date which

                  is the fifth anniversary of the Effective Date.

 

                  FINANCIAL INDEBTEDNESS means any indebtedness, present or

                  future, actual or contingent in respect of moneys borrowed or

                  raised or any financial accommodation whatever. Without

                  limitation, it includes:

 

                  (a)       indebtedness under or in respect of a negotiable or

                           other financial instrument, Guarantee, redeemable

                           share (other than a redeemable share issued under the

                           Shareholders Agreement), share the subject of a

                           Guarantee, discounting arrangement, hire purchase,

                           deferred purchase price (for more than 90 days) of an

                           asset or service or an obligation to deliver goods or

                           other property or provide services paid for in

                           advance by a financier or in relation to another

                           other financing transaction;

 

                  (b)       the mark to market exposure under any interest, gold

                           or currency exchange, hedge or arrangement of any

                           kind,

 

                  but does not include:

 

                  (c)       any off balance sheet operating Lease;

 

                  (d)       any payment by a trade customer in advance of

                            delivery of goods or services on ordinary commercial

                           terms; or

 

                  (e)       any trade debtors of Leigh Mardon that are prepaid on

                           a regular basis in the ordinary course of its

                           business; or

 

                  (f)       any operating Leases that, after the Effective Date,

                           are accounted for as, or the underlying assets become

                           the subject of, finance Leases.

 

                  FREE CASH FLOW means any cash of the Borrower and its

                  Subsidiaries remaining after the Borrower has set aside all

                  cash which the Company reasonably and properly determines is

                   required to adequately provide for the continuing successful

                  operation of the Business by the Borrower and its

                  Subsidiaries, including in particular:

 

<PAGE>

 

                                                                                9

 

                  (a)       to pay existing, or provide against anticipated,

                           debts or other liabilities, obligations and costs of

                           the Borrower and Subsidiaries properly incurred for

                           the continued operation and improvement of the

                           Business in accordance with the Business Plan;

 

                  (b)       to provide against, and in due course pay, new debts

                            or other liabilities, obligations and costs properly

                           incurred for the continued operation and improvement

                           of the Business in accordance with the Business Plan;

 

                  (c)       to provide and pay for other working capital

                           requirements for continued operation and improvement

                           of the Business in the ordinary course of Business in

                           accordance with the Business Plan;

 

                  (d)       to provide and pay for capital expenditure for

                           continued operation of the Business in the ordinary

                           course of Business in accordance with the Business

                            Plan; and

 

                  (e)       to provide and pay for any other expenditure required

                           for the continued survival of the Borrower and its

                           Subsidiaries in accordance with the Business Plan.

 

                  FUNDING PERIOD means, in relation to a Segment of the Cash

                  Advance Facility, a period for the fixing of interest rates

                  for the Segment.

 

                  In each case the period commences on the Drawdown Date of the

                  Segment or the last day of the preceding Funding Period of the

                  Segment (as appropriate) and has a duration specified under

                  clause 6.

 

                  GOVERNMENTAL AGENCY means any government or any governmental,

                  semi-governmental, fiscal, judicial, quasi-judicial body,

                  department, commission, authority, tribunal, agency or entity

                  except to the extent that any of the foregoing are customers

                  or suppliers. It also includes any self-regulatory

                  organisation established under statute or any stock exchange.

 

                  GROUP means the Borrower and its Subsidiaries.

 

                  GROUP MEMBER means each company which is a member of the

                  Group.

 

                  GUARANTEE means any guarantee, indemnity, letter of credit,

                  legally binding letter of comfort or suretyship, or any other

                  legally binding obligation or irrevocable offer (whatever

                  called and of whatever nature):

 

                  (a)       to pay or to purchase;

 

                  (b)       to provide funds (whether by the advance of money,

                           the purchase of or subscription for shares or other

                           securities, the purchase of assets, rights or

                           services, or otherwise) for the payment or discharge

                           of;

 

<PAGE>

 

                                                                               10

 

                  (c)       to indemnify against the consequences of default in

                           the payment of; or

 

                  (d)       to be responsible otherwise for,

 

                   an obligation or indebtedness of another person, a dividend,

                  distribution, capital or premium on shares, stock or other

                  interests, or the insolvency or financial condition in each

                  case of another person.

 

                  GUARANTOR means each person so described in Schedule 1 and any

                  new guarantor under clause 33 and, if there is more than one,

                  means each of them individually and every two or more of them

                  jointly.

 

                  GUARANTOR ACCESSION DEED means a deed substantially in the

                  form of annexure B.

 

                  INDEMNIFIED PARTY means the Agent, a Participant or any person

                  whom the Agent, the Borrower and the Guarantors agree will be

                  an Indemnified Party.

 

                  INTELLECTUAL PROPERTY means any intellectual or industrial

                  property including without limitation:

 

                  (a)        a patent, trade mark or service mark, copyright,

                           registered design, trade secret, or confidential

                           information; or

 

                  (b)       a licence or other right to use or to grant the use

                            of any of the foregoing or to be the registered

                           proprietor or user of any of the foregoing.

