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|Share Purchase Agreement

Galen Holdings PLC
And
Clinical Trial Services Limited                                                                      
|                                                                                                                                                      
|for the sale and purchase of the whole of the share capital of Gaelta Research and Development Limited, a subsidiary undertaking of Galen Holdings PLC | 
|8 May 2002                                                                                                                                            



CONTENTS

CLAUSE	PAGE





2.	SALE AND PURCHASE

3.	CONDITIONS

4.	PERIOD TO COMPLETION

5.	ADJUSTMENT TO NET ASSET VALUE AND PREPARATION OF ACCOUNTS

6.	COMPLETION

7.	FUTURE TRADING AND TRADE ENQUIRIES

8.	WARRANTIES AND INDEMNITIES

9.	PROTECTION OF GOODWILL

10.	CONFIDENTIAL INFORMATION

11.	ANNOUNCEMENTS, ETC.

12.	ASSIGNMENT

13.	COSTS

14.	ENTIRE AGREEMENT

15.	WAIVER, AMENDMENT

16.	FURTHER ASSURANCE

17.	NOTICES

18.	COUNTERPARTS

19.	GOVERNING LAW AND JURISDICTION

20.	INVALIDITY

21.	THIRD PARTY RIGHTS

22.	GENERAL



SCHEDULE 1

Particulars relating to the Companies

SCHEDULE 2A

Pro Forma Completion Accounts and Statement

Consolidated profit and loss account of Gaelta and CTS Analytical

Profit for the financial period

Dividends

Consolidated balance sheet of CTS Analytical and Gaelta at 31 May 2002

SCHEDULE 2B

Accounting Policies and Procedures for the Completion Accounts

SCHEDULE 3

Warranties

SCHEDULE 4

The Properties

SCHEDULE 5

Managers

SCHEDULE 6

The Reorganisation

SCHEDULE 7

Action Pending Completion

SCHEDULE 8

Licence







THIS AGREEMENT is made on 8 May 2002



BETWEEN:



(1)	CLINICAL TRIAL SERVICES LIMITED whose registered office is at Units 7-9, Seagoe Industrial Estate, Craigavon, Co Armagh, Northern Ireland (the "Buyer"); and



(2)	GALEN HOLDINGS PLC (No. NI25836) whose registered office is at 	Unit 22,  Seagoe Industrial Estate, Craigavon, Co Armagh, Northern Ireland BT63 5UA (the "Seller").



RECITALS



(A)	The Seller is the ultimate parent of the Companies (as hereinafter defined) and as ultimate beneficial owner of the Shares (as hereinafter defined) is able to procure the transfer of the Shares.



(B)	The Seller has agreed to sell, and the Buyer has agreed to purchase, the legal and beneficial interest in the Shares, being the whole issued share capital of Gaelta (as hereinafter defined), together with its wholly owned subsidiary, CTS Analytical (as hereinafter defined).



THE PARTIES AGREE AS FOLLOWS:



