Private
and Confidential


 


Dated:February 13,
2014


 


_____________________________


 


HUGH DOHERTY
and LAURENCE SEYMOUR


 


and


 


THE PURCHASER


 


and


 


THE GUARANTORS


 


_____________________________________________


 


Share Sale
Agreement 


relating
to shares in 


OBAR Camden
Holdings Limited


 


_____________________________________________


 




    	 



    	 



    

 


CONTENTS


 


	Clause	Heading	Page
	 	 	 
	1.	Sale of the Shares	1
	2.	Consideration	2
	3.	Completion	2
	4.	Warranties	4
	5.	Tax	8
	6.	Protective Covenants	8
	7.	Definitions, Interpretation and terms and conditions	8
	Schedule 1 The Sellers, their Shareholdings and Consideration	11
	Schedule 2 Corporate Particulars	13
	Schedule 3 The Warranties	15
	Schedule 4 Adjustment to the Consideration	24
	Schedule 5 Completion Obligations	28
	Schedule 6 Limitations on Liabilities under the Warranties	29
	Schedule 7 Tax Covenant	33
	Schedule 8 Protective Covenants	41
	Schedule 9 Addresses for Notices	43
	Schedule 10 Property	44
	Schedule 11 Terms and Conditions	45
	Schedule 12 Definitions and Interpretation	49


 


 




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THIS AGREEMENT
dated February 13, 2014 is made


 


BETWEEN


 


		(1)	The
                                         persons whose names and addresses are shown in column (1) of Part 1 of Schedule 1 (The
                                         Sellers) (each a "Seller" and together the "Sellers");



 


		(2)	KOKO
                                         (CAMDEN) LIMITED, a private limited company registered in England and Wales under
                                         company no. 08763877 and whose registered office is at 55 Colmore Row, Birmingham, B3
                                         2AS (the "Purchaser"); and



 


		(3)	The
                                         persons whose names and addresses are shown in column (1) of Part 2 of Schedule 1 (The
                                         Guarantors).



 


BACKGROUND


 


		(A)	The
                                         Sellers are the registered holders and the beneficial owners of the number of shares
                                         in the Company set opposite their names in column (2) of Schedule 1 (the "Sale
                                         Shares"), which are fully paid or credited as fully paid.



 


		(B)	The
                                         Company is the beneficial owner of the entire issued share capital of the Subsidiary,
                                         particulars of which are set out in Part 2 of Schedule 2 (Corporate Particulars).



 


		(C)	The
                                         Sellers wish to sell and the Purchaser is willing to purchase all of the Sale Shares
                                         (being all the shares in the Company currently registered in their names) on the terms
                                         and conditions of this Agreement.



 


		(D)	The
                                         Guarantors have agreed to guarantee to the Sellers the performance of this Agreement
                                         (including in particular, but without limitation, the payment of all sums due to the
                                         Sellers from the Purchaser in accordance with this Agreement) by the Purchaser subject
                                         to the terms and conditions set out below and have agreed to provide security to the
                                         Sellers in respect of such obligations.



 


Sale
and Purchase


 


		1.	SALE
                                         OF THE SHARES



 


		1.1	Sale
                                         and Purchase



 


Each
of the Sellers shall sell with full title guarantee those shares set out opposite his name in Schedule 1 (The Sellers)
and the Purchaser shall purchase the Sale Shares on the terms of this Agreement free from all Encumbrances and together with all
rights attaching to them.


 


		1.2	Right
                                         to Sell



 


Each
Seller agrees with the Purchaser that he has the right to sell and transfer the full legal and beneficial interest in the Sale
Shares set out opposite his name in Schedule 1 (The Sellers) to the Purchaser on the terms set out in this Agreement and
acknowledges that the Purchaser is purchasing the Sale Shares in reliance on the warranties and undertakings given by the Sellers
in this Agreement.


 


		1.3	Waiver
                                         of Pre-emption Rights



 


Each
Seller waives all rights of pre-emption conferred upon him by the articles of
association of the Company or in any other way in respect of the sale and transfer of the Sale Shares to the Purchaser and the
transfer of any shares by each other or either of Oliver Bengough and/or Alex Rutherford to the Purchaser, whether such transfers
are effected before, after or simultaneous with the transfer of the Sale Shares pursuant to this Agreement.


 


		1.4	Conditionality
                                         of the Agreement









 


The
sale of the Sale Shares pursuant to this Agreement is conditional upon the delivery to the Sellers (or such person as they shall
nominate):


 


		(a)	by
                                         Oliver Bengough of a share pledge in a form agreed between the Sellers, Alex Rutherford
                                         and Oliver Bengough in favour of the Sellers and to Alex Rutherford pursuant to which
                                         he grants to the Sellers and Alex Rutherford a charge over his interests in shares in
                                         Mint Leisure Limited by way of security in respect of his obligations under this Agreement
                                         to the Sellers and to Alex Rutherford under the Alex SPA; and



 






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		(b)	by
                                         TRINAD Capital Master Fund Ltd, the Negative Pledge and Charge Agreement duly executed
                                         by TRINAD Capital Master Fund Ltd in respect of the granting of security in favour of
                                         the Sellers and Alex Rutherford in respect of the respective obligations of TRINAD Capital
                                         Master Fund Ltd. under this Agreement and under the Alex SPA;



 


		(c)	by
                                         the Subsidiary of a deed of debenture by way of fixed charge over the Property executed
                                         by the Subsidiary in a form agreed between the Sellers and Alex Rutherford pursuant to
                                         which the Subsidiary grants security in respect of its obligations to the Sellers under
                                         this Agreement and to Alex Rutherford under the Alex SPA



 


		(d)	a
                                         deed of reimbursement (the “Deed of Reimbursement”) in the agreed
                                         form to be entered into between the Purchaser, Alex Rutherford, Hugh Doherty, Laurence
                                         Seymour, Oliver Bengough and Mint Group Holdings Limited in relation to the reimbursement
                                         of certain fees incurred by the parties thereto (other than the Purchaser) in relation
                                         to entering into this transaction and all sums to be paid thereunder to the Sellers,
                                         Alex Rutherford and Mint Group Holdings Limited have been received into the Sellers’
                                         Solicitors Client Account or otherwise properly paid directly to the relevant payee thereunder



 


		2.	CONSIDERATION



 


		2.1	Consideration



 


The
consideration for the sale of the Sale Shares (subject to adjustment in accordance with Clause 2.2) (the “Consideration”)
shall be:


 


		(a)	the
                                         payment of £127,500 to Hugh Doherty in respect of the 2,468 Ordinary Shares registered
                                         in his name as at Completion; and



 


		(b)	the
                                         payment of £1 to Hugh Doherty in respect of the 2,750 Deferred Ordinary Shares
                                         registered in his name as at Completion;



 


		(c)	the
                                         payment of £127,500 to Laurence Seymour in respect of the 2,468 Ordinary Shares
                                         registered in his name as at Completion; and



 


		(d)	the
                                         payment of £1 to Laurence Seymour in respect of the 2,750 Deferred Ordinary Shares
                                         registered in his name as at Completion



 


in
each case in accordance with the remaining provisions of this Agreement.


 


		2.2	Adjustment
                                         of Consideration



 


The
Consideration shall be adjusted as required in accordance with Schedule 4 (Adjustment to the Consideration).


 


		3.	COMPLETION



 


		3.1	Time
                                         and Place for Completion



 





Completion
shall take place on 31 March 2014 (the “Completion Date”) at the offices of Winston & Strawn London, City
Point, One Ropemaker Street, London EC2Y 9HU (or any other location agreed upon in writing by the Sellers and the Purchaser)


 


		3.2	Sellers’
                                         Completion Obligations



 


The
Purchaser shall not be obliged to complete this Agreement unless each of the Sellers complies with the requirements of Part 1
of Schedule 5 (Completion Obligations) in relation to the relevant Completion.


 


		3.3	Purchaser's
                                         Completion Obligations



 


Upon
completion of all the matters referred to in Part 1 of Schedule 5 (Completion Obligations) in relation to the relevant
Completion, if the Purchaser shall fail to comply with the requirements of Part 2 of Schedule 5 (Completion Obligations)
and/or shall fail to complete the purchase of each of the Sale Shares the Sellers shall not be obliged to complete this Agreement.


 






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		3.4	Conditionality
                                         of Completion



 


None
of the Sellers nor the Purchaser shall be obliged to effect Completion pursuant to this Agreement unless Alex Rutherford and the
Purchaser have entered into an agreement for the sale by Alex Rutherford to the Purchaser of the whole of the issued share capital
in the Company registered in the name of Alex Rutherford.


 


		3.5	Interest



 


If either party is late
in paying any sum due to the other under this Agreement, the party under the obligation to make the payment (the “Payer”)
shall pay interest to the party owed the payment (the “Payee”) on the sum which is not paid on the due date. Interest
shall accrue at the rate of 4% above the base rate of Barclays Bank PLC from time to time and shall accrue on a daily basis and
be paid on demand semi-annually in arrears and shall be compounded if not paid. In the case of the Consideration, if not paid
at Completion it shall bear interest at the rate of 4% over the base rate from March 31, 2014 to June 30, 2014 and 8% over the
base rate thereafter. The applicable rate shall apply both before and after any judgment has been obtained.


 


		3.6	Consequences
                                         of Default



 


If
any of the provisions of Part 1 of Schedule 5 (Completion Obligations) is not complied with in relation to the relevant
Completion:


 


		(a)	if
                                         such default is due to a failure of any Seller, the Purchaser shall not be obliged to
                                         complete this Agreement and may (in addition and without prejudice to all other rights
                                         or remedies available to it):



 


		(i)	defer
                                         the relevant Completion to a date not more than 28 days thereafter (and so that the provisions
                                         of this Clause 3.5 shall apply to Completion as so deferred);



 


		(ii)	proceed
                                         to the relevant Completion so far as practicable and without prejudice to its rights
                                         under this Agreement;



 


		(iii)	waive
                                         all or any of the requirements contained in Part 1 of Schedule 5 (Completion Obligations)
                                         at its discretion



 


			Provided
                                         always that save with the written agreement of the relevant Seller (the “Non-Defaulting
                                         Seller”), the Non-Defaulting Seller shall not
                                         be obliged to complete the sale of his Sale Shares unless the sale of the Sale Shares
                                         held by the other Seller is completed;



 


		(b)	if
                                         such default is due to a failure of the Purchaser to comply with its obligations under
                                         Schedule 5 as referred to in Clause 3.4(b):






 





		(i)	neither
                                         of the Sellers shall be obliged to complete this Agreement and may (in addition and without
                                         prejudice to all other rights and remedies available to them) and by joint notice signed
                                         by each of the Sellers:



 


(a)   defer
the relevant Completion to a date not more than 28 days thereafter (and so that the provisions of this Clause 3.5 shall apply
to Completion as so deferred);


 


(b)   proceed
to the relevant Completion so far as practicable and without prejudice to its rights under this Agreement;


 


(c)   waive
all or any of the requirements contained in Part 2 of Schedule 5 (Completion Obligations) at their discretion; and


 


		(ii)	the
                                         Purchaser shall pay interest to the Sellers at the rate specified in Clause 5 with effect
                                         from the due date until the date that all sums due to the Sellers pursuant to Part 2
                                         of Schedule 5 have been paid in full.



  



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		4.	WARRANTIES
                                         AND SPECIFIC INDEMNITIES



 


		4.1	Warranties



 


Each
of the Sellers severally warrants to the Purchaser that each of the Warranties in Schedule 3 is true and accurate as at the date
of this Agreement.


 


		4.2	Reliance



 


The
Sellers acknowledge that the Purchaser is entering into this Agreement in reliance on each Warranty.


 


		4.3	Disclosure



 


The
Warranties are given subject to matters fairly disclosed in this Agreement or in the Disclosure Letter with sufficient detail
to identify the nature and scope of the matters disclosed but a matter shall be regarded as disclosed by the Disclosure Letter
only to the extent that accurate information, which is not misleading, about that matter is contained in the Disclosure Letter
in sufficient detail for the Purchaser reasonably to identify the nature and scope of that matter.


 


		4.4	Knowledge
                                         not to prevent claim



 


Except
in relation to matters fairly disclosed in the Disclosure Letter in accordance with Clause 4.3, none of the Warranties shall be
qualified by any imputed or constructive knowledge on the part of the Purchaser, its agents or advisers and no such knowledge
shall prejudice or be used as a defence to any Warranty Claim or otherwise operate to reduce the amount recoverable. The Purchaser
warrants that as at the date hereof it is not intending to make a Warranty Claim against the Sellers for breach of Warranty in
respect of any matter, event or circumstances it has actual knowledge of as at the date of this Agreement and knows constitutes
a breach of a Warranty.


 


		4.5	Construction
                                         of Warranties



 


Each
of the Warranties set out in the several paragraphs of Schedule 3 (Warranties) is separate and independent and, except
as expressly provided to the contrary in this Agreement, is not limited by reference
to any other paragraphs of Schedule 3 (Warranties).


 


		4.6	Waiver
                                         of Rights



 





Each
Seller agrees with the Purchaser (for itself and for the Companies and their directors, officers, employees and consultants as
Third Parties) that, save in the case of fraud, he shall waive any rights or claims which such Seller may have in respect of any
misrepresentation, inaccuracy or omission in, or from, any information or advice supplied or given by the Companies or their directors,
officers, employees or consultants on which the Seller may have relied in connection with the giving of the Warranties and the
preparation of the Disclosure Letter.


 


		4.7	Non-discharge
                                         of Warranties



 


None
of the Warranties or the Tax Covenant shall be deemed in any way modified or discharged by reason of Completion
nor shall the Purchaser be deemed to have knowledge (as opposed to having actual knowledge) arising from any investigation
or inquiry made on behalf of the Purchaser and accordingly neither Completion nor deemed,
constructive or imputed knowledge which would otherwise be imputed on the Purchaser shall prejudice any claim which the
Purchaser shall be entitled to bring or shall operate to reduce any amount recoverable under this Agreement.


 


		4.8	Reduction
                                         in Consideration



 


Any
payment made by a Seller for any breach of the Warranties or under the Tax Covenant shall be deemed to be a reduction in the Consideration
in relation to that Seller.


 


		4.9	Notifications
                                         by Purchaser



 


If
the Purchaser becomes aware of a matter or circumstance which is likely to give rise to a Warranty Claim, the Purchaser shall
give notice to each of the Sellers in writing specifying that matter or circumstance in reasonable detail (given the level of
detail available to the Purchaser at the time) as soon as reasonably practicable after it becomes aware of that matter or circumstance.
Any failure by the Purchaser to give notice as contemplated by this clause shall not prevent the Purchaser from making any Warranty
Claim arising from that circumstance but the Sellers shall not be liable for any losses or liabilities incurred to the extent
that they are foreseeably increased as a result of such failure.


 






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		4.10	Specific
                                         Indemnities



 


Each
Seller agrees and undertakes to the Purchaser that, subject to the provisions of clause 4.11 below he shall indemnify the Purchaser
in respect of 2.525% of any Losses arising in the Company or the Subsidiary:


 


		(a)	by
                                         reason of the Company and/or the Subsidiary not having registered with the Data Protection
                                         Registrar prior to the date of this Agreement; and



 


		(b)	in
                                         relation to any claim from any third party (not being a Seller, Oliver Bengough or Alex
                                         Rutherford or any person who is a connected person in relation to a Seller, Oliver Bengough
                                         or Alex Rutherford) which has been received by the Company and/or the Subsidiary and
                                         which has been notified to the insurers of the Company or the Subsidiary on or before
                                         the date of this Agreement and which such insurers refuse or otherwise fail to pay by
                                         reason of such insurance not covering the claim, being void or voidable or otherwise
                                         (save to the extent that such Losses relate to any excess payable by the Company or the
                                         Subsidiary under the terms of the relevant insurance).



 


		4.11	Sellers’
                                         Protections



 


Schedule
6 (Limitations) shall apply so as to limit the liability of the Sellers in respect of the Warranties, the Tax Covenant
and the indemnities provided pursuant to clause 4.10 save that:


 


		(a)	Schedule
                                         6 shall not apply to the extent that any claim arises out of fraud, dishonesty, wilful
                                         misstatement or wilful concealment on the part of a Seller;



 


		(b)	The
                                         provisions of paragraphs 1, 2, 3 (mutatis mutandis), 7 (c), 8 (mutatis mutandis) and
                                         10 (mutatis mutandis) only of Schedule 6 shall apply to any claim and any liability arising
                                         pursuant to clause 4.10(a) or 4.10(b). 