 

                  INTEREST EXPENSE means, for any period, all interest and

                  amounts in the nature of interest or of similar effect to

                  interest (including amounts other than principal payable under

                  this Agreement) paid or payable by any Group Member shown by

                  the Accounts for that period including:

 

                   (a)       any dividend or distribution payable on any

                           Marketable Security included as Financial

                           Indebtedness;

 

                  (b)       the face amount of bills of exchange or other

                            financial instruments (but not reliquefication bills

                           drawn under this Agreement) drawn, issued, endorsed

                           or accepted by any Group Member less their net

                            proceeds after discount or issue and payment of any

                           acceptance, endorsement, underwriting or similar fee;

 

                  (c)       all line, facility, letter of credit, guarantee and

                           similar fees and all fees and other amounts of a

                           regular or recurring nature payable in relation to

                           Financial Indebtedness but not:

 

                           (i)       unused line fees; and

 

                            (ii)      establishment, arrangement and other fees

                                    payable once only on the initial provision

                                    of financial accommodation,

 

<PAGE>

 

                                                                               11

 

                                    but excluding all transactions between any

                                    two Group Members; and

 

                  (d)      interest payable under any Secured Financing,

 

                   less any interest and amounts in the nature of interest earned

                  by the Group Member during that period. For the avoidance of

                  doubt, Interest Expense does not include fees and expenses

                  that are treated as an interest expense for accounting

                  purposes or Interest Expense incurred in respect of Financial

                  Indebtedness arising out of operating leases that, after the

                  Effective Date, are accounted for as, or the underlying assets

                  become the subject of, finance Leases.

 

                  INTEREST RATE means, in respect of a Funding Period, the

                  aggregate of the Base Rate and the Margin on the first day of

                  that period.

 

                  JV means the joint venture between the Borrower and Gemplus

                  Technologies Asia Pty Ltd and governed by the terms of the

                  Joint Venture Agreement.

 

                  JOINT VENTURE AGREEMENT means the agreement dated on or about

                  10 January 2000 between Gemplus Technologies Asia Pty Ltd,

                  Gemplus S.A., the Borrower and ABN.

 

                  LC COMMITMENT means, in relation to a Participant, the amount

                   opposite that Participant's name in column 2 of Part B of

                  schedule 2, as reduced or cancelled under this Agreement.

 

                  LC FACILITY means the Facility provided under clause 10.

 

                  LC UNDRAWN COMMITMENT means a Participant's LC Commitment less

                  the total principal amount of its Share of all principal

                  outstanding under the LC Facility.

 

                  LETTER OF CREDIT means a letter of credit issued or to be

                   issued under clause 10.

 

                  LINE ITEM means an item listed in schedule 3.

 

                  LIQUIDATION includes receivership, compromise, arrangement,

                  amalgamation, administration, reconstruction, winding up,

                  dissolution, assignment for the benefit of creditors,

                  bankruptcy or death.

 

                  LM AUSTRALIA means American Banknote Australasia Pty Ltd ABN

                  25 072 977 292.

 

                  LM GROUP means LM Australia and LM Taiwan.

 

                  LM TAIWAN means LEIGH-Mardon (Taiwan) Ltd.

 

                  LMPS means Leigh-Mardon Payment Systems Pty Limited (ABN 32

                  006 412 657).

 

<PAGE>

 

                                                                               12

 

                  MAJORITY PARTICIPANTS means Participants whose aggregate

                  Commitments are more than two thirds of the total of the

                  Commitments.

 

                  MARGIN means 2.50% per annum.

 

                  MARKETABLE SECURITY has the meaning given in the Corporations

                  Act, but also includes:

 

                  (a)       a document referred to in the exceptions to the

                           definition of DEBENTURE in the Corporations Act;

 

                  (b)       a unit or other interest in a trust or partnership;

 

                  (c)       a negotiable instrument; and

 

                  (d)       a right or an option in respect of a Marketable

                            Security, whether issued or unissued, including,

                           without limitation, any of the above.

 

                  MATERIAL ADVERSE EFFECT means, in the reasonable opinion of

                  the Majority Participants, a material adverse effect on:

 

                  (a)       the ability of the Relevant Companies as a whole to

                           perform their obligations under the Transaction

                           Documents; or

 

                  (b)       the security, rights or benefits of the Indemnified

                           Parties under the Transaction Documents.

 

                  MORTGAGED PROPERTY means the property mortgaged or charged by

                  a Charge or any Collateral Security.

 

                   NEW SENIOR DEBT FACILITY means this New Senior Debt Facility

                  Agreement dated 6 April 2004.

 

                  NEW ZEALAND SALE means the sale of the assets of American

                  Banknote New Zealand Limited.