1. INTERPRETATION
2. The following words and expressions shall, unless the context otherwise requires, have the following meanings:
3. The words and expressions defined in the schedules hereto shall have the meanings set out therein.
4. References to the parties hereto include their respective permitted assignees and in the case of individuals their respective successors in title, personal representatives, heirs and estates and references to the masculine gender shall include the feminine and vice versa.
5. References to statutes or statutory provisions include references to any orders or regulations made thereunder and references to any statute, provision, order or regulation include references to that statute, provision, order or regulation as re-enacted from time to time before the date hereof (subject as otherwise expressly provided herein) and to any previous statute, statutory provision, order or regulation amended, modified, re-enacted or replaced by such statute, provision, order or regulation before the date hereof.
6. References to persons shall include bodies corporate and unincorporated, associations, partnerships and individuals.
7. Headings to clauses and paragraphs are for information only and shall not form part of the operative provisions of this agreement and shall be ignored in construing the same.
8. References to recitals, clauses or schedules are to recitals to, clauses of and schedules to this agreement.
9. The recitals, the schedules and documents in the Agreed Form are part of the operative provisions of this agreement and references to this agreement shall, unless otherwise expressly stated, include references to the recitals, the schedules and documents in the Agreed Form.
10. To the extent that any documents in the Agreed Form or any Transaction Documents refer to any currency which is not pounds sterling, as a basis on which liability should be determined the exchange rate to be used shall be the London Interbank Bid Rate for such currency at noon Greenwich Mean Time:
11. on the date on which any claim arose solely for the purpose of determining whether or not the Buyer may affect a claim under the provisions of clauses 8.7 to 8.9 (inclusive) of this agreement; and/or
12. on the date of which any claim was settled for the purposes of agreeing the extent of the Seller's liability hereunder.
13. SALE AND PURCHASE
14. Upon the terms and subject to the conditions of this agreement, the Seller shall sell, or procure the sale of the Shares, together with all dividends declared after 31 May 2002, to the Buyer, with effect from Completion free from any Encumbrances and together with all accrued benefits and rights attaching thereto.
15. The Seller waives or agrees to procure the waiver of any rights or restrictions conferred upon it or any other person which may exist in relation to the Shares whether under the articles of association of Gaelta or CTS Analytical.
16. The consideration for the sale and purchase of the Shares shall (subject to adjustment in accordance with clauses 2 and 5 of this agreement) be the net total of L65 million pounds sterling as adjusted by Total Net Debt and Intra-Group Indebtedness (the "Consideration").
17. One business day prior to the Completion Date, the Seller (without liability) shall provide to the Buyer a written estimate, together with such evidence (if any) as it may have in support, of the Debt, the Cash, the Intra-Group Receivables and the Intra-Group Payables, in each case, as at the close of business on the Completion Date.
18. On Completion, the Buyer shall procure a payment to the Seller in cash for value on the Completion Date by wire transfer of immediately available funds to the Seller's Solicitor's client account the net total of:
19. L65 million pounds sterling;  and
20. the amount of Estimated Total Net Debt; and
21. the amount of Estimated Intra-Group Indebtedness.
22. On Completion if the Estimated Intra-Group Indebtedness is negative the Buyer shall procure for value on the Completion Date the payment by the Group of the Estimated Intra-Group Indebtedness.  On Completion if the Estimated Intra-Group Indebtedness is positive the Seller shall procure for value on the Completion Date the payment by the Seller's Group of the Estimated Intra-Group Indebtedness.
23. If the net total of the Debt and Cash ("the Aggregate Amount") is less than nil, then to the extent that the same has not been satisfied at Completion by the adjustment at 2.5(b) above, the Seller shall make a payment to the Buyer (such payment being the "Adjustment Payment" for the purposes of this clause) together with interest on the amount to be paid at the Agreed Rate from time to time from Completion until the date of actual payment, of the amount equal to the deficit within five business days of the agreement or determination in accordance with clause 5 of this agreement of the Cash and Debt in the Statement. The Adjustment Payment shall be treated as a reduction in the Consideration and shall be paid by means of telegraphic transfer of immediately available funds to the Buyer's Account.
24. If the net total of the Debt and Cash ("the Aggregate Amount") is less than nil, then to the extent that the same has  been more than satisfied at Completion by the adjustment at 2.5(b) above , the  Buyer shall make a payment to the  Seller (such payment being the "Adjustment Payment" for the purposes of this clause) together with interest on the amount to be paid at the Agreed Rate from time to time from Completion until the date of actual payment, of the amount equal to the deficit within five business days of the agreement or determination in accordance with clause 5 of this agreement of the Cash and Debt in the Statement. The Adjustment Payment shall be treated as a reduction in the Consideration and shall be paid by means of telegraphic transfer of immediately available funds to the Buyer's Account.
25. If the net total of the Debt and Cash ("the Aggregate Amount") is greater than nil, to the extent that the same has not been satisfied at Completion by the adjustment in 2.5(b) above, the Buyer shall repay the amount of excess Cash to the Seller within five business days of the determination in accordance with clause 5 of this agreement of the Cash and Debt in the Statement, by means of telegraphic transfer of immediately available funds to the Seller's Account and for the avoidance of doubt, the repayment of any Cash amount by the Buyer to the Seller shall be treated as an increase in the Consideration.
26. If the net total of the Debt and Cash ("the Aggregate Amount") is greater than nil, to the extent that the same has  been more than satisfied at Completion by the adjustment in 2.5(b) above, the Seller shall repay the amount of excess Cash to the Buyer within five business days of the determination in accordance with clause 5 of this agreement of the Cash and Debt in the Statement, by means of telegraphic transfer of immediately available funds to the Seller's Account and for the avoidance of doubt, the repayment of any Cash amount by the Buyer to the Seller shall be treated as an increase in the Consideration.
27. In the event that the Intra-Group Payables exceed the Intra-Group Receivables, if and to the extent the net amount of the Intra-Group Payables less the Intra-Group Receivables is greater than the net amount of the Estimated Intra-Group Payables less the Estimated Intra-Group Receivables, the Buyer shall procure the payment by the relevant members of the Group (or will pay itself as agent for the relevant members of the Group) an amount equal to the difference between the two sums by way of telegraphic transfer to the Seller's Account in discharge of the net amounts due to the relevant members of the Seller's Group (together with interest thereon at the Agreed Rate for the period from the Completion Date to the actual payment date) against and only at such time as payment is made by the Seller to the Buyer by way of telegraphic transfer to the Buyer's Account of an amount equal thereto (which latter payment shall take effect as  an adjustment to the Consideration paid pursuant to clause 2.3);
28. In the event that the Intra-Group Payables exceed the Intra-Group Receivables, if and to the extent the net amount of the Intra-Group Payables less the Intra-Group Receivables is less than the net amount of the Estimated Intra-Group Payables less the Estimated Intra-Group Receivables, the Seller shall procure the payment by the relevant members of the Seller's Group (or will pay itself as agent for the relevant members of the Seller's Group) an amount equal to the difference between the two sums by way of telegraphic transfer to the Buyer's Account in discharge of the net amounts due to the relevant members of the Group (together with interest thereon at the Agreed Rate for the period from the Completion Date to the actual payment  date) against and only at such time as payment is made by the Buyer to the Seller by way of telegraphic transfer to the Seller's Account of an amount equal thereto (which latter payment shall take effect as an adjustment to the Consideration paid pursuant to clause 2.3);
29. In the event that the Intra-Group Receivables exceed the Intra-Group Payables, if and to the extent the net amount of the Intra-Group Receivables less the Intra-Group Payables exceed the net amount of the Estimated Intra-Group Receivables less the Estimated Intra-Group Payables, the Seller shall procure the payment by the relevant members of the Seller's Group (or will pay itself as agent for the relevant members of the Seller's Group) an amount equal to the difference between the two sums by way of telegraphic transfer to the Buyer's Account in discharge of the net amounts due to the relevant members of the Group (together with interest thereon at the Agreed Rate for the period from the Completion Date to the actual payment date) against and only at such time as payment is made by the Buyer to the Seller by way of telegraphic transfer to the Seller's Account of an amount equal thereto (which latter payment shall take effect as an adjustment to the Consideration paid pursuant to clause 2.3);
30. In the event that the Intra-Group Receivables exceed the Intra-Group Payables, if and to the extent the net amount of the Intra-Group Receivables less the Intra-Group Payables is less than the net amount of the Estimated Intra-Group Receivables less the Estimated Intra-Group Payables, the Buyer shall procure the payment by the relevant members of the Group (or will pay itself as agent for the relevant members of the Group) an amount equal to the difference between the two sums by way of telegraphic transfer to the Seller's Account in discharge of the net amounts due to the relevant members of the Seller's Group (together with interest thereon at the Agreed Rate for the period from the Completion Date to the actual payment date) against and only at such time as payment is made by the Seller to the Buyer by way of telegraphic transfer to the Buyer's Account of an amount equal thereto (which latter payment shall take effect as an adjustment to the Consideration paid pursuant to clause 2.3).
31. CONDITIONS
32. Completion is conditional upon the fulfilment of each of the Conditions as follows:
33. the Circular (containing a recommendation to vote in favour of the Resolution from the board of the Seller) being duly despatched to the shareholders of the Seller following the signing of this agreement by the parties and the Resolution having been duly passed without amendment; and
34. all requisite regulatory consents and clearances having been received and all waiting periods having expired or having been terminated (as the case may be) in respect of the proposed sale of the CTS Business without action on the part of the relevant regulatory authorities to challenge the transaction in a court of competent jurisdiction.
35. The Seller shall not waive Condition (a) in whole or in part.  Neither party may waive Condition (b) in whole or in part unless otherwise agreed between the parties in writing.
36. The Seller undertakes to use all reasonable endeavours to procure the fulfilment of the Conditions set out in clauses 3.1 and the Buyer undertakes to use all reasonable endeavours to procure the fulfilment of the Condition set out in clause 3.1(b) by 31 May 2002 (or such later date as shall be agreed in writing between the parties).
37. If both Conditions (save for those compliance with which has been waived in accordance with the terms of this agreement) have not been fulfilled on or before 30 June 2002 (or such later date as shall be agreed in writing between the parties) this agreement shall terminate with effect from that date.
38. If this agreement terminates in accordance with clause 3.4 then the obligations of the parties shall automatically terminate and shall be of no further force and effect except for the provisions of clauses 10-15 (inclusive) and 19-22 (inclusive) hereof which shall remain in full force and effect and there shall be no liability on the part of any of the parties hereto.
39. The Seller and the Buyer shall keep the other advised of the progress towards the satisfaction of their obligations under clause 3.
40. PERIOD TO COMPLETION
41. The Seller undertakes with the Buyer to use all reasonable endeavours to procure that each Company shalloperate the CTS Business and activities in their ordinary course between today's date and the Completion Date (and in particular shall comply with the undertakings set out in schedule 7 of this agreement), except as otherwise contemplated by the Intellectual Property Agreement.
42. Pending Completion the Buyer and any person authorised by it as its agent shall be given reasonable access to the Properties and to all the books and records of each Company and the directors and employees of each Company shall be instructed to give all such information and explanations as the Buyer or any such person may reasonably request provided that such information relates directly to the proposed transactions to be effected under the terms of this agreement.  Any such inspection or investigation shall be conducted at reasonable times, on prior notice, and under such circumstances as the Seller may reasonably impose.
43. ADJUSTMENT TO NET ASSET VALUE AND PREPARATION OF ACCOUNTS
44. The Buyer and the Seller shall procure that, promptly after Completion, the Accounts, the Completion Accounts together with the statement (the "Statement") of the Net Asset Value, the Debt, the Cash, the Intra-Group Payables, the Intra-Group Receivables and the Non-CTS Tax Receivables as at Completion, are prepared in accordance with the provisions of this clause 5 and, in respect of the Completion Accounts and the Statement, in the form set out in schedule 2A hereto.  The Accounts, Completion Accounts and the Statement shall be prepared in the form set out in and on the basis of the accounting policies and procedures set out in this clause 5 and in schedule 2.  The Buyer shall use its reasonable endeavours to secure compliance with clause 5 and schedule 2 by the Buyer's Accountants and the Seller shall use its reasonable endeavours to secure compliance with this clause 5 and schedule 2 by the Seller's Accountants.
45. The parties hereto shall jointly arrange for the Accounts, the Completion Accounts and the Statement to be prepared by the Buyer's Accountants in conjunction with the Companies and the Seller's Accountants in order that such draft Accounts, Completion Accounts and Statement shall be delivered to the Seller within 90 days of Completion.  The cost of preparation of the Accounts, the Completion Accounts and the Statement shall be borne equally by the Seller and the Buyer.
46. The Seller shall notify the Buyer in writing within 30 days of receipt of the Completion Accounts and the Statement whether or not it accepts them for the purposes of this agreement.
47. If the Seller notifies the Buyer that it does not accept such draft Completion Accounts and Statement:



1. the Seller and the Seller's Accountants shall, at the same time, set out in a notice in writing their reasons for such non-acceptance and specify the adjustments which, in their opinion, should be made to the draft Completion Accounts and the Statement in order to comply with the requirements of this agreement (and in particular clause 5 and schedule 2 hereof) and deliver a copy of such notice to the Seller; and
2. the parties shall use all reasonable endeavours to meet and discuss the objections of the Seller and to reach agreement upon the adjustments (if any) required to be made to the draft Completion Accounts and the Statement and will provide each other with such information and explanations and access to working papers as may be reasonably and properly required by the other for this purpose.



1. If the Seller is satisfied with the draft Completion Accounts and Statement (either as originally submitted or after adjustments agreed between the Seller and the Buyer) or if the Seller fails to notify the Buyer of its non-acceptance of the draft Completion Accounts and Statement within the 30 business day period referred to in clause 5.3 (or such time period as has been agreed between the parties), then the draft Completion Accounts and Statement (incorporating any agreed adjustments) shall constitute the Completion Accounts and the Statement respectively for the purposes of this agreement.
2. If the Buyer and the Seller do not reach agreement within 10 business days of the Seller's notice of non-acceptance pursuant to clause 5.4 then the matters in dispute and in respect of which details have been provided by the Seller to the Buyer at the time that it notified the Buyer that it does not accept the draft Completion Accounts in accordance with clause 5.4(a) shall be referred, on the application of either party, for determination by an independent firm of internationally recognised chartered accountants to be agreed upon by the Seller and the Buyer or, failing agreement, to be selected, on the application of either the Seller or the Buyer, by the President for the time being of the Ulster Branch of the Institute of Chartered Accountants in Ireland or his duly appointed deputy. The following provisions shall apply to such determination:



1. the Buyer and/or the Buyer's Accountants and the Seller and/or the Seller's Accountants shall each promptly prepare a written statement on the matters in dispute which (together with the relevant documents) shall be submitted to such independent firm for determination;
2. in giving such determination, the firm shall state what adjustments (if any) are necessary to the draft Completion Accounts and Statement in respect of the matters in dispute in order to comply with the requirements of this agreement (and in particular clause 5 and schedule 2 hereof) and shall give its reasons therefor and shall make such determination as soon as reasonably practicable after its appointment and in any event by not later than 30 days after its appointment;
3. any such firm shall act as an expert (and not as an arbitrator and the Arbitration (Northern Ireland) Order 1996 shall not apply) in making any such determination which shall be final and binding on the parties hereto (in the absence of manifest error); and
4. each party shall bear the costs and expenses of all counsel and other advisers, witnesses and employees retained by it and the costs and the expenses of the independent firm of accountants shall be borne between the Seller and the Buyer in such proportions as the firm shall in its discretion determine or, in the absence of any such determination, equally between the Seller and the Buyer.



1. When the Seller and the Buyer reach (or pursuant to clause 5.5 are deemed to reach) agreement on the Completion Accounts and the Statement or when the Completion Accounts and the Statement are finally determined at any stage in accordance with the procedures set out in this clause 5:



1. the Completion Accounts and the Statement as so agreed or determined shall be the Completion Accounts and the Statement for the purposes of this agreement and shall be final and binding on the parties; and
2. the Net Asset Value, the Debt, the Cash, the Intra-Group Payables and the Intra-Group Receivables (in each case as at the close of business on the Completion Date) shall be as set out in the Statement.



1. Subject to any rule of law or any regulatory body or any provision of any contract or arrangement entered into prior to the date of this agreement to the contrary, the Seller shall procure that each member of the Seller's Group shall, and the Buyer shall procure that the Group shall, promptly provide each other, their advisers, and the independent firm of chartered accountants appointed pursuant to clause 5.6 to determine the Completion Accounts and the Statement and the Buyer's Accountants and the Seller's Accountants with all information (in their respective possession or control) relating to the operations of the Seller's Group and/or the Group, as the case may be, including access at all reasonable times to all Seller's Group and Group employees, books and records, and all co-operation and assistance, as may in any such case be reasonably required to:



1. enable the production of the Completion Accounts and the Statement; and
2. enable any independent firm of chartered accountants appointed pursuant to clause 5.6 to determine the Completion Accounts and the Statement.



The Seller and the Buyer hereby authorise each other, their respective advisers and the independent firm of chartered accountants appointed pursuant to clause 5.6 to take copies of all information which they have agreed to provide under clause 5.6.



1. If the Net Asset Value as at Completion, as determined in accordance with this clause 5, is less than the Agreed Net Asset Value, then the Seller shall make a payment to the Buyer (such payment being the "Final Payment"), together with interest on the amount to be paid at the Agreed Rate from time to time from Completion until the date of actual payment, of an amount equal to the difference between the Net Asset Value as at Completion and the Agreed Net Asset Value, within five business days of the agreement or determination of the Completion Accounts in accordance with this clause 5.  The Final Payment shall be treated as a reduction in the Consideration and shall be paid by means of telegraphic transfer of immediately available funds to the Buyer's Account.
2. For the avoidance of doubt, if the Net Asset Value at Completion, as determined in accordance with this clause 5 and schedule 2 hereto, is more than the Agreed Net Asset Value, the Buyer shall not be required to make any further payment to the Seller in respect of the difference between the Net Asset Value and the Agreed Net Asset Value.
3. The Buyer undertakes to use all reasonable endeavours to (and the Seller undertakes to use all reasonable endeavours to assist the Buyer to) file the Accounts with the registrar of companies within 120 days of the Completion Date.