 


		4.12	Sellers’
                                         Covenants



 


Each
of the Sellers covenants in respect of himself that:


 


		(a)	he
                                         has the requisite capacity and authority to enter into and perform this Agreement and
                                         any other documents that are to be executed by him pursuant to this Agreement (the "Sellers’
                                         Completion Documents");



 


		(b)	this
                                         Agreement and the Sellers’ Completion Documents will, when executed by him, constitute
                                         binding obligations on him enforceable in accordance with their respective terms;



 


		(c)	no
                                         consent, approval, authorisation or order of any court of government or local agency
                                         or body or any other person is required by him for the execution or implementation of
                                         this Agreement and the Sellers’ Completion Documents and compliance with the terms
                                         of this Agreement and the Sellers’ Completion Documents does not:



 


		(i)	conflict
                                         with, result in the breach of or constitute a default under any agreement, instrument
                                         or obligation by which he may be bound or any provision of the articles of association
                                         of the Company or Subsidiary; or



 


		(ii)	result
                                         in the creation, imposition, crystallisation or enforcement of any Encumbrance on, over
                                         or affecting any of the assets of the Company or the Subsidiary;



 


		(d)	his
                                         shares in the Company, details of which
                                         are set out in column (2) of paragraph (9) of part 1 of Schedule 2 constitute the whole
                                         of the allotted and issued share capital of the Company (when taken with the shares in
                                         the Company currently registered in the names of Oliver Bengough and Alex Rutherford
                                         on the date of this Agreement) and are fully paid up or credited as fully paid up as
                                         to their nominal value;



 


		(e)	he
                                         is the legal and beneficial owner of the Sale Shares shown against his name in column
                                         2 of Schedule 1 and is entitled to transfer the Sale Shares to the Purchaser free from
                                         any Encumbrances;



 






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		(f)	there
                                         is no Encumbrance on, over or affecting any of the Sale Shares and no person has claimed
                                         to be entitled to any such Encumbrance;



 


		(g)	apart
                                         from this Agreement, the Alex SPA and the share purchase agreement between Oliver Bengough
                                         and the Purchaser, there is no agreement, arrangement or commitment outstanding which
                                         calls for the allotment, issue or transfer of, or accords to any person the right to
                                         call for the allotment, issue or transfer of, any share or loan capital of the Company
                                         or the Subsidiary;



 


		(h)	neither
                                         he nor any person connected with him has any claim of any kind (actual or contingent)
                                         against the Companies (or any one of them) on any account as at the date of this Agreement;



 


		(i)	he
                                         irrevocably and unconditionally waives and undertakes to procure that each person being
                                         a connected person shall waive with effect from Completion any claim (actual or contingent)
                                         which any of them may have against the Companies (or any one of them);



 


		(j)	there
                                         is no indebtedness outstanding at Completion from him to either of the Companies;



 


		(k)	all
                                         indebtedness outstanding at Completion from either of the Companies to him has either
                                         been repaid or irrevocably waived in full (including interest);






 





		(l)	no
                                         bankruptcy order has been made in respect of him, nor has any petition for any such order
                                         been presented;



 


		(m)	no
                                         application has been made in respect of him for an interim order under section 253 Insolvency
                                         Act 1986;



 


		(n)	he
                                         is not currently in a position whereby he is unable to pay or has no reasonable prospect
                                         of being able to pay any debt as those expressions are defined in section 268 Insolvency
                                         Act 1986;



 


		(o)	no
                                         person has been appointed by the court to prepare a report in respect of him under section
                                         273 Insolvency Act 1986;



 


		(p)	no
                                         interim receiver has been appointed of the property of him under section 286 Insolvency
                                         Act 1986; and



 


		(q)	he
                                         is not insolvent or bankrupt within the meaning of any applicable law;



 


and
the transfer of the Sale Shares to the Purchaser shall be deemed to include expressly and be made subject to all the above provisions
of this clause 4.12.


 


		4.13	No
                                         Claims unless Completion Occurs



 


In
the event that Completion does not occur then the Sellers shall not be liable for breach of Warranty or any indemnity under this
clause 4 or any claim under Schedule 7.


 


		4.14	Reduction
                                         in liability under Warranty Claims in respect of prior recovery



 


The
amount that the Purchaser shall be entitled to recover under a Warranty Claim which arises out of events, facts, matters or circumstances
in relation to which the Sellers have indemnified the Purchaser pursuant to any of the indemnities provided pursuant to Clause
4.10 shall be reduced by the amount paid by the Sellers pursuant to the relevant indemnity.


 






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		5.	INTEREST
                                         ON LATE PAYMENT



 


		5.1	Applicable
                                         interest rate



 


If
either party is late in paying any sum due to another under this Agreement, the party under the obligation to make payment
(the “Payer”) shall pay interest to the
party owed the payment (the “Payee”) on the sum which is not paid on the
due date. Interest shall accrue at the rate of 4% above the base rate of Barclays Bank PLC from time to time and shall accrue
on a daily basis and be paid on demand monthly in arrears and shall be compounded if not paid. That rate shall apply both before
and after any judgment has been obtained.


 


		5.2	Interest
                                         not subject to deduction



 


Interest
shall be paid without any deduction or withholding, except as required by law. If interest payable under this Clause is subject
to deduction or withholding, the Payer shall increase the amount paid so that the net amount received by the Payee is the amount
which he would have received had no deduction or withholding been made.


 


		6.	GUARANTEE



 


		6.1	Guarantee
                                         by the Guarantors



 


In
consideration of the Sellers agreeing to enter into this Agreement with the Purchaser, each of the Guarantors irrevocably and
unconditionally jointly and severally as primary obligor (and not just as surety) undertakes and guarantees to the Sellers the
performance by the Purchaser of all its obligations under this Agreement including the due and punctual payment of all sums now
or subsequently payable by the Purchaser to each of the Sellers under this Agreement. For the avoidance of doubt, all of the Guarantors
obligations to the Sellers under this Agreement or otherwise are to be read subject to clause 6.5. 








 


		6.2	Default
                                         by the Purchaser



 


If
the Purchaser defaults in the performance of any obligations under this Agreement, the Guarantor shall on demand perform (or procure
the performance of) that obligation, so that the same benefits shall be conferred on the Sellers as they would have received if
the Purchaser had duly performed that obligation (including, without limitation, the payment of interest with effect from the
relevant due date until the discharge of all sums due to the Sellers pursuant to Part 2 of Schedule 5).


 


		6.3	Continuing
                                         Obligations



 


The
obligations and liabilities of each Guarantor in this Clause:


 


		(a)	are
                                         continuing obligations and liabilities which shall remain in force until all the obligations
                                         of the Purchaser under this Agreement have been performed.



 


		(b)	shall
                                         not be affected by anything which, but for this Clause, might operate to release or otherwise
                                         exonerate him from or affect its obligations, including:



 


		(i)	any
                                         time, indulgence, waiver or consent given at any time to the Purchaser or another person
                                         or any amendment to or variation of the terms of any of this Agreement or another document
                                         referred to in this Agreement, save to the extent that such time, indulgence, waiver,
                                         consent, amendment or variation has been agreed in writing between the Purchaser and
                                         the Sellers and such agreement specifically refers to such time, indulgence, waiver,
                                         consent, amendment or variation being made in respect of this Agreement or the relevant
                                         document referred to in this Agreement in which event the obligations of the Guarantor
                                         will be deemed to have agreed to be bound by, and shall have the benefit of the terms
                                         of such agreement for time, indulgence, waiver, consent, amendment or variation to the
                                         same extent as such benefits have been granted to the Purchaser;



 


		(ii)	any
                                         abstention from perfecting or enforcing any rights or remedies against the Purchaser
                                         or another;



 


		(iii)	a
                                         legal limitation, disability, incapacity or other circumstances relating to the Purchaser
                                         or another person;



 






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		(iv)	an
                                         irregularity, unenforceability or invalidity of the obligations of a party to any of
                                         this Agreement;



 


		(v)	the
                                         dissolution, amalgamation or reconstruction of the Purchaser;



 


		(vi)	the
                                         insolvency of, or any other similar proceedings or arrangement in relation to the Purchaser



 


Provided
always and it is agreed by each of the Sellers, the Purchaser and the Guarantor that in the event that the Sellers or any them
releases in writing the Purchaser from any obligation or liability arising under this agreement then such release shall apply
equally to the Guarantor to the effect that following such release, the Guarantor shall not be under any greater obligation to
the Sellers than the Purchaser would be following such release.


 


		6.4	No
                                         Requirement to exhaust remedies against the Purchaser



 


The
obligations and liabilities contained in this Clause may be enforced without the Sellers having first taken any action against
the Purchaser.





 


		6.5	Demands
                                         under this Guarantee



 


The
Sellers may make one or more demands under this clause 6 provided always, and the Seller hereby agrees that, in the case of a
default in respect of the payment of any monetary obligation of the Purchaser under this Agreement, such demand shall not be made
until the date being 10 days after such obligation became due and owing and the Purchaser has remained in default, and in the
case of a non-monetary obligation, until the date being 30 days after such obligation arose.


 


		7.	TAX



 


The
provisions of Schedule 7 (Tax Covenant) shall have effect in relation to tax liabilities of each of the Companies.


 


		8.	PROTECTIVE
                                         COVENANTS



 


The
provisions of Schedule 8 (Protective Covenants) shall have effect following Completion to protect the Purchaser.


 


		9.	DEFINITIONS,
                                         INTERPRETATION AND TERMS AND CONDITIONS



 


The
definitions and rules of interpretation set out in Schedule 12 (Definitions) and the terms and conditions set out in Schedule
11 (Terms and Conditions) shall apply to this Agreement.


 


		10.	POWER
                                         OF ATTORNEY



 


		10.1	Each
                                         of the Sellers declares that until such time as the stock transfer delivered pursuant
                                         to the Purchaser pursuant to Schedule 5 has been duly stamped for stamp duty purposes,
                                         he shall, in respect of any of the Sale Shares after Completion he shall:



 


		(a)	hold
                                         the Sale Shares and the dividends and other distributions of profits or surplus or other
                                         assets declared, paid or made in respect of them after Completion and all rights arising
                                         out of or in connection with them in trust for the Purchaser and any successors in title
                                         to the Purchaser; and



 


		(b)	at
                                         the Purchaser’s cost, deal with and dispose of the Sale Shares and all such dividends,
                                         distributions and rights as are described in clause 3.7(a) as the Purchaser or any
                                         such successor may direct Provided that the Purchaser shall not create or require such
                                         Seller to accept any further obligations or give any warranties or representations or
                                         create any further liabilities in addition to those arising under this agreement for
                                         or on the part of or on behalf of such Seller in relation to such dealing or disposal.



 






    	8



    	 



    

 


		10.2	Each
                                         of the Sellers appoints the Purchaser as his lawful attorney for the purpose of signing
                                         any written resolution (or receiving notices of and attending and voting at all meetings)
                                         of the members of the Company from Completion to the day on which the Purchaser or its
                                         nominee is entered in the register of members of the Company as the holder of the Sale
                                         Shares and for that purpose each of the Sellers authorises:



 


(a)         the
Company to send any written resolutions, notices or other communications in respect of his holding of Sale Shares to the Purchaser;
and


 


(b)         the
Purchaser to complete in such manner as it thinks fit and to return written resolutions, proxy forms, consents to short notice
and any other document required to be signed by him in his capacity as a member,


 


and
this power of attorney (which is given by way of security to secure the performance of obligations owed by the relevant Seller
to the Purchaser under this Agreement) shall be irrevocable.


 





		10.3	The
                                         Purchaser agrees and undertakes to each of the Sellers that it will, as soon as reasonably
                                         practicable following Completion and, in any event, within 30 days, submit to HMRC and
                                         pay all stamp duty due and payable in respect of the transfer of the Sale Shares pursuant
                                         to the stock transfers delivered by each Seller to the Purchaser pursuant to Schedule
                                         5.



 


		11.	Purchaser’s
                                         Warranties and Covenants



 


		11.1	The
                                         Purchaser hereby warrants to each of the Sellers as follows:



 


		11.1.1	The
                                         Purchaser has the requisite capacity and authority to enter into and perform this Agreement
                                         and any other documents that are to be executed by the Purchaser pursuant to this Agreement
                                         (the "Purchaser’s Documents").



 


		11.1.2	This
                                         Agreement and the Purchaser’s Documents will, when executed by the Purchaser, constitute
                                         binding obligations of the Purchaser enforceable in accordance with their respective
                                         terms.



 


		11.1.3	No
                                         consent, approval, authorisation or order of any court of government or local agency
                                         or body or any other person is required by the Purchaser for the execution or implementation
                                         of this Agreement and the Purchaser’s Documents and compliance with the terms of
                                         this Agreement and the Purchaser’s Documents do not:



 


		(a)	conflict
                                         with, result in the breach of or constitute a default under any agreement, instrument
                                         or obligation by which the Purchaser may be bound or any provision of the articles of
                                         association of the Purchaser; or



 


		(b)	result
                                         in the creation, imposition, crystallisation or enforcement of any Encumbrance on, over
                                         or affecting any of the assets of the Purchaser.



 


		11.2	The
                                         Purchaser hereby covenants to each of the Sellers that:



 


		11.2.1	no
                                         administration order has been made, no petition for one has been presented and no notice
                                         of intention to appoint an administrator has been given in respect of the Purchaser;



 


		11.2.2	no
                                         administrator, receiver or administrative receiver has been appointed in respect of the
                                         Purchaser or any of its assets and no application for the appointment of an administrator
                                         has been made by the Purchaser or any
                                         of its shareholders in accordance with the out of court procedure under the Enterprise
                                         Act 2002;



 


		11.2.3	the
                                         Purchaser has not failed, nor is unable,
                                         to pay any of its debts as they fall due, within the meaning of section 123 of
                                         the Insolvency Act 1986;



 


		11.2.4	no
                                         voluntary arrangement has been proposed under section 1 of the Insolvency Act 1986 in
                                         respect of the Purchaser and the Purchaser has not made or proposed any arrangement or
                                         composition with its creditors or any class of them;



 


		11.2.5	no
                                         steps have been taken to obtain a moratorium under Schedule A1 of the Insolvency Act
                                         1986 or otherwise in respect of the Purchaser;



 


		11.2.6	no
                                         distress, execution or other process has been levied on Purchaser’s assets or action
                                         taken at the Purchaser’s address
                                         to repossess goods in the possession of the Purchaser;



 






    	9



    	 



    

 


		11.2.7	no
                                         unsatisfied judgment is outstanding against the Purchaser and no demand has been served
                                         on the Purchaser under section 123(1)(a) of the Insolvency Act 1986;



 


		11.2.8	no
                                         meeting to approve a compromise or scheme of arrangement under the Companies Act 2006
                                         has been convened and no such compromise or scheme has been agreed to or sanctioned in
                                         respect of the Purchaser;



 


		11.2.9	has
                                         not entered into any compromise or arrangement with its creditors or any class of its
                                         creditors generally;



 


		11.2.10	the
                                         Purchaser is not insolvent according to any laws in any relevant jurisdiction









 


and
the transfer of the Sale Shares to the Purchaser and the agreement of the Sellers to effect such transfer in accordance with the
terms and conditions of this Agreement shall be deemed to include expressly and be made subject to all the above provisions of
this clause 11.


 


IN WITNESS
of which this Agreement has been executed and delivered as a deed by the parties on the date at the beginning of this Agreement.


 




    	10



    	 



    

 


SCHEDULE
1


 


PART 1
– The Sellers, their Shareholdings and Consideration


 


	Shareholder	 	Shares	 	Ownership
    Percentage	 	Cash
    Consideration

    payable
	Hugh Doherty	 	2,468
        ordinary shares of 5p each

        2,750
        deferred ordinary shares of 5p each

         
	 	2.525%
        of ordinary shares of 5p each

        50%
        of deferred ordinary shares of 5p each
	 	£127,500

        £1

	Laurence Seymour	 	2,468
        ordinary shares of 5p each

        2750
        deferred ordinary shares of 5p each

         
	 	2.525%
        of ordinary shares of 5p each

        50%
        of deferred ordinary shares of 5p each
	 	£127,500

        £1



 




    	11



    	 



    

 


PART 2

The Guarantors


 


	Guarantor	 	Address
	Oliver Bengough	 	
	TRINAD Capital Master Fund Limited	 	
	OBAR Camden Limited	 	


 


 




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Schedule
3

The Warranties


 


Unless
the context otherwise requires, references in this Schedule 3 to the "Company" shall mean the Company and the Subsidiary.


 


1.            Company
and Subsidiary 


 


1.1           The
information in parts 1 and 2 of Schedule 2 relating to the Company and the Subsidiary respectively is true and accurate.


 


1.2           The
Company has not allotted or issued any securities that are convertible into shares of the Company.


 


1.3           No
shares of the Company have been issued and no transfer of shares in the Company has been registered, except in accordance with
applicable law and the then applicable articles of association or other constitutional documents of the Company;


 


1.4           There
has been no transaction pursuant to or as a result of which; (i) any of the shares of the Company; or (ii) any asset owned, purportedly
owned or otherwise held by the Company is liable to be transferred or re-transferred to another person or which gives or may give
rise to a right of compensation or other payment in favour of another person under the law of any relevant jurisdiction.


 


1.5           No
transaction at an undervalue (within the meaning of Section 423 of the Insolvency Act 1986) (a) relating to any of the shares
of the Company or (b) to which the Company has been a party, has been effected prior to the date of this Agreement.


 


1.6           The
Company has not at any time:


 


(a)           issued
any loan capital;


 


(b)          reduced
its share capital;


 


(c)          redeemed
any share capital;


 


(d)          purchased
any of its shares; or


 


(e)          forfeited
any of its shares (or taken a surrender in lieu of any forfeiture).


 


1.7           The
Company has not directly or indirectly provided any financial assistance for the purpose of the acquisition of shares in breach
of the provisions of the Companies Acts.