 

                   NEW ZEALAND SALE PROCEEDS means the net proceeds (after costs

                  of the sale and all taxes payable are deducted) received from

                  the New Zealand Sale.

 

                  PARTICIPANT means a Participant set out in schedule 2 or a

                  person who becomes a Participant under clause 31.2.

 

                  PERMITTED CL TRANSFEREE means CAI and any entity which is:

 

                  (a)       a Subsidiary of CAI;

 

                  (b)       which is Controlled by, which Controls, or which is

                           under common Control with CAI or the entity which is

                           transferring all of its rights or obligations under

                           the Transaction Documents; or

 

                  (c)       a Related Corporation of CAI.

 

<PAGE>

 

                                                                              13

 

                  PERMITTED INTERNAL TRANSFEREE means a Related Body Corporate

                  or other entity which is Controlled by, which Controls, or

                  which is under common Control with the entity which is

                  transferring all of its rights or obligations under the

                  Transaction Documents ("TRANSFEROR"), where the transferee

                  entity is engaged in similar business activities to the

                  Transferor or the Transfer is undertaken in connection with

                  any proposed merger, amalgamation, reconstruction or other

                   internal restructuring affecting the Transferor.

 

                  PERMITTED SALE ASSET means an asset referred to in clause

                  15.1(f)(iii)(B).

 

                  POTENTIAL EVENT OF DEFAULT means anything which with the

                   giving of notice or passage of time or both would become an

                  Event of Default.

 

                  PRINCIPAL OUTSTANDING means:

 

                  (a)       with respect to the Cash Advance Facility, the total

                            principal amount of all outstanding Segments; and

 

                  (b)       with respect to the LC Facility, the face amount of

                           the LCs outstanding under the LC Facility,

 

                  or if the context so requires, the aggregate of these amounts.

 

                  PRO RATA SHARE means, with respect to a Participant, the

                  proportion which that Participant's Commitment bears to the

                  aggregate of all Commitments.

 

                  PROFIT IMPROVEMENT PLAN means the plan presented to the

                  Company as set out in the Budget.

 

                  QUARTERLY DATE means the last day of March, June, September

                  and December in each year.

 

                  RATE SET DATE means the first day of a Funding Period.

 

                  REDUCTION DATE means each date on which Principal Outstanding

                  is to be repaid in accordance with clauses 7.1(a) and 7.6.

 

                  REFERENCE BANK means Westpac Banking Corporation, Australia

                  and New Zealand Banking Group Limited, National Australia Bank

                  Limited or Commonwealth Bank of Australia.

 

                  RELATED CORPORATION has the meaning given to RELATED BODY

                   CORPORATE in the Corporations Act, but on the basis that

                  SUBSIDIARY has the meaning given in this Agreement and that

                  BODY CORPORATE includes any entity or a trust.

 

                  RELEVANT COMPANY means:

 

                   (a)       a Group Member; or

 

                  (b)       another person who gives or creates a Guarantee or

                           Security Interest which secures any Secured Moneys.

 

<PAGE>

 

                                                                               14

 

                  RELIQUEFICATION BILL means a Bill drawn under clause 9.

 

                  RETENTION ACCOUNT means the account opened with National

                  Australia Bank Limited, BSB 083 337 in the name of LM

                   Australia and with the account number 567 445 465.

 

                  SAME DAY FUNDS means a bank cheque or other immediately

                  available funds.

 

                  SATISFACTORY CHARGE means a first charge over all assets to

                  secure the Secured Moneys where the Agent has received

                  documents or evidence in connection with that charge

                  satisfactory to the Agent (including, where requested,

                  opinions).

 

                   SECURED FINANCING means accommodation provided to the Borrower

                  or any Group Member by the Beneficiary on the security of a

                  Letter of Credit.

 

                  SECURED MONEYS means all money which the Borrower and the

                  Guarantors (whether each of them alone or with another person)

                  is or at any time may become actually or contingently liable

                  to pay to or for the account of an Indemnified Party (whether

                   alone or with another person) for any reason whatever under or

                  in connection with a Transaction Document.

 

                  It includes, without limitation, money by way of principal,

                  interest, fees, costs, indemnities, Guarantees, charges,

                  duties or expenses or payment of liquidated or unliquidated

                  damages under or in connection with a Transaction Document, or

                  as a result of a breach of or default under or in connection

                  with a Transaction Document.

 

                  Where the Borrower or Guarantor would have been liable but for

                  its Liquidation, it will be taken still to be liable.

 

                  A reference to an amount for which a person is contingently

                  liable includes, without limitation, an amount which that

                  person may become actually or contingently liable to pay if a

                  contingency occurs, whether or not that liability will

                  actually arise.

 

                  SECURITY INTEREST includes any mortgage, pledge, lien or

                  charge or any security or preferential interest or arrangement

                  of any kind or any other right of, or arrangement with, any

                  creditor to have its claims satisfied in priority to other

                  creditors with, or from the proceeds of, any asset.