1. COMPLETION
2. Completion shall take place at the registered office of the Seller (or at such other location as the Seller and Buyer shall agree) on the Completion Date.
3. On Completion, the Seller shall deliver or procure the delivery to the Buyer or the Company:
4. transfers in common form relating to all the Shares duly executed in favour of the Buyer (or as it may direct) and in relation to all the issued shares in each Company;
5. share certificates relating to the Shares;
6. resignations in the Agreed Form duly executed as deeds of Dr. John A. King, Mr. R. Geoffrey Elliott, Mr. Allyn Keown, Mr. James McKelvey and Mr. Ken Ross being all the directors of CTS Analytical from their offices as director and from Robert Whiteford as Secretary and containing a confirmation that they have no claims (whether statutory, contractual or otherwise) against CTS Analytical for compensation for loss of office or termination of employment or for unpaid remuneration or otherwise together with delivery to the Buyer of all property of CTS Analytical in their possession or under their control;
7. resignations in the Agreed Form duly executed as deeds of Dr. John A. King and Mr. R. Geoffrey Elliott being all the directors of Gaelta from their offices as director and from Mr. R. Geoffrey Elliott as Secretary and containing a confirmation that they have no claims (whether statutory, contractual or otherwise) against Gaelta for compensation for loss of office or termination of employment or for unpaid remuneration or otherwise together with delivery to the Buyer of all property of Gaelta in their possession or under their control;
8. the common seals, certificates of incorporation and statutory books, share certificate books and cheque books of each of Gaelta and CTS Analytical;
9. the Tax Deed duly executed by the Seller;
10. to the extent not in the possession of Gaelta and/or CTS Analytical all books of account or references as to customers and/or suppliers and other records exclusively relating to the CTS Business;
11. to the extent not in the possession of Gaelta and/or CTS Analytical all Permits and such contracts, deeds or other documents (including assignments of any such licences which relate exclusively to the CTS Business);
12. written confirmation, in the Agreed Form, from the Seller that there are no liabilities whatsoever (actual or contingent) which may be owing from any of the Companies to the Seller's Group except those arising in the ordinary course of trade and the L11 million pounds sterling owed by CTS Analytical Limited to the Seller;
13. an executed counterpart of the Licence if required under the provisions of clause 22.3 hereto;
14. an executed counterpart of the Intellectual Property Agreement and of the Computer Software Assignment Agreement;
15. an executed counterpart of the Transitional Services Agreement; and
16. executed Reorganisation Documents as listed in schedule 6 of this agreement.
17. At or prior to Completion (and prior to the taking effect of the resignations of the directors and secretary referred to in clause 6.2(c) above) the Seller shall procure the passing of board resolutions of CTS Analytical:
18. appointing Dr. Allen J. McClay, Alan Armstrong and Stephen Campbell as directors of CTS Analytical;
19. appointing Heather Stevenson as company secretary of CTS Analytical;
20. revoking any existing mandates to bankers and giving authority in favour of the directors appointed under clause 6.3(a) above or such other persons as the Buyer may nominate to operate the bank accounts thereof;
21. resolving that the registered office of CTS Analytical be changed to Units 7-9, Seagoe Industrial Estate, Craigavon, Northern Ireland; and
22. resolving that the current financial year of CTS Analytical be shortened to end on the Completion Date and further resolving to instruct the auditors of CTS Analytical (which shall be the Buyer's Accountants) to prepare audited accounts for the period commencing the day following the Accounts Date and ending on the Completion Date.
23. At or prior to Completion (and prior to the taking effect of the resignations of the directors and secretary referred to in clause 6.2(d) above) the Seller shall procure the passing of board resolutions of Gaelta:
24. sanctioning for registration (subject where necessary to due stamping) the transfers in respect of the Shares;
25. authorising the delivery to the Buyer of share certificates in respect of the Shares;
26. appointing Dr. Allen J. McClay, Alan Armstrong and Stephen Campbell as directors of Gaelta;
27. appointing Heather Stevenson as company secretary of Gaelta;
28. revoking any existing mandates to bankers and giving authority in favour of the directors appointed under clause 6.4(c) above or such other persons as the Buyer may nominate to operate the bank accounts thereof;
29. resolving that the registered office of Gaelta be changed to Units 7-9, Seagoe Industrial Estate, Craigavon, Northern Ireland; and
30. resolving that the current financial year of Gaelta be shortened to end on the Completion Date and further resolving to instruct the auditors of Gaelta (who shall be the Buyer's Accountants) to prepare audited accounts for the period commencing the day following the Accounts Date and ending on the Completion Date.
31. The Seller shall procure that at Completion each Company is released from any Encumbrance given or incurred by it which relates in whole or in part to debts or other liabilities or obligations of any person.
32. Upon compliance by the Seller with the provisions of clauses 6.2, 6.3, 6.4 and 6.5 the Buyer shall deliver to the Seller:
33. a counterpart of the Tax Deed duly executed;
34. an executed counterpart of the Licence if required under the provisions of clause 22.3 hereto; and
35. a duly executed counterpart of the Transitional Services Agreement.
36. At or prior to Completion:
37. the Seller shall pass (or procure the passing of) written resolutions (which shall include amending the memorandum of association of each Company to include an express power to give financial assistance and to broaden the power to give guarantees and to disapply Regulation 10 of Table A to the Companies Act (Northern Ireland) 1960 and to make such other amendments to the memoranda of association of each Company as the Buyer reasonably requests) in the Agreed Form of the shareholders of Gaelta and CTS Analytical approving the financial assistance (within the meaning of Article 161 of the Companies (Northern Ireland) Order 1986) to be given by Gaelta and CTS Analytical in connection with the acquisition by the Buyer of the Shares arising from the arrangements described in the Bank Facility Letter; and
38. the Buyer shall procure the compliance by Gaelta and CTS Analytical with the remaining requirements of Articles 165 to 168 of the Companies (Northern Ireland) Order 1986 in connection with the financial assistance referred to in clause 6.7(a).
39. If any of the obligations of the Seller or the Buyer are not complied with on Completion whichever of the Buyer or the Seller is not in default of their obligations under this agreement may:
40. defer Completion to a date not more than one month after Completion should have taken place but for the said default (and so that the provisions of this clause 6, apart from this clause 6.8(a), shall apply to Completion as so deferred); or
41. proceed to Completion so far as practicable (without prejudice to its rights hereunder); or
42. terminate this agreement which shall be of no further force and effect except for the provisions of clauses 10-15 (inclusive) and 19-22 (inclusive) hereof which shall remain in full force and effect,
43. The Seller acknowledges that, immediately following Completion until such time as the transfer(s) of the Shares have been registered in the register of members of Gaelta, the Seller will hold the Shares registered in its name on trust for and as nominee for the Buyer or its nominees and undertakes to hold all dividends and distributions and exercise all voting rights available in respect of the Shares in accordance with the directions of the Buyer or its nominees and if the Seller is in breach of the undertakings contained in this clause the Seller irrevocably authorises the Buyer to appoint some person or persons to execute all instruments or proxies (including consents to short notice) or other documents which the Buyer or its nominees may reasonably require and which may be necessary to enable the Buyer or its nominees to attend and vote at general meetings of Gaelta and/or CTS Analytical, whichever shall be relevant, and to do any thing or things necessary to give effect to the rights contained in this clause.
44. The Buyer acknowledges and agrees on behalf of itself and each member of the Buyer's Group that nothing in this agreement shall operate as an agreement to transfer any right, title or interest in the name or mark "Galen" or in any name or mark which includes the name or mark "Galen" or in any name or mark which consists of or includes or is confusingly similar to the name or mark "Galen" in translational or transliteral form or otherwise (together, the "Galen Marks"), save for any right title or interest in the name or mark "Technigal";
45. If any documentation (whether in written form or held by any electronic means) provided or required to be provided to the Buyer pursuant to this clause 6 or otherwise on transfer of the Shares bears any Galen Mark, the Buyer shall be required to procure that no such documentation shall be used in any public manner and, to the extent possible without breaching the terms of this agreement or any requirement of law or regulation and subject to clause 6.13, the Buyer shall procure the destruction of any existing documentation bearing the Galen Marks or any of them, including invoicing and general stationery and similar types of documentation.
46. Subject to clause 6.11, the Buyer agrees that for a period of at least six years from Completion it will cause the Companies to retain all documents in their possession at the Completion Date and will provide the Seller with copies of such documents upon the Seller's reasonable request provided that the Seller shall provide to the Buyer for the cost of the same.  The Seller agrees that for a period of at least six years from Completion it will retain all documents in its possession at the Completion Date relating to the CTS Business and will provide the Buyer with copies of such documents upon the Buyer's reasonable request provided that the Buyer shall provide to the Seller for the cost of the same.  The provisions of clause 10 shall apply to any information provided under this clause if such information or documentation comprises Confidential Information.