 


1.8           The
Company is not, nor has it agreed to become, bound by any guarantee, indemnity, surety or similar commitment.


 


1.9           The
Company does not act or carry on business in partnership with any other person and is not a member of any corporate or unincorporated
body, undertaking or association.


 


1.10         The
Company is not a party to any joint venture agreement or arrangement or any agreement or arrangement under which it is to participate
with any other person in any business.


 


1.11         The
Company has never had any subsidiary or held any interest in any shares in any other company other than the Subsidiary.


 


1.12         The
Subsidiary has never held any interest in any shares in any other company.


 


2.            Arrangements
with the Seller


 





2.1           During
the three year period prior to the date of this Agreement there were no, and there are not currently outstanding, any contracts,
agreements or arrangements (including, without limitation, customer and supply contracts) to which the Company is a party and
in which any director or shareholder of the Company or any person connected with any of them is interested (and for the purposes
of this paragraph a person shall be deemed to be interested in a contract if, were he a director of the Company, he would be interested
in that contract for the purposes of section 177 of the Companies Act).


 


2.2           The
business of the Company does not depend on the use of assets owned by or facilities or services provided by either Seller (other
than those services which are to be provided pursuant to the Transitional Services
Agreement or which may be provided by a Seller in his capacity as an officer or employee of the Company) which are not
being acquired pursuant to this Agreement. 





 






    	13



    	 



    

 


3.             Insolvency
of the Company


 








3.1           No
order has been made, no resolution has been passed, no petition has been presented and no meeting has been convened for the winding
up of the Company or for a provisional liquidator to be appointed in respect of the Company and the Company has not been a party
to any transaction which could be avoided in a winding up.


 


3.2           No
administration order has been made, no petition for one has been presented and no notice of intention to appoint an administrator
has been given in respect of the Company.


 


3.3           No
administrator, receiver or administrative receiver has been appointed in respect of the Company or any of its assets. No application
for the appointment of an administrator has been made by the Company or either
of the Sellers in accordance with the out of court procedure under the Enterprise Act 2002.


 


3.4           The
Company has not failed, nor is unable,
to pay any of its debts as they fall due, within the meaning of section 123 of the Insolvency Act 1986.


 


3.5           No
voluntary arrangement has been proposed under section 1 of the Insolvency Act 1986 in respect of the Company and the Company has
not made or proposed any arrangement or composition with its creditors or any class of them.


 


3.6           No
steps have been taken to obtain a moratorium under Schedule A1 of the Insolvency Act 1986 or otherwise in respect of the Company.


 


3.7           No
distress, execution or other process has been levied on the Company's assets or action taken
at the Company’s address to repossess goods in the possession of the Company.


 


3.8           No
unsatisfied judgment is outstanding against the Company and no demand has been served on the Company under section 123(1)(a) of
the Insolvency Act 1986.


 


3.9           No
meeting to approve a compromise or scheme of arrangement under the Companies Act 2006 has been convened and no such compromise
or scheme has been agreed to or sanctioned in respect of the Company.


 


3.10         The
Company has not entered into any compromise or arrangement with its creditors or any class of its creditors generally.


 


3.11         The
Company is not bankrupt or insolvent within the meaning of any applicable law.


 


4.             Statutory
books and documents filed


 


4.1           The
statutory books, including all registers and minute books, of the Company have been properly kept and are up to date and contain
an accurate and complete record of the matters with which those books should deal. No notice or allegation has been received that
any such books or registers are incomplete or incorrect or should be rectified.


 


4.2           All
documents which should have been delivered by the Company to the Registrar of Companies in England and Wales are complete and
accurate and have been properly so delivered in accordance with any time-scale provided for such delivery.





 


4.3           The
copy of the memorandum and articles of association of the Company Disclosed is currently in force, has embodied in it or annexed
to it a copy of each resolution as referred to in section 29 of the Companies Act 2006, is accurate and complete in all respects
and fully sets out the rights and restrictions attaching to each class of shares in the Company.


 


4.4           Since
the Accounts Date the members of the Company in general meeting, or of any class of them, have not passed any resolution.


 


5.             Accounts



 


5.1           The
Accounts have been prepared in all material respects in accordance with the
United Kingdom Generally Accepted Accounting Practice and applicable laws and show a true and fair view of and accurately reflect
the state of affairs and the financial position of the Company as at the Accounts Date and the profits/losses of the Company for
the financial year ended on that date.


 


5.2           Since
the Accounts Date, the Company has carried on its business in the ordinary and usual course and there has been no material adverse
change in the financial or trading position of the Company and, so far as the Sellers are aware, no fact, matter, event or circumstance
has occurred which they are aware will give rise to any such change,
which fact, matter, event or circumstance is specific to the Company only.


 






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5.3           The
Management Accounts (a copy of which is attached to the Disclosure Letter):


 


(a)          have
been prepared on a prudent basis consistent with the basis for the preparation of the management accounts for the Subsidiary over
the period since the Subsidiary became a subsidiary of the Company; and


 


(b)          so
far as the Sellers are aware, contain no material errors or omissions.


 


6.            
Property 


 


6.1           Schedule
10 contains a list of the real estate owned, controlled, used or occupied by the Company or in which the Company has any interest
or liability (whether actual or contingent) and the information given in Schedule 10 is complete and accurate.


 


6.2           The
written replies given by the Sellers or the Sellers' Solicitors to any written enquiries raised in respect of the Property were,
so far as the Sellers are aware complete and accurate in all material respects
and contain no material omissions as at the date they were given and so far
as the Sellers are aware, no fact, matter, event or circumstance has occurred which
the Sellers are aware would result in any material changes to such replies. In this paragraph, the expression "written"
shall include e-mail.


 


6.3           The
Company has not given any guarantee or indemnity for any liability relating to the Property.


 


6.4           In
relation to the Lease, the parties thereto have observed and performed in all material respects all covenants, restrictions, stipulations
and other encumbrances and there has not been (expressly or impliedly) any waiver of or acquiescence to any breach of them.


 


6.5           In
relation to the Lease, all principal rent and additional rent and all other sums payable by the Company ("Lease Sums")
have been paid as and when they became due and no Lease Sums have been:


 


(a)          set
off or withheld; or


 


(b)          commuted,
waived or paid in advance of the due date for payment.


 


6.6           There
is no pending rent review under the Lease.


 





6.7           The
Deed of Variation dated 7 December 2004 (between the Company, CGIS Camden Palace Limited and Scottish Courage Limited) which effected
a variation of the Lease did not oblige the Company (nor any party connected with it) to pay rent under the Lease prior to 1 July
2005 (being the ‘Rent Commencement Date’ as defined in the Lease), and was not treated as so obliging the Company
or any party connected with it and, for the avoidance of doubt, neither the Company nor any party connected with it did otherwise
pay rent in relation to the Lease prior to 1 July 2005.


 


6.8           The
Company properly pays Value Added Tax on rents due under the Lease because the landlord under the lease has made an option to
tax (or an election to waive exemption) in relation to the Property.


 


7.             Assets
and Contracts


 


7.1           So
far as the Sellers are aware, there are no assets used by the Company
and which are necessary for the operation of the business which are not owned by the Company, and the facilities and services
to which the Company has a contractual right, include all rights, properties, assets, facilities and services necessary to enable
the Company to carry on its business in the manner in which it is currently carried on


 


7.2           Complete
and accurate copies of the Material Contracts (being all contracts with which annual
costs or revenue exceeds £10,000 or are otherwise material in the context of the business) being the contracts listed in
Schedule 14 have been Disclosed.


 


8.             Compliance
and Litigation


 


8.1           So
far as the Sellers are aware the Company and its officers and employees (past and present) in the course of their respective duties
have complied in all material respects with all applicable laws and regulations of the United Kingdom (including in respect of
immigration compliance).


 


8.2           The
Subsidiary has: 


 


		(a)	obtained
and maintained in full force and effect and paid all sums due in respect of:



 






    	15



    	 



    

 


		(i)	a
Premises Licence granted under the Licensing Act 2003 in respect of the Property authorising the licensable activities comprising
the sale of alcohol, the provision of late night refreshment and the provision of regulated entertainment comprising of live music,
recorded music, dancing and the showing of film;



 


		(ii)	a
licence from Phonographic Performance Limited in relation to the playing in public of sound recordings; and



 


		(iii)	a
licence from the Performing Rights Society for the playing in public of copyrighted music (together the “Licences”);



 


		(b)	not
received any notice that there has been any breach of the terms and conditions of the Licences and the Seller is not aware of
any fact, matter or circumstance which he is aware is likely to lead to the Licences being breached, withdrawn or terminated by
the relevant issuing authority or body.



 


8.3           There
is no other material licence, approval or authority (other than the Licences referred to in paragraph 8,2 above) which is necessary
for the operation of the business of the Subsidiary as currently conducted by the Subsidiary.


 


8.4           The
Company has not received any notice in writing from any authority with statutory powers to enforce the same, that the Company
does not have, or is otherwise in material breach of, nor is the Seller aware of any circumstances which might result in the revocation
of any of the licences, consents, approvals, permissions, permits, certificates, qualifications, registrations and other
authorisations (public and private) necessary for the operation of its business in the manner in which it is currently carried
on.


 





8.5           Neither
the Company nor the Seller is involved in any civil, criminal, or arbitration
proceedings in relation to the business and which would involve any appearance before
any court, tribunal or similar body with the authority to make orders which are legally binding on the Company or the relevant
director in any jurisdiction (together the "Proceedings") and so
far as the Seller is aware:


 


(a)          no
Proceedings nor any notice in writing threatening any such Proceedings against the Company have
been received by the Company; and


 


(b)          there
are no facts or circumstances which the Seller is aware will give rise
to any such Proceedings being commenced by or against the Company.


 


9.            Employees


 


9.1           The
schedule of the employees of the Company that has been Disclosed includes complete and accurate details of all the employees of
the Company. No change to the remuneration or benefits of the employees is due or expected within six months from the date of
this Agreement. The Company has not made any outstanding offer nor agreed to employ any person who is not an employee of the Company
at the date of this Agreement.


 


9.2           Complete
and accurate details of the terms and conditions of employment, including all remuneration, incentive arrangements and other benefits,
for any employee of the Company who is paid more than £50,000 per annum
have been Disclosed. No employees are entitled to receive a bonus or other incentive payment or benefit.


 


9.3           Other
than salary for the current months, reimbursement of out-of-pocket expenses and pay in respect of accrued but untaken holiday
for the current holiday year, no amount is owing to any present or former officer, employee or worker of the Company.


 


9.4           So
far as the Sellers are aware the Company has complied in all material respects
at all relevant times with:


 


(a)                  all
its obligations under the Employment Legislation; and


 


(b)                 all
its obligations to applicants for employment, its employees and workers and former employees and workers.


 


9.5           The
Company has not offered, promised or agreed to vary the terms of employment of any of its officers or employees.


 






    	16



    	 



    

 


9.6           The
Company does not operate or contribute (and has never operated or contributed) to a pension scheme or any like arrangement, save
to the extent required by law. Full details of all pension schemes operated by the Company are set out in the Disclosure Letter.


 


9.7           Details
of any existing consultancy and outsource service arrangements entered into by the Company have been Disclosed.


 


9.8           The
Company has obtained and maintained full and complete records in relation to each of its employees' eligibility to work for the
Company in the United Kingdom in accordance with the provisions of the Immigration Acts which were in force on the date when each
individual's period of continuous employment with the Company commenced.


 


9.9           All
employees of the Company have valid and subsisting permission or authority to remain in the UK and work for the Company and in
relation to any senior employee earning £50,000 per annum or more, no such permission or authority will expire within
the next six (6) months.


 


9.10         So
far as the Sellers are aware, no individual is currently employed or engaged in such a way or in such a role that could
expose the Company to or render it liable for a penalty (whether civil or criminal) under the Immigration Acts.


 


9.11         No
employee or worker of the Company is, or has within the last three years been, involved in any criminal proceedings relating to
the business of the Company.





 


9.12         No
officer or employee of the Company earning over £50,000 per annum has
given notice of resignation or is under notice of dismissal, nor is there any plan or proposal to dismiss any officer
such employee and so far as the Sellers are aware no notice has been received
from such an employee whereby he or she
proposes to resign from his or her employment.


 


10.           Indebtedness


 


10.1         The
Company has no liability or contingent liability under any guarantee, indemnity or other agreement to secure or incur a financial
or other obligation relating to the failure of another person to perform its obligations.


 


10.2         No
part of the borrowings or indebtedness in the nature of borrowings of the Company is dependent on the guarantee or indemnity of,
or security provided by, another person. No contract or arrangement to which the Company is party is dependent on the guarantee
or indemnity of, or security provided by, another person.


 


10.3         The
Disclosure Letter contains full details of each of the investment, deposit and bank accounts maintained by or on behalf of the
Company and of the banks and other financial institutions at which they are kept.


 


		10.4	Neither the Company nor the
Subsidiary have any overdraft, loan or other financial facilities or any similar arrangement in the nature of borrowings from
any banks or financial institutions.



 


11.          Insurances


 


11.1         Copies
of the insurance policies maintained by the Company ("Policies" and each a "Policy") have been
Disclosed.


 


11.2         All
premiums due under the Policies have been paid


 


11.3         There
are no outstanding claims and so far as the Seller is aware nothing has occurred which
they are aware will result in a claim being made under the Policies or which
they consider would be required to be notified to the insurers and so far as
the Seller is aware, nothing has been done or omitted to be done which they
are aware has made or will make any Policy void or voidable or as a result
of which the renewal of any Policy might be refused or the premiums due in respect of them may be liable to be materially
increased.


 


11.4         None
of the Policies will cease to be available as a result of Completion.


 


11.5         The
Company has at all times maintained all insurances which it is required by law to carry and all such insurances continue in full
force and effect.





 






    	17



    	 



    

 


12.           Intellectual
Property


 


12.1         Complete
and accurate details of all registered Intellectual Property Rights owned and/or
used by the Company and copies of all licences and other agreements relating to Intellectual
Property Rights are contained in the Disclosure Letter.


 


12.2         All
registered Intellectual Property Rights owned by the Company (including the
domain names listed in Schedule 13 are in the sole legal and beneficial ownership of the Company free from all licences, charges
or other encumbrances and in either case so far as the Sellers are actually aware nothing
has been done or omitted to be done whether by the Company or by any person which would jeopardise the validity, enforceability
or subsistence of any Intellectual Property Rights


 


12.3         All
Intellectual Property Rights which are material to the operations of the Company and which are owned by third parties are the
subject of binding and enforceable licences from third parties in favour of the Company





 


		(i)	of which none will terminate,
or be liable be to terminated by the other party to such licence, by virtue of this Agreement, and of which no notice to terminate
has been received;



 


		(ii)	all parties to which have
fully complied with all obligations in those licences; and



 


		(iii)	in relation to which no claim,
dispute or proceeding has arisen or is foreseeable;



 


and
in either case nothing has been done or omitted to be done whether by the Company or as far as the Sellers are aware by any person
who would jeopardise the validity, enforceability or subsistence of any such licence.


 


12.4         Any
Intellectual Property Rights and domain names owned and/or used by the Company which are capable of registration have been
registered or are the subject of an application for registration, and is or will when duly registered be valid, binding and enforceable
and:


 


(a)          in
the case of registrations, all renewal fees have been paid and renewals made by their due date and all such action necessary to
preserve and maintain the registration has been taken;


 


(b)          in
the case of registrations contained in the Disclosure Letter each is presently used by the Group and is in full force and effect
and has not been abandoned;


 


(c)          in
the case of pending applications, the Sellers are aware of no reason why any such applications should not proceed to grant;


 


(d)          none
of the Intellectual Property Rights are subject to any use, claim, application, proceeding or attack by any other person; and


 


(e)          nothing
is required to be done in relation to any such Intellectual Property Right within 30 days of the date of this Agreement the omission
of which would jeopardise the Company's rights in relation to that Intellectual Property Right.


 


12.5         No
licences, registered user or other rights have been granted or agreed to be granted by the Company to any person in respect of
any registered Intellectual Property Rights, except as Disclosed.


 


12.6         Except
where the Company has a valid and subsisting licence to do so, the Company does not use any Intellectual Property Rights in respect
of which any third party has any right, title or interest, and all such licences are Disclosed.


 


12.7         So
far as the Sellers are aware, at no time during the past 2 years has there been any unauthorised use or infringement by any person
of any Intellectual Property Rights or domain names owned and/or used by the Company which may jeopardise the validity or subsistence
of such Intellectual Property Rights or agreements relating to the same.


 


12.8         So
far as the Sellers are actually aware none of the processes employed, or products or services dealt in, by the Company
infringes any rights of any third party relating to intellectual property nor makes the Company liable to pay a fee or royalty
and no claims have been made, threatened or are pending, in relation to any Intellectual Property Rights against the Company.


 


12.9         Except
in the ordinary course of business and on a confidential basis (and for the avoidance of doubt this includes disclosure to professional
advisors), no disclosure has been made of any of the confidential information, Intellectual Property, financial or trade secrets
or customer or supplier lists of the Company.


 






    	18



    	 



    

 


12.10       In
accordance with paragraph 12.9 above, any agreements or arrangements relating to the confidentiality of information are valid
and enforceable.