 

                  Without limitation it includes retention of title other than

                   in the ordinary course of day-to-day trading and a deposit of

                  money by way of security but it excludes a charge or lien

                  arising in favour of a Governmental Agency by operation of

                  statute unless there is default in payment of moneys secured

                  by that charge or lien.

 

                  SECURITY TRUSTEE means J.P. Morgan Australia Limited (ABN 52

                  002 888 011).

 

                  SEGMENT means each portion of the accommodation made available

                  under the Cash Advance Facility which has the same Funding

                  Period.

 

<PAGE>

 

                                                                              15

 

                  SENIOR DEBT FACILITY AGREEMENT means the senior debt facility

                  agreement dated 3 June 1996 entered into between the Lenders,

                  the Security Trustee, the Agent, ABN Australasia Limited ABN

                  42 072 664 692 as borrower and the Borrower, American Banknote

                  Pacific Pty Ltd ABN 19 072 977 265, LM Australia, LMPS and

                  American Banknote New Zealand Limited as guarantors (as

                  amended).

 

                  SHARE of a Participant, in respect of a Segment or any

                  principal outstanding under the LC Facility, means the

                  proportion of that Participant's participation in that Segment

                  or principal to the amount of the Segment or principal (such

                  proportion to be determined under clause 2).

 

                  SHAREHOLDERS AGREEMENT means the agreement entitled

                  "Subscription and Shareholders Agreement for ABN Australasia

                  Holdings Pty Limited" dated on or about the date of this

                  agreement between the Borrower, SPV, ABN Australasia Limited

                  ABN 42 072 664 692, Inc. and David Head.

 

                  SPV means LM SPV Pty Limited (ABN 108 316 598).

 

                   STAGE III has the meaning giving to it in the Shareholders

                  Agreement.

 

                  SUBSIDIARY has the meaning given in the Corporations Act but

                  so that:

 

                  (a)       an entity will also be deemed to be a Subsidiary of a

                           company if it is controlled by that company

                           (expressions used in this paragraph have the meanings

                           given for the purposes of Parts 3.6 and 3.7 of the

                           Corporations Act);

 

                  (b)       a trust may be a Subsidiary, for the purposes of

                           which a unit or other beneficial interest will be

                           regarded as a share; and

 

                   (c)       a corporation or trust may be a Subsidiary of a trust

                           if it would have been a Subsidiary if that trust were

                           a corporation.

 

                  SUPPLEMENTAL AGREEMENT means the agreement dated on or around

                  the same date as this agreement between the shareholders of

                  SPV, each Participant, the Borrower, ABN Australasia Limited

                  ABN 42 072 664 692, Inc. and David Head.

 

                   TAX includes any tax, levy, impost, deduction, charge, rate,

                  duty, compulsory loan or withholding which is levied or

                  imposed by a Governmental Agency, and any related interest,

                  penalty, charge, fee or other amount.

 

                  TEST DATE means the last day of each month.

 

                  TOTAL DEBT means all Financial Indebtedness of the Group.

 

                  TRANSACTION DOCUMENT means:

 

                  (a)       this Agreement;

 

                   (b)       each Charge;

 

<PAGE>

 

                                                                              16

 

                  (c)       any Collateral Security;

 

                  (d)       any Guarantor Accession Deed;

 

                  (e)       any Drawdown Notice or any debenture or other

                           certificate or Security Interest issued under a

                           Charge;

 

                  (f)       any Derivative Contract;

 

                  (g)       a document or agreement entered into or provided for

                           the purpose of amending or novating, any of the above

                           including the Deed of Assignment; or

 

                  (h)       any document which the Borrower agrees to be a

                           Transaction Document for the purposes of this

                           Agreement.

 

                  It includes, without limitation, an undertaking by or to a

                  party or its lawyers under or in relation to any of the above.

 

                  UNDRAWN COMMITMENT means the LC Undrawn Commitment and the

                  Cash Advance Undrawn Commitment or where the context so

                  requires, the aggregate of these amounts.

 

                  WORKING CAPITAL ACCOUNT means the account maintained by LM

                  Australia with the Working Capital Account Bank, BSB 084 004

                  and bearing account number 666 208 940.

 

                  WORKING CAPITAL ACCOUNT BANK means National Australia Bank

                  Limited.

 

INTERPRETATION

 

         1.2       Headings are for convenience only and do not affect

                  interpretation. The following rules apply unless the context

                  requires otherwise.

 

                   (a)       The singular includes the plural and the converse.

 

                  (b)       A gender includes all genders.

 

                  (c)       Where a word or phrase is defined, its other

                           grammatical forms have a corresponding meaning.

 

                  (d)       A reference to a person, corporation, trust,

                           partnership, unincorporated body or other entity

                           includes any of the foregoing.