47. On or as soon as practicable after Completion, the parties shall send out a joint notice in the Agreed Form to all suppliers and customers of the CTS Business advising them of the sale of the Shares.
48. FUTURE TRADING AND TRADE ENQUIRIES
49. WARRANTIES AND INDEMNITIES
50. The Buyer hereby warrants that:
51. it has all requisite individual and corporate power to enter into and perform this agreement and the transactions and matters contemplated thereby and it has taken all necessary action to authorise the entry into and performance of this agreement and the transactions and matters (including each Transaction Document) contemplated thereby; and
52. subject to the terms of the Bank Facility Letter, a copy of which has been provided to the Seller, and to the satisfaction of the conditions precedent thereunder the Buyer has available funding in order to complete the purchase of the Shares by the Completion Date being no later than 30 June 2002 (or such later date as shall be agreed in writing between the parties).
53. In consideration of the Buyer agreeing to purchase the Shares on the terms contained in this agreement, the Seller hereby in relation to each Company, warrants to the Buyer that, save in relation to the Resolution upon which this agreement is conditional, it has all requisite individual and corporate power to enter into and perform this agreement and the transactions and matters contemplated thereby and it has taken all necessary action to authorise the entry into and performance of this agreement and the transactions and matters (including each Transaction Document) contemplated thereby, and it warrants to the Buyer in the terms of the Warranties set out in schedule 3 to this agreement.
54. Where any of the Warranties are made or given "so far as the Seller is aware" or "to the best of the Seller's knowledge" such Warranty shall be deemed to have been given to the best of the knowledge, information and belief of the Seller after making due and careful enquiries of Mr. Geoffrey Elliott, Mr. Robert Whiteford, Mr. John King, Mr. Roger Boissonneault, Mr. Richard McCann, Mr. Anthony Bruno, Ms. Izumi Hara, Mr. Michael Bacon, Mrs. Tina Lawson, Mr. Peter Sandford, Mr. Gary Gilliland, Mr. Robert Dunlop, Mr. Philip Diamond, Ms. Celine Bradley and Mr. Martin Lamb and, in relation only to matters relating to regulatory licensing of the CTS Business, Ms. Patricia McKee, and in relation to matters concerning Taxation, the Seller's Accountants only and without any of them having made enquiry of any other person.
55. The Seller acknowledges that the Buyer has entered into this agreement upon the basis of and in reliance upon the Warranties.
56. Each of the Warranties shall be construed as a separate Warranty and (save as expressly provided to the contrary) shall not be limited by the terms of any of the other Warranties.  Only those warranties set out in paragraph 11 of schedule 3 of this agreement shall be given in relation to any Environmental Matters and no other warranties given under this agreement shall be construed in such a manner as would enable the Buyer to make such a claim otherwise.
57. Notwithstanding anything to the contrary contained herein and save in the case of fraud or fraudulent concealment by the Seller, the Seller shall be under no liability in respect of any claim under the covenants to be performed by the Seller prior to Completion or the Warranties contained in schedule 3 or the Tax Deed (to the extent that claims thereunder are subject to the terms of this clause 8) and any such claim shall be wholly barred and unenforceable unless written notice of such claim setting out details of the relevant claim (including the grounds on which such claim is based and an estimated amount claimed to be payable in respect thereof) shall have been served upon the Seller by the Buyer promptly after it becomes likely that a claim will be made, and in any event:
58. in the case of a claim under the Warranties (other than the Tax Warranties) contained in schedule 3 by not later than 5.00 p.m. Greenwich Mean Time on the date which is eighteen months from the Completion Date; and
59. in the case of a claim under the Tax Warranties or the Tax Deed by not later than 5.00 p.m. Greenwich Mean Time on the seventh anniversary of the date hereof,
60. if legal proceedings have not been instituted in respect of such claim by the due service of process on the Seller within six months of the date of such written notice; or
61. in the event that the Seller shall make in respect thereof a request to the Buyer to make recovery in the circumstances referred to in clause 8.14(b) and clause 8.15 and if legal proceedings have not been instituted by the Buyer in respect of such claim by the due service of process on the Seller within six months of the date on which judgment is given by a court of competent jurisdiction in respect of such third party proceedings as shall have been instituted by the Buyer pursuant to such request or the date settlement is reached in such third party proceedings with the consent of the Seller or on which the Seller and the Buyer agree that proceedings or other action against the third party shall be abandoned.
62. Save in the case of fraud or fraudulent concealment, the Seller shall be under no liability in respect of any claim under the Warranties contained in schedule 3 unless and until the liability in respect of that claim when aggregated with the liability of the Seller in respect of all other such claims made under this agreement (save for those claims for which liability is excluded under clause 8.8 below) solely in respect of any loss suffered in respect of the Group shall exceed one million three hundred thousand pounds sterling (L1,300,000) at which time the Seller shall be liable for the full amount of the claim not merely the excess over that sum.
63. Save in the case of fraud or fraudulent concealment, the Seller shall be under no liability in respect of any claim under the Warranties where the liability of the Seller in respect of that claim would (but for this clause) have been less than five thousand pounds sterling (L5,000) and such claim shall be disregarded in determining the aggregate value of claims pursuant to the provisions of clause 8.7.
64. Save in the case of fraud or fraudulent concealment, the aggregate liability of the Seller in respect of all claims under this agreement and the Tax Deed shall not in any circumstances exceed the sum of one hundred and thirty million pounds sterling (L130,000,000).
65. The Seller shall be under no liability in respect of any claim under the Warranties if the facts or circumstances giving rise thereto have been fairly disclosed prior to entering into of this agreement or are otherwise known to the Managers, the Buyer or any employees, officers or directors of the Buyer at the date hereof.  For the purposes of this clause "fairly disclosed" shall mean disclosed in the Disclosure Letter in such a manner and in such detail as to enable the Buyer to make a reasonably well informed assessment of the matter.
66. No liability (whether in contract, tort or otherwise) shall attach to the Seller in respect of any claim under:
67. the Warranties and the indemnities contained in this agreement to the extent that the claim or the events giving rise to the claim would not have arisen but for an act, omission or transaction following Completion of the Buyer's Group or which would not have arisen but for any claim, election or surrender or disclaimer relating to Taxation made or omitted to be made or notice or consent given or omitted to be given by the Buyer's Group under the provisions of any statutes relating to Taxation the making, giving or doing of which was assumed in computing the Taxation liabilities of the Seller's Group for the purposes of the Accounts;
68. the Warranties to the extent that the claim occurs wholly or partly out of or the amount thereof is increased as a result of:
69. any change in the accounting principles or practices of the Buyer's Group introduced or having effect after the date of Completion unless the same is introduced to bring the accounting practices and principles into line with generally accepted accounting principles and practices in the UK in relation to a business of the type carried on by the CTS Business; or
70. any increase in the rates of Taxation made after Completion and which affects matters occurring prior thereto; or
71. any change in law or regulation or in its interpretation or administration by the English or Northern Irish courts, by the Inland Revenue or by any other fiscal, monetary or regulatory authority or the equivalent laws, regulations or authorities in any jurisdiction in which the Companies operate or in each case occurring after Completion and which affects matters occurring prior thereto; or
72. this agreement to the extent that the loss or damage giving rise to the claim is actually recovered by the Buyer's Group under any policy of insurance; or
73. the Warranties to the extent that the claim relates to a claim or liability for Taxation and would not have arisen but for any winding-up or cessation of trading after Completion of either Company or any part thereof; or
74. the Warranties to the extent that the facts or circumstances giving rise to the claim also give rise to a claim under clause 8.21 of this agreement or the Tax Deed and the Seller shall have satisfied such claim; or
75. clause 8.21 of this agreement or the Tax Deed to the extent that the facts or circumstances giving rise to the claim also give rise to a claim under the Warranties and the Seller shall have satisfied such claim.
76. In assessing any liabilities, damages or other amounts recoverable by the Buyer as a result of any claim under the Warranties there shall be taken into account any benefit which actually accrues to the Buyer's Group arising out of the same subject matter or circumstances giving rise to the claim under the Warranties including, without prejudice to the generality of the foregoing, any amount of any relief for Taxation actually obtained by the Buyer's Group and any amount by which any Taxation for which the Buyer's Group is or may be liable to be assessed or accountable is actually reduced or extinguished, arising directly or indirectly in consequence of the matter which gives rise to such claim.
