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DEBT PURCHASE AGREEMENT

Purchase and Sale Agreement

DEBT PURCHASE AGREEMENT | Document Parties: Emrise CORP | LLOYDS TSB COMMERCIAL FINANCE LIMITED | PASCALL ELECTRONICS LIMITED You are currently viewing:
This Purchase and Sale Agreement involves

Emrise CORP | LLOYDS TSB COMMERCIAL FINANCE LIMITED | PASCALL ELECTRONICS LIMITED

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Title: DEBT PURCHASE AGREEMENT
Date: 11/14/2005
Industry: Electronic Instr. and Controls     Sector: Technology

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EXHIBIT 10.8

 

 

 

 

 

 

                             DEBT PURCHASE AGREEMENT

 

                                     BETWEEN

 

                      LLOYDS TSB COMMERCIAL FINANCE LIMITED

 

                                       AND

 

                            PASCALL ELECTRONICS LIMITED

 

                                REG. NO. 01316674

 

 

 

 

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                      LLOYDS TSB COMMERCIAL FINANCE LIMITED

                             DEBT PURCHASE AGREEMENT

 

A.        PARTIES

         -------

 

We, LLOYDS TSB COMMERCIAL FINANCE LIMITED of Boston House, The Little Green,

Richmond, Surrey, TW9 1QE registered with number 733011 agree with you, the

party referred to as the Client in the Client Particulars below, to enter into

the following agreement.

 

B.        DATE

         ----

 

This agreement is made on the day the last of us executes it.

 

C.        DEFINED EXPRESSIONS

         -------------------

 

Except where the context otherwise requires, an expression set out in this Debt

Purchase Agreement, including the General and Financial Particulars below, or in

our Standard Terms and Conditions for the Purchase of Debts (the "Conditions")

and which is included in condition 22 (Definitions) is to have the meaning given

to it there. Reference to a clause is to a clause in this document. Reference to

a condition is to a condition appearing in the Conditions which are supplied

with and form an integral part of this agreement and are signed on behalf of

each of us.

 

D.        AGREEMENT

         ---------

 

D.1. During the currency of this Debt Purchase Agreement you agree to sell and

we agree to buy all your Debts which are in existence on the Commencement Date

or which arise after that date from Contracts of Sale with your Customers. Such

sale and purchase shall be upon the terms set out both below and in the

Conditions.

 

D.2. On the Commencement Date you shall deliver to us an analysis in the form

set out at Clause P detailing all Debts (except Non-Notifiable Debts) owed to

you and unpaid on that date. You hereby assign such Debts to us absolutely. The

ownership of any Debt existing at the Commencement Date shall vest in us upon

completion of this Debt Purchase Agreement and the ownership of any Debt arising

after the Commencement Date shall vest in us automatically upon such Debt coming

into existence. Upon a Debt Vesting in us then its Related Rights shall also

automatically vest in us.

 

D.3. If Part I of the Financial Particulars below has been completed, then this

Debt Purchase Agreement shall apply to all Domestic Debts payable in Sterling.

 

D.4. If Part II of the Financial Particulars below has been completed, then this

Debt Purchase Agreement shall apply to:

 

         (i) Non-Sterling Domestic Debts expressed in the Permitted Foreign

         Currencies stated in such Financial Particulars; and/or

 

         (ii) Foreign Debts stated in such Financial Particulars.

 

 

                                      -2-

 

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D.5. You have entered into this Debt Purchase Agreement on the basis that you

have read and understood all of its terms (including the Conditions) and also

have had the prior opportunity to take independent legal advice as to your and

our respective rights and obligations.

 

E.        EXCLUSION OF PRIOR AGREEMENTS

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

 

The terms of this Debt Purchase Agreement (including the Conditions and any

special terms and other terms set out below) are the only terms agreed between

us. They exclude all earlier agreements, warranties and representations, express

or implied, oral or in writing.

 

F.        COMMENCEMENT AND DURATION

         -------------------------

 

This agreement shall begin on the Commencement Date and shall continue for the

Minimum Period. Both are specified in the General Particulars. Thereafter it

shall continue until ended by either of us at any time giving to the other

written notice of not less than the Notice Period, specified in the General

Particulars, to expire at the end of any calendar month after the end of the

Minimum Period. We shall also have the right immediately to terminate this

agreement, by notice to you at any time following a Termination Event.

 

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G.        THE GENERAL PARTICULARS

         -----------------------

 

<S>                                                        <C>

G.1.       Commencement Date                                The later of:

          (See clause F)                                   (i) __________________; or

                                                          (ii) the date on which we shall notify you

                                                           that we are satisfied that the conditions

                                                          precedent set out in clause L below headed

                                                          "Conditions Precedent" have been fulfilled.

 

G.2.       Minimum Period:                                  24 months from the commencement date

          (See clause F)

 

G.3.       Notice Period:                                   3 months

          (See clause F)

 

G.4.       Additional Non Notifiable Debts:                 N/A

          (See Condition 4.1(k))

 

G.5.       Your Payment Terms:                              30 days nett and also some 45 days nett

          (See Condition 14.5(h))

 

G.6.       Arrangement Fee:                                  (pound)1,000 Debenture Charge

          (See Condition 11.1(a))

 

 

                                                 -3-

 

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G.7.       Facility Fee:                                    N/A

          (See Condition 11.1(g))

 

G.8.       Notice of Assignment Provisions:                 No notice of assignment will be given

          (See Conditions 5.2, 5.3, or 5.4,

          6.2(e), 14.4(k) and 14.5(g))

 

G.9.       Funding Limit (see Conditions                    (pound)300,000 in respect of Sterling

          9.2 and 9.4)                                     funds in Use Accounts and the equivalent of

                                                          (pound)600,000 in respect of the total debt

                                                           balances on all Funds in Use Accounts in

                                                          currencies other than Sterling

 

 

H.        FINANCIAL PARTICULARS

         ---------------------

 

         PART I FOR DOMESTIC DEBTS PAYABLE IN STERLING

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

 

H.1.       Initial Payment Percentage:                      90 per cent of the Notified Value of Approved

          (See Conditions 9.2 and 9.4)                     Debts.

 

H.2.       Discount Charge:                                  1.5 per cent above the Base Rate from time to

          (See Conditions 11.1(d), 11.5 and 11.8)          time of Lloyds TSB Bank plc.

 

H.3.       Allowance:                                       2.5 per cent below the Base Rate from time to

          (See Conditions 9.6, 11.6 and 11.8)              time of Lloyds TSB Bank plc.

 

H.4.       Funds Transmission Method:                       BACs/CHAPs

          (See Condition 11.1(e))

 

H.5.       Funding Limit:                                    (pound)900,000

          (See Conditions 9.2 and 9.4)

 

H.6.       Service Charge:                                  0.15%

          (See Condition 11.1(b))

 

H.7.       Minimum Annual Service Charge:                   (pound)7,500

          (See Condition 11.1(c))

 

 

                                                 -4-

 

<PAGE>

 

H.8.       Monitoring Fee:                                  N/A

          (See Condition 11.1(f))

 

H.9.       Date on which an unpaid Approved Debt            4 calendar months after the end of the month

          will automatically become a Disapproved          in which the relevant invoice is dated.

          Debt (and any initial payment will have

          to be returned).

          (Condition 7.2(g))

 

 

                                                  -5-

</TABLE>

 

<PAGE>

 

<TABLE>

I.        FINANCIAL PARTICULARS PART II

         --------------------------


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