 


12.11      Any
names used by the Company other than its corporate name are contained in the Disclosure Letter and do not infringe the rights
of any person.





 


12.12      The
Company does not use any software products, materials or IT systems which incorporate, contain or use in any manner (in whole
or in part) any open source or general public licence materials.


 


12.13      The
Company has not:


 


(a)          incorporated
or combined open source or general public licence materials with the Intellectual Property Rights; or


 


(b)          distributed
or licensed open source or general public licence materials in conjunction with any Intellectual Property Rights.


 


13.           Other


 


The
Company is not liable to pay, in connection with the sale of any of the Sale Shares or otherwise in connection with this Agreement
or the transactions contemplated by this Agreement:


 


(a)          any
success or other fee, brokerage, commission or like payment; or


 


(b)          any
sum whatsoever to any of its directors, employees, agents or advisers (past or present).


 


14.          Effect
of this Agreement


 


The
execution and delivery of, and compliance with the terms of, this Agreement does not and will not:


 


(a)          conflict
with or result in a breach of or constitute a default under any of the terms, conditions or provisions of any agreement or instrument
to which the Company or the Seller is a party;


 


(b)          relieve
any person from any obligation to the Company (whether contractual or otherwise) or enable any person to determine any such obligation
or any right or benefit enjoyed by the Company or to exercise any right whether under an agreement with or otherwise in respect
of the Company;


 


(c)          result
in the creation, imposition, crystallisation or enforcement of any Encumbrance on any of the Sale Shares or on any of the assets
of the Company; or


 


(d)          result
in any present or future indebtedness of the Company becoming due or capable of being declared due and payable prior to its stated
maturity.


 


15.          Accuracy
of Information


 


All
information contained in replies to written enquiries raised by the Purchaser or its professional advisers with the Sellers or
their professional advisers in relation to the Company or its affairs, assets or liabilities are true and accurate in all material
respects at the time that the information was given and so far as the Sellers are aware there is no other fact, matter or circumstance
which renders any such information misleading.


 


16.          Tax


 


16.1         Provision
or reserve (as appropriate) has been made in the Accounts for all Taxation liable to be assessed on the Company or for which the
Company is accountable in respect of all Profits earned, accrued or received on or before the Accounts Date, and in respect of
any Event occurring or deemed to have occurred on or before the Accounts Date. Since the Accounts Date no Taxation has or may
have arisen to the Company (or would have arisen but for the use of any available reliefs) other than in the ordinary course of
the Company's business.


 


16.2         The
Company has made all returns, claims for relief, applications, notifications, computations, reports, accounts, statements, supplies
of information, registrations and assessments ("Returns") it is or was required by law to submit to a Taxation
Authority. All Returns have been in the required form and have been properly submitted by the Company within any relevant time
limits. The Returns were and remain complete, true and accurate and give full disclosure of all material facts and circumstances.
The Company has prepared, kept and preserved full and sufficient records as required by law and to enable it to deliver correct
and complete Returns and to calculate any present or, so far as possible, future liability for Taxation of the Company
in respect of assets held at Completion. Such records are accurate and up-to-date.


 




    	19



    	 



    

  


16.3         The
Company has paid by the due date all Taxation which it has become liable to
pay. The Company has, where legally obliged to do so, deducted or withheld amounts in respect of Taxation and has accounted by
the due date to the relevant Taxation Authority for the Taxation so deducted or withheld.


 


16.4         The
Company has not, within the last four
years, paid or become liable to pay, nor so far as the Sellers are aware
are there any circumstances which may cause the Company to become liable to
pay, any penalty, fine, surcharge or interest in connection with Taxation. The Company is not and has not within the last six
years been, and is not so far as the Sellers are aware likely to be, involved in a dispute
(which term does not include a routine audit) in relation to Taxation.


 


16.5         The
entry into or Completion of this Agreement will not result in any charge to Tax on the Company pursuant to section 179 of the
Taxation of Chargeable Gains Act 1992 or section 780 of the Corporation Tax Act 2009 or otherwise.


 


16.6         The
Company has not entered into any election pursuant to sections 171A or 179A of the Taxation of Chargeable Gains Act 1992 or section
792 of the Corporation Tax Act 2009.


 


16.7         There
are set out in the Disclosure Letter (with express reference to this paragraph) particulars of all
current arrangements relating to Group Relief to which the Company is a party including
particulars of all claims for Group Relief which have been made within the last 4
years and:


 


		(a)	details of any payment which
the Company has made or is liable to make under any arrangement or agreement for the surrender of group relief to that group company;
and



 


		(b)	all payments due to the Company
under any arrangement or agreement for surrender of Group Relief by it for periods ending on or prior to Completion.



 


16.8         The
Company is not, and has not in the last 4 years been, party to any group payment arrangements under sections 59F to 59H
of the Taxes Management Act.


 


16.9         The
Company is a registered and taxable person for the purposes of the Value Added Tax Act 1994, such registration not being pursuant
to paragraph 2 Schedule 1 Value Added Tax Act 1994 and not subject to any conditions imposed by or agreed with HM Revenue &
Customs.


 


16.10         There
is set out in the Disclosure Letter with express reference to this warranty full details of any option to tax exercised by the
Company under Part 1 schedule 10 of the Value Added Tax Act 1994. All such elections have full effect and none is likely to be
ineffective by virtue of paragraph 12 schedule 10 of the Value Added Tax Act 1994.


 


16.11         No
person has acquired any securities, any securities option or any interest in securities (in each case, within the meaning of Part
7 of the Income Tax (Earnings and Pensions) Act 2003) where the right or opportunity to acquire the same is or was available by
reason of an employment of that or any other person for the purposes of that Part.


 


16.12         No
relevant steps (within the meaning of Part
7A of the Income Tax (Earnings and Pensions) Act 2003) have been taken in pursuance
of, or has some connection with, arrangements concerned with the provision of rewards or recognition or loans in connection with
any employee or former employee (or any associate of such person) of the Company.


 


16.13         The
Disclosure Letter contains details of all land transactions (as defined in section 43 of the Finance Act 2003) to which the Company
was a party, and of all interests which the Company holds in land, in respect of which the Company may have any future obligations
relating to stamp duty land tax under Schedule 17A of the Finance Act 2003.





 


16.14         The
Company was incorporated in, and is and always has been resident in, the United Kingdom for taxation purposes and is not and has
never been resident or treated as resident or has or has had a branch, agency or permanent establishment in any other jurisdiction
(or constitutes or has constituted an agent or permanent establishment of any person) for any tax purpose or for the purposes
of any double taxation agreement. The Company is not liable to, and so far as the Sellers are aware, has at no time incurred any,
Taxation in any jurisdiction other than the United Kingdom.


 


16.15         The
Company is a close company within the meaning of section 439 of the Corporation Tax Act 2010. The Company has never been a close
investment-holding company (as defined in Section 34 of the Corporation Tax Act 2010).


 






    	20



    	 



    

 


16.16         No
loan or advance within sections 455, 459 and 460 of the Corporation Tax Act 2010 has been made or released by the Company and
there is no agreement or arrangement for such loan advance or debt to be made or released. The Company has not met any expenses
for participators treated as a distribution by virtue of section 1064 of the Corporation Tax Act 2010 and there has been no alteration
of the share or loan capital of the Company within section 98 of the Inheritance Tax Act 1984 ("IHTA").The Company
has not made any transfers of value within sections 94 and 202 of the IHTA, nor has it received any value such that a liability
might arise under section 199 of the IHTA, nor has it been a party to associated operations in relation to a transfer of value
as defined in section 268 of the IHTA.


 


16.17         No
person has acquired any securities, any securities option or any interest in securities (in each case, within the meaning of Part
7 of the Income Tax (Earnings and Pensions) Act 2003) where the right or opportunity to acquire the same is or was available by
reason of an employment of that or any other person for the purposes of that Part.


 


16.18         The
Company has not received any asset as mentioned in section 282 of the TCGA.


 


16.19         So
far as the Sellers are aware, there are no circumstances whereby any such power as is mentioned in section 212 of the IHTA could
be exercised in relation to any shares in, securities of, or assets of the Company.


 


16.20         There
is no unsatisfied inheritance tax liability attached to the Sale Shares or any asset of the Company and none of them are subject
to any HMRC charge as mentioned in section 237 and 238 of the IHTA.


 


16.21         So
far as the Seller are aware, all arrangements, transactions or series of transactions between the Company and any person
connected to or associated with the Company have been and are on arm's length terms, and the Company is not, nor has it
been, liable to have its profits for Tax purposes adjusted pursuant to Part
4 of the Taxation (International and Other Provisions) Act 2010 (provisions not at arm's length).


 


16.22         The
Company has not been involved in a demerger to which a chargeable payment under Chapter 5 of Part 23 of the Corporation Tax Act
2010 could arise.


 




    	21



    	 



    

 


Schedule
4

Adjustment to the Consideration


 


Part 1
- Calculation of Adjustment


 


In this Schedule,
unless the context otherwise requires:


 


"Adjustment"
means the amount calculated and payable in cash by the Purchaser or the Sellers (as the case may be) in accordance with this Schedule
4;


 


“Company’s
auditors” for the purposes of this Schedule 4 shall be the auditors of the Company current as at the Completion Date;


 


“Completion
Balance Sheet” has the meaning given to it in paragraph 5(a) below;


 


"Net
Working Capital" has the meaning given to it in paragraph 2 below; and


 


"Net
Working Capital Statement" has the meaning given to it in paragraph 5(d) below.


 


		1.	The Adjustment to the Consideration
shall be calculated and payable as follows:



 


		(a)	if the Net Working Capital
is more than £57,000 the Adjustment payable by the Purchaser to each of the Sellers shall be equal to 2.525% of the amount
by which Net Working Capital is more than £47,000; and



 


		(b)	if the Net Working Capital
is less than of £37,000 (i.e the deficit in Net Working Capital is more than £10,000 below the target Net Working
Capital of £47,000) the Adjustment repayable to the Purchaser by each of the Sellers shall be equal to 2.525% of the amount
by which the Net Working Capital is less than £47,000



 


Provided
always that no sum will be due and payable unless and until Completion has been effected under this Agreement in accordance with
Clause 3 and Schedule 5


 


		2.	For this purpose, "Net
Working Capital" means the consolidated net working capital of the Company and the Subsidiary as at the date of this
agreement as adjusted and ascertained in accordance with the following provisions of this Schedule 4 and set out in the agreed
or determined Net Working Capital Statement;



 


		3.	The Net Working Capital shall
be ascertained from the Completion Balance Statement which shall be prepared:



 


		(a)	in accordance with the specific
accounting treatments set out in Paragraph 5(c) of this Schedule 4; and, subject thereto.



 


		(b)	subject
to paragraph 5(c) of this Schedule 4, in accordance with the treatments, methods, practices, policies and principles adopted by
the Company and the Subsidiary for the preparation of the Accounts (and for the avoidance of doubt containing a general provision
for Taxation);



 


		(c)	insofar
as no treatment, method, practice, policy or principal previously adopted in the Accounts as referred to in (b) above, such, treatment,
method, practice, policy or principal which complies with generally accepted accounting principles
applied in the UK, incorporating Statements of Standard Accounting Practice, Financial Reporting Standards and Urgent Issues Task
Force Abstracts issued by the Accounting Standards Board including in relation to the exercise of accounting discretion and judgement.



 


		4.	For the avoidance of doubt:



 


		(a)	paragraph 3(a) shall take
precedence over paragraphs 3(b) and  3(c); and



		(b)	paragraph 3(b) shall take
precedence over paragraph 3(c).



 


		5.	For the purposes of calculating
the Net Working Capital:



 


		(a)	the parties in conjunction
with Alex Rutherford and Oliver Bengough shall undertake a joint stock take
of the Subsidiary in the morning of the day immediately following the date of
this Agreement to ascertain the level of stock in the Subsidiary and the Sellers shall in conjunction with Alex Rutherford and
Oliver Bengough procure as soon as practicable (and in any event no later than 30 days after the date of this Agreement) the preparation
of a consolidated balance sheet of the Companies as at the date of this Agreement in the form set out in part 3 of this Schedule
4 and otherwise in accordance with this Schedule (the "Completion Balance Sheet") which shall be prepared by
the Sellers in conjunction with Alex Rutherford and Oliver Bengough and have been approved by the Companies
auditors;



 






    	22



    	 



    

 


		(b)	the Completion Balance Sheet
shall only take account of information available to the parties at the date of delivery of the Net Working Capital Statement from
the Sellers to the Purchaser in accordance with paragraph 6 below (the "First
Delivery Date") and not take account of any event happening after the First Delivery Date (except in relation to information
known to the parties about that event at the First Delivery Date);



 


		(c)	the Completion Balance Sheet
shall not take account of:



 


(i)          any
event happening after Completion (save that information allowing a more accurate quantification of a liability which existed on
or before Completion will be taken into account to the extent that such information is available at the First Delivery Date; and


 


(ii)         any
matter arising from the change of control of the Company effected by the sale of the Sale Shares and the sale by Alex Rutherford
and Oliver Bengough of the other shares in the Company to the Purchaser.


 


		(d)	for the purposes of preparing
the Completion Balance Sheet:



 


		(i)	a provision of £7,500
will be made for any stamp duty land tax payable in relation to a Deed of Variation dated 7 December 2004 between the Company,
CGIS Camden Palace Limited and Scottish Courage Limited which effected a variation to the Lease to the extent that the relevant
stamp duty land tax has not been paid such amount to include any penalties and interest payable in respect of the late payment
of such sum (calculated in reliance on the warranty at Schedule 3 paragraph 6.7 and without prejudice to any claim by the Purchaser
under the Tax Covenant or otherwise);



 


		(ii)	a liability shall be included
in the Completion Balance Sheet for any corporation tax on any income, profits or gains earned, accrued or received by the Companies
on or before the date of this Agreement calculated as if the Completion Date were the end of an accounting period of the Companies;



 


		(iii)	no asset or liability shall
be recorded in the Completion Balance Sheet in respect of deferred tax;



 


		(iv)	stock-in-trade shall be valued
at the lower of cost (excluding the cost of warehousing, selling, distribution and administration) and market value (which shall
itself be taken as the lower of net realisable value and replacement cost);



 


		(v)	normal adjustments and allowances
will be made for unusable, unsaleable or deteriorated stocks;
	 	 	 
		(vi)	the unamortised amount of
the contribution by the landlord of the Property by way of any rent free period under the lease of the Property and any contributions
towards the refurbishment of the premises shall be excluded from the calculation of the Net Working Capital;
	 	 	 
		(vii)	appropriate provisions will
be made for bad or doubtful debts;



 




    	23



    	 



    











 


		(viii)	an accrual shall be included
in the Completion Balance Sheet for VAT, general sales tax or other similar sales taxes, payroll taxes (including national insurance
contributions) and any tax penalty payments and interest charges thereon where a notice has been raised by HMRC or the relevant
payment was paid late or overdue as of the date of this Agreement; and



 


		(ix)	such further provisions, adjustments
and allowances will be made as the Company’s auditors agree to be appropriate.



 


		(e)	the Company’s
auditors shall be instructed to certify the calculations of the Net Working Capital (based on the amounts shown in the Completion
Balance Sheet) and produce a certified statement of the Net Working Capital (the “Net Working Capital Statement”).



 


		6.	The Sellers
in conjunction with Alex Rutherford shall procure that there is delivered to the Purchaser
a copy of the Net Working Capital Statement and the Completion Balance Sheet as soon as reasonably practicable after they
are prepared and in any event not later than the date falling 30 days after the date of this agreement. If the Sellers and Alex
Rutherford fail to comply with his obligations under this paragraph, the Purchaser will automatically have the right to produce
(in conjunction with the Company’s auditors and at the Sellers’ cost) the Net Working Capital Statement and the provisions
of this schedule shall be read mutatis mutandis.



 


		7.	Within 30 Business Days of
delivery of the certified statement referred to in Paragraph 6, the Purchaser
may notify the Sellers in writing of any item or items it wishes to dispute,
failing which the Net Working Capital Statement shall be final and binding on the parties.



 


		8.	If the amount of the Net Working
Capital Statement is disputed in accordance with Paragraph 7,
the item or items in dispute shall be determined by:



 


		(a)	such firm of independent
chartered accountants as the parties may agree in writing; or



 


		(b)	failing agreement on the identity
of the firm of independent chartered accountants within a further seven days
from the expiry of the period referred to above in paragraph 7, such firm of chartered accountants as may be appointed for this
purpose on the application of any party to this Agreement by the President for the time being of the Institute of Chartered Accountants
in England and Wales.



 


		9.	The Adjustment shall be payable
within 21 days of its being ascertained under the above provisions.



 


		10.	If
there is a shortfall such that the Net Working Capital is less than £37,000 the Adjustment
shall be paid by payment to the Purchaser’s Solicitors Client Account or such
other account as the Purchaser may notify in writing to the Sellers in immediately available funds by electronic transfer
under the CHAPS system.



 








		11.	If
the Net Working Capital is more than £57,000 the Adjustment shall be paid by payment to the Seller’s Solicitors Client
Account or such other account as the Sellers may notify in writing to the Purchaser in immediately available funds by electronic
transfer under the CHAPS system.



