Letter of Hypothecation by way of Floating Charge

Letter of Hypothecation by way of FLOATING CHARGE

To

PRIME BANK LIMITED

Narayangonj Branch.

Tanbazar

Narayangonj

Head Office

Adamjee Court

Annex Building- 2,

119-120 Motijheel C/A,

Dhaka- 1000;

(hereinafter referred to as the ‘Bank’ which expression shall where the context so admits, mean and include its representatives, executors, administrators, successors-in-interest and assignees).

Sir,

In consideration of the BANK’s granting us an aggregate credit facilities of Loan Facility of Tk.95,50,000.00 (Taka ninety five lac fifty thousand) only in the form of (i) Letter of Credit (Sight) limit of Tk.95,50,000.00 (Taka ninety five lac fifty thousand) only Subsequent Lease Finance limit of Tk.48,00,000.00 (Taka forty eighty lac) only (hereinafter referred to as the ‘Loan’) vide its Sanction Letter No. Prime/NGN/CR/2009/485A dated 05.03.2009 (hereafter referred to as the Sanction Letter), executed between the BANK and ourselves; we

X Textile & Garments Limited,

Registered Address

Al-Jaynal Plaza (7th Floor)

56, S.M. Maleh Road, Narayangonj

Factory Address:

Plot No. B-57, BSCIC Industrial Estate

Enayetnagar, Fatulla

Narayangonj

a private company limited by shares incorporated under the Companies Act, 1994, do hereby HYPOTHECATE to the BANK by way of floating charge with full title guarantee all our movable assets both present and future including but not limited to  machinery (morefully in Annex-1), equipment, furniture & fixtures, stock, raw materials, book debts, bills receivable, goodwill, undertaking and all other assets both tangible and intangible and all documents of title and all contracts and other documents whatsoever relating to such assets, and all insurance and proceeds of insurance thereof in which we may from time to time have an interest (all such assets, properties and rights shall hereinafter be called “the Hypothecated Property” when referred to collectively) as a  continuing  security  for  repayment of  the  said

Loan on terms and conditions contained in the Sanction Letter including interests, fees and other charges in terms of Sanction Letter, and all legal and other costs, charges and expenses incidental to this security (all such monies, obligations and liabilities aforesaid being together referred to as the ‘Secured Liabilities’) and to the enforcement thereof and this security is and shall remain as security for the Secured Liabilities and this security shall be kept in deposit with the BANK and the same shall be enforceable by the BANK.

If any of the events or circumstances specified in the following paragraph occurs (whether or not caused by any reason outside or control) or at any time after the BANK shall have demanded the payment or discharge of all or any part of the Secured Liabilities, the Floating Charge created by these presents shall be converted into a specific charge, and the Bank may, without any authority from us or any other person, sell, assign or otherwise dispose of all or any part of the Hypothecated Property and/or transfer or negotiate any and all documents of title relating to the Hypothecated Property at such times, in such manner and generally on such terms and conditions and for such consideration (whether payable or deliverable immediately or by installments) as the BANK in its absolute discretion thinks fit without being under any responsibility to us for the price obtained thereby. The BANK may apply the proceeds of any such disposal in or towards the discharge of such of the Secured Liabilities whether or not then due and payable and in such order as the BANK may from time to time conclusively determine. If such proceeds are insufficient for such purpose, we hereby undertake immediately to make good such deficiency.

The events and circumstances referred to in the preceding paragraph are as follows:

(a)                we fail to pay or discharge any of the Secured Liabilities when due or in the case of amounts payable on demand, when demanded by the Bank; or

(b)                we default in the due performance of any undertaking or any other obligation under the Sanction Letter, this deed of floating charge or any other Security Document to which we are a party; or

(c)                any event of default, termination event or cancellation event (howsoever described) occurs under any Security Document or other instrument evidencing or constituting the terms and conditions of the arrangements between the BANK and us relating to Secured Liabilities; or

(d)                any legal proceedings are commenced or threatened in respect of any part or all of the Hypothecated Property which could or might involve the detention or seizure of all or any part of the Hypothecated Property or the granting of any attachment or charging order in respect thereof or otherwise prejudice the BANK’s right in respect of the same; or

(e)  the happeni

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