 

                  (e)       A reference to a clause, annexure or schedule is a

                           reference to a clause of, or annexure or schedule to,

                           this Agreement.

 

                  (f)       A reference to a party to this Agreement or another

                            agreement or document includes the party's successors

                           and permitted substitutes or assigns.

 

                  (g)       A reference to legislation or to a provision of

                           legislation includes a modification or re-enactment

                           of it, a legislative provision substituted for it and

                           a regulation or statutory instrument issued under it.

 

<PAGE>

 

                                                                               17

 

                  (h)       A reference to WRITING includes a facsimile

                           transmission and any means of reproducing words in a

                           tangible and permanently visible form.

 

                  (i)       A reference to CONDUCT includes, without limitation,

                           an omission, statement or undertaking, whether or not

                           in writing.

 

                  (j)       All references to DOLLARS and $ are to Australian

                           dollars.

 

                  (k)       Mentioning anything after INCLUDE, INCLUDES or

                           INCLUDING does not limit what else might be included.

 

                  (l)       A reference to an ASSET includes any real or

                           personal, present or future, tangible or intangible

                           property or asset (including Intellectual Property)

                           and any right, interest, revenue or benefit in, under

                           or derived from the property or asset.

 

DETERMINATION, STATEMENT AND CERTIFICATE

 

         1.3       Except where otherwise provided in this Agreement any

                  determination, statement or certificate by the Agent or any

                  Participant or an Authorised Officer of the Agent or any

                  Participant provided for in this Agreement is evidence of the

                  matter stated in it unless the contrary is proved. It binds

                   the parties in the absence of manifest error.

 

DOCUMENT OR AGREEMENT

 

         1.4       A reference to:

 

                  (a)       an AGREEMENT includes a Security Interest, Guarantee,

                           undertaking, deed, agreement or legally enforceable

                           arrangement whether or not in writing; and

 

                  (b)       A DOCUMENT includes an agreement (as so defined) in

                           writing or a certificate, notice, instrument or

                            document.

 

                  A reference to a specific agreement or document includes it as

                  amended, novated, supplemented or replaced from time to time,

                  except to the extent prohibited by this Agreement.

 

REPAYMENT AND PREPAYMENT

 

         1.5       A reference to REPAYMENT or PREPAYMENT of all or part of an

                  amount under the LC Facility is to payment to the Agent of the

                  whole or the relevant portion of the face amount of the

                  relevant Letter of Credit or the reduction, expiry or

                  cancellation of that Letter of Credit (if that Letter of

                  Credit has not been drawn on).

 

PRINCIPAL

 

         1.6       A reference to PRINCIPAL or PRINCIPAL AMOUNT, in relation to

                  an amount under or in respect of the LC Facility, is to the

                  maximum liability of the Participants under any Letter of

                  Credit comprising that amount.

 

TRUST

 

          1.7       Unless the context requires otherwise, a reference to a

                  transaction, asset, act or liability of any nature of the

                  Group Member includes its

 

<PAGE>

 

                                                                               18

 

                  transactions, assets, acts or liabilities as trustee. Where

                  the Group Member incurs an obligation, it incurs that

                  obligation both in its own right and in its capacity as

                   trustee, unless the obligation relates only to an asset which

                  it holds in its own right and not as trustee.

 

CURRENT ACCOUNTING PRACTICE AND ACCOUNTING TERMS

 

         1.8       A reference to CURRENT ACCOUNTING PRACTICE is to accounting

                  principles and practices applying by law or otherwise

                  generally accepted in Australia, consistently applied. Unless

                  otherwise defined, accounting terms should be interpreted in

                  accordance with current accounting practice. When calculating

                  any covenant under clause 15.3, the value of any asset of a

                  Group Member will be its book value unless revalued with the

                  agreement of the Agent.

 

INTERNATIONAL ACCOUNTING STANDARDS

 

         1.9

 

                  (a)       If there is a change in the accounting standards

                           after the date of this agreement resulting from the

                           implementation of the international accounting

                           standards in Australia, then the Borrower must

                           consult with the Participants, on the changes (if

                           any) required to the financial undertakings contained

                           in clause 15.3 (or definitions pertaining to them) to

                           ensure that they remain consistent with the financial

                           undertakings prior such a change.

 

                  (b)       If the Borrower and the Participants cannot agree on

                           the changes a party considers are necessary to the

                           financial undertakings in accordance with clause

                           1.9(a), the accounting standards which applied on the

                           date of this agreement will continue to apply to the

                           financial undertakings contained in clause 15.3.

 

OUTSTANDING

 

         1.10      A reference to an OUTSTANDING Letter of Credit is to a Letter

                  of Credit which has not expired (or which has expired but a

                  draft has been drawn or payment made under it) and for which

                  the Borrower has not provided cash cover under this Agreement

                  or reimbursement in full.