 


		12.	The Adjustment shall be deemed
to be an increase in or, as the case may be, reduction in the Consideration.



 


		13.	For the purposes of calculating,
determining and agreeing the Net Working Capital in accordance with this Schedule, the parties shall, and (to the extent that
they are able) shall procure that the Companies shall provide the Sellers and Purchaser, the Company’s auditors and the
accountants appointed in accordance with paragraph 8 with all information, assistance and access to books of account, documents,
files and papers which they reasonably require.



 


Part 2
- Basis on which Independent Accountants are to act


 


		14.	The accountants appointed
under paragraph 8 of Part 1 above (the "Independent Accountants") shall act on the following basis:



 


		(a)	they shall act as experts
and not as arbitrators;



 






    	24



    	 



    

 


		(b)	their terms of reference shall
be to determine an amount which in their opinion represents the item or items in dispute, as notified to them in writing by either
the Sellers or the Purchaser within 30 Business Days of their appointment;



 


		(c)	the Sellers and the Purchaser
shall each provide the Independent Accountants with all information which they reasonably require and the Independent Accountants
shall be entitled (to the extent they consider it appropriate) to base their opinion on such information and on the accounting
and other records of the Companies;



 


		(d)	the determination of the Independent
Accountants shall (in the absence of manifest error) be conclusive;



 


		(e)	their costs shall be borne
equally as between the Sellers on the one hand and the Purchaser on the other hand; and



 


		(f)	if they become unwilling or
incapable of acting, then a new firm of chartered accountants shall be appointed and the provisions of paragraph 8 above shall
apply mutatis mutandis in relation to the making of such appointment.



 


Part 3
– Form of Completion Balance Sheet


 


	Completion
    Net Working Capital
	 	£	 	£
	CURRENT
    ASSETS 	 	 	 
	Bank
    & Cash	X	 	 
	Stock	X	 	 
	Debtors
    & Prepayments	X	 	 
	 	 	 	X
	 	 	 	 
	CREDITORS
    	 	 	 
	Creditors
    & Accruals	X	 	 
	Other
    Creditors	X	 	 
	Directors
    Loan Account	X	 	 
	VAT/NIC/Corporation
    Tax	X	 	 
	 	 	 	X
	 	 	 	 
	Adjustments:	 	 	 
	[●]	[X]	 	 
	[●]	X	 	 
	 	 	 	X
	 	 	 	 
	COMPLETION
    NET WORKING CAPITAL	 	 	X
	 	 	 	 
	Other
    net assets/liabilities excluded from net working capital:	X	 	 
	Intangible
    Fixed Assets	X	 	 
	Tangible
    Fixed Assets	X	 	 
	Other
    Creditors – unamortised Landlord contributions	(X)	 	X
	COMPLETION
    NET ASSETS	 	 	 


 




    	25



    	 



    

 


Schedule
5

Completion Obligations


 


Part 1
- Sellers’ Completion Obligations


 


The matters
to be undertaken by the Seller at Completion for the purposes of Clause 5.2 are as follows:


 


		1.	Sellers’ Obligations
at Completion



 


		1.1	At Completion the Sellers
shall deliver or cause to be delivered to the Purchaser:



 


		(a)	transfers of the Sale Shares
duly completed in favour of the Purchaser or as it may direct; and



 


		(b)	the share certificates representing
the Sale Shares (or an express indemnity in a form satisfactory to the Purchaser in the case of any found to be missing).



 


Part
2 - Purchaser's Completion Obligations


 


		1.	The Completion



 


The
Purchaser shall, upon compliance by the Sellers with their obligations under Part 1 above pay to such account of the Sellers’
Solicitors as they shall advise in writing the sum of £255,002 in immediately available funds by electronic transfer under
the CHAPS system.


 




    	26



    	 



    

 


 


Schedule
6

Limitations on Liabilities under the Warranties, Tax Covenant and Indemnity


 


For
the purposes of this Schedule 6, references to the Company shall be deemed to include a separate reference to the Subsidiary.


 


Exclusions


 


		1.	The Sellers shall not be liable
in respect of a Warranty Claim to the extent that the matter or circumstance giving rise to that claim:



 


		(a)	was taken into account in
the Completion Balance Sheet prepared for the purposes of determining the Net Working
Capital by way of an identified (as opposed to general) provision in respect
of such matter or circumstance or a note constituting Disclosure of that
matter or circumstance or a statement in any report forming part of the Accounts constituting Disclosure
of that matter or circumstance; or



 


		(b)	is the subject of a claim
under the Tax Covenant and the Purchaser receives a payment in respect thereof under the Tax Covenant.



 


		2.	The Sellers shall not be liable
in respect of a Warranty Claim to the extent that the relevant liability would not have arisen but for:



 


		(a)	a change in legislation announced
or the withdrawal of any extra-statutory concession previously made by any Taxation Authority, after the date of this Agreement
(whether or not the change or withdrawal purports to be effective retrospectively in whole or in part); or



 


		(b)	a change after the date of
this agreement in the accounting policies, practices, treatments or methods
adopted by the Company other than a change made in order to comply with generally accepted accounting principles applied in the
UK, incorporating Statements of Standard Accounting Practice, Financial Reporting Standards and Urgent Issues Task Force Abstracts
issued by the Accounting Standards Board to the extent that the Company did not comply
with such generally accepted accounting principles applied in the UK prior to the date of this agreement;



 


		(c)	in
respect of Tax Warranties only, a change in the nature of, transfer, winding up or cessation of a trade or business carried on
by or by the Company after the date of this Agreement;



 


		(d)	the
Company or the Subsidiary failing to maintain the levels of insurance applicable to the Company and the Subsidiary at the Completion
Date at the date the Warranty Claim is made;



 


		(e)	the
Company or the Subsidiary having done (or omitted to do) something before the Date of this Agreement at the Purchaser’s
written request or with the Purchaser’s prior written consent



 


  or
is otherwise subject to the provisions of Schedule 6.


 


Direct Claims.


 


		3.	If the Purchaser becomes aware
of facts which appear reasonably likely to give rise to a Warranty Claim against the Sellers (other than any Third Party Claim
governed by paragraph 10 of this Schedule 6), the Purchaser shall, as reasonably practicable, give the Sellers written notice
in reasonable detail, given the extent of the information available to the Purchaser, of all relevant circumstances with respect
to the Warranty Claim. Except in any case where, in the reasonable belief of the Purchaser, immediate action is required by Purchaser
to avoid further prejudice to the Purchaser, Sellers shall have twenty days from the date of the notice to remedy or cure the
Warranty Claim.



 


This
paragraph 3, and permitting the Sellers the opportunity to undertake remedial action pursuant to this paragraph is without prejudice
to:


 






    	27



    	 



    

 


		(a)	the rights of the Sellers
under paragraph 10 (Conduct of Third Party Claims) of this Schedule 6; and



 


		(b)	the rights and remedies of
the Purchaser pursuant to this agreement to the effect that if the remedy or cure is not, in the reasonable opinion of the Purchaser,
satisfactory or complete, or if the Sellers fail or refuse to undertake and complete a remedy or cure within the 20 day period
specified above, the Purchaser shall thereafter have all rights and remedies with respect to the Sellers afforded to the Purchaser
under this Agreement pursuant and subject to the remaining provisions of this Schedule 6 or applicable law to recover with respect
to the Warranty Claim.



 


De minimis
claims


 


		4.	Subject to paragraph 4, the
Sellers shall not be liable in respect of any Warranty Claim unless the liability in respect of such Warranty Claim is at least
£10,000.



 


		5.	If more than one Warranty
Claim arises from, or is caused by, the same or similar matter, matters, circumstance or circumstances and the aggregate amount
of damages to which the Purchaser would be entitled as a result of those Warranty Claims is equal to or exceeds the sum specified
in paragraph 3, paragraph 3 shall not apply to any of those Warranty Claims.



 


Threshold


 


		6.	Neither Seller shall be liable
in respect of any Warranty Claim unless the liability for all Warranty Claims together with the aggregate liability of all other
single Warranty Claims of £10,000 or more exceeds exceeds 2.525% of £200,000, in which case the Purchaser shall be
entitled to all amounts resulting from those claims (and not just the excess over that sum).



 


Aggregate
limit


 


		7.	Subject to paragraph 6, the
maximum aggregate liability of each of the Sellers in respect of:



 


		(a)	any and all
liability in relation to Warranty Claims (excluding any and all claims under those Warranties set out in paragraph 16 (Tax)
of Schedule 3 (Warranties) or the Key Warranties but including all costs of
recovery incurred by the Purchaser and/or the Companies) shall not exceed:



 


		(i)	2.525%
of the total liability for breach of the relevant Warranty; and



 


		(ii)	in
aggregate as regards the total amount claimed against the Sellers an amount equal to 50% of the Consideration



 


		(b)	any and all liability in relation
to the Warranties set out in paragraph 16 (Tax) of Schedule 3 including all costs of recovery incurred by the Purchaser and/or
the Companies shall not exceed, in the case of each Seller, 2.525% of the total liability for breach of the relevant Warranty
set out in paragraph 16 (Tax);



 


		(c)	any and all claims under the
Key Warranties or those Warranties set out in paragraph 16 (Tax) of Schedule 3 (Warranties), or the indemnities in clause 4.10(a)
and 4.10(b) and/or under the Tax Covenant (including in each case any costs of recovery) shall not exceed, when added together
with any liability in respect of any Warranty Claim, an amount equal to 100% of the Consideration.



 


Actual
Loss





 


		8.	No payment shall be due from
the Sellers in respect of a Proven Claim until actual loss in relation to the Warranty Claim has been suffered by the Purchaser
or the Company (as the case may be) as a consequence of the matter which is the subject of the Warranty Claim.



 


Time limits


 


		9.	The liability of each Seller
in respect of the Warranties and the Tax Covenant shall terminate:



 






    	28



    	 



    

 


		(a)	subject
to paragraph 9(c) below, in relation to a Warranty Claim if notice of such claim has not been given within 15 calendar months
of the date of this Agreement.



		 	 



		(b)	in
relation to those Warranties set out in paragraph 16 (Tax) of Schedule 3 (Warranties)
and of any other Warranties so far as they relate to Taxation or in respect of the Tax Covenant
notice of such claim has not been given before the fifth anniversary of Completion; and



		 	 



		(c)	in
relation to a Warranty Claim (other than one relating to the Warranties set out in paragraph
16 (Tax) of Schedule 3 (Warranties) or which relates to Taxation) which has
not been resolved on or before six months from the date on which the Purchaser first served written notice on the Seller unless
the Purchaser has by then issued and served legal proceedings in respect of the Warranty Claim on the Seller or, if later, in
relation to a Warranty Claim where notice has been served in accordance with, and within the time periods set out in either sub-paragraph
(a) or (b) above but in circumstances where no actual loss has been suffered by the relevant party at the time of the notification
of the claim, the date being six months from the date upon which the actual loss has been suffered by the relevant party



 


Provided
Always that the Seller shall have no liability in respect of an amendment or addition to a Warranty Claim in legal proceedings
which would constitute a Warranty Claim other than the original Warranty Claim unless notice of the circumstances giving rise
to the amendment or addition was served on the Seller before the date set out in paragraph 9(c) above.



 


		10.	Conduct
of Third Party Claims



 


		10.1	The
                                         Purchaser shall procure that, if either it or the Company or Subsidiary becomes aware
                                         of circumstances which appears to it likely to give rise to a Warranty Claim (a “Third
                                         Party Claim”) or that it is or is likely
                                         (in the Purchaser’s reasonable opinion) to be entitled to make a recovery from
                                         a third party in respect of circumstances which have given or are likely to give rise
                                         to a Third Party Claim, it shall:



 


		(a)	as
soon as reasonably practicable give to the Sellers written notice in reasonable detail given the extent of the information available
to the Purchaser of all relevant circumstances and consult with the Sellers in relation to those circumstances;



 


		(b)	keep
the Sellers informed of material advice received and material developments which would be likely to affect the amount the subject
of a Third Party Claim;



 


		(c)	shall
not and shall procure that neither the Company nor the Subsidiary shall admit or concede liability or agree a compromise or settlement
with a third party without first obtaining the Seller’s written agreement;



 


		(d)	save
where to do so may breach legal or professional privilege of the Purchaser or the Companies, give the Sellers and their advisers
reasonable access to the premises and personnel of the Purchaser or the Companies as they may reasonably require and opportunity
to examine and copy relevant documents and records and photograph premises, asset or personnel within the control of the Purchaser
or the Companies and, if required by the Sellers, procure that all personnel of the Purchaser or the Companies having knowledge
of or involvement with the facts and circumstances giving rise to the Third Party Claim afford the Sellers all reasonable assistance
to properly resist, contest, defend or appeal against the Third Party Claim;



 











		(e)	take
such action as the Sellers require in relation to the Third Party Claim and permit the Sellers (in their own name or in the name
of the Purchaser, Company or Subsidiary or in any combination of those names) to conduct, settle, compromise, defend or appeal
relevant proceedings and to enforce any relevant rights and entitlements;



 






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		(f)	use
all reasonable endeavours itself, and will procure that the Companies each use their respective reasonable endeavours, to mitigate
its or their loss which is or is likely to become the subject matter of a Third Party Claim (but for the avoidance of doubt the
Purchaser shall not be required to take any steps that may increase the amount of any future Tax liability of the Companies or
utilise any Relief of the Companies)



 


Provided
always that if notice of a warranty claim has been given to Alex Rutherford pursuant to the Alex SPA and Alex Rutherford has notified
the Purchaser that he wishes to exercise any of his rights under sub-paragraph 10.1(d) or (e) of Schedule 6 of that agreement
in relation to a warranty claim thereunder relating to the same subject matter as the Warranty Claim being made against the Sellers
then the rights of the Sellers in relation to paragraphs 10.1(c), 10.1(d) and (e) above shall be suspended in relation to that
Warranty Claim alone.


 


		10.2	Subject
to the Seller having complied with the provisions of paragraph 10.4, without limiting the provisions of sub-paragraph 10.1. where
having discharged a liability arising in respect of a Third Party Claim, the Seller requests the assignment to it of any right
of the Purchaser or of the Company or Subsidiary to make recovery in whole or in part from any third party, the Purchaser will
assign or procure the assignment to the Seller of such right and, if that right is not legally capable of effective assignment
will pursue such right on behalf of the Seller and promptly pay over and account to the Seller all amounts recovered



 


		10.3	Subject
to the Seller having complied with the provisions of paragraph 10.4 and a Third Party Claim having been notified in writing to
the Purchaser, the Purchaser shall use reasonable endeavours to procure that it and the Companies shall preserve within its control
originals (where it is so entitled) or (in every other case) copies of all documents and other material information relevant to
matters giving rise to the Third Party Claim or a right of recovery from a third party in respect of matters which may give rise
to Third Party Proven Claim relating to the relevant Third Party Claim.



 


		10.4	The Seller shall indemnify
the Purchaser to its reasonable satisfaction in respect of all liabilities, costs, charges and expenses that are reasonably and
properly incurred by the Purchaser or any of the Companies as a consequence of it complying with its obligations under this paragraph
10 or as a consequence of any actions taken at the request of the Seller in accordance with this paragraph 10.



 


		10.5	Nothing in this paragraph
10 shall require the Purchaser or the Companies to take any action or refrain from taking any action, if the Purchaser in its
reasonable opinion and acting in good faith considers such action or omission is or is likely to be materially prejudicial to
the goodwill or business of the Purchaser’s Group.



 


Mitigation


 


		11.	Nothing in this agreement
shall be deemed to relieve the Purchaser from any common law duty to take reasonable steps to mitigate any loss or damage suffered
or incurred by it as a result of any of the Warranties being untrue or inaccurate or impose any higher duty on the Purchaser to
mitigate its loss beyond its common law duties.



 


Recovery
from third parties


 


		12.	If:






 


		(a)	either of the Sellers makes
a payment in respect of a Warranty Claim (a “Damages Payment”);



 


		(b)	following
the making of such payment any of the Companies or the Purchaser receives any sum other than
from the Sellers or Oliver Bengough or Alex Rutherford which would not have been received but for the matter or circumstance giving
rise to the relevant Warranty Claim (the “Third Party Sum”);



 


		(c)	the receipt of the Third
Party Sum was not taken into account in calculating the Damages Payment; and



 


		(d)	the aggregate of the Third
Party Sum and the Damages Payment exceeds the amount required to compensate the Purchaser or the Companies concerned (as the case
may be) in full for the matter or circumstance which gave rise to the relevant Warranty Claim (such excess being the “Excess
Recovery”),



 


the
Purchaser shall within 10 Business Days following receipt of the Third Party Sum by it or the Companies concerned, repay to the
relevant Seller or Sellers an amount equal to the lower of 2.525% of (i) the Excess Recovery and (ii) the Damages Payment, after
deducting (in either case) all costs incurred by the Purchaser or the Companies concerned in recovering the Third Party Sum and
any and all Taxation payable by the Purchaser or the Companies concerned by virtue of its receipt.


 




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Schedule
7

Tax Covenant


 


		1.	Definitions
                                         and interpretation



 


		1.1	In this Schedule, unless
the context otherwise requires, the following words have the following meanings:



 


"Claim
for Taxation" means any notice, demand, assessment, letter or other document issued or action taken by or on behalf of
any Tax Authority or any person (including the Company) indicating that any person is or may be placed or sought to be placed
under either a liability to Taxation or a claim for Taxation to which paragraph 5 may apply.