77. No liability will arise and no claim may be made under any of the Warranties to the extent that the matter giving rise to such claim is remediable unless within the period of 30 days following the Buyer becoming aware of such matter having served written notice thereof to the Seller in accordance with this clause 8, such matter shall not have been remedied or such remediation shall not have substantially commenced to the reasonable satisfaction of the Buyer within that period of 30 days following the date of service of such notice.
78. Clause 8.15 shall apply in circumstances where, subject to the notice provisions set out in clause 8.6:
79. any claim is made against the Buyer's Group which may give rise to a claim by the Buyer against the Seller under the Warranties; or
80. the Buyer's Group is or may be entitled to make recovery from some other person of any sum in respect of any facts or circumstances by reference to which the Buyer has or may have a claim against the Seller under the Warranties; or
81. the Seller shall have paid to the Buyer an amount in respect of a claim under the Warranties and subsequent to the making of such payment the Buyer's Group becomes or shall become entitled to recover from some other person a sum which is referable to that payment.
82. In the circumstances provided in clause 8.14 and in the event of a claim being made pursuant to clause 8.21, the Buyer shall and shall procure that the Buyer's Group shall:
83. subject to receiving an undertaking from the Seller in respect of all costs reasonably and properly incurred thereby by the Buyer's Group, promptly and diligently take all such action as the Seller may reasonably request including the institution of proceedings and the instruction of professional advisers approved by the Seller (such approval not to be unreasonably withheld or delayed) to act on behalf of the Buyer to avoid, dispute, resist, compromise, defend or appeal against any such claim against the Buyer's Group as is referred to in clause 8.14(a) or clause 8.21 or to make such recovery by the Buyer's Group as is referred to in clause 8.14(b) or clause 8.14(c), as the case may be;
84. not settle or compromise any liability or claim to which such action is referable without the prior written consent of the Seller which consent shall not be unreasonably withheld or delayed; and
85. in the case of clause 8.14(c) only, promptly repay to the Seller an amount equal to the amount so recovered or, if lower, the amount paid by the Seller to the Buyer, less in each case any costs incurred by the Buyer's Group in so recovering or any Taxation incurred by the Buyer's Group on the amount received.
86. The Buyer shall covenant but not as a condition precedent to liability on the part of the Seller as soon as practicable to:
87. inform the Seller in writing of any fact, matter, event or circumstance which comes to its notice or to the notice of the Buyer's Group whereby it appears that the Seller is or is likely to be liable to make any payment in respect of any claim under the Warranties or clause 8.21 or whereby it appears the Buyer's Group shall become or is likely to become entitled to recover from some other person a sum which is referable to a payment already made by the Seller in respect of such a claim;
88. thereafter keep the Seller informed of all material developments in relation thereto; and
89. provide at the cost of the Seller all such information and documentation (no matter how it is recorded or stored) as the Seller shall reasonably request and which the Buyer may lawfully provide in connection therewith and also in connection with any proceedings instituted by or against the Buyer's Group under clause 8.15.
90. No liability in respect of any claim for Taxation under the Warranties shall become payable:
91. in the case of a claim for Taxation involving an actual payment of tax or the loss or set off of a relief against Taxation, prior to the date which is five business days before the date on which a payment of Taxation becomes actually due and payable under or in consequence of the claim for Taxation in question; or
92. in the case of a claim for Taxation involving the loss of or reduction of a right to repayment of Taxation, five business days prior to the day on which any repayment or increased repayment of Taxation which, but for such claim for Taxation, would have been available would have been due.
93. In the event that the Seller at any time after the date hereof shall wish to take out insurance against its liability hereunder, the Buyer undertakes to provide such information as the prospective insurer may require before effecting such insurance.
94. The Buyer hereby warrants and confirms that having made due and careful enquiry (which shall include due and careful enquiry of the Managers) at the date hereof, it has not already formulated and is not aware of any claim it may have against the Seller under the Warranties PROVIDED THAT such confirmation shall not constitute a general waiver by the Buyer of any rights which it may have under this agreement in respect of any breach of Warranty arising from information subsequently in the Buyer's possession which may in the future form a basis of a claim under the Warranties or the Tax Deed.
95. The Buyer undertakes to take or procure the taking of all such reasonable steps and action as are necessary or as the Seller may reasonably require in order to mitigate any claim under the Warranties and the Buyer's Group shall act in accordance with such request subject to the Buyer being indemnified by the Seller against all reasonable costs and expenses incurred in connection therewith.  Nothing in this agreement shall or shall be deemed to relieve the Buyer of any common law or other duty to mitigate any loss or damage incurred by it.
96. Subject to the provisions of clause 8.22, in consideration of the Buyer entering into the sale and purchase of the Shares, the Seller agrees with the Buyer that it shall indemnify and keep indemnified the Buyer and each member of the Buyer's Group against all losses, claims, expenses and damages including legal and other professional fees and expenses reasonably and properly incurred arising following Completion in respect of:
97. the disability discrimination claim brought by William McNally (case number 1191/01) on 23 January 2001 against the Seller's Group;
98. the sexual discrimination claim brought by Paula Smith (case number 3440/01) on 18 October 2001 against the Seller's Group;
99. any assets or liabilities whatsoever contained within Gaelta which do not relate to the CTS Business but which relate to businesses carried on prior to the Completion Date by Gaelta or any other member of the Seller's Group (other than the CTS Business) to the extent that such loss, claim, expense or damages arises by reason of the Buyer becoming the legal and beneficial owner of the Shares; and
100. the assumption of the benefit and burden by the Buyer of any Open Contracts to the extent that any such loss, claim, expense or damage arises from any claim made by contracting parties as a consequence of any error or omission on the part of the Company or any claims by such contracting parties under the indemnity provisions contained within any Open Contracts in any such case in connection with the performance of those contracts in the period prior to the date of this agreement and to the extent that any of the Companies have not received any payment under any such Open Contracts at the date of this agreement, any such payment received by either of the Companies in this respect following the date of this agreement shall be deducted from the amount of any claim under this clause 8.21(d).
101. (a)	The Buyer:
102. shall seek, where possible, to mitigate any loss, damage or liability in relation to a claim which is made against the Seller pursuant to clause 8.21; and
103. shall not make (and shall procure that no member of the Buyer's Group will make) any admission of liability, agreement, settlement or compromise with any third party in relation to the subject of the matters referred to at clause 8.21 without the prior written consent of the Seller (such consent not to be unreasonably withheld or delayed).
104. No claim shall be brought against the Seller under clause 8.21(c) and (d) unless the Buyer shall have given written notice to the Seller of such claim giving such reasonable details as are then available on or before the date falling:
105. five years after the Completion Date in relation to the indemnity at clause 8.21(c); and
106. three years after the date of this agreement in relation to the indemnity at clause 8.21(d).
107. The Seller shall be under no liability in respect of any claim under clause 8.21(d) if the facts or circumstances giving rise thereto are known to the Managers, the Buyer or any employees, officers or directors of the Buyer at the date hereof.
108. PROTECTION OF GOODWILL
109. In consideration of the Buyer entering into the sale and purchase of the Shares, the Seller agrees with the Buyer that it will not, whether on its own account, or by any of its subsidiary undertakings or through any of their respective employees or agents or through any other person, firm or company either directly or indirectly and either solely or jointly with any other person (either on its own account or as the agent of any other person) and in any capacity whatsoever:
110. for a period of three years from the Completion Date, provide services to or be employed or otherwise engaged or interested in any business which is engaged in the provision or supply of Restricted Services (or any of them) in the Restricted Territory which competes with the CTS Business.  Both parties agree that the carrying on of the ICTI Business by the Seller or any member of the Seller's Group at any time after Completion shall not be in contravention of this undertaking;
111. for a period of three years from the Completion Date, solicit or canvass away from the Buyer any person, firm or company or other organisation (which was a customer or supplier of any of the Companies in respect of the CTS Business at any time during the twelve month period prior to Completion only for the provision of Restricted Services (or any of them));