 

DEBENTURE TRUST DEED

 

         1.11      Each Group Member agrees that for the purposes of the

                  Debenture Trust Deed:

 

                  (a)       the Majority Participants shall be the "Majority

                           Stockholders"; and

 

                  (b)       the Transaction Documents shall be the "Transaction

                           Documents",

 

                  as those terms are used in the Debenture Trust Deed.

 

SHAREHOLDERS AGREEMENT

 

         1.12      A term having a defined meaning in the Shareholders Agreement

                  has the same meaning in this agreement. However, in the event

                  of any inconsistency between a defined meaning in the

                   Shareholders

 

<PAGE>

 

                                                                              19

 

                  Agreement and in this agreement, the meaning in this agreement

                  will prevail.

 

2 COMMITMENTS

 

COMMITMENTS

 

          2.1       Subject to this Agreement each Participant agrees with the

                  Borrower to make available its participation in each Segment

                  of the Cash Advance Facility and to participate in the LC

                  Facility. The total principal amount of a Participant's

                  participation in:

 

                  (a)       all outstanding Segments of the Cash Advance Facility

                           will not at any time exceed its Cash Advance

                            Commitment; and

 

                  (b)       the LC Facility will not at any time exceed its LC

                           Commitment.

 

ALLOCATION AMONG PARTICIPANTS

 

         2.2       Each Participant shall participate in each Segment rateably

                   according to its Commitment and in each Letter of Credit,

                  rateably according to its LC Commitment.

 

OBLIGATIONS SEVERAL

 

         2.3       The obligations and rights of each Participant under this

                  Agreement are several and:

 

                  (a)       failure of a Participant to carry out its obligations

                           does not relieve any other Participant of its

                           obligations;

 

                  (b)       no Participant is responsible for the obligations of

                           any other Participant or the Agent; and

 

                  (c)       subject to the Transaction Documents each Participant

                           may separately enforce its rights under any

                           Transaction Document.

 

3 CANCELLATION OF COMMITMENTS

 

DURING AVAILABILITY PERIOD

 

         3.1       On giving not less than 14 Business Days irrevocable notice to

                  the Agent, the Borrower may cancel all or part of the Undrawn

                  Commitments without penalty on the last day of a Funding

                  Period. A partial cancellation must be in a minimum of

                  $1,000,000 and in a whole multiple of $500,000 unless the

                   Agent agrees otherwise.

 

ALLOCATION AMONG PARTICIPANTS

 

         3.2       Any partial cancellation will be applied rateably against the

                  Undrawn Commitment of each Participant. The Agent shall

                  promptly notify each Participant of any notice received under

                  this clause and the amount of that Participant's Commitment

                  which is cancelled.

 

AT END OF AVAILABILITY PERIOD

 

         3.3       At the close of business (Sydney time) on the last day of the

                  Availability Period the Commitments of the Participants will

                  be cancelled.

 

<PAGE>

 

                                                                              20

 

4 PURPOSE

 

CASH ADVANCE FACILITY

 

         4.1       The Borrower may only, subject to the terms of this agreement,

                  use the net proceeds of the Cash Advance Facility to:

 

                  (a)       finance the general working capital (including any

                           overdraft) requirements of the Group in carrying on

                           the Business and the Profit Improvement Plan; and

 

                  (b)       subject to clauses 15.1(k) and 15.1(u), fund new

                           businesses; and

 

                   (c)       provide and pay for capital expenditure for continued

                           operation of the Business in the ordinary course of

                           business;

 

                  (d)       pay or repay the amounts owing under the Senior Debt

                           Facility Agreement,

 

                  and for no other purpose.

 

LC FACILITY

 

         4.2       The Borrower shall use, or shall procure the use by a Group

                  Member of, the net proceeds of the LC Facility with respect

                  to:

 

                  (a)       financing the working capital (including any

                           overdraft) requirements of the Group in carrying on

                           the Business;

 

                  (b)       issuance of performance bonds by any person in

                           relation to obligations of a Group Member; or

 

                  (c)       such other purposes as the Agent (acting on the

                           instructions of the Participants who have agreed in

                           writing to provide any LC Commitments) may agree,

 

                  and for no other purpose.

 

ACKNOWLEDGMENT

 

         4.3       The parties acknowledge that, as at the Effective Date, the

                  Cash Advance Facility has been fully drawn and no further

                  Drawdown Notices under clause 5 of this Agreement may be given

                  by the Borrower to the Agent

 

NZ SALE PROCEEDS

 

         4.4       Notwithstanding clause 4.3, the Borrower may give the Agent a

                  Drawdown Notice for amounts that, in aggregate, do not exceed

                  the amount specified in clause 7.6(d)(iii) ("NZ RETENTION

                  ACCOUNT REDRAW").

 

         4.5       The Borrower must use the proceeds of a NZ Retention Account

                  Redraw for the purposes of:

 

                  (a)       capital or other expenditure relating to the Profit

                           Improvement Program;

 

<PAGE>

 

                                                                               21

 

                  (b)       the buy out of operating Leases existing at the

                           Effective Date; and

 

                  (c)       redundancies.

