Document:

exv10w8xby

 

					
	 
	 	CONFORMED COPY
	 	Exhibit 10.8(b)

1 September 2005

AGREEMENT FOR THE SALE AND PURCHASE OF THE

BUSINESS AND ASSETS OF TRAVELEX UK LIMITED

TRM

(1) TRAVELEX UK LIMITED

(2) TRM (ATM) LIMITED

(3) TRM CORPORATION

 

 

\

CONTENTS

	 	 	 	 	 
	Clause	 	Page	 
	1. DEFINITIONS AND INTERPRETATION
	 	 	1	 
	 
	 	 	 	 
	2. AGREEMENT FOR SALE
	 	 	15	 
	 
	 	 	 	 
	3. EXCLUDED ASSETS
	 	 	16	 
	 
	 	 	 	 
	4. CONDITIONS
	 	 	16	 
	 
	 	 	 	 
	5. BETWEEN EXCHANGE AND COMPLETION
	 	 	17	 
	 
	 	 	 	 
	6. CONSIDERATION
	 	 	19	 
	 
	 	 	 	 
	7. COMPLETION ACCOUNTS
	 	 	21	 
	 
	 	 	 	 
	8. APPOINTMENT OF INDEPENDENT ACCOUNTANTS
	 	 	22	 
	 
	 	 	 	 
	9. COMPLETION
	 	 	24	 
	 
	 	 	 	 
	10. CONTRACTS
	 	 	27	 
	 
	 	 	 	 
	11. THIRD PARTY CONSENTS
	 	 	28	 
	 
	 	 	 	 
	12. DEBTORS AND CREDITORS
	 	 	30	 
	 
	 	 	 	 
	13. EMPLOYEES
	 	 	31	 
	 
	 	 	 	 
	14. WARRANTIES
	 	 	33	 
	 
	 	 	 	 
	15. PROTECTION OF THE INTERESTS OF THE BUYER
	 	 	36	 
	 
	 	 	 	 
	16. OBLIGATIONS AFTER COMPLETION AND FURTHER ASSURANCE
	 	 	39	 
	 
	 	 	 	 
	17. VAT
	 	 	40	 
	 
	 	 	 	 
	18. GUARANTEE
	 	 	41	 
	 
	 	 	 	 
	19. PAYMENTS AND INTEREST
	 	 	43	 
	 
	 	 	 	 
	20. ASSIGNMENT
	 	 	44	 
	 
	 	 	 	 
	21. CONDUCT OF INDEMNITY CLAIMS
	 	 	44	 
	 
	 	 	 	 
	22. ANNOUNCEMENTS AND CONFIDENTIALITY
	 	 	46	 
	 
	 	 	 	 
	23. COSTS
	 	 	47	 

 

 

	 	 	 	 	 
	Clause	 	Page	 
	24. NOTICES
	 	 	47	 
	 
	 	 	 	 
	25. THIRD PARTY RIGHTS
	 	 	48	 
	 
	 	 	 	 
	26. NO MERGER
	 	 	48	 
	 
	 	 	 	 
	27. COUNTERPARTS
	 	 	48	 
	 
	 	 	 	 
	28. ENTIRE AGREEMENT
	 	 	49	 
	 
	 	 	 	 
	29. GOVERNING LAW AND JURISDICTION
	 	 	49	 
	 
	 	 	 	 
	SCHEDULE 1
	 	 	 	 
	Confidential
Treatment
	 	 	49	 
	 
	 	 	 	 
	SCHEDULE 2
	 	 	 	 
	Confidential
Treatment
	 	 	49	 
	 
	 	 	 	 
	SCHEDULE 3
	 	 	 	 
	Warranties
	 	 	 	 
	Part 1: General
	 	 	50	 
	Part 2: Management Accounts and Current Trading
	 	 	52	 
	Part 3: Compliance and Litigation
	 	 	54	 
	Part 4: Contracts
	 	 	56	 
	Part 5: Assets
	 	 	58	 
	Part 6: Sites and Environment
	 	 	60	 
	Part 7: Pensions
	 	 	61	 
	Part 8: Employment
	 	 	63	 
	Part 9: Intellectual Property
	 	 	65	 
	Part 10: Information Technology
	 	 	67	 
	Part 11: Taxation
	 	 	69	 
	 
	 	 	 	 
	SCHEDULE 4
	 	 	 	 
	Limitations on Seller’s Liability
	 	 	70	 
	 
	 	 	 	 
	SCHEDULE 5
	 	 	 	 
	Conduct of Business Pending Completion
	 	 	77	 
	 
	 	 	 	 
	SCHEDULE 6
	 	 	 	 
	Confidential
Treatment
	 	 	79	 
	 
	 	 	 	 
	SCHEDULE 7
	 	 	 	 
	Confidential
Treatment
	 	 	79	 
	 
	 	 	 	 
	SCHEDULE 8
	 	 	 	 
	Confidential
Treatment
	 	 	79	 
	 
	 	 	 	 
	SCHEDULE 9
	 	 	 	 
	Confidential
Treatment
	 	 	79	 
	 
	 	 	 	 
	SCHEDULE 10
	 	 	 	 
	Confidential
Treatment
	 	 	79	 
	 
	 	 	 	 
	SCHEDULE 11
	 	 	 	 
	Confidential
Treatment
	 	 	79	 
	 
	 	 	 	 
	SCHEDULE 12
	 	 	 	 
	Confidential
Treatment
	 	 	79	 

 

 

Agreed Form Documents

Assignment of Debtors

Assignment of rights under Contracts

Assignments of Transferring Intellectual Property

Disclosure Letter

Escrow Agreement

Licence Agreement

Minutes of the Buyer

Minutes of the Seller

Share Purchase Agreement

Transitional Services Agreement

 

 

THIS AGREEMENT is made on 1 September 2005

BETWEEN:

	(1)	 	TRAVELEX UK LIMITED, a company incorporated in England and Wales (registered number 1985596)
whose registered office is at 65 Kingsway, London WC2B 6TB (the “Seller”);

	(2)	 	TRM (ATM) LIMITED, a company incorporated in England and Wales (registered number 37822309)
whose registered office is at 1A Meadowbrook, Crawley, West Sussex, RH10 9SA (the “Buyer”);
and

	(3)	 	TRM CORPORATION, a corporation organised and existing under the laws of the state of Oregon,
United States of America whose principal place of business is at 5208 NE 122nd
Avenue, Portland, Oregon 97230, USA (the “Guarantor”).

RECITALS:

	(A)	 	The Seller carries on the Business (as defined below).
	 
	(B)	 	The Seller wishes to sell and the Buyer wishes to buy the Business as a going concern on the
terms and conditions of this Agreement.
	 
	(C)	 	The Guarantor has agreed to guarantee the obligations of the Buyer on the terms and
conditions of this Agreement.

IT IS AGREED as follows:

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	In this Agreement, the following words and expressions shall have the following meanings
unless the context requires otherwise:

	 	 	 	 	 
	 

	 	“Accounts”
	 	the audited individual accounts (within the
meaning of section 226 Companies Act 1985) of
the Seller for the financial year ended on the
Accounts Date, a copy of which is annexed to
this Agreement marked “A”;
	 
	 	 	 	 
	 

	 	“Accounts Date”
	 	31 December 2004;

1

 

	 	 	 	 	 
	 

	 	“Aged Creditors”
	 	all sums due and owing by the Seller at the
Effective Time in connection with the Business
and in the ordinary course of trade but
excluding the Transferring Creditors;
	 
	 	 	 	 
	 

	 	“Aged Debtors”
	 	all sums receivable by or owing to the Seller
at the Effective Time in connection with the
Business and in the ordinary course of trade,
whether or not then invoiced or due, and any
interest payable on any such sum, but excluding
the Transferring Debtors;
	 
	 	 	 	 
	 

	 	“Assets”
	 	the assets and rights to be sold under this
Agreement, as listed in clause 6.2;
	 
	 	 	 	 
	 

	 	“ATM”
	 	a domestic currency dispensing automated teller
machine including any associated Housing and
software necessary to run the automated teller
machine;
	 
	 	 	 	 
	 

	 	“ATM Site”
	 	any site at which the Seller operates or
manages an ATM in the course of the Business;
	 
	 	 	 	 
	 

	 	“Business”
	 	the business of installing, operating and/or
managing ATMs carried on by the Seller in the
United Kingdom at the Effective Time under the
name and mark “Travelex” and/or “Alliance &
Leicester” but excluding the Excluded Business;
	 
	 	 	 	 
	 

	 	“Business Day”
	 	a day on which banks are open for business in
London, other than Saturday or Sunday;
	 
	 	 	 	 
	 

	 	“Business Design Right”
	 	the design right owned by the Seller at the
Effective Time and used exclusively for the
purposes of the Business and/or the business of
Travelex ATMs, details of which are set out in
schedule 1;
	 
	 	 	 	 
	 

	 	“Business Know-how”
	 	all know-how, trade secrets,
techniques, information, expertise or proprietary knowledge of

2

 

	 	 	 	 	 
	 

	 	 	 	the Seller at the Effective Time used
exclusively for the purposes of the Business
and/or the business of Travelex ATMs;
	 
	 	 	 	 
	 

	 	“Business Records”
	 	the records of the Seller at the Effective Time
relating wholly or mainly to the Business
and/or the business of Travelex ATMs, except as
comprised in the Excluded Assets including
inter alia:
	 
	 	 	 	 

	 	 	 	 	 	 	 
	 

	 	 
	 	(a)
	 	all PAYE, National Insurance and other
records relating to the Employees; and
	 
	 	 	 	 	 	 
	 

	 	 	 	(b)
	 	all documents relating to the Contracts;

	 	 	 	 	 
	 

	 	“Buyer’s Accountants”
	 	the Buyer’s accountants for the time being;
	 
	 	 	 	 
	 

	 	“Buyer’s Group”
	 	the Buyer, any ultimate parent undertaking of
the Buyer for the time being and all direct or
indirect subsidiary undertakings for the time
being of any such parent undertaking’s
accountants for the time being;
	 
	 	 	 	 
	 

	 	“Buyer’s Solicitors”
	 	Davenport Lyons of 30 Old Burlington Street,
London W1S 3NL;
	 
	 	 	 	 
	 

	 	“Companies Act 1985”
	 	the Companies Act 1985;
	 
	 	 	 	 
	 

	 	“Completion”
	 	completion of the sale and purchase of the
Business and the Assets in accordance with this
Agreement;
	 
	 	 	 	 
	 

	 	“Completion Accounts”
	 	a pro-forma statement of certain current assets
and certain current liabilities of the Seller
relating to the Business as at 5.30 pm on the
Completion Date, as listed in each case in part
1 of schedule 10 (Completion Accounts);
	 
	 	 	 	 
	 

	 	“Confidential Information”
	 	all confidential information and trade secrets

3

 

	 	 	 	 	 
	 

	 	 	 	relating exclusively to the Business or to the
business of Travelex ATMs including all
financial, marketing and technical information,
ideas, concepts, technology, processes and
knowledge together with lists or details of
customers, suppliers, prices, discounts,
margins, information relating to research and
development, current trading performance and
future business strategy and any information
derived from any of them and subsisting at the
Completion Date in each case to the extent
confidential and relating exclusively to the
Business and the business of Travelex ATMs;
	 
	 	 	 	 
	 

	 	“Completion Date”
	 	the date on which Completion takes place;
	 
	 	 	 	 
	 

	 	“Conditions”
	 	the conditions listed in clause 4.1;
	 
	 	 	 	 
	 

	 	“Contracts”
	 	all the agreements, written or oral, relating
exclusively to the Business and/or the business
of Travelex ATMs as listed in schedule 8
provided that references in this Agreement to
rights or obligations under or in connection
with the Contracts exclude the Aged Debtors,
the Transferring Debtors and the Aged Creditors
and Transferring Creditors respectively;
	 
	 	 	 	 
	 

	 	“Disclosure Letter”
	 	the disclosure letter in the agreed form from
the Seller to the Buyer, dated with the date of
this Agreement, together with the documents
attached to it;
	 
	 	 	 	 
	 

	 	“Effective Time”
	 	5.30 p.m. UK time on the Completion Date;
	 
	 	 	 	 
	 

	 	“Employees”
	 	the individuals employed or engaged wholly or
mainly in the Business at the Effective Time
which at the date of this Agreement consists of
those persons whose details are set out in
schedule 9;

4

 

	 	 	 	 	 
	 

	 	“Encumbrance”
	 	a mortgage, charge (fixed or floating), pledge,
lien, option, restriction, hypothecation,
guarantee, trust, right of set-off, right of
first refusal, right of pre-emption or other
third party right (legal or equitable),
interest or claim of any kind including any
assignment by way of security, reservation of
title or other security interest of any kind,
howsoever created or arising, or other
agreement or arrangement having similar effect;
	 
	 	 	 	 
	 

	 	“End Date”
	 	shall have the meaning given in the Share
Purchase Agreement;
	 
	 	 	 	 
	 

	 	“Environment”
	 	the natural and man-made environment and all or
any of the following media, namely air
(including air within buildings and air within
other natural or man-made structures above or
below ground), water (including water under or
within land or in drains or sewers and inland
waters), land and any living organisms or
systems supported by those media;
	 
	 	 	 	 
	 

	 	“Environmental Law”
	 	all applicable laws, regulations, directives,
statutes, subordinate legislation, common law,
civil codes and other national and local laws,
all judgments, orders, instructions or awards
of any court or competent authority and all
codes of practice, industry agreements and
guidance notes which primarily serve to protect
the Environment or human health and safety and
includes all laws relating to actual or
threatened emissions, seepages, discharges,
escapes, releases or leaks of pollutants,
contaminants or Hazardous Substances;
	 
	 	 	 	 
	 

	 	“Escrow Account”
	 	the bank account to be opened in the joint
names of the Seller’s Solicitors and the
Buyer’s Solicitors in accordance with the
Escrow Agreement;

5

 

	 	 	 	 	 
	 

	 	“Escrow Agreement”
	 	the agreement, in the agreed form, between the
Seller, Snax 24 Corporation Limited, the Buyer,
TRM Services Limited, the Seller’s Solicitors
and the Buyer’s Solicitors to be entered into
pursuant to the Share Purchase Agreement;
	 
	 	 	 	 
	 

	 	“Excluded Assets”
	 	those assets listed in schedule 2;

	 	 	 	 	 	 	 
	 

	 	“Excluded Business”
	 	(a)
	 	acting as “landlord” (and carrying out
maintenance activities) in relation to a site
on which an ATM is installed where that ATM is
operated by a third party paying a fee to the
Seller (whether that fee is fixed or calculated
by turnover or determined in any other way)
provided that the Seller shall not be in any
way otherwise involved in the operation of the
ATM in question or the processing of
transactions in relation to that ATM; or
	 
	 	 	 	 	 	 
	 

	 	 	 	(b)
	 	operating any ATM installed at any site
(including for example but without limitation
an airport terminal) at which the Seller or a
member of the Seller’s Group carries on any
foreign exchange business, whether or not the
ATM in question is located in the bureau at
which that foreign exchange business is carried
on; or
	 
	 	 	 	 	 	 
	 

	 	 	 	(c)
	 	operating any ATM which utilises so-called
“Dynamic Currency Conversion” technology;
	 
	 	 	 	 	 	 
	 	 	“Excluded Contract Liabilities”	 	all liabilities of the Seller relating to or
arising in connection with:
	 
	 	 	 	 	 	 
	 

	 	 	 	(a)
	 	any breach of contract or breach of duty
which is attributable to any act, neglect,
omission or default of the Seller or any

6

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	member
of the Seller’s Group prior to the Effective
Time; or
	 
	 	 	 	 	 	 
	 

	 	 	 	(b)
	 	any product delivered by any member of the
Seller’s Group or any service performed by any
member of the Seller’s Group prior to the
Effective Time;

	 	 	 	 	 
	 

	 	“Excluded Liabilities”
	 	the Excluded Contract Liabilities and all the
liabilities or obligations relating to the
Business or Assets (other than those
liabilities expressly assumed hereunder) and
outstanding on, or accrued or referable to the
period up to and including the Effective Time,
including but not limited to any and all
liabilities in respect of national insurance,
PAYE, VAT or other Taxation attributable to the
Seller in respect of the Business, the Assets
or the Employees relating to the period ending
at the Effective Time and all bank and other
overdrafts and loans owing by the Seller;
	 
	 	 	 	 
	 

	 	“Goodwill”
	 	all the goodwill, interest and connection of
the Seller in and concerning the customer base,
prospects and contacts of the Business at the
Effective Time together with the exclusive
right (so far as enjoyed by the Seller) to
carry on the Business and for the Buyer to
represent itself as carrying on the Business in
succession to the Seller;
	 
	 	 	 	 
	 

	 	“Group”
	 	the Buyer’s Group or the Seller’s Group, as the
context requires;

7

 

	 	 	 	 	 
	 

	 	“Hazardous Substances”
	 	any substance or organism which alone or in
combination with others may cause harm or
damage to the Environment, human health and
safety, flora or fauna and includes without
limitation, any hazardous or toxic materials,
pollutants and wastes;
	 
	 	 	 	 
	 

	 	“Hire Agreement”
	 	an operating lease, finance lease or hire
purchase agreement;
	 
	 	 	 	 
	 

	 	“Housing”
	 	any cabinet, kiosk, acoustic hood, shelter or
booth or similar things (including any side
panels, door, signage, lighting, metal frame,
back plate or other configuration) forming the
structure of an ATM;
	 
	 	 	 	 
	 

	 	“ICTA”
	 	the Income and Corporation Taxes Act 1988;
	 
	 	 	 	 
	 

	 	“Independent
Accountants”

	 	the independent firm of chartered
accountants to whom matters are referred in accordance with
clause 8.1;
	 
	 	 	 	 
	 

	 	“Intellectual Property Rights”
	 	all Registered Intellectual Property Rights and
all inventions (whether patentable or not),
design rights, database rights, copyright,
moral rights, semiconductor topography rights,
unregistered trade and service marks, logos,
get-up and trade names and the goodwill
attaching to them, Know-how, and any rights or
forms of protection of a similar nature and
having equivalent or similar effect to any of
them which subsist anywhere in the world;
	 
	 	 	 	 
	 

	 	“Know-how”
	 	all know-how, trade secrets and confidential
information, in any form (including paper,
electronically stored data, magnetic media,
film and microfilm) including without
limitation drawings, formulae, test results or
reports, project reports and

8

 

	 	 	 	 	 
	 

	 	 	 	testing
procedures, information relating to the working
of any product, process, invention, improvement
or development, instruction and training
manuals, tables of operating conditions,
information concerning intellectual property
portfolio and strategy, market forecasts, lists
or particulars of customers and suppliers,
sales targets, sales statistics, prices,
discounts, mark-ups, future business strategy,
tenders, price sensitive information, market
research reports and business development and
planning reports but always excluding any
Confidential Information;
	 
	 	 	 	 
	 

	 	“Leased Equipment”
	 	all assets used (but not owned) by the Seller
exclusively for the purposes of the Business
and which are the subject of a Hire Agreement;
	 
	 	 	 	 
	 

	 	“Licence Agreement”
	 	the perpetual royalty free licence of the use
of the Business Design Right, in the agreed
form, to be granted by the Buyer to the Seller
on Completion;
	 
	 	 	 	 
	 

	 	“Losses”
	 	in relation to any matter, all liabilities,
losses, claims, damages, fines, penalties,
costs and expenses relating to that matter
(including for the avoidance of doubt all
reasonable and properly incurred legal and
other professional costs);
	 
	 	 	 	 
	 

	 	“Management Accounts”
	 	the unaudited management accounts of the Seller
in relation to the Business comprising balance
sheets as at 31 December 2004 and as at 30 June
2005 and profit and loss accounts for the
periods which began on (a) 1 January 2004 and
ended on 31 December 2004 and (b) 1 January
2005 and ended on 30 June 2005 copies of which
are annexed to this Agreement marked “B”;

9

 

	 	 	 	 	 
	 

	 	“Net Current Liability Statement”
	 	the statement of the Net Current Liability
Value in the format set out in part 3 of
schedule 10 (Completion Accounts);
	 
	 	 	 	 
	 

	 	“Net Current Liability Value”
	 	the amount (if any) in pounds sterling by which
the aggregate value of those liabilities of the
Seller relating to the Business as at the
Completion Date that are listed in part 1 of
schedule 10 (Completion Accounts) (the
repayment of which, for the avoidance of doubt,
is being assumed by the Buyer pursuant to this
Agreement) exceed the aggregate value of those
assets of the Seller relating to the Business
as at the Completion Date that are listed in
part 1 of schedule 10 (Completion Accounts)
(which assets are for the avoidance of doubt,
being acquired by the Buyer pursuant to this
Agreement) as shown in the Completion Accounts
(and for the avoidance of doubt, the amount of
that excess (if any) shall be expressed as a
positive rather than as a negative figure), and
provided that (a) if the aggregate amount of
those liabilities is equal to the aggregate
amount of those assets, the Net Current
Liability Value shall be zero; and (b) if the
aggregate amount of those liabilities is less
than the aggregate amount of those assets then
the amount of that shortfall shall be expressed
as a negative (rather than as a positive)
amount, so that (for illustrative purposes
only) if the aggregate amount of those
liabilities exceeds the aggregate value of
those assets by £100,000, the Net Current
Liability Value shall be £100,000 and if the
aggregate amount of those liabilities is less
than the aggregate value of those assets by
£100,000, the Net Current Liability Value shall
be –(£100,000);

10

 

	 	 	 	 	 
	 

	 	“Pension Scheme”
	 	means the scheme known as the Travelex Group
Personal Pension Plan operated by Scottish
Equitable plc;
	 
	 	 	 	 
	 

	 	“Plant and Equipment”
	 	such of the ATMs as are listed in schedule 6
which are owned by the Seller at the Effective
Time and held exclusively for the purposes of
the Business and/or the business of Travelex
ATMs, and other items of plant, machinery,
fittings, tools and equipment, including
computer systems, office furniture and motor
vehicles, excluding any assets comprised within
the Excluded Assets, owned by the Seller at the
Effective Time and held exclusively for the
purposes of the Business and/or the business of
Travelex ATMs including but not limited to the
items described in schedule 11;
	 
	 	 	 	 
	 

	 	“Registered Intellectual
Property Rights”
	 	all patents, utility models, registered
designs, registered copyrights, plant variety
rights, registered trade and service marks and
the goodwill attaching to them, domain names
and applications for registration and rights to
grant of them and any rights or forms of protection of a similar nature anywhere in the
world;
	 
	 	 	 	 
	 

	 	“Repeated Warranties”
	 	the Warranties other than those set out in
paragraph 2.2 of part 2 of schedule 3, as such
warranties continue to be repeated in
accordance with clause 14.1 between the date of
this Agreement and the Completion Date provided
that, for the purposes of this definition,
references to Employees in the Warranties
contained in part 8 of schedule 3 shall be to
the Employees as at the date of this Agreement;
	 
	 	 	 	 
	 

	 	“Sellers’ Accountants”
	 	the Seller’s accountants for the time being.

11

 

	 	 	 	 	 
	 

	 	“Seller’s Group”
	 	Travelex Holdings Limited and all direct or
indirect subsidiary undertakings for the time
being of Travelex Holdings Limited;
	 
	 	 	 	 
	 

	 	“Seller’s Solicitors”
	 	Olswang of 90 High Holborn, London WC1V 6XX;
	 
	 	 	 	 
	 

	 	“Share Purchase Agreement”
	 	the agreement, in the agreed form, between TRM
Services Limited, the Seller and Snax 24
Corporation Limited, with the same date as this
Agreement relating to the sale of the Shares;
	 
	 	 	 	 
	 

	 	“Shares”
	 	shall have the meaning given to it in the
definitions of the Share Purchase Agreement;
	 
	 	 	 	 
	 

	 	“Site Agreement”
	 	has the meaning given to it in paragraph 1.1 of
part 6 of schedule 3;
	 
	 	 	 	 
	 

	 	“Tax” or “Taxation”
	 	all forms of taxation, duties, rates, levies,
withholdings, deductions, charges and imposts
imposed in the United Kingdom or elsewhere, and
all penalties, surcharges, fines and interest
relating to any of the above but excluding any
stamp duty, stamp duty land tax or stamp duty
reserve tax payable on this Agreement or any
instrument executed pursuant to this Agreement
or on any agreement relating to the Business
and excluding business rates;
	 
	 	 	 	 
	 

	 	“Tax Authority”
	 	HM Revenue and Customs and any other authority
body or official (whether in the United Kingdom
or elsewhere) competent to assess, demand,
impose, administer or collect Tax;
	 
	 	 	 	 
	 

	 	“Trade Marks”
	 	business names, domain names, registered and
unregistered trade marks and applications for
registration of any of the above;

12

 

	 	 	 	 	 
	 

	 	“Transfer Regulations”
	 	the Transfer of Undertakings (Protection of
Employment) Regulations 1981;
	 
	 	 	 	 
	 

	 	“Transferring Creditors”
	 	all sums due and owing by the Seller for fewer
than 60 days from the date of supply of the
goods or services or if the provision for such
goods or services is ongoing, the date of
invoice at the Effective Time in connection
with the Business and in the ordinary course of
trade and excluding (a) any amounts due in
respect of the purchase of fixed assets (b)
amounts due to members of the Seller’s Group
and (c) any such sums comprised within the
Excluded Liabilities;
	 
	 	 	 	 
	 

	 	“Transferring Debtors”
	 	all sums receivable by or owing to the Seller
at the Effective Time in connection with the
Business and in the ordinary course of trade
and which have been owing to the Seller for
fewer than 60 days from the date of supply of
goods or services, and whether or not then
invoiced or due, but excluding any such sum
comprised within the Excluded Assets;
	 
	 	 	 	 
	 

	 	“Transferring Intellectual
Property”
	 	the Business Design Right, the Goodwill
associated exclusively with the Business, the
Business Know-how and all other Intellectual
Property Rights owned by the Seller at the
Effective Time and used exclusively for the
purposes of the Business and/or the business of
Travelex ATMs, including the Intellectual
Property Rights listed in schedule 1, but excluding any Intellectual Property Rights
comprised within the Excluded Assets;
	 
	 	 	 	 
	 

	 	“Transitional Services
Agreement”
	 	the transitional services agreement in the
agreed form to be entered into between the Seller and the Buyer and Travelex ATMs on the
date of this Agreement;

13

 

	 	 	 	 	 
	 

	 	“Travelex ATMs”
	 	Travelex ATMs Limited, a private company
limited by shares incorporated in England and
Wales with registered number 4046739;
	 
	 	 	 	 
	 

	 	“Travelex Holdings Limited.”
	 	a company incorporated in England and Wales
(registered number: 4090247) whose registered
office is at 65 Kingsway, London WC2B 6TB;
	 
	 	 	 	 
	 

	 	“VAT”
	 	value added tax, as provided for in VATA, and
any tax imposed in substitution for it;
	 
	 	 	 	 
	 

	 	“VATA”
	 	the Value Added Tax Act 1994;
	 
	 	 	 	 
	 

	 	“Warranties”
	 	the warranties of the Seller given under clause
14.1 which are set out in schedule 3; and
	 
	 	 	 	 
	 

	 	“Warranty Claim”
	 	a claim for any breach of any of the Warranties.

	1.2	 	In this Agreement, unless the context requires otherwise:

	 	1.2.1	 	any reference to the parties or a recital, clause or schedule is to the
parties or the relevant recital, clause or schedule of or to this Agreement, and any
reference in a schedule to a paragraph is to a paragraph of that schedule or, where
relevant, that part of that schedule;
	 
	 	1.2.2	 	the clause headings are included for convenience only and shall not affect the
interpretation of this Agreement;
	 
	 	1.2.3	 	use of the singular includes the plural and vice versa;
	 
	 	1.2.4	 	use of any gender includes the other genders;
	 
	 	1.2.5	 	“financial year”, “parent undertaking” and “subsidiary undertaking” have the
meanings given to them by sections 223 and 258 of the Companies Act 1985 respectively;
	 
	 	1.2.6	 	any reference to a statute, statutory provision or subordinate legislation
(“legislation”) shall be construed as referring to that legislation as amended and in
force from time to time and to any legislation which re-enacts or consolidates (with or
without modification) any such legislation except to the extent that any amendment,
re-enactment or 

14

 

	 	 	 	consolidation on or after the date of this Agreement would increase the
liability of any party under this Agreement; and

	 	1.2.7	 	any reference to a document being “in the agreed form” means a document in a
form agreed by the parties and either entered into on the date of this Agreement by the
relevant parties or initialled by the parties or on their behalf by the Seller’s
Solicitors or
by the Buyer’s Solicitors, in the latter case with such amendments as they may
subsequently agree;
	 
	 	1.2.8	 	if a period of time is specified and dates from a given day or the day of an
act or event, it shall be calculated exclusive of that day;
	 
	 	1.2.9	 	a person shall be deemed to be connected with another if that person is
connected with another within the meaning of section 839 ICTA;
	 
	 	1.2.10	 	references to writing shall include any modes of reproducing words in a legible and
non-transitory form (but not e-mail);
	 
	 	1.2.11	 	reference to a balance sheet or profit and loss account shall include a reference to
any note forming part of it; and
	 
	 	1.2.12	 	references to this Agreement include this Agreement as amended or supplemented in
accordance with its terms.

	1.3	 	The schedules and recitals form part of this Agreement and shall have effect as if set out in
full in the body of this Agreement, and any reference to this Agreement includes the schedules
and recitals.
	 
	2.	 	AGREEMENT FOR SALE
	 
	2.1	 	Subject to the terms of this Agreement, the Seller shall sell or cause to be sold and the
Buyer shall buy the Business as a going concern and all the Assets with effect from the
Effective Time.
	 
	2.2	 	The Seller shall sell and the Buyer shall purchase the Assets and all attached or accrued
rights free from all Encumbrances with full title guarantee, save as provided in clause 11 and
save in relation to the Transferring Intellectual Property Rights where the only Warranties
given are as set out in part 9 of schedule 3.

15

 

	3.	 	EXCLUDED ASSETS
	 
	3.1	 	Nothing in this Agreement shall operate to transfer to the Buyer any interest in any of the
Excluded Assets.
	 
	3.2	 	The Seller acknowledges and agrees that the Buyer will not assume or have any liability or
obligation in respect of:

	 	3.2.1	 	the Excluded Assets;
	 
	 	3.2.2	 	the Excluded Liabilities; or
	 
	 	3.2.3	 	the Business save to the extent expressly assumed or incurred by it under this
Agreement and save for liabilities under the Transfer Regulations,

	 	 	and the Seller shall indemnify the Buyer on demand against all Losses which the Buyer incurs
in relation to any liability or obligation not to be assumed or incurred by the Buyer in
accordance with this clause 3.2.
	 
	4.	 	CONDITIONS
	 
	4.1	 	Completion is subject to the following conditions being satisfied or (where permitted) waived
on or before 5.30 p.m. (London time) on the End Date:

	 	4.1.1	 	unconditional written consent from each counterparty to the Contracts listed
in schedule 7 to the change of control of Travelex ATMs or to the assignment of the
relevant Contract to the Buyer, as appropriate, having been obtained (or deemed
obtained in accordance with clause 4.2);
	 
	 	4.1.2	 	the funding for the consideration for the purchase of the Business and Assets
having been obtained on terms and conditions satisfactory to the Buyer.

	4.2	 	The Seller shall use all reasonable endeavours to procure that the Condition set out in
clause 4.1.1 is satisfied on or before the End Date. The Buyer shall provide all reasonable
information relating to it and to the Buyer’s Group as is reasonably requested by any
counterparty such as is referred to in clause 4.1.1 and, for the purposes of obtaining the
consents referred to in that clause, the Guarantor shall (if so requested by any such
counterparty) offer a reasonable guarantee of the obligations of the Seller or Travelex ATMs
(as the case may be) under the relevant contract. If the Guarantor fails to supply any such
guarantee or the Buyer is in material

16

 

	 	 	breach of its obligations under the previous sentence, then without prejudice to the other rights of the
Seller, the consent of the relevant counterparty shall be deemed obtained for the purpose of clause 4.1.1
if such failure is the reason for the consent not having been obtained. The Buyer shall take all
reasonable steps to obtain the funding referred to in clause 4.1.2 on or before the End Date provided that
the Buyer shall be under no obligation to continue to raise the funding save to the extent that (a) such
funding ceases to be viable because of a material adverse change affecting stock markets or interest rates
or (b) to the extent that funding on terms acceptable to the proposed suppliers of financing would be
likely to result in the share price of the Guarantor falling by more than US$1.55. The Buyer shall not be
obliged to accept the offer of any funds unless the funding is available to the Buyer on terms reasonably
believed by it to be commercially reasonable.

	4.3	 	The Buyer may by notice to the Seller waive the Condition set out in clause 4.1.1.
	 
	4.4	 	If the Conditions have not been fulfilled or waived, where permitted by clause 4.3, on or
before the End Date, the provisions of this Agreement shall terminate and no party shall have
any further rights or obligations under this Agreement, including accrued rights and
obligations at the time of termination (other than accrued rights and obligations in respect
of breaches of clause 4.2, which accrued rights and obligations shall not be affected by
termination) save that clauses 18, 20 and 22 to 24 inclusive and 28 and 29 shall remain
binding on the parties in accordance with their terms.
	 
	5.	 	BETWEEN EXCHANGE AND COMPLETION
	 
	5.1	 	During the period between the signing of this Agreement and ending on Completion or the
termination of this Agreement (whichever is the earlier) the Seller shall comply with the
provisions set out in schedule 5.
	 
	5.2	 	The Seller shall procure that during the period beginning on the signing of this Agreement
and ending at Completion or the termination of this Agreement (whichever is earlier) the Buyer
and any persons authorised by it shall be given reasonable access during normal business hours
and on reasonable notice to the employees, premises, plant, machinery, books of account,
records and documents of the Business and the directors and employees shall be instructed to
give as soon as reasonably practicable to the Buyer and any persons authorised by it all
information in relation to the Business as the Buyer may reasonably request.
	 
	5.3	 	The Seller shall indemnify the Buyer in respect of any reduction in the value of the Business
and Assets arising as a result of all breaches of the Repeated Warranties if (and only if) the
aggregate

17

 

	 	 	amount of that reduction, and the aggregate reduction in the value of the Business and the
Assets caused by all breaches of the Repeated Warranties as defined in the Share Purchase
Agreement, exceeds £250,000 in which event the Seller shall, subject to clauses 5.5 and 5.6,
indemnify the Buyer for the entire amount of the reduction in the value of the Business and
Assets, including any amount taken into account in reaching the £250,000 threshold.

	5.4	 	If following the date of this Agreement, but before Completion, or any termination of this
Agreement the Buyer becomes aware of any breach of the Repeated Warranties entitling it to be
indemnified under clause 5.3, then subject to clause 5.5 the Buyer shall within five Business
Days of becoming aware of the relevant breach give notice to the Seller giving its best
estimate of the diminution in the value of the Business and Assets caused by the breach or
breaches in question and requiring that the amount of the specified diminution in value shall
at Completion be deducted from the purchase price payable in accordance with clause 19 and
shall instead be deposited into the Escrow Account and only be released from such account in
accordance with the terms of the Escrow Agreement.
	 
	5.5	 	The Buyer shall have no rights to be indemnified under clause 5.3 or otherwise in respect of
any breach of the Repeated Warranties resulting from:

	 	5.5.1	 	any fact or matter disclosed in the Disclosure Letter on the basis set out in
clause 14.1 or any claim made or proceedings threatened by any third party arising out
of any fact or matter disclosed in the Disclosure Letter on such basis; or
	 
	 	5.5.2	 	any change in stock markets, interest rates, exchange rates, or other general
economic conditions generally affecting the industry in which the Business operates.

	5.6	 	The Seller shall not be liable in respect of a breach of a Repeated Warranty if, on or before
the date falling 10 Business Days after the date on which notice of that breach is received by
the Seller under clause 5.4, the Seller has remedied the relevant breach or prevented the
Buyer from suffering any potential loss in respect of the subject matter of that breach or
caused any loss which could be so suffered by the Buyer to be made good. The Buyer shall
comply with all reasonable requests made by the Seller at the Seller’s cost during that period
for the purposes of so remedying any such breach or preventing any such loss.

18

 

	6.	 	CONSIDERATION
	 
	6.1	 	The purchase price for the Assets shall be £11,528,000, apportioned between the Assets as
provided for in clause 6.2, together with VAT (if any) chargeable in respect of the sale plus
any sum payable by the Buyer and minus any sum payable to the Buyer pursuant to clause 6.4.
	 
	6.2	 	The purchase price for the Assets shall be apportioned as follows:

	 	 	 
	Asset	 	Purchase Price
	 	 	(stated in pounds sterling or
	 	 	as a percentage of the
	 	 	balance of the purchase price)
	 
	 	 
	Business Records:

	 	£1
	 
	 	 
	rights under and in connection with the Contracts, subject to
clause 10.6:

	 	£1
	 
	 	 
	Transferring Debtors:

	 	the face value of the Transferring Debtors
	 
	 	 
	Plant and Equipment:

	 	20% of (the total purchase price less £4)
	 
	 	 
	Transferring Intellectual Property and Goodwill comprised in
Transferring Intellectual Property:

	 	£1
	 
	 	 
	Goodwill (other than that comprised in the Transferring

Intellectual Property):

	 	80% of (the total purchase price
less £4) less the face value of the Transferring Debtors plus the face
value of the Transferring Creditors
	 
	 	 
	Transferring Creditors the discharge of which is (the face
value of the Transferring Creditors) assumed by the Buyer
pursuant to clause 12.6

	 	Minus the face value of the Transferring Creditors

19

 

	 	 	 
	Asset	 	Purchase Price
	 	 	(stated in pounds sterling or
	 	 	as a percentage of the
	 	 	balance of the purchase price)
	 
	 	 
	all other rights and assets of the Seller at the Effective Time
relating exclusively to the Business and/or the business of
Travelex ATMs, other than the Excluded Assets:

	 	£1
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	£11,528,000
	 
	 	 
	 

	 	 

	6.3	 	The apportionment referred to in clause 6.2 shall apply for all purposes, including stamp
duty and any other form of Taxation, but shall not in any way limit the liability of the
Seller in respect of any Warranty Claim.
	 
	6.4	 	On the date falling five Business Days after the calculation of the Net Current Liability
Value becomes final and binding on the parties in accordance with this Agreement:

	 	6.4.1	 	if the Net Current Liability Value is greater than £(X+C) the Seller shall pay
to the Buyer an amount equal to the amount by which the Net Current Liability Value
exceeds £(X+C); or
	 
	 	6.4.2	 	if the Net Current Liability Value is less than £(X-C) the Buyer shall pay to
the Seller an amount equal to the amount by which the Net Current Liability Value is
less than £(X-C);

	 	 	where:

	 	 	 	 	 	 	 	 	 
	 

	 	 X =
	 	£95,322
	 	x B
	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	A	 	 	 	 

	 	 	A = 258
	 
	 	 	B = the number of ATMs in operation as at the Completion Date
	 
	 	 	C = £25,000
	 
	 	 	together in either case with interest accruing from day to day, both before and after
judgment, from the Completion Date until the date of payment at a rate two per cent. above
the base rate for the time being of Barclays Bank plc. All payments pursuant to this clause
shall be made by telegraphic transfer of immediately available funds to the bank accounts
specified in clause 19.

20

 

	7.	 	COMPLETION ACCOUNTS
	 
	7.1	 	The Seller shall use its reasonable endeavours to ensure that a draft of the Completion
Accounts is prepared as soon as possible after Completion and delivered to the Buyer on or
before the date falling 20 Business Days after Completion, together with the Net Current
Liability Statement signed by the Seller.
	 
	7.2	 	The Completion Accounts shall be drawn up in accordance with the accounting bases, methods
and policies set out in part 2 of schedule 10.
	 
	7.3	 	The draft Completion Accounts and the calculation of the Net Current Liability Value set out
in the Net Current Liability Statement shall be deemed agreed by the Buyer on the date falling
10 Business Days after the date on which those documents are first delivered to the Buyer and
shall be final and binding on the parties for all purposes (and shall respectively constitute
the Completion Accounts for the purposes of this Agreement and the Net Current Liability Value
for the purposes of clause 6), unless during that period the Buyer gives notice to the Seller
that it disagrees with the calculation of the Net Current Liability included in the Net
Current Liability Statement. Any notice so given shall include reasonable details (so far as
practicable) of the reasons for any disagreement and any suggested adjustment, together with
reasonable supporting evidence for each adjustment, including any relevant working papers.
	 
	7.4	 	If any notice is so served by the Buyer during such 10 Business Day period, the Buyer and the
Seller shall attempt in good faith to resolve any matters in dispute and agree a final form of
Completion Accounts and the calculation of the Net Current Liability Value on or before the
date falling 10 Business Days after the date on which the Sellers receive that notice. The
Completion Accounts and the calculation of the Net Current Liability Value so agreed by them
shall be final and binding on the parties for all purposes (and shall respectively constitute
the Completion Accounts for the purposes of this Agreement and the Net Current Liability Value
for the purposes of clause 6). In the absence of agreement between the Buyer and the Seller
within that time period, the Independent Accountants shall be instructed to deliver a
determination of the matters in dispute and a calculation of the amount of the Net Current
Liability Value and revised Completion Accounts adjusted only to take account of the matters
determined by them. As so revised, the Completion Accounts shall then constitute the
Completion Accounts for the purposes of this Agreement.
	 
	7.5	 	Each party shall promptly provide to the other or the other’s accountants or professional
advisers (and to the Independent Accountants) all such documents and information as may
reasonably be

21

 

	 	 	requested for the purpose of preparing or reviewing the Completion Accounts and the Net
Current Liability Statement. The parties’ obligations under this clause shall, without
limitation, extend to providing access to or copies of all working papers in their
possession or under their control (other than those created by their respective accountants)
created in the course of the preparation and/or review of the Completion Accounts and/or Net
Current Liability Statement, together (in the case of the Buyer) with extracts from the
Seller’s accounting records to which the working papers relate or from which the working
papers have drawn information, and access upon reasonable notice and during normal working
hours to relevant personnel, and to relevant records and information within the possession
or under the control, of the relevant party.

	8.	 	APPOINTMENT OF INDEPENDENT ACCOUNTANTS
	 
	8.1	 	Any matters which this Agreement provides are to be determined by the Independent Accountants
may be referred for determination by either the Seller or the Buyer to:

	 	8.1.1	 	KPMG or (if they refuse to accept instructions) Deloitte or (if they refuse to
accept instructions) any other independent firm of chartered accountants whose identity
is agreed between the Seller and the Buyer and whose terms of engagement are agreed to
and signed by the accountants, the Seller and the Buyer; or
	 
	 	8.1.2	 	if no such firm is agreed or no such terms of engagement are signed on or
before the date falling 20 Business Days after the date on which a firm accepts
instructions (in the case of KPMG or Deloitte) or in any other case is first proposed
by either party to the other for the purpose, such independent firm of chartered
accountants on such terms of engagement as shall be chosen or (as the case may be)
specified on the application of either party by the President for the time being of the
Institute of Chartered Accountants in England and Wales. If the Seller or the Buyer
fails to sign such terms of engagement on or before the date falling five Business Days
after the date on which such choice or (as the case may be) specification is made,
Independent Accountants shall be deemed to have been appointed and to have determined
the matter or matters to be referred to the Independent Accountants under this clause
in favour of the party who has signed the terms of engagement.

	8.2	 	The Independent Accountants:

	 	8.2.1	 	shall act as experts and not as arbitrators;

22

 

	 	8.2.2	 	shall decide on the procedure (subject to clause 8.2.3) and timetable to be
followed in the determination (provided that, in any event, they shall give the Seller
and the Buyer the opportunity of making such representations as they may reasonably
require); and
	 
	 	8.2.3	 	shall be required only to determine those matters that this Agreement provides
should be determined by them (and not any additional or separate issues subsequently
raised by the parties) and deliver such determination and any calculation, statement or
accounts required to be provided by them by this Agreement in writing to the parties on
or before the date falling 20 Business Days after the date of the appointment of the
Independent Accountants.

	8.3	 	In the absence of fraud or manifest error, the decision of the Independent Accountants and
any determination and any calculation, statement or accounts required to be provided by them
by this Agreement shall be final and binding on the parties for all purposes. The fees and
expenses of the Independent Accountants shall be paid by such party or parties as the
Independent Accountants shall determine to be appropriate in their sole discretion, having
regard to the relative merits of the arguments of each of the parties. In default of a
determination by the Independent Accountants as to fees and expenses, they shall be borne as
to 50 per cent. by the Buyer and 50 per cent. by the Seller.
	 