 


"CTA
2010" means the Corporation Tax Act 2010.


 


"Event"
means any event, deed, transaction, act, omission, payment or receipt and whether actual or deemed for Tax purposes, including
entering into this Agreement and including any combination of two or more Events.


 


"Group
Companies" means the Company and the Subsidiary and reference to "Group Company" means any one
of them.


 


"ICTA"
means the Income and Corporation Taxes Act 1988.


 


"ITA"
means the Income Tax Act 2007.


 


"Profits"
means income, profits and gains, the value of any supply and any other consideration, value, measure or receipt used or charged
for Taxation purposes and references to "Profits earned, accrued or received" include Profits deemed to
have been earned, accrued or received for Taxation purposes.


 


"Tax
Claim" means a claim by the Purchaser against the Sellers under the Tax Covenant or for breach of any of the Tax Warranties
or, as the case may be, a claim by the Sellers against the Purchaser under the covenant in paragraph 5.


 


"Tax
Counsel" means a barrister of at least 7 years call, experienced in tax matters.


 


"Sellers’
Associate" means any Sellers and any other person with whom the Sellers and/or the Company is either associated (within
the meaning of section 448, CTA 2010) or connected (within the meaning of section 1122, CTA 2010 or, as the case may be, section
993, ITA).


 


"Sellers’
Representative" means Hugh Doherty.


 


		1.2	In
                                         this Schedule:



 


		(a)	a reference to a jurisdiction
shall include any union (including for the avoidance of doubt, the European Union), country, state, province, district or division
of whatever nature which imposes or raises Taxation;



 


		(b)	a reference to any law shall
include any statute, statutory instrument, law, regulation, treaty, notice, directive or similar provision relating to Taxation,
whether of the United Kingdom or elsewhere; and



 


		(c)	references to specific parts
of the law of the United Kingdom shall be taken to include a reference to the law of any other jurisdiction so far as the same
may apply to any Group Company and may be similar to or have a similar purpose to the law of the United Kingdom to which reference
is made.



 




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		2.	Tax
                                         Covenant



 


		2.1	Save
as hereinafter provided, each of the Sellers hereby covenant to pay to the Purchaser such amount as is equal, on an after Tax
basis (but subject to paragraph 4.4. of Schedule 11) , to 2.525% of:



 


		(a)	any liability to Tax of
the Company or the Subsidiary (including any liability which would have been payable but for the application or set off of any
Relief against a liability to Tax, other than any Relief arising to the Company or the Subsidiary on or before the date of this
Agreement but which is not shown as an asset in the Completion Balance Sheet or taken into account in computing any corporation
tax provision in the Completion Balance Sheet) arising in respect of or as a consequence of or by reference to:



 


		(i)	any income, profits or gains
actually or deemed to be earned, accrued or received by the Company or the Subsidiary on or before the date of this Agreement;
or



 


		(ii)	any Event occurring or deemed
to occur on or before the date of this Agreement; or



 


		(iii)	the failure by any other
person connected for Tax purposes with or in the same group as the Company or the Subsidiary for any Tax purpose at any time before
the date of this Agreement (the "Pre-Completion Connection") to discharge a liability to Tax which falls on the
Company or the Subsidiary as a result of that Pre-Completion Connection for which the Company or the Subsidiary is not primarily
liable; or



 


		(iv)	the sale of Sale Shares
under this Agreement and any payments to the Sellers in respect thereof; or



 


		(v)	arrangements made in connection
with the transfer of the Subsidiary to the Company; or



 


		(b)	any liability to Tax of
the Company or the Subsidiary arising as a result of:



 


		(i)	any acquisition of a chargeable
interest before the date of this Agreement (whether deemed or actual) in relation to which stamp duty land tax compliance (including,
but not limited to the preparation and filing of necessary returns, and the payment of any stamp duty land tax due) has not been
properly or duly undertaken; or



 


		(ii)	the submission or amendment
(or notice of amendment) of any form or notice for stamp duty land tax purposes after the date of this Agreement where a land
transaction return was submitted prior to the date of this Agreement calculating stamp duty land tax by reference to an estimate
except where such submission or amendment is required as a result of an Event outside of the ordinary course of business of the
Company or the Subsidiary after the date of this Agreement which gives rise to or increases any stamp duty land tax;



 


		(c)	the loss of any Relief shown
as an asset in the Completion Balance Sheet; or



 


		(d)	any inheritance tax which
is at the date of this Agreement or which subsequently becomes as a result in whole or in part of a transfer of value occurring
on or before the date of this Agreement a charge or encumbrance on any of the Sale Shares or assets of the Company or the Subsidiary;
or



 





		(e)	any liability of the Company
or Subsidiary to pay for Group Relief or to repay, in whole or in part, any payment previously made for Group Relief pursuant
to any arrangement or agreement entered into prior to the date of this Agreement save for any payment or repayment between the
Company and the Subsidiary; or



 



    	32



    	 



    

 





		(f)	the loss in whole or in
part of the right to receive any payment for Group Relief to the extent that such right to payment is provided for as an asset
in the Completion Balance Sheet;



 


together
with all reasonable costs and expenses incurred by the Company, the Subsidiary or the Purchaser in connection with any successful
claim under paragraph 2.1 (a)-(e) above or in successfully taking any action under this Clause unless provision or reserve in
respect of the liability has been made in the Completion Balance Sheet.


 


		2.2	The
provisions of Schedule 6 shall, to the extent specifically provided for under that Schedule, apply to the Sellers’ liability
under this Schedule as if expressly stated herein save that paragraph 6 shall not apply to any liability falling within paragraphs
2.1(a)(iii) and 2.1(a)(v) of this Schedule.



 


		3.	Amount
                                         of liability to Taxation



 


The
amount of any liability under paragraphs 2.1(a) and (b) of the Tax Covenant shall be:


 


		(a)	in the case of an actual
payment of Tax or loss of a repayment, the amount of the payment or repayment;



 


		(b)	in the case of the loss
of a Relief,



 


		(i)	if the Relief is a right
to repayment of Tax, the amount of the repayment that is lost,



 


		(ii)	the amount of Taxation saved
as a result of the loss of the Relief, if the Relief was set off against Profits or set-off and credited against a liability to
pay Taxation,



 


		(iii)	in any other case, the amount
of Taxation that would have been saved but for the loss of the Relief on the assumption that the relevant Group Company would
have been able to fully utilise the Relief in the accounting period during which the Relief was lost.



 


		4.	Date
                                         for payment



 


		4.1	Where
the Sellers become liable to make any payment under the Tax Covenant, the due date for the making of that payment shall be:



 


		(a)	in a case that involves
an actual payment of Taxation by any Group Company, the date that is two Business Days before the last date on which the relevant
Group Company is liable to pay to the appropriate Tax Authority the Taxation in question in order to avoid incurring a liability
to interest or penalties or, if later, five Business Days following a written demand from the Purchaser giving details of the
payment in question;



 


		(b)	in the case of the set
off or application of any Relief against a liability to Taxation, the date that is the date on which the Taxation saved would
otherwise have become payable to the relevant Tax Authority the or, if later, five Business Days following a written demand from
the Purchaser giving details of the payment in question;



 


		(c)	in the case of costs and
expenses, the date falling five Business Days following the date on which the Sellers’ Representative receives a written
demand for such amount from the Purchaser together with a copy of the relevant third party invoice; or



 


		(d)	in any other case, the
date falling five Business Days following the date on which the Sellers’ Representative receives a written demand for such
amount from the Purchaser.



 






    	33



    	 



    

 


		5.	Covenant
                                         to Sellers



 


		5.1	The
Purchaser covenants with the Sellers to pay to each Seller an amount equal to 2.525% of any Taxation which is assessed on the
Seller or on any Seller Associate pursuant to either section 710, CTA 2010 or section 713, CTA 2010 by reason of Taxation assessed
on or primarily or directly attributable to the Purchaser, any member of the Purchaser's group, or the Subsidiary, or the Company
for any accounting period remaining unpaid provided that this covenant shall not apply to any Taxation in respect of which the
Purchaser is entitled to bring a Tax Claim against the Sellers or would have been so entitled but for paragraphs 6 (Limitations
on liability), 7 (Repayment) and 8 (Over-provisions and Reliefs) below or clause [4.10] of the Agreement (Sellers’ Protections).



 


		5.2	Each
of the Sellers covenants that he shall make no claim under paragraph 5.1 above to the extent that they shall have recovered the
Taxation in question under section 717, CTA 2010) and that to the extent that they recover any amount under paragraph 5.1 they
shall not seek to recover payment under section 717, CTA 2010.



 


		6.	Limitations
                                         on liability



 


		6.1	The
liability of the Sellers under the Tax Covenant shall be reduced if and to the extent that the liability shall have been recovered
under the Warranties or under any other part of the Tax Covenant or Agreement (and vice versa).



 


		6.2	The
Sellers shall not be liable to the Purchaser for a Tax Claim in respect of any liability:



 


		(a)	to the extent that provision
or reserve in respect of that liability was included in the Completion Balance Sheet or the obligation to make payment or discharge
of such liability was otherwise taken into account therein in determining the Consideration;



 


		(b)	to the extent that the
liability arises or is increased as a result only of:



 


		(i)	any increase in rates of
Taxation;



 


		(ii)	any change in law or in
the published practice of any Tax Authority;



 


		(iii)	any change in accounting
practice or principles or any change in the bases on which the accounts of the relevant Group Company are prepared except in either
case in order to comply with generally accepted accounting practice; or



 


		(iv)	any change in the date
to which the relevant Group Company makes up its accounts;



 


		(c)	the liability has been
relieved or mitigated because the Sellers have procured within a reasonable time for no consideration a surrender of Group Relief
to the Company or the Subsidiary, as the case may be;



 


		(d)	such liability would not
have arisen but for a voluntary act or omission carried out or effected by the Company, the Subsidiary or the Purchaser at any
time after the date of this Agreement, other than any act or omission carried out or effected:



 


		(i)	under a legally binding
commitment created on or before the date of this Agreement;



 


		(ii)	in order to comply with
any law or in order to comply with generally accepted accounting principles; or



 


		(iii)	in the ordinary and normal
course of the business carried on by the Company;



 





		(iv)	that is or was required
by law;



 






    	34



    	 



    

 


		(e)	such liability would not
have arisen or would have been reduced but for a failure or omission on the part of the Company, the Subsidiary or the Purchaser
after the date of this Agreement to make any claim or election, the making or claiming of which was taken into account in computing
the provision or reserve for Taxation in the Completion Balance Sheet;



 


		(f)	there is or is made available
to the relevant Group Company (at no cost to the Buyer or the relevant Group Company) to relieve or mitigate such liability to
Taxation any Relief arising to the Company or the Subsidiary on or before the date of this Agreement but which is not shown as
an asset in the Completion Balance Sheet or taken into account in computing any corporation tax provision in the Completion Balance
Sheet;



 


		(g)	the Purchaser or the relevant
Group Company has already been compensated in respect of such Liability to Taxation at no cost to the Purchaser or relevant Group
Company;



 


		(h)	such Liability to Taxation
can be properly and fully discharged out of monies deducted for the purpose from sums payable or paid by any Group Company provided
the Company still holds the monies at the date of this Agreement to discharge the Liability to Taxation; or



 


		(i)	it arises or is increased
as a consequence of any failure by the Purchaser or the any Group Company to comply with any of their respective obligations under
the Agreement in so far as it relates to Taxation.



 


		7.	Repayment



 


		7.1	If
the Sellers shall make any payment to the Purchaser in relation to any Tax Claim and the Purchaser or any Group Company subsequently
receives from any Tax Authority or any person (other than another Group Company) any amount referable to the subject matter of
that Tax Claim, the Purchaser shall, once it or any Group Company has received such amount, repay (after deducting the costs and
expenses of the Purchaser or any Group Company incurred in recovering such amount and any Taxation payable on it or on any interest)
to the Sellers either:



 


		(a)	a sum equal to 2.525% of
such amount to each Seller; or



 


		(b)	if lesser a sum equal to
the Tax Claim paid by the Sellers to the Purchaser,









 


together
with any interest paid to the Purchaser or the relevant Group Company in respect of such sum.


 


		8.	Over-provision
                                         and Reliefs



 


		8.1	If
on or before the fourth anniversary of the date of this Agreement, the auditors for the time being of the relevant Group Company
shall confirm in writing (on instruction of the relevant Group Company but at the request and expense of the Sellers) that (applying
the same policies, principles and practices as used in preparing the Completion Balance Sheet) any provision for Taxation (excluding
any provision for deferred taxation) on the balance sheet in the Completion Balance Sheet (other than by reason of the availability
of a Relief arising after the date of this Agreement and ignoring the effect of any change in law made after the date of this
Agreement) has proved to be an over-provision and that over-provision reduces a liability to make an actual payment of Tax of
the relevant Group Company or the Purchaser (other than a liability for which the Purchaser would be entitled to bring a Tax Claim),
then an amount equal to 2.525% of the amount of such over-provision shall be dealt with in accordance with paragraph 8.3.



 






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Reliefs


 


		8.2	If
on or before the fourth anniversary of the date of this Agreement, the auditors for the time being of the relevant Group Company
shall confirm in writing (at the request and expense of the Sellers) that any liability which has resulted in a payment having
been made or becoming due from the Sellers under the Tax Covenant will give rise to a Relief for a Group Company (other than a
Relief arising after the date of this Agreement) which would not otherwise have arisen, then as and when such Relief reduces a
liability to make an actual payment of Tax (other than a liability for which the Purchaser would be entitled to bring a Tax Claim),
the amount of that reduction shall be dealt with in accordance with paragraph 8.3 below.



 


Conduct


 


		8.3	Where
it is provided under paragraphs 8.1 or 8.2 that any amount (the "relevant amount") is to be dealt with in accordance
with this sub-paragraph:



 


		(a)	the relevant amount shall
first be set-off against any payment then due from the Sellers under the Tax Covenant;



 


		(b)	to the extent that there
is an excess, a refund shall be made to the Sellers of any previous payment made by the Sellers under the Tax Covenant (to the
extent not previously refunded under this paragraph 8) up to the amount of such excess; and



 


		(c)	to the extent that the
excess referred to in paragraph 8.3(b) above is not exhausted under that paragraph, the remainder of the excess shall be carried
forward and set off against any future payment or payments which become due from the Sellers under the Tax Covenant.



 


		8.4	Where
                                         any written confirmation referred to in paragraphs 8.1 or 8.2 has been made, the Sellers
                                         or the Purchaser or the Company may request, at the sole expense of the party making
                                         the request, the auditors to review such written confirmation in the light of all relevant
                                         circumstances, including any facts which have become known only since such written confirmation,
                                         and to certify whether such written confirmation remains correct or whether the amount
                                         in such written confirmation should be amended.



 


		8.5	If the auditors certify
under paragraph 8.4 that an amount previously determined should be amended, that amended amount shall be substituted for the purposes
of paragraph 8.3 as the relevant amount in respect of the written confirmation in question in place of the amount originally included,
and such adjusting payment (if any) as may be required shall be made as soon as practicable by the Sellers or (as the case may
be) to the Sellers to give effect to the revised amount.



 


		9.	Claims Procedure



 


		9.1	On
the Purchaser or the Company becoming aware of a Claim for Taxation which may result in a Tax Claim the Purchaser shall:



 


		(a)	as soon as reasonably practicable
(but not as a condition precedent to the making of a Tax Claim) give written notice of that Claim for Taxation to the Sellers’
Representative or, as the case may be, shall procure that the Company forthwith give written notice of that Claim for Taxation
to the Sellers’ Representative;



 






    	36



    	 



    

 


		(b)	subject always to the terms
of this paragraph 9 and the Sellers indemnifying the Purchaser and/or the relevant Group Company to its reasonable satisfaction
against all losses, costs, damages and expenses, which may be incurred (and promptly reimbursing any costs actually incurred),
procure that the Company take such action and give such information and assistance in connection with the affairs of the Company
as the Sellers’ Representative may reasonably and promptly by written notice request to avoid, resist, appeal or compromise
the Claim for Taxation; and



 


		(c)	procure that the Sellers’
Representative is promptly provided with copies of any material correspondence with the Tax Authority.



 


		9.2	The
Purchaser shall not be obliged to procure that the relevant Group Company appeals against any tax assessment if, the Sellers’
Representative, having been given written notice of the receipt of that Claim for Taxation in accordance with paragraph 9.1 above,
the Purchaser has not within 21 days (or, if there is a statutory time limit of not more than 30 days, within 14 days) thereafter
received instructions promptly in writing from the Sellers’ Representative, in accordance with the preceding provisions
of this paragraph 9, to make that appeal.



 


		9.3	The
Purchaser shall not be obliged to procure that the relevant Group Company take any action under paragraph 9.1 above which involves
contesting any matter with any Tax Authority (excluding the authority or body demanding the Tax in question) or any court or tribunal
unless the Sellers’ Representative furnishes the Purchaser with the written opinion of Tax Counsel to the effect that the
appeal in question will, on the balance of probabilities, succeed. Such Tax Counsel shall be instructed by the Sellers' Representative
and at the Seller’s expense but the Sellers’ Representative shall promptly provide the Purchaser with a copy of such
instructions and give the Purchaser or its representative a reasonable opportunity to attend any conference with Tax Counsel.