 

5 DRAWDOWN NOTICES

 

WHEN NOTICE TO BE GIVEN - CASH ADVANCE FACILITY

 

         5.1       Whenever the Borrower wishes to make a drawing under the Cash

                  Advance Facility it shall give to the Agent on behalf of

                  itself and the Guarantors an irrevocable Drawdown Notice

                  substantially in the form of annexure A. That Drawdown Notice

                  must be received by the Agent by 11 am (Sydney time) three

                  Business Days before the proposed Drawdown Date (which must be

                   a Business Day) or on such other day as the Agent (acting on

                  the instructions of the Majority Participants) may agree in

                  writing.

 

WHEN NOTICE TO BE GIVEN - LC FACILITY

 

         5.2       Whenever the Borrower wishes to make a drawing under the LC

                  Facility it shall give to the Agent on behalf of itself and

                  the Guarantors an irrevocable Drawdown Notice substantially in

                  the form of annexure A specifying that the drawing is to be

                  made under the LC Facility. That Drawdown Notice must be

                  received by the Agent by 11 am (Sydney time) three Business

                  Days before the proposed Drawdown Date (which must be a

                   Business Day) or on such other day as the Agent (acting on the

                  instructions of the Majority Participants) may agree in

                  writing.

 

MINIMUM DRAWING

 

         5.3       The Borrower shall ensure that each drawing under the Cash

                  Advance Facility is a minimum of the lesser of $1,000,000 or

                  the Undrawn Commitment, unless the Agent agrees otherwise.

 

NOTIFICATION OF PARTICIPANTS

 

         5.4       The Agent shall give prompt notice to each relevant

                  Participant of the contents of each Drawdown Notice received

                  under this clause 5 and the amount of each Participant's Share

                  of each Segment requested.

 

6 SELECTION OF FUNDING PERIODS

 

         6.1       Subject to this clause, each Funding Period will have a

                  duration of 30, 60 or 90 days.

 

         6.2       A Funding Period is a period notified by the Borrower to the

                  Agent by 11 am on the third Business Day before the last day

                  of the current Funding Period. The first Funding Period will

                  have a duration of 30 days.

 

         6.3       The first Funding Period begins on the Effective Date. Each

                  subsequent Funding Period begins on the day when the preceding

                  Funding Period ends.

 

<PAGE>

 

                                                                              22

 

         6.4       Should a Funding Period end on a day which is not a Business

                   Day, that Funding Period will end on the next Business Day,

                  unless that day is in the following month, in which case the

                  Funding Period will end on, the preceding Business Day.

 

         6.5       No Funding Period may extend beyond the Final Maturity Date.

                  The Borrower shall select Funding Periods for Segments so as

                  to ensure that each Reduction Date for the Cash Advance

                  Facility coincides with the last day of Funding Periods of

                  outstanding Segments of that Facility which have a principal

                  amount not less than the principal amount to be repaid on that

                  day.

 

         6.6       If the Borrower fails to select Funding Periods complying with

                  this clause 6 the Agent may vary any Drawdown Notice to ensure

                  compliance.

 

7 REPAYMENT

 

REPAYMENT - CASH ADVANCE FACILITY

 

         7.1       Subject to the repayments provided for in clause 7.6, the

                  Borrower shall repay the Principal Outstanding under the Cash

                  Advance Facility as follows:

 

                  (a)       on the fourth anniversary of the Effective Date, the

                           higher of 75% of Free Cash Flow and an amount equal

                           to $3,000,000;

 

                  (b)       on 1 October 2008, an amount equal to $1,000,000;

 

                  (c)       on 30 January 2009, the higher of 75% of Free Cash

                            Flow and an amount equal to $2,000,000;

 

                  (d)       the Cash Advance Commitment automatically reduces by

                           amounts repaid under paragraph (a), (b) and (c)

                           above; and

 

                   (e)       the Borrower agrees to repay the balance of the

                           Principal outstanding under the Cash Advance Facility

                           on the Final Maturity Date.

 

REPAYMENT - LC FACILITY

 

         7.2       (a)        The Borrower shall repay the LC Facility in

                           accordance with this Agreement or as otherwise agreed

                           under the LC Facility.

 

                  (b)       The Borrower shall finally repay the Principal

                            Outstanding under the LC Facility on the Final

                           Maturity Date.

 

ALLOCATION AMONG PARTICIPANTS

 

         7.3       Repayments will be applied rateably among the Participants

                  according to their participation in the Principal Outstanding

                  for that Facility.

 

ALLOCATION AMONG SEGMENTS

 

         7.4       All repayments under clauses 7.1 and 7.6 will be applied in

                  reduction of those Segments which the Borrower may specify

                  after consultation with the Agent. To the extent practicable

                  repayments will only be applied against Segments which have

                  Funding Periods which end on the relevant Reduction Date.

 

<PAGE>

 

                                                                               23

 

USE OF FREE CASH FLOW

 

         7.5       The Borrower must apply 75% of Free Cash Flow payable in

                  accordance with clause 7.6 as follows:

 

                  (a)        first, to pay the Capitalised Interest and all other

                           interest payable under this Agreement; and

 

                  (b)       second, to repay amounts owing under the Cash Advance

                           and LC Facility.

 

MANDATORY REPAYMENTS

 

         7.6       The Cash Advance Commitments will reduce rateably:

 

                  (a)       on each 30 January until the third anniversary of the

                           Effective Date, by an amount equal to 75% of Free

                            Cash Flow calculated in accordance with the last

                           paragraph of this clause 7.6.

 

                  (b)       subject to clause 15.1(f), with respect to the sale

                           by any Group member permitted by this Agreement of

                           any asset with a market value equal to or greater

                           than $1,000,000 (other than an asset disposed of in

                           the ordinary course of day-to-day trading), and on

                           the date the purchase price is paid, by an amount

                           equal to the purchase price (or such lesser amount as

                           the Agent, acting on the instructions of the Majority

                            Participants, may agree, with the Participants

                           considering any such request by the Borrower on a

                           non-committal basis based on the commercial and

                           financial performance of the Borrower at the time of

                           the request);

 

                  (c)       with respect to the sale of all or substantially all

                           of the assets of the Group or the sale of all or

                            substantially all of shares in a Group Member, by an

                           amount equal to the proceeds of the sale the

                           Participants are entitled to in accordance with the

                           Shareholders Agreement and the Supplemental

                           Agreement; and

 

                  (d)       with respect to the New Zealand Sale, by an amount

                           equal to the first $1,500,000 of the New Zealand Sale

                           Proceeds. The parties agree that the balance of the

                           New Zealand Sale Proceeds will be used as follows:

 

                           (i)       $700,000 will be retained by the Borrower

                                    and applied to its working capital

                                    requirements;

 

                           (ii)      $1,700,000 will be paid to the Borrower from

                                    the Retention Account and applied to its

                                     working capital requirements; and

 

                           (iii)     $1,000,000 will be retained in the Retention

                                    Account and will be available to the

                                    Borrower to be used in accordance with

                                    clause 4.5; and

 

                           (iv)      any remaining balance of the New Zealand

                                    Sale Proceeds not applied in accordance with

                                     clause

 

<PAGE>

 

                                                                              24

 

                                    7.6(d)(i) to (iii) will be retained by the

                                    Borrower and applied to fund its working

                                    capital requirements.

 

                  If, on any of the dates referred to in paragraph (a), (b),

                  (c), or (d) of clause 7.6 ("each a MANDATORY REPAYMENT DATE"),

                  the aggregate of all outstanding Segments exceeds the

                  aggregate of the Cash Advance Commitments after the reduction

                  has occurred, then the Borrower must repay:

 

                           (i)       in the case of clause 7.6(a), the amount

                                    referred to in that paragraph within 90 days

                                    of that Mandatory Repayment Date; and

 

                           (ii)      in the circumstances referred to in

                                     paragraphs (b), (c) and (d), an amount equal

                                    to the excess on the last day of the next

                                    Funding Period after the relevant Mandatory

                                    Repayment Date.

 

                  The Borrower must give to the Agent within 30 days of the end

                  of each calendar year, an estimate of Free Cash Flow for the

                  12 month period immediately preceding the end of each calendar

                   year based on the management accounts for that period.

 

REPAYMENT

 

         7.7       The Borrower agrees to repay so much of the Principal

                  Outstanding under the Cash Advance Facility in accordance with

                  clauses 7.1 and 7.6. The Borrower agrees to notify to the

                  Agent Funding Periods under clause 6 so that it can make

                  repayments under clause 9.3 which are sufficient to satisfy

                  this repayment obligation.

 

8 PREPAYMENTS

 

VOLUNTARY PREPAYMENTS

 

         8.1       (a)       Subject to this clause, if it gives at least 14

                           Business Days' prior notice to the Agent (who shall

                           promptly notify the Participants) the Borrower may

                           prepay all or part of the Principal Outstanding under

                           the Cash Advance Facility or the LC Facility. The

                           notice is irrevocable. The Borrower shall prepay in

                            accordance with it.

 

                  (b)       Unless the Agent agrees otherwise, prepayment of part

                           only of a Segment or any amount under the LC Facility

                           (but not an amount equal to the Principal Outstanding

                           with respect to the LC Facility if that Principal

                           Outstanding is less than $1,000,000) may only be made

                           in a principal amount of a minimum of $1,000,000.

 

VOLUNTARY PREPAYMENT ON EXPIRY OF FUNDING PERIOD

 

         8.2       (a)       Prepayments under clause 8.1 with respect to the Cash

                           Advance Facil


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