112. for a period of two years from the Completion Date, solicit or entice away or endeavour to solicit or entice away from the Buyer any senior manager, director, project manager or sales staff (excluding support staff) and any key employee who would be treated as a "relevant employee" for the purposes of the Model Code contained in the Listing Rules, employed or retained by any of the Companies in relation to the CTS Business on Completion, whether or not such person would commit any breach of his contract of employment or terms of engagement by reason of his leaving the service of the Buyer PROVIDED THAT this restriction will not apply to any advertisements for recruitment made available generally through any recruitment agency or advertisement available to the public; or
113. use any trade or domain name (including but not limited to the expressions "CTS"or "Technigal") or e-mail address used by the Group at any time during the two months immediately preceding the date of this agreement solely in relation to the CTS Business or any other name intended or likely to be confused with any such trade or domain name or e-mail address; or
114. for a period of three years following the Completion date, use in the course of its business either of the domain names galenservices.com or galen-services.com as the universal resource locator of any web site accessible on the internet.
115. Nothing in this clause 9 shall prevent or restrict any member of the Seller's Group from doing the following if they would otherwise be prohibited by this clause 9:-
116. holding, or being interested in, up to but not exceeding 15 per cent. of the issued share or loan capital of any company (or any amount of such issued share or loan capital carrying in aggregate up to but not exceeding 15 per cent. of the votes which could be cast at a general meeting of such company) including without limitation a listed company; or
117. acquiring the whole or any part of a business which, or the share capital of a company or group of companies whose business or a part of whose business, includes operations the carrying on of which would otherwise amount to a breach of the undertaking contained in clause 9.1 (the "Competitive Operations"), as part of a larger acquisition or series of related acquisitions PROVIDED THAT the relevant member of the Seller's Group shall within the following twelve months use their best endeavours to sell the Competitive Operations as soon as is reasonably practicable following such acquisition (which shall, without limitation, include inviting the Buyer to make a competitive bid for the sale of the Competitive Operations) save that the relevant member of the Seller's Group shall not be obliged to sell the Competitive Operations if those Competitive Operations comprise a minor part of the business or business of such company, group of companies or businesses acquired or in which the Seller's Group has acquired an interest.  For the purpose of this clause 9.2(b), "minor part" of the business of such company, group of companies or business shall be part of its overall business in which the turnover of the Competitive Operations does not exceed the lower of ten per cent of the gross turnover per annum or L5 million gross turnover per annum of the Company, group of companies or business acquired.
118. The Seller agrees with the Buyer that it will not at any time after Completion, whether by itself or through any other member of the Seller's Group, whether directly or indirectly, in the course of carrying on its business, claim or represent any continuing association with the Buyer in respect of the CTS Business for the purpose of obtaining or retaining any business or custom.
119. The Seller agrees with the Buyer that the restrictions contained in this clause 9 are considered reasonable and necessary for the protection of value of the CTS Business (in particular the goodwill of the CTS Business) by the parties hereto and the Seller acknowledges that, in the light of the total price paid under this agreement and the manner of computation thereof, the nature of the business of the Group and all other relevant matters, the provisions of this clause 9 are considered reasonably necessary for the protection of the interests of the Buyer, and the restrictive covenants do not go beyond what is reasonably necessary to protect the legitimate business interests of the Buyer.
120. In the event that any restriction in this clause 9 shall be found to be unenforceable but would be enforceable if some part thereof were deleted or the area of operation or the period of application reduced, such restriction shall apply with such modification as may be necessary to make it legal and enforceable.  Without prejudice to the generality of the foregoing, if such invalidity arises by reason of the period of restriction being excessive, such period as shall be held by a court of competent jurisdiction to be reasonable shall be able to be substituted for the period herein in order to make the restriction binding on the relevant parties.
121. Each undertaking contained in this clause 9 shall be construed as a separate undertaking and if one or more of the undertakings contained in this clause 9 is held to be against the public interest or unlawful or in any way an unreasonable restraint of trade the remaining undertakings shall continue to bind the Seller and its subsidiary undertakings.
122. CONFIDENTIAL INFORMATION
123. In consideration of the mutual promises contained in this agreement each party undertakes to the other that they shall:-
124. not, and shall procure that none of their connected persons or any director, officer or employee or adviser or agent shall use or disclose to any person Confidential Information; and
125. use all reasonable endeavours to prevent the use or disclosure of Confidential Information by any person other than by members of their respective Group.
126. Clause 10.1 does not apply to:
127. disclosure of Confidential Information to or at the written request of the other party;
128. use or disclosure of Confidential Information required to be disclosed by law, regulation, any revenue authority or the London Stock Exchange, the UK Listing Authority, Nasdaq National Market or any other exchange on which securities of the Seller are listed; or
129. Confidential Information which is in the public domain other than by a breach by either party of clause 10.1.
130. ANNOUNCEMENTS, ETC.
131. No party shall disclose the making of this agreement nor its content (except those matters set out in the press release in the Agreed Form) and each party shall procure that each of its Related Persons and its professional advisers shall not make any such disclosure without the prior consent of the other party unless disclosure is to its professional advisers or required by law or the rules or standards of the London Stock Exchange or the Listing Rules of the UK Listing Authority or the rules and requirements of any other regulatory body or other applicable stock exchange Provided that this clause 11.1 does not apply to announcements, communications or circulars made or sent by either party after Completion to customers, clients or suppliers of the Group to the extent that it informs them of the Buyer's acquisition of the Shares or to any announcements containing only information which has become generally available.
132. The restrictions contained in clause 11 shall apply without limit of time and whether or not this agreement is terminated.
133. ASSIGNMENT
134. COSTS
135. ENTIRE AGREEMENT
136. Each party, on behalf of itself and as agent for each of its Related Persons, acknowledges and agrees with the other party (each such party acting on behalf of itself and as agent for each of its Related Persons) that save as otherwise agreed in writing by the parties:
137. this agreement together with any other documents referred to in this agreement (together the "Transaction Documents") constitutes the entire and only agreement between the parties and their respective Related Persons relating to the subject matter of the Transaction Documents;
138. neither it nor any of its Related Persons has been induced to enter into any Transaction Document in reliance upon, nor has any such party been given, any warranty, representation, statement, assurance, covenant, agreement, undertaking, indemnity or commitment of any nature whatsoever other than as are expressly set out in the Transaction Documents and, to the extent that any of them has been, it (acting on behalf of itself and as agent on behalf of each of its Related Persons) unconditionally and irrevocably waives any claims, rights or remedies which any of them might otherwise have had in relation thereto; and
139. the only remedies available to it, save as otherwise agreed hereunder (including the provisions of clause 8.21 of this agreement) and in the Transaction Documents, in respect of the Transaction Documents (and, where appropriate, to its Related Persons) are damages for breach of contract and, for the avoidance of doubt, (neither it nor its Related Persons, where appropriate) have any right to rescind or terminate any Transaction Documents either for breach of contract or for negligent or innocent misrepresentation or otherwise;
140. WAIVER, AMENDMENT
141. A waiver of any term, provision or condition of, or consent granted under, this agreement shall be effective only if given in writing and signed by the waiving or consenting party and then only in the instance and for the purpose for which it is given.
142. No failure or delay on the part of any party in exercising any right, power or privilege under this agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege.
143. No breach of any provision of this agreement shall be waived or discharged except with the express written consent of the Seller and the Buyer.
144. No variation to this agreement shall be effective unless made in writing and signed by all the parties.
145. FURTHER ASSURANCE
146. At any time after Completion, the Seller shall execute all such documents and do such acts and things as the Buyer may reasonably require for the purpose of vesting in the Buyer the full legal and beneficial interest in the Shares.
147. The terms of this agreement shall insofar as they are not performed at Completion and subject as specifically otherwise provided in this agreement continue in force after and notwithstanding Completion.
148. NOTICES
149. Any notice, demand or other communication given or made under or in connection with the matters contemplated by this agreement shall be in writing and shall be delivered personally or sent by fax or prepaid first-class post (air mail if posted to or from a place outside the United Kingdom):