 


		9.4	The
Purchaser agrees to delegate the conduct of the submission of any stamp duty land tax documentation or returns (which relate to
any period prior to Completion) to any Tax Authority in respect of the Lease of the Property (and any action, negotiations, returns,
correspondence or other documentation that follow from any such submission) to the Seller and the Seller’s Representative
and paragraphs 9.1(b) and (c) above shall apply as if any such action, documentation, returns, correspondence or negotiations
are a “Claim for Taxation” for eh purpose of those paragraphs and paragraph 9.1(b) shall apply as if it includes an
agreement to delegate all such matters to the Seller and the Seller’s Representative. The Purchaser agrees, and agrees to
procure that the Company, shall not submit any documentation, returns or correspondence to, or enter into negotiations with any
Tax Authority in respect of the Lease of the Property without the Seller’s prior written approval, such approval not to
be unreasonably withheld.



 


		10.	Tax
                                         Returns



 


		10.1	The
Sellers or their duly authorised agent shall at the relevant Group Company's expense (to the extent provided for in the Completion
Balance Sheet) prepare the corporation tax returns (including all computations and the provision of financial information, together
with all necessary claims, elections, surrenders and notices required for such returns) of the Company and the Subsidiary for
all the accounting periods ended on the Accounts Date to the extent that they have not been prepared prior to Completion. The
Seller or his duly authorised agent shall, at the relevant Group Company’s expense (to the extent provided for in the Completion
Balance Sheet) also deal with all matters (including correspondence) relating to such corporation tax returns provided that the
Sellers Representative shall provide the Purchaser with copies of any correspondence relating to such tax returns prior to submission,
and copies of any correspondence from the relevant Tax Authority. The Sellers shall give the Purchaser a reasonable opportunity
to comment on such correspondence prior to submission and shall take account of the Purchaser’s reasonable comments.






 






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		10.2	The
Purchaser shall procure that the Company and the Subsidiary shall cause the tax returns mentioned in paragraph 10.1 above to be
authorised, signed and submitted to the relevant Tax Authority without amendment or with such amendments as the Sellers’
Representative shall reasonably agree provided that the Purchaser shall not be obliged to procure that the Company or the Subsidiary
takes any such action as is mentioned in this paragraph 10 in relation to any tax return that is not true and accurate in all
material respects or conflicts with anything agreed in respect of the Completion Balance Sheet.



 


		10.3	The
Purchaser shall provide the Sellers’ Representative with a copy of the corporation tax return relating to the accounting
period current at Completion at least 28 days prior to the date for submission of that corporation tax return. The Purchaser shall
give the Sellers a reasonable opportunity to comment on such return prior to its submission to the relevant Tax Authority and
shall take account of the Sellers’ Representative reasonable comments in relation to any period ending on or prior to the
Completion.



 


		10.4	The
Purchaser shall upon reasonable notice (having regard to the circumstances) being given by the Sellers procure that the relevant
Group Company shall afford such access to such information and is given such assistance as is necessary and reasonable to enable
the Sellers or his duly authorised agent to prepare those tax returns and conduct matters relating thereto in accordance with
the Sellers’ rights under this paragraph 10.



 


		10.5	The
Purchaser shall procure that the relevant Group Company shall at the reasonable request of the Sellers’ Representative do
all such things which may be reasonably necessary to ensure that full effect is given to any claim, surrender or election made
to or by the relevant Group Company and which is reflected or taken into account in the Accounts or the Completion Balance Sheet
including for the avoidance of doubt signing and submitting any revised claim, election or surrender and progressing any such
claim, surrender or election or revised claim surrender or election with the relevant Tax Authority.



 




    	38



    	 



    

  


Schedule
8

Protective Covenants


 


		1.	Each of Sellers (for himself
only) covenants with the Purchaser, the Company and the Subsidiary as Third Parties that they shall not:



 


		(a)	for a period of twelve
calendar months after Completion be concerned in any business carrying on business within the
Relevant North London Boroughs that involves the operation of live music
venues with a capacity of 500 or more people; or



 


		(b)	for a period of twelve
calendar months after Completion:



 


		(i)	canvass, solicit, induce
or attempt to induce any person who is at the date of this Agreement a director or employee of the Company
earning over £50,000 per annum (a “key employee”) to leave the employment of the Company;
or



 


		(ii)	employ or attempt to employ
any person who is at the date of this Agreement a director or key employee of the Company; or



 


		(iii)	procure or facilitate the
making of an offer of employment to any person who is at the date of this Agreement a director or key employee of the Company;



 


		(c)	for a period of twelve
calendar months after Completion induce or attempt to induce any person, who is at the date of this Agreement or has been at any
time within the year prior to the date of this Agreement a supplier of goods or services to the Company, to cease to supply, or
to restrict or vary the terms of supply, to that company; or



 


		(d)	for a period of twelve
calendar months after Completion do or say anything which may lead a person to cease to deal with any of the Companies on substantially
equivalent terms to those previously offered or at all; or



 


		(e)	after the date of this
Agreement do or say anything which is harmful to the reputation of any of the Companies, their shareholders or their officers;
or



 


		(f)	after Completion make use
of information of a secret or confidential nature relating to, or to the business or affairs of, any of the Companies; or



 


		(g)	after Completion (except
as required by law or any competent regulatory body) disclose or divulge to any third party any information of a secret or confidential
nature relating to, or to the business or affairs of, any of the Companies (save in
so far as such disclosure may be necessary in order to enable Mint Group Holdings Limited to carry out its duties and obligations
under the Transitional Services Agreement); or



 


		(h)	after Completion use or
(insofar as he can reasonably do so) allow to be used (except by the any of the Companies) any trade name, trade or service mark,
business or domain name, design or logo used by any of the Companies at Completion or any other name, mark, domain name, design
or logo intended or likely to be confused with any trade name, trade or service mark, business or domain name, design or logo
used by any of the Companies at Completion; or



 


		(i)	after Completion present
himself or permit himself to be presented as connected in any way with any of the Companies (save in the normal course of his
employment by any of the Companies or as a former owner of Sale Shares in the Company)
or as interested in the Shares following Completion.



 


		2.	For the purposes of this
schedule:



 





		(a)	a person is concerned in
a business if it carries on the business as principal or agent or if:



 


		(i)	he
is a partner, director, employee, secondee, consultant or agent in, of or to any person who
carries on the business; or



 


		(ii)	he
has any direct or indirect financial interest (as shareholder or otherwise) in any person who
carries on the business; or



 






    	39



    	 



    

 


		(iii)	he
is a partner, director, employee, secondee, consultant or agent in, of or to any person who
has a direct or indirect financial interest (as shareholder or otherwise) in any person who carries on the business; or



 


		(iv)	it is concerned or interested
in, or otherwise assists the business in any way;



 


		(b)	the restrictions in paragraph
1 apply to actions carried out by the Sellers in any capacity and whether directly or indirectly on their own behalf or on behalf
of, or jointly with, any other person;



 


		(c)	no regard shall be had
to any financial interest of a person in securities which are held for investment purposes only and are listed on a recognised
securities exchange if that person, and any person connected with that person (the “Investors”) are together
interested in securities which amount to less than 5% of the issued securities of that class and which, in all circumstances,
carry less than 5% of the voting rights (if any) attaching to the issued securities of that class, and provided that none of the
Investors is involved in the management of the business of the issuer of the relevant securities or of any person connected with
it otherwise than by the exercise of voting rights attaching to securities.



 


		3.	Each of the restrictions
in each paragraph or sub clause above shall be enforceable independently of each of the others and its validity shall not be affected
if any of the others is invalid.



 


		4.	If any of those restrictions
is void but would be valid if some part of the restriction were deleted, the restriction in question shall apply with such modification
as may be necessary to make it valid.



 


		5.	The Sellers acknowledge
that the above provisions of this schedule are no more extensive than is reasonable to protect the Purchaser as the purchaser
of the Sale Shares.



 




    	40



    	 



    

 


Schedule
10

Property








 


The leasehold
property known as Camden Palace Nightclub, Camden High Street, London NW1 0JH.


 




    	41



    	 



    

 


Schedule
11

Terms and Conditions


 


		1.	Further
                                         Assurance



 


		1.1	On or after Completion,
Sellers will at their cost and expense, execute and do (or procure to be executed
and done by any necessary party) all such deeds, documents, acts and things as they ought to have done on or prior to Completion
(acting reasonably) in order to vest any of the Sale Shares set opposite his
name in Schedule 1 (The Sellers) in the Purchaser or its assignee or otherwise as may be necessary to give full effect
to this Agreement.



 


		2.	Confidentiality



 


		2.1	Subject to paragraph 2.2
below each Seller undertakes to the Purchaser (for itself and for each of the Companies as Third Parties) that he will (both before
and after Completion):



 


		(a)	not at any time after the
date of this Agreement use, divulge or communicate to any person other than to officers or employees of the Companies who need
to know the same any Confidential Information which may be in or come to his knowledge; and



 


		(b)	use his reasonable endeavours
at the cost of the Purchaser to prevent publication or disclosure of any Confidential
Information.



 


		2.2	Paragraph 2.1 shall not
apply if and to the extent that the Seller, in disclosing Confidential Information, can demonstrate that:



 


		(a)	such disclosure is required
by law or by any securities exchange or regulatory or governmental body having jurisdiction over it (including but not limited
to the UK Listing Authority, the London Stock Exchange, the Panel on Takeovers and Mergers and the Serious Fraud Office) and whether
or not the requirement has the force of law, provided that the relevant Seller required to disclose the Confidential Information
shall promptly notify the Purchaser before such disclosure is made (where it is lawful to do so) and shall co-operate with the
Purchaser at the Purchaser’s expense and subject to each of the relevant Seller
being duly secured and indemnified by the Purchaser if the Purchaser wishes to challenge the need for such disclosure or
the timing and content of such disclosure; or



 


		(b)	such disclosure is to a
professional or financial adviser for the purpose of advising the relevant Seller in connection with the transactions contemplated
by this Agreement, provided that such disclosure is necessary for these purposes, such adviser is made aware of the obligations
of this paragraph 2 and such adviser is bound by a duty of confidentiality (whether express or implied); or



 


		(c)	the Confidential Information
concerned has come into the public domain other than through the fault of any person to whom such Confidential Information has
been disclosed in accordance with paragraph 2.1



 


Provided
always that the restrictions contained in this paragraph 2 shall survive Completion and shall continue without limit of time.


 


		3.	Announcements



 


The
Sellers and the Purchaser shall, as soon as practicable after Completion procure that a joint announcement of the sale and purchase
of the Sale Shares in the agreed form is made. Otherwise no announcement shall be made about the deal without the written approval
of each of the parties save to the extent that the Purchase is obliged to report to shareholders or is otherwise required by law
or the rules of any listing authority in which event the Sellers shall be consulted by the Purchase (who shall consider carefully
the inclusion of any comments which the Sellers may make) prior to the issuing of such announcement.


 




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		4.	Payments



 


		4.1	Unless otherwise expressly
stated all payments to be made under this Agreement shall be made in Sterling to the party to be paid by transfer in immediately
available funds by telegraphic transfer for the credit of such account in the United Kingdom as the party to be paid ma specify
or in such other manner as the parties may agree.



 


		4.2	Any payment falling to
be made or document falling to be delivered to the Sellers under any provision of this Agreement may be made to the Sellers’
Solicitors Client Account whose receipt shall be sufficient discharge.



 


		4.3	Each payment to be made
by the Sellers under this Agreement shall be made free and clear of all deductions, withholdings, counterclaims or set-off of
any kind except for those required by law.



 


		4.4	In the event that:



 


		(a)	any deduction or withholding
is required by law to be made from any sum payable by a Seller to the Purchaser pursuant to this Agreement, such Seller shall
be obliged to pay such increased sum as will, after the deduction or withholding has been made, leave the Purchaser with the same
amount as it would have been entitled to receive in the absence of such requirement to make a deduction or withholding unless
such withholding or deduction is required by reason of the Purchaser being a US entity and which withholding or deduction would
not have been required if the Purchaser had been an entity incorporated in the United Kingdom in which event no further sum in
respect of such deduction or withholding will be payable by the relevant Seller; and



 


		(b)	any sum paid to the Purchaser
pursuant to this Agreement, is or will be chargeable to Tax, the relevant Seller, shall be obliged to pay such further sum as
will, after payment of the Tax, leave a sum equal to the amount that would otherwise have been payable if Tax had not been so
chargeable.



 


		5.	Costs



 


		5.1	Subject to the payment
of sums pursuant to the Deed of Reimbursement, each party shall pay the costs and expenses incurred by him or it in connection
with the entering into and completion of this Agreement.



 


		6.	Constitution
                                         of this Agreement



 


		6.1	This Agreement, together
with the documents referred to in it, contain the entire agreement between the parties relating to the transactions contemplated
by this Agreement and replaces and extinguishes all prior drafts, previous agreements, arrangements and understandings, whether
in writing or oral, between the parties relating to these transactions except to the extent that they are repeated in this Agreement.



 


		6.2	Each Seller acknowledges
to the Purchaser, and the Purchaser acknowledges to the Sellers, that in agreeing to enter into this Agreement they, he or it
has not relied on any representation, warranty, undertaking, promise or other assurance (whether contractual or otherwise) given
by or on behalf of the other, except the warranties and undertakings set out
in this Agreement, and waives all rights and remedies, which, but for this paragraph might be available to them, him or it in
respect of any such representation, warranty or other assurance, provided that
nothing in this paragraph shall limit or exclude any liability for fraudulent misrepresentation or fraudulent concealment.



 





		6.3	This Agreement may be executed
in any number of counterparts, but shall not be effective until each party has executed at least one counterpart, all of which,
taken together shall constitute one and the same Agreement and any party may enter into this Agreement by executing a counterpart.



 


		6.4	No variation of this Agreement
shall be effective unless made in writing and signed by each of the parties.



 






    	43



    	 



    

 


		7.	Rights



 


		7.1	The rights, powers, privileges
and remedies provided in this Agreement are cumulative and are not exclusive of any rights, powers, privileges or remedies provided
by law or otherwise.



 


		7.2	No failure to exercise
nor any delay in exercising any right, power, privilege or remedy under this Agreement shall in any way impair or affect its exercise
or operate as a waiver in whole or in part.



 


		7.3	No single or partial exercise
of any right, power, privilege or remedy under this Agreement shall prevent any further or other exercise or the exercise of any
other right, power, privilege or remedy.



 


		7.4	The provisions of this
Agreement shall remain in full force and effect notwithstanding Completion.



 


		8.	Liabilities



 


		8.1	The Purchaser may release
or compromise in whole or in part the liability of any one of the Sellers under this Agreement or grant any time or other indulgence
without affecting the liability of the other Sellers.



 


		9.	Successors
                                         and Assigns



 


		9.1	This Agreement shall be binding
upon and benefit the successors of the parties but, subject to paragraph 9.2, none of the rights or obligations under this Agreement
may be assigned, transferred, sub-licensed, charged or dealt with in any other manner without the prior written consent of all
the other parties.



 


		9.2	The Purchaser may, after having
given prior written notice to the Seller, assign any or all of its benefits under this Agreement to a member of the Purchaser’s
Group Provided Always that:



 


		(a)	if such assignee shall cease
to be a member of the Purchaser’s Group, the benefit of this Agreement shall be deemed to have been re-assigned to the Purchaser;



 


		(b)	the liability of the Seller
to the assignee shall not be greater than any liability that the Seller would have had for that matter to the Purchaser.



 


		10.	Third
                                         Parties



 


		10.1	Except where expressly stated
in this Agreement to the contrary:



 


		(a)	a person (other than Oliver
Bengough or Alex Rutherford or Mint Group Holdings Limited) who is not a party to this Agreement or any of the documents referred
to in this Agreement (or his successors or permitted assignees under paragraph 9) has no rights under the Contract (Right of Third
Parties) Act 1999 (the “Act”) or otherwise to enforce or enjoy the benefit of any term of this Agreement; and



 


		(b)	no termination, amendment,
compromise, waiver or settlement of this Agreement or any dispute or claim arising out of or in connection with it or its subject
matter or formation (including non-contractual disputes or claims) require the consent of any person who is not a party to it.



 


		10.2	Each of the Companies shall
be entitled under the Act to enforce any term of this Agreement which expressly or by implication confers any benefit on it and
each of the persons described in clause 4.6 shall have the benefit of clause 4.6 under the Act.









 


		11.	Illegality



 


If
any provision of this Agreement shall be held to be illegal, void, invalid or unenforceable under the laws of any jurisdiction,
the legality, validity and enforceability of the remainder of this Agreement in that jurisdiction shall not be affected, and the
legality, validity and enforceability of the whole of this Agreement in any other jurisdiction shall not be affected.


 


		12.	Notices



 


		12.1	Any notice or other document
to be served under this Agreement may be delivered or sent by registered or recorded post (or equivalent in any other jurisdiction)
to the party to be served at his address appearing in this Agreement or at such other address as he may have notified to the other
parties in accordance with this paragraph.