	8.4	 	The Seller and the Buyer shall each use all reasonable endeavours to co-operate with the
Independent Accountants and to enable them to reach their determination within the time period
set by this Agreement including by co-operating with any timetable and procedure set by the
Independent Accountants. In particular, the Seller and the Buyer shall each provide each
other and the Independent Accountants with or with access to all such documents and
information as are in their possession or under their control, and access to all relevant
personnel upon reasonable prior notice and during normal working hours, as may from time to
time be requested by the Independent Accountants in their absolute discretion. In the event
that any of the Seller or the Buyer does not co-operate with or grant access to or supply any
document or information so requested within any time specified by the Independent Accountants,
the Independent Accountants shall be entitled to make such assumptions for the purposes of
making their determination (including any determination as to costs) as a result of that
failure to co-operate, grant access or supply such document or information as they shall in
their absolute discretion determine to be appropriate.

23

 

	9.	 	COMPLETION
	 
	9.1	 	Subject to clauses 9.5 to 9.8 (inclusive) Completion shall take place at the offices of the
Seller’s Solicitors within two Business Days after all of the Conditions have been fulfilled
or waived in accordance with clause 4 (or such later date as the Buyer and the Seller shall
agree).
	 
	9.2	 	At Completion:

	 	9.2.1	 	property and risk in the Assets shall pass to the Buyer; and
	 
	 	9.2.2	 	every Asset which is then in the possession of the Seller, legal title to
which is capable of passing to the Buyer by delivery, shall be constructively delivered
to the Buyer.

	9.3	 	At Completion, the Seller shall deliver or make available to the Buyer:

	 	9.3.1	 	an assignment of the Seller’s rights under and in connection with the
Contracts in the agreed form executed by the Seller;
	 
	 	9.3.2	 	an assignment of the Transferring Debtors in the agreed form executed by the
Seller;
	 
	 	9.3.3	 	the written consents referred to in clause 4.1.1 (save where any consent is
deemed given under clause 4.2);
	 
	 	9.3.4	 	assignments of the Transferring Intellectual Property in the agreed form,
executed by the Seller;
	 
	 	9.3.5	 	certificates of registration and/or filing receipts and the other documents
relating to the Transferring Intellectual Property to the extent that the same are in
the possession or under the control of the Seller;
	 
	 	9.3.6	 	all consents required for the sale of the Business and Assets from Apax
Partners Europe Managers Limited and agents of the senior and mezzanine financiers
under certain financing arrangements;
	 
	 	9.3.7	 	written confirmation, in a form reasonably acceptable to the Buyer, that the
master agreement between Travelex UK Limited, TotalFinaElf UK Limited and Travelex ATMs
Limited has not been terminated and is in force;
	 
	 	9.3.8	 	the Licence Agreement executed by the Seller;

24

 

	 	9.3.9	 	a deed of release in a form reasonably acceptable to the Buyer executed by
Barclays Bank plc consenting to the transfer of the Assets;
	 
	 	9.3.10	 	a list of all the ATMs for which planning permission has been obtained as described
in paragraph 1.6 of part 6 of schedule 3;
	 
	 	9.3.11	 	a certified copy of the minutes of a meeting of the directors of the Seller in the
agreed form resolving that the Seller should enter into this Agreement, and each other
document to be signed by it at Completion, and authorising the execution of those
documents by each person signing on behalf of the Seller;
	 
	 	9.3.12	 	a list of all Site Agreements falling within paragraph 1.6.6 of part 4 of schedule 3;
	 
	 	9.3.13	 	the Contracts and such original documents in relation to them to the extent that, in
both cases, the same are in the possession of or under the control of the Seller;
	 
	 	9.3.14	 	the Business Records to the extent that the same are in the possession of or under
the control of the Seller; and
	 
	 	9.3.15	 	subject to clause 15.11.2, pay the sum of £50,000 to the Buyer and the Buyer hereby
undertakes to use such sum to make a bonus payment to Nick Cockett if he remains an
employee of the Buyer for the 6 months following Completion, and further provided that
such sum is repaid to the Seller if he ceases to be an employee of the Buyer within
such time period.

	9.4	 	At Completion, the Buyer shall:

	 	9.4.1	 	deliver to the Seller:

	 	9.4.1.1	 	the Licence Agreement executed by the Buyer;
	 
	 	9.4.1.2	 	a certified copy of the minutes of a meeting of the directors of the Buyer
in the agreed form resolving that the Buyer should enter into this Agreement,
and each other document to be signed by it at Completion, and authorising the
execution of those documents by each person signing on behalf of the Buyer;
and
	 
	 	9.4.1.3	 	a certified copy of the minutes of a meeting of the directors of the
Guarantor in the agreed form resolving that the Guarantor should enter into

25

 

	 	 	 	this Agreement and give the guarantee in clause 18, and authorising the
execution of this Agreement by each of the persons signing for the
Guarantor;

	 	9.4.2	 	and shall pay:

	 	9.4.2.1	 	the sum of £11,528,000 (less any amount which is to be paid into the Escrow
Account in accordance with clause 5.4 and clause 11.8 (Contracts)) to the
Seller in accordance with clause 19.1; and
	 
	 	9.4.2.2	 	pay the sum of £57,241 plus any sum due to be paid into the Escrow Account
pursuant to clause 5.4, into the Escrow Account.

	9.5	 	If either the Buyer or the Seller (referred to in this clause
9 as the “defaulting party”)
does not or is unable to fulfil any material obligations under clause 9.3 or clause 9.4, as
the case may be, at the time when Completion is due to take place under clause 9.1, the other
party (referred to in this clause 9 as the “non-defaulting
party”) may, in addition to any
other right or remedy it may have, by notice to the defaulting party:

	 	9.5.1	 	postpone Completion by up to 20 Business Days; or
	 
	 	9.5.2	 	elect to proceed to Completion, in which case the defaulting party shall be
obliged to fulfil those obligations under clause 9.3 or clause 9.4, as the case may be,
which it is then able to fulfil and to fulfil the remaining obligations on or before
any later date specified for the purpose in the notice; or
	 
	 	9.5.3	 	if having already given notice under clause 9.5.1 and a period of not less
than 20 Business Days having elapsed without each unfulfilled obligation in question
having been fulfilled in all material respects, elect not to complete the sale and
purchase of the Assets.

	9.6	 	If Completion is postponed on any occasion under clause 9.5.1, clause 9.5 shall apply with
respect to each occasion to which it is so postponed.
	 
	9.7	 	If the non-defaulting party elects not to complete the sale and purchase of the Assets in
accordance with clause 9.5.3, or if the parties are not obliged or entitled to complete the
sale and purchase of the Business and Assets by reason of clause 9.8 and one party so notifies
the other party the parties shall have no further rights or obligations under this Agreement,
other than

26

 

	 	 	accrued rights and obligations at the time of that election in respect of prior breaches
including breaches of clauses 9.2 to 9.4, save that clauses 18, 20 and 22 to 24 inclusive
and 28 and 29 shall remain binding on the parties in accordance with their terms, provided
that where the Buyer is the non-defaulting party, it may demand by way of a pre-agreed
estimate of its loss the aggregate sum of £1,500,000 from the Seller (or the aggregate sum
of £750,000 if TRM Services Limited makes a similar demand under the Share Purchase
Agreement) which the Seller shall pay in full and final settlement of any rights and
remedies the Buyer might otherwise have had in respect of the breach or breaches in
question, all of which rights and remedies shall be unconditionally waived and released with
effect from receipt by the Buyer of the sum payable under this clause.

	9.8	 	The parties shall not be obliged or entitled to complete the sale and purchase of the
Business and Assets unless the Share Purchase Agreement is completed simultaneously.

	10.	 	CONTRACTS
	 
	10.1	 	Subject to clause 11 and the following provisions of this clause 10, the Buyer shall perform
in place of the Seller and in accordance with their terms all obligations required to be
performed after the Effective Time under the Contracts. The Buyer shall indemnify the Seller
on demand against all Losses which the Seller may incur arising from or in connection with any
failure by the Buyer to perform any such obligation.

	10.2	 	Clause 10.1 shall not apply to any obligation arising by reason of a breach, omission or
failure to perform by the Seller of an obligation required by any Contract to be performed
before the Effective Time.

	10.3	 	The Seller shall at its own cost discharge the obligations referred to in clause 10.2 as they
fall due, and shall indemnify the Buyer on demand against all Losses which the Buyer may incur
arising from or in connection with any failure by the Seller to do so. Nothing in this clause
10 or elsewhere in this Agreement shall have the effect of making the Buyer liable in any way
under any guarantees of any third party obligations or of warranties given in Contracts
relating to any obligation under any Contract to be performed before the Effective Time or
otherwise in relation to the performance of the Seller of its obligations under such Contracts
up to the Effective Time, the liability for which shall remain with the Seller.

	10.4	 	The Seller shall indemnify the Buyer on demand against all Losses which the Buyer may incur
by reason of any failure by the Seller to perform any obligation arising out of the Contracts
prior to the Effective Time.

27

 

	10.5	 	Any tender issued by the Seller in the course of the Business before Completion and which is
not then accepted and which is capable, on acceptance, of giving rise to a binding agreement,
the details of which are set out in schedule 8, shall be deemed to be a Contract for the
purposes of this Agreement with effect from the time of its acceptance.

	10.6	 	Nothing in this Agreement shall constitute an assignment (or attempted assignment) of rights
under or in connection with any Contract, or require the Buyer to perform any obligation under
a Contract in place of the Seller, for which consent has not been achieved pursuant to clause
4.1.1 and for which third party consent is required to the assignment of those rights to the
Buyer, or to the performance by the Buyer of that obligation, within the meaning of clause
11.1.

	11	 	THIRD PARTY CONSENTS
	 
	11.1	 	This clause 11.1 shall apply in relation to any Contract if and while a third party consent
is required to the assignment to the Buyer of any rights under or in connection with that
Contract or to the performance by the Buyer after the Effective Time of any obligation under
that Contract in place of the Seller. A third party consent shall without limitation be deemed
to be required for the purposes of this clause 11.1 if, either it is an express term of the
Contract that consent is required to the assignment or if, in the absence of that consent, the
assignment in question or the performance by the Buyer of the relevant obligation would
result, directly or indirectly and with or without notice, in:

	 	11.1.1	 	the breach of any Contract;
	 
	 	11.1.2	 	the acceleration of any obligation or the assumption of any further obligation under
any Contract; or
	 
	 	11.1.3	 	a person becoming entitled to terminate any Contract or otherwise to exercise any
further rights under any Contract.

	11.2	 	In each case where clause 11.1 applies to a Contract, each of the Buyer and the Seller shall
on request by the other use reasonable endeavours to obtain the relevant third party consent
as soon as is reasonably practicable. Any professional costs or expenses of any relevant
third party for which it requires reimbursement shall be borne by the Seller. The Guarantor
shall, if requested by any relevant third party in relation to a Site Agreement, give all
reasonable guarantees required by such third party in connection with such a consent. The
Seller agrees not to offer any such guarantees on behalf of the Guarantor without the
Guarantor’s prior written consent.

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	11.3	 	While a third party consent is required to the assignment to the Buyer of rights under or in
connection with any Contract, the Seller shall continue its corporate existence and shall hold
those rights and all monies received under that Contract after Completion on trust for the
Buyer absolutely and, to the extent that a third party consent is not required in order for it
to do so, shall pay those monies to the Buyer on or before the date falling 10 Business Days
after the date of receipt and shall otherwise exercise its rights in respect of that Contract
only as the Buyer may from time to time direct.

	11.4	 	While a third party consent is required to the performance by the Buyer after the Effective
Time of any obligation under a Contract in place of the Seller, the Buyer shall perform that
obligation as agent or sub-contractor of the Seller or, if to do so would itself require a
third party consent, the Seller shall perform that obligation at the Buyer’s cost if requested
to do so by the Buyer, and in the latter case, the Buyer shall afford the Seller, at the
Buyer’s cost, all such facilities and employees as the Seller may reasonably request in order
to perform that obligation. The Buyer shall indemnify the Seller against all Losses which the
Seller may incur arising from or in connection with such obligations, and without limiting
that indemnity, the Buyer shall reimburse the Seller for all costs reasonably incurred by the
Seller in performing any such obligation in accordance with this clause on or before the date
falling five Business Days from the date on which the Seller notifies the Buyer of the amount
of such costs.

	11.5	 	Until any Contract is assigned or novated but subject to clause 11.7, the Seller shall give
all such assistance as the Buyer may reasonably require at the Buyer’s cost to enable the
Buyer to enforce the Seller’s rights under such Contract and (without limitation) shall
provide access to all relevant books, documents and other information in its possession in
relation to such Contract as the Buyer may reasonably require.

	11.6	 	When (and only when) a third party consent requested under clause 11.2 is given, clause 2.1
shall apply to rights under or in connection with the relevant Contract and/or clause 10.1
shall apply in relation to obligations under that Contract, but without prejudice to the
parties’ accrued rights at that time under this clause 11.

	11.7	 	If third party consent to assignment or novation of a Contract is refused, or otherwise not
obtained on terms reasonably satisfactory to the Buyer within 60 Business Days of the
Completion Date, the Buyer shall be entitled at its sole discretion to require the Seller to
serve proper notice (in accordance with the terms of such Contract to terminate that Contract.
The Buyer shall indemnify and keep indemnified the Seller from and against all Losses that
the Seller may incur by reason of the termination of such Contract.

29

 

	11.8	 	In relation to the Contracts listed in schedule 12 (“Tier 2 Contracts”):

	 	11.8.1	 	the Buyer has paid the aggregate sum of £57,241 (“Aggregate Contract Retention”) out
of the purchase price for the Business and Assets into the Escrow Account to be dealt
with in accordance with this clause 11.8;
	 
	 	11.8.2	 	the Buyer and the Seller agree to give written instructions in accordance with the
terms of the Escrow Agreement for release of the following sums out of the Aggregate
Contract Retention to the following persons at the following times:

	 	11.8.2.1	 	subject to clause 11.8.2.2, in relation to any Tier 2 Contract which is
terminated as a result of the sale of the Business and Assets to the Buyer or
the sale of the Shares to TRM Services Limited during the period of two years
following the date of this Agreement, the amount set out opposite that Tier 2
Contract in schedule 12 together with interest accrued thereon in the Escrow
Account to the date of payment to be paid to the Buyer, within 10 Business
Days of the receipt of the relevant notice of termination;
	 
	 	11.8.2.2	 	in relation to any Tier 2 Contract which is not terminated as described in
clause 11.8.2.1, within 10 Business Days of the earlier of (a) the assignment
of that Contract to the Buyer or the consent to the change of control of
Travelex ATMs Limited (as appropriate); and (b) the second anniversary of
Completion, the amount set out opposite that Tier 2 Contract in schedule 12 to
be paid to the Seller together with interest accrued thereon in the Escrow
Account to the date of payment.

	12	 	DEBTORS AND CREDITORS
	 
	12.1	 	Within five Business Days of Completion, the Seller shall deliver to the Buyer a list of
Transferring Debtors.

	12.2	 	As soon as reasonably practicable after Completion, the Seller shall send letters in the form
set out in the Assignment of Debtors to all persons owing any of the Transferring Debtors,
instructing them to make payments in settlement of the Transferring Debtors to the Buyer.

	12.3	 	If the Seller receives after Completion any monies in full or partial settlement of any of
the Transferring Debtors, the Seller shall ensure that all monies so received are held on
trust for the Buyer and paid or delivered to the Buyer promptly, and in any event on or before
the date falling

30

 

	 	 	10 Business Days after the day of receipt. If the Buyer receives after Completion any
monies in full or partial settlement of any of the Aged Debtors then the Buyer shall ensure
that all monies so received are held on trust for the Seller and paid or delivered to the
Seller promptly and in any event on or before the date falling 10 Business Days after the
day of receipt.

	12.4	 	The Buyer shall promptly provide the Seller with all information (including without
limitation copies of invoices, orders, correspondence, delivery notes and returns notes) in
the possession or under the control of the Buyer or any other member of the Buyer’s Group as
the Seller may from time to time reasonably require relating to the Aged Debtors, the
Transferring Debtors, the Aged Creditors and the Transferring Creditors.

	12.5	 	The Seller shall promptly provide the Buyer will all information (including without
limitation copies of invoices, orders, correspondence, delivery notes and returns notes) in
the possession or under the control of the Seller or any other member of the Seller’s Group as
the Buyer may from time to time reasonably require relating to the Transferring Debtors, the
Aged Debtors, the Aged Creditors and the Transferring Creditors.

	12.6	 	After Completion:

	 	12.6.1	 	the Seller shall discharge the Aged Creditors in accordance with the normal practices
of the Business and the Buyer shall promptly provide the Seller with copies of all
correspondence it receives with regard to any of the Aged Creditors;
	 
	 	12.6.2	 	the Seller shall within 5 Business Days of Completion deliver to the Buyer a list of
the Transferring Creditors and the Buyer shall comply with clause 12.6.3;
	 
	 	12.6.3	 	within 5 Business Days before the due date for payment of each such Transferring
Creditor (or if such due date has passed within five Business Days of receipt of the
list) the Buyer shall pay the amount of each such Transferring Creditor to the Seller
and the Seller agrees to discharge such Transferring Creditors within five Business
Days of receipt of payment.

	13	 	EMPLOYEES

	 
	13.1	 	The parties confirm their understanding that the Transfer Regulations apply to the sale of
the Business and Assets and that the contracts of employment of each of the Employees (save
insofar as relating to benefits for old age, invalidity or survivors of an occupational
pension

31

 

	 	 	scheme) should have effect after Completion as if originally made with the Buyer instead of
the Seller.

	13.2	 	The Seller shall use reasonable endeavours to carry out a consultation process as envisaged
by Regulation 10 of the Transfer Regulations, however the Seller will not be in breach of this
clause if the period between the date of this Agreement and Completion is less than 30 days.

	13.3	 	The Buyer shall indemnify the Seller on demand against all Losses which the Seller or any
other member of the Seller’s Group may incur arising out of or in connection with:

	 	13.3.1	 	any claim made or threatened by or on behalf of any Employee arising out of or in
connection with any act or omission of the Buyer or any other member of the Buyer’s
Group after the Effective Time in respect of such person;
	 
	 	13.3.2	 	any claim made or threatened by or on behalf of any Employee that the change of
employer arising by reason of the operation of the Transfer Regulations is a
significant change which is to his detriment;
	 
	 	13.3.3	 	any claim made or threatened by or on behalf of any Employee on the grounds that he
has exercised a right to terminate his employment due to a substantial change being
made or proposed to be made to his working conditions, which is or is alleged to be to
his detriment, after the Effective Time;
	 
	 	13.3.4	 	any failure or alleged failure by the Seller to comply with Regulation 10 of the
Transfer Regulations (whether or not caused by failure of the Buyer to comply with its
obligations under regulation 10(3) of the Transfer Regulations) other than losses
arising due to a breach of clause 13.2 by the Seller.

	13.4	 	At Completion the Seller shall issue to each of the Employees a written notice in a form to
be agreed between the parties informing the Employees of the transfer.

	13.5	 	The Seller undertakes to the Buyer

	 	13.5.1	 	to pay all sums due to be paid to the Employees prior to the Effective Time
(whether arising under common law, statute, equity or otherwise) including all
salaries, wages, employee bonus or commission and expenses;

32

 

	 	13.5.2	 	that as at the Effective Time there are no sums owing to or from any Employee other
than reimbursement of expenses and wages for the current salary period and holiday
pay for the current holiday year; and
	 
	 	13.5.3	 	to indemnify on demand the Buyer against all Losses which the Buyer may incur
arising out of or in connection with any claim made or threatened by or on behalf of
any of the Employees arising from or in connection with any act or omission of the
Seller in relation to their employment or its termination at or prior to the
Effective Time save for any Losses due to any failure or alleged failure of the
Seller to comply with Regulation 10 of the Transfer Regulations.

	13.6	 	If any person who is not an Employee alleges that his contract of employment has effect
following Completion by operation of the Transfer Regulations as if originally made with the
Buyer instead of the Seller (a “Mismatched Employee”), provided that:

	 	13.6.1	 	the Buyer becomes aware that the Mismatched Employee so alleges within one month of
Completion;
	 
	 	13.6.2	 	the Buyer informs the Seller that the Mismatched Employee so alleges within five
Business Days of becoming so aware;
	 
	 	13.6.3	 	the Buyer affords the Seller the opportunity to offer alternative employment to the
Mismatched Employee; and
	 
	 	13.6.4	 	the Buyer dismisses the Mismatched Employee within four weeks of such an offer of
alternative employment being made (or if the Seller declining to make such an offer)
following a fair, full and proper procedure and without taking any material steps
without the consent of the Seller,

	 	 	the Seller undertakes to indemnify and keep indemnified the Buyer in respect of any
reasonable costs incurred in relation to notice pay, statutory redundancy pay and a
reasonable amount in relation to unfair dismissal (or alleged unfair dismissal) in relation
to any such Mismatched Employee.
	 
	14.	 	WARRANTIES

	14.1	 	The Seller warrants to the Buyer that except as disclosed in the Disclosure Letter in
sufficient detail to enable the Buyer to have a reasonable understanding of the nature and
scope of the

33

 

	 	 	matter disclosed each of the Warranties is true and accurate at the date of this Agreement
and, subject to clause 5.5, the Repeated Warranties will continue to be so up to Completion
with reference to the facts and circumstances from time to time applying.

	14.2	 	Each of the Warranties is separate and is to be construed independently of the other
Warranties, subject to clause 14.3.

	14.3	 	The only Warranties given:

	 	14.3.1	 	in respect of the Environment are those set out in paragraph 2 of part 6 of schedule
3 and the other Warranties shall be deemed not to be given in relation to the
Environment;
	 
	 	14.3.2	 	in respect of pension matters are those set out in part 7 of schedule 3 and the other
Warranties shall be deemed not to be given in relation to pension matters;
	 
	 	14.3.3	 	in respect of the Employees and other employment matters are those set out in part 8
of schedule 3 and the other Warranties shall be deemed not to be given in relation to
the Employees and other employment matters;
	 
	 	14.3.4	 	in respect of Intellectual Property Rights are those set out in part 9 of schedule 3,
and the other Warranties shall be deemed not to be given in relation to Intellectual
Property Rights;
	 
	 	14.3.5	 	in respect of matters relating to information technology used in relation to the
Business and are those set out in paragraph 10 of schedule 3, and the other Warranties
shall be deemed not to be given in relation to information technology; and
	 
	 	14.3.6	 	in respect of Taxation and Taxation matters are those matters set out in part 11 of
schedule 3 and the other Warranties shall be deemed not to be given in relation to
Taxation.

	14.4	 	Except in the case of fraud by any Employee, the Seller waives and hereby releases any rights
it may have in connection with any error in or omission from the Disclosure Letter against any
Employee on whom the Seller has relied in connection with preparing the Disclosure Letter.

	14.5	 	The Buyer shall be entitled to claim both before and after Completion that any of the
Warranties has or had been breached even if the Buyer discovered or could have discovered on
or before Completion that the Warranty in question was or was likely to be breached and
Completion shall

34

 

	 	 	not in any way constitute a waiver of any of the Buyer’s rights. The Buyer warrants to the
Seller that it has no actual knowledge of any fact, matter or circumstance which would give
rise to a breach of the Warranties at the date of this Agreement and for these purposes the
Buyer’s actual knowledge shall be limited to the actual knowledge of: Tom Mann, Ashley Dean,
Rhys Edwards and Ian Strang at the date of this Agreement.

	14.6	 	Schedule 4 (Limitations on Seller’s Liability) shall (save as otherwise provided) apply to
limit or exclude, in accordance with its terms, any liability of the Seller in respect of a
breach of the Warranties (other than any of the Warranties given in paragraph 2 of part 1 of
schedule 3) and subject to paragraph 4.3 of schedule 4.

	14.7	 	Any amount paid by or on behalf of the Seller in respect of a breach of the Warranties shall
be deemed to reduce the purchase price payable for the Assets by, and be a repayment of, that
amount. Any such amount shall be apportioned between the Assets in the same proportions as
the purchase price payable for the Assets is apportioned by clause 6.2. The parties shall make
such adjustments and repayments of VAT (if any) as may be appropriate in consequence of any
purchase price repayment effected under this clause.

	14.8	 	Subject to paragraph 4.1 of schedule 4, the rights and remedies of the Buyer in respect of a
breach of any of the Warranties shall not be affected by Completion, by any investigation made
by or on behalf of the Buyer into the Business, by the giving of any time or other indulgence
by the Buyer to any person or by any other cause whatsoever except a specific waiver or
release by the Buyer in writing and any such waiver or release shall not prejudice or affect
any remaining rights or remedies of the Buyer.

	14.9	 	Where any of the Warranties is qualified by the expression “to the best of the knowledge,
information and belief of the Seller or “so far as the Seller is aware” or any similar
expression, that Warranty shall be deemed to include an additional statement that it has been
made after diligent and careful enquiry by the Seller of the following persons in respect of
the Warranties set out against their respective names and the awareness, knowledge or belief
of the Seller shall be deemed to be limited to the actual awareness, knowledge or belief of
such individuals:

	 	 	 
	  Clive Nation, Nick Cockett, Kylie-Ann

	 	All Warranties
	  Tremlett, Sylvain Pignet, James
	 	 
	  Birch, Clive Kahn
	 	 

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	  Jackie Manley

	 	paragraph 4 of part 3 of schedule 3

(Compliance and Litigation)
	 
	 	 
	  Geoff Baldock, Emma Turner

	 	part 2 of schedule 3 (Management Accounts

and Current Trading)
	 
	 	 
	  Lynette Mapp

	 	part 3 of schedule 3 (Compliance

and Litigation) and part 4 of

schedule 3 (Contracts)
	 
	 	 
	  David Burgin

	 	part 5 of schedule 3 (Assets)
	 
	 	 
	  Ann Colley

	 	part 7 of schedule 3 (Pensions) and part 8 of

schedule 3 (Employment)
	 
	 	 
	  Gareth Richards

	 	part 10 of schedule 3 (Information

Technology)
	 
	 	 
	  Martyn Emmerson, Lisa Westerman

	 	part 11 of schedule 3 (Tax)
	 
	 	 
	  Bill Ahearn

	 	paragraphs 3.1, 3.2 and 3.3 of part

3 of schedule 3 (Compliance and

Litigation); paragraphs 1.3 and 1.4

of part 4 of schedule 3

(Contracts); paragraphs 1.4 and 1.5

of part 6 of schedule 3 (Site
Agreement)

	 	 	The Seller warrants to the Buyer that the individuals listed above are the appropriate
people to review the Warranties for the purpose of confirming their accuracy and that there
are no other persons of whom it would be reasonable for the Seller to make enquiry.

	14.10	 	The Seller shall disclose to the Buyer as soon as is reasonably practicable following it
becoming aware of the same, any matter which becomes known to it prior to Completion which
constitutes a breach of the Repeated Warranties.
	 
	15.	 	PROTECTION OF THE INTERESTS OF THE BUYER

	15.1	 	The Seller agrees with the Buyer that it shall not, directly or indirectly, alone or jointly with any
other person, and whether as shareholder, partner, director, principal, consultant or agent:

36

 

	 	15.1.1	 	for a period of 12 months starting on the Completion Date employ any Employee or
solicit, canvass or induce or endeavour to induce any such employee to leave his
position, whether or not that person would commit a breach of his contract by so
leaving or offer employment to any such person; and
	 
	 	15.1.2	 	for a period of two years starting on the Completion Date not solicit or induce any
material supplier to the Business or any party to a Site Agreement to cease to do
business with the Buyer in relation to the Business or (in the case of a material
supplier) to reduce the amount of supplies to or transactions with the Business or
adversely to vary the terms on which they so do business, or (in the case of a party to
a Site Agreement) seek to induce that party to permit the Seller to install and operate
an ATM at the relevant site; and
	 
	 	15.1.3	 	for a period of two years starting on the Completion Date, carry on or be engaged,
interested or concerned in any business which within the United Kingdom carries on a
Restricted Activity.

	15.2	 	Nothing in clause 15.1 shall prohibit the Seller from directly or indirectly:

	 	15.2.1	 	publishing or causing to be published any advertisement not intended primarily to
induce any Employee (as opposed to any equivalent employee of another Company) to leave
his position; or
	 
	 	15.2.2	 	instructing an employment agency to recruit any individuals, provided that the Seller
in question has not encouraged that agency to approach any Employee; or
	 
	 	15.2.3	 	acquiring and holding any interest in any business which carries on a Restricted
Activity, provided that the turnover of that business attributable to the Restricted
Activity in each of the last two financial years preceding the completion of the
acquisition does not exceed 5 per cent. of the aggregate turnover of all entities which
are the subject of the acquisition in question in those financial years, as derived
from any relevant annual audited accounts (or in their absence any relevant management
accounts) for those two financial years; or
	 
	 	15.2.4	 	holding any interest in any securities listed or dealt in on any securities exchange
if the Seller and all other members of the Seller’s Group are together interested in
securities which amount to less than five per cent of the issued securities of that
class and which

37

 

	 	 	 	carry less than five per cent of the voting rights (if any) attaching to the issued
securities of that class.

	15.3	 	The Seller shall not after Completion disclose or use any Confidential Information relating
exclusively to the Business. This clause shall not prohibit disclosure of:

	 	15.3.1	 	Confidential Information under a legal obligation involuntarily incurred or if
required by the law of any relevant jurisdiction or by any competent regulatory or
governmental body or securities exchange in any relevant jurisdiction;
	 
	 	15.3.2	 	any Confidential Information which is or becomes part of the public domain without
breach of this clause or clause 15.4; or
	 
	 	15.3.3	 	Confidential Information to any other member of the Seller’s Group or to any
professional advisers of the Seller or of any other member of the Seller’s Group,

and shall not prohibit the use by the Seller of any confidential information for the purpose
of or in connection with making any payment to or determining to amount of any payment to be
made to any Aged Creditor or supplier and/or in connection with determining the amount of
any payment to be made to it by Snax 24 Corporation Limited in connection with the business
of Travelex ATMs.

	15.4	 	The Seller shall use its reasonable endeavours to ensure that no member of the Seller’s Group
from time to time takes or omits to take any action which, if taken or omitted by the Seller,
would constitute a breach of clause 15.1 or 15.3.
	 
	15.5	 	Each of the restrictions in clauses 15.1 and 15.3 above shall be enforceable by the Buyer
independently of each of the others and its validity shall not be affected if any of the
others is invalid.
	 
	15.6	 	If any of the restrictions in clauses 15.1 and 15.3 is void but would be valid if some part
of the restrictions were deleted the restriction in question shall apply with such deletion as
may be necessary to make it valid.
	 
	15.7	 	The Seller acknowledges that the above provisions of this clause are not more extensive than
is reasonable to protect the Buyer as the acquirer of the Business.

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	15.8	 	In this clause 15 “Restricted Activity” means the operation of any ATM in the United Kingdom
which dispenses the national currency for the time being of the United Kingdom but excludes
the carrying on of an Excluded Business.
	 
	15.9	 	In the event that Nick Cockett ceases to be an employee of the Seller during the period
between the date of this Agreement and the earlier of Completion or the date on which the
parties cease to have any further rights and obligations under this Agreement pursuant to
clauses 4.4 and 9.7, then the Seller agrees at the Buyer’s cost as soon as reasonably
practicable to take all reasonable steps required to enforce the restrictive covenants
contained in the service agreement between the Seller and Nick Cockett dated 11 September 2002
in accordance with the terms of such agreement.
	 
	15.10	 	In the event that Nick Cockett refuses or is unable to work for the Buyer at any time during
the 3 months following Completion (other than as a result of his dismissal by the Buyer) the
Seller agrees to make available to the Buyer the services of Clive Nation for a maximum period
of 3 months following Completion for 80% of Clive Nation’s time per day at a cost of £300 per
80% day or part thereof (plus VAT where applicable).
	 
	15.11	 	If Nick Cockett signs a service agreement with the Buyer on or before Completion:

	 	15.11.1	 	the Seller agrees not to employ or solicit, canvass or induce or endeavour to induce
Nick Cockett to leave his position and agrees to ensure that no member of the Seller’s
Group employs, solicits, canvasses or induces him to leave his position for a period of
12 months starting on the Completion Date; and
	 
	 	15.11.2	 	the Seller shall pay the sum of £50,000 to the Buyer at Completion in accordance
with clause 9.3.15.

	16.	 	OBLIGATIONS AFTER COMPLETION AND FURTHER ASSURANCE

	16.1	 	At or after Completion, the Seller shall execute all such documents and do or cause to be
done all such other things as the Buyer may from time to time reasonably require in order to
vest in the Buyer title to the Assets. Nothing in this clause 16.1 or under this Agreement
shall require the Seller to pay any stamp duty or any other transfer taxes or registration
fees in relation to the transactions contemplated by this Agreement.
	 
	16.2	 	The Buyer shall ensure that the Business Records are retained for a period of seven years
starting on the Completion Date and that all other records (whether in electronic or any other

39

 

	 	 	form) of the Buyer relating to the Business which are or may be relevant in connection with
any Warranty Claim or other claim against the Seller under this Agreement are retained for
so long as any actual or threatened Warranty Claim or other claim remains outstanding. The
Buyer shall ensure that the Seller is promptly provided upon request with access during
normal working hours and on reasonable prior notice to, and is permitted at the Seller’s
cost to make copies of, the Business Records.
	 
	16.3	 	The Seller shall ensure that all records of the Business relating to Taxation (insofar as
they do not form part of the Business Records and are retained under schedule 2) are retained
for a period of seven years starting on the Completion Date and that all such records (whether
in electronic or any other form) are made available to the Buyer promptly on request with
access during normal hours and on reasonable prior notice. The Buyer shall, at its own cost,
be permitted to make copies of such records.
	 
	16.4	 	After Completion, the Buyer shall use all reasonable endeavours to make available to the
Seller the assistance of such of the Employees as the Seller may from time to time reasonably
require in connection with any proceedings against the Seller of which the Employees in
question have particular knowledge, whether by virtue of their involvement in the matters
giving rise to the proceedings or otherwise.
	 
	16.5	 	Without limiting clause 12.3, if the Seller receives after Completion any monies in full or
partial settlement of invoices issued by the Buyer after Completion, the Seller shall ensure
that all monies so received are held on trust for the Buyer and paid or delivered to the Buyer
promptly, and in any event on or before the date falling 10 Business Days after the date of
receipt.
	 
	16.6	 	As soon as practicable after Completion the Seller and the Buyer shall jointly send an
announcement in a form to be agreed between the parties to those people agreed between the
parties to be recipients.
	 
	17.	 	VAT
	 
	17.1	 	The Seller and the Buyer intend that the Business be transferred under this Agreement as a
going concern and shall each use all reasonable endeavours to ensure that the transfer is
treated neither as a supply of goods nor as a supply of services for the purposes of the Value
Added Tax (Special Provisions) Order 1995. The Seller and the Buyer shall give notice of that
transfer to HM Revenue and Customs under the relevant VAT regulations, or otherwise as
required by law.

40

 

	17.2	 	The Buyer shall after Completion use the Assets in carrying on the same kind of business
(whether or not as part of any existing business) as that carried on by the Seller and
authorises the Seller to make that obligation known to HM Revenue and Customs when writing to
or notifying them under this clause 17.
	 
	17.3	 	If HM Revenue and Customs, after full disclosure of all material facts, determines that VAT
is payable on the sale of the Business or any part of it, the Seller shall promptly notify the
Buyer of that determination and the date on which it is required to account to HM Revenue and
Customs for that VAT. The Buyer shall pay the amount of that VAT to the Seller three Business
Days before the date for payment so notified to it. The Buyer shall indemnify the Seller
against any penalty or interest arising as a result of the late payment of VAT by the Seller
to HM Revenue and Customs to the extent arising by reason of a breach by the Buyer of the
provisions of this clause 17. Any VAT payable under this clause shall be paid in addition to
the amount otherwise payable by the Buyer.  
	 
	17.4	 	After Completion, the Seller shall apply for a direction under section 49(1)(b) VATA
permitting the retention by the Seller of all the records of the Business for VAT purposes
which would otherwise be required by section 49(1)(b) VATA to be preserved by the Buyer.
	 
	17.5	 	The Buyer undertakes and warrants that it is duly registered under VATA with registration
number 762706227.
	 
	17.6	 	The Seller confirms that it is duly registered under VATA with registration number 755419120.
	 
	18.	 	GUARANTEE
	 
	18.1	 	In consideration of the Seller entering into this Agreement, the Guarantor as primary obligor
irrevocably and unconditionally:

	 	18.1.1	 	undertakes to ensure the Buyer’s performance of all its obligations under this
Agreement in accordance with its terms;
	 
	 	18.1.2	 	guarantees as a continuing guarantee to the Seller the performance and observance by
the Buyer of each of the Buyer’s obligations under this Agreement in accordance with
its terms or arising in consequence of any breach of this Agreement;
	 
	 	18.1.3	 	agrees that if and each time that the Buyer fails to make any payment to the Seller
when it is due under this Agreement, the Guarantor shall on demand (without requiring

41

 

	 	 	 	the Seller first to take steps against the Buyer or any other person) pay that
amount to the Seller.

	18.2	 	The liability of the Guarantor under this clause shall not be released or diminished in whole
or in part by anything which, but for this provision, might operate to affect its liability,
including without limitation:

	 	18.2.1	 	any variation of the terms of this Agreement;
	 
	 	18.2.2	 	any forbearance or neglect or delay in seeking the performance of any obligations
under this Agreement or any granting of time for the performance of those obligations
or any other arrangement between the Buyer and the Seller or any other person; or
	 
	 	18.2.3	 	any unenforceability or invalidity of any obligation of the Buyer, so that this
clause shall be construed as if there were no such unenforceability or invalidity.

	18.3	 	The guarantee in clause 18.1 is a continuing guarantee and accordingly shall remain in force
until all of the obligations of the Buyer under this Agreement have been fully performed or
fully satisfied.
	 
	18.4	 	The guarantee in clause 18.1 shall be in addition to, and without prejudice to and not in
substitution for, the performance and observance of the Buyer’s obligations under this
Agreement.
	 
	18.5	 	The Guarantor warrants and represents to the Seller that:

	 	18.5.1	 	the Guarantor is a company duly incorporated and validly existing under the laws of
Oregon;
	 
	 	18.5.2	 	the Guarantor has all necessary power and authority to enter into and perform its
obligations under this Agreement;
	 
	 	18.5.3	 	this Agreement constitutes (or will when executed constitute) valid and binding
obligations on the Guarantor in accordance with their respective terms;
	 
	 	18.5.4	 	the entering into and performance by the Guarantor of its obligations under this
Agreement:

42

 

	 	18.5.4.1	 	will not result in a breach of any provision of the memorandum or articles
of association or analogous constitutional documentation of the Guarantor;
	 
	 	18.5.4.2	 	will not result in a breach of any order, judgment or decree of any court
or governmental, administrative or regulatory body or agency to which the
Guarantor is party or by which it is bound; and
	 
	 	18.5.4.3	 	does not require the consent of any third party.

	18.6	 	If any monies paid to the Seller under this Agreement have to be repaid by the Seller to the
Buyer by virtue of any provision or enactment relating to bankruptcy, insolvency or
liquidation for the time being in force or on any other ground, the liability of the Guarantor
shall be computed as if those monies had never been paid to the Seller at all.
	 
	18.7	 	For the avoidance of doubt nothing under this clause 18 shall require the Guarantor to
complete the acquisition of the Business and Assets if the condition set out in clause 4.1.2
has not been satisfied by the End Date.
	 
	19.	 	PAYMENTS AND INTEREST
	 
	19.1	 	Payments to be made to the Seller under this Agreement shall be made in pounds sterling by
telegraphic transfer of immediately available funds to the following account of the Seller’s
Solicitors:

	 	 	 	 	 
	 

	 	CONFIDENTIAL
	 	 

or to any other account of which the Seller gives the Buyer at least three Business Days’
notice from time to time.

	19.2	 	Payments to be made to the Buyer under this Agreement shall be made in pounds sterling by
telegraphic transfer of immediately available funds to the following account of the Buyer’s
Solicitors:

	 	 	 	 	 
	 

	 	CONFIDENTIAL
	 	 

43

 

	19.3	 	Payment of any sum to a party’s solicitors will discharge the obligations of the relevant
party to pay the sum in question, and that party shall not be concerned to see the application
of monies so paid.
	 
	19.4	 	Each payment to be made 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.
	 
	20.	 	ASSIGNMENT
	 
	20.1	 	Subject to clause 20.2, no party and no third party referred to in clause 25.1 may assign or
otherwise dispose of any rights under this Agreement, at law or in equity, including by way of
security or declaration of trust. Any purported assignment in breach of this clause shall be
void and confer no rights on the purported assignee.
	 
	20.2	 	The Buyer may assign its rights under this Agreement to any member of the Buyer’s Group
provided (a) that the terms of any such assignment shall provide for the rights to be
reassigned to the Buyer in the event that the assignee ceases to be a member of the Buyer’s
Group and in default of any such reassignment those rights shall lapse and (b) any liability
of the Seller to the assignee shall not exceed the liability of the Seller to the Buyer in the
absence of that assignment.
	 
	21.	 	CONDUCT OF INDEMNITY CLAIMS
	 
	21.1	 	In this clause 21:

	 	21.1.1	 	“Beneficiary” means, in relation to an indemnity, the party receiving the benefit of
the indemnity; and

44

 

	 	21.1.2	 	“Covenantor” means, in relation to an indemnity, the party undertaking to indemnify
the Beneficiary.

	21.2	 	If the Beneficiary becomes aware of any matter which it believes might give rise to a claim
to be indemnified by the Covenantor under this Agreement:

	 	21.2.1	 	the Beneficiary shall as soon as reasonably practicable notify the Covenantor in
writing, (specifying in reasonable detail the nature of the matter and, so far as
possible, the amount claimed or which might be claimed) and shall consult with the
Covenantor with respect to the matter;
	 
	 	21.2.2	 	if requested in writing by the Covenantor the Beneficiary shall (save where the
Beneficiary can show there is a demonstrable risk that the action requested would
materially and adversely affect the Business), at the Covenantor’s cost:

	 	21.2.2.1	 	take such action and initiate such proceedings, and give such information
and assistance, as the Covenantor may from time to time reasonably request to
dispute, resist, appeal, compromise, defend, remedy or mitigate the matter in
question or enforce against any person (other than the Covenantor) the rights
of the Beneficiary or the Covenantor in relation to the matter in question;
	 
	 	21.2.2.2	 	not admit liability in respect of or settle or compromise the matter in
question without the prior written consent of the Covenantor such consent not
to be unreasonably withheld or delayed.

	 	21.2.3	 	if the Beneficiary takes any action under clause 21.2.2 following a written request
from the Covenantor under clause 21.2.2 the Covenantor shall:

	 	21.2.3.1	 	indemnify the Beneficiary on demand against all Losses which it may incur
as a result of any request by the Covenantor under clause 21.2.2; and
	 
	 	21.2.3.2	 	use all reasonable endeavours so as not, by any act or omission in
connection with the claim, to cause the Beneficiary to be in breach of its
obligations to its current or past employees or to cause the Beneficiary’s
business interests to be prejudiced.

45

 

	21.3	 	If the Covenantor does not make any request under clause 21.2.2, the Beneficiary shall in any
event consult with the Covenantor as soon as reasonably practicable with regard to any actual
or proposed developments relating to the matter in question and provide the Covenantor with
copies of all correspondence and documents in relation to that matter.
	 
	21.4	 	If there is any dispute between the Covenantor and the Beneficiary as to whether liability in
respect of any claim by a third party should be admitted or such claim should be settled or
compromised, liability shall not be admitted, and that claim shall not be settled or
comprised, other than in accordance with the provisions of this clause. Any such dispute
shall be referred to leading counsel agreed between the Covenantor and the Beneficiary or, in
default of agreement on or before the date falling five Business Days after an individual is
first proposed for the purpose by either the Covenantor or the Beneficiary, by the President
for the time being of the Law Society of England and Wales on the application of either the
Covenantor or the Beneficiary. Any individual to whom a dispute is so referred shall be
instructed in writing to give a written opinion, as soon as is reasonably practicable, as to
which of the courses of conduct proposed by the Beneficiary and by the Covenantor is most
likely to result in the matter being agreed, settled or compromised at the least cost to the
Covenantor. The decision of counsel (who shall act as expert and not as arbitrator) shall be
final and binding on the Beneficiary and the Covenantor for all purposes. Counsel’s fees and
expenses shall be borne by the Covenantor and the Beneficiary as counsel may determine in his
sole discretion or, if no such determination is made, by the Covenantor and the Beneficiary in
equal shares. The parties shall then implement counsel’s decision as soon as is reasonably
practicable.
	 
	21.5	 	The Beneficiary shall use its reasonable endeavours to mitigate any Losses which it may incur
and in respect of which it has a right to be indemnified under this Agreement.
	 
	22.	 	ANNOUNCEMENTS AND CONFIDENTIALITY
	 
	22.1	 	No party may make any press release or other public announcement about this Agreement or the
transactions contemplated by it, or disclose any of the terms of this Agreement, except with
the consent of the other party.
	 
	22.2	 	Clause 22.1 shall not apply to any disclosure made by a party to a member of its Group or to
its professional advisers, or to any announcement or disclosure required by the laws of any
relevant jurisdiction or by any competent regulatory or governmental body or securities
exchange in any relevant jurisdiction, provided that the party required to make such an
announcement or disclosure shall first take all such steps as may be reasonable and
practicable in the

46

 

	 	 	circumstances to consult with the other party, and shall take into account its reasonable
comments.
	 
	22.3	 	Each party shall ensure that any member of its Group or professional adviser to which it
discloses information under clause 22.2 is made aware of the obligations of confidentiality
contained in this clause and complies with this clause as if binding on it directly.
	 
	23.	 	COSTS
	 
	 	 	Each party shall bear its own costs and expenses in connection with the preparation,
negotiation, execution and performance of this Agreement and the documents referred to in
it.
	 
	24.	 	NOTICES
	 
	24.1	 	Any notice, consent or other communication given under this Agreement shall be in writing and
in English, and signed by or on behalf of the party giving it, and shall be delivered by hand
or sent by prepaid recorded or special delivery post (or prepaid international recorded
airmail if sent internationally) or by fax as follows (and, for the avoidance of doubt, may
not be given by email):

	 	 	 	 	 
	 

	 	to the Buyer:	 	 
	 
	 	 	 	 
	 

	 	For the attention of:
	 	Ashley Dean, Managing Director
	 
	 	 	 	 
	 

	 	Address:
	 	TRM (ATM) Limited, 1A Meadowbrook, Maxwell Way, Crawley, West
	 

	 	 	 	Sussex RH10 9SA
	 
	 	 	 	 
	 

	 	Facsimile number:
	 	01293 585091 

with a copy (which shall not constitute notice) to Amy Krallman, Esq., Senior Vice President
and General Counsel, TRM Corporation at Team Headquarters, 5208 NE 122nd Avenue,
Portland, Oregon 97230 USA

	 	 	 	 	 
	 

	 	to the Seller:	 	 
	 
	 	 	 	 
	 

	 	For the attention of:
	 	The Company Secretary
	 
	 	 	 	 
	 

	 	Address:
	 	Travelex Limited, 65 Kingsway, London WC2B 6TB
	 
	 	 	 	 
	 

	 	Facsimile number:
	 	020 7400 4001

47

 

with a copy (which shall not constitute notice) to the Seller’s Solicitors (Reference: SJH).

	24.2	 	Either party may from time to time notify the other of any other person, address or fax
number for the receipt of notices or copy notices. Any such change shall take effect five
Business Days after notice of the change is received or (if later) on the date (if any)
specified in the notice as the date on which the change is to take place.
	 
	24.3	 	Any notice, consent or other communication given in accordance with clause 24.1 and received
after 5.30 p.m. on a Business Day, or on any day which is not a Business Day, shall for the
purposes of this Agreement be regarded as received on the next Business Day.
	 
	24.4	 	The provisions of clause 24.1 shall not apply in relation to the service of process in any
legal proceedings arising out of or in connection with this Agreement.
	 
	25.	 	THIRD PARTY RIGHTS
	 
	25.1	 	Members of the Seller’s Group may rely upon and enforce the terms of clauses 10.1, 11.2,
11.4, 11.6, 11.7 and 13.3.
	 
	25.2	 	Notwithstanding any other provision of this Agreement, the Seller and the Buyer may by
agreement in writing rescind or vary any of the provisions of this Agreement without the
consent of any third party, and accordingly section 2(1) of the Contracts (Rights of Third
Parties) Act 1999 shall not apply.
	 
	25.3	 	Except as otherwise stated in this Agreement, a person who is not a party to this Agreement
has no right under the Contracts (Rights of Third Parties) Act 1999 to rely upon or enforce
any term of this Agreement. This clause shall not affect any right or remedy of a third party
which exists or is available apart from that Act.
	 
	26.	 	NO MERGER
	 
	 	 	The provisions of this Agreement shall remain in full force and effect notwithstanding
Completion.
	 
	27.	 	COUNTERPARTS
	 
	 	 	This Agreement may be executed in any number of counterparts and by the parties to it on
separate counterparts, each of which shall be an original but all of which together shall
constitute one and the same instrument, and shall not be effective until each of the parties
has executed at least one counterpart.

48

 

	28.	 	ENTIRE AGREEMENT
	 
	28.1	 	This Agreement and the documents referred to in it together constitute the entire agreement
and understanding of the parties, and supersede any previous agreement between the parties
relating to the subject matter of this Agreement.
	 
	28.2	 	The Buyer acknowledges that no provisions are to be regarded as implied into this Agreement,
save for those implied by law and which are not lawfully capable of being excluded. All
implied provisions lawfully capable of being excluded are excluded for all purposes.
	 
	28.3	 	In entering into this Agreement, and subject to schedule 4, each party accepts that it is not
relying on any representation, warranty or on any other information or statement of opinion or
belief, including, without limitation, replies to due diligence enquiries, whether written or
oral, express or implied, and whether made or given by the other party or by any of its
advisers, which is not expressly comprised within or the subject of any of the Warranties.
	 
	28.4	 	Nothing in this clause 28 shall limit any liability of the Seller for fraud.
	 
	29.	 	GOVERNING LAW AND JURISDICTION
	 
	29.1	 	This Agreement shall be governed by and construed in accordance with the law of England and
Wales. Each party irrevocably submits to the exclusive jurisdiction of the courts of England
and Wales over any claim, dispute or matter arising under or in connection with this
Agreement.
	 
	29.2	 	Each party irrevocably waives any objection which it may have now or later to proceedings
being brought in the courts of England and Wales and any claim that proceedings have been
brought in an inconvenient forum. Each party further irrevocably agrees that a judgment in any
proceedings brought in the courts of England and Wales shall be conclusive and binding upon
each party and may be enforced in the courts of any other jurisdiction.
	 
	29.3	 	Nothing in this Agreement shall affect the right to serve process in any manner permitted by
law.

THIS AGREEMENT has been executed by or on behalf of the parties on the date at the top of page 1.

SCHEDULE
1

Confidential
Treatment

SCHEDULE
2

Confidential
Treatment

49

 

Part 1 — General

SCHEDULE 3

Warranties

Part 1: General

	1.	 	INSOLVENCY
	 
	1.1	 	In this part 1, “Insolvency Proceedings” means any formal insolvency proceedings, whether in
or out of court, including liquidation, administration, receivership, administrative
receivership, scheme of arrangement with creditors, moratorium, interim or provisional
supervision by a court or court appointee, winding-up or striking-off.
	 
	1.2	 	The Seller is able to pay its debts as they fall due and has not stopped payment of its
debts.
	 
	1.3	 	The Seller has not taken any steps to commence any Insolvency Proceedings, nor has it
received notice that any third party has commenced or threatened to commence any Insolvency
Proceedings, in either case whether in relation to the Seller or any part of its assets or
undertaking.
	 
	1.4	 	No distress, execution or other process has been levied in respect of the Business or Assets
or any of them, and no events have occurred which would justify any such proceedings.
	 
	1.5	 	So far as the Seller is aware, no event has occurred which has (a) caused, or which on the
intervention or action of any third party may cause any floating charge created by the Seller
to crystallise over the Business or the Assets or any of them; or (b) caused any fixed charge
created by the Seller to become enforceable over the Business or Assets or any of them.
	 
	2.	 	AUTHORITY AND CAPACITY OF THE SELLER
	 
	2.1	 	The Seller has all necessary power and authority and has taken all necessary corporate action
to enter into and perform its obligations under this Agreement and all agreements to be
entered into by the Seller pursuant to this Agreement.
	 
	2.2	 	The entering into and the performance by the Seller of its obligation under this Agreement:

	 	2.2.1	 	will not result in a breach of any provision of the memorandum or articles of
association of the Seller;

50

 

Part 1 — General

	 	2.2.2	 	will not result in a breach of any order, judgment or decree of any court or
governmental, administrative or regulatory body or agency to which the Seller is party
or by which it is bound; and
	 
	 	2.2.3	 	does not require the consent of any third party which will not have been
obtained by Completion.

	2.3	 	This Agreement and all other agreements and documents to be executed by the Seller pursuant
to or in connection with this Agreement constitute (or shall when executed constitute) valid
and binding obligations on the Seller enforceable in accordance with their respective terms.

51

 

Part 2 — Management Accounts and Current Trading

Part 2: Management Accounts and Current Trading

	1.	 	MANAGEMENT ACCOUNTS
	 
	1.1	 	The Management Accounts:

	 	1.1.1	 	have been prepared in good faith and with due care;
	 
	 	1.1.2	 	are not believed by the Seller to be misleading;
	 
	 	1.1.3	 	fairly reflect the profits and losses, assets and liabilities during the
period to which they relate;
	 
	 	1.1.4	 	have been prepared by the Seller in accordance with the accounting practice
and on a basis consistent with that employed in preparing the Accounts;
	 
	 	1.1.5	 	have been prepared by the Seller in accordance with generally accepted
accounting practices in the United Kingdom;
	 
	 	1.1.6	 	for the period 1 January 2004 to 31 December 2004 form the basis on which the
Business is included in the Accounts; and
	 
	 	1.1.7	 	have adopted a rate of depreciation consistent with the accounts policies of
the Seller which is sufficient for the value of each of the fixed assets of the
Business to be written down to nil by the end of its useful working life.

	1.2	 	Any adjustments made in preparing the Accounts so far as they relate to the Business are
reflected in and are readily apparent from the Management Accounts for the period 1 January
2004 to 31 December 2004.
	 
	2.	 	TRADING POSITION
	 
	 	 	Since 30 June 2005 and save as disclosed in the document attached to this Agreement marked
“C”:
	 
	2.1	 	the Seller has carried on the Business in the ordinary course; and
	 
	2.2	 	there has been no material adverse change in the financial or trading position of the
Business.

52

 

Part 2 — Management Accounts and Current Trading

	3.	 	RECORDS
	 
	3.1	 	All material Business Records are in the exclusive possession of the Seller or are under its
direct control and subject to unrestricted access by it.

	3.2	 	All PAYE, National Insurance and other records relating to the Employees have been correctly
made up.

53

 

Part 3 — Compliance and Litigation

Part 3: Compliance and Litigation

	1.	 	CONDUCT OF BUSINESS
	 
	 	 	So far as the Seller is aware neither the Seller nor any of its officers (during the course
of their duties) has done or omitted to do any act or thing relating to the Assets or the
conduct of the Business which is in material contravention of any legislation in any
relevant jurisdiction to which the Seller in the course of carrying on the Business, is
subject and the Seller has, so far as the Seller is aware, dealt with the Assets in all
material respects in accordance with applicable law.
	 
	2.	 	COMPETITION LAW
	 
	2.1	 	So far as the Seller is aware, the Seller in relation to the Business is not nor has it been
a party to or concerned in any agreement, concerted practice or course of conduct which in
whole or part infringes the competition or anti-trust law of any country in which any of the
Assets are situated or in which the Business is conducted.
	 
	2.2	 	So far as the Seller is aware, in relation to competition or anti-trust matters, the Seller,
in relation to the Business:

	 	2.2.1	 	has not given any undertaking or assurance which is still binding on it, to;
or
	 
	 	2.2.2	 	is not subject to any order of or any investigation by; or
	 
	 	2.2.3	 	has not received any process, notice, request for information or other written
communication from,

	 	 	any court or the European Commission, the EFTA Surveillance Authority, the Office of Fair
Trading, the Competition Commission, the Secretary of State for Trade and Industry or any
other competition or other authority having jurisdiction in competition or anti-trust
matters under any competition or anti-trust legislation in any country in which the Assets
are situated or in which the Business is conducted.
	 
	3.	 	LITIGATION
	 
	3.1	 	The Seller is not currently engaged, nor has it during the period of two years ending on the
date of this Agreement been engaged, in any dispute, litigation, arbitration, mediation,
conciliation or expert determination in relation to the Business or the Assets, whether as
claimant or defendant

54

 

Part 3 — Compliance and Litigation

	 	 	or in any other capacity where the amount claimed, contested or in dispute was in excess of
£15,000.
	 
	3.2	 	The Seller has not received notice that it is subject to any material investigation, inquiry
or enforcement proceedings or other process by any governmental, administrative or
quasi-governmental regulatory body or agency in relation to the Business nor is the Seller in
dispute with any such body or agency in relation to the Business.
	 
	3.3	 	So far as the Seller is aware there are no dispute resolution processes, proceedings and
other processes or disputes such as are referred to in paragraphs 3.1 and 3.2 of this part 3
pending or threatened by or against the Seller in relation to the Business.
	 
	3.4	 	There are no existing or pending judgments or rulings against the Seller which affect or may
affect the Business or any of the Assets.
	 
	3.5	 	The Seller has not given any undertakings arising from legal proceedings to a court,
governmental agency, or regulator or third party which would affect the Business or the
Assets.
	 
	4.	 	DATA PROTECTION
	 
	4.1	 	In this paragraph 4 of part 3, “Personal Data” has the meaning given to it in the Data
Protection Act 1998.
	 
	4.2	 	As far as the Seller is aware, the Seller is, in relation to all Personal Data processed by
the Business, in material compliance with all relevant requirements of:

	 	4.2.1	 	the Data Protection Act 1998; and
	 
	 	4.2.2	 	the Privacy and Electronic Communications (EC Directive) Regulations 2003.

	4.3	 	The Seller is duly registered as a data controller under the Data Protection Act 1998 for all
purposes for which registration is required in respect of the processing of Personal Data by
or on behalf of the Business and all due and requisite fees in respect of such registration
have been paid.
	 
	4.4	 	The Seller has not received in relation to the Business an Enforcement Notice under the Data
Protection Act 1998.

55

 

Part 4 — Contracts

Part 4: Contracts

	1.	 	MATERIAL CONTRACTS
	 
	1.1	 	A copy of each of the Contracts is annexed to the Disclosure Letter (or, where any such
agreement is not in writing, details of the key terms of that agreement is contained in the
Disclosure Letter) and listed in schedule 8. There are no other contracts, agreements,
licences or similar arrangements in respect of the Business or Assets which are material to
the Business and required for its ongoing continuation.
	 
	1.2	 	So far as the Seller is aware, none of the Contracts is ultra vires the Seller.
	 
	1.3	 	So far as the Seller is aware, the Seller has not materially breached and no counterparty is
in material breach of any of the Contracts referred to in paragraph 1.1 of this part 4, and
the Seller has not received notice from any counterparty alleging any such material breach by
the Seller.
	 
	1.4	 	There is no subsisting dispute of a material nature between the Seller and any other person
in relation to any of the Contracts referred to in paragraph 1.1 of this part 4, and there are
no circumstances which the Seller believes to be likely to give rise to any such dispute for
the purposes of this paragraph, “material nature” shall mean involving an amount in excess of
£15,000.
	 
	1.5	 	The Seller has not given notice or received any written notice terminating any of the
Contracts referred to in paragraph 1.1 of this part 4 nor has it received written notice of
the intention of any counterparty of any such Contract to terminate any such Contract.
	 
	1.6	 	The Seller is not in connection with the Business a party to any subsisting agreement:

	 	1.6.1	 	which is not in the ordinary course of business or which is not on arm’s length terms;
	 
	 	1.6.2	 	pursuant to which the Seller has disposed of any shares or business and
remains subject to any actual or contingent liability;
	 
	 	1.6.3	 	which involves obligations of the Seller which the Seller believes it is
unlikely to be able to perform;
	 
	 	1.6.4	 	which is any contract of guarantee, indemnity or suretyship or any contract to
secure any obligation of any person;

56

 

Part 4 — Contracts

	 	1.6.5	 	which is any sale or purchase option or similar agreement or arrangement
affecting any assets owned or used in the Business; or
	 
	 	1.6.6	 	(being an agreement for the supply of goods or services to the Seller in
relation to the Business for an annual consideration in excess of £50,000 plus VAT (if
applicable)) and save as disclosed in the list referred to in clause 9.3.12 in relation
to any Site Agreement, which shall or may be terminated by this Agreement (or
Completion) or which shall or may be affected materially by it.

	1.7	 	The Seller in connection with the Business is not, nor has it agreed to become, a member of
any partnership, joint venture or consortium or a party to any other arrangement for sharing
income, profits, losses or expenses.
	 
	2.	 	GUARANTEES
	 
	 	 	The Disclosure Letter contains details of all outstanding material guarantees given by the
Seller or any member of the Seller’s Group for the benefit of the Business.
	 
	3.	 	SUPPLIERS
	 
	 	 	During the last 12 months no party to a Site Agreement and no party to a supply agreement
for the supply of goods or services to the Seller in relation to the Business for an annual
consideration in excess of £50,000 plus VAT (if applicable) has stopped trading with or
supplying the Seller in relation to the Business or reduced, or indicated in writing an
intention to reduce, substantially the terms on which it is prepared to trade with or supply
the Business (other than normal price and quota changes).

57

 

Part 5 — Assets

Part 5: Assets

	1.	 	OWNERSHIP AND POSSESSION OF ASSETS
	 
	1.1	 	All of the material tangible Assets capable of possession are in the possession and ownership
or under the control of the Seller.
	 
	1.2	 	The Disclosure Letter contains details of the material assets and/or rights owned and the
material services supplied by either the Seller or any member of the Seller’s Group to the
Business as at the date of this Agreement, which assets and/or rights or the means of
providing such services, are not being sold by the Seller pursuant to this Agreement.
	 
	1.3	 	The Assets comprise all of the assets and rights necessary for the continuation of the
Business as carried on at the date of this Agreement.
	 
	2.	 	INSURANCE
	 
	2.1	 	Annexed to the Disclosure Letter is a summary of the level of cover and insured risks under
the insurance policies maintained by the Seller (or a member of the Seller’s Group) as at the
date of this Agreement in relation to the Business.
	 
	2.2	 	All premiums due on the insurance policies referred to in paragraph 2.1 of this part 5 of
schedule 3 have been duly paid, all other material conditions of those policies have been
performed and observed, and so far as the Seller is aware, there are no circumstances which
might result in any such insurance policy becoming void or voidable.
	 
	2.3	 	No insurance policy referred to in paragraph 2.1 of this part 5 of schedule 3 is subject to
any special or unusual terms or restrictions.
	 
	2.4	 	The Disclosure Letter contains complete and accurate details of all insurance claims in
excess of £15,000 made by the Seller in relation to the Business during the period of two
years ending on the date of this Agreement. So far as the Seller is aware, there are no
circumstances which would entitle the Seller to make a claim in relation to the Business in
excess of £25,000 or which would be required under any of the policies referred to in
paragraph 2.1 of this part 5 of schedule 3 to be notified to the insurers.

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Part 5 — Assets

	3.	 	CONDITION AND MAINTENANCE OF PLANT
	 
	3.1	 	All items of Plant and Equipment are in reasonable repair and condition subject to fair wear
and tear and having regard to age and usage and are regularly maintained.
	 
	3.2	 	Copies of all maintenance contracts which the Seller has at the date of this Agreement
relating to any material Assets are annexed to the Disclosure Letter.
	 
	3.3	 	The 3 DES/EMV upgrade has been successfully completed on all ATM machines used by the Seller
for the purposes of the Business.
	 
	4.	 	LEASED EQUIPMENT
	 
	 	 	A list of all Leased Equipment as at the date of this Agreement is annexed to the Disclosure
Letter.

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Part 6 — Sites and Environment

Part 6: Sites and Environment

For the purposes of the Warranties in paragraphs 1.1 and 1.2 of this part 6 of this schedule,
agreements for sites entered into without breach of schedule 5 shall not be regarded as Site
Agreements when those Warranties become Repeated Warranties.

	1.	 	SITES
	 
	1.1	 	The Seller in relation to the Business has no interest in real property other than those of
the Sites listed in schedule 6 which relate to the Business (as opposed to those Sites which
relate to the business of Travelex ATMs) and the agreements in respect of such sites and any
such agreements entered into between the date of this Agreement and Completion without breach
of schedule 5, all such agreements being referred to in this Agreement as “Site Agreements”.
	 
	1.2	 	All Site Agreements are attached to the Disclosure Letter.
	 
	1.3	 	The information set out in schedule 6 and in the Disclosure Letter with respect to the number
of ATMs which are the subject of each Site Agreement is accurate in all respects.
	 
	1.4	 	The Seller has observed and performed the covenants and conditions contained in the Site
Agreements in all respects and has not received any material complaint regarding any alleged
breach of covenant or conditions under any Site Agreement.
	 
	1.5	 	The Seller has not received any notice to terminate a Site Agreement and the Seller is not
aware of any intention or circumstance that may give rise to such termination.
	 
	1.6	 	So far as the Seller is aware, the Seller in relation to the Business has only obtained
planning permission for those specific ATMs listed in the schedule to be provided by the
Seller on Completion in accordance with clause 9.3.10.
	 
	1.7	 	So far as the Seller is aware, in relation to those ATMs where planning permission has been
obtained (as listed in the Disclosure Letter), such planning permission has been complied
with.
	 
	1.8	 	No interest of the Seller under any Site Agreement has been registered at HM Land Registry.
	 
	2.	 	ENVIRONMENT
	 
	 	 	So far as the Seller is aware, in relation to the Business the Seller has complied with
Environmental Law in all material respects.

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Part 7 — Pensions

Part 7: Pensions

	1.	 	NO OTHER ARRANGEMENTS
	 
	 	 	Except for the Pension Scheme, the Seller does not participate in or contribute to any
personal pension schemes or any occupational pension schemes (whether or not legally
binding) the main or only purpose of which is to provide pension, retirement or death
benefits for any of its Employees or for the widow, widower, child or dependant of any such
Employee (“Pensionable Employees”).
	 
	2.	 	NO ASSURANCES ETC
	 
	 	 	The Seller has not given any undertaking as to the introduction, continuance, improvement or
increase of any benefit of a kind described in paragraph 1 of this part 7 in relation to the
Business and is neither paying nor has in the last two years paid any such benefit to any
Employee.
	 
	3.	 	CONTRIBUTIONS
	 
	 	 	The Seller has paid all contributions, expenses and insurance premiums which have fallen due
for payment by it to the Pension Scheme in relation to the Business.
	 
	4.	 	MORAL HAZARD
	 
	 	 	No contribution notice or financial support direction under the Pensions Act 2004 has been
issued to the Seller in relation to the Business or to any other person in respect of the
Pension Scheme and there is no fact or circumstances likely to give rise to any such notice
or direction.
	 
	5.	 	STAKEHOLDER
	 
	 	 	The Seller in relation to the Business has facilitated access for its Pensionable Employees
who are not members of the Pension Scheme to a designated stakeholder scheme as required by
Section 3 of the Welfare Reform and Pensions Act 1999.
	 
	6.	 	LITIGATION
	 
	 	 	No claims or complaints have been made or are pending or threatened in relation to the
Pension Scheme or in respect of the provision of (or failure to provide) pension, lump sum
or death benefits in relation to any of the Pensionable Employees and so far as the Seller
is aware there is no fact or circumstance likely to give rise to such claims or complaints.

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Part 7 — Pensions

	7.	 	DEFINED BENEFIT PROMISE
	 
	 	 	No written undertaking or written assurance (whether or not legally enforceable) has been
given to any person that any benefits under the Pension Scheme (other than lump sum benefits
on death in service) will be calculated by reference to any person’s remuneration or length
of service or will be approximately or exactly any amount.
	 
	8.	 	OTHER
	 
	8.1	 	All material documentation relating to the Pension Scheme is annexed to the Disclosure
Letter.
	 
	8.2	 	So far as the Seller is aware no discrimination on grounds of sex, disability, marital
status, hours of work, fixed-term or temporary agency workers, sexual orientation, religion or
belief is, or has at any stage, been made in the provision of pension, lump sum or death
benefits by the Seller in relation to any of the Pensionable Employees.
	 
	8.3	 	The liability for all lump sum death benefits which may become payable under the Pension
Scheme to any member is fully insured with a reputable insurance company on normal terms and
at normal rates with all lives assured being treated as enjoying good health. The Seller has
not been notified of any action or omission which would enable any insurance company which has
issued or has undertaken to issue any policy for the purpose of any of the schemes to avoid
making payment under such policy.

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Part 8 — Employment

Part 8: Employment

For the purposes of the Warranties in paragraphs 1.1, 1.2, 1.3, 1.4 and 1.13, persons who become
Employees after the date of this Agreement or offers of employment made after the date of this
Agreement, in either case without breach of schedule 5, shall not be regarded as Employees or the
subject of any such offer when those Warranties become Repeated Warranties.

	1.	 	The Seller warrants that:
	 
	1.1	 	the Disclosure Letter contains details of the identities, dates of birth, job titles, basic
annual salaries, bonuses, commission and benefits of all the Employees;
	 
	1.2	 	copies of all of the standard contracts applying to the Employees are annexed to the
Disclosure Letter;
	 
	1.3	 	there are no persons engaged or employed in the Business except the Employees;
	 
	1.4	 	the Disclosure Letter contains details of any outstanding offer of employment made to any
individual by the Seller in relation to the Business;
	 
	1.5	 	there are no agreements in relation to the Business between the Seller and any trade union or
other body representing the Employees nor are there any works councils or staff associations
or other employee representatives in place;
	 
	1.6	 	as far as the Seller is aware, there is no material outstanding or threatened claim or legal
proceeding where the amount claimed is in excess of £10,000 against the Seller by any Employee
or any former employee of the Business in relation to his or her employment;
	 
	1.7	 	the Seller has not agreed for the future any variation of any of the terms referred to in 1.1
above;
	 
	1.8	 	the Seller is not aware of any Employee who has been off sick for a period of 30 days or more
in the six month period ending at the date of this Agreement (whether or not consecutive)
whether or not they have received, are receiving or due to receive payment under any sickness
or disability or permanent health insurance scheme or Group Protection Insurance Scheme and so
far as the Seller is aware, there are no claims under such schemes pending or threatened and
in any event that all such claims are fully covered by insurance;

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Part 8 — Employment

	1.9	 	there is no agreement, scheme or policy of insurance for the payment of any allowances, lump
sums or other like benefits during periods of sickness or disablement for the benefit of the
Employees, save as disclosed in the Disclosure Letter;
	 
	1.10	 	there are no agreements for the provision of consultancy services to the Seller in relation
to the Business nor are there any persons on secondment to or from the Seller in relation to
the Business;
	 
	1.11	 	there are no schemes in operation by or in relation to the Business under which any Employee
is entitled to any remuneration calculated by reference to the whole or part of the turnover,
profits or sales of the Business or to any other form of bonus or commission or any
performance related bonus plan;
	 
	1.12	 	the Seller does not in respect of any Employee operate any approved share option scheme,
share incentive scheme, approved profit sharing scheme, enterprise management incentive
scheme, employee share ownership plan or unapproved share scheme under which share benefits
are provided, in respect of any Employee. No other company provides any such scheme or plan
in respect of the Employees;
	 
	1.13	 	the Disclosure Letter sets out all material benefits to which the Employees are entitled. No
proposal or commitment has been communicated to any Employee regarding the introduction,
increase or improvement of any material benefit;
	 
	1.14	 	all subsisting contracts of service and all contracts for services with any individual to
which the Seller is a party in relation to the Business are determinable on three months’
notice or less;
	 
	1.15	 	no Employee has given or received a period of notice terminating his or her employment or
engagement which has not yet expired;
	 
	1.16	 	other than in relation to season ticket loans, the Seller has not made any loan or advance,
or provided any other form of financial assistance, to any Employee which is still
outstanding; and
	 
	1.17	 	except as set out in the Disclosure Letter there are no Employees on maternity leave.

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Part 9 — Intellectual Property

Part 9: Intellectual Property

	1.	 	DEFINITIONS
	 
	 	 	In this part 9, “Licence” means any licence, permission or consent in respect of the use of
any Intellectual Property Rights (including, without limitation, any unwritten and/or
informal licensing arrangement) and any arrangement of which any licence, permission or
consent forms part.
	 
	2.	 	OWNERSHIP
	 
	2.1	 	The Seller is either the sole legal and beneficial owner of the Transferring Intellectual
Property, or the Seller has a valid Licence to use all Transferring Intellectual Property.
	 
	2.2	 	The Seller does not own any domain names that are used by it exclusively for the purposes of
the Business.
	 
	2.3	 	The Seller has not granted a Licence to any person in respect of any of the Transferring
Intellectual Property.
	 
	2.4	 	None of the Intellectual Property Rights that are material for the purposes of the Business
is used under a Licence from a third party.
	 
	3.	 	ADEQUACY OF RIGHTS
	 
	 	 	The Transferring Intellectual Property comprises all the Intellectual Property Rights
necessary to carry on the Business as conducted at Completion and the Disclosure Letter
contains details of all material Transferring Intellectual Property Rights.
	 
	4.	 	INFRINGEMENTS
	 
	4.1	 	As far as the Seller is aware, no activities of the Business infringe any Intellectual
Property Rights of a third party or involve the unlicensed use of a third party’s confidential
information or give rise to liability to pay compensation.
	 
	4.2	 	As far as the Seller is aware, no third party has made any unauthorised use or exploitation
of any Transferring Intellectual Property or has infringed any Transferring Intellectual
Property, and no third party or competent authority has, within the 12 months prior to the
date of this Agreement, made any claim, challenge or opposition against the Seller in relation
to the Transferring Intellectual Property.

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Part 9 — Intellectual Property

	5.	 	CONFIDENTIAL INFORMATION AND KNOW-HOW
	 
	5.1	 	The Seller enforces and operates reasonable procedures to maintain the confidentiality of its
Confidential Information and Know-How relating to the Business. As far as the Seller is aware,
such confidentiality has not been materially breached.
	 
	5.2	 	As far as the Seller is aware, the Seller has not disclosed (except in the ordinary course of
business or subject to a binding confidentiality agreement) any Confidential Information or
Know-How which is material to the Business.
	 
	6.	 	REGISTERED INTELLECTUAL PROPERTY RIGHTS
	 
	 	 	Save as set out in schedule 1, none of the Transferring Intellectual Property is registered
and no application for registration of any Transferring Intellectual Property has been made
by the Seller.

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Part 10 — Information Technology

Part 10: Information Technology

	1.	 	DEFINITIONS
	 
	 	 	In this part 10:

	 	 	 
	“Hardware”

	 	means all information technology,
telecommunications, network and peripheral
equipment used by the Seller exclusively for the
purposes of the Business at Completion;
	 
	 	 
	“IT Systems”

	 	means all the Hardware and the Software; and
	 
	 	 
	“Software”

	 	means all computer programs which are used by the
Seller exclusively for the purposes of the
Business at Completion.

	2.	 	THE HARDWARE AND SOFTWARE
	 
	2.1	 	The Seller owns or is permitted under agreement to use the Hardware and owns or is licensed
to use the Software.
	 
	2.2	 	None of the Software was designed, written or developed for the purposes of the Business.
	 
	3.	 	ADEQUACY OF IT SYSTEMS
	 
	3.1	 	The IT Systems are the only information technology systems (including equipment and computer
programs) required by the Seller to carry on the Business as at the date of this Agreement.
	 
	3.2	 	The IT Systems are in the possession of the Seller.
	 
	3.3	 	No third party provides any part of the IT Systems under any outsourcing, application service
provider, hosting or similar arrangement.
	 
	4.	 	OPERATION AND MAINTENANCE OF IT SYSTEMS
	 
	4.1	 	The Disclosure Letter contains details of all the material agreements for the use of
equipment, licences, maintenance and support agreements specifically relating to the IT
Systems.

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Part 10 — Information Technology

	4.2	 	There has been no material disruption to the Business in the 12 month period ending on the
date of this Agreement due to failures or breakdowns of the IT Systems or any part of them.
	 
	5.	 	SECURITY OF IT SYSTEMS
	 
	 	 	The Disclosure Letter contains details of the security processes in place to protect the IT
Systems and the disaster recovery processes used by the Seller to enable the Business to
continue to function without any material disruption in the event of a failure or breakdown
of any part of the IT Systems.

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Part 11 — Taxation

Part 11: Taxation

	1.	 	GENERAL
	 
	1.1	 	The Seller is not involved in any dispute with a Tax Authority concerning any matter which
affects the Business or any of the Assets to be transferred under this Agreement.
	 
	1.2	 	None of the Assets is subject to an Inland Revenue charge under section 237 and 238 IHTA 1984
nor has any person exercised nor is entitled to exercise, in respect of any such Asset, any
power prescribed by section 212 IHTA 1984.
	 
	2.	 	VAT
	 
	2.1	 	The warranties set out in clause 17 of this Agreement shall have effect in addition to the
warranties in this paragraph 2 of part 11 of schedule 3 to this Agreement.
	 
	2.2	 	The Seller has complied with all statutory requirements, regulations, notices, orders,
directions and conditions relating to VAT in respect of the Assets and the Business.
	 
	3.	 	STAMP TAXES
	 
	 	 	All documents to which the Seller is a party which relate to or are necessary to prove the
title of the Seller to any of the Assets are in the United Kingdom have been duly stamped.
	 
	4.	 	CAPITAL ASSETS
	 
	 	 	The Seller does not own any assets in respect of which it is required to make adjustments
pursuant to Part XV of the Value Added Tax Regulations 1995.
	 
	5.	 	PAYE
	 
	 	 	The Seller has, for the purposes of PAYE and national insurance contributions kept and used
complete, accurate and up-to-date records in respect of all Employees.

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SCHEDULE 4

Limitations on Seller’s Liability

In this schedule references to a Warranty Claim include references to a claim for a breach of a
Repeated Warranty and references to a Warranty Claim also include a claim by the Buyer to be
indemnified under clause 5.3 save that paragraphs 1.1, 1.2, 3.2 and 4.1 of this schedule shall not
apply to any claim to be indemnified under clause 5.3.

	1.	 	FINANCIAL LIMITS
	 
	1.1	 	The Seller shall not be liable in respect of any Warranty Claim unless it has a liability in
respect of that Warranty Claim in excess of £15,000.
	 
	1.2	 	The Seller shall not be liable in respect of any Warranty Claim unless it has an aggregate
liability in respect of all Warranty Claims (excluding all Warranty Claims for which the
Seller has no liability by reason of paragraph 1.1) and all Warranty Claims and Tax Claims
under the Share Purchase Agreement (other than Tax Claims pursuant to paragraphs 1.2, 1.3,
1.4, 1.5 and 1.6 of part 3 of schedule 3 of the Share Purchase Agreement) in excess of
£500,000 and in such circumstances it shall be liable for the entire amount of such claims.
	 
	1.3	 	For the purposes of this paragraph 1, a Warranty Claim which is based on more than one event
or circumstance, each of which would separately give rise to a Warranty Claim, shall be
treated as a separate Warranty Claim in respect of each event or circumstance.
	 
	1.4	 	The aggregate liability of the Seller for all Warranty Claims and claims by the Buyer to be
indemnified under clause 5.3 and all Warranty Claims and Tax Claims under the Share Purchase
Agreement and claims by the Buyer to be indemnified under clause 4.4 of the Share Purchase
Agreement shall not exceed the aggregate of:

	 	1.4.1	 	£43,373,000; and
	 
	 	1.4.2	 	plus any sum payable by the Buyer and minus any sum payable to the Buyer in
accordance with clause 6.4 of this Agreement; and
	 
	 	1.4.3	 	less any amount paid to the Buyer under clause 11.8.2.1 of this Agreement; and

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	 	1.4.4	 	plus any sum payable by TRM Services Limited and minus any sum payable to TRM
Services Limited in accordance with clauses 6.2 and 6.5 of the Share Purchase
Agreement; and
	 
	 	1.4.5	 	minus any reduction in the purchase price pursuant to clauses 10.8 and 10.9 of
the Share Purchase Agreement; and
	 
	 	1.4.6	 	plus any increase in the purchase price pursuant to clauses 10.8 and 10.9 of
the Share Purchase Agreement.

	2.	 	NOTICES
	 
	 	 	If the Buyer becomes aware of any matter which gives give rise to a Warranty Claim, the
Buyer shall give written notice to the Seller as soon as reasonably practicable, specifying
the matter in reasonable detail, the warranties which have or are likely to have been
breached and so far as is reasonably practicable its best estimate of the amount of the
Warranty Claim or likely Warranty Claim.
	 
	3.	 	TIME LIMITS
	 
	3.1	 	The Seller shall not be liable in respect of any Warranty Claim (other than under part 11 of
schedule 3) unless notice of that Warranty Claim, given in accordance with paragraph 2, is
received by it on or before the date falling eighteen months after the Completion Date and the
Seller shall not be liable in respect of any claim under the Warranties given in part 11 of
schedule 3 unless notice of that claim, given in accordance with paragraph 2, is received by
the Seller on or before the sixth anniversary of the Completion Date.
	 
	3.2	 	The Seller shall not be liable in respect of a particular Warranty Claim if, on or before the
date falling 20 Business Days after the date on which notice of that Warranty Claim is
received by the Seller, the Seller has remedied the relevant breach or prevented the Buyer
from suffering any loss in respect of the subject matter of that Warranty Claim or caused any
loss so suffered by the Buyer to be made good. The Buyer shall comply with all reasonable
requests made by the Seller during that period for the purposes of so remedying any such
breach or preventing any such loss.
	 
	3.3	 	The Seller shall not be liable in respect of a particular Warranty Claim (if not previously
satisfied, settled or withdrawn) unless legal proceedings have been validly issued and served
on the Seller on or before the date falling 120 Business Days after the date on which notice
of that Warranty Claim was served under paragraph 2.

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	4.	 	EXCLUSION OF LIABILITY: GENERAL
	 
	4.1	 	The Seller shall not be liable in respect of any Warranty Claim to the extent that the matter
giving rise to the Warranty Claim was disclosed in the Disclosure Letter in sufficient detail
to enable the Buyer to have a reasonable understanding of the nature and scope of the matter
disclosed.
	 
	4.2	 	The Seller shall not be liable in respect of a Warranty Claim to the extent that the matter
giving rise to the Warranty Claim results from:

	 	4.2.1	 	any act or omission before Completion carried out or omitted at the express
request of the Buyer or any other member of the Buyer’s Group; or
	 
	 	4.2.2	 	any act or omission on or after Completion carried out or omitted by or on
behalf of the Buyer or any member of the Buyer’s Group which the Buyer knew or ought
reasonably to have known would give rise to a Warranty Claim; or
	 
	 	4.2.3	 	any breach by the Buyer of its obligations under this Agreement; or
	 
	 	4.2.4	 	any act, event, occurrence or omission after the date of this Agreement
compelled by law, or from the enactment, amendment or change in the interpretation
after that date of any statute, regulation or practice of any governmental, regulatory
or other body, including a Tax Authority, whether or not having retrospective effect,
or any change after the date of this Agreement in the rates of Taxation.

	4.3	 	Nothing in this schedule 4 applies to a liability for any Warranty Claim that arises or is
delayed as a result of dishonesty, fraud, wilful misconduct or wilful concealment by the
Seller or any member of the Seller’s Group or employee, former employee, officer, agent or
adviser of the Seller or any member of the Seller’s Group.
	 
	4.4	 	The Seller shall not be liable in respect of any Warranty Claim to the extent that the matter
giving rise to the Warranty Claim constitutes a contingent liability of the Buyer or relates
to a liability which is not capable of being quantified until such liability becomes an actual
liability of the Buyer or becomes capable of being quantified and the time limit in paragraph
3.3 shall not apply so long as the Warranty Claim is notified within the period specified in
paragraph 3.1. This paragraph shall not relieve the Buyer from any obligation to give notice
under paragraph 2 in respect of any matter which constitutes a contingent liability of the
Buyer or relates to a liability which is not capable of being quantified.

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	4.5	 	The Seller shall not be liable in respect of any Warranty Claim or the quantum of the
Warranty Claim shall be reduced to the extent that the Management Accounts include a specific
provision, accrual, reserve or allowance for any matter relating to the subject of that
Warranty Claim.
	 
	5.	 	RECOVERY FROM THIRD PARTIES
	 
	5.1	 	If the Buyer becomes aware of any matter which would or might give rise to a Warranty Claim
(taking no account of paragraph 1.2 for these purposes) and has or subsequently acquires a
right to make recovery or claim indemnity from any third party (including under any policy of
insurance) in relation to that matter, then it shall as soon as reasonably practicable notify
the Seller of the right, and shall comply with the provisions of paragraphs 5.3 to 5.6.
	 
	5.2	 	If any sum is paid by or on behalf of the Seller in satisfaction of a Warranty Claim, and the
Buyer has or subsequently acquires a right to make recovery or claim indemnity from any third
party (including under any policy of insurance) in respect of the matter giving rise to that
Warranty Claim, the Buyer shall as soon as reasonably practicable notify the Seller of the
right and the provisions of paragraphs 5.3 to 5.6 shall apply.
	 
	5.3	 	The Buyer shall at the Seller’s written request and cost (and the Seller hereby agrees to
indemnify the Buyer and any member of its Group against all costs incurred by the Buyer or any
member of its Group resulting from the Buyer complying with its obligations under this
paragraph, including any directly attributable increase in the premium payable on the renewal
of any insurance policy) take such action and initiate such proceedings, and give such
information and assistance, as the Seller may from time to time reasonably request to dispute,
resist, appeal, compromise, defend, remedy or mitigate the matter or enforce against any
person (other than the Seller) the rights of the Buyer or the Seller in relation to the matter
in question (save that a request from the Seller shall be deemed to be unreasonable where
there is a demonstrable risk that the action requested would materially and adversely affect
the Business).
	 
	5.4	 	Whether or not the Seller makes any request under paragraph 5.3, the Buyer shall:

	 	5.4.1	 	consult with the Seller as soon as reasonably practicable with regard to any
actual or proposed developments relating to the matter in question and provide the
Seller with copies of all correspondence and documents they shall reasonably request in
relation to that matter; and
	 
	 	5.4.2	 	not admit liability in respect of or settle or compromise the matter in
question without the prior written consent of the Seller such consent not to be
unreasonably withheld or

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	 	 	 	delayed save where obtaining that consent would materially and adversely affect the
Business.

	5.5	 	To the extent that the Buyer receives any sum or other benefit by reason of the enforcement
of any rights such as are referred to in paragraphs 5.1 or 5.2, then either the Seller’s
liability in relation to such Warranty Claim shall be reduced by the Amount Recovered, or if
any sum has already been paid by or on behalf of the Seller in satisfaction of a Warranty
Claim, then the Buyer shall pay the Amount Recovered to the Seller on or before the date five
Business Days after the date on which that receipt or saving is made. For the purposes of
paragraph 1.2 of this schedule, the Seller shall be deemed never to have been liable to the
Buyer in respect of the Amount Recovered.
	 
	5.6	 	For the purposes of paragraph 5.5 of this schedule, the “Amount Recovered” shall be equal to
so much of the sum or benefit received (including by way of interest or repayment supplement)
by reason of the enforcement of any rights such as are referred to in paragraphs 5.1 or 5.2 as
does not exceed the amount claimed by the Buyer in relation to such Warranty Claim or (as the
case may be) the payment by or on behalf of the Seller in satisfaction of the relevant
Warranty Claim, less any Taxation payable by the Buyer in respect of that receipt and less all
reasonable costs and expenses of the Buyer in recovering that receipt or saving.
	 
	6.	 	CONDUCT OF THIRD PARTY CLAIMS
	 
	6.1	 	In the event that any negotiations with third parties or litigation in connection with any
claim, action or demand by a third party gives rise to an obligation on the Buyer to give
notice under paragraph 2 the provisions of paragraphs 6.2 to 6.4 shall apply.
	 
	6.2	 	The Buyer shall at the Seller’s written request and cost (and the Seller hereby agrees to
indemnify the Buyer and any member of its Group against all costs incurred by the Buyer or any
member of its Group resulting from the Buyer complying with its obligations under this
paragraph, including any directly attributable increase in the premiums payable on any
insurance renewal), take such action and initiate such proceedings, and give such information
and assistance, as the Seller may from time to time reasonably request to dispute, resist,
appeal, compromise, defend, remedy or mitigate the matter in question or enforce against any
person (other than the Seller) the rights of the Buyer or the Seller in relation to the matter
in question (save that a request from the Seller shall be deemed to be unreasonable where
there is a demonstrable risk that the action requested would materially and adversely affect
the Business).
	 
	6.3	 	Whether or not the Seller makes any request under paragraph 6.1 the Buyer shall:

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	 	6.3.1	 	consult with the Seller as soon as reasonably practicable with regard to any
actual or proposed developments relating to the matter in question and provide the
Seller with copies of all correspondence and documents in relation to that matter which
the Seller shall reasonably require; and
	 
	 	6.3.2	 	not admit liability in respect of or settle or compromise the matter in
question without the prior written consent of the Seller, such consent not to be
unreasonably withheld or delayed save where obtaining such consent would materially and
adversely affect the Business

	6.4	 	If there is any dispute between the Seller and the Buyer as to whether liability in respect
of any third party claim should be admitted or whether any claim related to a right of first
recovery from a third party (under paragraph 5) or a third party claim should be settled or
compromised, liability shall not be admitted, and that claim shall not be settled or
comprised, other than in accordance with the provisions of this paragraph. Any such dispute
shall be referred to leading counsel agreed between the Seller and the Buyer or, in default of
agreement on or before the date falling five Business Days after the date on which an
individual is first proposed for the purpose by either the Seller or the Buyer, by the
President for the time being of the Law Society of England and Wales on the application of
either the Seller or the Buyer. Any individual to whom a dispute is so referred shall be
instructed in writing to give a written opinion, as soon as is reasonably practicable, as to
which of the courses of conduct proposed by the Buyer and by the Seller is most likely to
result in the third party claim being agreed, settled or compromised at the least cost to the
Seller, unless that course of action has a demonstrable risk of having a material and adverse
effect on the Business and the other course of action proposed does not in which case, the
individual to who the dispute has been referred shall give his opinion as to the course of
action which carries the least risk of a material and adverse effect on the Business. The
decision of counsel (who shall act as expert and not as arbitrator) shall be final and binding
on the Buyer and the Seller for all purposes. Counsel’s fees and expenses shall be borne by
the Seller and the Buyer as counsel may determine in his sole discretion or, if no such
determination is made by the Seller and the Buyer in equal shares. The parties shall then
implement counsel’s decision as soon as is reasonably practicable.
	 
	6.5	 	References in this paragraph 6 to any claim, action or demand against the Buyer include the
assertion of any right to the same, including a right of termination.

75

 

	7.	 	REMEDIES
	 
	7.1	 	The Buyer irrevocably and unconditionally waives any right it may have to rescind this
Agreement for any misrepresentation, whether or not contained in this Agreement or to
terminate this Agreement for any other reason save in accordance with clauses 4.4 and 9.7.
	 
	7.2	 	The Buyer irrevocably and unconditionally waives any right it may have to sue the Seller or
any of the Seller’s advisers for misrepresentation, whether in equity, tort or under the
Misrepresentation Act 1967, in respect of any misrepresentation, whether or not contained in
this Agreement. The Buyer’s sole remedy in respect of any such misrepresentation shall be an
action for breach of contract under the terms of this Agreement if and to the extent that the
misrepresentation in question constitutes a breach of the Warranties.
	 
	7.3	 	Without limiting clause 14.6 of this Agreement, nothing in this paragraph 7 shall limit the
Seller’s liability for fraudulent misrepresentation, or the remedies available to the Buyer
for fraudulent misrepresentation.
	 
	8.	 	GENERAL
	 
	8.1	 	The Buyer shall not be entitled to recover any loss or amount more than once under this
Agreement.
	 
	8.2	 	For the avoidance of doubt, if an amount is paid into the Escrow Account in accordance with
clause 5.4 the Buyer shall have no further right to bring a Warranty Claim in respect of the
same breach of a Repeated Warranty.
	 
	8.3	 	Without limiting any obligations it may have at law or in equity, the Buyer shall mitigate
any loss in respect of which a Warranty Claim or a claim to be indemnified for any loss,
arises.
	 
	8.4	 	The Buyer acknowledges that the Buyer’s Solicitors have explained to it the effect of
paragraphs 7.1 and 7.2 and clause 28 (entire agreement) and accepts that those paragraphs and
clause 28 are reasonable in all the circumstances.

76

 

SCHEDULE 5

Conduct of Business Pending Completion

Between the date of this Agreement and the Completion Date (or any earlier date on which the
parties cease to have further rights or obligations under this Agreement under clauses 4.4 or 9.7)
the Seller shall:

	1.	 	Operation of the Business
	 
	 	 	use all reasonable endeavours to:
	 
	1.1	 	conduct the Business in all material respects in the usual way so as to maintain it as a
going concern;
	 
	1.2	 	conduct the business in accordance with all applicable material legal requirements; and
	 
	1.3	 	co-operate with the Buyer to assist the Buyer in preparing for the efficient continuation of
the management of the Business after Completion;
	 
	2.	 	Assets
	 
	2.1	 	not, without the prior written consent of the Buyer, acquire or dispose of or agree to
acquire or dispose of any material Asset having a value in excess of £15,000, except in the
usual course of its business and for the avoidance of doubt the acquisition or disposal of an
ATM shall be in the ordinary course of business;
	 
	2.2	 	not, without the prior written consent of the Buyer, create or agree to create any
Encumbrance over any Assets;
	 
	3.	 	Insurance
	 
	3.1	 	not, without the prior written consent of the Buyer, do or fail to do anything that would be
likely to result in a material increase in the premium payable under such policy; or
	 
	3.2	 	use all reasonable endeavours to ensure that the insurance policies covering the Assets and
the Business are maintained in the ordinary course of business;

77

 

	4.	 	Agreements
	 
	4.1	 	not, without the prior written consent of the Buyer, terminate, or give notice to terminate,
a Site Agreement, lease, tenancy or licence;
	 
	4.2	 	apply for consent to do something requiring consent under an existing Site Agreement, lease,
tenancy or licence;
	 
	4.3	 	grant or refuse an application by a tenant, licensee or occupier to do something requiring
its consent under a lease, tenancy or licence;
	 
	4.4	 	agree a new rent or fee payable under a Site Agreement, lease, tenancy or licence;
	 
	4.5	 	enter into a material long term, onerous or unusual agreement or arrangement;
	 
	4.6	 	enter into, amend in any material way or terminate, any Contract other than in the ordinary
course of business;
	 
	5.	 	Employees
	 
	5.1	 	not, without the prior written consent of the Buyer, amend in any material way, the terms of
employment or engagement of any Employee;
	 
	5.2	 	not, without the prior written consent of the Buyer, provide or agree to provide a gratuitous
benefit to any Employee (or any of their dependants);
	 
	5.3	 	not, without the prior written consent of the Buyer, employ or engage any person as an
employee of the Business or give notice to terminate (other than in circumstances justifying
summary dismissal) the employment of any Employee;
	 
	6.	 	Pension
	 
	 	 	not, without the prior written consent of the Buyer, amend or discontinue (in whole or in
part) the Pension Scheme or communicate to any Employee of the Business a plan, proposal or
intention to amend, discontinue (in whole or in part) or exercise a discretion, in relation
to the Pension Scheme;
	 
	7.	 	Insider Agreements

78

 

	 	 	not, without the prior written consent of the Buyer enter into an agreement or arrangement
in relation to the Business in which the Seller, or a member of the Seller’s Group or a
director or former director of the Seller or any member of the Seller’s Group, is
interested;

save that in no circumstances shall the Seller be liable for any action taken or not taken as a
result of or pursuant to the terms of this Agreement and/or the Share Purchase Agreement which
results in a breach of the provisions of this schedule 5.

SCHEDULE
6

Confidential
Treatment

SCHEDULE
7

Confidential
Treatment

SCHEDULE
8

Confidential
Treatment

SCHEDULE
9

Confidential
Treatment

SCHEDULE
10

Confidential
Treatment

SCHEDULE
11

Confidential
Treatment

SCHEDULE
12

Confidential
Treatment

79

 

	 	 	 	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	CLIVE KAHN

	duly authorised on behalf of

	 	 	)	 	 	 	 	 
	TRAVELEX UK LIMITED

	 	 	)	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 	 	 
	duly authorised on behalf of

	 	 	)	 	 	ASHLEY DEAN

	TRM (ATM) LIMITED

	 	 	)	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	EXECUTED as a DEED by

	 	 	)	 	 	 	 	 
	TRM CORPORATION

	 	 	)	 	 	 	 	 
	acting by

	 	 	)	 	 	TOM MANN	 
	 

	 	 	 	 	 	Director

	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	ASHLEY DEAN	 
	 

	 	 	 	 	 	Director/Secretary

80IT&E INTERNATIONAL
GROUP 

2005 EQUITY INCENTIVE
PLAN 

IT&E INTERNATIONAL
GROUP

2005 EQUITY INCENTIVE
PLAN 

     1.    
          PURPOSES. The primary purpose of this IT&E International Group
          2005 Equity Incentive Plan (the “Plan”) is to
          provide a means by which the Company can retain and maximize the services of its
          current Employees, Directors and Consultants, and secure, retain and maximize
          the services of new Employees, Directors and Consultants, by providing Stock
          Awards, including Incentive Stock Options, Nonstatutory Stock Options,
          Restricted Stock Awards and stock bonuses, to such persons on the terms and
          conditions set forth in the Plan. In addition, the Plan is intended to generate
          proceeds from the sale of Common Stock pursuant to Stock Awards that shall be
          used as general funds of the Company 

     2.    
          DEFINED TERMS. Capitalized terms in this Plan shall have the meanings set
          forth in Appendix A attached hereto, unless defined elsewhere in this
          Plan or the context of their use clearly indicates a different meaning. 

     3.    
          ADMINISTRATION. 

         3.1      Authority
of Board. Unless and until the Board decides to delegate administration of the Plan to
a Committee as set forth in Section 3.2 below, the Board shall have full authority to
administer the Plan, subject only to the express provisions and limitations set forth in
the Plan and any applicable laws. Without limiting the generality of the foregoing, the
Board shall be fully empowered to: (i) determine, from time to time, the recipients of
Stock Awards and the terms upon which Stock Awards shall be granted to such recipients;
(ii) construe and interpret, and correct any defects, omissions or inconsistencies in,
the Plan and any Stock Awards; (iii) terminate, suspend or amend the Plan or any Stock
Award as provided in Section 11; and (iv) exercise such powers and perform such acts
consistent with the provisions of the Plan as the Board deems necessary or expedient to
promote the best interests of the Company and its stockholders. The determinations of the
Board with respect to the Plan shall not be subject to review by any Person and shall be
final, binding and conclusive on the Company and all other Persons.  

        3.2      Delegation
to Committee. In accordance with the Board’s authority under the Delaware
General Corporation Law and the Company’s Bylaws, the Board may delegate
administration of the Plan to a Committee, which Committee shall, upon such delegation,
be empowered to exercise the full authority of the Board with respect to the Plan.  

4.    COMMON STOCK SUBJECT
TO THE PLAN. 

        4.1      Reserve
Pool. Subject to the provisions of Section 10 relating to Capitalization
Adjustments, an aggregate of 7,500,000 shares of Common Stock (the “Reserve
Pool”) may be issued pursuant to Stock Awards. If any Stock Award
shall for any reason expire or otherwise terminate, in whole or in part, without having
been exercised in full, the shares of Common Stock not acquired under such Stock Award
shall automatically revert to the Reserve Pool and again become available for issuance
under the Plan. During the term of the Plan, the Company shall keep available in the
Reserve Pool at all times a number of shares of Common Stock sufficient to satisfy all
outstanding Stock Awards.  

1 

        4.2      Limitation
on Number of Shares. To the extent required by CCR Title 10, the total number of
shares of Common Stock issuable upon exercise of all outstanding Stock Awards, together
with the total number of shares of Common Stock provided for under any stock bonus or
similar plan of the Company, shall not exceed the applicable percentage as calculated in
accordance with the conditions and exclusions of CCR Title 10, based on the shares
of Common Stock of the Company that are outstanding at the time the calculation is made.  

5.    ELIGIBILITY. 

        5.1      
     Employees. Employees shall be eligible to receive each of the types of Stock
Awards  provided for in the Plan. 

        5.2      
     Directors.  Directors  shall be eligible to receive each of the types of Stock
 Awards,  except  Incentive Stock Options, provided for in the Plan. 

        5.3      Consultants.
To the extent permitted by applicable law, consultants shall be eligible to receive
each of the types of Stock Awards, except Incentive Stock Options, provided for in the
Plan.  

        5.4      Ten
Percent Stockholders. In addition to any other applicable restrictions set forth in
this Section 5, a Ten Percent Stockholder shall not be granted: (i) an Incentive Stock
Option unless the exercise price of such Incentive Stock Option is at least one hundred
ten percent (110%) of the Fair Market Value of the Common Stock on the date of grant and
such Incentive Stock Option is not exercisable after the expiration of five (5) years
from the date of grant; (ii) a Nonstatutory Stock Option unless the exercise price of
such Nonstatutory Stock Option is at least one hundred ten percent (110%) of the Fair
Market Value of the Common Stock on the date of grant, except as otherwise permitted by
CCR Title 10 at the time of the grant of the Nonstatutory Stock Option; (iii) a
Restricted Stock Award unless the purchase price of the Common Stock issuable upon
exercise of such Restricted Stock Award is at least one hundred percent (100%) of the
Fair Market Value of the Common Stock on the date of grant, except as otherwise permitted
by CCR Title 10 at the time of the grant of the Restricted Stock Award.  

        5.5      
Proprietary Information and Inventions Agreement.  

                    (a)              Prior
to being granted any Award under the Plan, each Employee shall have           executed
and delivered to the Company a copy of the Company’s standard           proprietary
information and inventions agreement or such other agreement           containing similar
obligations of confidentiality as may be approved by the           Board at the time the
Award is granted (any such agreement being referred to           herein as a “Proprietary
Information and Inventions           Agreement”). In the event that
any Award is inadvertently           granted to an Employee who has not, as of the date
of such grant, entered into a           Proprietary Information and Inventions Agreement
with the Company, such Award           shall be deemed null and void ab initio.  

2 

                 
        (b)    
          In the event that any Employee breaches any provision of the Proprietary
          Information and Inventions Agreement between such Employee and the Company, such
          Employee shall no longer be eligible to receive Awards pursuant to this Plan.
          Moreover, such Employee shall be deemed, as of the date of such Employee’s
          breach of such Proprietary Information and Inventions Agreement, to have
          forfeited all outstanding Awards previously granted to and then held by such
          Employee, regardless of whether such Awards are then vested or exercisable. 

     6.    
          PROVISIONS APPLICABLE TO ALL STOCK AWARDS. 

        6.1      No
Stockholder Rights. No Participant shall be deemed to be the holder of, or to have
any of the rights of a holder with respect to, any shares of Common Stock subject to any
Stock Award held by such Participant unless and until such Participant has satisfied all
requirements for the exercise of the Stock Award pursuant to its terms.  

        6.2      No
Employment or Other Service Rights. Nothing in the Plan or any Stock Award Agreement
shall confer upon any Participant any right to continue to serve the Company or an
Affiliate in any capacity. Likewise, nothing in the Plan or any Stock Award shall affect
the right of the Company or any applicable Affiliate to terminate: (i) the
employment of an Employee with or without notice and with or without Cause; (ii) the
service of a Consultant pursuant to the terms of such Consultant’s agreement with
the Company or an Affiliate; or (iii) the service of a Director pursuant to the
bylaws of the Company or any applicable Affiliate, and any applicable provisions of the
corporate law of the state in which the Company or the Affiliate is incorporated, as the
case may be.  

        6.3      Investment
Assurances. At any time that the issuance of the shares of Common Stock issuable upon
the exercise of a Stock Award has not been registered under an effective registration
statement under the Securities Act, the Company may: (i) require a Participant, as a
condition of acquiring Common Stock under such Stock Award, to give written
assurances satisfactory to the Company (a) as to the Participant’s knowledge and
experience in financial and business matters and capability to evaluate the merits and
risks of acquiring such Common Stock under such Stock Award and (b) stating that the
Participant is acquiring such Common Stock under the Stock Award for the Participant’s
own account and not with any present intention of selling or otherwise distributing such
Common Stock; and (ii) place legends, including, without limitation, legends restricting
the transfer of such Common Stock, on any and all stock certificates representing such
Common Stock in order to comply with applicable securities laws.  

        6.4      Withholding
Obligations. To the extent provided by the terms of a Stock Award Agreement, the
Participant may satisfy any federal, state or local tax withholding obligation relating
to the acquisition of Common Stock under a Stock Award by any of the following means (in
addition to the Company’s right to withhold from any compensation paid to the
Participant by the Company) or by a combination of such means: (i) tendering a cash
payment; or (ii) authorizing the Company to withhold shares of Common Stock from the
shares of Common Stock otherwise issuable to the Participant as a result of the
acquisition of Common Stock under the Stock Award; provided, however, that
no shares of Common Stock are withheld with a value exceeding the minimum amount of tax
required to be withheld by law (or such lower amount as may be necessary to avoid
variable award accounting).  

3  

        6.5      Vesting.
The Board or Committee may provide that the total number of shares of Common Stock
subject to a Stock Award shall vest in installments over any given period of time.
Criteria for determining the vesting of shares of Common Stock subject to a Stock Award
may be based solely on the passage of time or on any other criteria, including, without
limitation, the performance of the Participant, deemed appropriate by the Board or
Committee.  

        6.6      Acceleration
of Exercisability and Vesting. The Board shall have the power to accelerate the time
at which a Stock Award may first be exercised or the time during which a Stock Award or
any part thereof will vest in accordance with the Plan, notwithstanding the provisions in
the Stock Award stating the time at which it may first be exercised or the time during
which it will vest.  

        6.7      Terms
of Repurchase Options. The terms of any repurchase option in favor of the Company
with respect to shares of Common Stock issuable pursuant to a Stock Award shall be
specified in the applicable Stock Award Agreement. The price per share of Common Stock at
which such repurchase option may be exercised may be either: (i) the Fair Market Value of
the shares of Common Stock on the date of the termination of the applicable Participant’s
Continuous Service; or (ii) the lower of (a) the Fair Market Value of the shares of
Common Stock on the date of repurchase and (b) the original purchase price per share
of Common Stock paid by the applicable Participant; provided, however, that
terms of any repurchase option shall comply at all times with the provisions of CCR Title
10 relating to “presumptively reasonable” repurchase prices.  

        6.8      Information
Obligation. To the extent required by CCR Title 10, the Company shall deliver
financial statements to Participants at least annually; provided, however,
that the obligation to deliver financial statements shall not apply to Employees whose
duties with the Company assure them access to equivalent information.  

7.    OPTIONS. 

        7.1      Stock
Award Agreements for Options. Each Stock Award Agreement for an Option shall be in
such form and shall contain such terms and conditions as the Board or Committee shall
deem appropriate. The terms and conditions of such Stock Award Agreements may change from
time to time, and the terms and conditions of Stock Award Agreements for separate Options
need not be identical; provided, however, that each Stock Award Agreement
for an Option shall include (through incorporation of provisions hereof by reference in
the Stock Award Agreement or otherwise) the substance of the provisions set forth in this
Section 7.  

        7.2      Designation.
All Options shall be separately designated Incentive Stock Options or Nonstatutory
Stock Options at the time of grant, and, if certificates are issued, a separate
certificate or certificates shall be issued for shares of Common Stock purchased on
exercise of each type of Option.  

        7.3      Term. Subject
to the provisions of Section 5.4 above, no Option shall be exercisable after the
expiration of ten (10) years from the date it was granted.  

4 

        7.4      Minimum
Vesting. Notwithstanding Section 6.5 above, to the extent required by CCR Title 10:
(i) Options granted to an Employee who is not an Officer, Director or Consultant shall
provide for vesting of the total number of shares of Common Stock at a rate of at least
twenty percent (20%) per year over five (5) years from the date the Option was granted,
subject to reasonable conditions such as Continuous Service; and (ii) Options granted to
Officers, Directors or Consultants may be made fully exercisable at any time or during
any period established by the Board or Committee, subject to reasonable conditions such
as Continuous Service.  

        7.5      
Consideration.  

            
        (a)              The
purchase price of Common Stock acquired pursuant to an Option shall be paid,           to
the extent permitted by applicable statutes and regulations, either:           (i) in
cash at the time the Option is exercised; or (ii) pursuant to a           program
developed under Regulation T as promulgated by the Federal Reserve Board           that,
prior to the issuance of Common Stock, results in either the receipt by           the
Company of cash (or a check) in the amount of, or the receipt by the Company           of
a copy of irrevocable instructions previously delivered by the purchaser to           the
purchaser’s broker instructing such broker to pay to the Company an           amount
equal to, the aggregate exercise price for the number of shares of Common           Stock
being issued to the purchaser in connection with the exercise of the           Option
from the proceeds of the simultaneous sale of the Common Stock.  

        
            (b)              Notwithstanding
Section 7.5(a) above: (i) unless otherwise specifically provided           in the Option,
the purchase price of Common Stock acquired pursuant to an Option           that is paid
by delivery to the Company of other Common Stock acquired, directly           or
indirectly from the Company, shall be paid only by shares of the Common Stock
          of the Company that have been held for more than six (6) months (or such longer
          or shorter period of time required to avoid a charge to earnings for financial
          accounting purposes); and (ii) in the case of any deferred payment arrangement,
          interest shall be compounded at least annually and shall be charged at the
          minimum rate of interest necessary to avoid (a) the treatment as interest,
under           any applicable provisions of the Code, of any amounts other than amounts
stated           to be interest under the deferred payment arrangement and (b) the
treatment of           the Option as a variable award for financial accounting purposes.  

        7.6      Early
Exercise. An Option may include a provision whereby the Participant may elect at any
time before the Participant’s Continuous Service terminates to exercise the Option
as to any part or all of the shares of Common Stock subject to the Option prior to the
full vesting of such shares of Common Stock. Subject to Section 6.7 above, any
unvested shares of Common Stock so purchased may be subject to a repurchase option in
favor of the Company or to any other restriction the Board determines to be appropriate.  

        7.7      
Termination of Continuous Service.  

        
            (a)    Termination
Other Than for Cause or As a Result of Death or Disability.          In the event
that a Participant’s Continuous Service terminates other than           for Cause or
as a result of the Participant’s Disability or death, the           Participant may
exercise his or her Option (to the extent that the Participant           was entitled to
exercise such Option as of the date of termination) at any time           within the
period (the “Post-Termination Exercise           Period”)
ending on the earlier of: (i) the expiration           of the term of the Option as
set forth in the applicable Stock Award Agreement;           or (ii) the date three
(3) months following the termination of the           Participant’s Continuous
Service (or such longer or shorter period           specified in the applicable Stock
Award Agreement, which period shall not be           less than thirty (30) days). If,
after the termination of such           Participant’s Continuous Service, such
Participant does not exercise his or           her Option within such Post-Termination
Exercise Period, the Option shall           terminate.  

5 

        
            (b)    Termination
for Cause. In the event a Participant’s Continuous           Service is
terminated for Cause, the Option shall terminate upon the termination           date of
such Participant’s Continuous Service, and the Participant shall be
          prohibited from exercising his or her Option as of the time of such
termination.  

        
            (c)    Termination
As a Result of Disability. In the event that a           Participant’s
Continuous Service terminates as a result of the           Participant’s Disability,
the Participant may exercise his or her Option           (to the extent that the
Participant was entitled to exercise such Option as of           the date of
termination), at any time during the Post-Termination Exercise           Period ending on
the earlier of: (i) the expiration of the term of the           Option as set forth
in the Stock Award Agreement; or (ii) the date twelve           (12) months
following such termination of Continuous Service (or such longer or           shorter
period specified in the Stock Award Agreement, which period shall not be           less
than six (6) months). If, after termination of Continuous Service, the
          Participant does not exercise his or her Option within such Post-Termination
          Exercise Period, the Option shall terminate.  

        
            (d)    Termination
As a Result of Death. In the event that a           Participant’s
Continuous Service terminates as a result of the           Participant’s death or a
Participant dies within any applicable           Post-Termination Exercise Period, then
such Participant’s Option may be           exercised (to the extent the Participant
was entitled to exercise such Option as           of the date of death) by the Participant’s
estate, by a Person who acquired           the right to exercise the Option by bequest or
inheritance or by a Person           designated to exercise the option upon the
Participant’s death pursuant to           Section 7.8(b) or 7.9(b) below, at
any time during the Post-Termination           Exercise Period ending on the earlier of:
(i) the expiration of the term of           the Option as set forth in the Stock
Award Agreement; or (ii) the date           eighteen (18) months following such
termination of Continuous Service (or such           longer or shorter period specified
in the Stock Award Agreement, which period           shall not be less than six (6)
months). If, after termination of Continuous           Service, the Participant does not
exercise his or her Option within such           Post-Termination Exercise Period, the
Option shall terminate.  

        7.8      
Special Provisions for Incentive Stock Options.  

              
      (a)    Exercise
Price. Subject to the provisions of Section 5.4 above, the           exercise
price of each Incentive Stock Option shall be not less than one hundred           percent
(100%) of the Fair Market Value of the Common Stock subject to the           Incentive
Stock Option on the date the Incentive Stock Option is granted.           Notwithstanding
the foregoing, an Incentive Stock Option may be granted with an           exercise price
lower than that set forth in the preceding sentence if such           Incentive Stock
Option is granted pursuant to an assumption or substitution for           another option
in a manner satisfying the provisions of           Section 424(a) of the Code.  

6 

        
            (b)    Transferability. An
Incentive Stock Option shall not be transferable           except by will or by the laws
of descent and distribution and shall be           exercisable during the lifetime of the
Participant only by the Participant.           Notwithstanding the foregoing, a
Participant may, by delivering written notice           to the Company in a form
satisfactory to the Company, designate a third party           who, in the event of the
death of such Participant, shall thereafter be entitled           to exercise such
Participant’s Incentive Stock Option.  

        
            (c)    $100,000
Limitation. To the extent that the aggregate Fair Market Value           (determined
at the time of grant) of Common Stock with respect to which           Incentive Stock
Options are exercisable for the first time by any Participant           during any
calendar year under all plans of the Company and its Affiliates           exceeds
$100,000, the Incentive Stock Options or portions thereof that exceed           such
limit (according to the order in which they were granted) shall be           treated
as Nonstatutory Stock Options, notwithstanding any contrary provision of           the
applicable Stock Award Agreement(s).  

        7.9      
Special Provisions for Nonstatutory Stock Options.  

        
            (a)    
Exercise
Price. Subject to the provisions of Section 5.4 above, the           exercise
price of each Nonstatutory Stock Option shall be not less than           eighty-five
percent (85%) of the Fair Market Value of the Common Stock subject           to the
Nonstatutory Stock Option on the date the Nonstatutory Stock Option is           granted.
Notwithstanding the foregoing, a Nonstatutory Stock Option may be           granted with
an exercise price lower than that set forth in the preceding           sentence if such
Nonstatutory Stock Option is granted pursuant to an assumption           or substitution
for another option in a manner satisfying the provisions of           Section 424(a) of
the Code.  

        
            (b)    Transferability. A
Nonstatutory Stock Option shall not be transferable           except by will or by the
laws of descent and distribution and, to the extent           provided in the Stock Award
Agreement and as permitted by CCR Title 10 at           the time of the grant of the
Nonstatutory Stock Option, and shall be exercisable           during the lifetime of the
Participant only by the Participant. If a           Nonstatutory Stock Option does not
provide for transferability, then such           Nonstatutory Stock Option shall not be
transferable except by will or by the           laws of descent and distribution and
shall be exercisable during the lifetime of           the Participant only by the
Participant. Notwithstanding the foregoing, a           Participant may, by delivering
written notice to the Company in a form           satisfactory to the Company, designate
a third party who, in the event of the           death of such Participant, shall
thereafter be entitled to exercise such           Participant’s Nonstatutory Stock
Option.  

     8.    
          STOCK BONUSES. 

        8.1      Stock
Award Agreements for Stock Bonuses. Each Stock Award Agreement for a stock bonus
shall be in such form and shall contain such terms and conditions as the Board or
Committee shall deem appropriate. The terms and conditions of such Stock Award Agreements
may change from time to time, and the terms and conditions of Stock Award Agreements for
separate stock bonuses need not be identical; provided, however, that each
Stock Award Agreement for a stock bonus shall include (through incorporation of
provisions hereof by reference in the Stock Award Agreement or otherwise) the substance
of the provisions set forth in this Section 8.  

7 

        8.2      Consideration. A
stock bonus may be awarded in consideration for past services actually rendered to the
Company or an Affiliate for its benefit.  

        8.3      Termination
of Participant’s Continuous Service. In the event that a Participant’s
Continuous Service terminates, the Company may reacquire, for no consideration, any or
all of the shares of Common Stock held by the Participant that have not vested as of the
date of termination under the terms of the Stock Award Agreement for the stock bonus.  

        8.4      Transferability.Rights
to acquire shares of Common Stock under the Stock Award Agreement for a stock bonus shall
not be transferable except by will or by the laws of descent and distribution and shall
be exercisable during the lifetime of the Participant only by the Participant.  

9.    RESTRICTED STOCK
AWARDS. 

        9.1      Stock
Award Agreements for Restricted Stock Awards. Each Stock Award Agreement for a
Restricted Stock Award shall be in such form and shall contain such terms and conditions
as the Board or Committee shall deem appropriate. The terms and conditions of such Stock
Award Agreements may change from time to time, and the terms and conditions of Stock
Award Agreements for separate Restricted Stock Awards need not be identical; provided,
however, that each Stock Award Agreement for a Restricted Stock Award shall
include (through incorporation of provisions hereof by reference in the Stock Award
Agreement or otherwise) the substance of the provisions set forth in this Section 9.  

        9.2      Purchase
Price. At the time of grant of a Restricted Stock Award, the Board or Committee will
determine the price to be paid by the Participant for each share of Common Stock subject
to such Restricted Stock Award. Subject to the provisions of Section 5.4 above,
the purchase price of Restricted Stock Awards shall not be less than eighty-five percent
(85%) of the Fair Market Value of the Common Stock on the date such Restricted Stock
Award is made or at the time the purchase is consummated. A Restricted Stock Award may be
awarded as a stock bonus (i.e., with no cash purchase price to be paid) to the
extent permissible under applicable law.  

        9.3      Consideration. At
the time of the grant of a Restricted Stock Award, the Board will determine the
consideration permissible for the payment of the purchase price of the Restricted Stock
Award. The purchase price of Common Stock acquired pursuant to the Stock Award Agreement
for the Restricted Stock Award shall be paid either: (i) in cash at the time of
purchase; (ii) at the discretion of the Board, according to a deferred payment or
other similar arrangement with the Participant; (iii) by services rendered or to be
rendered to the Company; or (iii) in any other form of legal consideration that may
be acceptable to the Board in its discretion.  

        9.4      Termination
of Participant’s Continuous Service. Subject to Section 6.7, in the event
that a Participant’s Continuous Service terminates, the Company may repurchase or
otherwise reacquire any or all of the shares of Common Stock held by the Participant that
have not vested as of the date of termination under the terms of the Stock Award
Agreement for such Participant’s Restricted Stock Award.  

8 

        9.5      Transferability.Rights
to acquire shares of Common Stock under the Stock Award Agreement for a Restricted Stock
Award shall not be transferable except by will or by the laws of descent and distribution
and shall be exercisable during the lifetime of the Participant only by the Participant.  

10.    ADJUSTMENTS UPON
CHANGES IN STOCK. 

        10.1      Capitalization
Adjustments. If any change is made in, or other event occurs with respect to, the
Common Stock of the Company without the receipt of consideration by the Company (through
merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend,
dividend in property other than cash, stock split, liquidating dividend, combination of
shares, exchange of shares, change in corporate structure or other transaction (each a “Capitalization
Adjustment”)), the Plan will be appropriately adjusted in the class
and maximum number of securities subject to the Plan pursuant to Section 4.1, and
the outstanding Stock Awards will be appropriately adjusted in the class and number of
securities and price per share of Common Stock subject to such outstanding Stock Awards;
provided, however, that the conversion of any convertible securities of the
Company shall not be treated as a transaction “without receipt of consideration” by
the Company and shall not give rise to a Capitalization Adjustment pursuant to this
Section 10.1. The Board or Committee shall make such adjustments, which shall be final,
binding and conclusive.  

        10.2      Dissolution
or Liquidation. In the event of a dissolution or liquidation of the Company, then all
outstanding Stock Awards shall terminate immediately prior to the completion of such
dissolution or liquidation, and shares of Common Stock subject to any repurchase option
in favor of the Company may be repurchased by the Company, notwithstanding the fact
whether or not the applicable Participant’s Continuous Service has terminated.  

        10.3      
Corporate Transaction.  

        
            (a)              In
the event of a Corporate Transaction, any surviving corporation or acquiring
          corporation may (but need not) assume or continue any or all Stock Awards
          outstanding under the Plan or may (but need not) substitute similar stock
awards           for Stock Awards outstanding under the Plan (including an award to
acquire the           same consideration paid to the stockholders or the Company, as the
case may be,           pursuant to the Corporate Transaction), and any reacquisition or
repurchase           rights held by the Company in respect of Common Stock issued
pursuant to Stock           Awards may be assigned by the Company to the successor of the
Company or to the           acquiring corporation (or such successor’s or acquiring
corporation’s           parent company), if any, in connection with such Corporate
Transaction. In the           event any surviving corporation or acquiring corporation
elects to assume or           continue any or all Stock Awards outstanding under the
Plan, such Stock Awards           shall remain in effect in accordance with the terms of
this Plan and the           applicable Stock Award Agreements, but shall thereafter
represent the right to           receive (upon exercise thereof in accordance with the
terms of such Stock           Awards, if applicable) for each share of Common Stock
underlying each such Stock           Award such cash, securities or other property that
would have been received by           the applicable Participant had such Participant
exercised such Stock Award           immediately prior to the effective time of the
Corporate Transaction.  

9 

        
            (b)              In
the event that, in connection with a Corporate Transaction, any surviving
          corporation or acquiring corporation does not assume or continue any or all
such           outstanding Stock Awards or substitute similar stock awards for such
outstanding           Stock Awards, then with respect to Stock Awards that have not been
assumed,           continued or substituted, such Stock Awards shall terminate if not
exercised (if           applicable) at or prior to the effective time of such Corporate
Transaction, and           any reacquisition or repurchase rights held by the Company
with respect to such           Stock Awards held by Participants whose Continuous Service
has not terminated           shall (contingent upon the effectiveness of the Corporate
Transaction) lapse.  

        10.4      Change
in Control. A Stock Award held by any Participant whose Continuous Service has not
terminated prior to the effective time of a Change in Control may be subject to
additional acceleration of vesting and exercisability upon or after such Change in
Control as may be provided in the Stock Award Agreement for such Stock Award; provided,
however, that in the absence of any such provision in the Stock Award Agreement
for such Stock Award, no such acceleration shall occur.  

11.    TERMINATION,
SUSPENSION AND AMENDMENT. 

        11.1      Termination
or Suspension of the Plan. The Board may suspend or terminate the Plan at any time.
Unless sooner terminated, the Plan shall terminate on the day before the tenth (10th)
anniversary of the date the Plan is adopted by the Board or approved by the stockholders
of the Company, whichever is earlier. No Stock Awards may be granted under the Plan while
the Plan is suspended or after it is terminated.  

        11.2      Amendment
of the Plan and Stock Awards. Subject to Section 11.3 below, the Board may, from time
to time, amend the Plan or any Stock Award in any manner it deems appropriate or
necessary. Notwithstanding the foregoing, except as expressly provided elsewhere in the
Plan, no amendment to the Plan shall be effective unless approved by the stockholders of
the Company to the extent stockholder approval is necessary to satisfy the requirements
of Section 422 of the Code.  

        11.3      No
Impairment. No termination or suspension of the Plan or amendment of the Plan or any
Stock Award shall impair rights of a Participant with respect to any outstanding Stock
Award unless the Company receives the written consent of such Participant.  

12.    MISCELLANEOUS. 

        12.1      
Compliance with Laws.  

        
            (a)              This
Plan and the obligations of the Company with respect to any Stock Awards
          granted hereunder shall be subject to all applicable federal and state
          securities laws. If, after reasonable efforts, the Company is unable to obtain
          from any applicable regulatory commission or agency the authority that legal
          counsel for the Company deems necessary for the lawful issuance and sale of
          Common Stock pursuant to such Stock Awards, then the Company shall be relieved
          from any liability for failure to issue and sell Common Stock in connection
with           such Stock Awards unless and until such authority is obtained.  

10 

        
            (b)              To
facilitate the grant of any Stock Award, the Committee may impose special           terms
for Stock Awards granted to Participants who are foreign nationals or who           are
employed by the Company or any Affiliate outside of the United States as the
          Board or Committee may consider necessary or appropriate to accommodate
          differences in local laws, tax policies or customs.  

        12.2      Severability. If
one or more provisions of this Plan are held to be unenforceable under applicable law,
such provision shall be excluded from this Plan and the balance of the Plan shall be
interpreted as if such provision were so excluded and shall be enforceable in accordance
with its terms.  

        12.3      Governing
Law. The law of the State of California shall govern all questions concerning the
construction, validity and interpretation of this Plan, without regard to such state’s
conflict of laws rules.  

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11 

APPENDIX A 

DEFINITIONS 

        “Affiliate”
means any parent corporation or subsidiary corporation of the Company, whether now or
hereafter existing, as those terms are defined in Sections 424(e) and (f), respectively,
of the Code. 

        “Board”
means the Board of Directors of the Company. 

        
“Cause” means, with respect to a particular Participant, the
occurrence of any of the following: (i) such Participant’s conviction of any
felony or any crime involving fraud; (ii) such Participant’s participation
(whether by affirmative act or omission) in a fraud or felonious act against the Company
and/or its Affiliates; (iii) such Participant’s violation of any statutory or
fiduciary duty, or duty of loyalty owed to the Company and/or its Affiliates and which has
a material adverse effect on the Company and/or its Affiliates; (iv) such
Participant’s violation of state or federal law in connection with such
Participant’s performance of such Participant’s job; (v) breach of any
material term of any contract between such Participant and the Company and/or its
Affiliates; and (vi) such Participant’s violation of any material Company
policy; provided, however, that the final determination that a termination
is for Cause shall be made by the Board or Committee, as applicable, in its sole and
exclusive judgment and discretion. 

        “CCR
Title 10” means Title 10 of the California Code of Regulations,
as amended from time to time. 

        “Change
in Control” means any Corporate Transaction or the occurrence, in any
single transaction or in any series of related transactions not approved by the Board, of
any Person becoming the Owner, directly or indirectly, of securities of the Company
representing more than fifty percent (50%) of the combined voting power of the
Company’s then-outstanding securities; provided, however, that
notwithstanding the foregoing or any other provision of this Plan, the definition of
Change in Control (or any analogous term) in an individual written agreement between the
Company or any Affiliate and the Participant shall supersede the foregoing definition with
respect to Stock Awards subject to such agreement (it being understood, however, that if
no definition of Change in Control or any analogous term is set forth in such an
individual written agreement, the foregoing definition shall apply). 

        
“Code” means the Internal Revenue Code of 1986, as amended. 

        “Committee”
means a committee of one (1) or more members of the Board appointed by the Board in
accordance with Section 3.2 of the Plan. 

        “Common
Stock” means the Company’s common stock, par value $0.001 per
share. 

        “Company”
means IT&E International Group, a Delaware corporation. 

        “Consultant”
means any person, including an advisor, engaged by the Company or an Affiliate to render
consulting or advisory services and who is compensated for such services; provided,
however, that the term “Consultant” shall not include Directors who are
not compensated by the Company for their services as Directors, and the payment of a fee
by the Company for services which the Board determines in its sole discretion are services
as a Director shall not cause a Director to be considered a “Consultant” for
purposes of the Plan. 

        “Continuous
Service” means that the Participant’s service with the Company or
an Affiliate, whether as an Employee, Director or Consultant, is not interrupted or
terminated. A change in the capacity in which the Participant renders service to the
Company or an Affiliate as an Employee, Consultant or Director or a change in the entity
for which the Participant renders such service, provided that there is no interruption or
termination of the Participant’s service with the Company or an Affiliate, shall not
terminate a Participant’s Continuous Service. For example, a change in status from an
Employee of the Company to a Consultant of an Affiliate, or to a Director shall not
constitute an interruption of Continuous Service. The Board, Committee or any authorized
Officer of the Company, in that party’s sole discretion, may determine whether
Continuous Service shall be considered interrupted in the case of any leave of absence
approved by that party, including sick leave, military leave or any other personal leave.
Notwithstanding the foregoing, a leave of absence shall be treated as Continuous Service
for purposes of vesting in a Stock Award only to such extent as may be provided in the
Company’s leave of absence policy or in the written terms of the Participant’s
leave of absence. 

        “Corporate
Transaction” means the occurrence, in a single transaction or in a
series of related transactions, of any one or more of the following events: 

        
            (a)              there
is consummated a merger, consolidation or similar transaction involving
          (directly or indirectly) the Company if, immediately after the consummation of
          such merger, consolidation or similar transaction, the stockholders of the
          Company immediately prior thereto do not Own, directly or indirectly, either:
          (i) outstanding voting securities representing more than fifty percent
          (50%) of the combined outstanding voting power of the surviving Entity in such
          merger, consolidation or similar transaction; or (ii) more than fifty
          percent (50%) of the combined outstanding voting power of the parent of the
          surviving Entity in such merger, consolidation or similar transaction;  

        
            (b)              the
stockholders of the Company approve or the Board approves a plan of complete
          dissolution or liquidation of the Company, or a complete dissolution or
          liquidation of the Company shall otherwise occur; or  

        
            (c)              there
is consummated a sale of all or substantially all of the consolidated           assets of
the Company and its Subsidiaries, other than a sale of all or           substantially all
of the consolidated assets of the Company and its Subsidiaries           to an Entity
more than fifty percent (50%) of the combined voting power of the           voting
securities of which Entity is Owned by stockholders of the Company in
          substantially the same proportion as their Ownership of the Company immediately
          prior to such sale.  

        The
term “Corporate Transaction” shall not include a sale of assets, merger or other
transaction effected exclusively for the purpose of changing the domicile of the Company. 

        “Director”
means a member of the Board. 

        “Disability”
means the inability of a person, in the opinion of a qualified physician acceptable to the
Company, to perform the duties of that person’s position with the Company or an
Affiliate because of the sickness or injury of the person. 

        “Employee”
means any person employed by the Company or an Affiliate; provided, however,
that service as a Director, or payment of a fee by the Company for services which the
Board determines in its sole discretion are services as a Director or as a member of the
Board of Directors of an Affiliate, shall not be sufficient to constitute
“employment” by the Company or such Affiliate. 

        “Entity”
means any corporation (including any non-profit corporation), general partnership, limited
partnership, limited liability partnership, joint venture, estate, trust, company
(including any limited liability company or joint stock company), firm or other
enterprise, association, organization or entity. 

        “Fair
Market Value” means, as of any date, the value of the Common Stock
determined by the Board in good faith and in a manner consistent with CCR Title 10. 

        “Incentive
Stock Option” means an option to purchase shares of Common Stock that
is intended to qualify as an “incentive stock option” within the meaning of
Section 422 of the Code and the regulations promulgated thereunder. 

        
“Nonstatutory Stock Option” means an option to purchase shares of
Common Stock that is not intended to qualify as an Incentive Stock Option. 

        “Officer”
means any person designated by the Company as an officer. 

        “Option”
means an Incentive Stock Option or a Nonstatutory Stock Option granted pursuant to the
Plan. 

        A
Person shall be deemed to “Own”, to have
“Owned”, to be the “Owner”
of, or to have acquired “Ownership” of securities if such Person, directly or
indirectly, through any contract, arrangement, understanding, relationship or otherwise,
has or shares voting power, which includes the power to vote or to direct the voting, with
respect to such securities. 

        “Participant”
means a person to whom a Stock Award is granted pursuant to the Plan or, if applicable,
such other person who holds an outstanding Stock Award. 

        “Person”
means any natural person or Entity. 

        “Plan”
means this IT&E International Group 2005 Equity Incentive Plan. 

        
“Restricted Stock Award” means an award of shares of Common
Stock, which is granted pursuant to the terms and conditions of Section 9 of the
Plan. 

        “Securities
Act” means the Securities Act of 1933, as amended. 

        
“Stock Award” means any right granted under the Plan, including
an Option, a Restricted Stock Award or a stock bonus. 

        “Stock
Award Agreement” means a written agreement between the Company and a
Participant evidencing the terms and conditions of an individual Stock Award. Each Stock
Award Agreement shall be subject to the terms and conditions of the Plan. 

        
“Ten Percent Stockholder” means a person who Owns (or is deemed
to Own pursuant to Section 424(d) of the Code) stock possessing more than ten
percent (10%) of the total combined voting power of all classes of stock of the Company or
of any of its Affiliates.

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