|In the case of the Seller to both of:
Galen Holdings PLC
Seagoe Industrial Estate
Craigavon
Co. Armagh
Northern Ireland
BT63 5UA
Fax:		02838 331500
Attention:	Company Secretary | Galen Holdings PLC
100 Enterprise Drive
Rockaway
New Jersey 07866
USA

Fax:		+ 973 442 3316
Attention:	Company Secretary
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------



and shall be deemed to have been duly given or made as follows:



(a)	if personally delivered, upon delivery at the address of the relevant party;



(b)	if sent by first class post in the UK or international courier service specifying a 48 hour delivery time (or less), two business days after the date of despatch;



(c)	if sent by air mail, five business days after the date of posting; and



(d)	if sent by fax, when despatched;



provided that if, in accordance with the above provisions, any such notice, demand or other communication would otherwise be deemed to be given or made after 5.00 p.m. (local time in the jurisdiction in which such communication was despatched) on a business day such notice, demand or other communication shall be deemed to be given or made at 9.00 a.m. (local time) on the next business day.







(a)	the date specified in the notification as the date on which the change is to take place; or



(b)	if no date is specified or the date specified is less than five days after the date on which notice is given, the date falling five days after notice of any such change has been given.







This agreement may be executed in counterpart which together shall constitute one agreement.  Either party may enter into this agreement by executing a counterpart and this agreement shall not take effect until it has been executed by both parties.







1. This agreement (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in any way relating to this agreement or its formation) shall be governed by and construed in accordance with Northern Irish law.
2. Each of the parties to this agreement irrevocably agrees that the courts of Northern Ireland shall have exclusive jurisdiction to hear and decide any suit, action or proceedings, and/or to settle any disputes, which may arise out of or in connection with this agreement (respectively, "Proceedings" and "Disputes") and, for these purposes, each party irrevocably submits to the jurisdiction of the courts of Northern Ireland.
3. Each party irrevocably waives any objection which it might at any time have to the courts of Northern Ireland being nominated as the forum to hear and decide any Proceedings and to settle any Disputes and agrees not to claim that the courts of Northern Ireland are not a convenient or appropriate forum for any such Proceedings or Disputes and further irrevocably agrees that a judgment in any Proceedings or Disputes brought in any court referred to in this clause 19 shall be conclusive and binding upon the parties and may be enforced in the courts of any other jurisdiction.
4. Without prejudice to any other permitted mode of service the parties agree that service of any claim form, notice or other document ("Documents") for the purpose of any Proceedings begun in Northern Ireland shall be duly served upon it if delivered personally or sent by registered post, in the case of:



(a)	the Seller to its registered office (marked for the attention of the Company Secretary); and



(b)	the Buyer to the registered office of Almac Sciences Limited (marked for the attention of Dr. Allen J. McClay)



or such other person and address in the United Kingdom as the Seller shall notify the Buyer in writing or vice versa from time to time.







If any provision of this agreement is or becomes invalid, illegal or unenforceable in any respect under the law of any jurisdiction:



1. the validity, legality and enforceability under the law of that jurisdiction of any other provision; and
2. the validity, legality and enforceability under the law of any other jurisdiction of that or any other provision



shall not be affected or impaired in any way.







The operation of the Contracts (Rights of Third Parties Act) 1999 is hereby excluded.







1. The parties have participated jointly in the negotiation and drafting of this agreement.  In the event an ambiguity or question of intent or interpretation arises, this agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favouring or disfavouring any party by virtue of the authorship of any provisions of this agreement.
2. The Buyer acknowledges that the tenant's interests in the ICTI Leases as now vested in CTS Analytical are not intended to be sold or transferred by virtue of this agreement and the tenant's interests under the ICTI Leases, subject to the consent of the landlord of the ICTI Leases, are intended to be assigned by CTS Analytical to Galen Limited (company registration number NI30077) or such other subsidiary company or undertaking of the Seller as the Seller shall decide.
3. In the event the tenant's interests in the ICTI Leases have not been assigned by CTS Analytical to Galen Limited or such other subsidiary company or undertaking of the Seller as the Seller shall decide by the Completion Date, the Buyer shall:-
4. procure the execution by CTS Analytical of the assignments (in the form to be agreed by the Buyer and Seller, such agreement not to be unreasonably withheld or delayed) of the ICTI Leases by CTS Analytical to Galen Limited or such other subsidiary company or undertaking of the Seller as the Seller shall decide; and
5. grant the Licence to Galen Limited or such other subsidiary company or undertaking of the Seller as the Seller shall decide in the Agreed Form to occupy the premises comprised in the ICTI Leases until the date of the assignments of the ICTI Leases referred to in clause 22.3(a) provided that CTS Analytical Limited is not required to enter into any form of guarantee in order to get consent to such assignment.



IN WITNESS whereof this agreement has been executed on the date first above written.







|EXECUTED AND DELIVERED
as a DEED by

for and on behalf of
GALEN HOLDINGS PLC: | ))
)
)) | Director:
/s/
Director/Secretary:
/s/
|----------------------------------------------------------------------------- | ------- | -------------------------------------









|EXECUTED AND DELIVERED
as a DEED by

for and on behalf of
CLINICAL TRIAL SERVICES LIMITED: | ))))) | Director: /s/

Director/Secretary:
/s/
|------------------------------------------------------------------------------------------ | ----- | --------------------------------------