 






    	44



    	 



    

 


		12.2	Any notice or document shall
be deemed to have been served:



 


		(a)	if delivered, at the time
of delivery; or



 


		(b)	if posted inland, at 10.00
hours on the second Business Day after it was posted; or



 


		(c)	if posted airmail, at 10.00
hours (local time at the recipient's address) on the fifth Business Day after it was posted.



 


		12.3	In proving service of a notice
or document it shall be sufficient to prove that delivery was made or that the envelope containing the notice or document was
properly addressed and posted (first class if UK inland) as a prepaid registered or recorded post (or equivalent in any other
jurisdiction) letter.



 


		12.4	The address details of the
parties for the purposes of this paragraph are set out in Schedule 9 (Addresses).



 


		13.	Governing
                                         law and Jurisdiction



 


		13.1	This Agreement and any dispute
or claim arising out of or in connection with it or its subject matter (including any dispute or claim relating to non-contractual
obligations) shall be governed by and construed in accordance with English law.



 


		13.2	The courts of England have
exclusive jurisdiction to settle any dispute or claim ("action") arising out of, or in connection with, this
Agreement or its subject matter or formation (including any dispute or claim relating to non-contractual obligations).



 


		13.3	Each party irrevocably waives
any right that it may have to object to an action being in such courts on the grounds of venue, on the grounds that an action
has been brought in an inappropriate or inconvenient forum or that such courts do not have jurisdiction.



 


		13.4	Each party agrees that without
preventing any other mode of service allowed by law, any document in an action (including, but not limited to, a claim form or
any other document to be served under the Civil Procedure Rules in England and Wales) may be served on any party by being delivered
to or left for that party at its address for service of notices under Schedule 8 (Addresses).



 







    	45



    	 



    

 


Schedule
12

Definitions and Interpretation





 


		1.	Definitions



 


In
this Agreement, unless the context otherwise requires:


 


"Accounts"
means all or any one of:


 


(a)          the
audited balance sheet of the Subsidiary; and


 


(b)          the
audited profit and loss account of the Subsidiary;


 


together
with the notes to such accounts and the directors reports and the other documents required by law to be annexed thereto;


 


"Accounts
Date" means 31 March 2013;


 


"agreed
form" means, in relation to any document, the form of that document which has been agreed and initialled by or on behalf
of the Sellers and the Purchaser for the purpose of identification immediately prior to the signing of this Agreement;


 


“Alex
SPA” means the sale and purchase agreement entered into on or around the date of this Agreement relating to the sale
of Alex Rutherford’s shares in the Company to the Purchaser and made between Alex Rutherford(1); the Purchaser (2) and the
Guarantors (3);


 


"Business
Day" means any day other than a Saturday or a Sunday or public holiday in England;


 


“"Companies"
means the Company and the Subsidiary;


 


"Companies
Act" means Companies Act 2006 and all other statutes and subordinate legislation from time to time in force concerning
companies and other bodies corporate;


 


"Company"
has the meaning given to it in Recital (A);


 


"Completion"
means completion of the sale and purchase of the Shares in accordance with Clause 3;


 


"Completion
Date" has the meaning given to it in clause 3.1;


 


"Confidential
Information" means all information in any medium or format of a confidential nature which (i) relates to the Purchaser
or (ii) is used in or otherwise relates to any of the Companies or their business, including but not limited to:


 


		(a)	the accounts, finance or contractual
arrangements or other dealings, transactions or affairs or officers, employees or contractors of any of the Companies;



 


		(b)	the marketing and supply of
goods or services, including customer and supplier names and lists and other details of customers and suppliers, sales targets,
sales statistics, market share statistics, prices, market research reports and surveys, and advertising or other promotional materials;
or



 


		(c)	future projects, business
development or planning, commercial relationships and negotiations;



 


“Deferred
Share” means a deferred ordinary share of £0.05 in the Company;


 


"Disclosed"
means disclosed in accordance with Clause 4.3;


 


"Disclosure
Letter" means the letter in the agreed form from the Sellers to the Purchaser of the same date as this Agreement and
which has been delivered to the Purchaser prior to the signing of this Agreement;


 


"Employment
Legislation" means legislation applying in England and Wales affecting contractual or other relations between employers
and their current or former employees or workers or applicants for employment or engagement including, but not limited to, any
legislation and any amendment, extension or re-enactment of such legislation and any claim arising under European treaty provisions
or directives enforceable against the Company by any employee, officer or worker;


 




    	46



    	 



    

 


"Encumbrance"
includes any claim, interest or equity of any person (including any right to acquire, option or right of pre-emption), any debenture,
mortgage, charge, pledge, lien, deposit by way of security, restriction, assignment, hypothecation, security interest, option,
right of pre-emption or assignment or factoring or similar agreement (including any created by law), title retention or transfer
or other security or preferential agreement or arrangement, and any rental, bill of sale, hire purchase, credit sale or other
agreement for payment on deferred terms or any agreement or commitment to give or create any of the foregoing;


 


"Group
Relief" means:


 


		(i)	any relief capable of being
surrendered or claimed pursuant to Part 5 of the Corporation Tax Act 2010; or



 


		(ii)	any Tax refund capable of
being surrendered or claimed pursuant to Section 963 of the Corporation Tax Act 2010 (previously section 102 of the Finance Act
1989); or



 


		(iii)	the notional transfer of any
asset or reallocation of a gain or loss in accordance with section 171A or section 179A of the Taxation of Chargeable Gains Act
1992 or any reallocation of a gain in accordance with section 792 of the Corporation Tax Act 2009 (previously paragraph 66 of
Schedule 29 to the Finance Act 2002); or



 


		(iv)	any relief the subject of
a surrender of eligible unrelieved foreign tax in accordance with The Double Taxation Relief (Surrender of Relievable Tax Within
a Group) Regulations 2001 (S.I. 2001 No. 1163); or



 


		(v)	any other relief available
to be transferred or surrendered between or claimed from other members of a group for Tax purposes;



 


"Immigration
Acts" means the Asylum & Immigration Act 1996 and the Immigration, Asylum and Nationality Act 2006 together with
any Statutory Instrument or Order made by a Secretary of State in exercise of powers conferred by such acts and any related or
accompanying guidance issued by the UK Border Agency or other UK Government Department responsible for immigration from time to
time;


 


"Intellectual
Property Rights" means:


 


		(i)	patents, designs, trade marks
and trade names (whether registered or unregistered), copyright and related rights, database rights, know how and confidential
information;



 


		(ii)	all other intellectual property
rights and similar or equivalent rights anywhere in the world which currently exist or are recognised in the future; and



 


		(iii)	applications, extensions and
renewals in relation to any such rights;



 


“Key
Warranties” means the warranties in paragraphs 3, 6, 8.1, 8.2, 8.4, 11.2 and 12.2.


 


"Lease"
means the lease under which the Property is held;


 


"Losses"
means direct losses, liabilities (including tax), damages, costs, expenses, fines, penalties, legal and other professional fees
and costs incurred before, on or after Completion but shall exclude any indirect losses, consequential losses or indirect loss
of profits;


 


"Management
Accounts" means the unaudited profit and loss accounts of the Subsidiary and the unaudited balance sheet of the Subsidiary
(copies of which are attached to the Disclosure Letter) for each month starting on the day after the Accounts Date and ending
on 31 December 2013;





 


"parties"
means the parties to this Agreement and includes their respective successors and permitted assigns;


 


"proceedings"
means any action or proceedings before a court or tribunal or a statutory, governmental or regulatory body (including an arbitration)
which has the power and authority to hear such action and who have statutory power
to deliver and to enforce any judgement that such body may deliver;


 


"Property"
means the property described in Schedule 10;


 






    	47



    	 



    

 


“Proven
Claim” means a Warranty Claim or claim under the Tax Covenant against the Sellers which is either agreed by the Sellers
or otherwise finally determined or resolved by a court or tribunal from which no leave to appeal is permitted where such determination
is in favour of the Purchaser and which results in a liability being established against the Sellers;


 


"Purchaser’s
Group" means any of the following from time to time: the Purchaser, the Guarantor, Loton Corporation and any entity controlled
or under common control of any of them (including without limitation their subsidiaries and subsidiary undertakings and any holding
company of the Purchaser, the Guarantor or Loton Corporation and all other subsidiaries and subsidiary undertakings of any holding
company of the Purchaser, including the Companies, the Guarantor or Loton Corporation) and “member of the Purchaser’s
Group” shall be construed accordingly;


 


"Purchaser's
Solicitors" means Wragge & Co LLP, 3 Waterhouse Square, 142 Holborn, London EC1N 2SW;


 


“Purchaser’s
Solicitors Client Account” means the client account of Wragge & Co LLP held with;


 


"Records"
means the Company’s books and records (including, without limitation, all bought and sold ledgers, purchase and sales day
books and purchase and sales invoices and the registration and renewal certificates for each Intellectual Property Right registered
at the date of this Agreement;


 


“Relevant
North London Boroughs” means the London Boroughs of Camden, Islington, Hackney and Haringey;


 


"Relief"
shall include any loss, relief, allowance, credit, deduction, exemption or set-off in respect of any Tax or relevant to the computation
of any income, profits or gains for the purposes of any Tax, or any right to repayment of or saving of Tax;


 


"Sellers’
Solicitors" means Peter Martin of Hollow Combe, Dome Hill Park, Sydenham Hill,
London SE26 6SP;


 


“Sellers’
Solicitors Client Account” means the client account of Berwin Leighton Paisner LLP held.


 


"Sale
Shares" has the meaning given to it in Recital (B);


 


"Subsidiary"
means the company, brief particulars of which are set out in Part 2 of Schedule 2 (Corporate Particulars);


 


"Tax"
or "Taxation" means:


 


(a)          any
and all forms of taxes, contributions, levies, imposts, duties or charges in the nature of taxation and all withholdings or deductions
in respect thereof of any nature whenever created or imposed and whether of the United Kingdom or elsewhere (including for the
avoidance of doubt any liability under section 455 of the Corporation Tax Act 2010 and employee and employer National Insurance
Contribution liabilities in the United Kingdom and corresponding obligations elsewhere) chargeable by or accountable or payable
to or imposed by, any Tax Authority and whether directly or primarily chargeable against, recoverable from or attributable to
the Company or any other person; and





 


(b)          all
charges, interest, penalties, surcharges and fines incidental or relating to any Taxation falling within (i) above or which arise
as a result of the failure to pay any Taxation on the due date or to comply with any obligation relating to Taxation;


 


"Taxation
Authority" means HM Revenue and Customs or any other taxing or other authority (whether within or outside the United
Kingdom) competent to impose, administer or collect any tax;


 






    	48



    	 



    

 


"Tax
Warranties" means each and every warranty contained in the Part of Schedule 3 (Warranties) entitled "Taxation";


 


"Tax
Covenant" means the provisions of Schedule 7 (Tax Covenant);


 


"Third
Party" means any person in whose favour any right or benefit under this Agreement is extended by the express use of the
term "Third Party", in which case the terms of paragraph 10 of Schedule 11 (Terms and Conditions) shall apply;


 


“Transitional
Services Agreement” means the agreement to be entered into between Mint Group Holdings Limited (1) and the Subsidiary(2)
and to be delivered at Completion;


 


"Warranties"
means all and any of the warranties set out in Clause 4 and Schedule 3 (Warranties);


 


"Warranty
Claim" means a claim by the Purchaser the basis of which is that any of the Warranties is, or is alleged to be untrue
or inaccurate; and


 


		2.	Interpretation



 


In,
and for the purposes of, this Agreement unless the context otherwise requires:


 


		2.1	Gender, Number, Persons
etc.



 


		(a)	The masculine gender shall
include the feminine and vice versa.



 


		(b)	References to any person shall
include any individual, body corporate and unincorporated association.



 


		(c)	References to a company include
any company and body corporate, wherever incorporated, and includes any limited liability partnership under the law of the United
Kingdom.



 


		(d)	References to any party include
a reference to the estate, legal personal representative, successor, or permitted assigns of that party.



 


		(e)	A person shall be deemed to
be connected with another if that person is connected with that other within the meaning of section 993 Income Tax Act 2007 and
section 1122 Corporation Tax Act 2010.



 


		2.2	Currency



 


		(a)	Sterling is the sole currency
of account and payment for all sums payable under or in connection with this Agreement, including damages.



 


		2.3	Concerning Warranties



 


		(a)	Where
any statement is qualified by the expression "so far as the Sellers are aware" or "to the best of the
Sellers’ knowledge information and belief" or any similar expression that statement shall be deemed to include
an additional statement that it has been made after having made (or authorised the
making of) diligent enquiry of each other Seller, Alex Rutherford and Oliver Bengough but having made no other enquiry;









 


		2.4	Parts of this Agreement



 


		(a)	Except where the contrary
is stated, any reference to a Clause or Schedule or Annexure is to a Clause or Schedule or Annexure of this Agreement.



 


		(b)	The headings and sub-headings
are inserted for convenience only and shall not affect the construction of this Agreement.



 


		(c)	The Schedules and Annexures
form part of this Agreement and shall have the same force and effect as if set out in the body of this Agreement.



 


		2.5	Companies



 


		(a)	A "subsidiary undertaking"
or "parent undertaking" has the meaning given in section 1162 of the Companies Act 2006 and a "subsidiary"
or "holding company" is to be construed in accordance with section 1159 of the Companies Act 2006.



 






    	49



    	 



    

 


		(b)	References to "Group"
in relation to any company mean that company, its subsidiaries, its holding companies and every subsidiary of each such holding
company from time to time; and



 


		(c)	Terms defined in part 38 of
the Companies Act 2006 (as applicable) shall bear the same meanings in this Agreement.



 


		2.6	Statute and Law



 


		(a)	References to any enactment
shall include (i) that enactment as respectively amended, modified, consolidated or re-enacted from time to time, and (ii) any
enactment which that enactment re-enacts (with or without modification) and (iii) any subordinate legislation made under that
enactment (as so amended, modified, consolidated or re-enacted) in each case before the date of this Agreement provided always
that any such amendment, modification, consolidation or enactment or re-enactment or subordinate legislation shall not result
in any new liability or any increase in any liability which would not otherwise have arisen under the original legislation or
statute.



 


		2.7	Certain words



 


		(a)	Any undertaking by a party
not to do any act or thing includes an undertaking not to allow, cause or assist the doing of that act or thing and to exercise
all rights of control over the affairs of any other person which that party is able to exercise (directly or indirectly) in order
to secure performance of that undertaking.



 


		2.8	Canons of Construction



 


		(a)	The rule known as the ejusdem
generis rule shall not apply and accordingly general words introduced by the word "other" shall not be given
a restrictive meaning by reason of the fact that they are preceded by words indicating a particular class of acts, matters or
things.



 


		(b)	General words shall not be
given a restrictive meaning by reason of the fact that they are followed by particular examples intended to be embraced by the
general terms.



 


		2.9	Certain Implied Terms



 


The
Law of Property (Miscellaneous Provisions) Act 1994 applies to the disposition of the Sale Shares and any other property made
under or pursuant to this Agreement, save that:


 





		(a)	the word "reasonably"
shall be deleted from the covenant set out in Section 2(1)(b) of that Act;



 


		(b)	the covenant set out in Section
3(1) of that Act shall not be qualified by the words "other than any charges, encumbrances or rights which that person does
not and could not reasonably be expected to know about"; and



 


		(c)	the provisions of Section
6(2) of that Act are excluded from this Agreement.



 


		3.	Language



 


The
English language is the language of choice of the parties in relation to this Agreement; notices, demands and other communications
given in connection with this Agreement shall be in the English language and if this Agreement is translated into any language
other than English, the English language text shall prevail.


 




    	50



    	 



    

 


	 	 
	Executed as a deed by	)
	HUGH DOHERTY	)
	in the presence of:	)
	Witness name:	 
	Signature of witness:	 
	 	 
	Address:	 
	 	 
	Occupation:	 
	 	 
	Executed as a deed by	)
	LAURENCE SEYMOUR	)
	in the presence of:	)
	Witness name:	 
	Signature of witness:	 
	 	 
	Address:	 
	 	 
	Occupation:	 
	 	 
	Executed as a deed by KOKO (CAMDEN)	)
	LIMITED acting by a director	)
	in the presence of:	)
	 	 
	Witness name:	 
	Signature of witness:	 
	 	 
	Address:	 
	 	 
	Occupation:	 



 






    	 



    	 



    




 


	Executed as a deed by	)
	OLIVER BENGOUGH	)
	in the presence of:	)
	Witness name:	 
	 	 
	Signature of witness:	 
	 	 
	Address:	 
	 	 
	Occupation:	 








 


	Executed as a deed by TRINAD CAPITAL	)
	MASTER FUND LTD
                                 acting by a director



	)
	 in the presence of:	)
	 	 
	Witness name:	 
	 	 
	Signature of witness:	 
	 	 
	Address:	 
	 	 
	Occupation:	 
	 	 
	 	)
	 	)
	 	)



 






    	 



    	 



    




 


	Executed as a deed by OBAR CAMDEN	)
	LIMITED acting by a director	)
	in the presence of:	)
	 	
	Witness name:	 
	 	 
	Signature of witness:	 
	 	 
	Address:	 
	 	 
	Occupation: