Document:

EXHIBIT
4.13

     

     

    EXECUTION
VERSION

    
      

      Dated 13 June
2008

      

      

      

      

      

       

      
 

      

      

      THE
ROYAL BANK OF SCOTLAND GROUP PLC

      

      and

      

      WILLOW
BIDCO LIMITED

       

       

       

       

       

      
 

      

      SHARE
PURCHASE AGREEMENT

      relating to the
sale and purchase of the entire

      issued share
capital of RoboScot (31) Limited

       

      

      

      
 

      

      Linklaters

       

      Linklaters
LLP

      One Silk
Street

      London EC2Y
8HQ

      
 

      Telephone (44-20)
7456 2000

      Facsimile (44-20)
7456 2222

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      Table
of Contents

       

      
        
          	
                  Contents

                	
                  Page

                
	 	 	 
	
                  1

                	
                  Interpretation

                	
                  1

                
	 
      	 
      	 
      
	
                  2

                	
                  Agreement to
      Sell the Shares

                	
                  10

                
	 
      	 
      	 
      
	
                  3

                	
                  Consideration

                	
                  11

                
	 
      	 
      	 
      
	
                  4

                	
                  Unconditional
      Shares

                	
                  11

                
	 
      	 
      	 
      
	
                  5

                	
                  Condition

                	
                  12

                
	 
      	 
      	 
      
	
                  6

                	
                  Pre-Completion

                	
                  13

                
	 
      	 
      	 
      
	
                  7

                	
                  Leakage

                	
                  14

                
	 
      	 
      	 
      
	
                  8

                	
                  Completion

                	
                  14

                
	 
      	 
      	 
      
	
                  9

                	
                  Seller’s
      Warranties

                	
                  15

                
	 
      	 
      	 
      
	
                  10

                	
                  Purchaser’s
      Warranties

                	
                  15

                
	 
      	 
      	 
      
	
                  11

                	
                  Purchaser Tax
      Warranties and Undertaking

                	
                  16

                
	 
      	 
      	 
      
	
                  12

                	
                  RBS
      Scheme

                	
                  17

                
	 
      	 
      	 
      
	
                  13

                	
                  Taxation
      Arrangements

                	
                  17

                
	 
      	 
      	 
      
	
                  14

                	
                  Limitations

                	
                  17

                
	 
      	 
      	 
      
	
                  15

                	
                  Non-Solicitation

                	
                  18

                
	 
      	 
      	 
      
	
                  16

                	
                  Confidentiality
      and Announcements

                	
                  18

                
	 
      	 
      	 
      
	
                  17

                	
                  Further
      Assurance

                	
                  19

                
	 
      	 
      	 
      
	
                  18

                	
                  Continuing
      Obligations and Assignment

                	
                  20

                
	 
      	 
      	 
      
	
                  19

                	
                  Access

                	
                  21

                
	 
      	 
      	 
      
	
                  20

                	
                  Costs

                	
                  22

                
	 
      	 
      	 
      
	
                  21

                	
                  Notices

                	
                  22

                
	 
      	 
      	 
      
	
                  22

                	
                  Severability
      and Suspension of Restrictions

                	
                  23

                
	 
      	 
      	 
      
	
                  23

                	
                  Entire
      Agreement and Variation

                	
                  23

                

        

      

      
         

      

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

         

        
          
            	24	
                    General
      Provisions

                  	
                    23

                  
	 	 
      	 
      
	25	
                    Grossing-up of Indemnity
      Payments, VAT

                  	
                    24

                  
	 	 
      	 
      
	26	
                    Governing Law
      and Jurisdiction

                  	
                    25

                  
	 	 
      	 
      

          

          
            	
                    Schedule 1
      The Company

                  	
                    27

                  
	 
      	 
      
	
                    Schedule 2
      Shares

                  	
                    28

                  
	 
      	 
      
	
                    Schedule 3
      Completion Arrangements

                  	
                    29

                  
	 
      	 
      
	
                    Schedule 4
      Seller’s Warranties

                  	
                    33

                  
	 
      	 
      
	
                    Schedule 5
      Purchaser’s Warranties

                  	
                    36

                  
	 
      	 
      
	
                    Schedule 6
      Notices

                  	
                    40

                  
	 
      	 
      
	
                    Schedule 7
      Conduct of Business before Completion

                  	
                    41

                  
	 
      	 
      
	
                    Schedule
      8  Tax Arrangements

                  	
                    43

                  
	 
      	 
      
	
                    Schedule 9
      Competition Amount

                  	
                    50

                  
	 
      	 
      
	
                    Schedule 10
      Additional EWS Consideration and Additional Pendolinos
      Consideration

                  	
                    55

                  
	 
      	 
      
	
                    Schedule
      11  RBS Hedging Arrangements

                  	
                    60

                  
	 
      	 
      
	
                    Schedule 12
      Agreed Form Documents

                  	
                    62

                  
	 
      	 
      
	
                    Schedule 13
      Restructuring Documents

                  	
                    63

                  
	 
      	 
      
	
                    Schedule 14
      EU Business

                  	
                    75

                  
	 
      	 
      
	
                    Schedule 15
      Deferred Amounts

                  	
                    77

                  
	 
      	 
      
	
                    AGREED FORM
      VOTING POWER OF ATTORNEY

                  	
                    82

                  

          

        

        
           

        

      

      
        
          
          

        

        
          iii

          
            

          

        

        
          
          

        

         

      

      Share
Purchase Agreement

      

      This Agreement is made on 13
June 2008

      

      Between:

       

      
        
          	
                  (1)

                	
                  THE ROYAL BANK
      OF SCOTLAND GROUP PLC, a
      company incorporated in Scotland whose
      registered office is at 36 St Andrew Square, Edinburgh, Midlothian EH2 1AF
      (the “Seller”);
      and

                

        

      

       

      
        	
                (2)

              	
                WILLOW BIDCO
      LIMITED, a company
      incorporated in Jersey whose registered office is at First Floor, 27
      Hill Street, St Helier, Jersey, JE2 4UA, Channel Islands (the “Purchaser”).

              

      

       

       

      Whereas:

       

      
        	
                (A)

              	
                The Seller
      has agreed to sell the Shares and to assume the obligations imposed on the
      Seller under this Agreement.

              

      

       

      
        	
                (B)

              	
                The Purchaser
      has agreed to purchase the Shares and to assume the obligations imposed on
      the Purchaser under this Agreement.

              

      

       

      
        	
                (C)

              	
                On the date
      of this Agreement, the Purchaser has delivered to the Seller the duly
      executed Commitment Letters and the parties have executed the Option Deed
      and the Tax Deed.

              

      

      

      It is agreed as
follows:

      

      
        
          	
                  1

                	
                  Interpretation

                

        

      

      

      In this Agreement,
unless the context otherwise requires, the provisions in this Clause 1
apply:

      

      
        
          	
                  1.1

                	
                  Definitions

                

        

      

      

      “Accounts” means the accounts
of the Group for the financial period ending 31 December 2007 as set out in
sections 6.4.002, 6.4.003, 6.9 and 6.10 of the Data Room; “Additional EWS Consideration”
has the meaning set out in Schedule 10;

       

      “Additional Pendolinos
Consideration” has the meaning set out in Schedule 10;

      

      “Anti-Trust Confidentiality
Agreement” means the agreement dated 26 November 2007 between Babcock
& Brown Limited and the Seller;

      

      “Assigned Rights” has the
meaning set out in Clause 18.3;

       

      “ATGL” means Angel Trains Group
Limited;

       

      “ATGL Shares” has the meaning
set out in Schedule 4;

      

      “ATGL SPA” means the share
purchase agreement between the Designated Purchaser and ATGL for the sale and
purchase of the ATI Shares;

      

      “ATI” means Angel Trains
International Limited;

       

      “ATI Shares” has the meaning
set out in Schedule 4;

       

      “ATL” means Angel Trains
Limited;

      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      “Bridge Loan Agreement” means
the bridge loan agreement in the agreed form between the Purchaser and the
Designated Purchaser;

      

      “Business Day” means any day
(except any Saturday or Sunday) on which banks in the City of London are open
for business;

      

      “Commission” means the European
Commission;

      

      “Commitment Letters” means the
commitment letters dated on the date hereof provided by each of AMP Capital
Investors (Luxembourg No 1) S.àr.l., BBEIF General Partner Limited, Deutsche
Bank AG, London Branch, Farm Plan Pty Limited as trustee of Prime Super, STC
Funds Nominee Pty Ltd as trustee of Gabriel Unit Trust and Statewide
Superannuation Pty Ltd as trustee of Statewide Superannuation
Trust;

      

      “Company” means RoboScot (31)
Limited, details of which are set out in Schedule 1;

      

      “Competition Amount” has the
meaning set out in Schedule 9;

      

      “Completion” means the
completion of the sale and purchase of the Conditional Shares pursuant to Clause
8;

      

      “Completion Amount” has the
meaning set out in Clause 3;

      

      “Completion Date” means the
date falling 15 Business Days after the satisfaction of the
Condition;

      

      “Condition” means the
conditions set out in Clause 5.1;

      

      “Conditional Shares” means the
shares in the Company set out in Column C of Schedule 2;

      

      “Data Room” means the
electronic data room prepared by IntraLinks in relation to the sale of the
Company;

      

      “Debt Repayment Amount” means
the amount required to repay all principal, accrued interest and fees (in
accordance with the terms of the relevant financing documents) on the debt
listed in the Debt Repayment Statement;

      

      “Debt Repayment Statement”
means a notice, in the form set out in Part C of Schedule 3, issued in
accordance with Clause 8.1 setting out the financing documents to be repaid at
Completion resulting from inter alia the implementation
of the debt restructuring described in the steps paper prepared for the
Transaction, the Seller’s determination of the Debt Repayment Amount and the
details to which bank account the Debt Repayment Amount should be
transferred;

      

      “Deferred Amounts” has the
meaning set out in Schedule 15;

      

      “Designated Purchaser” means
Willow Lux Bidco Sarl;

      

      “Disclosure Letter” means the
disclosure letter from Haydn Abbott and George Lynn to the Purchaser dated 9
June 2008;

      

      “Disclosure Regulations” means
The Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) Regulations
2006 (SI 2006/1543);

      

      “Disposal” has the meaning
given to it in Clause 18.3

      

      “Encumbrance” means any claim,
charge, mortgage, lien, option, equity, power of sale, hypothecation, retention
of title, right of pre-emption, right of first refusal or other third
party

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      

      right or security
interest of any kind or an agreement, arrangement or obligation to create any of
the foregoing;

      

      “Equipment” has the meaning
given to it in the Tax Deed;

      

      “Equity” means:

       

      
        
          	
                  
                  

                	
                  (i)

                	
                  the monies
      advanced by the UK Investor Group to the Purchaser Group in connection
      with the acquisition of the Company (and includes for the avoidance of
      doubt the Shareholder Loans);
and

                

        

      

       

      
        	
                
                

              	
                (ii)

              	
                the monies
      advanced to the Purchaser under the Bridge Loan
  Agreement;

              

      

      

      “EU Business”
means:

      

      
        	
                 
      

              	
                (i)

              	
                all of the
      rolling stock listed in Schedule 14 (including all spare parts and
      technical documents) together with all leases and maintenance contracts
      related to these assets;

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                all business
      of the EU Group; and

              

      

      

      
        	
                 
      

              	
                (iii)

              	
                all other
      assets and rights of the Group which exclusively or predominantly relate
      to either the assets listed in Schedule 14, the business of the EU Group
      or the Group's business in Europe (other than the United
      Kingdom);

              

      

      

      “EU Group” means ATI, Angel
Trains Cargo (Locomotives) Limited, Angel Trains Svenge AB, Angel Trains
Switzerland AG, Angel Trains Europa GmbH, Angel Trains Polska sp.z.o.o., Angel
Trains Italia Srl, Angel Trains Cargo (Locomotives) NV, Angel Trains Cargo
(Locomotives) GmbH, Locomotion Capital (UK) Limited and Angel Trains Espana SA
and their assets and “EU Group
Member” shall be construed accordingly;

      

      “EU Group Remedy” has the
meaning set out in Clause 5;

      

      “EU Order Book Assets” means,
collectively, each item of the rolling stock assets defined as “Equipment” in
the Framework Agreement;

      

      “Framework Agreement” means the
agreement between RBS Asset Finance Europe Limited and ATI in the agreed
terms;

      

      “FCO” means the German Federal
Cartel Office;

      

      “Group” means the Company and
each of its subsidiary undertakings and “Group Member”/”Group Company” shall be
construed accordingly;

      

      “Group Payment Arrangement”
means an arrangement entered into pursuant to Section 36 Finance Act
1998;

      

      “Group Tax Relief” has the
meaning given to that term in Schedule 8;

      

      “GWB” has the meaning set out
in Clause 5;

      

      “Intercreditor Agreement” means
the intercreditor agreement in the agreed form between, among others, the
Seller, the Purchaser and Willow Topco Limited;

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      “Interest-Bearing Loans” means
the Junior Debt and the Senior Debt;

      

      “Junior Debt” means all loans
advanced under the junior facility agreement dated 9 June 2008 between, inter
alios, Willow Holdco 1 Limited and The Royal Bank of Scotland as facility
agent;

      

      “Leakage” means:

      

      
        	
                 
      

              	
                (a)

              	
                any dividend
      or distribution declared, paid or made by any Group Member to the Seller’s
      Group;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                any payments
      made (including management fees) or any assets transferred (including
      pursuant to a Group Tax Relief) by any Group Member to the Seller’s Group,
      or any liabilities assumed, indemnified or incurred by any Group Member
      for the benefit of the Seller’s Group including, without limitation,
      pursuant to Group Payment Arrangements, VAT Group arrangements, Group Tax
      Relief or any other Tax matter;

              

      

      

      
        	
                 
      

              	
                (c)

              	
                any payments
      made or agreed to be made by any Group Member to the Seller’s Group in
      respect of any share capital or other securities of any Group Member being
      issued, redeemed, purchased or repaid, or any other return of
      capital;

              

      

      

      
        	
                 
      

              	
                (d)

              	
                the waiver by
      any Group Member of any amount owed to that Group Member by the Seller’s
      Group;

              

      

      

      
        	
                 
      

              	
                (e)

              	
                any
      Transaction Costs being paid by any member of the Group;
    and

              

      

      

      
        	
                 
      

              	
                (f)

              	
                the making or
      entry into by any member of the Group of any agreement or arrangement to
      give effect to any of the matters referred to in (a) to (e)
      above,

              

      

      

      but does not
include any Permitted Leakage;

       

      “Leakage Schedule” means the
agreed form leakage schedule;

       

      “LIBOR” means the London inter
bank offered rate;

       

      “Locked Box Date” means 31
December 2007;

       

      “Management Warranty Deed”
means the warranty deed dated 9 June 2008;

       

      “Nominated Company” has the
meaning set out in the definition of Permitted Leakage;

       

      “Notice” has the meaning set
out in Clause 21;

      

      “Notifiable Arrangements” means
arrangements which satisfy the conditions of section 306 Finance Act 2004, or
would do if:

      

      
        
          	
                  
                  

                	
                  (i)

                	
                  the
      arrangements fell within Description 1 or Description 2 as set out in Part
      3 of the Disclosure Regulations (the “Confidentiality
      Provisions”) (or any equivalent provision in any consolidating or
      replacement legislation or statutory instrument);
  and

                

        

      

      

      
        
          
            	
                    
                    

                  	
                    (ii)

                  	
                    the reason
      such arrangements do not fall within the Confidentiality Provisions is
      that:

                  

          

        

      

      

      
        
          	
                  
                  

                	
                  (a)

                	
                  the user or
      promoter (as defined) believes that HMRC and/or other promoters, as the
      case may be, are already aware of the element (or substantially the same
      element) of the arrangements (or
similar

                

        

      

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      arrangements) that
gives rise to the tax advantage expected to be obtained under the arrangements;
or

      

      
        
          	
                  
                  

                	
                  (b)

                	
                  that the user
      or promoter has no wish to facilitate repeated or continued use of that
      element, or substantially the same element, in the
  future.

                

        

      

      

      “On Sale Deed” means the sale
and purchase deed dated the date hereof between the Purchaser and the Designated
Purchaser;

      

      “Option Deed” means the option
deed in relation to the purchase of the Unconditional Shares between the Company
and the Purchaser dated the date hereof;

      

      “Order Book Agreements”
means

      

      
        	
                 
      

              	
                (i)

              	
                the order
      book agreement dated on or about the date of the Framework Agreement
      between Angel Trains Switzerland AG, ATL, Angel Trains Cargo GmbH, Angel
      Trains Europa GmbH and RBS Asset Finance Europe
  Limited;

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                the order
      book agreement dated on or about the date of the Framework Agreement
      between Angel Trains Cargo (Locomotives) N.V., ATL and RBS Asset Finance
      Europe Limited; and

              

      

      

      
        	
                 
      

              	
                (iii)

              	
                the order
      book agreement dated on or about the date of the Framework Agreement
      between Angel Trains Espana S.A.U., ATL and Bordon Inversiones 2007
      S.L,

              

      

      

      and each, an “Order Book
Agreement”;

      

      “Pension Scheme” means the ATL
Shared Cost Section of the Railways Scheme, the Royal Bank of Scotland Group
Pension Fund, the Royal Bank of Scotland Retirement Savings Plan and any pension
scheme established or operated by ATGL outside of the United
Kingdom;

      

      “Permitted Leakage” means any
of the following:

       

      
        	
                
                

              	
                (a)

              	
                any Leakage
      by any Group Member to the Seller’s Group in respect
  of:

              

      

      

      
        	
                 

              	
                (i)

              	
                costs for
      management services provided by the Seller’s Group to the Group in respect
      of matters similar to or the same as those set out in Part A of the
      Leakage Schedule (including, inter alia, costs for
      general administrative, legal and secretarial, tax, insurance and human
      resources support) such costs not exceeding £150,000 per annum pro rated
      on a time elapsed basis;

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                costs
      reasonably and properly incurred by the Seller’s Group on behalf of the
      Group in the ordinary course of the Group’s business and recharged to the
      Group, including those set out in Part B of the Leakage Schedule which
      relate to, inter
      alia, remuneration of the Group’s employees, PAYE settlement,
      shared offices, vehicle hire and insurance premiums;
  and

              

      

      

      
        	
                 
      

              	
                (iii)

              	
                the
      transactions arising out of the Restructuring Documents (including the
      amounts paid in respect of the early redemption of the West Coast Train
      Finance Bonds such amounts being £1,354,268.22 in respect of the early
      instruction fees payable to the holders of the West Coast Train Finance
      Bonds in relation to the extraordinary resolutions passed on 15 January
      2008 and 11 March 2008 by such holders and £4,116,123.90 in respect of the
      amounts payable to the holders of the West Coast Trains
      Finance

              

      

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      Bonds upon
redemption in addition to the principal outstanding and accrued interest on such
notes);

      

      
        	
                 
      

              	
                (b)

              	
                amounts paid
      or agreed to be paid, or waivers or releases made or agreed to be made,
      assets transferred to or liabilities assumed, indemnified or incurred in
      each case by any Group Member to the Seller’s Group in respect
      of:

              

      

      

      
        	
                 
      

              	
                (i)

              	
                payments of
      interest, principal and other fees and termination payments in respect of
      the RBS Debt and payments of interest in respect of the RBS Hedging
      Arrangements;

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                any other
      debt or hedging arrangements entered into in accordance with Clause
      6;

              

      

      

      
        
          	
                  
                  

                	
                  (iii)

                	
                  subject to
      the Purchaser’s consent, any new hedging arrangements between the Seller’s
      Group and the Group or amendments to or terminations of the RBS Hedging
      Arrangements, entered into on or shortly before the date of this Agreement
      conditional upon Completion;

                

        

      

      

      
        
          
            	
                    
                    

                  	
                    (iv)

                  	
                    termination
      payments in respect of the termination, on or before the date of this
      Agreement, of the swaps listed in Schedule 11 with reference numbers
      D18895586, D19009912, D15526604, D18757324 and the FX trades listed in
      Schedule 11; and

                  

          

        

      

      

      
        
          	
                  
                  

                	
                  (v)

                	
                  the Group’s
      routine banking and treasury or other related arrangements arising in the
      ordinary course of business of the Seller’s Group and the ordinary course
      of business of the Group (but excluding for the avoidance of doubt those
      falling within the scope of sub-paragraph (i)
  above);

                

        

      

      

      
        
          	
                  
                  

                	
                  (c)

                	
                  the payment
      of fair value consideration by the Group Members for the surrender of any
      tax losses by way of Group Tax Relief by the Seller's Group to the Group
      Members in order to reduce the liability to Tax of the Group in respect of
      the financial period ending on the Locked Box Date to the extent either
      that such payment was provided for or otherwise taken into account in the
      Accounts or the amount of the payment does not exceed the amount by which
      the relevant Tax liability is reduced or, if eliminated, the amount of the
      relevant Tax liability;

                

        

      

      

      
        	
                 
      

              	
                (d)

              	
                any amounts
      which are paid (or otherwise settled) or agreed to be paid (or otherwise
      settled) by any Group Member to the RBS VAT group representative for the
      Seller’s Group by way of a recharge of VAT by or on behalf of such entity
      on the Group Company in relation to supplies (such term to include self
      supplies) made or deemed to have been made by the Group Company less any
      deductible input tax as is properly attributable to such supplies (other
      than to the extent such input tax has already been taken into account in
      calculating the amount of the recharge payment) and the deeming provisions
      of section 43(1) VATA shall be disregarded for the purpose of determining
      what supplies have been made or deemed to have been made by or to any
      person;

              

      

      

      
        	
                 
      

              	
                (e)

              	
                any amounts
      which are paid (or are otherwise settled) or agreed to be paid (or
      otherwise settled) by any Group Member to the relevant Seller’s Group
      member (the “Nominated
      Company”) in respect of corporation tax which is properly
      attributable to that Group Member and is to be or has been discharged by
      the Nominated Company on behalf of the Group Member under the Group
      Payment Arrangement (i) in respect of amounts which represent corporation
      tax arising in

              

      

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      

      

      respect of the
financial period ending on the Locked Box Date, to the extent that such amounts
were provided for or otherwise taken into account in the Accounts, and (ii) in
respect of amounts which represent corporation tax arising in respect of the
financial period starting on 1 January 2008, to the extent that such corporation
tax arises from the ordinary course of business of the Group (which, for the
avoidance of doubt, does not include any corporation tax arising as a result of
Schedule 10, Finance Act 2006 or the Restructuring Transactions);
and

      

      
        	
                
                

              	
                (f)

              	
                Transaction Costs not exceeding
      £1,930,000.

              

      

      

      “Press Release” means the
document in the agreed form regarding public statements to be made regarding the
transaction contemplated by this Agreement;

      

      “Process Letter” means the
process letter entered into between the Seller and the Purchaser dated the date
hereof;

      

      “Purchaser’s Group”
means:

      

      
        	
                 
      

              	
                (a)

              	
                the
      Purchaser, the Designated Purchaser and each of the shareholders listed in
      paragraphs 6.1 and 6.2 of Part 1 to Schedule
5;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                any parent
      undertakings of each of the entities listed in (a) above;
    and

              

      

      

      
        	
                 
      

              	
                (c)

              	
                any
      subsidiary undertakings of each of the entities listed in (a)
      above,

              

      

      

      provided that where
that term is used in the Purchaser Tax Warranties or the Purchaser Tax
Undertaking (and in any definition of a term used therein) it shall mean the
Purchaser and each of the parent undertakings of the Purchaser (but excluding
for the avoidance of doubt the UK Investor Group) only and “member of the Purchaser’s
Group” shall be construed accordingly;

      

      “Purchaser’s Tax Warranties”
means those warranties given by the Purchaser set out in Part 2 to Schedule 5 to
this Agreement;

      

      “Purchaser Tax Undertaking”
means the undertaking given by the Purchaser set out in Clause 11.2 of this
Agreement;

      

      “Purchaser’s Warranties” means
those warranties given by the Purchaser set out in Part 1 to Schedule
5;

      

      “RBS Debt” means those
financing documents contained in the following Data Room sections: 4.1.7,
4.1.7(A), 4.2.1, 4.2.5, 4.2.9, 4.2.25 and 4.2.27 and the financing documents
that form a part of the Restructuring Documents;

      

      “RBS Hedging Arrangements”
means those hedging, derivative and other financial instruments listed in
Schedule 11 hereto;

      

      “RBS Scheme” means the Royal
Bank of Scotland Group Pension Fund;

      

      “Regulation” has the meaning
set out in Clause 5;

      

      “Relief” has the meaning given
to that term in Schedule 8;

      

      “Restructuring Documents” means
the executed documents listed in Schedule 13;

      

      “Restructuring Transactions”
means the transactions contemplated under the Restructuring
Documents;

      

      “Reviewable Merger” has the
meaning set out in Clause 5;

      

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      “Section 75 Debt” means the
amount of any liability arising on or after the Completion Date which the
Purchaser or any Group Member contributes to the RBS Scheme under section 75 of
the Pensions Act 1995 as a result of Completion;

      

      “Seller Claim” means any claim
against the Seller in respect of any breach of any Transaction Document other
than the Tax Deed;

      

      “Seller’s Group” means the
Seller, any parent undertaking of the Seller and any subsidiary undertakings of
the Seller or any of its parent undertakings from time to time but excluding the
Group and “member of the
Seller’s Group” shall be construed accordingly;

      

      “Seller’s Warranties” means
those warranties given by the Seller set out in Schedule 4;

      

      “Separation” has the meaning
set out in Clause 5;

      

      “Senior Debt” means all loans
advanced under the senior term and revolving facilities agreement dated 9 June
2008 between, inter alios, the Purchaser and The Royal Bank of Scotland, as
facility agent;

      

      “Senior Employee” means any
person employed by the Group earning in excess of £75,000 per annum (as
determined by reference to gross base salary only);

      

      “Shares” means the Conditional
Shares and the Unconditional Shares;

      

      “Shareholder Loans” mean the
non-interest bearing loan notes issued to the UK Investor Group and the
non-interest bearing intra-group loans between members of the Purchaser
Group;

      

      “Tax or Taxation” means all
forms of taxation whether direct or indirect and whether levied by reference to
income, profits, gains, net wealth, asset values, turnover, added value or other
reference and statutory, governmental, state, provincial, local governmental or
municipal impositions, duties, contributions, rates and levies (including,
without limitation, social security contributions and any other payroll taxes),
whenever and wherever imposed (whether imposed by way of a withholding or
deduction for or on account of tax or otherwise) and in respect of any person
and all penalties, charges, costs and interest relating thereto;

      

      “Tax Deduction” means a
deduction or withholding for or on account of Tax from a payment under this
Agreement;

      

      “Tax Deed” means the tax
document entered into on the date hereof between the Seller and the
Purchaser;

      

      “Topco Guarantee” means the
guarantee in the agreed form between the Seller, the Purchaser and Willow Topco
Limited;

      

      “Total Acquisition Financing”
means the aggregate of:

      

      
        	
                
                

              	
                (a)

              	
                all amounts
      payable by the Purchaser to the Seller under Clause 3 of this Agreement,
      including the maximum Competition Amount and the maximum Additional EWS
      Consideration and Additional Pendolinos
  Consideration;

              

      

      

      
        	
                
                

              	
                (b)

              	
                the Debt
      Repayment Amount; and

              

      

      

      
        	
                 
      

              	
                (c)

              	
                all
      transaction costs and other costs associated with the acquisition by the
      Purchaser of the Company from the
Seller;

              

      

      

      “Transfer” shall have the
meaning set out at paragraph 1.2 of Part A to Schedule 3;

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      “Transaction” has the meaning
set out in Clause 5;

      

      “Transaction Costs” means any
adviser costs or expenses of any member of the Seller’s Group or any member of
the Group relating directly to the sale of the Shares and any sale bonuses to
employees of the Group which are to be paid upon or in connection with the
completion of the sale of the Shares;

      

      “Transaction Documents” means
this Agreement, the Tax Deed, the Management Warranty Deed, the Commitment
Letters, the Option Deed, the Framework Agreement, the Process Letter, the Order
Book Agreements and any other document entered into or to be entered into
pursuant to this Agreement, provided that the Framework Agreement and Order Book
Agreements shall be excluded from the definition of Transaction Documents
insofar as it is used in Clauses 16, 17, 18, 21, 22, 23 and/or 24;

      

      “UK Group” means the Group
other than the EU Group and “UK
Group Member” shall be construed accordingly;

      

      “UK Investor Group” means AMP
Capital Investors (Luxembourg No 1) S.àr.l., BBEIF General Partner Limited, Farm
Plan Pty Limited as trustee of Prime Super, STC Funds Nominee Pty Ltd as trustee
of Gabriel Unit Trust and Statewide Superannuation Pty Ltd as trustee of
Statewide Superannuation Trust;

      

      “UK Sale and Leaseback
Documents” means the Restructuring Documents designated as UK Sale and
Leaseback Documents;

      

      “UK Sale and Leaseback
Transactions” means the transactions contemplated by the UK Sale and
Leaseback Documents;

      

      “Unconditional Consideration”
has the meaning given to it in Clause 3.2;

      

      “Unconditional Shares” means
the shares in the Company set out in column D of Schedule 2;

      

      “West Coast Train Finance
Bonds” means the £480,000,000 six per cent asset backed notes due in
2015, which were issued on 8 September 1999 to institutional investors by West
Coast Train Finance plc, as set out in section 4.1.7 of the Data
Room;

      

      “VATA” means the Value Added
Tax Act 1994;

      

      “VAT Group” means those
companies that are treated as members of a group for value added tax purposes
under sections 43A to 43D VATA;

      

      “Zero Coupon Bonds” means the
£306,000,000 unsecured convertible redeemable loan stock issued pursuant to the
subscription agreement dated 19 December 1997, as amended from time to time
including on 11 June 2008 to remove the conversion feature, between the Seller
and Roboscot (31) Limited; and

      

      “Zero Coupon Bonds Amount”
means £306,000,000 plus interest accrued on that sum from 18 December 2007 up to
and including the date of Completion at a rate of 7.139% per annum compounded
monthly.

      

      
        	
                1.2

              	
                Modification etc. of
      Statutes

              

      

      

      References to a
statute or statutory provision include:

      

      
        	
                 
      

              	
                1.2.1

              	
                that statute or provision (as
      from time to time modified, re-enacted or consolidated) whether before or
      after the date of this
Agreement;

              

      

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      
      

      
        	
                 
      

              	
                1.2.2

              	
                any past statute or statutory
      provision (as from time to time modified, re-enacted or consolidated)
      which that statute or provision has directly or indirectly replaced;
      and

              

      

      

      
        	
                 
      

              	
                1.2.3

              	
                any subordinate legislation made
      from time to time under that statute or statutory
      provision,

              

      

      

      except to the
extent that any statute, statutory provision or subordinate legislation made or
enacted after the date of this Agreement would create or increase a liability or
obligation of the Seller under a Transaction Document.

      

      
        	
                1.3

              	
                Singular, Plural,
      Gender

              

      

      

      References to one
gender include all genders and references to the singular include the plural and
vice versa.

      

      
        	
                1.4

              	
                References to Persons and
      Companies

              

      

      

      References
to:

      

      
        	
                 
      

              	
                1.4.1

              	
                a person include any company,
      partnership or unincorporated association (whether or not having separate
      legal personality); and

              

      

      

      
        	
                 
      

              	
                1.4.2

              	
                a company shall include any
      company, corporation or any body corporate, wherever
      incorporated.

              

      

      

      
        	
                1.5

              	
                References to parent and
      subsidiary undertakings

              

      

      

      The words “parent undertaking” and “subsidiary undertaking” shall
have the same meaning in this Agreement as their respective definitions in the
Companies Act 1985.

      

      
        	
                1.6

              	
                Schedules
    etc.

              

      

      

      References to this
Agreement shall include any Recitals and Schedules to it and references to
Clauses and Schedules are to Clauses of and Schedules to this Agreement.
References to paragraphs and Parts are to paragraphs and Parts of the
Schedules.

      

      
        	
                1.7

              	
                Headings

              

      

      

      Headings shall be
ignored in interpreting this Agreement.

      

      
        	
                1.8

              	
                Information

              

      

      

      References to
books, records or other information mean books, records or other information in
any form including paper, electronically stored data, magnetic media, film and
microfilm.

      

      
        	
                1.9

              	
                Time

              

      

      

      References to time
of the day are to London time.

      

      
        	
                1.10

              	
                Agreed
  Form

              

      

      

      References to
documents in agreed form are to documents the contents and form of which have
been agreed between or on behalf of the Seller and the Purchaser.

      

      
        	
                2

              	
                Agreement to Sell the
      Shares

              

      

      

      
        	
                2.1

              	
                On and subject to the terms of
      this Agreement, the Seller agrees to sell and the Purchaser agrees to
      purchase the Shares and the Zero Coupon
  Bonds.

              

      

      

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      
        	
                2.2

              	
                The Shares and the Zero Coupon
      Bonds shall be sold by the Seller with full title guarantee free from
      Encumbrances and together with all rights and advantages attaching to them
      as at the date of this Agreement in respect of the Unconditional Shares
      and on Completion in respect of the Conditional Shares (including in each
      case, without limitation, the right to receive all dividends,
      distributions or interest payments made or paid on or after the relevant
      date of sale).

              

      

      

      
        	
                3

              	
                Consideration

              

      

      

      
        	
                3.1

              	
                The Purchaser shall pay in cash
      as consideration for the Conditional Shares an amount equal to the
      aggregate of:

              

      

      

      
        	
                 
      

              	
                (i)

              	
                £702,500,000
      (the “Completion
      Amount”) which shall be paid or satisfied on Completion in
      accordance with Schedule 3;

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                the Deferred
      Amounts which shall be paid in accordance with the provisions of Schedule
      15;

              

      

      

      
        	
                 
      

              	
                (iii)

              	
                the
      Competition Amount which shall be paid subject to and in accordance with
      the provisions of Schedule 9;

              

      

      

      
        	
                 
      

              	
                (iv)

              	
                the
      Additional EWS Consideration which shall be paid subject to and in
      accordance with the provisions of Schedule 10;
  and

              

      

      

      
        	
                 
      

              	
                (v)

              	
                the
      Additional Pendolinos Consideration which shall be paid subject to and in
      accordance with the provisions of Schedule
10.

              

      

      

      
        	
                3.2

              	
                The Purchaser shall pay in cash
      as consideration for the Unconditional Shares an amount equal to
      £1,000,000 which shall be paid or satisfied on the date hereof in
      accordance with Clause 4 (the “Unconditional
      Consideration”).

              

      

      

      
        	
                3.3

              	
                The Purchaser shall pay in cash
      as consideration for the Zero Coupon Bonds the Zero Coupon Bonds Amount
      which shall be paid or satisfied on Completion in accordance with Schedule
      3.

              

      

      

      
        	
                4

              	
                Unconditional
      Shares

              

      

      

      
        	
                4.1

              	
                The sale and purchase of the
      Unconditional Shares shall take place on the date hereof at the offices of
      Linklaters LLP at One Silk Street, London, EC2Y 8HQ upon the signing of
      this Agreement whereupon:

              

      

      

      
        	
                 
      

              	
                4.1.1

              	
                the Seller shall deliver or make
      available to the Purchaser duly executed transfers of the Unconditional
      Shares in favour of the Purchaser or as the Purchaser may direct
      accompanied by the relative share certificates (or an express indemnity in
      a form satisfactory to the Purchaser in the case of any certificate found
      to be missing); and

              

      

      

      
        	
                 
      

              	
                4.1.2

              	
                the Purchaser shall pay the
      Unconditional Consideration to the Seller by telegraphic transfer for
      same-day value to a bank account nominated by the
      Seller.

              

      

      

      
        	
                4.2

              	
                The Purchaser undertakes to the
      Seller that prior to Completion it shall not mortgage, charge or otherwise
      dispose of the whole or any part of its interest in, or grant any option
      or other rights over, or agree to do any of the same in respect of, the
      Unconditional Shares without the Seller’s prior written
      consent.

              

      

      

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

         

      

    

    
      
        	
                 
      

              	
                4.3

              	
                The Seller undertakes to procure
      that if an option is exercised under the Option Deed the Company is in a
      position to complete, and does comply with its obligations to complete,
      the purchase of the Unconditional Shares in accordance with the provisions
      of the Option Deed and in compliance with the relevant provisions of the
      Companies Act 1985 and the Companies Act 2006 (as
      applicable).

              

      

      

      
        	
                5

              	
                Condition

              

      

      

      
        	
                5.1

              	
                Condition
      Precedent

              

      

      

      In so far as the
agreement to sell and purchase the Conditional Shares contained in Clause 2 (the
“Transaction”), the
Disposal, the Framework Agreement or the transactions contemplated by the On
Sale Deed (the “Separation”), (together the
“Reviewable Merger”) have to be notified
pursuant to Section 39 of the German Act against Restraints of Competition (Gesetz gegen
Wettbewerbsbeschränkungen, “GWB”), consummation of the
Transaction is conditional upon the occurrence of one, or in the case of a part
review by the Commission, a combination of the following events for the
Reviewable Merger:

      

      
        	
                 
      

              	
                5.1.1

              	
                during the initial investigation
      (Vorprüfverfahren) the FCO has notified the
      notifying parties that the merger control procedure for the Reviewable
      Merger has been terminated, either because the requirements for a
      prohibition of the merger as laid down in section 36(1) GWB are not
      fulfilled or because the Reviewable Merger does not constitute a
      notifiable transaction; or

              

      

      

      
        	
                 
      

              	
                5.1.2

              	
                the waiting period of one month
      from submission of a complete notification to the FCO has expired without
      the notifying parties having been notified by the FCO pursuant to section
      40(1) GWB that it intends to enter into an in-depth investigation
      (Hauptprüfverfahren) of the Reviewable Merger;
      or

              

      

      

      
        	
                 
      

              	
                5.1.3

              	
                the FCO has issued a decision in
      accordance with section 40(2) GWB, including in conjunction with section
      40(3) GWB (clearance subject to conditions and/or obligations), to the
      effect that the Reviewable Merger has been cleared, and, in the event of a
      clearance subject to a condition precedent (aufschiebende
      Bedingung) such
      condition has been fulfilled;
or

              

      

      

      
        	
                 
      

              	
                5.1.4

              	
                having notified the notifying
      parties that it will enter into an in-depth investigation (Hauptprüfverfahren), the waiting period of four
      months from submission of a complete notification to the FCO, or an
      extended waiting period (if agreed upon with the notifying parties), has
      expired pursuant to section 40(2) GWB without the FCO having issued a
      prohibition order against the Reviewable Merger;
    and/or

              

      

      

      
        	
                 
      

              	
                5.1.5

              	
                to the extent that the Reviewable
      Merger is to be examined by the Commission as a result of a decision under
      Article 22(3) of Council Regulation (EC) 139/2004 (as amended) (the
      “Regulation”) following the request of one
      or more Member States under Article 22(1) of the Regulation, the
      Commission taking a decision (or being deemed to have taken a decision) of
      equivalent effect to those set out above in Clauses 5.1.1 to 5.1.4
      regarding the Reviewable Merger or regarding, as applicable, the part of
      the Reviewable Merger that is reviewed by the Commission, (the
      “Condition”).

              

      

      

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      
        	
                6

              	
                Pre-Completion

              

      

       

      
        	
                6.1

              	
                Subject to Clause 6.2 the
      Seller:

              

      

      

      
        	
                 
      

              	
                6.1.1

              	
                undertakes to the Purchaser that
      from 29 April 2008 to the date of this Agreement, save as disclosed by the
      Disclosure Letter, no Group Member has undertaken any act or matter
      specified in Schedule 7 without the prior written consent of the
      Purchaser;

              

      

      

      
        	
                 
      

              	
                6.1.2

              	
                undertakes to procure that from
      the date of this Agreement to Completion no Group Member will undertake
      any act or course of conduct which is outside the ordinary course of the
      business of such Group Member without the prior consent of the Purchaser
      (such consent not to be unreasonably withheld or delayed) and that each
      member of the Group shall carry on the business of such Group Member in
      the ordinary course; and

              

      

      

      
        	
                 
      

              	
                6.1.3

              	
                undertakes to procure that from
      the date of this Agreement until Completion no Group Member shall
      undertake any of the acts or matters specified in Schedule 7 without the
      prior written consent of the Purchaser (such consent not to be
      unreasonably withheld or
delayed).

              

      

      

      
        	
                6.2

              	
                Clause 6.1 does not apply in
      respect of and shall not operate so as to restrict or
      prevent:

              

      

      

      
        	
                 
      

              	
                6.2.1

              	
                any matter reasonably undertaken
      by any Group Member to preserve the safe operation of the Group’s assets
      or in an emergency or disaster situation with the intention of minimising
      any adverse effect thereof (and of which the Purchaser will be promptly
      notified);

              

      

      

      
        	
                 
      

              	
                6.2.2

              	
                the completion or performance of
      actions which are reasonably necessary to discharge any obligations
      undertaken pursuant to any legal or regulatory obligation or pursuant to
      any contract, arrangement, licence or consent entered into by or relating
      to any Group Member prior to the date of this Agreement or after the date
      of this Agreement entered into (or, in the case of a licence or consent,
      issued or granted) in the ordinary course of business, and in compliance
      with the requirements of Clause 6.1.3, with a person who is not a Group
      Member;

              

      

      

      
        	
                 
      

              	
                6.2.3

              	
                any matter provided for in the
      Transaction Documents or the Restructuring
    Documents;

              

      

      

      
        	
                 
      

              	
                6.2.4

              	
                the amendment by ATL and Angel
      Locomotive Leasing Limited of their accounting reference date to 31 March
      2008;

              

      

      

      
        	
                 
      

              	
                6.2.5

              	
                any Permitted Leakage (including
      any draw downs in relation to any payments made under paragraph b(iv) of
      the definition of Permitted
Leakage);

              

      

      

      
        	
                 
      

              	
                6.2.6

              	
                any matter undertaken at the
      written request or with the written consent of the Purchaser;
      or

              

      

      

      
        	
                 
      

              	
                6.2.7

              	
                any arrangements to rollover,
      continue or extend the RBS Debt on identical
  terms.

              

      

      

      
        	
                6.3

              	
                The Seller undertakes that
      between the date of this Agreement and
  Completion:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                it will not
      amend the margin on the RBS Debt and the RBS Hedging Arrangements without
      the Purchaser’s prior consent;

              

      

      

      
        	
                
                

              	
                (b)

              	
                it will not
      enter into any hedging arrangements with the Group without the Purchaser’s
      prior consent; and

              

      

      

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      

      
        	
                 
      

              	
                (c)

              	
                that if the
      Seller's Group enters into new debt arrangements with the Group (excluding
      any arrangements as a result of the operation of Clause 6.2.6) between the
      date of this Agreement and Completion in compliance with the requirements
      of Clause 6.1.3 that, subject to such new debt being in the ordinary
      course of routine banking business for the Seller’s Group, any such debt
      arrangements will be at no higher margin than 25bps per annum and the
      terms of such new debt arrangements will not be any more onerous than
      those found in the RBS Debt and for the avoidance of doubt no arrangement
      or other fees or costs of any nature will be charged or chargeable by the
      Seller's Group in relation to such new debt arrangements or the repayment
      thereof and repayment of interest and principal thereof will result in the
      Group having no further obligations under such
  arrangement.

              

      

      

      
        	
                6.4

              	
                The liability of the Seller in
      respect of any claim by the Purchaser in respect of a breach of Clause 6.1
      shall be subject to the limitations in Clause
  14.

              

      

      

      7 Leakage

      

      
        	
                7.1

              	
                Subject to Completion occurring
      and Clause 7.2, in the event of any Leakage to the Seller’s Group between
      the Locked Box Date and Completion, the Seller (or such member of the
      Seller’s Group as directed by the Seller) shall on demand by the Purchaser
      on or after Completion pay to the Purchaser an amount in cash equal to
      such Leakage by way of reduction in the Completion
      Amount.

              

      

      

      
        	
                7.2

              	
                The undertaking set out in Clause
      7.1 does not apply in respect
of:

              

      

      

      
        	
                 
      

              	
                7.2.1

              	
                any matter provided for in the
      Transaction Documents;

              

      

      

      
        	
                 
      

              	
                7.2.2

              	
                any matter undertaken at the
      written request of the Purchaser;
or

              

      

      

      
        	
                 
      

              	
                7.2.3

              	
                the discharge of any liability to
      the extent reflected in the
Accounts.

              

      

      

      8 Completion

      

      
        	
                8.1

              	
                No later than three Business Days
      after notice of the satisfaction of the Condition the Seller shall issue
      the Debt Repayment Statement to the
  Purchaser.

              

      

      

      
        	
                8.2

              	
                Subject to Clause 5, Completion
      shall take place at the offices of Linklaters LLP at One Silk Street,
      London, EC2Y 8HQ at 10 a.m. or such other time as may be agreed between
      the parties on the Completion
Date.

              

      

      

      
        	
                8.3

              	
                On Completion, the Seller and the
      Purchaser shall comply with their obligations set out in Part A of
      Schedule 3 and Part B of Schedule 3,
  respectively.

              

      

      

      
        	
                8.4

              	
                If the respective material
      obligations of the Seller or the Purchaser under Clause 8.3 and Schedule 3
      are not complied with on the Completion Date, the Purchaser or the Seller,
      as the case may be, may:

              

      

      

      
        	
                 
      

              	
                8.4.1

              	
                defer Completion for a period of
      up to 20 Business Days (so that the provisions of this Clause 8 shall
      apply to Completion as so
deferred);

              

      

      

      
        	
                 
      

              	
                8.4.2

              	
                proceed to Completion as far as
      practicable (without limiting its rights under this Agreement);
      or

              

      

      

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                8.4.3

              	
                subject to Completion having
      first been deferred for a period of at least three Business Days under
      Clause 8.4.1 and the parties having used reasonable endeavours to effect
      Completion during that period, terminate this Agreement by notice in
      writing to the other party.

              

      

      

      
        	
                8.5

              	
                If this Agreement is terminated
      in accordance with Clause 8.4.3 (and, subject to Clause 8.6, without
      limiting any party’s right to claim damages), all obligations of the
      parties under this Agreement shall end (except for those relating to the
      provisions of Clauses 1, 16, 20, 21, 22, 23, 24, 25 and 26) but (for the
      avoidance of doubt) all rights and liabilities of the parties which have
      accrued before termination shall continue to
  exist.

              

      

      

      
        	
                8.6

              	
                To the extent that Completion is
      terminated in accordance with Clause 8.4 as a result of a breach of the
      Purchaser’s Warranty 3(iii) then the Purchaser shall have no claim for
      damages in connection with such
  termination.

              

      

      

      
        	
                8.7

              	
                The Purchaser shall procure that
      as soon as practicable after Completion, and in any event within one month
      thereof, the Company changes its name so that it does not contain the name
      of RoboScot and shall provide the Seller with appropriate evidence of such
      name change.

              

      

      

      
        	
                8.8

              	
                The Purchaser shall procure that
      within five Business Days of Completion
  that:

              

      

      

      
        	
                 
      

              	
                8.8.1

              	
                the requisite filings are made to
      register the resignations of Gerhard Müller and Martin Dürst as directors
      of Angel Trains Switzerland AG in the relevant commercial register;
      and

              

      

      

      
        	
                 
      

              	
                8.8.2

              	
                the requisite filings are made to
      register the resignation of Achim Klüber as Managing Director of Angel
      Trains Europa GmbH and Angel Trains Cargo (Locomotives) GmbH in the
      relevant commercial
register.

              

      

      

      
        	
                9

              	
                Seller’s
      Warranties

              

      

      

      
        	
                9.1

              	
                The Seller warrants and
      undertakes to the Purchaser that as at the date of this Agreement and each
      day up to and including Completion, each of the Seller’s Warranties is and
      shall be true and accurate.

              

      

      

      
        	
                9.2

              	
                Unless expressly provided in this
      Agreement, each of the Seller’s Warranties shall be separate and
      independent and shall not be limited by reference to anything in this
      Agreement or the Schedules.

              

      

      

      
        	
                9.3

              	
                The sole remedy of the Purchaser
      for any breach of the Seller’s Warranties shall be an action for damages
      and the Purchaser shall not be entitled to rescind this
      Agreement.

              

      

      

      
        	
                9.4

              	
                Any payment by the Seller in
      respect of a breach by it of any of the Seller’s Warranties shall (and
      shall be deemed to) reduce the consideration paid to the Seller for the
      Conditional Shares under this Agreement by a matching
      amount.

              

      

      

      
        	
                10

              	
                Purchaser’s
      Warranties

              

      

      

      
        	
                10.1

              	
                The Purchaser warrants and
      undertakes to the Seller that as at the date of this Agreement and each
      day up to and including Completion, each of the Purchaser’s Warranties is
      and shall be true and
accurate.

              

      

      

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      
      

      
        	
                10.2

              	
                Unless expressly provided in this
      Agreement, each of the Purchaser’s Warranties and the Purchaser Tax
      Warranties shall be separate and independent and shall not be limited by
      reference to anything in this Agreement or the
      Schedules.

              

      

      

      
        	
                10.3

              	
                The sole remedy of the Seller for
      any breach of the Purchaser’s Warranties shall be an action for damages
      and the Seller shall not be entitled to rescind this
      Agreement.

              

      

      

      
        	
                10.4

              	
                Any payment by the Purchaser in
      respect of a breach by it of any of the Purchaser’s Warranties or the
      Purchaser Tax Warranties shall (and shall be deemed to) increase the
      consideration paid to the Seller for the Conditional Shares under this
      Agreement by a matching
amount.

              

      

      

      
        	
                11

              	
                Purchaser Tax Warranties and
      Undertaking

              

      

      

      
        	
                11.1

              	
                The Purchaser warrants and
      represents to the Seller that as at the date of this Agreement and on each
      day up to and including Completion each of the Purchaser Tax Warranties is
      and shall be true and
accurate.

              

      

      

      
        	
                11.2

              	
                The Purchaser undertakes to
      procure that no UK Group Member and no member of the Purchaser Group will
      enter into, for a period of three years after Completion, any transactions
      or arrangements which would have the result of permanently avoiding or
      achieving a material further deferral of the payment of all or a material
      part of the tax, in aggregate, that is reflected in the UK Group’s
      deferred tax provision as at Completion (a “Tax Avoidance
      Transaction”),
      PROVIDED THAT, for the avoidance of doubt, none of the following shall be
      regarded as a Tax Avoidance Transaction for the purposes of this Clause
      11.2:

              

      

      

      
        	
                 
      

              	
                (i)

              	
                any
      transaction or arrangement entered into in the ordinary course of business
      of the UK Group as carried on by such companies prior to Completion;
      or

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                any
      transaction or arrangement entered into pursuant to a legally binding
      commitment created by the Seller or a UK Group Member prior to Completion;
      or

              

      

      

      
        	
                 
      

              	
                (iii)

              	
                any
      transaction or arrangement entered into for the sole or main purpose of
      restructuring the UK Group’s arrangements with EWS in relation to the EWS
      Fleet (in each case as defined in Schedule 10 to this Agreement) in a
      manner contemplated by Paragraph 1 of Schedule 10 of this Agreement;
      or

              

      

      

      
        	
                 
      

              	
                (iv)

              	
                the incurring
      of expenditure on rolling stock or other plant and machinery for use in
      the UK Group’s business in the ordinary course of business as carried on
      by the UK Group at Completion (and, for the avoidance of doubt the amount
      of the expenditure shall not cause it to be regarded as being outside the
      ordinary course for these purposes);
or

              

      

      

      
        	
                 
      

              	
                (v)

              	
                the
      refinancing (whether by way of increased third party debt or otherwise) of
      the external financing (including the Equity) of the UK Group and/or the
      Purchaser Group, provided that such refinancing does not form part of any
      arrangements which are Notifiable
Arrangements.

              

      

      

      
        	
                11.3

              	
                The sole remedy for a breach of a
      Purchaser Tax Warranty or for the Purchaser’s failure to comply with the
      Purchaser Tax Undertaking (each being a “Tax
      Breach”) shall be an
      action for damages against the Purchaser and the Seller shall not be
      entitled to rescind this
Agreement.

              

      

      

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      
        	
                11.4

              	
                In the event of a Tax Breach the
      Purchaser shall be liable for damages equal to all Losses which are
      suffered or incurred by the Seller as a result to the Tax Breach, whether
      such Losses are or would be regarded reasonably foreseeable or
      not.

              

      

      

      
        	
                11.5

              	
                For the purpose of this Clause 11
      “Losses” means all losses, liabilities,
      damages, costs, charges and/or expenses, including legal expenses, and
      Taxation and shall include, without limitation, any payment made by the
      Seller under the Tax Deed (including where a liability under the Tax Deed
      has been settled by way of the surrender of Group Tax Relief or is
      discharged in accordance with the Group Payment Arrangement in which case
      the payment shall be taken to be the tax value of the Group Tax Relief
      surrendered or the amount discharged as the case may be) provided that in
      calculating the quantum of any Losses arising by virtue of the settlement
      of any claim under the Tax Deed account should be taken of amounts which
      have already actually been paid by the Purchaser under the Schedule to the
      Tax Deed and the Purchaser’s obligation to pay future amounts under that
      Schedule.

              

      

      

      
        	
                11.6

              	
                The Seller shall have no right to
      set off or netting in respect of any payments due by it under the Tax Deed
      against any payments due from the Purchaser to the Seller in respect of a
      Tax Breach.

              

      

      

      
        	
                11.7

              	
                For the avoidance of doubt,
      references in the Purchaser Tax Warranties and the Purchaser Tax
      Undertaking to the “ordinary
      course of business”
      of the UK Group companies carried on prior to Completion shall not be
      regarded as including the transactions entered into pursuant to the UK
      Sale and Leaseback
Documents.

              

      

      

      
        	
                12

              	
                RBS
  Scheme

              

      

      

      
        	
                12.1

              	
                The Seller and the Purchaser will
      take all necessary steps to ensure that ATL ceases to participate in the
      RBS Scheme at the Completion
Date.

              

      

      

      
        	
                12.2

              	
                The Seller undertakes to the
      Purchaser to pay to the Purchaser on demand a sum equal to 72 per cent. of
      the Section 75 Debt.

              

      

      

      
        	
                12.3

              	
                For the avoidance of doubt,
      Clauses 24.3 and 25.3 shall apply to any amounts payable by the Seller
      under this Clause 12.

              

      

      

      
        	
                13

              	
                Taxation
      Arrangements

              

      

      

      The provisions of
Schedule 8, other than Clause 3.1 and 3.2 of that Schedule, and the Tax Deed
shall apply in respect of the tax affairs of Group Members from Completion.
Clause 3.1 and 3.2 of Schedule 8 shall apply from the date of this
Agreement.

      

      
        	
                14

              	
                Limitations

              

      

      

      
        	
                14.1

              	
                The aggregate liability of the
      Seller for Seller Claims shall not
  exceed:

              

      

      

      
        	
                 
      

              	
                14.1.1

              	
                in respect of the Seller’s
      Warranty set out at paragraph 5.1 of Schedule 4 of this Agreement, the
      aggregate of the Completion Amount, the Zero Coupon Bond Amount, the
      Unconditional Consideration and, to the extent that such amounts have
      become payable prior to the resolution of the Seller Claim, the Deferred
      Amounts, the Competition Amount, the Additional EWS Consideration and the
      Additional Pendolinos Consideration;
and

              

      

      

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

         

      

      
        	
                 
      

              	
                14.1.2

              	
                in respect of all other Seller
      Claims against the Seller and any claim under clauses 2.1.2 and 2.1.3 of
      the Tax Deed, £200,000,000 (two hundred million
      pounds),

              

      

      

      save that any
amount paid by the Seller in respect of the Seller Claims referred to in Clause
14.1.2 shall reduce the maximum amount that can be paid in respect of the Seller
Claims referred to in Clause 14.1.1 by the amount so paid, and
vice-versa.

      

      
        	
                14.2

              	
                The Purchaser agrees that no
      Seller Claim shall be brought and that the Seller shall not be liable for
      any Seller Claim brought after the second year anniversary of this
      Agreement.

              

      

      

      
        	
                14.3

              	
                None of the limitations contained
      in this Clause 14 shall apply to any Seller Claim which directly arises as
      a result of fraud by the
Seller.

              

      

      

      
        	
                15

              	
                Non-Solicitation

              

      

      

      The Seller’s Group
shall not (whether alone, jointly with another, directly or indirectly), for 1
year after Completion, offer to employ or seek to entice away from any Group
Member, or conclude any contract for services with, any person who was employed
by any Group Member on the date of this Agreement. This undertaking is given to
the Purchaser. The Seller acknowledges that it is an entirely independent
restriction and is no greater than is reasonably necessary to protect the
interests of the Purchaser’s Group. The placing of an advertisement of a post
available to a member of the public generally and the recruitment or employment
of a person through an employment agency shall not constitute a breach of this
Clause 15 provided that no member of the Seller’s Group encourages or advises
such agency to approach any person who was employed by any Group Member on the
date of this Agreement.

      

      
        	
                16

              	
                Confidentiality
      and Announcements

              

      

      

      
        	
                16.1

              	
                Neither party shall, and the
      Purchaser shall procure that the Purchaser’s Group shall not, and the
      Seller shall procure that the Seller’s Group shall not, make or issue any
      announcement or circular in connection with the existence or the subject
      matter of any Transaction Document unless it is consistent with the Press
      Release or has the prior written approval of the other party. This shall
      not affect any announcement or circular required by law or any regulatory
      body or the rules of any recognised stock exchange on which the shares of
      a party or any member of either the Seller’s Group or the Purchaser’s
      Group are listed, but where there is an obligation to make an announcement
      or issue a circular, the relevant party (acting on its own account or on
      behalf of the Seller’s Group or the Purchaser’s Group, as the case may be)
      shall consult with the other party insofar as is reasonably practicable
      before complying with such an
obligation.

              

      

      

      
        	
                16.2

              	
                Subject to Clauses 16.1, 16.4 and
      16.5, each party shall, and the Purchaser shall procure that the
      Purchaser’s Group shall, and the Seller shall procure that the Seller’s
      Group shall, treat as strictly confidential and not disclose or use any
      information:

              

      

      

      
        	
                 
      

              	
                16.2.1

              	
                relating to the negotiations of,
      the existence of and the provisions of any Transaction Document;
      and

              

      

      

      
        	
                 
      

              	
                16.2.2

              	
                relating to the business,
      financial or other affairs (including, without limitation, future plans
      and targets) of the other party which it has received or obtained as a
      result of entering into or negotiating any Transaction
      Document.

              

      

      

      
        	
                16.3

              	
                The Seller agrees not to
      terminate, amend or waive any and all rights it, or any other member of
      the Seller’s Group, may have pursuant to any confidentiality or
      non-disclosure

              

      

      

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      agreement entered
into with any other parties in connection with the transactions contemplated by
this Agreement without the consent of the Purchaser.

      

      
        	
                16.4

              	
                Clauses 16.1 and 16.2 shall not
      prohibit disclosure or use of any information if and to the
      extent:

              

      

      

      
        	
                
                

              	
                16.4.1

              	
                the disclosure or use is required
      by law, any regulatory body or any recognised stock exchange on which the
      shares of a party or any member of either the Seller’s Group or the
      Purchaser’s Group are listed and the disclosure to any rating agency is
      required in accordance with this Clause
  16.4.1;

              

      

      

      
        	
                 
      

              	
                16.4.2

              	
                the disclosure or use is required
      to vest the full benefit of any Transaction Document in a
      party;

              

      

      

      
        	
                 
      

              	
                16.4.3

              	
                the disclosure or use is required
      for the purpose of any judicial proceedings arising out of any Transaction
      Document or the disclosure is made to a Tax authority in connection with
      the Tax affairs of the disclosing
party;

              

      

      

      
        	
                 
      

              	
                16.4.4

              	
                the disclosure or use is made in
      confidence to a third party transacting or proposing to transact with the
      Seller, the Seller’s Group, the Purchaser or the Purchaser’s Group, as the
      case may be, but only to the extent such information is reasonably
      relevant to such third
party;

              

      

      

      
        	
                 
      

              	
                16.4.5

              	
                the disclosure is made to
      professional advisers of the disclosing party who are bound to the
      disclosing party by a duty of confidence which applies to any information
      so disclosed;

              

      

      

      
        	
                 
      

              	
                16.4.6

              	
                the information is or becomes
      publicly available (other than by breach of any Transaction
      Document);

              

      

      

      
        	
                 
      

              	
                16.4.7

              	
                in the case of Clause 16.2, the
      non-disclosing party has given prior written approval to the disclosure or
      use; or

              

      

      

      
        	
                 
      

              	
                16.4.8

              	
                the information is independently
      developed after Completion,

              

      

      

      provided that prior
to disclosure or use of any information pursuant to Clause 16.4.1 the disclosing
party shall promptly notify the non-disclosing parties of such requirement with
a view to providing the non-disclosing parties with the opportunity to contest
such disclosure or use or otherwise to agree the timing and content of such
disclosure or use.

      

      
        	
                16.5

              	
                Notwithstanding any provision of
      this Agreement to the contrary, the obligations of confidentiality in this
      Agreement do not extend to the U.S. federal or state tax structure or the
      U.S. federal or state tax treatment of the Transaction. If any U.S.
      federal or state tax analyses or materials are provided to any party, such
      party is free to disclose any such analyses or materials without
      limitation.

              

      

      

      
        	
                17

              	
                Further
      Assurance

              

      

      

      
        	
                17.1

              	
                The Seller shall execute and
      deliver all such documents and take all such actions as the Purchaser may
      from time to time reasonably require in order to give effect to the
      provisions of any Transaction
Document.

              

      

      

      
        	
                17.2

              	
                The Purchaser shall execute and
      deliver all such documents and take all such actions as the Seller may
      from time to time reasonably require in order to give effect to the
      provisions of any Transaction
Document.

              

      

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    
      

      
        	
                18

              	
                Continuing Obligations and
      Assignment

              

      

      

      
        	
                18.1

              	
                Subject to the provisions of
      Clauses 9, 10 and 16, each of the obligations, warranties and undertakings
      accepted or given by the Seller or the Purchaser or any of them under this
      Agreement shall continue in full force and effect notwithstanding
      Completion taking place.

              

      

      

      
        	
                18.2

              	
                No party may assign or transfer
      any of its rights or obligations under any Transaction Document, save
      that:

              

      

      

      
        	
                 
      

              	
                18.2.1

              	
                the Purchaser may assign (in
      whole or in part) the benefit of any Transaction Document to the
      Designated Purchaser pursuant to and in accordance with the provisions of
      Clause 18.3 below;

              

      

      

      
        	
                 
      

              	
                18.2.2

              	
                the Purchaser may assign (in
      whole or in part) the benefit of any Transaction Document to any other
      member of the Purchaser’s Group, provided that if such assignee ceases to
      be a member of the Purchaser’s Group, all benefits relating to such
      Transaction Document assigned to such assignee shall be deemed
      automatically by that fact to be re-assigned to the Purchaser immediately
      before such cessation; and

              

      

      

      
        	
                 
      

              	
                18.2.3

              	
                the Purchaser, any member of the
      Purchaser’s Group and/or the Designated Purchaser may charge and/or assign
      the rights and benefits provided to each of them under any Transaction
      Document to any bank or financial institution or other person by way of
      security for the purposes of or in connection with the financing or
      refinancing (whether in whole or in
  part):

              

      

      

      
        	
                 
      

              	
                (i)

              	
                any financial
      indebtedness of Willow Holdco 1 Limited and its subsidiaries or Willow Lux
      Holdco S.àr.l and its subsidiaries;
or

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                by the
      Purchaser and/or the Designated Purchaser
of:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                the
      acquisition of the Conditional Shares and/or the ATI Shares;
      or

              

      

      

      
        	
                 
      

              	
                (b)

              	
                the
      refinancing of any RBS Debt; or

              

      

      

      
        	
                 
      

              	
                (c)

              	
                the Debt
      Repayment Amount,

              

      

      

      provided that the
Seller shall be under no greater obligation or liability thereby than if such
assignment had never occurred and that the amount of loss or damage recoverable
by the assignee shall be calculated as if that person had been originally named
as the Purchaser in this Agreement (and, in particular, shall not exceed the sum
which would, but for such assignment, have been recoverable hereunder by the
Purchaser in respect of the relevant fact, matter or circumstance).

      

      
        	
                18.3

              	
                In respect of Disposals (as
      defined below):

              

      

      

      
        	
                 
      

              	
                18.3.1

              	
                The Seller acknowledges that,
      following or concurrently with
  Completion:

              

      

      

      
        	
                 
      

              	
                (i)

              	
                the Purchaser
      may procure the disposal of the EU Business (a “Disposal”) to the
      Designated Purchaser pursuant to the On-Sale Deed (a copy of which has
      been provided by the Purchaser to the Seller);
  and

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                subject
      always to the provisions of Clause 18.3.2 below, the parties intend that,
      commencing from the date of this Agreement, the Designated Purchaser will
      share the benefit (directly or indirectly) of the protections afforded to
      the Purchaser under the Transaction Documents in relation to the EU
      Business in accordance with the On Sale
Deed.

              

      

      

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

      

      
        	
                 
      

              	
                18.3.2

              	
                The Seller and the Purchaser
      agree that:

              

      

      

      
        	
                
                

              	
                (i)

              	
                in connection
      with a Disposal, the Purchaser may assign the whole or any part of the
      benefit of the Transaction Documents either entirely or jointly with
      itself to the Designated Purchaser and/or may provide “back-to-back”
      protection to the Designated Purchaser, and, without derogating from the
      generality of the above, the Seller specifically agrees that the
      assignment to the Designated Purchaser of the Purchaser’s rights under the
      Transaction Documents, includes, but is not limited to, the benefit of
      Clauses 6 (Pre-Completion), 7 (Leakage), 15 (Non-Solicitation), 16
      (Confidentiality and Announcements), 17.1 (Further Assurance), 18
      (Continuing Obligations and Assignment), 19.2 (Access), 24.9 (General
      Provisions), 25 (Grossing-up of Indemnity Payments, VAT) and Schedules 7
      (Conduct of Business Before Completion) and 8 (Tax Arrangements) of this
      Agreement, the Management Warranty Deed and clause 5.5.4 of the Process
      Letter (to the extent they relate to the EU Business or the EU Group and
      subject to the limitations set out in the Transaction Documents) (the
      “Assigned
      Rights”);

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                the
      Purchaser’s ability to demonstrate a loss to the Seller by virtue of any
      “back-to-back” claim from the Designated Purchaser will not be restricted
      solely by virtue of the fact that the Purchaser’s obligation to make
      actual payment to the Designated Purchaser in respect of such claim shall
      be delayed until such time as recovery is made from the
      Seller,

              

      

      

      provided that (i)
the Seller shall be under no greater obligation or liability thereby than if
such assignment had never occurred, and (ii) the Purchaser shall not be able to
make any claim against the Seller under the Transaction Documents in respect of
the EU Group or the EU Business after such assignment (other than on behalf of
the Designated Purchaser) nor the Designated Purchaser make any claim against
the Seller under the Transaction Documents in respect of the non-EU Group or
non-EU Business (other than on behalf of the Purchaser).

      

      
        	
                 
      

              	
                18.3.3

              	
                For the avoidance of doubt, any
      claim against the Seller by the Designated Purchaser (to whom the whole or
      any part of the benefit of the Transaction Documents has been assigned
      pursuant to Clause 18.3.1) shall be made in accordance with, and shall be
      subject to, the terms of the Transaction Documents (including, but not
      limited to, the limitations set out in Clause 14 (Limitations)) as if the
      claim had been made by the Purchaser and as if all references to the
      Purchaser in any relevant provisions of this Agreement and the Transaction
      Documents included a reference to the Designated
      Purchaser.

              

      

      

      
        	
                 
      

              	
                18.3.4

              	
                For the avoidance of doubt, the
      Seller agrees that the assignment of rights and benefits under the
      Transactions Documents to the Designated Purchaser in accordance with the
      provisions of this Clause 18.3 shall be in full force and effect from the
      date of this Agreement and no further notification by the Purchaser or the
      Designated Purchaser shall be required for this
      purpose.

              

      

      

      
        	
                19

              	
                Access

              

      

      

      
        	
                19.1

              	
                The Purchaser shall procure that
      the Seller and its duly authorised agents are (on reasonable notice in
      writing to the Purchaser) afforded such reasonable access to
      the

              

      

      

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

      
      

      books, accounts,
personnel, correspondence and documentation of the Group Companies and such
other reasonable assistance as the Seller may reasonably require to enable the
Seller to exercise its rights and discharge its obligations under Schedule 8 of
this Agreement or Clause 5 of the Tax Deed and to comply with its own tax and
accounting obligations (or those of the members of the Seller’s Group) or
facilitate the management or settlement of its own tax and accounting affairs
(or those of the members of the Seller’s Group).

      

      
        	
                19.2

              	
                Subject to Clause 16 and the
      Anti-Trust Confidentiality Agreement, the Seller shall procure that
      pending Completion the members of the Clean Team as defined in Clause 4 of
      the Anti-Trust Confidentiality Agreement are (on reasonable notice in
      writing to the Seller) afforded such access as is reasonably requested to
      (i) the books and records of each Group Member (including all statutory
      books, minute books, leases, contracts, supplier lists and customer lists)
      provided that, save as otherwise agreed between the Seller and the
      Purchaser, such access shall occur at premises reasonably selected by the
      Seller and the taking of copies shall be prohibited, and (ii) the
      management of, each Group
Member.

              

      

      

      
        	
                20

              	
                Costs

              

      

      

      
        	
                20.1

              	
                Except where any Transaction
      Document provides otherwise, each party shall pay its own costs and
      expenses in relation to the negotiation, preparation and implementation of
      any Transaction Document or otherwise incurred in relation to it with a
      view to the sale and purchase
hereunder.

              

      

      

      
        	
                20.2

              	
                The Purchaser shall bear the cost
      of all stamp duty as a result of the transactions contemplated by any
      Transaction Document. The Purchaser shall be responsible for arranging the
      payment of such stamp duty.

              

      

      

      
        	
                21

              	
                Notices

              

      

      

      Any notice or other
communication to be given under any Transaction Document shall be in writing,
shall be deemed to have been duly served on, given to or made in relation to a
party if it is left at, posted by pre-paid airmail/first class/registered post
addressed to, or sent by facsimile transmission to the address of that party set
out in Schedule 6 or such other address as a party may notify to the other in
writing from time to time, and shall if:

      

      
        	
                 
      

              	
                (i)

              	
                personally
      delivered, be deemed to have been received at the time of
      delivery;

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                posted to an
      inland address in the United Kingdom, be deemed to have been received on
      the second Business Day after the date of posting and, if posted to an
      overseas address, be deemed to have been received on the fifth Business
      Day after the date of posting; or

              

      

      

      
        	
                 
      

              	
                (iii)

              	
                sent by
      facsimile transmission, be deemed to have been received upon receipt by
      the sender of a facsimile transmission report (or other appropriate
      evidence) that the facsimile has been transmitted to the
      addressee,

              

      

      

      provided that
where, in the case of delivery by hand or facsimile transmission, delivery or
transmission occurs after 6 p.m. on a Business Day or on a day which is not a
Business Day, receipt shall be deemed to occur at 9 a.m. on the next following
Business Day.

      

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      
        	
                22

              	
                Severability and Suspension of
      Restrictions

              

      

       

      
        	
                22.1

              	
                If any provision of any
      Transaction Document is held to be illegal, invalid or unenforceable in
      whole or in part, the legality, validity and enforceability of the
      remaining provisions of such Transaction Document shall not in any way be
      affected or impaired
thereby.

              

      

      

      
        	
                22.2

              	
                Without prejudice to Clause 22.1,
      if the restriction in Clause 15 shall be held void or unenforceable but
      would be valid if deleted in part or reduced in its application, then that
      restriction shall apply with such modifications as may be necessary to
      make it valid and effective.

              

      

      

      
        	
                23

              	
                Entire Agreement and
      Variation

              

      

      

      
        	
                23.1

              	
                The Transaction Documents contain
      the entire agreement and understanding of the parties and supersede all
      prior agreements, understandings or arrangements between the parties (both
      oral and written) relating to the subject matter of the Transaction
      Documents, provided that any confidentiality agreements entered into
      between the Seller and the Purchaser, its investors and their financiers
      shall continue in force until
Completion.

              

      

      

      
        	
                23.2

              	
                Each of the parties acknowledges
      and agrees that:

              

      

      

      
        	
                 
      

              	
                23.2.1

              	
                it does not enter into the
      Transaction Documents on the basis of and does not rely, and has not
      relied, upon any statement or representation (whether negligent or
      innocent) or warranty or other provision (in any case whether oral,
      written, express or implied) made, given or agreed to by any person
      (whether a party to this Agreement or not) except those expressly set out
      or referred to in the Transaction Documents and that, for the avoidance of
      doubt, they do rely and have relied on the provisions of this Agreement in
      entering into the other Transaction Documents to which they are
      respectively a party;

              

      

      

      
        	
                 
      

              	
                23.2.2

              	
                the only remedy or remedies
      available in respect of any misrepresentation or untrue statement made to
      it in the Transaction Documents shall be a claim for breach of contract
      under the Transaction
Documents;

              

      

      

      
        	
                 
      

              	
                23.2.3

              	
                any statutory or common law
      warranties, representations or conditions that are not expressly set out
      or referred to in the Transaction Documents and might otherwise be implied
      in respect of the sale and purchase of the Shares are hereby expressly
      excluded; and

              

      

      

      
        	
                 
      

              	
                23.2.4

              	
                this Clause 23.2 shall not apply
      to any statement, representation or warranty made fraudulently or to any
      provision of the Transaction Documents which was induced by, or otherwise
      entered into as a result of fraud, for which the remedies shall be all
      those available under the law governing this
    Agreement.

              

      

      

      
        	
                23.3

              	
                No variation, supplement,
      deletion or replacement of or from any Transaction Document or any of the
      terms of any Transaction Document shall be effective unless made in
      writing and signed by or on behalf of each party
      thereto.

              

      

      

      24 General Provisions

      

      
        	
                24.1

              	
                Any waiver of a breach of any of
      the terms of any Transaction Document or of any default thereunder shall
      not be deemed to be a waiver of any subsequent breach or default and shall
      in no way affect the other terms of such Transaction
      Document.

              

      

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

      
        	
                24.2

              	
                Subject to any other provision of
      this Agreement to the contrary, the parties acknowledge and agree that
      damages would not be an adequate remedy for any breach of this Agreement
      and the remedies of injunction, specific performance and other equitable
      relief are appropriate for any threatened or actual breach of any such
      provision and no proof of special damages shall be necessary for the
      enforcement of the rights under this
  Agreement.

              

      

       

      
        	
                24.3

              	
                If any payment is made by the
      Seller to the Purchaser or by the Purchaser to the Seller in respect of
      any claim under this Agreement or under the Tax Deed, the payment shall be
      made by way of adjustment to the consideration paid by the Purchaser for
      the Conditional Shares under this Agreement and the consideration shall be
      deemed to have been reduced or increased (as applicable) by the amount of
      such payment.

              

      

      

      
        	
                24.4

              	
                Except as otherwise expressly
      provided in any Transaction Document or expressly agreed to by the parties
      in writing, no failure to exercise and no delay on the part of any party
      in exercising any right, remedy, power or privilege of that party under
      any Transaction Document and no course of dealing between the parties
      shall be construed or operate as a waiver thereof, nor shall any single or
      partial exercise of any right, remedy, power or privilege preclude any
      other or further exercise thereof or the exercise of any other right,
      remedy, power or privilege.

              

      

      

      
        	
                24.5

              	
                Except as
      otherwise expressly provided in any Transaction Document or expressly
      agreed to by the parties in writing, the rights and remedies provided by
      the Transaction Documents are cumulative and are not exclusive of any
      rights or remedies provided by law.

              

      

      

      
        	
                24.6

              	
                Any person who is not a party to
      this Agreement has no right under the Contracts (Rights of Third Parties)
      Act 1999 to enforce any term of this Agreement, but this does not affect
      any right or remedy of a third party which exists or is available apart
      from that Act.

              

      

      

      
        	
                24.7

              	
                This Agreement may be entered
      into in any number of counterparts, all of which taken together shall
      constitute one and the same
instrument.

              

      

      

      
        	
                24.8

              	
                Each of the parties confirms it
      has received independent legal advice relating to the matters provided for
      the Transaction Documents and agrees that the provisions of the
      Transaction Documents are fair and
  reasonable.

              

      

      

      
        	
                24.9

              	
                Any payment due to be made under
      this Agreement shall carry interest from the due date for payment until
      actual payment at a rate per annum of LIBOR plus two per cent.

              

      

      

      
        	
                25

              	
                Grossing-up of Indemnity
      Payments, VAT

              

      

      

      
        	
                25.1

              	
                Any payment made under this
      Agreement pursuant to an indemnity, compensation or reimbursement
      provision shall be made without any Tax Deduction, unless a Tax Deduction
      is required by law.

              

      

      

      
        	
                25.2

              	
                If a Tax Deduction is required by
      law to be made by a payor, the amount of the payment due from that payor
      shall be increased to an amount which (after making any Tax Deduction)
      leaves an amount equal to the payment which would have been due if no Tax
      Deduction had been required.

              

      

      

      
        	
                25.3

              	
                Where any payment is made under
      this Agreement pursuant to an indemnity, compensation or reimbursement
      provision (including, for the avoidance of doubt, Clause 7 or Clause 12)
      and that sum is subject to a charge to Tax in the hands of the recipient
      (other than Tax attributable to a payment being properly treated as an
      adjustment to the

              

      

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      Completion Amount),
the sum payable shall be increased to such sum as will ensure that after payment
of such Tax (and, other than in relation to a payment under Clause 12, after
giving credit for any tax relief available to the recipient in respect of the
matter giving rise to the payment) the recipient shall be left with a sum equal
to the sum that it would have received in the absence of such a charge to
Tax.

      

      
        	
                25.4

              	
                Where any sum constituting an
      indemnity, compensation or reimbursement to any party to this Agreement
      (the “Party”) is paid to a person other than
      the Party but is treated as taxable in the hands of the Party, the payer
      shall promptly pay to the Party such sum as shall reimburse the Party for
      all Tax suffered by it in respect of the payment (after giving credit for
      any tax relief available to the Party in respect of the matter giving rise
      to the payment).

              

      

      

      
        	
                25.5

              	
                Where under the terms of this
      Agreement one party is liable to indemnify or reimburse another party in
      respect of any costs, charges or expenses, the payment shall include an
      amount equal to any VAT thereon not otherwise recoverable by the other
      party, subject to that party using all reasonable endeavours to recover
      such amount of VAT as may be
practicable.

              

      

      

      
        	
                25.6

              	
                If any payment under this
      Agreement constitutes the consideration for a taxable supply for VAT
      purposes, then in addition to that payment the payer shall pay any VAT
      due.

              

      

      

      
        	
                26

              	
                Governing Law and
      Jurisdiction

              

      

      

      
        	
                26.1

              	
                This Agreement shall be governed
      by, construed and take effect in accordance with the laws of England and
      Wales.

              

      

      

      
        	
                26.2

              	
                The courts of England and Wales
      shall have exclusive jurisdiction to settle any claim, dispute or matter
      of difference which may arise out of or in connection with this Agreement
      (including, without limitation, claims for set off or counterclaim) or the
      legal relationships established by this
  Agreement.

              

      

      

      
        	
                26.3

              	
                The Purchaser hereby irrevocably
      appoints Law Debenture of Fifth Floor 100 Wood Street, London EC2V 7EX as
      its agent to accept service of process in England in any legal action or
      proceedings arising out of this Agreement, service upon whom shall be
      deemed completed whether or not forwarded to or received by the
      Purchaser.

              

      

      

      
        	
                26.4

              	
                The Purchaser agrees to inform
      the Seller in writing of any change of address of such process agent
      within 28 days of such
change.

              

      

      

      
        	
                26.5

              	
                If such process agent ceases to
      be able to act as such or to have an address in England, the Purchaser
      irrevocably agrees to appoint a new process agent in England acceptable to
      the Seller and to deliver to the Seller within 14 days a copy of a written
      acceptance of appointment by the process
  agent.

              

      

      

      
        	
                26.6

              	
                Nothing in this Agreement shall
      affect the right to serve process in any other manner permitted by
      law.

              

      

       

       

      AS WITNESS the hands of the
parties or their duly authorised representatives the day and year first above
written.

      

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

       

      
        	
                SIGNED
      by

                for and on behalf of

                THE ROYAL BANK OF
      SCOTLAND GROUP PLC    

              	
                

              	 /s/
  illegible
	 	 	 
	 	 	 
	
                SIGNED
      by

                for and on
      behalf of

                WILLOW
      BIDCO LIMITED

              	
                

              	 /s/ Simon
  Gray

      

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

      Schedule 1

      The
Company

      
      

       

      
        	
                Name
      of Company:

              	 	
                RoboScot
      (31) Limited

              
	 	 	 
	
                Registered
      number:

              	 	
                SC177821

              
	 	 	 
	
                Registered
      office:

              	 	
                The Gemini
      Building, 24/25 St Andrew Square, Edinburgh EH2
      1AF, Scotland

              
	 	 	 
	
                Date and
      place of incorporation:

              	 	
                4th August 1997,
      Scotland

              
	 	 	 
	
                Issued share
      capital:

              	 	
                £63,000,000
      divided into 50,000 ordinary shares of £1 each, 61,950,000 non-voting
      fixed rate preference shares of £1 each and 1,000,000 non-voting
      participating preference shares of £1 each

              
	 	 	 
	
                Authorised
      share capital:

              	 	
                £369,000,000
      divided into 50,000 ordinary shares of £1 each, 61,950,000 non-voting
      fixed rate preference shares of £1 each and 307,000,000 non-voting
      participating preference shares of £1 each

              
	 	 	 
	
                Registered
      shareholders and shares held:

              	 	
                The Royal
      Bank of Scotland Group plc -50,000 issued ordinary shares; 61,950,000
      non-voting fixed rate preference shares; and 1,000,000 non-voting
      participating preference shares

              
	 	 	 
	
                Directors:

              	 	
                
                  Louise
      Margaret Oddy

                  Haydn Turner
      Abbott

                  George
      Lynn

                

              
	 	 	 
	
                
                  Secretary:

                

              	 	
                Louise
      Margaret Oddy

              
	 	 	 
	
                Accounting
      reference date:

              	 	
                31
      December

              
	 	 	 
	
                Auditors:

              	 	
                Deloitte
      & Touche LLP

              

      

    

    
      

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

      Schedule
2

      Shares

      

      
        
          
            	
                    A

                  	
                    B

                  	
                    C

                  	
                    D

                  	
                    E

                  
	
                    Name
      of

                    Company

                  	
                    Issued
      Share Capital

                  	
                    Shares
      Being Sold
      Subject to the
      Condition

                  	
                    Shares
      Being Sold

                    Unconditionally

                  	
                    Seller

                  
	
                    RoboScot
      (31)
      Limited

                  	
                    £63,000,000
      divided into 50,000
      ordinary shares of £1
      each, 61,950,000
      non-voting fixed rate
      preference shares of £1
      each and 1,000,000
      non-voting participating
      preference
      shares of £1
      each.

                  	
                    50,000
      ordinary shares

                     

                    61,950,000
      non-voting fixed
      rate preference
      shares

                  	
                    1,000,000
      non-voting
      participating preference
      shares

                  	
                    The Royal
      Bank of
      Scotland

                    Group
      plc

                  

          

           

        

      

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

       

      Schedule
3

      Completion
Arrangements

      

      Part
A

      Seller’s
Obligations

      

      
        	
                1

              	
                On Completion, the Seller shall
      deliver to the Purchaser:

              

      

       

      
        	
                1.1

              	
                transfers by the Seller of the
      Conditional Shares duly executed by the Seller in favour of the Purchaser
      or as the Purchaser may direct, accompanied by the relative share
      certificates (or an express indemnity in a form reasonably satisfactory to
      the Purchaser in the case of any certificate found to be
      missing);

              

      

      

      
        	
                1.2

              	
                subject to the Purchaser having
      complied with its obligations under Paragraph 2 of Part B of this Schedule
      3, transfers by ATGL of the ATI Shares duly executed by ATGL in favour of
      the Designated Purchaser or as the Purchaser may direct (the “Transfer”), accompanied by the relative
      share certificates (or an express indemnity in a form reasonably
      satisfactory to the Purchaser in the case of any certificate found to be
      missing);

              

      

      

      
        	
                1.3

              	
                (if the Purchaser so requires) an
      irrevocable power of attorney (in the agreed form) executed by ATGL in
      favour of the Designated Purchaser to enable the Designated Purchaser
      (pending registration of the relevant transfers) to exercise all voting
      and other rights attaching to the ATI Shares held by ATGL and to appoint
      proxies for this purpose;

              

      

      

      
        	
                1.4

              	
                transfers in the agreed form by
      the Seller of the Zero Coupon Bonds duly executed by the Seller in favour
      of the Purchaser or as the Purchaser may
  direct;

              

      

      

      
        	
                1.5

              	
                (if the Purchaser so requires) an
      irrevocable power of attorney (in the agreed form) executed by the Seller
      in favour of the Purchaser to enable the Purchaser (pending registration
      of the relevant transfers) to exercise all voting and other rights
      attaching to the Conditional Shares held by the Seller and to appoint
      proxies for this purpose;

              

      

      

      
        	
                1.6

              	
                the written resignation of Achim
      Klüber as managing director of Angel Trains Europa GmbH and Angel Trains
      Cargo (Locomotives) GmbH to take effect on the date of Completion in the
      agreed form;

              

      

      

      
        	
                1.7

              	
                the written resignations of
      Gerhard Müller and Martin Dürst as directors of Angel Trains Switzerland
      AG to take effect on the date of Completion in the agreed
      form;

              

      

      

      
        	
                1.8

              	
                subject to the Purchaser having
      complied with its obligations under Paragraph 2 of Part B of this Schedule
      3, the ATGL SPA, duly executed by
ATGL;

              

      

      

      
        	
                1.9

              	
                subject to the Purchaser having
      complied with its obligations under Paragraph 2 of Part B of this Schedule
      3, ATGL board minutes authorising ATGL to execute the Transfer and the
      ATGL SPA (as referred to in paragraph 1.2 and paragraph 1.8
      above);

              

      

      

      
        	
                1.10

              	
                the Topco Guarantee duly executed
      by the Seller; and

              

      

      

      
        	
                1.11

              	
                the Intercreditor Agreement duly
      executed by the Seller in its capacity therein as
      “Vendor”.

              

      

      

      
        	
                2

              	
                At Completion, the Seller shall
      procure that persons nominated by the Purchaser shall be appointed to the
      board of the Company.

              

      

      

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

       

      Schedule
3

      Completion
Arrangements

       

      Part
B

      Purchaser’s
Obligations

      

      
        	
                1

              	
                On Completion the Purchaser
      shall:

              

      

      

      
        	
                1.1

              	
                pay the Completion Amount and the
      Zero Coupon Bonds Amount by telegraphic transfer for same-day value to a
      bank account nominated by the
Seller;

              

      

      

      
        	
                1.2

              	
                deliver to the Seller evidence of
      due fulfilment of the
Condition;

              

      

      

      
        	
                1.3

              	
                procure on behalf of the relevant
      Group Companies the payment of the Debt Repayment Amount by telegraphic
      transfer for same-day value to the bank account nominated by the Seller in
      the Debt Repayment
Statement;

              

      

      

      
        	
                1.4

              	
                deliver to the Seller the Topco
      Guarantee duly executed by the Purchaser and Willow Topco
      Limited;

              

      

      

      
        	
                1.5

              	
                deliver to the Seller the
      Intercreditor Agreement duly executed by each of the parties thereto save
      for the Seller in its capacity therein as “Vendor”;
    and

              

      

      

      
        	
                1.6

              	
                deliver to the Seller the Bridge
      Loan Agreement duly executed by each of the parties
      thereto.

              

      

      

      
        	
                2

              	
                Prior to Completion the Purchaser
      shall:

              

      

      

      
        	
                2.1

              	
                provide such information and
      documentation as the directors of the Company and ATGL may require in
      order to whitewash and authorise the Transfer and the ATGL SPA on or
      before Completion; and/or

              

      

      

      
        	
                2.2

              	
                if such directors are unwilling
      or unable to (i) whitewash such arrangements and/or (ii) in the case of
      the directors of ATGL authorise the execution of and/or execute the
      Transfer and ATGL SPA, nominate other individuals to be directors of such
      companies (as applicable) immediately prior to Completion and procure
      that, either together with or in substitution for the existing directors,
      they whitewash and, in the case of ATGL only, approve such arrangements on
      or before Completion and, in the case of ATGL only, execute the Transfer
      and ATGL SPA on Completion (as
  applicable).

              

      

      

      The Seller may
impose reasonable requirements on such individuals and the Purchaser in respect
of their nomination including, respectively, an obligation to resign if
Completion does not occur and an indemnity for any losses that may be suffered
by the Seller as a result of their acts and omissions whilst
directors.

      

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

    

    
      Schedule
3

      Completion
Arrangements

       

      Part
C

      Form
of Debt Repayment Statement

      

       

      
        	
                1

              	
                UK Facilities to be
      Repaid

              

      

      
 

      
        	
                Borrower

              	
                Type

              	
                Principal

              	
                Interest

              	
                Breakage

              	
                Total

              
	 
      	 
      	
                Outstanding

              	
                Payable

              	
                and
      Other

              	 
      
	 
      	 
      	 
      	 
      	
                Costs

              	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
                Angel
      Trains

              	
                10 Year
      Facility from

              	 
      	 
      	 
      	 
      
	
                Limited

              	
                RBS dated
      28/10/04

              	 
      	 
      	 
      	 
      
	 
      	
                 

                Data
      Room Section:

              	 
      	 
      	 
      	 
      
	 
      	
                4.2.1

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
                Angel
      Trains

              	
                1 Year
      Facility from RBS

              	 
      	 
      	 
      	 
      
	
                Limited

              	
                dated
      31/03/04

              	 
      	 
      	 
      	 
      
	 
      	
                 

                Data
      Room Section:

              	 
      	 
      	 
      	 
      
	 
      	
                4.2.1

              	 
      	 
      	 
      	 
      
	 
      	
                 
      

              	 
      	 
      	 
      	 
      
	
                The
      Great

              	
                18mth Bridge
      Facility

              	 
      	 
      	 
      	 
      
	
                Rolling
      Stock

              	
                from RBS
      dated [Sale

              	 
      	 
      	 
      	 
      
	
                Company

              	
                and Leaseback
      Date]

              	 
      	 
      	 
      	 
      
	
                Limited

              	 	 	 	 	 
	
                 

              	
                Agreed
      Form

              	 	 	 	 
	 	
                Restructuring
      Document

              	 	 	 	 
	 	 	 	 	 	 
	
                Angel
      Trains

              	
                18mth Bridge
      Facility

              	 
      	 
      	 
      	 
      
	
                Cargo
      Limited

              	
                from RBS
      dated [Sale

              	 
      	 
      	 
      	 
      
	 
      	
                and Leaseback
      Date]

              	 
      	 
      	 
      	 
      
	 	 	 	 	 	 
	 
      	
                Agreed
      Form

              	 
      	 
      	 
      	 
      
	 
      	
                Restructuring
      Document

              	 
      	 
      	 
      	 
      
	 
      	
                 
      

              	 
      	 
      	 
      	 
      
	
                Angel

              	
                364 day
      facility from RBS

              	 
      	 
      	 
      	 
      
	
                Leasing

              	
                dated
      01/02/07

              	 
      	 
      	 
      	 
      
	
                Company

              	
                 

              	 	 	 	 
	
                Limited

              	
                Data
      Room Section:

              	 	 	 	 
	
                 

              	
                4.1.7(A)

              	 	 	 	 

      

       

      TOTAL
UK FACILITIES REPAYMENT AMOUNT __________________

      

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

       

      
        	
                2

              	
                European Facilities to be
      Repaid

              

      

       

      
        	
                Borrower

              	
                Type

              	
                Principal

              	
                Interest

              	
                Breakage

              	
                Total

              
	 
      	 
      	
                Outstanding

              	
                Payable

              	
                and
      Other

              	 
      
	 
      	 
      	 
      	 
      	
                Costs

              	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
                Angel
      Trains

              	
                364 day loan
      from RBS

              	 
      	 
      	 
      	 
      
	
                Europa

              	
                plc Frankfurt
      dated

              	 
      	 
      	 
      	 
      
	
                GmbH

              	
                31/03/04

              	 
      	 
      	 
      	 
      
	 
      	
                 

                Data
      Room Section:

              	 
      	 
      	 
      	 
      
	 
      	
                4.2.9

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
                Angel
      Trains

              	
                364 day loan
      from RBS

              	 
      	 
      	 
      	 
      
	
                Cargo

              	
                plc Frankfurt
      dated

              	 
      	 
      	 
      	 
      
	
                (Locomotives)

              	
                31/03/04

              	 
      	 
      	 
      	 
      
	
                GmbH

              	 	 	 	 	 
	 	
                Data
      Room Section:

              	 	 	 	 
	 	
                4.2.5

              	 	 	 	 
	 	 	 	 	 	 
	
                Angel
      Trains

              	
                364 day loan
      from RBS

              	 	 	 	 
	
                Switzerland

              	
                dated
      17/12/07

              	 	 	 	 
	
                AG

              	 	 	 	 	 
	 	
                Data
      Room Ref: 4.1.9

              	 	 	 	 
	 	 	 	 	 	 

      

       

      TOTAL
EUROPEAN FACILITIES REPAYMENT AMOUNT __________________

      

      

      [Details
of UK and European Facilities to be updated to include any additional or
replacement debt entered into following the date of this Agreement (in
accordance with the terms of this Agreement) which is to be repaid on
Completion]

      

      
        	
                3

              	
                Debt Repayment
      Amount

              

      

      

      The Seller’s determination of the Debt Repayment Amount is
____________________
[sum of totals from 1 and 2
above].

      

      
        	
                4

              	
                Account
      Details

              

      

       

      The Debt Repayment
Amount should be transferred to the following account:

      

      [Account
details to be inserted]

      

      
        	
                SIGNED
      by

                for and on behalf of

                THE ROYAL BANK OF
      SCOTLAND GROUP PLC    

              	
                

              	 

      

       

      
        

        
          
            
            

          

          
            32

            
              

            

          

          
            
            

          

        

         

      

    

    Schedule
4

    Seller’s
Warranties

    

    
      	
              1  

            	
              Incorporation

            

    

    

    The Seller is a
limited liability company duly organised and validly existing under the laws of
its jurisdiction of incorporation. The details set out in Schedule 1 are true
and accurate in all respects.

    

    
      	
              2  

            	
              Power
      and Authority

            

    

    

    The Seller has the
requisite power and authority, and has taken all action necessary, to enter into
and to perform its obligations under each Transaction Document to which it is,
or contemplated by this Agreement that it will be, a party and such agreements
will when executed constitute valid and binding obligations on it in accordance
with their terms.

    

    
      	
              3  

            	
              No
      Breach

            

    

    

    The execution and
delivery of, and the performance of the Seller’s obligations under each
Transaction Document to which it is, or contemplated by this Agreement that it
will be a party, will not:

    

    
      
        	
              	
                (i)

              	
                result in a
      breach of any provision of its memorandum or articles of association;
      or

              

      

    

    

    
      
        	
              	
                (ii)

              	
                result in a
      breach of any laws or regulations in any relevant jurisdiction or any
      order, judgment or decree of any court or governmental agency to which it
      is a party or by which it is bound and which is material in the context of
      a Transaction Document to which it is, or contemplated by this Agreement
      that it will be, a party.

              

      

    

    

    
      	
              4  

            	
              No
      Winding-Up

            

    

    

    
      	
              4.1  

            	
              The Seller
      has not taken any action or other steps for its winding-up, liquidation,
      dissolution, administration, reconstruction or amalgamation or for the
      appointment of an insolvency official or similar officer of it or of any
      or all of its assets or revenues.

            

    

    

    
      	
              4.2  

            	
              Legal
      proceedings have not been served on the Seller, nor to the best of its
      knowledge are pending or threatened against it for its winding-up,
      liquidation, dissolution, administration or reorganisation, nor for the
      appointment of an insolvency official or similar officer of it or of any
      or all of its assets or revenues.

            

    

    

    5          Ownership

    

    
      	
              5.1  

            	
              The Seller is
      the sole legal owner of the Shares and the Zero Coupon Bonds and has the
      right to exercise all voting and other rights over all the Shares. The
      Seller is entitled to transfer or procure the transfer of the full
      ownership of the Shares and the Zero Coupon Bonds to the Purchaser on the
      terms set out in this Agreement.

            

    

    

    
      	
              5.2  

            	
              The Shares
      constitute the whole of the issued and allotted or, to the extent
      appropriate, registered, share capital of the Company. All the Shares are
      fully paid or properly credited as fully paid and there is no liability to
      pay any additional contributions on the
Shares.

            

    

    

    
      	
              5.3  

            	
              Save that NC
      Head Office Nominees Limited owns one share in Angel Trains Finance
      Limited, on trust for the Company, all the issued shares in each
      Subsidiary of the Company are legally and beneficially owned by Group
      Members who have the rights to exercise all voting and other rights over
      the shares free from all Encumbrances. All the shares are fully paid and
      there is no outstanding liability to pay any additional contributions on
      them. For

            

    

     

     

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

    

    the purposes of
this warranty, the term “Subsidiary” refers to Angel Trains Group Limited, Angel
Trains Limited, Angel Trains Finance Limited, The Great Rolling Stock Company
Limited, Angel Trains Cargo Limited, Locomotion Capital Limited, Train Finance 1
plc, Angel Locomotive Leasing Limited, Angel Trains Consulting Limited, Angel
Finance Holding Limited, Angel Train Contracts Limited, Angel Leasing Company
Limited, West Coast Train Finance plc, Angel Trains International Limited, Angel
Trains Cargo (Locomotives) Limited, Angel Trains Sverige AB, Angel Trains
Switzerland AG, Angel Trains Europa GmbH, Angel Trains Polska sp.z.o.o., Angel
Trains Italia S.R.L., Angel Trains Cargo (Locomotives) NV, Angel Trains Cargo
(Locomotives) GmbH, Locomotion Capital (UK) Limited and Angel Trains Espana
S.A..

    

    
      	
              5.4  

            	
              No person has
      the right (exercisable now or in the future and whether contingent or not)
      to call for the allotment or issue of any share or loan capital in any
      Group Member.

            

    

    

    6          Ownership of the EU
Business

    

    
      	
              6.1  

            	
              In respect of
      ATGL:

            

    

    

    
      
        	
              	
                6.1.1

              	
                The Company
      is the sole legal and beneficial owner of the shares in issue in the share
      capital of ATGL (“ATGL
      Shares”) free from all Encumbrances and has the right to exercise
      all voting and other rights over the ATGL
  Shares.

              

      

    

    

    
      
        	
              	
                6.1.2

              	
                The ATGL
      Shares constitute the whole of the issued and allotted or, to the extent
      appropriate, registered, share capital of ATGL. All of the ATGL Shares are
      fully paid or properly credited as fully paid and there is no liability to
      pay any additional contributions on the ATGL
  Shares.

              

      

    

    

    
      
        	
              	
                6.1.3

              	
                No person has
      the right (exercisable now or in the future and whether contingent or not)
      to call for the allotment or issue of any share or loan capital in
      ATGL.

              

      

    

    

    
      	
              6.2  

            	
              In respect of
      ATI:

            

    

    

    
      
        	
              	
                6.2.1

              	
                ATGL is the
      sole legal and beneficial owner of the shares in issue in the share
      capital of ATI (“ATI
      Shares”) free from all Encumbrances and has the right to exercise
      all voting and other rights over the ATI Shares. ATGL is entitled to
      transfer or procure the transfer of the full ownership of the ATI Shares
      to a Designated Purchaser pursuant to the ATGL
  SPA.

              

      

    

    

    
      
        	
              	
                6.2.2

              	
                The ATI
      Shares constitute the whole of the issued and allotted or, to the extent
      appropriate, registered, share capital of ATI. All of the ATI Shares are
      fully paid or properly credited as fully paid and there is no liability to
      pay any additional contributions on the ATI
  Shares.

              

      

    

    

    
      
        	
              	
                6.2.3

              	
                No person has
      the right (exercisable now or in the future and whether contingent or not)
      to call for the allotment or issue of any share or loan capital in
      ATI.

              

      

    

    

    
      	
              6.3  

            	
              In respect of
      the EU Group and the EU Business:

            

    

    

    
      
        	
              	
                6.3.1

              	
                ATI is the
      sole legal and beneficial owner (directly or indirectly through other
      members of the EU Group) of the shares in issue in the share capital of
      each member of the EU Group (the “EU Shares”) free from
      all Encumbrances and has the right (either directly or through other
      members of the EU Group) to exercise all voting and other rights over the
      EU Shares.

              

      

    

    

    
      
        	
              	
                6.3.2

              	
                The EU Shares
      constitute the whole of the issued and allotted or, to the extent
      appropriate, registered, share capital of the members of the EU Group. All
      EU

              

      

    

     

    

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

    

    Shares are fully
paid or properly credited as fully paid and there is no liability to pay any
additional contributions on the EU Shares.

    

    
      
        	
              	
                6.3.3

              	
                No person has
      the right (exercisable now or in the future and whether contingent or not)
      to call for the allotment or issue of any share or loan capital in any
      member of the EU Group.

              

      

    

    

    
      	
              7  

            	
              Status
      of Restructuring Documents

            

    

    

    
      
        	
              	
                7.1.1

              	
                Each copy of
      a Restructuring Document delivered to the Purchaser is true and complete
      and has been executed by the relevant Group Members and members of the
      Seller’s Group and, as far as the Seller is aware, the relevant third
      parties.

              

      

    

    

    
      
        	
              	
                7.1.2

              	
                No Group
      Member is a party to any agreement, or arrangements which terminate, vary,
      supplement or amend the Restructuring Documents other than in the case of
      any supplement in accordance with any procedure set out in the relevant
      Restructuring Document.

              

      

    

    

    
      
        	
              	
                7.1.3

              	
                Both (i) the
      sale and leaseback of certain UK rolling stock assets between ATL and
      Angel Leasing Company Limited and The Great Rolling Stock Company Limited,
      and (ii) the sale of certain EU rolling stock assets by ATL, Angel Trains
      International Limited and Locomotion Capital (UK) Limited to Angel Trains
      Switzerland AG and Angel Trains Cargo (Locomotives) NV, each under the
      Restructuring Documents, have been
effected.

              

      

    

    

    
      
        	
              	
                7.1.4

              	
                In relation
      to the Framework Agreement and each Order Book
  Agreement:

              

      

    

    

    
      	
            	
              (i)  

            	
              each
      agreement is in full force and effect (including all indemnities and
      covenants from the Seller’s Group thereunder) and no member of the
      Seller’s Group is disputing the enforceability of any of the provisions
      thereunder;

            

    

    

    
      	
            	
              (ii)  

            	
              no right of
      termination has arisen in favour of any member of the Seller’s Group
      thereunder or, to the extent any such right has arisen, the right has been
      or will be waived; and

            

    

    

    
      	
            	
              (iii)  

            	
              no member of
      the Seller’s Group will enforce any rights it may have against the Group
      for breaches of the Group’s obligations thereunder (in each case insofar
      as such obligation is not financial in nature) occurring prior to
      Completion (each a “Pre-Completion Breach”)
      at any time before or after Completion save for if a Pre-Completion Breach
      is remediable and has been notified by a member of the Seller’s Group to
      the Purchaser on or before Completion and such breach has not been
      remedied by the Purchaser’s Group or the Group within 60 days after
      Completion. Any Pre-Completion Breach that is not remediable has been or
      will be waived.

            

    

    

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    

    

    Schedule
5

    Purchaser’s
Warranties

    Part
1: Purchaser Warranties

    

    
      	
              1  

            	
              Incorporation

            

    

    

    The Purchaser is a
limited liability company duly organised and validly existing under the laws of
its jurisdiction of incorporation.

    

    
      	
              2  

            	
              Power
      and Authority

            

    

    

    The Purchaser has
the requisite power and authority, and has taken all action necessary, to enter
into and to perform its obligations under each Transaction Document to which it
is, or contemplated by this Agreement that it will be, a party and such
agreements will when executed constitute valid and binding obligations on it in
accordance with their terms.

    

    
      	
              3  

            	
              No
      Breach

            

    

    

    The execution and
delivery of, and the performance of the Purchaser’s obligations under each
Transaction Document to which it is, or contemplated by this Agreement that it
will be a party, will not:

    

    
      	
            	
              (i)  

            	
              result in a
      breach of any provision of its memorandum or articles of
      association;

            

    

    

    
      	
            	
              (ii)  

            	
              result in a
      breach of any laws or regulations in any relevant jurisdiction or any
      order, judgment or decree of any court or governmental agency to which it
      is a party or by which it is bound and which is material in the context of
      a Transaction Document to which it is, or contemplated by this Agreement
      that it will be a party; or

            

    

    

    
      	
            	
              (iii)  

            	
              subject to
      Clause 5, require it to obtain any consent or approval of, or give any
      notice to or make any registration with, any government or other authority
      which has not been obtained or made at the date hereof both on an
      unconditional basis and on a basis which cannot be
  revoked.

            

    

    

    
      	
              4  

            	
              No
      Winding-Up

            

    

    

    
      	
              4.1  

            	
              The Purchaser
      has not taken any action or other steps for its winding-up, liquidation,
      dissolution, administration, reconstruction or amalgamation or for the
      appointment of an insolvency official or similar officer of it or of any
      or all of its assets or revenues.

            

    

    

    
      	
              4.2  

            	
              Legal
      proceedings have not been served on the Purchaser, nor to the best of its
      knowledge are pending or threatened against it for its winding-up,
      liquidation, dissolution, administration or reorganisation, nor for the
      appointment of an insolvency official or similar officer of it or of any
      or all of its assets or revenues.

            

    

    

    
      	
              5  

            	
              Principal

            

    

    

    The Purchaser is
acting as principal and not as agent or broker for any other person except as
set out in paragraph 6 below.

    

    
      	
              6  

            	
              Interests
      in Purchaser

            

    

    

    
      	
              6.1  

            	
              The issued
      share capital of the Purchaser comprises 100,000 non-voting participating
      preference shares (PPS)
      and 12,360 ordinary shares (Ords).
      The PPS are owned by a charitable trust and the Ords are indirectly wholly
      owned by Willow Topco Limited,
whose

            

    

    

    

    
      
         

      

      
        36

        
          

        

      

      
         

      

    

    

    shareholders are
STC Funds Nominee Pty Ltd, Farm Plan Pty Ltd, Statewide Superannuation Pty Ltd
and companies wholly-owned by either AMP Capital Investors (Luxembourg No 1)
S.àr.l or Babcock & Brown European Infrastructure Fund L.P.

    

    
      	
              6.2  

            	
              The
      Designated Purchaser is an indirect wholly owned subsidiary of Willow
      (Malta) Holdco 1 Limited, whose shareholders are companies wholly owned by
      Babcock & Brown European Infrastructure Fund L.P, AMP Capital
      Investors (Luxembourg No 1) S.àr.l or Deutsche Bank
  AG.

            

    

    

    
      	
              7  

            	
              U.S.
      Securities Laws

            

    

    

    The Purchaser is
either:

    

    
      	
            	
              (i)  

            	
              outside the
      United States, and acquiring the Shares in a transaction meeting the
      requirements of Regulation S under the U.S. Securities Act of 1933 (the
      “Securities Act”);
      or

            

    

    

    
      	
            	
              (ii)  

            	
              an
      institution that is an accredited investor as defined in Rule 501 under
      the Securities Act (an “IAI”), acquiring the
      Shares for its own account or for the account of an IAI, and it is aware,
      and each beneficial owner of the Shares has been advised, that the offer
      and sale of the Shares is being made in reliance on an exemption from the
      registration requirements of the Securities Act, and it understands that
      resales of the Shares may only be made (a) in accordance with applicable
      securities laws to a person that it and any person acting on its behalf
      reasonably believe is an IAI acquiring for its own account or for the
      account of an IAI, (b) in an offshore transaction in accordance with Rule
      903 or Rule 904 of Regulation S under the Securities Act or (c) pursuant
      to an exemption from registration under the Securities Act provided by
      Rule 144 thereunder (if available), in each case in accordance with any
      applicable securities laws of any state of the United
    States.

            

    

    

    

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    
 

    Part
2: Purchaser Tax Warranties

    

    
      	
              1  

            	
              It is the
      current intention of the Purchaser and the UK Investor Group that the UK
      Group Members will continue after Completion to be within the charge to UK
      corporation tax in respect of profits arising from the leasing of the
      Equipment.

            

    

    

    
      	
              2  

            	
              The Purchaser
      and the UK Investor Group have no current intention for Reliefs to be
      surrendered to any UK Group Member or any member of the Purchaser Group by
      way of Group Tax Relief from any person that is not a UK Group Member, a
      member of the Seller’s Group or a member of the Purchaser
      Group.

            

    

    

    
      	
              3  

            	
              The Purchaser
      and the UK Investor Group have no current intention for any UK Group
      Member or member of the Purchaser Group to enter into, after Completion,
      any transactions or arrangements which would have the result of
      permanently avoiding or achieving a material further deferral of the
      payment of all or a material part of the tax, in aggregate, that is
      reflected in the UK Group’s deferred tax provision as at Completion (a
      “Tax Avoidance
      Transaction”), PROVIDED THAT, for the avoidance of doubt, none of
      the following shall be regarded as a Tax Avoidance Transaction for the
      purposes of Clause 11:

            

    

    

    
      	
            	
              (i)  

            	
              any
      transaction or arrangement entered into in the ordinary course of business
      of the UK Group as carried on by such companies prior to Completion;
      or

            

    

    

    
      	
            	
              (ii)  

            	
              any
      transaction or arrangement entered into pursuant to a legally binding
      commitment created by the Seller or a UK Group Member prior to Completion;
      or

            

    

    

    
      	
            	
              (iii)  

            	
              any
      transaction or arrangement entered into for the sole or main purpose of
      restructuring the UK Group’s arrangements with EWS in relation to the EWS
      Fleet (in each case as defined in Schedule 10 to this Agreement ) in a
      manner contemplated by Paragraph 1 of Schedule 10 of this Agreement;
      or

            

    

    

    
      	
            	
              (iv)  

            	
              the incurring
      of expenditure on rolling stock or other plant and machinery for use in
      the UK Group’s business in the ordinary course of business of the relevant
      companies as carried on by the UK Group at Completion (and, for the
      avoidance of doubt the amount of the expenditure shall not cause it to be
      regarded as being outside the ordinary course for these purposes);
      or

            

    

    

    
      	
            	
              (v)  

            	
              the
      refinancing (whether by way of increased third party debt or otherwise) of
      the external financing (including the Equity) of the UK Group and/or the
      Purchaser Group, provided that such refinancing does not form part of any
      arrangements which are Notifiable
Arrangements.

            

    

    

    
      	
              4  

            	
              The current
      expectation of the Purchaser is that the UK Group will make UK corporation
      tax payments of between £12 million and £40 million in respect of each
      Accounting Period ending after Completion (assuming no change in the
      accounting reference date of any UK Group Member) other than in respect of
      the first Accounting Period ending after Completion, and subject to (a)
      the consequences of any third party transactions or arrangements which may
      be entered into and are referred to in 3(i) to (v) and (b) the
      consequences of the expense arising under paragraph 33, Schedule 10
      Finance Act 2006 in respect of
LOLP.

            

    

    

    
      	
              5  

            	
              The current
      intention of the Purchaser and the UK Investor Group is that no person
      will advance any loans to the Purchaser Group for the purposes of
      financing the acquisition of

            

    

    

    

      
        
           

        

        
          38

          
            

          

        

        
           

        

      

    

    the Company or to
any UK Group Member in connection with refinancing existing indebtedness as at
the date of the acquisition other than:

    

    
      	
            	
              (i)  

            	
              independent
      third party banks and/or financial institutions (including mezzanine debt
      funds unconnected with the Purchaser or any member of the UK Investor
      Group) and for the avoidance of doubt EDC (Export Development Canada)
      shall be regarded as a financial institution for these purposes;
      or

            

    

    

    
      	
            	
              (ii)  

            	
              any member of
      the Purchaser Group; or

            

    

    

    
      	
            	
              (iii)  

            	
              to the extent
      of the Shareholder Loans, any member of the UK Investor Group;
      or

            

    

    

    
      	
            	
              (iv)  

            	
              the
      Designated Purchaser pursuant to the Bridge Loan
  Agreement.

            

    

    

    
      	
              6  

            	
              The current
      intention of the Purchaser Group is that it will finance the acquisition
      of the Company from the Seller by means of the Equity and the
      Interest-Bearing Loans and, as at Completion, the Interest-Bearing Loans
      will account for approximately 80% of the Total Acquisition
      Financing.

            

    

    

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    Schedule
6

    Notices

     

    
      	Seller	 
	 	 
	Address:	135 Bishopsgate
      

              London

              EC2M
      3UR

            
	 	 
	Fax Number:	+44 (0)20 7085
  2258
	 	 
	Marked for the attention
      of:	
              Chief  Administrative  Officer,  Royal  Bank  of  Scotland  Asset  and
      Portfolio
      Management

            
	 	 
	Purchaser	 
	 	 
	Address:	
              First Floor,
      27 Hill Street

              St Helier,
      Jersey

              JE2
      4UA

              Channel
      Islands

            
	 	 
	Fax Number:	
              +44 1534
      515516

            
	 	 
	
              Marked for
      the attention of: 

            	
              Soditic
      Secretaries Limited

            
	 	 
	Copy to:	
              BBEIF General
      Partner Ltd

              Second Floor,
      4, rue Alphonse Weicker,

              Kirchberg
      L-2721,

              Luxembourg

            
	 	 
	Fax
      Number:	
              +352 26 75 41
      05

            
	 	 
	Marked for the attention
      of:	Mark
  Hatherly

    

     

     

    
      
         

      

      
        40

        
          

        

      

      
         

      

    

    

    Schedule
7

    Conduct
of Business before Completion

    

    The acts and
matters referred to in Clause 6.1 are set out as follows.

    

    Each Group
Member:

    

    
      	
              1  

            	
              shall not
      enter into, materially amend or terminate any contract or arrangement
      having a value or involving or likely to involve expenditure of any kind
      in excess of £5,000,000 per annum, nor incur, commit to or expend capital
      expenditure which is in aggregate in excess of £5,000,000 per annum (pro
      rated);

            

    

    

    
      	
              2  

            	
              shall not
      acquire or agree to acquire or dispose of any share, shares or other
      interest in any company, partnership or other
  venture;

            

    

    

    
      	
              3  

            	
              shall not
      incur any additional borrowings or incur any other indebtedness other than
      in the ordinary course of business;

            

    

    

    
      	
              4  

            	
              shall not
      create, allot or issue any share capital or loan capital of any Group
      Member or any option to subscribe for the
same;

            

    

    

    
      	
              5  

            	
              shall not
      repay, redeem or repurchase any share capital or loan capital of any Group
      Member;

            

    

    

    
      	
              6  

            	
              shall not,
      save as required by law:

            

    

    

    
      	
            	
              6.1.1  

            	
              make any
      material amendment to the terms and conditions of employment (including,
      without limitation, remuneration, pension entitlements and other benefits)
      of any Senior Employee (other than minor increases in the ordinary course
      of business which the Seller shall notify to the Purchaser as soon as
      reasonably possible);

            

    

    

    
      	
            	
              6.1.2  

            	
              provide or
      agree to provide any gratuitous payment or benefit to any such person or
      any of his dependants;

            

    

    

    
      	
            	
              6.1.3  

            	
              dismiss any
      Senior Employee other than for good cause;
or

            

    

    

    
      	
            	
              6.1.4  

            	
              except as
      disclosed to the Purchaser prior to the date of this Agreement, engage or
      appoint any additional Senior
Employee;

            

    

    

    
      	
              7  

            	
              shall not in
      respect of any employees of ATL discontinue or amend any Pension Scheme to
      any material extent or commence to wind it up or terminate it or cause it
      to cease to admit new members except to the extent disclosed to the
      Purchaser;

            

    

    

    
      	
              8  

            	
              shall not in
      respect of any employees of ATL pay any benefits under any Pension Scheme
      other than in accordance with the terms of the documents governing the
      Pension Scheme;

            

    

    

    
      	
              9  

            	
              shall not
      make any change to its accounting practices or policies or amend its
      memorandum or articles of
association;

            

    

    

    
      	
              10  

            	
              shall not in
      any material respect alter the corporate structure of the Group or the
      ownership of rolling stock by any individual Group Member or discontinue
      any part of the business of the
Group;

            

    

    

    

    
      
         

      

      
        41

        
          

        

      

      
         

      

    

    

    
      	
              11  

            	
              shall not
      give any guarantee, indemnity or other agreement to secure an obligation
      of a third party;

            

    

    

    
      	
              12  

            	
              shall not
      take any action which is inconsistent with the provisions of this
      Agreement or any Transaction Document or any Restructuring
      Document;

            

    

    

    
      	
              13  

            	
              shall not
      terminate, vary, supplement or amend the Restructuring Documents or enter
      into other agreements or arrangements between the parties to the
      Restructuring Documents which has the effect of terminating, varying,
      supplementing or amending the Restructuring Documents other than in the
      case of any supplement in accordance with any procedure set out in the
      relevant Restructuring Document;

            

    

    

    
      	
              14  

            	
              that is a UK
      Group Member shall not incur any further Euro denominated borrowings other
      than interest and other costs on existing
  borrowings;

            

    

    

    
      	
              15  

            	
              that is an EU
      Group Member shall not incur any further Sterling denominated borrowings
      other than interest and other costs on existing
  borrowings;

            

    

    

    
      	
              16  

            	
              shall not
      undertake any material step to effect the renegotiation or restructuring
      of the EWS Lease and/or EWS Option;

            

    

    

    
      	
              17  

            	
              shall not
      undertake any material step with a view to entering into an agreement to
      lease Additional and Existing Pendolino Stock;
  and

            

    

    

    
      	
              18  

            	
              shall not
      finally agree or settle any liability to Tax with HMRC other
      than:

            

    

    

    
      	
            	
              (i)  

            	
              to the extent
      provision or reserve for such Tax was taken into account in preparing the
      Accounts or was reflected in the tax computations provided to the
      Purchaser prior to the date of this Agreement;
  or

            

    

    

    
      	
            	
              (ii)  

            	
              in relation
      to any matter for which the Seller could be liable for a claim under the
      Tax Deed,

            

    

    

    PROVIDED THAT
nothing in this clause shall prevent the payment of or accounting for Tax by any
Group Member (including any payment made to the representative member of the
Group Payment Arrangement or payment to a member of the Seller's Group in
respect of Group Relief to a member of the Seller's Group, in each case, as
permitted by this Agreement) which may become due and payable prior to
Completion in the ordinary and routine course other than pursuant to a final
agreement or settlement of Tax not otherwise permitted by this
Clause.

    

    The Seller shall
procure that the Purchaser is provided with copies of all written correspondence
with HMRC relating to the tax affairs of the Group Members and shall consider
any reasonable views or comments the Purchaser may have on such
correspondence.

    

    Defined terms used
in paragraphs 16 and 17 shall have the meanings set out in Schedule
10.

    

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

     

    Schedule
8

    Tax
Arrangements

    

    
      	
              1  

            	
              Definitions

            

    

    

    The following
definitions shall apply to this Schedule:

    

    “Accounts” means the latest
audited accounts of the relevant Group Member;

    

    “Degrouping Election” means an
election under Section 179A TCGA or Paragraph 66 Schedule 29 Finance Act
2002;

    

    “Degrouping Taxation” means any
Taxation arising as a result of the clawback of an earlier Relief, deferral or
saving of Taxation enjoyed by the Seller’s Group or a Group Member where such
clawback arises as a result of any Group Member ceasing to be a member of a
group or consortium or other association for Tax purposes with the
Seller;

    

    “Group Payment Arrangement”
means an arrangement entered into pursuant to Section 36 of the Finance Act
1998;

    

    “Group Tax Relief” means any
right to reallocate Taxation and Reliefs between members of a group or
consortium or other association for Taxation purposes including by way of (i)
the surrender of losses, (ii) the surrender of tax refunds, (iii) the surrender
of relievable tax, (iv) the ability to reallocate a profit, gain or loss for tax
purposes, (v) the ability to reallocate Degrouping Taxation, (vi) the ability to
rollover a gain on the assets of one member into the cost (for Tax purposes) of
the assets of another, (vii) the ability to reallocate any liability to settle
Tax, (viii) the ability to disregard entities for Tax purposes with the
consequence that the Tax liability falls on a different entity or (ix) the
ability to transfer any other Relief between members of a group or consortium or
other association for Taxation purposes, whether in the United Kingdom or any
other jurisdiction;

    

    “HMRC” means Her Majesty’s
Revenue and Customs;

    

    “Purchaser’s Group” has the
meaning given to it in the Tax Deed;

    

    “Relief” includes any relief,
loss, allowance, exemption, set-off, deduction or credit in computing or against
profits or Taxation;

    

    “Relevant Period” means any
period of a Group Member in respect of which the Seller could be liable under
Clause 2.1.3 or 2.1.4 of the Tax Deed;

    

    “Seller’s Group” has the
meaning given to it in the Tax Deed;

    

    “Straddle Period” means any
period of a Group Member beginning before but ending after Completion;
and

    

    “Transaction” includes any
transaction, circumstance, act, event or omission of whatever nature and
includes, without limitation, any change in the residence of any person for the
purposes of any Taxation and any change in accounting reference
date.

    

    2          Tax Administration
etc.

    

    
      	
              2.1  

            	
              Subject to
      and in accordance with the provisions of this paragraph 2 and of Clause 5
      of the Tax Deed, the Purchaser or its duly authorised agents shall, at the
      Purchaser’s cost:

            

    

    

    
      	
            	
              2.1.1  

            	
              prepare,
      submit and deal with (or procure the preparation and submission of and
      dealing with) all computations and returns relating to
      Taxation;

            

    

    

    

      
        
           

        

        
          43

          
            

          

        

        
           

        

      

    

    
      	
            	
              2.1.2  

            	
              prepare,
      submit and deal with (or procure the preparation and submission of and
      dealing with) all claims, elections, surrenders, disclaimers, notices and
      consents for Taxation purposes (together with the documents referred to in
      paragraph 2.1.1, “Tax
      Documents”); and

            

    

    

    
      	
            	
              2.1.3  

            	
              deal with all
      other matters which relate to Taxation including, without limitation, any
      correspondence, enquiry, dispute, negotiation or settlement involving
      HMRC,

            

    

    

    in respect of all
periods relevant for Taxation purposes of each Group Member ending on or before
Completion (including, for the avoidance of doubt, any accounting period which
began before Completion but is deemed to end by virtue of paragraph 3(2) of
Schedule 10, Finance Act 2006) (“Pre-Completion Accounting
Periods”) and the Straddle Period.

    

    
      	
              2.2  

            	
              The Purchaser
      will make, for Pre-Completion Accounting Periods and the Straddle Period,
      any claims, elections, surrenders, disclaimers, notices or consents in
      respect of each Group Member that have been assumed in the Accounts or the
      notes to the Accounts to be made by any Group Member and that have been
      identified in writing to the Purchaser prior to entering into this
      Agreement.

            

    

    

    
      	
              2.3  

            	
              Subject to
      paragraph 2.15 below, the Seller hereby agrees to cancel any existing
      authority held by any employee or agent of or adviser to the Seller to
      sign Tax Documents on behalf of any Group Member with effect from
      Completion.

            

    

    

    
      	
              2.4  

            	
              The Purchaser
      shall procure that:

            

    

    

    
      	
            	
              2.4.1  

            	
              the Seller is
      kept fully informed of the progress of all matters relating to the tax
      affairs of the Group Companies in relation to the Pre-Completion
      Accounting Periods, the Straddle Period and each Relevant
      Period;

            

    

    

    
      	
            	
              2.4.2  

            	
              the Seller
      receives copies of, or extracts from, all written correspondence to, or
      from, HMRC insofar as it is relevant to the matters referred to in
      paragraph 2.1 above; and

            

    

    

    
      	
            	
              2.4.3  

            	
              the Seller
      receives drafts of all Tax Documents which are to be submitted under
      paragraph 2.1 above, such drafts to be received no later than twenty five
      (25) Business Days before their
submission,

            

    

    

    in each case to the
extent that the relevant matter, written correspondence or Tax Document (as the
case may be) relates directly or indirectly to any matter for which the Seller
could be liable under Clause 2 of the Tax Deed or, so far as the Purchaser is,
or ought reasonably to be, aware, relates to the tax affairs of the Seller or
any member of the Seller’s Group, including without limitation where such matter
relates to any Group Tax Relief or the Group Payment Arrangement.

    

    
      	
              2.5  

            	
              The Purchaser
      shall procure that:

            

    

    

    
      	
            	
              2.5.1  

            	
              in relation
      to matters which, so far as the Purchaser is, or ought reasonably to be,
      aware, may affect the Seller’s liability to Taxation or the liability to
      Taxation of any member of the Seller’s Group (as described above), the
      Seller is consulted fully in relation to the matters referred to in
      paragraph 2.1 above and all reasonable written comments of the Seller are
      taken into account in relation to such matters, provided that the Seller’s
      comments are received by the Purchaser or its authorised agent no later
      than ten (10) Business Days before the date on which any relevant Tax
      Document is required to be submitted;
and

            

    

    

    

      
        
           

        

        
          44

          
            

          

        

        
           

        

      

    

    
      	
            	
              2.5.2  

            	
              in relation
      to matters which may affect the Seller’s liability under Clause 2 of the
      Tax Deed and for which the Seller does not have responsibility under
      clause 5 of the Tax Deed, the Seller is consulted fully in relation to the
      matters referred to in paragraph 2.1 above and all proper and lawful
      written comments of the Seller are taken into account without amendment in
      relation to such matters, provided the Seller’s comments are received by
      the Purchaser or its authorised agent no later than ten (10) Business Days
      before the date on which any relevant Tax Document is required to be
      submitted.

            

    

    

    
      	
              2.6  

            	
              The Purchaser
      agrees to devote reasonable resources to dealing with the Taxation affairs
      of the Group Companies in relation to the Pre-Completion Accounting
      Periods, the Straddle Period and each Relevant Period, and shall use
      reasonable endeavours to ensure that they are finalised as soon as
      reasonably practicable. The Purchaser shall ensure that all Tax Documents
      are true and accurate in all respects and are not
    misleading.

            

    

    

    
      	
              2.7  

            	
              For the
      avoidance of doubt Clause 19 (Access) of the
      Agreement shall apply in respect of the exercise by the Seller of its
      rights and discharge by the Seller of its obligations under this Schedule
      8 and the Tax Deed.

            

    

    

    
      	
              2.8  

            	
              The Purchaser
      shall procure that to the extent possible each Group Member surrenders its
      losses by way of Group Tax Relief to any member of the Seller's Group as
      the Seller may reasonably specify and claim in respect of any
      Pre-Completion Accounting Period or the Straddle Period. The Purchaser
      shall procure that the relevant Group Member shall take without delay (and
      in any event within any applicable statutory time limit) all such steps as
      may reasonably be required by the Seller to effect any Group Tax
      Relief.

            

    

    

    
      	
              2.9  

            	
              If the Seller
      requires and to the extent that a Group Member has taxable profits, the
      Seller’s Group shall be entitled to surrender Reliefs to the Group Members
      by way of Group Tax Relief. The Purchaser shall procure that the relevant
      Group Member shall take without delay (and in any event within the
      applicable time limit) all such steps as may reasonably be required by the
      Seller’s Group to effect such
surrender.

            

    

    

    
      	
              2.10  

            	
              If the Seller
      becomes liable to make any payment under Clause 2.1 of the Tax Deed, the
      Seller may, at its option and wholly or partly instead of making a payment
      under Clause 2.1 of the Tax Deed and without any cost to the Purchaser or
      any Group Member, make or procure the making of any claim, election,
      surrender, disclaimer, notice or consent in relation to any Group Tax
      Relief in order to eliminate, reduce or otherwise compensate for the
      liability to make the payment of Taxation which has given rise to the
      claim. The Purchaser shall procure that the relevant Group Member shall
      take without delay (and in any event within any applicable statutory time
      limit) all such steps as may reasonably be required by the Seller to
      effect any such Group Tax Relief.

            

    

    

    
      	
              2.11  

            	
              Neither the
      Purchaser nor a Group Member shall be required to make any surrender where
      the Purchaser or a Group Member reasonably considers that the losses are
      not available to be surrendered under any tax legislation governing such
      surrenders or cannot lawfully be
surrendered.

            

    

    

    
      	
              2.12  

            	
              The Seller
      shall, or shall procure that the relevant member of the Seller's Group
      shall, pay for the losses surrendered under paragraph 2.8 at the rate of
      corporation tax applicable for the accounting period in which the
      surrendered losses arose.

            

    

    

    
      	
              2.13  

            	
              The Purchaser
      shall, or shall procure that the relevant member of the Group shall, pay
      for the losses surrendered under paragraph 2.9 an amount equal to the
      amount of corporation

            

    

    

    

    
      
         

      

      
        45

        
          

        

      

      
         

      

    

    

    tax saved by the
relevant member of the Group as a result of the surrender (and in determining
the amount of the corporation tax saved it shall be assumed that the Group has
used all available Reliefs in priority to the losses surrendered under paragraph
2.9). The Seller and the Purchaser shall consider in good faith the most
appropriate way in which to make such payments at the time of making such
payments.

    

    
      	
              2.14  

            	
              No payment
      shall be made for any surrender of losses pursuant to paragraph 2.10
      above.

            

    

    

    
      	
              2.15  

            	
              Each Group
      Member authorises Iain Crawford, Jonathan Butterworth and such other
      employees as the Seller shall notify the Purchaser to allocate its tax
      losses by way of Group Tax Relief in accordance with paragraph 2.8, 2.9 or
      2.10 to the Seller or members of the Seller's Group and sign such claims
      and surrenders as are necessary in accordance with normal procedures
      agreed between the Seller and HMRC relating to such Group Member and Group
      Tax Relief and it is intended that such authorised persons shall be taken
      to have implied authority in respect of such matters for the purpose of
      Section 108 of the Taxes Management Act
1970.

            

    

    

    
      	
              2.16  

            	
              If any
      surrender of Group Tax Relief has been made by any Group Member to any
      member of the Seller’s Group and a payment has been made by a member of
      the Seller’s Group in respect of that Group Tax Relief (whether pursuant
      to paragraph 2.12 or otherwise) and the surrender to which the payment
      relates is subsequently determined to be unavailable or is otherwise
      invalid or ineffective to any extent, then the payment so made (or so much
      of it as relates to such part of the surrender found to be unavailable,
      invalid or ineffective) shall be refunded as soon as practicable
      thereafter, provided that no refund shall be required to be made under
      this paragraph 2.16 to the extent that (i) the payment for the Group Tax
      Relief was taken into account in preparing the Accounts and (ii) such
      refund would leave the Purchaser’s Group or a Group Member in a worse
      position than it would have been in had the relevant surrender been
      permitted in full.

            

    

    

    
      	
              2.17  

            	
              If any
      surrender of Group Tax Relief has been made by any member of the Seller’s
      Group to any Group Member and a payment has been made by a Group Member in
      respect of that Group Tax Relief (whether pursuant to paragraph 2.13 or
      otherwise) and the surrender to which the payment relates is subsequently
      determined to be unavailable or is otherwise invalid or ineffective to any
      extent, then the payment so made (or so much of it as relates to such part
      of the surrender found to be unavailable, invalid or ineffective) shall be
      refunded as soon as practicable
thereafter.

            

    

    

    
      	
              2.18  

            	
              The Purchaser
      shall procure that no voluntary action is taken by any Group Member or any
      other member of the Purchaser’s Group after Completion (whether by
      disclaiming any Relief, withdrawing or revoking any claim or consent or
      otherwise) which would or is likely either to prejudice or reduce the
      availability of any Group Tax Relief surrendered or to be surrendered to
      any member of the Seller’s Group pursuant to paragraph
  2.9.

            

    

    

    
      	
              2.19  

            	
              If the Seller
      so requests, and the Purchaser, having considered such request in good
      faith, agrees, the Purchaser shall take all reasonable steps to procure
      that, to the extent permissible by law, any Group Member to which a gain,
      loss or part thereof accrues as a result of the Group Member ceasing to be
      a member of the Seller’s Chargeable Gains or Intangibles group enters into
      a Degrouping Election with a member of the Seller’s Group within the
      applicable statutory time limit. The Purchaser shall procure that the
      Group Member concerned pays to the relevant member of the Seller’s Group a
      sum equal to the amount of Degrouping Taxation from which the Group Member
      concerned has been

            

    

    

     

    
      
         

      

      
        46

        
          

        

      

      
         

      

    

    

    relieved by virtue
of the Degrouping Election or such other amount as is agreed between the Seller
and the Purchaser.

    

    
      	
              2.20  

            	
              If Taxation
      is imposed on any Transaction to which any member of the Seller’s Group
      and any Group Member are party on any basis other than by reference to the
      actual economic terms of the Transaction such that one party (the “Advantaged Person”)
      suffers a liability to Taxation which is greater than they would otherwise
      have suffered had the Taxation been calculated by reference to the actual
      economic terms of the Transaction:

            

    

    

    
      	
            	
              2.20.1  

            	
              the parties
      shall (and shall procure that the relevant members of the Seller’s Group,
      the Purchaser’s Group or the Group Companies shall) cooperate and make all
      such claims and elections as may be necessary to ensure that, to the
      extent possible, the party who does not suffer the increased liability to
      Taxation (the “Disadvantaged Person”)
      is able to claim corresponding adjustments in respect of the increased
      Taxation suffered by the Advantaged Person;
and

            

    

    

    
      	
            	
              2.20.2  

            	
              the
      Disadvantaged Person shall make balancing payments to the Advantaged
      Person equal to the amount of additional Taxation actually saved by the
      Disadvantaged Person as a result of the corresponding adjustments, or
      shall surrender to the Advantaged Person losses of the same amount as the
      corresponding adjustments,

            

    

    

    and the Purchaser
shall procure that where a Group Member is the Disadvantaged Person and a member
of the Seller’s Group is the Advantaged Person, any payment made pursuant to
this paragraph 2.20 does not constitute unlawful financial assistance within the
meaning of Section 151 of the Companies Act 1985 but if this is not possible the
Purchaser shall instead make a payment of the same amount to the Seller by way
of additional consideration for the shares.

    

    
      	
              2.21  

            	
              The due date for payment under
      paragraph 2.20 shall be the later of (i) the date falling five (5)
      Business Days before the
      latest date on which that additional Taxation may be paid to the relevant Taxation authority
      without a liability to interest or penalties accruing, and (ii) the date
      falling five (5) Business Days after service by the Advantaged Person of a
      notice containing a written demand in respect of the matter for which the
      Disadvantaged Person is
liable.

            

    

    

    3          Value Added Tax

    

    
      	
              3.1  

            	
              As soon as
      reasonably practicable after the date of this Agreement, the Seller shall
      procure that (if one has not already been made) an application shall be
      made to HMRC pursuant to Section 43B of the VATA 1994 for the exclusion of
      each Group Member from the bodies treated as members of the same VAT Group
      as the Seller for the purposes of Section 43 of the VATA 1994 (the “Seller VAT Group”) and
      for such exclusion to take effect on Completion or, if HMRC do not permit
      this, at the earliest date following Completion permitted by Section
      43B.

            

    

    

    
      	
              3.2  

            	
              Pending the
      taking effect of such application and for so long thereafter as may be
      necessary, each of the Seller and the Purchaser shall procure that such
      information is provided to the other as may be required to enable the
      continuing representative member of the Seller VAT Group to make all the
      returns required of it in respect of the Seller VAT
  Group.

            

    

    

    
      	
              3.3  

            	
              When the
      exclusion takes effect after Completion, the Seller and the Purchaser
      shall procure that such payments shall be made between such representative
      member and the

            

    

    

    
      
         

      

      
        47

        
          

        

      

      
         

      

    

    

    Group Companies as
may be appropriate to ensure that the resulting position of each of the
companies concerned is as close as possible to the position which would have
obtained if such application or applications had taken effect on the date of
Completion.

    

    
      	
              3.4  

            	
              If for any
      prescribed accounting period for VAT purposes during which a Group Member
      is a member of the Seller VAT Group there is an excess of allowable input
      tax over output tax (as those terms are defined in Section 24 VATA 1994)
      in respect of supplies (including self supplies) made or deemed to have
      been made by or to or importations or acquisitions made by such Group
      Member up to and including Completion, then to the extent such excess was
      treated as an asset in the Accounts or arises after the Locked Box Date,
      the Seller shall to the extent not previously paid pay or procure the
      payment to the Group Member concerned of such excess no later than twenty
      (20) Business Days after the last day of such accounting
      period.

            

    

    

    
      	
              3.5  

            	
              If for any
      prescribed accounting period for VAT purposes during which a Group Member
      is a member of the Seller VAT Group there is an excess of output tax over
      allowable input tax (as those terms are defined in Section 24 VATA 1994)
      in respect of supplies (including self supplies) made or deemed to have
      been made by or to or importations or acquisitions made by such Group
      Member up to and including Completion, then to the extent provision or
      reserve was made in respect of such excess in the Accounts or arises after
      the Locked Box Date, the Purchaser shall to the extent not previously paid
      pay or procure the payment by the Group Member concerned to the Seller of
      such excess no later than twenty (20) Business Days after the last day of
      such accounting period.

            

    

    

    
      	
              3.6  

            	
              The deeming
      provisions of Section 43(1) VATA 1994 shall be disregarded in determining
      for the purposes of this paragraph 3 what supplies or acquisitions or
      importations have been made or are deemed to have been made by or to any
      person.

            

    

    

    
      	
              3.7  

            	
              The parties
      to this Agreement undertake that they will on request promptly supply or
      procure that there is supplied to the other parties all information,
      particulars and access to and copies of records reasonably relevant to any
      liability of the parties under this paragraph
3.

            

    

    

    4          Group Payment
Arrangement

    

    
      	
              4.1  

            	
              The Purchaser
      shall procure that each Group Company that is a member of the Group
      Payment Arrangement contributes to the relevant member of the Seller’s
      Group (the “Nominated
      Company”) within ten (10) Business Days of written demand therefor
      an amount equal to any instalment(s) of corporation tax which is to be or
      has been discharged by the Nominated Company on behalf of the relevant
      Group Company pursuant to the Group Payment Arrangement (other than to the
      extent that such contribution was made prior to or on
      Completion).

            

    

    

    
      	
              4.2  

            	
              The Seller
      shall procure that the Nominated Company shall pay to HMRC promptly
      following receipt thereof (or, if later, when the relevant amount is due
      and payable to HMRC) an amount equal to any amount contributed to the
      Nominated Company by a Group Member pursuant to the Group Payment
      Arrangement (a “Contributed Amount”) and
      shall procure that the Nominated Company shall promptly apportion to the
      relevant Group Member each Contributed Amount, such apportionment to be
      made by reference to the instalment(s) of corporation tax in respect of
      which the Contributed Amount was
paid.

            

    

    

    
      	
              4.3  

            	
              The Seller
      shall not, without the Purchaser’s written consent (not to be unreasonably
      withheld), reapportion any amount previously apportioned to a Group
      Company pursuant

            

    

     

    

      
        
           

        

        
          48

          
            

          

        

        
           

        

      

    

    to the Group
Payment Arrangement and shall pay, or procure that there is paid, to the
relevant Group Company an amount equal to any excess of any amount contributed
to the Nominated Company by any Group Company in respect of any instalment(s) of
corporation tax over the amount of tax finally apportioned to the Group Company
in respect of that instalment(s) (together with interest at 2 per cent above
LIBOR from the date of contribution).

    

    5          Secondary
Liabilities

    

    
      	
              5.1  

            	
              To the extent
      that the Purchaser, a member of the Purchaser’s Group or a Group Member
      incurs a liability for Taxation (under Section 767A or 767AA Income and
      Corporation Taxes Act 1988 (“ICTA”) or otherwise)
      which is attributable to Taxation which is primarily chargeable on the
      Seller’s Group, the Seller will indemnify the Purchaser (for itself and as
      trustee for the relevant member of the Purchaser’s Group or Group Member)
      in respect of that liability.

            

    

    

    
      	
              5.2  

            	
              To the extent
      that a member of the Seller’s Group incurs a liability for Taxation (under
      Section 767A or 767AA ICTA or otherwise) which is attributable to Taxation
      which is primarily chargeable on the Purchaser or a Group Member, the
      Purchaser will indemnify the member of the Seller’s Group in respect of
      that liability, except where such Taxation is subject to a valid claim by
      the Purchaser under the Tax Deed which has not been
    satisfied.

            

    

    

    6          Other Matters

    

    
      	
              6.1  

            	
              Subject to
      Clause 6.2 below, the Purchaser undertakes not to take any steps to
      terminate the arrangements entered into pursuant to the UK Sale and
      Leaseback Transactions at any time within 12 months of the Completion
      Date.

            

    

    

    
      	
              6.2  

            	
              Notwithstanding
      Clause 6.1 above, the Purchaser may terminate the arrangements entered
      into pursuant to the UK Sale and Leaseback Transactions provided that such
      act (a) takes place after the expiry of the 12 month starting on the
      Completion Date, or (b) is a reasonable and proportionate act to mitigate
      the effects of a change of law (including a change of Tax law) or of other
      external circumstance having a material adverse effect on the financial
      condition, assets, prospects or business of the
  Group.

            

    

    

    
      	
              6.3  

            	
              The Purchaser
      shall procure that the accounting reference dates for the United Kingdom
      registered entities within the Group are not changed for the period ending
      31 March 2008.

            

    

    

    

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

    
 

    Schedule
9

    Competition
Amount

    

    In
this Schedule 9, the following defined terms have the following
meanings:

    

    “Act” means the Enterprise Act
2002;

    

    “Adjusted Seller Business Plan”
means the Seller Business Plan as adjusted to reflect only the direct or indirect
result of the Investigation but assuming that all other conditions and
assumptions remain the same;

    

    “Adverse Regulatory Outcome”
means any of the following:

    

    
      	
              (a)  

            	
              the
      Competition Commission obtaining undertakings from the Group under section
      159 of the Act, or making an order under section 160 or 161 of the Act
      against the Group, or announcing an intention to seek such undertakings or
      make such an order, the object or effect of which is prospectively to
      constrain or otherwise adversely regulate the Groups’ freedom to set
      Capital Rents and Non-Capital Rents in relation to its GB Rolling Stock
      Business; or

            

    

    

    
      	
              (b)  

            	
              any
      governmental entity announcing its intention to or taking any steps
      to:

            

    

    

    
      	
            	
              (i)  

            	
              levy
      financial penalties, fines, taxes or other charges against the Group
      (either directly or indirectly) referable wholly or partially to the
      period prior to the Completion Date in an amount greater than £10 million;
      or

            

    

    

    
      	
            	
              (ii)  

            	
              take measures
      the object or effect of which is prospectively to constrain or otherwise
      adversely regulate the Groups’ freedom to set Capital Rents and Non-
      Capital Rents in relation to its GB Rolling Stock
  Business,

            

    

    

    in each case
resulting from the Rolling Stock Leasing Market Investigation by the Competition
Commission pursuant to a reference by the Office of Rail Regulation on 26 April
2007 (the “Investigation”).

    

    “Benign Regulatory Outcome”
means the following:

    

    
      	
              (a)  

            	
              the
      Competition Commission does not:

            

    

    

    
      	
            	
              (i)  

            	
              make any
      recommendations under section 134(4) of the Act or announce an intention
      to take or take any actions whatsoever (including but not limited to
      accepting any undertakings or making any orders), whether prospective or
      retrospective, the object or effect of which is to constrain or otherwise
      adversely regulate the Groups’ freedom to set Capital Rents in relation to
      its GB Rolling Stock Business; and

            

    

    

    
      	
            	
              (ii)  

            	
              make any
      recommendations under section 134(4) of the Act or announce an intention
      to take or take any actions whatsoever (including but not limited to
      accepting any undertakings or making any orders), whether prospective or
      retrospective, the object or effect of which is to constrain or otherwise
      adversely regulate the Group’s freedom to set Non-Capital Rents in
      relation to its GB Rolling Stock Business other than a requirement for the
      Group to offer leasing prices including and excluding maintenance;
      and

            

    

    

    
      	
            	
              (iii)  

            	
              announce an
      intention to take or take any action whatsoever (including but not limited
      to accepting any undertakings or making any orders), the object or effect
      of which is to constrain or otherwise adversely regulate the Group’s
      ability to run its

            

    

    

    
      
         

      

      
        50

        
          

        

      

      
         

      

    

    

    business in a
manner substantially similar to the manner prior to the Completion Date
(including, but not limited to, the ability of the Group to refuse to offer
leases except for a requirement to offer fixed and floating interest rate
leases); and

    

    
      	
            	
              (iv)  

            	
              announce an
      intention to take or take any action whatsoever (including but not limited
      to accepting any undertakings or making any orders), the object or effect
      of which is to levy any fine on the Group in an amount greater than £5
      million; and

            

    

    

    
      	
              (b)  

            	
              no
      governmental entity has announced its intention to take any action or has
      taken any steps as described in (a) above;
and

            

    

    

    
      	
              (c)  

            	
              no changes
      have been recommended or made to the Code of Practice other than a
      requirement for the Group to offer leasing prices including and excluding
      maintenance,

            

    

    

    in
each case resulting from the Investigation.

    

    “Capital Rents” means any
rental, hire or other periodic payment for the use or hire of any item of
equipment comprised within the GB Rolling Stock Business, but excluding any
Non-Capital Rents;

    

    “Code of Practice” means the
Group’s latest code of practice published on its website and approved by the
Office of Rail Regulation;

    

    “Competition Commission” means
the UK Competition Commission;

    

    “Competition Amount” means
£30,000,000;

    

    “CC Amount Date” means the
later of: (a) six months following the conclusion of the Investigation; and (b)
31 December 2009;

    

    “Expert” means a firm of
chartered accountants to be agreed by the Seller and the Purchaser within five
Business Days of a notice by one to the other requiring such agreement or
failing such agreement to be nominated on the application of either of them by
or on behalf of the President for the time being of the Institute of Chartered
Accountants in England and Wales;

    

    “GB Rolling Stock Business”
means the leasing of rolling stock for franchised passenger services and the
supply of related maintenance services in Great Britain by the
Group;

    

    “Intermediate Regulatory Outcome
Amount” means the aggregate change in the net present value of the
Capital Rents and the Non Capital Rents from the GB Rolling Stock Business,
expressed as a positive number, as a direct or indirect result of the
Investigation, calculated as:

    

    The net present
value of the sum of the forecast Capital Rents and Non Capital Rents in the
Seller Business Plan for delivered rolling stock assets existing as of the date
of this Agreement for each of the first 20 years following Completion under the
Seller Business Plan using a discount rate of 10 per cent per annum

    

    Less

    

    The net present
value of the sum of the forecast Capital Rents and Non Capital Rents in the
Adjusted Seller Business Plan for delivered rolling stock assets existing as of
the date of this Agreement for each of the first 20 years following Completion
under the Adjusted Seller Business Plan using a discount factor of 10 per cent
per annum, either agreed between the parties pursuant to paragraph 5 or
determined by the Expert pursuant to paragraph 8;

    

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

    

     

    “Non-Capital Rents” means any
maintenance reserve payment and any other rental, hire or other periodic payment
of a non-capital nature in respect of any item of equipment comprised within the
GB Rolling Stock Business;

    

    “Seller Business Plan” means
the business plan model for the GB Rolling Stock Business dated 23 November 2007
prepared by the Seller, which sets out the expected future level of Capital
Rents and Non-Capital Rents for the GB Rolling Stock Business.

    

    
      	
              1.  

            	
              The Purchaser
      agrees to take all reasonable steps, and to procure that the Group takes
      such steps (including but not limited to such steps reasonably requested
      by the Seller):

            

    

    

    
      	
            	
              (a)  

            	
              to avoid any
      Adverse Regulatory Outcome; and

            

    

    

    
      	
            	
              (b)  

            	
              in the event
      there being neither an Adverse Regulatory Outcome or a Benign Regulatory
      Outcome, to reduce the negative impact of the Intermediate Regulatory
      Outcome Amount on the GB Rolling Stock
Business.

            

    

    

    
      	
              2.  

            	
              If, on the CC
      Amount Date, a Benign Regulatory Outcome has occurred, the Purchaser shall
      pay the Competition Amount to the Seller within 20 Business Days less any
      amounts falling within the scope of paragraph (a) (iv) of the definition
      of Benign Regulatory Outcome.

            

    

    

    
      	
              3.  

            	
              If, on the CC
      Amount Date, any Adverse Regulatory Outcome has occurred, the Purchaser
      shall have no liability to pay any amount to the
  Seller.

            

    

    

    
      	
              4.  

            	
              If, on the CC
      Amount Date, neither a Benign Regulatory Outcome nor any Adverse
      Regulatory Outcome has occurred, the Purchaser shall deliver to the Seller
      a draft calculation of the Intermediate Regulatory Outcome Amount within
      10 Business Days (Draft
      Delivery Date).

            

    

    

    
      	
              5.  

            	
              If, within 20
      Business Days of the Draft Delivery Date, the Seller and Purchaser reach
      agreement on the value of the Intermediate Regulatory Outcome Amount
      (Agreement Date), the Purchaser
      shall pay an amount equal to the Competition Amount minus the Intermediate
      Regulatory Outcome Amount less the amount of any fine levied on the Group
      by a government entity, agreed between the parties to the Seller within 20
      Business Days of the Agreement Date. For the avoidance of doubt, the
      amount payable under this paragraph 5 shall not be greater than
      £30,000,000 or lower than £nil.

            

    

    

    
      	
              6.  

            	
              If the Seller
      and Purchaser do not reach agreement on the value of the Intermediate
      Regulatory Outcome Amount within 20 Business Days of the Draft Delivery
      Date, as set out in Clause 5 above, the Purchaser or the Seller may by
      notice in writing to the other require that the calculation of the
      Intermediate Regulatory Outcome Amount be referred for determination by
      the Expert.

            

    

    

    
      	
              7.  

            	
              The Expert
      shall be engaged jointly by the Seller and the Purchaser on such terms as
      shall be agreed; provided that neither the Seller nor the Purchaser shall
      unreasonably (having regard, inter alia, to the provisions of this
      paragraph 7) refuse its agreement to terms proposed by the Expert or by
      the other party. If the terms of engagement of the Expert have not been
      settled within 10 Business Days of their identity having been determined
      (or such longer period as the Seller and the Purchaser may agree) then,
      unless the Seller or the Purchaser is unreasonably refusing its agreement
      to those terms, those accountants shall be deemed never to have become the
      Expert and a new Expert shall be selected in accordance with the
      provisions of this Schedule 9.

            

    

    

    

      
        
           

        

        
          52

          
            

          

        

        
           

        

      

    

    
      	
              8.  

            	
              Except to the
      extent that the Seller and the Purchaser agree otherwise, the Expert shall
      determine its own procedure but:

            

    

    

    
      	
            	
              (a)  

            	
              shall
      determine only the correct Intermediate Regulatory Outcome Amount, in its
      opinion;

            

    

    

    
      	
            	
              (b)  

            	
              shall make
      their determination as soon as is reasonably
  practicable;

            

    

    

    
      	
            	
              (c)  

            	
              the procedure
      of the Expert shall:

            

    

    

    
      	
            	
              (i)  

            	
              give the
      Seller and the Purchaser a reasonable opportunity to make written
      representations to them;

            

    

    

    
      	
            	
              (ii)  

            	
              require that
      each of the Seller and the Purchaser supply the other with a copy of any
      written representations at the same time as they are made to the Expert;
      and

            

    

    

    
      	
            	
              (iii)  

            	
              for the
      avoidance of doubt, the Expert shall not be entitled to determine the
      scope of their own jurisdiction.

            

    

    

    
      	
              9.  

            	
              The
      determination of the Expert shall:

            

    

    

    
      	
            	
              a.  

            	
              be made in
      writing and made available for collection by the Seller and the Purchaser
      at the offices of the Expert at such time as they shall determine;
      and

            

    

    

    
      	
            	
              b.  

            	
              unless
      otherwise agreed by the Seller and the Purchaser include reasons for each
      relevant determination.

            

    

    

    
      	
              10.  

            	
              In the case
      of the determination of the Intermediate Regulatory Outcome Amount by the
      Expert in accordance with paragraphs 8 and 9 above, the Purchaser shall
      pay an amount equal to the Competition Amount minus the Intermediate
      Regulatory Outcome Amount less the amount of any fine levied on the Group
      by a government entity to the Seller within 20 Business Days of the date
      of the written determination of the Expert. For the avoidance of doubt,
      the amount payable under this paragraph 10 shall not be greater than
      £30,000,000 or lower than £nil and the Purchaser shall have no liability
      to pay any amount to the Seller under this paragraph 10 where there has
      been a payment made by the Purchaser pursuant to its obligations under
      paragraph 5 above.

            

    

    

    
      	
              11.  

            	
              The Expert
      shall act as Expert and not as arbitrators and their determination of any
      matter falling within their jurisdiction shall be final and binding on the
      Seller and the Purchaser save in the event of manifest error (when the
      relevant part of their determination shall be void and the matter shall be
      remitted to the Expert for
correction).

            

    

    

    
      	
              12.  

            	
              The expenses
      (including VAT) of the Expert shall be borne equally between the
      Purchaser, on the one hand, and the Seller, on the
  other.

            

    

    

    
      	
              13.  

            	
              The Seller
      and Purchaser shall co-operate with the Expert and comply with their
      reasonable requests made in connection with the carrying out of their
      duties under this Agreement. In particular the Purchaser shall make
      available to the Expert all information relating to the Group as the
      Expert may reasonably request, except where such information is of a
      commercially sensitive nature.

            

    

    

    
      	
              14.  

            	
              Nothing in
      this Schedule shall entitle a party or the Expert access to any
      information or document which is protected by legal professional privilege
      or litigation privilege, provided that neither the Seller nor the
      Purchaser shall be entitled to refuse to supply such part
    or

            

    

    

    
      
        
        

      

      
        53

        
          

        

      

      
        
        

      

    

    
 

    parts of documents
as contain only the facts on which the relevant claim or argument is
based.

    

    

    

    

    
      
        
        

      

      
        54

        
          

        

      

      
        
        

      

    

    
 

    Schedule
10

    Additional
EWS Consideration and Additional Pendolinos Consideration

    

    1          EWS Option

    

    
      	
              1.1  

            	
              If the EWS
      Lease and the EWS Option are renegotiated or restructured on or before 31
      December 2010, such that:

            

    

    

    
      	
            	
              (a)  

            	
              EWS does not
      hold an option to purchase the partnership interest held by ATL, either
      directly or indirectly through a Group Member, in LOLP or an option to
      purchase, obtain control of or force the disposal by ATL of any of the EWS
      Fleet;

            

    

    

    
      	
            	
              (b)  

            	
              a Group
      Member agrees to lease all or part of the EWS Fleet for a period until at
      least 1 January 2021, whether or not part of a longer
    lease;

            

    

    

    
      	
            	
              (c)  

            	
              the new lease
      is not a long funding lease as determined in Chapter 6A, Part 2 of the
      Capital Allowances Act 2001; and

            

    

    

    
      	
            	
              (d)  

            	
              the Capital
      Rents payable by EWS for the period up until the earlier of (i) 1 January
      2016 and (ii) the date the New Lease is entered into, are not affected and
      remain at the levels applicable at the time of this Agreement save for any
      reduction in the Capital Rents which is a direct result of any improvement
      in the financing terms of the EWS Fleet resulting from a guarantee being
      provided by Deutsche Bahn.

            

    

    

    then the Purchaser
shall pay the Additional EWS Consideration to the Seller on the later of the
Completion Date and the Clause 1 Date.

    

    
      	
              1.2  

            	
              The Purchaser
      undertakes to use all reasonable endeavours to procure the fulfilment of
      Clause 1.1 above and undertakes to procure that no step is undertaken
      which has the principal purpose of causing, and does in fact cause, a
      reduction in the amount that might otherwise be payable to the Seller
      under Clause 1. The Purchaser will promptly provide any information
      reasonably requested by the Seller in respect of the renegotiating or
      restructuring of the EWS Lease and the EWS Option. Nothing in this
      paragraph 1.2 shall require the Purchaser to procure the amending of the
      EWS Lease such that the Capital Rents payable prior to 1 November 2015
      would be less than would otherwise be payable under the EWS Lease (such
      aggregate difference being the “Shortfall
      Amount”).

            

    

    

    
      	
              1.3  

            	
              For the
      purposes of this Clause 1:

            

    

    

    “Actual EWS Fleet Rent” means
the annual rent in pounds (exclusive of VAT) receivable by the Company under a
New Lease;

    

    “Additional EWS Consideration”
means an amount equal to the lower of:

    

    
      	
              a)  

            	
              £15,000,000
      (fifteen million pounds); and

            

    

    

    
      	
              b)  

            	
              An amount, A,
      in pounds which shall be not less than zero and which shall be calculated
      according to the following formula:

            

    

    

    A
= (B - C)/1,000,000 * D - E

    

    
      
        	
              	
                Where:

              	
                B shall be
      the Actual EWS Fleet Rent

                C shall be
      the Target EWS Fleet Rent

                D shall be
      the EWS Fleet Consideration
Factor

              

      

    

    

    
      
        
        

      

      
        55

        
          

        

      

      
        
        

      

    

     

    

    E shall be net
present value in pounds using a discount rate of 10 per cent. per annum of the
Shortfall Amount (if any) calculated as at the Clause 1 Date;

    

    “Capital Rents” means any
rental, hire or other periodic payment for the use or hire of any item of
equipment comprised within the EWS Fleet, but excluding any Non-Capital
Rents;

    

    “Clause 1 Date” means the date
twenty Business Days after the execution of binding documentation restructuring
the EWS Lease and the EWS Option complying with Clause 1;

    

    “EWS” means English Welsh and
Scottish Railway Company Limited;

    

    “EWS Fleet” means the Class 66
and Class 67 trains subject to the terms of the Master Lease Class 66 Agreement
and the Master Lease Class 67 Agreement respectively at the time of this
Agreement;

    

    “EWS Fleet Consideration
Factor” means £5,200,000;

    

    “EWS Lease” means the Master
Lease Class 66 Agreement and the Master Lease Class 67 Agreement;

    

    “EWS Option” means, pursuant to
the terms of the Option Deed, the option granted to Locomotive 6667 Limited to
purchase the interests of ATL in LOLP, exercisable in accordance with the terms
of the Option Deed;

    

    “LOLP” means Angel Trains
Limited and Angel Locomotive Leasing Limited as partners trading in a
partnership under the name of Locomotive Operating Leasing
Partnership;

    

    “Master Lease Class 66
Agreement” means the master lease agreement dated 25 August 1998 between
LOLP (as lessor) and EWS (as lessee) in respect of Class 66 locomotives, as
amended from time to time and as set out in section 2.1.20.1 of the Data
Room;

    

    “Master Lease Class 67
Agreement” means the master lease agreement dated 25 August 1998 between
LOLP (as lessor) and EWS (as lessee) in respect of Class 67 locomotives, as
amended from time to time and as set out in Section 2.1.21.1 of the Data
Room;

    

    “New Lease” means all the
lease(s) entered into which comply with paragraphs 1.1(b) and (c);

    

    "Non-Capital Rents" means any
maintenance reserve payment and any other rental, hire or other periodic payment
of a non-capital nature in respect of any item of equipment comprised within the
EWS Fleet;

     

    “Option Deed” means the option
deed dated 25 August 1998 between ATL, Locomotive 6667 Limited and Angel
Locomotive Leasing Limited, as amended from time to time and as set out in
section 1.2.11.002 of the Data Room; and

    

    “Target EWS Fleet Rent” means
£14,200,000.

    

    2          Pendolinos

    

    
      	
              2.1  

            	
              If, on or
      prior to 31 December 2009, a Group Member has entered into an agreement to
      lease Additional and Existing Pendolino Stock then, subject to the
      satisfaction of all of the

            

    

    

    

    
      
         

      

      
        56

        
          

        

      

      
         

      

    

    

    conditions set out
in Clause 2.3, the Purchaser shall pay the Additional Pendolinos Consideration
to the Seller on the Clause 2 Date.

    

    
      	
              2.2  

            	
              If any of the
      conditions as set out in Clause 2.3 is not satisfied on or before 31
      December 2009 the Purchaser shall be under no further obligation to the
      Seller under this Clause 2.

            

    

    

    
      	
              2.3  

            	
              The
      conditions set out in this Clause 2.3 are as
  follows:

            

    

    

    
      	
            	
              (a)  

            	
              the leasing
      arrangements entered into by a Group Member in respect of the Additional
      Pendolino Stock generate an Additional Pendolino Lease Factor, which is,
      for the initial lease period, of not less than the Additional Pendolino
      Target Lease Factor less 25 basis points;
and

            

    

    

    
      	
            	
              (b)  

            	
              either (i)
      the Existing Pendolino Stock is re-leased, or (ii) an undertaking pursuant
      to Section 54, Railways Act 1993 is provided in usual or common form by
      the Department for Transport for either the Existing Pendolino Stock or
      the Additional Pendolino Stock, provided that in respect of either (i) or
      (ii) the arrangement is for a period ending not earlier than 2017;
      and

            

    

    

    
      	
            	
              (c)  

            	
              the Existing
      Pendolino Re-Lease Rate is not less than the Existing Pendolino Target
      Re-Lease Rate.

            

    

    

    
      	
              2.4  

            	
              The Purchaser
      undertakes to use all reasonable endeavours to procure the fulfilment of
      Clause 2.3 above and undertakes to procure that no step is undertaken
      which has the principal purpose of causing, and does in fact cause, a
      reduction in the amount that might otherwise be payable to the Seller
      under Clause 2. The Purchaser will promptly provide any information
      reasonably requested by the Seller in respect of Clause
  2.

            

    

    

    
      	
              2.5  

            	
              For the
      purposes of this Clause 2:

            

    

    

    “Additional Pendolinos
Consideration” means an amount equal to the lower of:

    

    
      	
            	
              (a)  

            	
              £24,000,000
      (twenty four million pounds); and

            

    

    

    
      	
            	
              (b)  

            	
              the greater
      of zero and the sum of:

            

    

    

    (i) an amount A in
relation to the re-lease of the Existing Pendolino Stock calculated as
follows:

    

    A
= (B - C) / 50,000 * D

    

    
      	 	
              Where:

            	
              B shall be the Existing Pendolino
      Re-lease Rate 

                C shall be
      the Existing Pendolino Target Re-lease Rate 

                  D shall be
      the Existing Pendolino Consideration
  Factor

                

              

            

    

     

    and

    

    (ii) an amount X,
which may be less than zero, in relation to Additional Pendolino Stock
calculated as follows:

    

    X
= (Y – Z) * 10,000 * W * (K / 1,000,000)

    

    
      
        	 	
                Where:

              	
                Y shall be
      the Additional Pendolino Lease Factor

                Z shall be
      the Additional Pendolino Target Lease Factor

                W shall be
      the Additional Pendolino Consideration
Factor

              

      

    

    

     

    
      
         

      

      
        57

        
          

        

      

      
         

      

    

    

    K
shall be the Additional Pendolino Capital Expenditure

    

    “Additional and Existing Pendolino
Stock” means the Additional Pendolino Stock and the Existing Pendolino
Stock;

    

    “Additional Pendolino Capital
Expenditure” means all capital expenditure in pounds relating to the
purchasing of the Additional Pendolino Stock, including but not limited to
payments to the manufacturer, interest on financing up to the time of delivery,
fees and other ancillary costs to the extent capitalised.

    

    “Additional Pendolino Consideration
Factor” means in respect of any date the pound sterling amount set out in
column 4 of the row in the Target Factors Table that contains the Relevant Swap
Rate Range applying to that date.

    

    “Additional Pendolino Lease
Factor” means the fraction found by dividing the total annual lease
rentals relating to the Additional Pendolino Stock (excluding VAT) by the total
Additional Pendolino Capital Expenditure, and then converted into a
percentage and expressed as a number.

    

    “Additional Pendolino Stock”
means a number of additional class 390 trainsets, (likely to consist of 4 x 9
car trainsets) and up to 112 additional class 390 carriages to supplement the
Existing Pendolino Stock;

    

    “Additional Pendolino Target Lease
Factor” means in respect of any date the number set out in column 3 of
the row containing the Relevant Swap Rate Range applying to that
date;

    

    “Clause 2 Date” means the date
20 Business Days after the satisfaction of the conditions in Clause
2.3;

    

    “Existing Pendolino Consideration
Factor” means £3,000,000.

    

    “Existing Pendolino Stock”
means the 52 class 390 Pendolino trainsets owned by a Group Member and presently
leased to Virgin West Coast Trains;

    

    “Existing Pendolino Re-lease
Rate” means the monthly rental in £(exclusive of VAT) payable under any
leasing arrangement entered into by a Group Member in respect of the Existing
Pendolino Stock for the first new lease period after the date of this
Agreement.

    

    “Existing Pendolino Target Re-lease
Rate” means £5,650,000 per month (exclusive of VAT).

    

    “Relevant Swap Rate” means the
mid market 10 year swap rate, calculated as the arithmetical average of the bid
and ask rates quoted on Bloomberg ticker reference IRSB17, at the date of
entering the lease for the Additional Pendolino Stock.

    

    “Relevant Swap Rate Range”
means in respect of any date the range contained in the row in the Target
Factors Table in which the rate in column 1 is lower than or equal to the
Relevant Swap Rate relating to that date and the rate in column 2 is equal to or
higher than the Relevant Swap Rate relating to that date.

    

    “Target Factors Table”
means:

     

    
    

     

    
      	
              Relevant
      Swap Rate

            	
              Z
      – Additional Pendolino 

                Target
      Lease Factor (Annual)

              

            	
              W
      (GBP)

            
	
              1

            	
              2

            	
              3

            	
              4

            

    

     

    

      
        
           

        

        
          58

          
            

          

        

        
           

        

      

    

     

     

    
      	
              Relevant
      Swap Rate

            	
               Z
      – Additional Pendolino

              Target
      Lease Factor (Annual)

            	
              W
      (GBP)

            
	
              3.50%

            	
              3.99%

            	
              9.62%

            	
              1,000

            
	
              4.00%

            	
              4.49%

            	
              9.92%

            	
              975

            
	
              4.50%

            	
              4.99%

            	
              10.22%

            	
              950

            
	
              5.00%

            	
              5.49%

            	
              10.53%

            	
              925

            
	
              5.50%

            	
              5.99%

            	
              10.84%

            	
              900

            
	
              6.00%

            	
              6.49%

            	
              11.14%

            	
              875

            
	
              6.50%

            	
              6.99%

            	
              11.45%

            	
              850

            
	
              7.00%

            	
              7.49%

            	
              11.75%

            	
              825

            
	
              7.50%

            	
              7.99%

            	
              12.06%

            	
              800

            

    

    

    

    The above table is
based on the Department for Transport calculating the amortisation of capital
cost over 240 months. In the event that this assumption is incorrect then the
above table shall be adjusted accordingly.

    

    
      
         

      

      
        59

        
          

        

      

      
         

      

    

    

    
      	
               
      Schedule
      11

              RBS
      Hedging Arrangements

              Swaps

               

            
	
              Reference

            	
              Max
      Notional *

            	
              Profile

            	
              Rate

            	
              End
      Date

            	
              Project

            	
              Type

            	
              Status

            	
              Assets
      Numbers

            
	
              D18895586

            	
              €89,120,382

            	
              Amort.

            	
              4.6250%

            	
              01/12/2025

            	
              Mass Rehein
      Lippe

            	
              Passenger

            	
              On
      Order

            	
              E00218 to
      E00235

            
	
              D19009912

            	
              €159,487,138

            	
              Amort.

            	
              4.4650%

            	
              01/07/2021

            	
              SNCB 35
      Traxx

            	
              Cargo

            	
              On
      Order

            	
              L00370 to
      L00404

            
	
              D15526604

            	
              €21,452,368

            	
              Amort.

            	
              4.4400%

            	
              01/04/2016

            	
              TXL
      Wagon

            	
              Wagon

            	
              On
      Order

            	
              W00001 to
      W00180

            
	
              D18757324

            	
              €23,000,000

            	
              Bullet

            	
              4.3100%

            	
              24/10/2013

            	
              Cargo
      4

            	
              Cargo

            	
              Delivered

            	 
    
	
              IRS257050.2A
      &2B

            	
              £56,878,475.97**
      

            	
              Amort.

            	
              5.295%

            	
              1/05/2014

            	
              Class 360-Interest Fixing

            	
              UK

            	
              Delivered

            	 
	
              D13232405.2A
      & 2B

            	
              £12,436,373.28
      * 

            	Amort.	
              5.25%

            	
              31/10/2013

            	
              GNER

            	
              UK

            	
              Delivered

            	 
	
              IRS267985.2A
      & 2B

            	
              £48,697,424.00**

            	
              Amort.

            	
              5.0975%

            	
              1/10/2013

            	
              GBP Swap -
      Northern

            	
              UK

            	Delivered	 
	
              *
      from 30/4/08

            	
              **
      from 1/5/08

            	 	 
    	 
    	 
    	 
    	 
      	 
      

    

    

    
      
         

      

      
        60

        
          

        

      

      
         

      

    

     

     FX
Trades

     

    
      
        	
                Euro
      Structural (€ NAV) Hedges

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Counterparty

              	 	
                Deal
      date

              	 	
                Buy

              	 	
                Sell

              	 	
                Amount
      (Buy)

              	 	
                Value
      date

              	 	
                Spot
      Rate

              	 	
                Fwd
      Pts

              	 	
                Outright
      Rate

              	 	
                Amount
      (Sell)

              	 	
                Deal
      Ref

              	 	
                Gain
      / (Loss)

              	 	 
    
	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    
	
                As
      at 31 Dec 2007

              
	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    
	
                ATL

              	 	
                20-Dec-07

              	 	
                GBP

              	 	
                EUR

              	 	
                £84,342,560.55

              	 	
                20-Mar-08

              	 	
                1.3912

              	 	
                (0.00400)

              	 	
                1.38720

              	 	
                €117,000,000.00

              	 	
                ATI12/07

              	 	
                New
      Forward

              	 	
                Trade

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                Trades
      post 31 Dec 2007

              
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                ATL

              	 	
                20-Mar-08

              	 	
                EUR

              	 	
                GBP

              	 	
                €117,000,000.00

              	 	
                20-Mar-08

              	 	
                1.271240

              	 	 
    	 	
                1.27124

              	 	
                £92,036,122.21

              	 	
                AT01/08

              	 	
                £7,693,561.66

              	 	
                Settle
      previous

              
	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    
	
                ATL

              	 	
                20-Mar-08

              	 	
                GBP

              	 	
                EUR

              	 	
                £92,046,259.15

              	 	
                28-Mar-08

              	 	
                1.271240

              	 	
                (0.00014)

              	 	
                1.27110

              	 	
                €117,000,000.00

              	 	
                AT01/08

              	 	
                Paid by
      ATL

              	 	
                Dec.
      trade

                New
      Forward

                Trade (roll
      over)

              
	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    
	
                ATL

              	 	
                26-Mar-08

              	 	
                EUR

              	 	
                GBP

              	 	
                €117,000,000.00

              	 	
                28-Mar-08

              	 	
                1.279200

              	 	 
    	 	
                1.27920

              	 	
                £91,463,414.63

              	 	
                AT02/08

              	 	
                £582,844.52

              	 	
                Settle
      previous

              
	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    
	
                ATI

              	 	
                26-Mar-08

              	 	
                GBP

              	 	
                EUR

              	 	
                £93,187,157.40

              	 	
                26-Jun-08

              	 	
                1.279200

              	 	
                (0.00220)

              	 	
                1.27700

              	 	
                €119,000,000.00

              	 	
                ATI01/08

              	 	
                Received by
      ATL

              	 	
                March
      trade

                New
      Forward

              
	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    
	
                ATL

              	 	
                28-Mar-08

              	 	
                GBP

              	 	
                EUR

              	 	
                £64,102,564.10

              	 	 
    	 	
                1.279200

              	 	 
    	 	 
    	 	
                €82,000,000.00

              	 	 
    	 	 
    	 	
                Trade
      (o/s)

                Repaying I/C
      Debt

              
	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    	 	 
    
	
                ATL

              	 	
                31-Mar-08

              	 	
                GBP

              	 	
                EUR

              	 	
                £29,947,198.36

              	 	 
    	 	
                1.268900

              	 	 
    	 	 
    	 	
                €38,000,000.00

              	 	 
    	 	 
    	 	
                Repaying I/C
      Debt

              

      

    

     

     

     

     

    
      
         

      

      
        61

        
          

        

      

      
         

      

    

    

    Schedule
12

    Agreed
Form Documents

    

    Commitment
Letters

    

    Leakage
Schedule

    

    Press
Release

    

    Pro forma Swiss
Directors’ Resignation Letters

    Pro forma German
Director’s Resignation Letters

    Transfer Document
for Zero Coupon Bonds

    Voting Power of
Attorney

    Topco
Guarantee

    

    Intercreditor
Agreement

    

    Bridge Loan
Agreement

    

    

    

    

    

    

    

    

    

      
        
           

        

        
          62

          
            

          

        

        
           

        

      

     

    
      Schedule
13

      Restructuring
Documents

      

      Part
A - Virgin Redemption

    

     

    
      
        	
                No.

              	
                Document

              	
                Parties

              
	
                1

              	
                ALCL Loan Agreement Amendment
      Agreement

              	
                1. Angel Leasing Company
      Limited

                2. West Coast Train Finance
      plc

                3. Deutsche Trustee Company
      Limited

                4. Deutsche Bank
      AG

                5. Angel Trains
      Limited

              
	
                2

              	
                Senior Subordinated Loan Agreement
      Amendment Agreement

              	
                1. Angel Leasing Company
      Limited

                2. Deutsche Trustee Company
      Limited

                3. Deutsche Bank
      AG

                4. Angel Trains
      Limited

              
	
                3

              	
                Amendment and Termination
      Agreement

              	
                1. West Coast Train Finance
      plc

                2. Angel Trains
      Limited

                3. Angel Leasing Company
      Limited

                4. Angel Finance Holding
      Limited

                5. RBS

                6. Deutsche Trustee Company
      Limited

                7. Deutsche Bank
      AG

              
	
                4 
      a

              	
                Notice of
      Redemption

              	
                -

              
	
                    
      b

              	
                Notice of
      Pricing

              	
                -

              
	
                5

              	
                Loan
    Facility

              	
                1. Angel Leasing Company
      Limited

                2. RBS

              
	
                6

              	
                Prepayment Notice in respect of
      Senior Loan

              	
                1. Angel Leasing Company
      Limited

                2. ATL

              
	
                7

              	
                Prepayment Notice in respect of
      Junior Loan

              	
                1. Angel Leasing Company
      Limited

                2. ATL

              
	
                8

              	
                Debt cancellation
      deed

              	
                1. Angel Leasing Company
      Limited

                2. ATL

              
	
                9

              	
                Intercompany
      Loan

              	
                1. Angel Leasing Company
      Limited

                2.
  ATL

              

      

       

      
        
          
          

        

        
          63

          
            

          

        

        
          
          

        

      

    

     

    
      
        	
                No.

              	
                Document

              	
                Parties

              
	
                10

              	
                Notice of
      Cancellation

              	
                1. West Coast Train Finance
      plc

                2. RBS

              
	
                11

              	
                Termination
      Agreement

              	
                1. Angel Trains
      Limited

                2. Angel Leasing Company
      Limited

                3. RBS

                4. Deutsche Trustee Company
      Limited

                5. Deutsche Bank
      AG

              
	
                12

              	
                Deed of Release and
      Re-assignment

              	
                1. Deutsche Trustee Company
      Limited

                2. Angel Leasing Company
      Limited

              
	
                13

              	
                Deed of Release and
      Re-assignment

              	
                1. Deutsche Trustee Company
      Limited

                2. West Coast Train Finance
      plc

              

      

       

       

      
        Part
B – UK Sale and Leaseback

      

      
        	
                No.

              	
                Document

              	
                Parties

              
	
                14

              	
                Loan
    Facility

              	
                1. The Great Rolling Stock Company
      Limited

                2. RBS

              
	
                15

              	
                Loan
    Facility

              	
                1. The Great Rolling
      Stock Company Limited

                2. RBS

              
	
                16

              	
                Quiet Enjoyment Letter Re: West
      Coast Trains

              	
                1. The Great Rolling Stock Company
      Limited

                2. West Coast Trains
      Limited

              
	
                17

              	
                Deed of Accession (West Coast
      Trains)

              	
                1. The Great Rolling Stock
      Company
      Limited

                2. Angel Leasing Company
      Limited

                3. Secretary of
      State

              
	
                18

              	
                Purchase
      Agreement

              	
                1. The Great Rolling Stock Company
      Limited

                2. Angel Leasing Company
      Limited

              
	
                19

              	
                Bill of
Sale

              	
                Angel Leasing Company
      Limited

              
	
                20

              	
                Deed of Release
      001

              	1. KfW

      

    

     

    
      
        
        

      

      
        64

        
          

        

      

      
        
        

      

    

     

    
      
        	
                No.

              	
                Document

              	
                Parties

              
	 
      	 
      	
                2. Angel Trains
      Limited

              
	
                21

              	
                Deed of Release
      002-003-010

              	
                1. KfW

                2. Angel Trains
      Limited

              
	
                22

              	
                Deed of Release
      004-005

              	
                1. KfW

                2. Angel Trains
      Limited

              
	
                23

              	
                Deed of Release
      006

              	
                1. KfW

                2. Angel Trains
      Limited

              
	
                24

              	
                Deed of Release
      007

              	
                1. KfW

                2. Angel Trains
      Limited

              
	
                25

              	
                Deed of Release
      008-013-014

              	
                1. KfW

                2. Angel Trains
      Limited

              
	
                26

              	
                Deed of Release
      009

              	
                1. KfW

                2. Angel Trains
      Limited

              
	
                27

              	
                Deed of Release
      011-012-015

              	
                1. KfW

                2. Angel Trains
      Limited

              
	
                28

              	
                Deed of Release
      016

              	
                1. KfW

                2. Angel Trains
      Limited

              
	
                29

              	
                Fee letter re negotiation of Deed
      of Release and new mortgage

              	
                1. Angel Trains
      Limited

              
	
                30

              	
                Quiet Enjoyment Letter Re:
      Stagecoach South Western Trains Limited – MOLA

              	
                1. The Great Rolling Stock Company
      Limited

                2. Stagecoach South Western Trains
      Limited

              
	
                31

              	
                Side letter in respect of Deeds of
      Accession

              	
                1. The Great Rolling Stock Company
      Limited

                2. DfT

                3. Scottish
      Ministers

              
	
                32

              	
                Deed of Accession (First Scotrail
      OPRAF/ROSCO)

              	
                1. The Great Rolling Stock Company
      Limited

                2. Angel Trains
      Limited

                3. Scottish
      Ministers

              
	
                33

              	
                Deed of Accession (First
      Greater)

              	
                1. The Great Rolling Stock Company
      Limited

              

      

    

     

    
      
        
        

      

      
        65

        
          

        

      

      
        
        

      

    

     

    
      
        	
                No.

              	
                Document

              	
                Parties

              
	 
      	 
      	
                2. Angel Trains
      Limited

                3. Secretary of
      State

              
	
                34

              	
                Deed of Accession (Northern
      Rail)

              	
                1. The Great Rolling Stock Company
      Limited

                2. Angel Trains
      Limited

                3. Secretary of
      State

              
	
                35

              	
                Deed of Accession
      (Stagecoach)

              	
                1. The Great Rolling Stock Company
      Limited

                2. Angel Trains
      Limited

                3. Secretary of
      State

              
	
                36

              	
                Deed of Accession (London
      Eastern)

              	
                1. The Great Rolling Stock Company
      Limited

                2. Angel Trains
      Limited

                3. Secretary of
      State

              
	
                37

              	
                Deed of Accession
      (C2C)

              	
                1. The Great Rolling Stock Company
      Limited

                2. Angel Trains
      Limited

                3. Secretary of
      State

              
	
                38

              	
                Deed of Accession (London &
      Birmingham Railway, formerly Silverlink)

              	
                1. The Great Rolling Stock Company
      Limited

                2. Angel Trains
      Limited

                3. Secretary of
      State

              
	
                39

              	
                Deed of Accession (Arriva
      Trains)

              	
                1. The Great Rolling Stock Company
      Limited

                2. Angel Trains
      Limited

                3. Secretary of
      State

              
	
                40

              	
                Deed of Accession
      (OPRAF/ROSCO)

              	
                1. The Great Rolling Stock Company
      Limited

                2. Angel Trains
      Limited

                3. Secretary of
      State

              

      

    

    
      
        	
                41

              	
                Deed of Accession
      (Chiltern)

              	
                1. The Great Rolling Stock Company
      Limited

                
                  2. Angel Trains
      Limited

                  
                    3. Secretary of
      State

                  

                

              

      

       

      
        
          
          

        

        
          66

          
            

          

        

        
          
          

        

      

      

      
        
          	
                  No.

                	
                  Document

                	
                  Parties

                
	
                  42

                	
                  Deed of Accession
      (Merseyrail)

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. Angel Trains
      Limited

                  3. Secretary of
      State

                
	
                  43

                	
                  Deed of Accession (London Overland Railway Direct
      Agreement)

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. Angel Trains
      Limited

                  3. Rail for London

                
	
                  44

                	
                  Purchase
      Agreement

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. Angel Trains
      Limited

                
	
                  45

                	
                  Bill of
Sale

                	
                  Angel Trains
      Limited

                
	
                  46

                	
                  Loan Amendment
      Agreement

                	
                  1. KfW

                  2. ATL

                
	
                  47

                	
                  Mortgage

                	
                  1. KfW

                  2. The Great Rolling Stock Company
      Limited

                
	
                  48

                	
                  Quiet Enjoyment Letter Re: XC
      Trains Limited

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. XC Trains
      Limited

                
	
                  49

                	
                  Quiet Enjoyment Letter Re:
      London Eastern Railway – MOLA

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. London Eastern

                
	
                  50

                	
                  Quiet Enjoyment Letter Re: C2C
      – MOLA

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. C2C

                
	
                  51

                	
                  Quiet Enjoyment Letter Re: NXEC
      Trains Limited

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. NXEC Trains
      Limited

                
	
                  52

                	
                  Quiet Enjoyment Letter Re:
      London & Birmingham Railway Limited
      - MOLA

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. London & Birmingham Railway
      Limited

                
	
                  53

                	
                  Quiet Enjoyment Letter Re:
      London & Birmingham Railway Limited
      - OLA

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. London & Birmingham Railway
      Limited

                

        

      

      

      
        
          
          

        

        
          67

          
            

          

        

        
          
          

        

      

       

    

    
      
        
          	
                  No.

                	
                  Document

                	
                  Parties

                
	 
      	 
      	
                  Limited

                
	
                  54

                	
                  Quiet Enjoyment Letter Re: London
      Eastern Railway –OLA

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. London
      Eastern

                
	
                  55

                	
                  Quiet Enjoyment Letter Re:
      Northern Rail Limited – MOLA

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. Northern Rail
      Limited

                
	
                  56

                	
                  Quiet Enjoyment Letter Re: London
      Overground Operations Limited

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. London Overground Operations
      Limited

                
	
                  57

                	
                  Quiet Enjoyment Letter Re: First
      Greater Western Limited - OLA OLA/FGW/O8-05

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. First Greater Western
      Limited

                
	
                  58

                	
                  Quiet Enjoyment Letter Re: First
      Greater Western Limited OLA/FGW/06-12

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. First Greater Western
      Limited

                
	
                  59

                	
                  Quiet Enjoyment Letter Re: First
      Greater Western Limited – MOLA

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. First Greater Western
      Limited

                
	
                  60

                	
                  Quiet Enjoyment Letter Re: First
      Greater Western Limited -OLA/FGW/06-09

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. First Greater Western
      Limited

                
	
                  61

                	
                  Quiet Enjoyment Letter Re:
      Merseyrail – MOLA

                	
                  1. The Great Rolling Stock Company
      Limited

                  2.
    Merseyrail

                
	
                  62

                	
                  Quiet Enjoyment Letter Re: London
      and South Eastern Railway – MOLA

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. London and South Eastern
      Railway

                
	
                  63

                	
                  Quiet Enjoyment Letter Re: First
      Scotrail Limited – MOLA

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. First Scotrail
      Limited

                
	
                  64

                	
                  Quiet Enjoyment Letter Re:
      East

                	
                  1. The Great Rolling Stock Company
      Limited

                

        

        
        

        

        
          
            
            

          

          
            68

            
              

            

          

          
            
            

          

        

      

       

      
        
          	
                  No.

                	
                  Document

                	
                  Parties

                
	 
      	
                  Midlands Trains
      Limited

                	
                  Limited

                  2. East Midlands Trains
      Limited

                
	
                  65

                	
                  Quiet Enjoyment Letter Re: New
      Southern Railway Limited.

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. New Southern Railway
      Limited

                
	
                  66

                	
                  Quiet Enjoyment Letter Re: Arriva
      Trains Wales - OLA - Class 175/0 and 175/1 units

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. Arriva Trains Wales

                
	
                  67

                	
                  Quiet Enjoyment Letter Re: Arriva
      Trains Wales - MOLA Class 142, 153, 158 and 175

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. Arriva Trains Wales

                
	
                  68

                	
                  Quiet Enjoyment Letter Re: The
      Chiltern Railway Company -MOLA - Class 165

                	
                  1. The Great Rolling
      Stock Company
      Limited

                  2. The Chiltern Railway
      Company

                
	
                  69

                	
                  Quiet Enjoyment Letter Re: First
      Capital Connect – MOLA

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. First Capital
      Connect

                
	
                  56a

                	
                  Quiet Enjoyment Letter Re:
      Hull Trains - Class
      180

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. Hull Trains Company
      Limited

                
	
                  70

                	
                  Master Head Lease
      Agreement

                	
                  3. The Great Rolling Stock Company
      Limited

                  4. Angel Trains
      Limited

                
	
                  71

                	
                  76 x Lease
      Schedules

                	
                  1. The Great Rolling Stock
      Company

                  2. Angel Trains
      Limited

                
	
                  72

                	
                  Master Head Lease
      Agreement

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. Angel Leasing Company
      Limited

                
	
                  73

                	
                  Lease
    Schedule

                	
                  1. The Great Rolling Stock Company
      Limited

                  2. Angel Leasing Company
      Limited

                

        

      

       

      
        
          
          

        

        
          69

          
            

          

        

        
          
          

        

      

       

      
        Part
C – Movement of EU Assets out of UK

      

       

      
        
          	
                  No.

                	
                  Document

                	
                  Parties

                
	
                  1

                	
                  Purchase Agreement (Alstom)
      (Danish assets)

                	
                  1. Angel Trains Switzerland
      AG

                  2. Angel Trains
      Limited

                  3. Angel Trains International
      Limited

                
	
                  2

                	
                  Bill of
Sale

                	
                  Angel Trains
      Limited

                
	
                  3

                	
                  Call-Off
    Notice

                	
                  1. Angel Trains Switzerland
      AG

                  2. Angel Trains
      Limited

                  3. Angel Trains International
      Limited

                
	
                  4

                	
                  Assignment Agreement (in respect
      of Lease, Security assignment, Arriva assignment and guarantee - Arriva)
      (Danish assets)

                	
                  1. Angel Trains International
      Limited

                  2. Angel Trains
      Limited

                
	
                  5

                	
                  Assignment Agreement (in respect
      of Purchase Agreement - Alstom)

                	
                  1. Angel Trains Switzerland
      AG

                  2. Angel Trains
      Limited

                
	
                  6

                	
                  Novation of Direct
      Agreement

                	
                  1. Angel Trains Switzerland
      AG

                  2. Angel Trains
      Limited

                  3. Arriva International Trains
      (Leasing) Limited

                  4. Alstom LHB
      GmbH

                
	
                  7

                	
                  Letter of Notice of Assignment (in
      respect of Lease - Arriva)

                	
                  1. Angel Trains International
      Limited

                  2. Angel Trains
      Limited

                  3. Arriva International Trains
      (Leasing) Limited

                
	
                  8

                	
                  Letter of Notice of Assignment (in
      respect of Purchase Agreement - Arriva)

                	
                  1. Angel Trains Switzerland
      AG

                  2. Angel Trains
      Limited

                  3. Alstom LHB
      GmbH

                
	
                  9

                	
                  Letter of Notice of
      Assignment

                	
                  1. Angel Trains International
      Limited

                  2. Angel Trains
      Limited

                  3. Busdan 21
      Aps

                
	
                  10

                	
                  Letter of Notice of Assignment (in
      respect of Guarantee - Arriva)

                	
                  1. Angel Trains International
      Limited

                  2. Angel Trains
      Limited

                  3. Arriva Skandinavien
      a/s

                
	
                  11

                	
                  Quiet Enjoyment
      Letter

                	
                  1. Angel Trains International
      Limited

                

        

      

       

      
        
          
          

        

        
          70

          
            

          

        

        
          
          

        

      

       

      
        
          	
                  No.

                	
                  Document

                	
                  Parties

                
	
                  12

                	
                  Quiet Enjoyment
      Letter

                	
                  1. Angel Trains Switzerland
      AG

                
	
                  13

                	
                  Debt cancellation
      deed

                	
                  1. Angel Trains Switzerland
      AG

                  2. Angel Trains International
      Limited

                
	
                  14

                	
                  Purchase
      Agreement

                	
                  1. Angel Trains Switzerland
      AG

                  2. Angel Trains International
      Limited

                  3. Angel Trains Europa
      GmbH

                
	
                  15

                	
                  2 x Bills of
      Sale

                	
                  Angel Trains International
      Limited

                
	
                  16

                	
                  3 x Call-Off
      Notices

                	
                  1. Angel Trains Switzerland
      AG

                  2. Angel Trains International
      Limited

                
	
                  17

                	
                  Quiet Enjoyment Letter for
      DSB

                	
                  Angel Trains Switzerland
      AG

                
	
                  18

                	
                  Purchase
      Agreement

                	
                  1. Angel Trains Switzerland
      AG

                  2. Locomotion Capital
      (UK)
Limited

                
	
                  19

                	
                  Bill of
Sale

                	
                  Locomotion Capital (UK)
Limited

                
	
                  20

                	
                  3 x Call-Off
      Notices

                	
                  1. Angel Trains Switzerland
      AG

                  2. Locomotion Capital
      (UK)
Limited

                
	
                  21

                	
                  Purchase
      Agreement

                	
                  1. Angel Trains Cargo
      (Locomotives) NV

                  2. Locomotion Capital
      (UK)
Limited

                
	
                  22

                	
                  Bill of
Sale

                	
                  Locomotion Capital (UK)
Limited

                
	
                  23

                	
                  2 x Call-Off
      Notices

                	
                  1. Angel Trains Cargo
      (Locomotives) NV

                  2. Locomotion Capital
      (UK)
Limited

                
	
                  24

                	
                  Amendment Agreement in respect of
      Head Lease between LocoCap, Cargo NV and Cargo GmbH for the HGK
      unit

                	
                  1. Locomotion Capital
      (UK) Limited

                  2. AT Cargo (Locomotives)
      GmbH

                  3. AT Cargo (Locomotives)
      NV

                
	
                  25

                	
                  Amendment Agreement in respect of
      Head Lease between LocoCap, Cargo NV and Cargo GmbH for the 1000116
      unit)

                	
                  1. Locomotion Capital
      (UK) Limited

                  2. AT Cargo (Locomotives)
      GmbH

                  3. AT Cargo (Locomotives)
      NV

                
	
                  26

                	
                  Master Head Lease
      Agreement

                	
                  1. Angel Trains Switzerland
      AG

                  2. Angel Trains International
      Limited

                
	
                  27

                	
                  4 x Lease
      Schedules

                	
                  1. Angel Trains Switzerland
      AG

                  2. Angel Trains International
      Limited

                

        

      

       

      
        
          
          

        

        
          71

          
            

          

        

        
          
          

        

      

       

      
        
          	
                  No.

                	
                  Document

                	
                  Parties

                
	
                  28

                	
                  Master Head Lease
      Agreement

                	
                  1. Angel Trains Switzerland
      AG

                  2. Locomotion Capital
      (UK)
Limited

                
	
                  29

                	
                  2 x Lease
      Schedules

                	
                  1. Angel Trains Switzerland
      AG

                  2. Locomotion Capital
      (UK)
Limited

                
	
                  29a

                	
                  Lease
    Schedule

                	
                  1. Angel Trains Switzerland
      AG

                  2. Angel Trains Europa
      GmbH

                
	
                  30

                	
                  Deed of Release (in respect of CON
      1)

                	
                  3. Vossloh Espana S.A.U.
      

                  4. Vossloh AG 

                  5. Angel Trains Espana S.A.U.
      

                  6. Angel Trains Limited
      

                  7. Angel Trains International
      Limited

                
	
                  31

                	
                  Release Agreement (joint and
      several liability of ATL – CON 1/A) and CON
      1/D

                	
                  1. ATS 

                  2. ATL 

                  3. Bombardier Transportation GmbH
      

                  4.
  ATIL

                

        

      

       

       

      Part
D – Splitting European Order Book

       

      
        
          	
                  No.

                	
                  Document

                	
                  Parties

                
	
                  1

                	
                  Purchase Agreement (Assets
      operated by H.S.A. Beheer N.V.)

                	
                  1. Angel Trains Cargo
      (Locomotives) NV

                  2. RBS Asset Finance Europe
      Limited

                
	
                  2

                	
                  Letter requesting consent to
      Sale and Novation and agreement
      thereto

                	
                  1. Angel Trains Cargo
      (Locomotives) NV

                  2. H.S.A Beheer
      N.V.

                
	
                  3

                	
                  Not Used

                	
                  Not Used

                
	
                  4

                	
                  Transfer
      Certificate

                	
                  1. RBS Asset Finance Europe
      Limited

                  2. Angel Trains Cargo
      (Locomotives) NV

                
	
                  5

                	
                  Head Lease (Assets operated by
      H.S.A. Beheer N.V.)

                	
                  1. Angel Trains Cargo
      (Locomotives) NV.

                  2. RBS Asset Finance Europe
      Limited

                

        

      

       

      
        
          
          

        

        
          72

          
            

          

        

        
          
          

        

         

        
          
            	
                    No.

                  	
                    Document

                  	
                    Parties

                  
	
                    6

                  	
                    Purchase Agreement (Assets
      operated by SNCB)

                  	
                    1 Angel Trains Cargo (Locomotives)
      NV.

                    2. RBS Asset Finance Europe
      Limited

                  
	
                    7

                  	
                    Head Lease (Assets operated by
      SNCB)

                  	
                    1. Angel Trains Cargo
      (Locomotives) NV.

                    2. RBS Asset Finance Europe
      Limited

                  
	
                    8

                  	
                    Notification of Sale

                  	
                    Angel Trains Cargo (Locomotives)
      N.V.

                  
	
                    9

                  	
                    Order Book
      Agreement

                  	
                    1. RBS Asset Finance Europe
      Limited

                    2. Angel Trains Switzerland
      AG

                    3. Angel Trains
      Limited

                    4. Angel Trains Cargo
      (Locomotives) GmbH

                    5. Angel Trains Europa
      GmbH

                  
	
                    10

                  	
                    Order Book
      Agreement

                  	
                    1. Bordon Inversiones 2007,
      S.L.

                    2. Angel Trains Espana
      A.S

                    3. Angel Trains
    Limited

                  
	
                    11

                  	
                    Order Book
      Agreement

                  	
                    1. RBS Asset Finance Europe
      Limited

                    2. Angel Trains Cargo
      (Locomotives) NV

                    3. Angel Trains
      Limited

                  
	
                    12

                  	
                    Framework
      Agreement

                  	
                    1. RBS Asset Finance Europe
      Limited

                    2. ATIL

                  
	
                    13

                  	
                    Agency
    Letter

                  	
                    1. Bordon Inversiones 2007,
      S.L.

                    2. RBS Asset Finance Europe
      Limited

                  
	
                    14

                  	
                    RBS
    Guarantee

                  	
                    The Royal Bank of Scotland
      plc

                  

          

        

         

        
          
            
            

          

          
            73

            
              

            

          

          
            
            

          

        

         

        
          Part
E – Orphan Arrangements

           

        

        
          
            	
                    No.

                  	
                    Document

                  	
                    Parties

                  
	
                    1

                  	
                    Board Minutes
      approving:

                    (a) amended articles of
      association

                    (b) option
      agreement

                    (c) amendment to zero coupon
      bond

                  	
                    R31

                  
	
                    2

                  	
                    Written
      resolution

                  	
                    RBS Group
    plc

                  
	
                    3

                  	
                    Zero Coupon Bond
      Amendment to remove conversion
      feature

                  	
                    RBS Group plc

                    R31

                  

          

        

         

      

      
        
          
          

        

        
          74

          
            

          

        

        
          
          

        

         

      

      Schedule
14
EU
Business

    

    

    

    

    

    
      
        
        

      

      
        75

        
          

        

      

      
        
        

      

    

    

     

    

    
      080521 Schedule
14

      (MH) - Reconciles to
B

       

      [Pdf
incorporated into soft copy of the document to be printed and included in the
SPA in place of this page]

      

      

      
        
          
          

        

        
          76

          
            

          

        

        
          
          

        

      

       

      Schedule
15

      Deferred
Amounts

      

      The Purchaser
shall, on each of the dates set out in the “Deferred Amount Payment Date” column
of the table below (or if such date is not a Business Day, the first Business
Day thereafter), pay the corresponding amount in the “Deferred Amount” column to
the Seller (each a “Deferred
Amount” and collectively the “Deferred
Amounts”).

      

      

      
        	
                Deferred
      Amount Payment Date

              	
                Deferred
      Amount (£)

              
	 
      	 
      
	
                31/03/2009

              	
                2,557,078.00

              
	
                30/09/2009

              	
                3,042,922.00

              
	
                31/03/2010

              	
                7,700,000.00

              
	
                30/09/2010

              	
                7,700,000.00

              
	
                31/03/2011

              	
                2,100,000.00

              
	
                30/09/2011

              	
                2,100,000.00

              
	
                31/03/2012

              	
                2,450,000.00

              
	
                30/09/2012

              	
                2,450,000.00

              
	
                31/03/2013

              	
                2,800,000.00

              
	
                30/09/2013

              	
                2,800,000.00

              
	
                31/03/2014

              	
                3,150,000.00

              
	
                30/09/2014

              	
                3,150,000.00

              
	
                31/03/2015

              	
                4,900,000.00

              
	
                30/09/2015

              	
                4,900,000.00

              
	
                Total

              	
                51,800,000

              

      

      

      

      
        
          
          

        

        
          77

          
            

          

        

        
          
          

        

      

       

      AGREED FORM SWISS
LETTERS OF RESIGNATION

      

      An
den Präsidenten des Verwaltungsrats

      Angel Trains
Switzerland AG

      Bergstr.
107

      8032
Zürich

      

      

      

      

      

      

      Betrifft:
Rücktritt aus dem Verwaltungsrat

      

      

      Der Unterzeichnende
erklärt hiermit seinen Rücktritt aus dem Verwaltungsrat der Angel
Trains

      Switzerland AG mit
Sitz in Zürich mit sofortiger Wirkung.

      

      

      

      

      Zürich, den
___________________

      

      

      

      _________________________________

      Martin
Dürst

      
 

      
        
          
          

        

        
          78

          
            

          

        

        
          
          

        

      

      

      An
den Präsidenten des Verwaltungsrats

      Angel Trains
Switzerland AG

      Bergstr.
107

      8032
Zürich

      

      

      

      

      Betrifft:
Rücktritt aus dem Verwaltungsrat

      

      Der Unterzeichnende
erklärt hiermit seinen Rücktritt aus dem Verwaltungsrat der Angel
Trains

      Switzerland AG mit
Sitz in Zürich

      mit sofortiger
Wirkung.

      

      

      

      

      Zürich, den
___________________

      

      

      

      _________________________________

      Gerhard
Müller

      
 

      
        
          
          

        

        
          79

          
            

          

        

        
          
          

        

         

      

      AGREED FORM GERMAN
LETTERS OF RESIGNATION

      

      Per
Einschreiben/Rückschein

      Angel Trains Cargo
(Locomotives) Limited

      - Geschäftsführung
-

      [Anschrift]

       

      [Datum]

      

      

      Betr.: Niederlegung
des Amtes des Geschäftsführers der Angel Trains Cargo (Locomotives)

      GmbH

      

      Sehr geehrter Herr
[...],

      

      

      als Geschäftsführer
der im Handelsregister des Amtsgerichts Köln unter HRB 51341 eingetragenen Angel
Trains Cargo (Locomotives) GmbH lege ich mit sofortiger Wirkung – lediglich
aufschiebend bedingt durch den Zugang dieser Erklärung bei dem alleinigen
Gesellschafter der Angel Trains Cargo (Locomotives) GmbH, der Angel Trains Cargo
(Locomotives) Limited – mein Amt als Geschäftsführer der Angel Trains Cargo
(Locomotives) GmbH nieder.

      

      Ich bestätige,
keine Ansprüche gegen die Angel Trains Cargo (Locomotives) GmbH zu haben und
nicht mehr im Besitz von Gegenständen, Dokumenten, Datenträger u.ä. der Angel
Trains Cargo (Locomotives) GmbH zu sein. Sollte ich dennoch zu einem späteren
Zeitpunkt solche Gegenstände u.ä. in meinem Besitz feststellen, werde ich diese
unverzüglich ohne Geltendmachung eines Zurückbehaltungsrechts der Angel Trains
Cargo (Locomotives) GmbH herausgeben.

      

      

      Mit freundlichen
Grüßen

      

      

      _________________________

      [Unterschrift
Achim Klüber]

      

      

      
        
          
          

        

        
          80

          
            

          

        

        
          
          

        

      

      

      Per
Einschreiben/Rückschein – vorab per Telefax

      Angel Trains
International Limited

      - Geschäftsführung
-

      [Anschrift]

      

      
 

      [Datum]

      

      

      Betr.: Niederlegung
des Amtes des Geschäftsführers der Angel Trains Europa GmbH

      

      

      Sehr geehrter Herr
[...],

      

      

      als Geschäftsführer
der im Handelsregister des Amtsgerichts Köln unter HRB 51575 eingetragenen Angel
Trains Europa GmbH lege ich mit sofortiger Wirkung – lediglich aufschiebend
bedingt durch den Zugang dieser Erklärung bei dem alleinigen Gesellschafter der
Angel Trains Europa GmbH, der Angel Trains International Limited – mein Amt als
Geschäftsführer der Angel Trains Europa GmbH nieder.

      

      Ich bestätige,
keine Ansprüche gegen die Angel Trains Europa GmbH zu haben und nicht mehr im
Besitz von Gegenständen, Dokumenten, Datenträger u.ä. der Angel Trains Europa
GmbH zu sein. Sollte ich dennoch zu einem späteren Zeitpunkt solche Gegenstände
u.ä. in meinem Besitz feststellen, werde ich diese unverzüglich ohne
Geltendmachung eines Zurückbehaltungsrechts der Angel Trains Europa GmbH
herausgeben.

      

      

      Mit freundlichen
Grüßen

      

      

      _________________________

      [Unterschrift
Achim Klüber]

      
 

      
        
          
          

        

        
          81

          
            

          

        

        
          
          

        

      

      

      AGREED
FORM VOTING POWER OF ATTORNEY

       

      POWER
OF ATTORNEY

      
 

      This Power of Attorney is made
on [●] 2008 by The Royal Bank of Scotland Group plc (the “Seller”) of 36 St Andrew
Square, Edinburgh, Midlothian EH2 1AF.

      

      
        	
                (A)  

              	
                The Seller is
      presently the registered holder of 50,000 ordinary shares of £1 each and
      61,950,000 non-voting fixed rate preference shares of £1 each (together
      the “Shares”) in
      the share capital of RoboScot (31) Limited (the “Target”).

              

      

      

      
        	
                (B)  

              	
                The Seller
      and Willow Bidco Limited (the “Purchaser”) are parties
      to a Share Purchase Agreement dated [●] 2008 (the “Share Purchase
      Agreement”) pursuant to which the Seller transferred the Shares to
      the Purchaser.

              

      

      

      
        	
                (C)  

              	
                This Power of
      Attorney is given in accordance with the terms of the Share Purchase
      Agreement.

              

      

      

      
        	
                1  

              	
                Appointment

              

      

      

      The Seller appoints
the Purchaser (the “Attorney”) to be its attorney
and to act in the name of the Seller and on its behalf to exercise all rights,
powers and privileges attaching to the Shares or otherwise capable of being
exercised by the registered holder of the Shares and for this purpose to
approve, sign, execute (as a deed or otherwise) and deliver any document and do
any act or thing which the Attorney considers necessary or desirable pending the
Attorney becoming the registered holder of the Shares including (without
limitation):

      

      
        	
                1.1  

              	
                to attend and
      participate in any general or separate class meeting of the
      Target;

              

      

      

      
        	
                1.2  

              	
                to vote on
      behalf of the Seller in respect of the Shares on any resolution at any
      such meeting;

              

      

      

      
        	
                1.3  

              	
                in connection
      with any such meeting, to appoint proxies on behalf of the Seller in
      respect of the Shares and execute a form of proxy in favour of the
      Attorney or any of its directors;

              

      

      

      
        	
                1.4  

              	
                to consent on
      behalf of the Seller to the holding of any such meeting at short
      notice;

              

      

      

      
        	
                1.5  

              	
                to approve,
      execute and deliver any written resolution of the Target or any consent in
      writing to be given by any holders of any class of shares in the capital
      of the Target or any similar
document;

              

      

      

      
        	
                1.6  

              	
                to sign or
      endorse receipts for any dividends or other distributions in respect of
      the Shares; and

              

      

      

      
        	
                1.7  

              	
                to sell,
      transfer, exchange or otherwise dispose of all or any of the Shares
      (including to enter into any contract and any other ancillary
      documentation in any form whatsoever to do the same) and to receive
      proceeds from any such disposal,

              

      

      

      in each case in
such manner and on such terms as the Attorney in its absolute discretion shall
think fit.

      

      
        
          
          

        

        
          82

          
            

          

        

        
          
          

        

      

      

      
        	
                2  

              	
                Ratification

              

      

      

      The Seller agrees
to ratify and confirm everything lawfully done or lawfully caused to be done by
the Attorney under this Deed.

      

      
        	
                3  

              	
                Revocability

              

      

      

      This appointment
shall terminate when the Shares are registered in the name of the Attorney (or
as the Attorney shall direct) or if earlier upon the expiry of 90 days from the
date hereof, and is given on the basis that the Attorney shall use his
reasonable endeavours to effect such registration as soon as is reasonably
practicable.

      

      
        	
                4  

              	
                Governing
      Law

              

      

      

      This Power of
Attorney shall be governed by and construed in accordance with English
law.

      

      In witness whereof this Power
of Attorney has been delivered on the date first stated above:

       

       

      

       

      
        	
                SIGNED as a
      DEED by

              		 
	 	 
	 	 
	
                on behalf of
      The Royal Bank of
      Scotland Group
      Plc

                in the
      presence of:

              	
                (signature)

              
	 	 
	
                __________________________  (signature of
      witness)

                Name

                Address

              	 	 

      

       

      Occupation

       

      83EXHIBIT
4.14

       

       

      EXECUTION
COPY

       

       

       

       

      SHARE
PURCHASE AGREEMENT

       

       

       

       

      between

       

      THE
ROYAL BANK OF SCOTLAND PLC and

       

      TESCO
PLC

       

      relating to the
sale and purchase of part of the issued share capital of

       

      Tesco
Personal Finance Group Limited

       

      Dated
28th July 2008

       

       

      DUNDAS
& WILSON CS LLP

       

      Saltire
Court

      20
Castle Terrace 
Edinburgh

      EH1
2EN

       

      Tel 0131 228
8000

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      
 

      INDEX

       

      
        	
                CLAUSE

              	
                PAGE

              
	 	 	 
	
                1. 

              	
                Definitions
      and
      Interpretation                                                                                         

              	
                 
      3

              
	
                2. 

              	
                Sale and
      Purchase of
      Shares                                                                                         

              	
                17

              
	
                3.

              	
                Consideration                                                                                         

              	
                18

              
	
                4.

              	
                Conditions                                                                                         

              	
                18

              
	
                5. 

              	
                Interim
      Period                                                                                         

              	
                21

              
	
                6. 

              	
                Completion                                                                                         

              	
                21

              
	
                7.

              	
                Fixed Interim
      Dividend                                                                                         

              	
                22

              
	
                8.

              	
                Refinancing
      of Seller Group
      Loans                                                                                         

              	
                23

              
	
                9.

              	
                Post-signing
      Payments                                                                                         

              	
                24

              
	
                10.

              	
                Warranties                                                                                         

              	
                26

              
	
                11.

              	
                Purchaser’s
      Undertakings                                                                                         

              	
                28

              
	
                12.

              	
                Anti-Embarrassment                                                                                         

              	
                29

              
	
                13. 

              	
                Seller’s
      Undertakings                                                                                         

              	
                31

              
	
                14. 

              	
                Tax
      Deed                                                                                         

              	
                33

              
	
                15. 

              	
                Insurance                                                                                         

              	
                33

              
	
                16. 

              	
                Guarantees                                                                                         

              	
                35

              
	
                17. 

              	
                Protective
      Covenants                                                                                         

              	
                35

              
	
                18. 

              	
                Pensions                                                                                         

              	
                37

              
	
                19.

              	
                Confidentiality                                                                                         

              	
                38

              
	
                20.

              	
                Announcements                                                                                         

              	
                40

              
	
                21. 

              	
                Further
      Assurance                                                                                         

              	
                40

              
	
                22. 

              	
                Notices                                                                                         

              	
                42

              
	
                23.

              	
                Assignation                                                                                         

              	
                43

              
	
                24.

              	
                Withholdings
      and Gross
      Up                                                                                         

              	
                44

              
	
                25.

              	
                Costs                                                                                         

              	
                45

              
	
                26.

              	
                Payments                                                                                         

              	
                45

              
	
                27.

              	
                Entire
      Agreement                                                                                         

              	
                46

              
	
                28.

              	
                Variation                                                                                         

              	
                46

              
	
                29.

              	
                Survival of
      Provisions                                                                                         

              	
                47

              
	
                30.

              	
                Invalidity                                                                                         

              	
                47

              
	
                31.

              	
                Waivers                                                                                         

              	
                47

              
	
                32.

              	
                Governing Law
      and
      Jurisdiction                                                                                         

              	
                48

              

      

      

       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      

        
          	
                  SCHEDULE

                	 
    
	 	 
	
                  Part
      1     Particulars of the Company and the
      Subsidiaries

                	
                  49

                
	
                  Part
      2     Completion

                	
                  59

                
	
                  Part
      3     The Conditions

                	
                  63

                
	
                  Part
      4     The Interim Period

                	
                  64

                
	
                  Part
      5     The Warranties

                	
                  67

                
	
                  Part
      6     Purchaser’s Warranties

                	
                  83

                
	
                  Part
      7     The Intellectual Property Rights

                	
                  84

                
	
                  Part
      8     The Tax Deed

                	
                  92

                
	
                  Part
      9     Limitations on Seller’s
Liability

                	
                  107

                
	
                  Part
      10   Short Particulars of Property

                	
                  114

                
	
                  Part
      11   The Properties

                	
                  116

                
	
                  Part
      12   TPF Counterparties

                	
                  125

                
	
                  Part
      13   Repayment of Seller Group Loans

                	
                  126

                
	
                  Part
      14   Hanco Services

                	
                  128

                

        

      

       

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

       

       

      THIS AGREEMENT is made on
28th July 2008

       

      BETWEEN

       

      THE ROYAL BANK OF SCOTLAND PLC
a company incorporated in Scotland (registered number SC090312) whose registered
office is at 36 St Andrew Square, Edinburgh, EH2 2YB (the Seller); and

       

      TESCO PLC a company
incorporated in England and Wales (registered number 00445790) whose registered
office is at Tesco House, Delaware Road, Cheshunt, Herts, EN8 9SL (the Purchaser).

       

      INTRODUCTION

       

      A.       
 TESCO PERSONAL
FINANCE GROUP LIMITED is a private limited company incorporated in
Scotland (registered number SC173198) (the Company) details of which are
set out in Part 1 of the Schedule (Particulars of the
Company).

       

      B.
        Pursuant to the
terms of a shareholders’ agreement dated 12 August 1997 and amended and
restated on 13 September 1999, 29 November 2002, and further amended by a side
letter dated 28 April 2008 (the JV Agreement), the Seller and
the Purchaser agreed to operate the Group as a joint venture.

       

      C.       
 The Seller is the
legal and beneficial owner of 124,089,500 A ordinary shares of 10p each in the capital
of the Company (the Shares) and, as such, has the
right, power and authority to sell and transfer the Shares pursuant to the terms
of this Agreement.

       

      D.       
 The Purchaser and
the Seller have now agreed that the Purchaser will acquire the Shares on the terms
and subject to the conditions of this Agreement and that the JV Agreement shall
be terminated pursuant to the terms of the General Termination
Agreement.

       

      E.         The
Purchaser and the Seller have also agreed that this Agreement should act as a
framework between
the parties for (i) the termination of the JV Agreement and the Existing
Contractual Arrangements, (ii) the governance of the operation of the Business
in the Interim Period and (iii) the implementation of the New Contractual
Arrangements.

       

      NOW
IT IS AGREED as follows:

       

      
        	
                1.

              	
                DEFINITIONS AND
      INTERPRETATION

              

      

       

      
        	
                1.1

              	
                In this
      Agreement, unless the context otherwise requires, the following words
      and

              

      

       

      
        	
                 
      

              	
                phrases have
      the meanings stated:

              

      

       

      Accounts means, for any
financial year, the audited balance sheet of the Company (and, where relevant,
the audited consolidated balance sheet of the Group) and the

       

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

       

      audited profit and
loss account of the Company (and, where relevant, the audited consolidated
profit and loss account of the Group), in each case as at the Accounts Date, as
set out in the Disclosure Documents, together with any notes to, and the
auditors’ report on, those accounts, the directors’ report and all other
documents or statements which are required by law to be annexed to or
incorporated in those accounts.

       

      Accounts Date means 31
December.

       

      Act means the Companies Act
1985 and the Companies Act 2006, each in so far as in force at the date of this
Agreement. Any provision of the Companies Act 1985 shall be treated (where and
when applicable) as being a reference to the provision (or provision(s) most
nearly corresponding to it) in the Companies Act 2006 or in any subordinate
legislation made under the Companies Act 2006.

       

      Affiliate means, in relation
to any body corporate (whether or not registered in the United Kingdom), any
holding company or subsidiary of such body corporate or any subsidiary of a
holding company of such body corporate.

       

      Analysis of Costs means the
following Disclosure Documents:

       

      D. Questions & Answers/Documents
referred to in responses - “167 Total RBS Rec of costs 2006 for data
room”

       

      B. Financial/1. Historic Profit and
Loss (including Current Trading Performance and Cashflows)/1.2 - “Total
RES Rec of costs for Data Room”

       

      D. Questions & Answers/Documents
referred to in responses - “167 Total RBS Rec of costs 2008 for data
room”

       

      D. Questions & Answers /Documents
referred to in responses - “35&37 RBS charges V2”

       

      D. Questions & Answers /Documents
referred to in responses - “432 & 433 Project Opal Financials
Manufacturing - For Emerald 17-06-08 v.2”

       

      Document 11 annexed to the Schedule
to the Disclosure Letter - Project Opal Charges matrix DD21 July
5pm.xls

       

      Document 19 annexed to the Schedule
to the Disclosure Letter - Project Opal Charges Matrix DD 25 July
11am

       

      Appointed Representative
Agreement means the amended Appointed Representative Agreement between
Tesco Stores and UKI in the agreed form.

       

      ATM CSA means the commercial
services agreement in respect of automated teller machines amongst the Seller,
TPFL and the Purchaser in the agreed form.

       

      ATM (Provision of Cash)
Agreement means the agreement for the provision of cash through ATMs in
respect of automated teller machines amongst the Seller, TPFL and Tesco Stores
in the agreed form.

       

      Banking CSA means the
commercial services agreement in respect of banking business amongst the Seller,
the Purchaser and TPFL in the agreed form.

       

      Business means the business of
providing, introducing or the arranging of financial services or products to the
general public and small businesses (including customers

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

       

      of
the Purchaser’s Group), as carried out by the Group as at the date of this
Agreement, whether as principal, agent or intermediary, including;

       

      (a)  the provision,
introduction or the arranging of general and life insurance products, including
those products underwritten by UKI and Direct Line;

       

      (b)  the provision of
banking services, lending, savings and credit cards (and ancillary
products);

       

      (c)  the provision and
operation of ATMs (wherever located); and

       

      (d)  the comparative
aggregator and insurance introduction website business of TPF
Compare.

       

      Business Day means 9.00 am. to
5.00 p.m. on any day (other than a Saturday or Sunday or a public holiday in
England or Scotland) on which clearing banks are open for the transaction of
normal banking business in London and Edinburgh.

       

      Business IPRs
means the Owned IPRs and all other registered and material unregistered
Intellectual Property Rights required to carry out the Business immediately
prior to the date of signature of this Agreement.

       

      Business Plan
means the 5 year business plan of the Group, entitled “Updated Summary
2006-2011 xls”, contained in the Data Room Documents at B. Financial/3. Forward
Projections/3.2.

       

      Cash Handling
Contract means the contractual arrangements between Tesco Stores and the
Seller relating to the provision by the Seller of cash handling
services.

       

      Claim means a
claim by the Purchaser under or in relation to the Non Tax Warranties or a claim
by the Purchaser under or in relation to the Repeated Warranties (other than
Warranty 14.1), as provided in Clause 10.1.1(b).

       

      Company means
Tesco Personal Finance Group Limited, details of which are set out in Section A
of Part 1 of the Schedule (Particulars of the
Company).

       

      Compare CSA
means the commercial services agreement in respect of the comparison
website services run by TPF Compare amongst the Seller and TPF Compare in the
agreed form.

       

      Completion
means the completion of the sale and purchase of the Shares in accordance
with the terms of this Agreement.

       

      Completion Date
means the date of Completion pursuant to Clause 6.

       

      Conditions
means the conditions to Completion set out in Part 3 of the
Schedule.

       

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

       

      Confidential Information means
all information relating to the subject matter, provisions or negotiation of
this Agreement or any document referred to in this Agreement, and all
information regarding the businesses of the Purchaser’s Group and the Seller’s
Group, insofar as such information is obtained by the Purchaser or the Seller
(as appropriate) in connection with or as a result of the subject matter,
provisions or negotiation of this Agreement or any document referred to in this
Agreement.

       

      Consideration means the
consideration payable for the Shares set out in Clause 3 (Consideration).

       

      Customer Account means an
account or policy held by a customer of the Group with either a Group Company or
UKI (as applicable).

       

      Customer Data and Records
means collectively, all data, files, and information (whether current or
historic) relating to customers of the Group or applications to become customers
of the Group and Customer Accounts, including:

       

      (a)  the TPF Data (as
defined in the Banking CSA);

       

      (b)  the TPF Compare
Data (as defined in the Compare CSA);

       

      (c)  the TPF Data (as
defined in the Life Insurance Distribution Agreement);

       

      (d)  the TPFL Data (as
defined in the General Insurance Distribution Agreement);

       

      
        and

      

       

      (e)the TPF Data (as
defined in the ATM CSA),

       

      in
each case whether stored electronically or in hard copy and whether in aggregate
form or segregated by Group customer identity, document or record type insofar
as the same are in the possession, custody or control of any member of the
Seller’s Group as at the Completion Date, but specifically
excluding:

       

      (x)  any data, files or
information which the Seller is in possession of to the extent that the Seller has
acquired such data, files or information other than through the Business;
or

       

      (y)  any brands and
products not forming part of the Business.

       

       

      Data Room Documents means the
documents made available for inspection by the Seller at https://collab dundas-wilson.com (under the
title “Project Opal”) as at midday on Friday, 18 July 2008 and as included on
the DVD attached to the Disclosure Letter.

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

       

      Direct Line means Direct Line
Life Insurance United, a company incorporated in England and Wales with company
number 02199286 and registered office at 3, Edridge Road, Croydon, Surrey CR9
1AG.

       

      Disclosure Documents means (i)
the documents accompanying the Disclosure Letter and listed in the Schedule
annexed to the Disclosure Letter and (ii) the Data Room Documents.

       

      Disclosure Letter means the
disclosure letter from the Seller to the Purchaser signed and delivered
immediately prior to the execution of this Agreement.

       

      Employment Matters Agreement
means the agreement in relation to the Head Office Employees of the
Seller or the Sellers Group among the Seller, the Purchaser and Tesco Stores
entered into on the date hereof.

       

      Encumbrance means any interest
of any person (including any right to acquire, option or eight of pre-emption or
conversion) or any charge, mortgage, security interest, floating charge, pledge,
hypothec, lien or other security arrangement or agreement, or any agreement to
create any of the above.

       

      Event means any event, act,
transaction, arrangement, default or omission or combination
thereof.

       

      Existing Contractual
Arrangements means all existing service arrangements, in whatever form,
as at the date of this Agreement between the Seller (or any member of the
Sellers Group) and the Company or the Purchaser (or members of their respective
Groups) relating to the Business.

       

      Fixed Interim Dividend has the
meaning given to it in Clause 7.1;

       

      Forthstone Sublease means the
sublease in the agreed form to be entered into between the Seller and Tesco
Stores pursuant to Part 11 of the Schedule in relation to the Property at
Forthstone, Edinburgh Park, Scotland.

       

      General Insurance Distribution
Agreement means the general insurance distribution agreement amongst the
Purchaser, TPFL, UKI, RBSI and RBS Insurance Services entered into on the date
hereof.

       

      General Termination Agreement
means the agreement in the agreed form between, amongst others, the
Seller and the Purchaser to be entered into at Completion relating to the
termination of certain provisions of the JV Agreement and other Existing
Contractual Arrangements.

       

      Group means the Company and
the Subsidiaries.

       

      Group Company means the
Company or any of the Subsidiaries.

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

       

      Guarantee means any guarantee,
indemnity, cautionary obligation, letter of comfort, security, right of set-off
or other obligation given or undertaken by a person to guarantee or support the
obligations (whether actual or contingent) of any other person.

       

      Hanco means
Hanco ATM Systems Limited, a company incorporated in England and Wales (registered number 03904039)
whose registered office is at Level 8 Premier Place, Devonshire Square, London
EC2M 4BA.

       

      Head Office
Employees has the meaning given to it in the Employment Matters
Agreement.

       

      Insurance
Termination Agreement means the agreement to be entered into on the date
hereof amongst TPFL, UKI and Direct Line relating to the
termination of existing service agreements between (1) TPFL and UKI; and (2) TPFL
and Direct Line, respectively.

       

      Interim Period means the
period beginning on the date of this Agreement and ending immediately prior to
Completion.

       

      Intellectual Property Rights
or IPRs means (a)
patents; (b) petty patents and utility model rights; (c) trade marks; (d)
service marks; (e) logos; (f) rights in get-up; (g) trade names; (h) internet
domain names; (i) design rights; co semi-conductor topography rights; (k)
copyrights (including rights in computer software); (I) database rights; (m)
rights in performances; (n) the moral rights set out in Chapter IV of Part I of
the Copyright, Designs and Patents Act 1988 (as amended from time to time); (o)
and/or product packaging and (p) rights in know how and other intellectual
property rights, in each case whether registered or unregistered and including
applications for registration and all rights or forms of protection having
equivalent or similar effect anywhere in the world.

       

      Last Accounts means the
Accounts in respect of the financial year ended on the Last Accounts
Date.

       

      Last Accounts Date means 31
December 2007.

       

      Last UKI Accounts means the
audited balance sheet of UKI (and, where relevant, the audited consolidated
balance sheet of the UKI Group) and the audited profit and loss account of UKI
(and, where relevant, the audited consolidated profit and loss account of the
UKI Group), in each case as at the Last Accounts Date, together with any notes
to, and the auditors’ report on, those accounts, the directors’ report and all
other documents or statements which are required by law to be annexed to or
incorporated in those accounts.

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

       

      LIBOR means the three month
London Interbank Offered Rate as quoted from time to time on Bloomberg page
BP0003M.

       

      Licence means any licence,
consent, permit, certificate, registration or authorisation required by law for
the operation of the Business by any Group Company.

       

      Life Insurance Distribution
Agreement means the life distribution agreement between RBS Insurance
Services, TPF, the Purchaser and Direct Line dated the date hereof.

       

      Management Accounts means the
following Data Room Documents.

       

      B. Financial/1.Historic Profit and
Loss (including Current Trading Performance and Cashflows)/1.1 -
“TPF_Mgt_Accounts_LP_Dec_07.xIs”

       

      B. Financial/Historic Profit and Loss
(including Current Trading Performance and Cashflows/1.1 – “Mgmt
Accts
April 08 TPF.xls”

       

      B. Financial/Historic Profit and Loss
(including Current Trading Performance and Cashflows/1.1 - “Mgmt
Accts
May 08 TPF.xls”

       

      B. Financial/Historic Profit and Loss
(Including Current Trading Performance and Cashflows)/1.2/1.2(b) -
“Updated summary
2006-2011”

       

      D. Questions & Answers/Documents
referred to in responses - ‘‘62&63 April 2008 Management
Accounts”

       

      Margin Analysis Overview means
the following Data Room Document:

       

      B.
Financial/5. Actuarial and Insurance/5.8/5.8(a) -

       

      “TPF_Reserve_Margins_and_Prior_Year
Releases_Over Period_2005_to_2007_Range_Valued_2.xls”

       

      Material Adverse Change means
any Event which constitutes a breach by the Seller of any undertaking given by
it in Part 4 of the Schedule, that has a material adverse effect on the
Group or any Group Company. In this context, material means an aggregate
increase in costs or liabilities or a reduction in profits or in the value of
the assets of the Group or any Group Company of £150,000,000 or
more.

       

      New Contractual Arrangements
means the Appointed Representative Agreement, the Banking CSA, the General
Insurance Distribution Agreement, the Compare CSA, the ATM CSA, the ATM
(Provision of Cash) Agreement, the Employment Matters Agreement, the Life
Insurance Distribution Agreement, the Ulster Bank Employment Matters Agreement,
the Forthstone Sublease, the Redhill Sublease and the licence arrangements
contained in Part 11 to the Schedule and New Contractual Arrangement
shall be construed accordingly.

       

      Non Tax Warranties means the
Warranties other than the Tax Warranties.

       

      Owned IPRs means the
registered and material unregistered Intellectual Property Rights owned by the
Group.

       

      Owned Registered IPR means the
registered Owned IPR. The Owned Registered IPRs are listed in Part 7 of the
Schedule.

       

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

       

      Properties means the leasehold
properties, short particulars of which are set out in Part 10 of the
Schedule.

       

      Purchaser Appointed Directors
means the directors of the Company (and the Subsidiaries) appointed by the
Purchaser pursuant to the JV Agreement.

       

      Purchaser Obligation means
any representation,
warranty or undertaking to indemnify (including, without limitation, any
covenant to pay pursuant to the Tax Deed) given by the Purchaser to the Seller
under this Agreement.

       

      Purchaser’s Bank Account means
such bank account as the Purchaser may notify to the Seller, from time to time,
in writing.

       

      Purchaser’s Documents means
the documents (other than this Agreement) to be executed by the Purchaser at
Completion referred to in Clause 6.3.2 and set out in Section B of Part 2 of the
Schedule (Completion).

       

      Purchaser’s Group means the
Purchaser and any of its Affiliates (including, following Completion, each Group
Company).

       

      Purchaser’s Solicitors means
Freshields Bruckhaus Deringer LLP of 65 Fleet Street, London EC4Y
INS.

       

      Purchaser’s Warranties means
the warranties contained in Part 6 of the Schedule (Purchaser’s Warranties).

       

      RBSI means RBS Insurance Group
Limited, a company incorporated in England and Wales (registered number
02280426) whose registered office is at Churchill Court, Westmoreland Road,
Bromley, Kent, BR1 1DP.

       

      RBS Insurance Services means
RBS Insurance Services Limited, a company incorporated in England and Wales
(registered number 03001989) whose registered address is at 3 Edridge Road,
Croydon, CR9 1AG.

       

      Reconciliation Schedule means
the following Disclosure Documents:

       

      Document
14 annexed to the Schedule to the Disclosure Letter Reconciliation Schedule —
“TPF Actuarial_vs_Finance_0712 reconciliation”

       

      Redhill Sublease means the
sublease in the agreed form to be entered into between Lombard Northern Central
plc and Tesco Stores pursuant to Part 11 of the Schedule in relation to the
Property at Redhill, Surrey.

       

      Regulatory Authority means any
government, governmental or regulatory body, agency, commission or authority
(whether in the United Kingdom or otherwise) to which either party or the Group
is subject or submits.

       

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

       

      Relevant Market Valuation
means the “mark to market” valuation for each Seller Shareholder Loan calculated
in accordance with Part 13 of the Schedule.

       

      Relief has the meaning set out
in Part 8 of the Schedule (Tax Deed).

       

      Repeated Warranties means the
Warranties except for the Warranties in paragraphs 3.1, 3.2, 3.3, 3.5, 3.6, 3.7,
3.8, 4.1, 4.2, 7.1, 7.4, 8.4, 9.7, 9.8, 10.3, 11.2, 12.2.1, 12.2.3, 13.4.2,
14.2, 15.2, 15.5.2, 15.6, 15.7, 15.8.1, 15.8.2(a), 15.8.2(d), 16.2.6 and 17 of
Part 5 (which, for the purposes of identification only, are marked by an
asterisk (*)) of the Schedule and Repeated Warranty shall be
construed accordingly.

       

      Representatives means, in
relation to a party, its respective Affiliates and the directors, officers,
employees, agents, advisers, accountants and consultants of that party and/or of
its respective Affiliates.

       

      Reserves Report means the
following Disclosure Documents:

       

      B. Financial / 5. Actuarial and
Insurance / 5.8 — “Censored UKI Report 2007Q3.pdf”

       

      Seller Appointed Directors
means the directors of the Company (and the Subsidiaries) appointed by the
Seller pursuant to the JV Agreement.

       

      Seller Hedging Facility means
the back-to-back loan trades and corresponding deposit trades (together, a Back to Back Trade) comprising
the interest rate hedging arrangements between the Seller (through RBS Group
Treasury) and TPFL under which the Seller provides facilities to TPFL to hedge
its position against interest rate changes.

       

      Seller Obligation means any
representation, warranty or undertaking to indemnify (including, without
limitation, any covenant to pay pursuant to the Tax Deed) given by the Seller to
the Purchaser under this Agreement.

       

      Seller Shareholder Loans means
the subordinated shareholder loan facilities between the Seller (as lender) and
TPFL or TPF Compare (as borrower) and Seller Shareholder Loan shall
mean any of them.

       

      Seller Wholesale Loan Facilities means the short
term wholesale rolling credit facilities with maturities of three months or less
between the Seller (as lender) and TPFL (as borrower) and Seller Wholesale Loan
Facility shall mean any one of them.

       

      Seller’s Documents means the
documents (other than this Agreement) to be executed by the Seller at Completion
referred to in Clause 6.2 and set out in Section A of Part 2 of the
Schedule.

       

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

       

      Seller’s Group means the
Seller and any of its Affiliates but excluding each Group Company.

       

      Seller’s Solicitors means
Dundas & Wilson C.S. LLP of Saltire Court, 20 Castle Terrace, Edinburgh, EH1
2EN.

       

      Seller’s Solicitors’ Bank Account
means the Dundas & Wilson C.S. LLP client account at Royal Bank of
Scotland plc, 142/144 Princes Street, Edinburgh, EH2 4EG, Sort Code 83-51-00 and
Account Number 00143803.

       

      Shares means the 124,089,500
‘A’ ordinary shares of 10p each in the capital of
the Company.

       

      Subsidiaries means the
subsidiaries and subsidiary undertakings of the Company, the details of which
are set out in Section ES of Part 1 of the Schedule (Particulars of the Company and the
Subsidiaries) and references to a
Subsidiary include a reference to each of those individual subsidiaries and
subsidiary undertakings.

       

      Surviving Provisions means
Clauses 1, 4.6, 19, 20, 22 to 25 (inclusive), 27, 28 and 30 to 32
(inclusive).

       

      Tax has the meaning given in
the Tax Deed.

       

      Tax Claim means a claim by the
Purchaser under or in relation to the Tax Warranties or the Tax
Deed.

       

      Tax Deed means the deed of
covenant relating to taxation contained in Part 8 of the Schedule (The Tax Deed).

       

      Tax Liability has the meaning
given in the Tax Deed.

       

      Tax Warranties means the
Warranties contained in paragraph 14 of Part 5 of the Schedule and references to
a Tax Warranty shall be construed accordingly.

       

      Taxation Authority has the
meaning given in the Tax Deed.

       

      Taxes Act means Income and
Corporation Taxes Act 1988.

       

      TCGA means Taxation of
Chargeable Gains Act 1992.

       

      Termination Agreements means
the General Termination Agreement and the Insurance Termination
Agreement.

       

      Termination Date means the
date falling nine months after the date of this Agreement (or such later
date as the parties may agree in writing).

       

      Tesco Stores means Tesco
Stores Limited, a company incorporated in England and Wales (registered number
00519500), whose registered office is at Tesco House, Delamare Road, Cheshunt,
Hens, EN8 9SL.

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

       

      TPF ATMSL Deposit means the
amount of approximately £3,200,000 currently deposited by TPF ATM Services
Limited with the Seller which is due to mature on 18 August 2008.

       

      TPF Compare means Tesco
Personal Finance Compare Limited, a company incorporated in Scotland (registered
number SC318925) whose registered office is at 24/25 St Andrew Square,
Edinburgh, EH2 1AF.

       

      TPFL means Tesco Personal
Finance Limited, a company incorporated in Scotland (registered number SC173199)
whose registered office is at 24/25 St Andrew Square, Edinburgh, EH2
1AF.

       

      Transaction means the
transactions contemplated by this Agreement and the New Contractual
Arrangements, including the sale and purchase of the Shares.

       

      Transaction Documents means
this Agreement, the Disclosure Letter, the Termination Agreements, the New
Contractual Arrangements and any other document in the agreed form.

       

      UKI means UK Insurance
Limited, a company incorporated in England and Wales (registered number
01179980) whose registered office is at The Wharf, Neville Street, Leeds, LS1
4AZ.

       

      UKI Financial Information
means the following Data Room Documents:

       

      D.
Questions S. Answers/Documents referred to in responses – “314 & 315 - Opal finance pack version
5 ff.xls”

       

      UKI Group means UKI and any of its
Affiliates.

       

      Ulster Bank Employment Matters
Agreement means the employment matters agreement relating to certain
employees of Ulster Bank amongst the Seller, Ulster Bank Ireland Limited, Ulster
Bank Limited and TPFL in the agreed form.

       

      VAT means value added
tax.

       

      VATA means Value Added Tax Act
1994.

       

      Warranties means the
warranties contained in Part 5 of the Schedule (The Warranties) and references to a
Warranty shall be
construed accordingly.

       

      
        	
                1.2

              	
                In this
      Agreement, unless the context otherwise requires, the following words and
      phrases are to be interpreted as set out
below.

              

      

       

      
        	
                 
      

              	
                1.2.1

              	
                Agreed
    form

              

      

       

      References to
any document being
in the agreed form mean
that document in the form agreed between and, for the purposes of identification
only,

       

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

       

      signed or
initialled by or on behalf of, the Seller and the Purchaser (together with any
agreed amendments).

       

      
        	
                 
      

              	
                1.2.2

              	
                Statutory
      provisions

              

      

       

      References to
statutory provisions, enactments or European Community directives shall include
references to any amendment, modification, extension, consolidation, replacement
or re-enactment of any such provision, enactment or directive (whether before or
after the date of this Agreement), to any previous enactment which has been
replaced or amended and to any regulation, instrument or order or other
subordinate legislation made under such provision, enactment or
directive.

       

      1.2.3     Words and phrases from the
Act

       

      The words company, body corporate, subsidiary,
holding company, subsidiary undertaking, parent undertaking, group undertaking
and group have the meanings set out in the Act. Unless the context
requires otherwise, words and expressions defined in or having a meaning
provided by the Act at the date of this Agreement shall have the same meaning in
this Agreement and references to the Companies Act 2006 or any provision of the
Companies Act 2006 include a reference to any statutory provision for which it
is a re-enactment or replacement (with or without modification) in so far as it
relates to a period of time when such earlier statutory provision was in
force.

       

      1.2.4     Importation of
words

       

      Except where the
context specifically requires otherwise: words importing one gender shall be
treated as importing any gender; words importing individuals shall be treated as
importing corporations and vice versa; words importing the singular shall be
treated as importing the plural and vice versa: and words importing the whole
shall be treated as including a reference to any part thereof.

       

      1.2.5    General and specific
words

       

      The meaning of
general words shall not be restricted by any particular examples preceding or
following those general words and any phrase introduced by the terms including, include, in
particular or any similar expression shall be construed
accordingly.

       

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

       

      1.2.6    Headings

       

      The clause and
paragraph headings and the table of contents used in this Agreement are inserted
for ease of reference only and shall not affect construction.

       

      1.2.7    Incorporation of the
schedule

       

      The Schedule (and
parts of the Schedule) are incorporated into and form part of this Agreement as
if set out in full in this Agreement and a reference to this Agreement includes a
reference to the Schedule (and parts of the Schedule).

       

      1.2.8    References to
agreement

       

      References to this Agreement includes this
Agreement as amended or supplemented from time to time (in accordance with its
terms).

       

      1.2.9    References to parties, clauses and the
schedule

       

      References in this
Agreement and the Schedule (and parts of the Schedule) to the Introduction or to a party, Clause or Schedule are references
respectively to the Introduction or the relevant party, clause or schedule to
this Agreement.

       

      1.2.10   References to
persons

       

      References to persons shall include natural
persons, bodies corporate, unincorporated associations and partnerships, in each
case whether or not having a separate legal personality and irrespective of the
jurisdiction in or under the law of which it was incorporated or
exists.

       

      1.2.11   Assignation

       

      Subject to Clause
23 (Assignation), references to the parties
include their respective successors and assignees or transferees.

       

      1.2.12   Connected person

       

      A
person is deemed to be connected with another if that person is so connected
within the meaning of Section 839 of the Taxes Act.

       

      12.13    Knowledge and awareness of
Seller

       

      Save where
otherwise expressly provided in this Agreement, any statement in this Agreement
which refers to the knowledge or awareness of the Seller or any similar
expression is limited to the actual knowledge or awareness as

       

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

       

      at
the date of this Agreement of the Seller Appointed Directors and the following
individuals:

       

      
        	
                (a)  

              	
                Alastair
      Wilson (in respect of Tax matters
only)

              

      

       

      
        	
                (b)  

              	
                David
      Stevanovic (in respect of Tax matters
only)

              

      

       

      
        	
                (c)  

              	
                David
      Arden

              

      

       

      
        	
                (d)  

              	
                Duncan
      McKinnell

              

      

       

      
        	
                (e)  

              	
                Fred Bell (in
      respect of regulatory matters only)

              

      

       

      
        	
                (f)  

              	
                Julie
      Cuthbert

              

      

       

      
        	
                (g)  

              	
                Nigel
      Crutchley

              

      

       

      
        	
                (h)  

              	
                Mike Kennelly
      (in respect of IPR matters only)

              

      

       

      
        	
                (i)  

              	
                Charles
      Crawford (in respect of matters relating to UKI and the insurance business
      of the Group)

              

      

       

      
        	
                (j)  

              	
                Peter Cawdron
      (in respect of matters relating to UKI and the insurance business of the
      Group)

              

      

       

      
        	
                (k)  

              	
                Peter Bole
      (in respect of matters relating to UKI and the insurance business of the
      Group only)

              

      

       

      
        	
                (l)  

              	
                Sheree Howard
      (in respect of matters relating to UKI and the insurance business of the
      Group only)

              

      

       

      
        	
                (m)  

              	
                Chris
      Sullivan (in respect of matters relating to UKI and the insurance business
      of the Group only)

              

      

       

      
        	
                (n)  

              	
                Peter
      Dingle

              

      

       

      
        	
                (o)  

              	
                Stephen
      Sanders (in respect of regulatory matters
only)

              

      

       

      
        	
                (p)  

              	
                Stewart
      Raeside

              

      

       

      
        	
                (q)  

              	
                Janice Howitt
      (in respect of employment matters
only)

              

      

       

      
        	
                (r)  

              	
                Caroline
      Craig(in respect of matters relating to Direct Line
  only)

              

      

       

      including, in each
case, the knowledge they would have had following reasonable enquiry within
their respective business functions, but without obligation to make any enquiry
of professional or other advisors or other third parties outside the Seller’s
Group.

       

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      
 

       

      
        	
                1.2.14

              	
                Knowledge and awareness of
      Purchaser

              

      

       

      Any statement in
this Agreement which refers to the knowledge or awareness of the Purchaser, or
any similar expression shall mean the actual knowledge or awareness as at the
date of this Agreement of the Purchaser Appointed Directors and the following
individuals:

       

      (a)  Benny
Higgins;

       

      
        	
                (b)  

              	
                Roger Fogg in
      respect of Warranties 6.1 and 6.2.1 (but only in so far as such Warranties
      relate to marketing matters), and 8 and
10);

              

      

       

      
        	
                (c)  

              	
                Mark
      George:

              

      

       

      
        	
                (d)  

              	
                Dan
      Gilsenan;

              

      

       

      
        	
                (e)  

              	
                Alistair
      Rose;

              

      

       

      
        	
                (f)  

              	
                Nick Mourant
      (in respect of financial commitments and borrowing matters
      only);

              

      

       

      
        	
                (g)  

              	
                Tim Voak (in
      respect of Tax matters only);

              

      

       

      
        	
                (h)  

              	
                Bob
      Fitzsimmons (in respect of Tax matters
only);

              

      

       

      
        	
                (i)  

              	
                Sital Wadher
      (in respect of employment matters only);
and

              

      

       

      
        	
                (j)  

              	
                Katherine
      Hill (in respect of employment matters
only).

              

      

       

      
        	
                2.

              	
                SALE AND PURCHASE OF
      SHARES

              

      

       

      
        	
                2.1

              	
                Sale
      and purchase

              

      

       

      On
the terms and subject to the conditions set out in this Agreement, the Seller
shall sell and the Purchaser shall purchase the Shares free of all Encumbrances
as at and with effect from Completion.

       

      This Clause 2.1
shall have effect notwithstanding any provision of the JV Agreement or the
articles of association of the Company and each party waives any pre-emption or
similar rights it has under those documents in relation to the transfer of the
Shares.

       

      
        	
                2.2

              	
                Title

              

      

       

      The Seller shall at
Completion transfer the legal and beneficial interest in the Shares to the
Purchaser. The Seller shall at Completion procure that all shares in the capital
of each Subsidiary not registered in the name of a Group Company shall be
transferred to the Purchaser (or its nominee) free from all
Encumbrances.

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

       

       

      
        	
                2.3

              	
                Rights attached to the
      shares

              

      

       

      The Seller shall
sell and the Purchaser shall purchase the Shares and each right attaching to the
Shares at Completion, including the right to receive all dividends and
distributions declared, paid or made in respect of the Shares after
Completion.

       

      
        	
                2.4

              	
                Simultaneous purchase of
      shares

              

      

       

      Notwithstanding the
other provisions of this Clause 2, the Purchaser shall not be obliged to
complete the purchase of any of the Shares unless the purchase of all the Shares
is completed simultaneously.

       

      
        	
                3

              	
                CONSIDERATION

              

      

       

      
        	
                3.1

              	
                Consideration

              

      

       

      The consideration
for the purchase of the Shares is £950,000,000 (the Consideration) payable by the Purchaser
to the Seller at the time and in the manner set out in Clause 6 (Completion).

       

      
        	
                3.2

              	
                Adjustment to
      Consideration

              

      

       

      Any payment made in
satisfaction of a liability under a Seller Obligation or a Purchaser Obligation
shall be deemed to adjust the price paid for the Shares under this Agreement to
the extent legally possible.

       

      
        	
                4

              	
                CONDITIONS

              

      

       

      
        	
                4.1

              	
                Conditions

              

      

       

      Completion is
conditional upon and subject to the Conditions being fulfilled or waived
(pursuant to Clause 4.4) on or before 5 p.m. on the Termination
Date.

       

      
        	
                4.2

              	
                Time limit for fulfilment and
      notification

              

      

       

      The Seller and the
Purchaser shall each use their reasonable endeavours to fulfil or procure the
fulfilment of the Conditions as soon as practicable and in any event on or
before 5 p.m. on the Termination Date and shall notify the other party promptly
upon receiving notice of the satisfaction of each such Condition.

       

      
        	
                4.3

              	
                Notification of
      non-fulfilment

              

      

       

      The Seller and the
Purchaser undertake to notify each other promptly of any event, circumstance or
thing which arises or comes to their respective knowledge which prevents or is
reasonably likely to prevent any of the Conditions from being
fulfilled

      on
or before 5 p.m. on the Termination Date.

       

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

       

      
        	
                4.4

              	
                Waiver

              

      

       

      Notwithstanding
Clauses 4.1, 4.2 and 4.3, the Purchaser and the Seller acting jointly may waive
the Conditions (save for Condition 4 (Material Adverse Change),
which may only be waived by the Purchaser) or any of them.

       

      
        	
                4.5

              	
                Material Adverse
      Change

              

      

       

      If
a Material Adverse Change should occur prior to Completion, the Purchaser may,
without liability to the Seller, elect not to complete the purchase of the
Shares by giving notice in writing to the Seller (a Termination Notice) at any
time prior to Completion.

       

      
        	
                4.6

              	
                Non-fulfilment

              

      

       

      If
either (a) a Termination Notice is given by the Purchaser to the Seller, or (b)
if any of the Conditions has not been fulfilled or, where permitted, waived on
or before 5 p.m. on the Termination Date, unless otherwise agreed in writing
between the parties:

       

      
        	
                 
      

              	
                4.6.1

              	
                this
      Agreement shall terminate (save for the Surviving Provisions);
      and

              

      

       

      
        	
                 
      

              	
                4.6.2

              	
                subject to
      Clause 4.6.1 above, the parties shall and shall be deemed to waive any and
      all rights which they have under this Agreement or any other Transaction
      Document except for any rights which have accrued before the Termination
      Date or which arise under the Surviving
  Provisions.

              

      

       

      
        	
                4.7

              	
                Purchaser to involve the
      Seller

              

      

       

      Subject to the
Seller complying with Clause 4.9, the Purchaser shall:

       

      
        	
                 
      

              	
                4.7.1

              	
                ensure that
      the applications contemplated by paragraphs 1 and 2 of Part 3 of the
      Schedule (the Regulatory
      Conditions) are submitted to the appropriate authorities as soon as
      reasonably practicable and, in relation to the application contemplated by
      paragraph 1 only, in any event, within 10 Business Days of the date of
      this Agreement;

              

      

       

      
        	
                 
      

              	
                4.7.2

              	
                promptly
      notify and/or provide the Seller and its advisers with copies of any
      communications (other than those of a solely administrative nature), from
      any Regulatory Authority in relation to procuring the satisfaction of the
      Regulatory Conditions unless (and only to the extent to which) such
      notification is expressly prohibited by that authority, or such
      communication contains any information which the Purchaser reasonably
      considers commercially sensitive to the Purchaser in which case a
      non-confidential version of the communication must be provided to the
      Seller and any commercially sensitive information shall be provided to the
      Seller’s counsel

              

      

       

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

       

      and advisors
pursuant to a separate, customary confidentiality agreement; and

       

      
        	
                 
      

              	
                4.7.3

              	
                promptly
      notify and/or provide the Seller and its advisers with draft copies of all
      submissions to, and material communications with any Regulatory Authority
      in relation to the Regulatory Conditions subject to bona fide exclusion of
      the information which the Purchaser reasonably considers commercially
      sensitive to the Purchaser, at such time (to the extent possible) as will
      allow the Seller and its advisers a reasonable opportunity to provide
      comments on such submissions and communications before they are submitted
      or sent (such comments to be provided promptly by the Seller) and promptly
      provide the Seller and its advisers with copies of all such submissions
      and communications in the form submitted or sent, subject to the
      aforementioned exclusions, unless (and only to the extent) disclosure of
      such documents or draft documents is expressly prohibited by the relevant
      authority.

              

      

       

      
        	
                4.8

              	
                Seller’s
      notification

              

      

       

      The Seller shall
make a courtesy notification to the Irish Financial Services Regulatory
Authority between the date of this Agreement and Completion, subject to the form
of such notification being provided by the Seller to the Purchaser prior to such
notification and the Purchaser being given a reasonable opportunity to provide
comments thereon.

       

      
        	
                4.9

              	
                Cooperation between the
      parties

              

      

       

      Each party shall
promptly provide the other party with all assistance and information that is
reasonably requested by it in connection with the satisfaction of the Regulatory
Conditions, and each party shall provide all information and assistance
reasonably required by any relevant Regulatory Authority upon being requested to
do so by such Regulatory Authority or the other party (including negotiating in
good faith as to the form of any agreed form document where amendments to that
document are reasonably required by a Regulatory Authority). The disclosure by
any party of any commercially or competitively sensitive information shall be
limited to the other party’s counsel and advisors pursuant to a separate,
customary confidentiality agreement.

       

      
        	
                4.10

              	
                Properties

              

      

       

      The provisions of
Part 11 of the Schedule shall apply to the Properties.

       

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

       

      
        	
                5

              	
                INTERIM
      PERIOD

              

      

       

      
        	
                5.1

              	
                Parties’
      obligations

              

      

       

      During the Interim
Period, unless otherwise agreed in writing, each of the Seller and the Purchaser
shall:

       

      
        	
                 
      

              	
                5.1.1

              	
                comply with
      the provisions of Part 4 of the Schedule (the Interim Period);
  and

              

      

       

      
        	
                 
      

              	
                5.1.2

              	
                procure,
      pursuant to the terms of the JV Agreement, that each Group Company
      complies with the provisions of Part 4 of the Schedule (the Interim
      Period).

              

      

       

      
        	
                5.2

              	
                Consequences of
      breach

              

      

       

      If
either the Seller or the Purchaser breaches the provisions of Clause 5.1, the
party which is not in breach shall be entitled to make a claim for damages for
breach of this Agreement but any such claim shall not prejudice the obligations
of both parties to proceed to Completion (subject to the Purchasers right to
terminate pursuant to Clause 4 (Conditions)).

       

      
        	
                6

              	
                COMPLETION

              

      

       

      
        	
                6.1

              	
                Time and
      location

              

      

       

      Completion of the
sale and purchase of the Shares shall take place on the date falling five
Business Days after the fulfillment or waiver by the Seller and the Purchaser of
the Conditions (other than Condition 4 (Material Adverse Change)
which shall be satisfied by delivery of the certificate referred to in paragraph
7 of Section A of Part 2 of the Schedule) or on such later date as the parties
shall agree at the offices of the Seller’s Solicitors (or at any other location
as agreed upon by the parties).

       

      
        	
                6.2

              	
                Action to be taken by the
      Seller

              

      

       

      At
Completion the Seller shall deliver or make available to the Purchaser each of
the documents or items set out or referred to in Section A (Seller’s Documents) of Part 2 of the
Schedule (Completion).

       

      
        	
                6.3

              	
                Action to be taken by the
      Purchaser

              

      

       

      At
Completion, the Purchaser shall:

       

      
        	
                 
      

              	
                6.3.1

              	
                pay the
      Consideration by way of an electronic transfer for same day delivery to
      the Sellers Solicitors’ Bank
Account;

              

      

       

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                6.3.2

              	
                deliver to
      the Seiler the documents set out in Section B (Purchaser’s
      Documents) of Part 2 of the
      Schedule (Completion);
  and

              

      

       

      
        	
                 
      

              	
                6.3.3

              	
                in the event
      that Completion has not occurred on or by 1 November 2008 (other than as a
      direct result of any breach by the Seller of Clauses 4 or 5 and Part 4 of
      the Schedule), pay interest at the Sellers published base rate plus 1.5
      per cent on the Consideration from and including 1 November 2008 to, but
      excluding, the date of actual payment calculated on a daily basis. For the
      avoidance of doubt, any amount accrued under this Clause 6.3.3 shall only
      become due and payable on Completion and shall be paid to the Seller’s
      Solicitors’ Bank Account by way of an electronic transfer for same day
      delivery.

              

      

       

      
        	
                6.4

              	
                Action to be taken jointly by
      the Seller and Purchaser

              

      

       

      At
Completion, the Seller and Purchaser shall procure that, at a board meeting of
each Group Company held to consider all the necessary steps to effect the
matters set out or referred to in Section C (Board Meetings) of Part 2 of the
Schedule (Completion), the Purchaser Appointed
Directors and Seller Appointed Directors (respectively) who are present at such
meeting shall vote in favour of all such steps.

       

      
        	
                6.5

              	
                Completion

              

      

       

      Completion shall be
deemed to have taken place only on satisfaction or waiver of each and all of the
Seller’s and the Purchasers respective obligations to procure delivery or
performance of the actions contained or referred to in Clauses 6.2, 6.3 and 6.4
above.

       

      
        	
                7.

              	
                FIXED INTERIM
      DIVIDEND

              

      

       

      
        	
                7.1

              	
                The Seller
      and the Purchaser hereby undertake to procure that, immediately prior to
      Completion, the Company will declare an interim dividend
      of £20,000,000 or, if less, (following compliance with Clause 7.2) the
      maximum sum that the Company may lawfully pay, by way of dividend solely
      in favour of the Seller, such interim dividend to be conditional on
      Completion (the Fixed Interim Dividend). The Purchaser hereby undertakes
      and confirms that it will waive its right to participate in such
      dividend.

              

      

       

      
        	
                7.2

              	
                The Seller
      and the Purchaser shall procure that, for the purposes of the payment of
      the Fixed Interim Dividend, each of the Subsidiaries shall pay to the
      Company (or as the case may be to its immediate holding company) by way of
      dividend such sums as any such Group Company may lawfully pay and as shall
      be required to permit the payment of the Company of the Fixed Interim
      Dividend in accordance with Clause
7.1.

              

      

       

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

       

      
        	
                7.3

              	
                The Purchaser
      hereby undertakes to procure that, immediately after Completion, the
      Company shall pay the Fixed Interim Dividend in accordance with Clause
      26.3.

              

      

       

      
        	
                7.4

              	
                If the Fixed
      Interim Dividend payable under Clauses 7.1 and 7.3 is less than
      £20,000,000, the Purchaser shall pay to the Seller a sum equal to the
      amount of the shortfall as additional consideration at Completion in
      accordance with Clause 26.3.

              

      

       

      
        	
                7.5

              	
                The
      provisions of Clause 24 (Withholdings and Gross
      Up) shall not apply
      to the Fixed Interim Dividend.

              

      

       

      
        	
                8.

              	
                REFINANCING OF SELLER GROUP
      LOANS

              

      

       

      
        	
                8.1

              	
                The Seller
      and the Purchaser agree, subject to the terms of this Clause 8,
      that:

              

      

       

      
        	
                 
      

              	
                8.1.1

              	
                on
      Completion, the Purchaser shall purchase each Seller Shareholder Loan from
      the Seller in consideration for the payment of the Relevant Market
      Valuation in respect of that Seller Shareholder
  Loan

              

      

       

      
        	
                 
      

              	
                8.1.2

              	
                on
      Completion, each Back to Back Trade comprising the Seller Hedging Facility
      shall be either:

              

      

       

      
        	
                (a)  

              	
                terminated
      and unwound (a Trade
      Unwind) in consideration for the payment of the Unwind Amount, to
      be calculated in accordance with paragraph 2 of Part 13 of the Schedule
      (Trade
      Unwinds);
      or

              

      

       

      
        	
                (b)  

              	
                transferred
      from RBS (Group Treasury) to the Seller (GSM Rates) (a Trade Transfer) in
      accordance with paragraph 3.1 of Part 13 of the Schedule (Trade Transfers);

              

      

       

      
        	
                 
      

              	
                8.1.3

              	
                the parties
      shall procure that each Seller Wholesale Loan Facility which matures prior
      to Completion is allowed to roll over to be replaced with a new Seller
      Wholesale Loan Facility at the LIBOR rate, provided that the new maturity
      period for that Seller Wholesale Loan Facility is three months or less;
      and

              

      

       

      
        	
                 
      

              	
                8.1.4

              	
                following
      Completion, the Purchaser shall procure that each Seller Wholesale Loan
      Facility is repaid by TPFL on maturity in the ordinary course of business
      in accordance with its terms and Completion shall not otherwise prejudice
      or be deemed to amend the terms of each Seller Wholesale Loan
      Facility.

              

      

       

      
        	
                8.2

              	
                During the
      period between the date of this Agreement and Completion, the Seller
      shall:

              

      

       

      
        	
                 
      

              	
                8.2.1

              	
                maintain the
      Seller Wholesale Loan Facility and the Seller Hedging Facility in the
      ordinary course of business;

              

      

       

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

      
 

       

      
        	
                 
      

              	
                8.2.2

              	
                following
      maturity of the TPF ATMSL Deposit, not take any action in respect of the
      TPF ATMSL Deposit without the Purchaser’s consent;
  and

              

      

       

      
        	
                 
      

              	
                8.2.3

              	
                co-operate in
      good faith and provide reasonable assistance as may be requested by the
      Purchaser for the purposes of preparing for the steps contemplated by this
      Clause 8.

              

      

       

      
        	
                8.3

              	
                By 2.00 pm on
      the Business Day immediately prior to Completion, the Seller shall deliver
      to the Purchaser a good faith calculation, in reasonable detail, of the
      total amount due to be paid by the Purchaser or each member of the Group
      (as appropriate) to the relevant member of the Sellers Group on Completion
      pursuant to Clause 8.1.

              

      

       

      
        	
                8.4

              	
                The Seller
      and the Purchaser shall work together in good faith and use all reasonable
      endeavours to ensure the accurate calculation of these amounts in
      accordance with Part 13.

              

      

       

      
        	
                9.

              	
                POST-SIGNING
      PAYMENTS

              

      

       

      
        	
                9.1

              	
                In this
      Clause 9, the following words and phrases shall have the meanings stated
      below:

              

      

       

      RBS Insurance Payment means
the aggregate sum of twelve equal quarterly payments of £5,000,000 (five million
pounds) multiplied by the Relevant Percentage (each, an Instalment up to an
aggregate maximum of £60,000,000 (sixty million pounds)), payable in accordance
with Clause 9.2.

       

      RBS Insurance Group means the
wholly owned insurance business of the Seller or any part thereof which includes
UKI or RBSI or both of them (or the material assets or undertakings of UKI or
RBSI or both of them).

       

      RES Insurance Sale means any
sale of shares or assets, or a merger, scheme of arrangement or any other
transaction or series of transactions in each case which results, directly or
indirectly, in a change in the ultimate ownership of RBS Insurance Group from
the Seller to a person or persons other than a member of the Sellers
Group.

       

      RBS Insurance Sale Completion
Date means the date of completion of the RBS Insurance Sale.

       

      Relevant Percentage means 100
per cent less the percentage rate of corporation tax which applies at the date
on which an Instalment falls due, except that the Relevant Percentage shall be 100 per
cent in respect of any Instalments which fall due following the date of receipt
of a Tax Notice (as defined in Clause 9.4).

       

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      

       

      
        	
                9.2

              	
                Conditional
      upon completion of the RBS Insurance Sale and with effect from the RBS
      Insurance Sale Completion Date, the Seller hereby undertakes to the
      Purchaser to pay to the Purchaser an amount equal to the RBS Insurance
      Payment in accordance with this Clause
9.

              

      

       

      
        	
                9.3

              	
                The RBS
      Insurance Payment shall insofar as possible be treated as an adjustment to
      the Consideration paid by the Purchaser for the sale of the Seller’s
      portion of the issued share capital of the Company and the Seller and the
      Purchaser shall each use their reasonable endeavours to ensure that this
      treatment is applied.

              

      

       

      
        	
                9.4

              	
                In the event
      that, despite having used reasonable endeavours in accordance with Clause
      9.3, the RBS Insurance Payment is brought into charge to corporation tax
      in the hands of the Purchaser (including in circumstances where any relief
      is available in respect of such charge to tax), the Purchaser will notify
      the Seller in writing (a Tax Notice) giving
      reasonable details of the basis on which the RBS Insurance Payment has
      been treated as taxable.

              

      

       

      
        	
                9.5

              	
                Following
      receipt of a Tax Notice, the Seller shall pay such additional amount as
      shall be required to ensure that the total amount of all Instalments which
      have fallen due on or prior to the date of receipt of the Tax Notice, less
      the tax chargeable on such total amount (or would have been chargeable but
      for any relief), is equal to the total amount that would otherwise have
      been payable.

              

      

       

      
        	
                9.6

              	
                Following
      receipt of a Tax Notice, any further Instalments falling due after the
      date of receipt of such Tax Notice will be calculated based on a Relevant
      Percentage of 100 per cent.

              

      

       

      
        	
                9.7

              	
                The first
      quarterly payment comprising the RBS Insurance Payment shall be made by
      the Seller within five Business Days of the RBS Insurance Sale Completion
      Date with the remaining eleven quarterly payments to be made by the Seller
      every quarter thereafter (or if the date for due payment is not a Business
      Day, the next Business Day).

              

      

       

      
        	
                9.8

              	
                The Seller
      shall inform the Purchaser of the proposed date for the RBS Insurance Sale
      Completion Date as soon as reasonably practicable following the Seller
      becoming aware of the same and, in any event, on or prior to the RBS
      Insurance Sale Completion Date.

              

      

       

      
        	
                9.9

              	
                The parties
      agree that the Sellers obligation to pay the full amount of the RBS
      Insurance Payment pursuant to this Clause 9 shall be irrevocable, and
      shall not be affected by and shall survive any termination of, the General
      Insurance Distribution Agreement.

              

      

       

      
        	
                9.10

              	
                Any payments
      made under this Clause 9 shall be inclusive of
  VAT.

              

      

       

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

       

       

      
        	
                9.11

              	
                For the
      avoidance of doubt, the provisions of Clause 24.3 shall not apply to any
      payments made under this Clause 9.

              

      

       

      
        	
                10

              	
                WARRANTIES

              

      

       

      
        	
                10.1

              	
                Scope

              

      

       

      
        	
                10.
      1.1

              	
                In
      consideration of the Purchaser agreeing to purchase the Shares on the
      terms contained in this Agreement, the
Seller:

              

      

       

      
        	
                (a)  

              	
                warrants to
      the Purchaser, as at the date of this Agreement, in the terms of the
      Warranties set out in Part 5 of the Schedule (The Warranties);
  and

              

      

       

      
        	
                (b)  

              	
                warrants to
      the Purchaser, immediately before Completion, in the terms of the Repeated
      Warranties, by reference to the facts and circumstances then existing as
      if references in the Repeated Warranties to the date of this Agreement
      were references to the date of
Completion,

              

      

       

      and the parties
acknowledge that the Purchaser has relied upon the warranties given pursuant to
this Clause 10.1.1 in entering into this Agreement.

       

      
        	
                10.1.2

              	
                Subject to
      Clause 10.8 below, any claim by the Purchaser in connection with the
      Warranties shall be subject only
to:

              

      

       

      
        	
                (a)  

              	
                the matters
      disclosed in the Disclosure Documents and the Disclosure Letter, provided
      that any such matters will be treated as qualifying or limiting the
      application of any Warranty only to the extent that such disclosure is
      fair, meaning that information about it is set out in the Disclosure
      Letter or the Disclosure Documents in such detail as to enable the
      Purchaser (acting reasonably and with the benefit of appropriate
      professional advice) to identify the nature and scope of the matter
      disclosed and make a reasonably informed assessment of its impact on the
      Group, and

              

      

       

      
        	
                (b)  

              	
                any matter
      within the Purchaser’s knowledge in accordance with the terms of Clause
      10.2; and

              

      

       

      
        	
                (c)  

              	
                the
      limitations or exclusions (as the case may be) as set out in Part 9 of the
      Schedule (Limitations on
      Seller’s Liability).

              

      

       

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

       

      
        	
                10.2

              	
                Notification of breach of
      Warranty

              

      

       

      The Seller shall
notify the Purchaser in the event that, between the date of this Agreement and
Completion, any Seller Appointed Director or any individual named in Clause
1.2.13 becomes actually aware (without obligation of enquiry) that a Warranty
given on the date of this Agreement was, when given, incorrect, giving
reasonable details (so far as is known to the Seller) of the events, matters or
circumstances giving rise to the breach.

       

      
        	
                10.3

              	
                Purchaser’s prior
      knowledge

              

      

       

      The Seller shall
not be liable for any Claim or claim under the Tax Warranties if and to the
extent that (i) the Purchaser is aware at the date of this Agreement of the
fact, matter, event or circumstance which is the subject matter of the Claim or
claim under the Tax Warranties and (ii) awareness of the fact, matter, event or
circumstance would cause a reasonable person to deduce that a Claim or claim
under the Tax Warranties could reasonably be expected.

       

      
        	
                10.4

              	
                Separate and independent
      warranties

              

      

       

      Each of the
Warranties shall be construed as a separate and independent warranty such that
the Purchaser shall have a separate claim and right of action for every breach
of each such warranty. No Warranty shall be limited by reference to any other
Warranty.

       

      
        	
                10.5

              	
                Information provided to
      Seller

              

      

       

      Except as expressly
provided in this Agreement, any information supplied by or on behalf of the
Seller or any Group Company, or their officers, employees, agents
representatives or advisers to the Purchaser or their respective agents,
representatives or advisers in connection with the Warranties, the information
disclosed in the Disclosure Letter, the Disclosure Documents and/or the Business
and affairs of a Group Company shall not constitute a representation, warranty
or undertaking as to its accuracy.

       

      
        	
                10.6

              	
                Claims against
      employees

              

      

       

      
        	
                10.6.1

              	
                The Seller
      undertakes to the Purchaser that, except in the case of fraud or
      fraudulent misrepresentation, it waives and shall not make any claim
      against any employee, director, agent or officer of any Group Company (or
      any Head Office Employee or Key Insurance Employee) or of any member of
      the Purchasers Group on whom it may have relied in relation to any
      information supplied or omitted to be supplied by any such person in
      connection with this Agreement or any other Transaction
      Document.

              

      

       

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

       

      
        	
                10.6.2

              	
                The Purchaser
      undertakes to the Seller that, except in the case of fraud or fraudulent
      misrepresentation, it waives and shall not make any claim against any
      employee, director, agent or officer of any member of the Seller’s Group
      on whom it may have relied in relation to any information supplied or
      omitted to be supplied by any such person in connection with this
      Agreement or any other Transaction
Document.

              

      

       

      
        	
                10.7

              	
                Purchaser
      warranties

              

      

       

      The Purchaser
warrants to the Seller in the terms of the warranties set out in Part 6 of the
Schedule (Purchaser’s
Warranties):

       

      
        	
                107.1

              	
                as at the
      date of this Agreement; and

              

      

       

      
        	
                10.7.2

              	
                immediately
      before Completion, by reference to the facts and circumstances then
      existing.

              

      

       

      
        	
                10.8

              	
                Limitation on
      liability

              

      

       

      Nothing in this
Clause 10 or Part 9 of the Schedule shall limit or exclude any liability of the
Seller in relation to the Warranties contained in paragraphs 1 (Capacity), 2.1 (Legal and Beneficial Ownership of
Shares) and
2.2 (No
Encumbrance) of Part 5 of the
Schedule (The
Warranties).

       

      
        	
                10.9

              	
                Set-Off

              

      

       

      If
either party has a liability arising in relation to any claim under this
Agreement (including a Claim), any amounts due in satisfaction of that liability
shall be paid in full without deduction or retention (except as required by law
or as otherwise expressly permitted under this Agreement). Each party hereby
waives and relinquishes any right of set off or counterclaim which it may have
in respect of the payment of any such amount.

       

      
        	
                10.10

              	
                Termination Agreements to be
      without prejudice to claims

              

      

       

      For the avoidance
of doubt, no waiver of any rights, claims or remedies (including under the
Existing Contractual Arrangements) by the Purchaser pursuant to any Termination
Agreement or any other Transaction Document shall extinguish, reduce or
otherwise prejudice the Purchaser’s right to bring any claim under this
Agreement, in accordance with its terms.

       

      
        	
                11

              	
                PURCHASER’S
      UNDERTAKINGS

              

      

       

      
        	
                11.1

              	
                Access to books and
      records

              

      

       

      Following
Completion, and subject at all times to Clause 19 (Confidentiality), the Purchaser shall, at the
Seller’s cost, provide the Seller, its professional advisers or,

       

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

       

       

      with the Purchasers
consent, its agents, as soon as practicable with reasonable access at reasonable
times during any Business Day to the books and records of the Group (and in any
event within five Business Days of a request being made by the Seller), and with
the prior consent of the Purchaser (not to be unreasonably withheld or delayed),
to officers and employees of the Group, which the Seller or any other member of
the Seller’s Group or any of their professional advisers or agents may
reasonably require in connection with any report, return, statement, audit,
filing or other requirement under any applicable law or regulation to the extent
that they relate to the Group or the Business for the period up to Completion
(the Group Prior
Records).

       

      
        	
                11.2

              	
                Preservation of
      documents

              

      

       

      The Purchaser
undertakes to the Seller (and any member of the Seller’s Group, as appropriate)
that for 3 years (or 7 years in respect of matters relating to tax) from the
date of Completion, it shall (and shall procure that each Group Company shall)
not destroy or dispose of the Group Prior Records without first giving the
Seller at least 2 months’ notice of its intention to do so and a reasonable
opportunity to remove and retain any of them (at the Sellers
expense).

       

      
        	
                11.3

              	
                Cash Handling
      Contract

              

      

       

      The Purchaser
undertakes to procure that Tesco Stores agrees or consents to the amendment of
the terms of the Cash Handling Contract to provide for:

       

      
        	
                11.3.1

              	
                subject to
      Clause 11.3.2, the term of the Cash Handling Contract to be extended to 31
      July 2015 (being the term of the ATM CSA);
and

              

      

       

      
        	
                11.3.2

              	
                the Cash
      Handling Contract to terminate if the ATM CSA is terminated or expires for
      any reason.

              

      

       

      
        	
                12.

              	
                ANTI-EMBARRASSMENT

              

      

       

      
        	
                12.1

              	
                The following
      additional definitions shall apply for the purpose of this Clause
      12:

              

      

      control has the meaning given
to it in section 840 of the Income and Corporation Taxes Act 1988 and controlling interest shall be
construed accordingly.

      Disposal means any event the
effect of which is that, whether by one transaction or a series of related
transactions, any person or group of persons (not being a member of the
Purchaser’s Group and whether connected to each other or not) (a Third Party):

       

      
        	
                 
      

              	
                (a)

              	
                obtains,
      whether directly or indirectly, an interest in shares or any other
      securities (including, without limitation, any securities convertible into
      shares

              

      

       

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

       

       

      or options over
shares) of any Group Company which confer (or which would confer on conversion
of any securities or on the exercise of any options or otherwise) a controlling
interest in that Group Company (a Share Disposal);
Or

       

      
        	
                 
      

              	
                (b)

              	
                acquires all
      or substantially all of the assets or undertaking of a Group Company (an
      Assets
      Disposal),

              

      

       

      
        	
                 
      

              	
                and such
      events shall include (without
limitation):

              

      

       

      
        	
                 
      

              	
                (c)

              	
                any sale,
      merger, joint venture or listing or admission to trading on any investment
      or securities exchange or dealing facility which results in a Third Party
      holding, directly or indirectly, a controlling interest in a Group
      Company; or

              

      

       

      
        	
                 
      

              	
                (d)

              	
                any issue of
      shares or securities (including, without limitation, any securities
      convertible into shares or options over shares) which causes (or which
      would on conversion or exercise cause) a Third Party to hold, directly or
      indirectly, a controlling interest in a Group Company;
  or

              

      

       

      
        	
                 
      

              	
                (e)

              	
                any sale of
      all or substantially all of the assets or undertaking of a Group
      Company;

              

      

       

      
        	
                 
      

              	
                collectively
      being Related Disposal
      Events; or

              

      

       

      
        	
                 
      

              	
                (f)

              	
                the entry
      into by the Purchaser or a member of the Purchaser’s Group of any
      agreement, arrangement or other binding commitment (whether conditional,
      contingent or otherwise) the effect of which would be (whether directly or
      upon satisfaction of conditions or the occurrence of contingencies or
      otherwise) to effect a Disposal (a Disposal
      Agreement).

              

      

       

      Permitted Event means (i) any
disposal of assets or incurring of any Encumbrance by a Group Company in the
ordinary and usual course of business (including in connection with any
securitisation or financing undertaken in relation to the Group at any time);
(ii) any Share Disposal, Asset Disposal or Related Disposal Event to, or
Disposal Agreement in favour of, another member of the Purchaser’s Group
(provided such transferee does not cease to be a member of the Purchaser’s Group
and so that if such transferee ceases, for whatever reason, to be a member of
the Purchasers Group then the Purchaser shall (prior to such transferee so
ceasing) procure a disposal of the relevant shares or assets or assignation of
the relevant Disposal Agreement (as the case may be) to a continuing member of
the Purchaser’s Group); (iii) any Disposal of any assets or any part or parts of
the Group or Business which (when taken together with any other assets or part
or parts of the Group or Business which have been the subject of a Disposal in
the Restricted Period)

       

       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

       

       

      contributed 10% or
less of the 2008 operating profits of the Group (before minority interest and
tax) as shown in the Business Plan.

       

      Restricted Period means the
period from the date of this Agreement until the first anniversary of the date
of Completion.

       

      
        	
                12.2

              	
                The Purchaser
      undertakes to the Seller that no Disposal other than a Permitted Event
      shall occur during the Restricted
Period.

              

      

       

      
        	
                12.3

              	
                The Purchaser
      undertakes to the Seller that it will throughout the Restricted Period act
      in good faith in relation to the provisions of this Clause 12 and shall
      not and shall procure that no Group Company shall take or cause or permit
      others to take any action all or any part of the purpose or effect of
      which is designed to circumvent the restriction set out in Clause
      12.2.

              

      

       

      
        	
                13.

              	
                SELLER’S
      UNDERTAKINGS

              

      

       

      
        	
                13.1

              	
                Following
      Completion, the Seller shall procure that all records, papers, documents
      and data (including, for the avoidance of doubt, all relevant historical
      risk management documents) in the possession, custody or control of, or
      kept or made by or on behalf of, any member of the Sellers Group relating
      exclusively to the Group, any Group Company, their business, operations or
      customers (in electronic or hard copy and including Customer Data and
      Records) be deemed to be the property of, and shall be held on trust for,
      the relevant Group Company and any such items shall be delivered or made
      available to the relevant Group Company promptly upon
    request.

              

      

       

      
        	
                13.2

              	
                Following
      Completion, and subject at all times to Clause 19 (Confidentiality), each member of the
      Seller’s Group shall, at the Purchaser’s cost, provide the Purchaser, its
      professional advisers or, with the Sellers consent, its agents, as soon as
      practicable with reasonable access at reasonable times during any Business
      Day to the books and records of the Seller or any member of the Seller’s
      Group (and in any event within five Business Days of a request being made
      by the Purchaser) and, with the prior consent of the Seller (not to be
      unreasonably withheld or delayed), to officers and employees of the Seller
      or any member of the Seller’s Group, which the Purchaser or any other
      member of the Purchaser’s Group or any of their professional advisers or
      agents may reasonably require in connection with any report, return,
      statement, audit, filing or other requirement under any applicable law or
      regulation to the extent that they relate to the Group or the Business for
      the period up to Completion (the Seller Prior
      Records).

              

      

       

      
        	
                13.3

              	
                The Seller
      undertakes to the Purchaser (and any member of the Purchaser’s Group, as
      appropriate) that for 3 years (or 7 years in respect of matters relating
      to tax) from

              

      

       

       

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

       

       

      Completion it shall
(and shall procure that each member of the Seller’s Group shall) not destroy or
dispose of the Seller Prior Records without first giving the Purchaser at least
2 months’ notice of its intention to do so and a reasonable opportunity to
remove and retain any of them (at the Purchaser’s expense).

       

      
        	
                13.4

              	
                With effect
      from the Completion Date, the Seller assigns (where relevant by present
      assignation of future copyright) to the Purchaser, the entire right,
      title, interest and property (present and future) in and to all
      Intellectual Property Rights in the look and feel (including the textual
      and graphical content, format, layout and presentation) of the website
      accessible at www.tescocompare.com that are expressly associated with the
      Purchaser and/or TPF Compare and that are owned by a member of the Sellers
      Group, free from all Encumbrances, including the right to sue (and to
      retain damages recovered) in respect of any infringement or unauthorised
      use of any of these Intellectual Property Rights that may have occurred
      before the Completion Date (whether or not that infringement or use
      continues after the Completion Date). The Seller shall execute (or procure
      the execution of) at its own cost any and all further documents as may be
      necessary to give effect to the assignation of these Intellectual Property
      Rights. This Clause 13.4 does not apply to “Customer Data” as defined in
      the Compare CSA.

              

      

       

      
        	
                 
      

              	
                13.5

              	
                Preparation for
      Completion

              

      

       

      The Sellers shall,
and shall procure that the Seller’s Group and (in so far as it is able) the
Group shaft, use reasonable endeavours and co-operate in good faith with the
Purchaser (including responding to the Purchaser’s reasonable requests for
information, access and assistance in a timely manner), to assist the Purchaser
with:

       

      
        	
                13.5.1

              	
                the
      preparations for the implementation of the New Contractual Arrangements
      from Completion including, in
particular

              

      

       

      
        	
                (a)  

              	
                agreeing the
      identity and frequency of the matters referred to in paragraph 3.1(j)) of
      Part A of Schedule 3 to the Banking
CSA;

              

      

       

      
        	
                (b)  

              	
                agreeing on
      the MI (as defined in the Banking CSA) to be provided to TPFL in
      compliance with the principles set out in Part G of Schedule 3 to the
      Banking CSA:

              

      

       

      
        	
                (c)  

              	
                preparations
      for the orderly hand-over and implementation of TPF Fraud Strategies (as
      defined in the Banking CSA):

              

      

       

      
        	
                (d)  

              	
                the
      ring-fencing of the ICARUS (Integrated Credit Analysis Retail User
      Solution) system and the provision of a data feed for the purposes of TPFL
      accessing the TPF Data (pursuant to the terms of the Banking
      CSA).

              

      

       

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

       

       

      
        	
                13.5.2

              	
                the
      preparations for the securitisation of the TPFL credit card portfolio from
      Completion; and

              

      

       

      
        	
                13.5.3

              	
                the
      completion of an ICAAP for the
Group.

              

      

       

      
        	
                13.6

              	
                Implementation
      Committee

              

      

       

      
        	
                13.6.1

              	
                The parties
      shall set up a implementation committee comprising persons of suitable
      standing from the Purchaser and the Seller to meet on a fortnightly (or
      more frequent) basis to consider issues arising in relation to the
      proposed migration of the Business to the Purchaser and the implementation
      of the New Contractual Arrangements from Completion (the Implementation
      Committee).

              

      

       

      
        	
                13.6.2

              	
                The
      Implementation Committee shall consider in good faith any matters brought
      to its attention and shall use reasonable endeavours to resolve any such
      matters in a timely way which is acceptable to both
    parties.

              

      

       

      
        	
                14

              	
                TAX
  DEED

              

      

       

      The provisions of
Part 8 of the Schedule (The
Tax Deed) apply with effect from
the date of Completion.

       

      
        	
                15

              	
                INSURANCE

              

      

       

      
        	
                15.1

              	
                Up to and
      including the Completion Date, the Seller shall (and shall ensure that
      each of its Affiliates and each Group Company shall) continue in force and
      comply with all policies of insurance in respect of the Group Companies
      and not knowingly do anything which might reasonably make such a policy
      void or voidable or might result in an increase in the premium payable
      under the policy or prejudice the ability to effect equivalent insurance
      in the future.

              

      

       

      
        	
                15.2

              	
                If any insured event
      occurs before Completion in relation to any Group Company, the Seller
      shall use all reasonable efforts to make recovery under the relevant
      policy prior to Completion. To the extent that recovery is made following
      Completion, the Seller shall ensure that the proceeds are dealt with in
      accordance with the instructions of the Purchaser, acting reasonably, and
      the Purchaser may request that the proceeds be paid to the Purchaser or to
      any third party claimant.

              

      

       

      
        	
                 
      

              	
                15.3

              	
                Except to the
      extent that:

              

      

       

      
        	
                15.3.1

              	
                any insurance
      policy is required to be continued in force after Completion pursuant to
      Clause 15.4 below; or

              

      

       

      
        	
                15.3.2

              	
                the Seller is
      under an obligation under the New Contractual Arrangements to maintain
      agreed levels of insurance,

              

      

       

       

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

       

       

      the Seller shall be
entitled to arrange for the benefit of all insurance provided by the Seller’s
Group in relation to the Group Companies (whether under policies maintained with
third party insurers or other members of the Seller’s Group) to cease upon
Completion.

       

      
        	
                15.4

              	
                From
      Completion, the Seller shall ensure that all insurance policies which are
      in force at Completion continue in force on the same terms to the extent
      that (i) they provide cover in relation to the carrying on of the Business
      by any Group Company before Completion and/or any matter or event
      occurring in relation to any Group Company before Completion and (ii)
      under their respective terms, claims can still be made or pursued after
      Completion. The only Gems that will be made or pursued by or on behalf of
      the Purchaser’s Group under those policies (together the Permitted Claims) will
      be:

              

      

       

      
        	
                15.4.1

              	
                those that
      have already been notified to the relevant insurer(s) before Completion
      and are pending or outstanding at
Completion;

              

      

       

      
        	
                15.4.2

              	
                in relation
      to ‘occurrence’ based policies (including any ‘Employers Liability’ or
      ‘Public/Products Liability’ policies), any claims notified within the
      relevant statutory limitation period to the relevant insurers for
      “incurred but not reported” events arising prior to
      Completion;

              

      

       

      
        	
                15.4.3

              	
                in relation
      to ‘claims made’ based policies (including any ‘Professional Indemnity’ or
      ‘Crime’ policies), any claims notified within 6 years of Completion to the
      relevant insurers; and

              

      

       

      
        	
                15.4.4

              	
                in relation
      to Directors & Officers Liability policies, any claims notified to the
      relevant insurers for so long as the Seller maintains such policies
      provided that the Seller shall be obliged to give the Purchaser reasonable
      written notice of any decision not to renew such policies or if the
      benefit of the policy is no longer available to the
  Group.

              

      

       

      
        	
                15.5

              	
                The Seller
      shall ensure that each member of the Seller’s Group shall take such steps
      as the Purchaser reasonably requires to make and/or pursue any Permitted
      Claim (including giving notice of the claim to the insurer at the request
      of the Purchaser) or to assist any Group Company or any member of the
      Purchasers Group in making the claim, and shall pay to the Purchaser (on
      behalf of the relevant Group Companies) any proceeds actually received
      after Completion within 5 Business Days of their
  receipt.

              

      

       

      
        	
                15.6

              	
                From
      Completion, the Purchaser shall (and shall ensure that each of its
      Affiliates and each Group Company shall), on becoming aware of any
      Permitted Claim, promptly notify any Permitted Claim to the
      Seller.

              

      

       

       

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

       

       

      
        	
                16

              	
                GUARANTEES

              

      

       

      
        	
                16.1

              	
                The Purchaser
      shall use its reasonable efforts to ensure that, as soon as reasonably
      practicable after Completion, each member of the Seller’s Group is
      released from all Guarantees given by it in respect of obligations of any
      Group Company. Pending release of any such Guarantee, the Purchaser shall
      indemnify the Seller and each of its Affiliates against any and all costs
      arising after Completion under or by reason of that
    Guarantee.

              

      

       

      
        	
                16.2

              	
                The Seller
      shall use its reasonable efforts to ensure that, as soon as reasonably
      practicable after Completion, each Group Company is released from all
      Guarantees given by it in respect of obligations of any member of the
      Sellers Group. Pending release of any such Guarantee, the Seller shall
      indemnify the Purchaser and each of its Affiliates against any and all
      costs arising after Completion under or by reason of that
      Guarantee.

              

      

       

      
        	
                17

              	
                PROTECTIVE
      COVENANTS

              

      

       

      
        	
                17.1

              	
                The Seller
      agrees with the Purchaser and its successors in title as a separate and
      independent agreement that neither the Seller nor any member of the
      Seller’s Group shall, in any capacity, at any time after
      Completion:

              

      

       

      
        	
                (a)  

              	
                sell (or
      purport to sell) any of the information relating to customers derived from
      the Customer Data and Records (Restricted Information)
      to any third party;

              

      

       

      
        	
                (b)  

              	
                use any
      Restricted Information for any purpose, including for the purpose of any
      marketing activities directed solely or primarily at any customer of the
      Group or for soliciting any customer of the Group for any financial
      product, other than as expressly permitted under any Transaction Document;
      or

              

      

       

      
        	
                (c)  

              	
                disclose any
      Restricted Information to any third party, except as permitted pursuant to
      Clause 19.2.8.

              

      

       

      
        	
                17.2

              	
                The Seller
      undertakes that, subject to Completion and Clauses 17.4 and 17.5 below,
      for a period of one year following Completion it shall not, and it shall
      procure that each member of the Seller’s Group shall not, either alone or
      jointly with, through (which includes by ownership of any shares direct or
      indirect control) or on behalf of (whether as director, partner,
      consultant, manager, principal, agent or otherwise) any person, enter into
      any joint venture, consortium or partnership arrangement similar to that
      conducted between the Seller and Purchaser under the JV Agreement (a Similar JV Arrangement)
      with any of, or any of the Affiliates of, Wal-Mart Stores
    Inc,

              

      

       

       

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

       

       

      Somerfield plc, the
Co-operative Group, J. Sainsbury plc, Marks and Spencer plc, Waitrose Limited,
Wm Morrison Supermarkets plc, Aldi Stores Limited or Lidl in England, Scotland
or Wales (the Restricted
Retailers) save where the Purchaser has given its prior consent following
reasonable detailed notice of the proposal by the Seller to enter into a Similar
JV Arrangement with a Restricted Retailer. The parties acknowledge that this
restriction shall not prohibit the Seller or any member of the Sellers Group
from providing banking services in the normal course of business of any member
of the Seller’s Group as is carried out at the date of this Agreement with the
Restricted Retailers.

       

      
        	
                17.3

              	
                The
      restriction in Clause 17.2 shall not prevent the Seller from providing any
      co- branded banking products or “white labelled” consumer products with a
      Restricted Retailer, provided that such products are not established or
      provided through a Similar JV
Arrangement.

              

      

       

      
        	
                17.4

              	
                There shall
      be no breach of this Clause 17 where the Seller or any member of its Group
      acquires an interest in any company or business (whether through acquiring
      an interest in shares or otherwise) by or through the exercise by the
      Seller or any member of its Group of any rights in respect of any
      Encumbrance arising in the ordinary course of
  business.

              

      

       

      
        	
                17.5

              	
                Where any
      member of the Purchaser’s Group gives notice of termination of any New
      Contractual Arrangement, the restriction set out in Clause 17.2 shall (if
      applicable) cease to apply to the Seller and each member of the Seller’s
      Group, in relation to the provision by the Seller or each member of the
      Seller’s Group of similar services to those provided under the New
      Contractual Arrangement in respect of which the notice of termination has
      been given.

              

      

       

      
        	
                17.6

              	
                The Seller
      undertakes to the Purchaser that it will, for a period of one year
      following Completion, act in good faith in relation to the provisions of
      this Clause 17.2 and shall not and shall procure that no member of the
      Seller’s Group shall take or cause or permit others to take any action all
      or any part of the purpose or effect of which is designed to circumvent
      the restriction set out in Clause
17.2.

              

      

       

      
        	
                17.7

              	
                The
      undertakings given in Clauses 17.1 and 17.2 are given to the Purchaser and
      to each of its Affiliates. The Seller acknowledges that each is an
      entirely independent restriction and is no greater than is reasonably
      necessary to protect the interests of the Purchaser and its Affiliates. If
      any such restriction shall be held void or unenforceable but would be
      valid if deleted in part or reduced in its application, then that
      restriction shall apply with such modifications as may be necessary to
      make it valid and effective.

              

      

       

       

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

       

       

       

      
        	
                18.

              	
                PENSIONS

              

      

       

      
        	
                18.1

              	
                In this
      Clause 18:

              

      

       

      
        	
                (a)  

              	
                Moral Hazard Liability
      means any liability, cost, claim, demand or expense (including legal and
      actuarial fees) that is incurred in relation to the Sellers Schemes
      before, on or after Completion by any member of the Purchaser’s Group who
      is connected with, or an associate of, an employer of any of the Sellers
      Schemes under section 38 to 43 (inclusive) of the Pensions Act
      2004.

              

      

      
        	 	 
	
                (b)  

              	
                Relevant Percentage
      means one hundred per cent less the percentage corporation tax rate which
      applies in the financial year in which a payment under Clause 18.2 is due
      to be made

              

      

      
        	 	 
	
                (c)  

              	
                Seller’s Schemes means
      each occupational pension scheme (other than a money purchase scheme) of
      which any member of the Seller’s Group is an employer, including but not
      limited to the Royal Bank of Scotland Group Pension Fund and the Ulster
      Bank Pension Scheme.

              

      

      
        	 	 
	
                (d)  

              	
                A word or
      phrase that is defined in the Pensions Act 2004 shall have the same
      meaning in this clause 18.

              

      

       

      
        	
                18.2

              	
                Subject to
      clause 18.6, the Seller undertakes to the Purchaser to pay to the
      Purchaser by way of adjustment to the Consideration a sum equal to the
      amount of any Moral Hazard Liability multiplied by the Relevant
      Percentage. Payment is due from the Seller when payment of the Moral
      Hazard Liability falls due and
payable.

              

      

       

      
        	
                18.3

              	
                Any payments
      made pursuant to the indemnity granted at Clause 18.2 shall insofar as
      possible be treated as an adjustment to the Consideration and the Seller
      and the Purchaser shall each use their respective reasonable endeavours to
      ensure that this treatment is
applied.

              

      

       

      
        	
                18.4

              	
                In the event
      that, despite having used reasonable endeavours pursuant to Clause 18.2,
      any sum payable to the Purchaser under Clause 18.2 is subject to a charge
      to Tax (including in circumstances where any relief is available in
      respect of such charge to Tax), the Seller shall pay such additional
      amount as shall be required to ensure that the total amount paid, less the
      Tax chargeable on such amount (or that would have been chargeable but for
      such relief), is equal to the amount which would otherwise have been
      payable.

              

      

       

      
        	
                18.5

              	
                For the
      avoidance of doubt the provisions of Clauses 24.3 and 24.6 shall not apply
      to payments made under this Clause
18.

              

      

       

       

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

      
 

       

      
        	
                18.6

              	
                The Seller’s
      liability under this Clause 18 shall be limited as
  follows:

              

      

       

      
        	
                18.6.1

              	
                the Seller
      shall not be liable unless it receives from the Purchaser written notice
      of a claim for payment (stating, so far as practicable and known to the
      Purchaser, in reasonable detail the matter giving rise to the claim and an
      estimate, on a without prejudice basis, the amount of the claim) on or
      before the expiry of the period ending eighteen months after the date of
      Completion; and

              

      

       

      
        	
                18.6.2

              	
                the maximum
      aggregate liability of the Seller shall be £43.000,000 (including all
      legal and other professional costs, fees, charges and expenses of the
      Purchaser).

              

      

       

      
        	
                19.

              	
                CONFIDENTIALITY

              

      

       

      
        	
                19.1

              	
                The Seller
      and the Purchaser shall each (and shall ensure that its Representatives
      shall) during and after the term of this Agreement preserve the
      confidentiality of the Confidential Information, and except to the extent
      otherwise expressly permitted by this Agreement, not use such Confidential
      Information or reveal, report, publish, disclose or transfer such
      Confidential Information to any
person.

              

      

       

      
        	
                19.2

              	
                Clause 19.1
      shall not prevent either party or Its Representatives, after consultation
      with the other party whenever lawful and practicable, to do so, disclosing
      Confidential Information if and to the
extent:

              

      

       

      
        	
                19.2.1

              	
                required by
      law; or

              

      

       

      
        	
                19.2.2

              	
                required by
      any securities exchange on which either party’s securities are listed or
      traded; or

              

      

       

      
        	
                19.2.3

              	
                required by
      any regulatory or governmental or other authority with relevant powers to
      which either party is subject or submits;
or

              

      

       

      
        	
                192.4

              	
                required to
      enable that party to legally enforce its rights or fulfil its obligations
      under this Agreement or any Transaction Document;
  or

              

      

       

      
        	
                19.2.5

              	
                that
      information is in or has come into the public domain other than through
      the fault of that party or its Representatives;
  or

              

      

       

      
        	
                19.2.6

              	
                the other
      party has given prior written consent to the disclosure;
  or

              

      

       

      
        	
                19.2.7

              	
                it is
      necessary to disclose such Confidential Information to any tax authority
      in order to obtain any relevant tax clearances from that tax authority;
      or

              

      

       

       

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

       

       

      
        	
                19.2.8

              	
                that
      information is disclosed to a potential or actual purchaser of the whole
      or any part of the insurance business of the Seller (a RBSI Purchaser),
      conditional in each case on:

              

      

       

      
        	
                (a)  

              	
                any RBSI
      Purchaser entering into the terms of a confidentiality agreement on no
      less restrictive terms to this Clause 19, which is capable of direct
      enforcement by the Purchaser against the RBSI
  Purchaser;

              

      

       

      
        	
                (b)  

              	
                the
      information disclosed being information which UKI reasonably requires in
      order to provide the services under the General Insurance Distribution
      Agreement and Life Insurance Distribution Agreement (which shall include,
      for the avoidance of doubt, a copy of the General Insurance Distribution
      Agreement and Life Insurance Distribution Agreement and the agreement in
      relation to the provision of insurance between UKI and TPFL dated 14
      January 2005);

              

      

       

      
        	
                (c)  

              	
                the
      information permitted to be disclosed pursuant to this Clause 19.2.8
      excluding this Agreement and any other Transaction Document (except the
      General Insurance Distribution Agreement or Life Insurance Distribution
      Agreement); and

              

      

       

      
        	
                (d)  

              	
                the Purchaser
      being entitled to receive from the Seller,
  following

              

      

       

      
        	
                (e)  

              	
                reasonable
      written request, a copy of all information passed to any RBSI Purchaser
      pursuant to this Clause 19.2.8 and, following the entering into of any
      agreement between the Seller (or any of its Affiliates) and a RBSI
      Purchaser for the purchase of the whole or any part of the insurance
      business of the Seller, of all executed confidentiality agreements entered
      into by any such RBSI Purchaser referred to in Clause
      19.2.8(a).

              

      

       

      
        	
                19.3

              	
                The
      restrictions contained in this Clause 19 shall continue to apply after
      Completion without limit in time.

              

      

       

      
        	
                19.4

              	
                Each of the
      Seller and the Purchaser undertakes that it (and its Affiliates) shall
      only disclose Confidential Information to Representatives if it is
      reasonably required for purposes connected with this Agreement and only if
      the Representatives are informed of the confidential nature of the
      Confidential Information and the obligations of the parties under this
      Clause 19. Each of the Seller and the Purchaser undertake to accept full
      responsibility for any breach by their Representatives of the
      confidentiality obligations contained in this Clause
  19.

              

      

       

       

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

       

       

      
        	
                20.

              	
                ANNOUNCEMENTS

              

      

       

      The parties
authorise the issue of a press release or announcement in the agreed form but
shall not make any other public announcement or issue any other press release
relating to this Agreement or its subject matter or any ancillary matter except
with the prior written approval of the other party (such approval not to be
unreasonably withheld, delayed or made subject to any unreasonable conditions)
or if, and to the extent, required by law or governmental, regulatory or other
authority or securities exchange on which either party’s securities are traded
(in which case the party making the announcement shall use its reasonable
efforts to consult with the other party in advance as to its form, content and
timing).

       

      
        	
                21

              	
                FURTHER
      ASSURANCE

              

      

       

      
        	
                21.1

              	
                Without
      prejudice to any restriction or limitation on the extent of either party’s
      obligations under this Agreement (including in relation to the fulfilment
      of the Conditions), each party shall from time to time, upon the request
      and at the expense of the other party, use all reasonable endeavours to
      execute or procure the execution of any additional documents or do or
      procure any other acts or things which may be required to give full effect
      to the transactions contemplated by this Agreement or the New Contractual
      Arrangements in a form reasonably satisfactory to the party
      concerned.

              

      

       

      
        	
                21.2

              	
                Each of the
      Seller and the Purchaser shall procure that their Affiliates comply with
      all obligations under this Agreement which are expressed to apply to any
      such Affiliates.

              

      

       

      
        	
                21.3

              	
                In this
      Clause 21.3, TPF
      Counterparties means the contractual counterparties of any Group
      Company listed in Part 12 of the
Schedule.

              

      

       

      Between the date of
this Agreement and Completion, the Seller shall (without prejudice to any
provision of the New Contractual Arrangements):

       

      
        	
                21.3.1

              	
                provide
      contact details upon written request by the Purchaser of any of the TPF
      Counterparties relevant to the
Business;

              

      

       

      
        	
                21.3.2

              	
                use its
      reasonable endeavours to facilitate (as soon as reasonably practicable
      following a written Purchaser request) meetings between the Purchaser and
      such TPF Counterparties (whether by confirming to them the Purchaser’s
      right to discuss the ongoing arrangements in respect of the Business or,
      at the Purchaser’s option, by enabling appropriate representatives of the
      Seller to attend at reasonable times and places with the
      Purchaser);

              

      

       

       

      
        
          
          

        

        
          40

          
            

          

        

        
          
          

        

      

       

       

      
        	
                21.3.3

              	
                to the extent
      that it is able (having regard to the Purchaser’s interest in the Group
      under the Existing Contractual Arrangements, this Agreement and the New
      Contractual Arrangements) procure that no member of the Sellers Group or
      Group Company takes any action which
      would knowingly prejudice the ability of the Purchaser entering into
      discussions with an TPF Counterparty for the purpose of procuring any
      consents, waivers, agreements, deeds or any other documents with such TPF
      Counterparty in relation to such TPF Counterparty’s ability (if any) to
      terminate or materially vary any agreement it has with the
      Business;

              

      

       

      
        	
                213.4

              	
                procure that
      where an TPF Counterparty is a member of the Seller’s Group (including,
      for the avoidance of doubt, any member of the RBS Insurance Group (as
      defined in Clause 9.1) as at the date of this Agreement), such TPF
      Counterparty shall not exercise any right it has to terminate, vary, or
      exercise any contractual right under, any contract or other arrangement
      with any Group Company as a result of the Transaction and shall grant all
      necessary consents or waivers reasonably necessary to ensure that such
      termination, variation or exercise does not
  occur;

              

      

       

      
        	
                21.3.5

              	
                procure (so
      far as it is able) that the relevant Group Company executes prior to
      Completion any agreements provided to them by the Purchaser on receipt of
      written request from the Purchaser, provided that each such agreement is
      entirely conditional on Completion.

              

      

       

      
        	
                21.4

              	
                The
      provisions of Clause 21.3 are subject always to the obligation of the
      Seller to comply with the terms, conditions and provisions of Clauses 4
      and 5. If there is a conflict between any of the provisions of Clause 21.3
      and Clauses 4 and 5 the obligation under the relevant term, condition or
      provision of Clause 4 or Clause 5 shall prevail and no breach under Clause
      21.3 shall be deemed to have
occurred.

              

      

       

      
        	
                21.5

              	
                The Seller
      (on behalf of itself and each member of the Seller’s Group) acknowledges
      the right of the Purchaser to terminate the Life Insurance Distribution
      Agreement on behalf of TPFL, pursuant to Clause 22.52 of that Agreement
      and at any time following its execution (the LIDA Termination Right),
      and agrees to waive any and all rights it has to object to or prevent the
      termination of the Life Insurance Distribution Agreement pursuant to the
      LIDA Termination Right, whether as a shareholder of the Company, or as a
      parent undertaking of Direct Line or
otherwise.

              

      

       

      
        	
                21.6

              	
                Hanco

              

      

       

      Within 30 days from
and including the date of this Agreement, the Seller shall procure that Hanco
enters into:

       

       

      
        
          
          

        

        
          41

          
            

          

        

        
          
          

        

      

      
 

       

      
        	
                21.6.1

              	
                a contract
      for the provision of services by Hanco to TPFL on the same or
      substantially the same terms as the ATM CSA for the services specified in
      Part 14 (Hanco
      Services) of the Schedule
      with appropriate changes and any changes to the terms that may be
      reasonably required to take account of any differences in the services
      provided by Hanco and the applicable commercial terms. The services shall
      be as defined in Part 14 (Hanco Services) of the Schedule;
      and

              

      

       

      
        	
                21.6.2

              	
                a contract
      for the provision of services by TPFL to Hanco on the same or
      substantially the same terms as the ATM (Provision of Cash)
      Agreement.

              

      

       

      
        	
                22.

              	
                NOTICES

              

      

       

      
        	
                22.1

              	
                Any notice,
      approval, consent or other communication to be given in connection with
      this Agreement (notice) shall be in writing and shall either be sent by
      fax, first class recorded post or nationally recognised courier company to
      the address or the fax number set out below or to such other address or
      fax number as may previously have been communicated to the other party in
      accordance with this Clause 22.1 and Clause
  22.3.

              

      

       

      
        	 	Party
      and Address	For the
      attention of	Fax
      Number
	 	 	 	 
	 	The
      Seller	The
      Company Secretary	+44
      (131) 626 3081
	 	 	 	 
	 	
                36 St. Andrew
      Square

                Edinburgh EH2
      2YE

              	 	 
	 	 	 	 
	 	 	
                cc: 
      Kenneth
    Rose        

              	
                +44 (131) 228
      8888

              
	 	 	
                 Dundas
      8 Wilson C.S. LLP

                 Saltire
      Court

                 20
      Castle Terrace

                 Edinburgh
      EH1 2EN

              	 
	 	 	 	 
	 	The
      Purchaser	(1)   The Group
      General Counsel; and	(1)   +44 (1992) 646
      715
	 	 	 	 
	 	Tesco
      House	(2)   The Corporate
      and Legal Affairs	(2)   +44 (1992) 623
      371
	 	Delamare
      Road	      
      Director	 
	 	Chesthunt	 	 
	 	Herts
      EN8 9SL	 	 
	 	 	 	 
	 	 	
                cc: 
      Claire
      Wills             

              	
                +44 (20) 7832
      7001

              
	 	 	
                 Freshfields
      Bruckhaus Deringer LLP 
 65 Fleet Street

                 London
      EC4Y 1HS

              	 

      

       

       

       

      
        
          
          

        

        
          42

          
            

          

        

        
          
          

        

      

       

       

      
        	
                22.2

              	
                A notice or
      other communication sent according to Clause 22.1 shall be deemed to have
      been served:

              

      

       

      
        	
                22.2.1

              	
                if delivered
      personally or by recorded post or courier at the address referred to in
      Clause 22.1, at the time of
delivery;

              

      

       

      
        	
                22.2.2

              	
                if sent by
      facsimile to the number referred to in Clause 22.1, at the time of
      completion of transmission by the sender (as evidenced by a Confirmatory
      report of a successful transmission
report);

              

      

       

      and any failure to
deliver or send by fax a notice to Freshfields Bruckhaus Deringer LLP or Dundas
& Wilson C.S. LLP under Clause 22.1 shall not invalidate service of that
notice, provided it has been delivered or sent to the Purchaser or the Seller
(as the case may be) in accordance with Clause 22.1.

       

      If, under the
preceding provisions of this Clause 22.2, a notice would otherwise be deemed to
have been delivered in the place of receipt outside normal business hours (being
9.00 are to 5.00 p.m.) on a Business Day in the time zone of the territory of
the recipient, it shall be deemed to have been received at 9:00 a.m. on the next
Business Day.

       

      
        	
                22.3

              	
                A party shall
      notify the other parties to this Agreement of a change to its name,
      address, fax number or the relevant person to whom notices should be sent
      for the purposes of Clause 22.1, provided that such notification shall
      only be effective:

              

      

       

      
        	
                22.3.1

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

              

      

       

      
        	
                22.3.2

              	
                if no date is
      specified (or if the date specified is less than five clear Business Days
      after the date on which notice is deemed to have been served), five clear
      Business Days after notice of any such change is deemed to have been
      given.

              

      

       

      
        	
                22.4

              	
                For the
      avoidance of doubt, the parties agree that the provisions of this Clause
      22 shall not apply in relation to the service of any claim form,
      application notice, order, judgment or other document relating to or in
      connection with any proceeding, suit or action arising out of or in
      connection with this Agreement.

              

      

       

      
        	
                23.

              	
                ASSIGNATION

              

      

       

      
        	
                23.1

              	
                Except as
      provided in this Clause 23, neither party
may:

              

      

       

      
        	
                23.1.1

              	
                assign any of
      its rights under this Agreement; or

              

      

       

      
        	
                23.1.2

              	
                transfer any
      of its obligations under this Agreement;
or

              

      

       

      
        	
                23.1.3

              	
                sub-contract
      or delegate any of its obligations under this Agreement;
  or

              

      

       

       

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

      

       

       

      
        	
                23.1.4

              	
                charge or
      deal in any other manner with this Agreement or any of its rights or
      obligations,

              

      

       

      except with the
prior consent in writing of the other party, such consent not to be unreasonably
withheld, delayed or made subject to unreasonable conditions. Any purported
assignation, transfer, sub-contracting, delegation, charging or dealing in
contravention of this Clause 23 shall be ineffective.

       

      
        	
                23.2

              	
                The Purchaser
      may assign the benefit of this Agreement and/or of any other Transaction
      Document to which it is a party (in whole or in part) to, and it may be
      enforced by, any
      Permitted Assignee as if it were the Purchaser under this Agreement. Any
      Permitted Assignee to whom an assignation is made in accordance with the
      provisions of this Clause 23.2 may itself make an assignation as if it were the
      Purchaser under this Clause 23.2. provided, in each case, that any
      Permitted Assignee which ceases to be a member of the Purchaser’s Group,
      shall assign or transfer its rights to a continuing member of the
      Purchaser’s Group. For this purpose, a Permitted Assignee means any member
      or members of the Purchaser’s Group which is the legal and beneficial
      owner from time to time of any or all of the Shares or the assets of the
      Group Companies.

              

      

       

      
        	
                24.

              	
                WITHHOLDINGS AND GROSS
      UP

              

      

       

      
        	
                24.1

              	
                All sums
      payable under this Agreement shall be paid free and clear of all
      deductions or withholdings whatsoever save only as provided in this
      Agreement or as may be required by
law.

              

      

       

      
        	
                24.2

              	
                If any
      deduction or withholding is required by law from any payment in respect of
      a Purchaser Obligation or a Seller Obligation then, except in relation to
      interest, the party making the payment shall be obliged to pay the other
      party such additional amount as will, after such deduction or withholding
      has been made, leave the other party with the same amount as it would have
      been entitled to receive in the absence of any such requirement to make a
      deduction or withholding.

              

      

       

      
        	
                24.3

              	
                If any
      Taxation Authority brings into charge to Tax any sum paid by a party to
      any other party under this Agreement in respect of a Purchaser Obligation
      or a Seller Obligation, then, except in relation to interest, the amount
      so payable shall be increased by such amount as will ensure that the total
      amount paid, less the Tax chargeable on such amount, is equal to the
      amount that would otherwise have been
payable.

              

      

       

      
        	
                24.4

              	
                Clause 24.3
      shall apply in respect of any amount deducted or withheld as contemplated
      by Clause 24.2 as it applies to sums paid by one party to another
      party.

              

      

       

       

      
        
          
          

        

        
          44

          
            

          

        

        
          
          

        

      

       

       

      
        	
                24.5

              	
                If any party
      receiving payment (the Recipient) under this
      Agreement in respect of a Purchaser Obligation or a Seller Obligation
      receives a credit for, refund of or Relief from any Tax or other monies
      payable by it or similar benefit by reason of any deduction or withholding
      for or on account of Tax or by reason of any Tax charged in respect of
      which an additional amount is paid under Clause 24.2 or Clause 24.3, then
      it shall reimburse to the other party such part of such additional
      payments paid to it pursuant to Clause 24.2 or Clause 24.3 by such other
      party as the Recipient, acting reasonably, certifies to the other party
      will leave it (after such reimbursement) in no better or worse position
      than it would have been in if no deduction or withholding had been
      required or no Tax charge had
arisen.

              

      

       

      
        	
                24.6

              	
                In
      determining the amount payable in respect of any Purchaser Obligation or
      Seller Obligation (other than the Tax Deed, in respect of which paragraph
      4 of the Tax Deed applies) account shall be taken of any Relief or other
      benefit available to the Recipient or any other member of the Purchaser’s
      Group or the Seller’s Group (as the case may be) in respect of the matter
      giving rise to the payment, insofar as not taken into account pursuant to
      Clause 24.5.

              

      

       

      
        	
                24.7

              	
                If any party
      shall have assigned the benefit in whole or in part of this Agreement in
      accordance with the provisions of Clause 23 (Assignation), the liability of the
      other party to the first party under Clauses 24.2 and 24.3 shall be
      limited to that (if any) which it would have been had no such assignation
      taken place.

              

      

       

      
        	
                25

              	
                COSTS

              

      

       

      Except as otherwise
stated in this Agreement or as provided for in the New Contractual Arrangements,
the Seller and the Purchaser shall each pay their own costs, charges and
expenses in relation to the negotiation, preparation, execution implementation
and performance of this Agreement and each document referred to in it and other
agreements forming part of the transaction, except
that this Clause shall not prejudice the right of either party to seek to
recover its costs in any litigation or dispute resolution procedure which may
arise out of this Agreement.

       

      
        	
                26

              	
                PAYMENTS

              

      

       

      
        	
                26.1

              	
                Any payment
      to be made pursuant to this Agreement by the Purchaser (or any member of
      the Purchaser’s Group) shall be made to the Seller’s Solicitors’ Bank
      Account without set-off or counterclaim and without any deduction, except
      to the extent required by law.

              

      

       

       

      
        
          
          

        

        
          45

          
            

          

        

        
          
          

        

      

       

       

      
        	
                26.2

              	
                Any payment
      to be made pursuant to this Agreement by the Seller (or any member of the
      Seller’s Group) shall be made to the Purchaser’s Bank Account without
      set-off or counterclaim and without any deduction, except to the extent
      required by law.

              

      

       

      
        	
                26.3

              	
                Payment under
      Clauses 7.2, 7.4, 26.1 and 26.2 shall be in immediately available funds by
      electronic transfer on the due date for payment. Receipt of the amount due
      shall be an effective discharge of the relevant payment
      obligation.

              

      

       

      
        	
                27

              	
                ENTIRE
      AGREEMENT

              

      

       

      
        	
                27.1

              	
                Save where
      expressly agreed to in writing by the parties to this Agreement, with
      specific reference to this Clause 27.1, this Agreement, and the other
      Transaction Documents and the documents referred to or incorporated in
      them constitute the entire agreement between the parties relating to the
      subject matter of this Agreement and supersede and extinguish any prior
      drafts, agreements, undertakings, representations, warranties and
      arrangements of any nature whatsoever, whether or not in writing, between
      the parties in relation to the subject matter of this
      Agreement.

              

      

       

      
        	
                27.2

              	
                Each of the
      parties acknowledges and agrees that it has not relied on any statement or
      representation of any person (whether a party to this Agreement or not) in
      entering into this Agreement or the other Transaction Documents, other
      than as expressly incorporated in any Transaction
  Document.

              

      

       

      
        	
                27.3

              	
                Without
      limiting the generality of the foregoing, each of the parties irrevocably
      and unconditionally waives any right or remedy it may have to claim
      damages and/or to rescind this Agreement by reason of any
      misrepresentation (other than a fraudulent misrepresentation) having been
      made to it by any person (whether a party to this Agreement or not) and
      upon which it has relied in relation to this
  Agreement.

              

      

       

      
        	
                27.4

              	
                Save as
      expressly provided in Clause 4, no party shall be entitled to rescind or
      terminate this Agreement in any circumstances
      whatsoever (whether before or after
Completion).

              

      

       

      
        	
                27.5

              	
                Nothing
      contained in this Agreement or in any other document referred to or
      incorporated in it shall be read or construed as excluding any liability
      or remedy as a result of fraud (including fraudulent
      misrepresentation).

              

      

       

      
        	
                28

              	
                VARIATION

              

      

       

      Any variation of
this Agreement or of any of the documents referred to in it is valid only if it
is in writing and duly executed by or on behalf of each party.

       

       

      
        
          
          

        

        
          46

          
            

          

        

        
          
          

        

      

       

       

      
        	
                29

              	
                SURVIVAL OF
      PROVISIONS

              

      

       

      Notwithstanding
Completion, the provisions of this Agreement (and in particular, without
limitation, the Warranties and the Tax Deed) shall, to the extent that they
remain to be performed or are capable of subsisting, remain in full force and
effect and shall be binding on, and enforceable by, the parties or their
respective successors or assigns.

       

      
        	
                30

              	
                INVALIDITY

              

      

       

      
        	
                30.1

              	
                If any
      provision of this Agreement is held to be invalid or unenforceable by any
      judicial or other competent authority, all other provisions of this
      Agreement will remain in full force and effect and will not in any way be
      impaired.

              

      

       

      
        	
                30.2

              	
                If any
      provision of this Agreement is held to be invalid or unenforceable but
      would be valid or enforceable if some part of the provision were deleted,
      or the period of the obligation reduced in time, or the range of
      activities or area covered, reduced in scope, the provision in question
      will apply with the minimum modifications necessary to make it valid and
      enforceable.

              

      

       

      
        	
                31.

              	
                WAIVERS

              

      

       

      
        	
                31.1

              	
                A waiver of
      any right, power, privilege or remedy provided by this Agreement must be
      in writing and may be given subject to any conditions thought fit by the
      grantor. For the avoidance of doubt, any omission to exercise, or delay in
      exercising, any right, power, privilege or remedy provided by this
      Agreement shall not constitute a waiver of that or any other right, power,
      privilege or remedy.

              

      

       

      
        	
                31.2

              	
                A waiver of
      any right, power, privilege or remedy provided by this Agreement shall not
      constitute a waiver of any other breach or default by the other party and
      shall not constitute a continuing waiver of the right, power, privilege or
      remedy waived or a waiver of any other right, power, privilege or
      remedy.

              

      

       

      
        	
                31.3

              	
                Any single or
      partial exercise of any right, power, privilege or remedy arising under
      this Agreement shall not preclude or impair any other or further exercise
      of that or any other right, power, privilege or
  remedy.

              

      

       

       

      
        
          
          

        

        
          47

          
            

          

        

        
          
          

        

      

       

       

      
        	
                32.

              	
                GOVERNING LAW AND
      JURISDICTION

              

      

       

      This Agreement
shall be governed by and construed in accordance with the law of Scotland. The
parties irrevocably agree that the Court of Session in Scotland shall have
exclusive jurisdiction to settle any dispute arising out of or in connection
with this Agreement in respect of any claim brought against the Purchaser and
shall have non-exclusive jurisdiction in respect of any claim brought by the
Purchaser.

       

      IN WITNESS WHEREOF this
Agreement typewritten on this and the preceding 47 pages, together with the
Schedule in 14 parts annexed, is executed as follows:

       

      SUBSCRIBED for and on behalf
of THE ROYAL BANK OF SCOTLAND
PLC

       

      at 65 Fleet Street,
London EC4Y 1HS on 28th July
2008

       

      by:             /s/
C.
Sullivan                                                       George
Swan Witness

       

      
        	
                Authorised
      Signatory:

              	
                /s/ George
      Swan

              

      

      
        	
                Full
      Name:  Christopher Paul Sullivan

              	
                65 FLEET
      STREET

              

      

      
        	
                 
      

              	
                 LONDON
      EC4Y 1H

              

      

       

      

      SUBSCRIBED for and on behalf
of TESCO
PLC

       

      at 65 Fleet Street,
London EC4Y 1HS on 28th July
2008

      

      by:             /s/
Daniel
Gilsonan                                                George
Swan Witness

       

      
        	
                Authorised
      Signatory:

              	
                /s/ George
      Swan

              

      

      
        	
                Full
      Name:  DANIEL GILSONAN

              	
                65 FLEET
      STREET

              

      

      
        	
                 
      

              	
                 LONDON
      EC4Y 1HS

              

      

      

       

      
        
          
          

        

        
          48

          
            

          

        

        
          
          

        

      

       

       

      This is the
Schedule referred to in the Agreement between The Royal Bank of Scotland plc and
Tesco PLC relating to the sale and purchase of part of the issued share capital
of Tesco

      Personal Finance
Group Limited dated 28th July
2008.

       

       

      THE
SCHEDULE

       

      PART
I

      PARTICULARS
OF THE COMPANY AND THE SUBSIDIARIES

       

      SECTION
A

       

      Particulars
of the Company

       

      
        	
                Name:

              	
                Tesco
      Personal Finance Group Limited

              
	 	 
	
                Registered
      number:

              	
                SC173198

              
	 	 
	
                Date of
      registration:

              	
                05/03/1997
      under the Companies Act 1985

              
	 	 
	
                Status:

              	
                Private
      company

              
	 	 
	
                Place of
      registration:

              	
                Scotland

              
	 	 
	
                Registered
      Office:

              	
                24/25 St
      Andrew Square

                Edinburgh

                EH2
      1AF

              
	 	 
	
                Accounting
      reference date:

              	
                31
      December

              
	 	 
	
                Charges:

              	
                None

              
	 	 
	
                Authorised
      share capital:

              	
                £50,000,000.10
      divided into 250,000,000 A ordinary shares of £0.10 each and 250,000,000 B
      ordinary shares of £0.10 each and 1 C ordinary share of
    £0.10.

              
	 	 
	
                Issued share
      capital:

              	
                124,089,500
      ‘A’ ordinary shares of £0.10 each; 
124,089A99 ordinary shares of £0.10
      each; and 
1 ‘C’ ordinary share of £0.10.

              
	 	 	 
	
                Shareholders’
      names and shareholdings:

              	
                Name

              	
                Shares
      Held

              
	 	 	 
	 
    	
                Tesco
      PLC

              	
                1 ‘C’
      ordinary share of £0.10 each

              
	 	 	 
	 
    	
                Tesco
      PLC

              	
                124,089,499
      ‘B’ ordinary shares of £0.10 each

              

      

       

       

      
        
          
          

        

        
          49

          
            

          

        

        
          
          

        

      

       

      
 

      
        	 
    	
                The Royal
      Bank of Scotland plc

              	
                124,089,500
      ‘A’ ordinary shares of £0.10 each

              
	 	 	 
	
                Company
      officers

              	
                Name
      and Address

              	
                To remain in place following
      Completion? (√ or
X)

              
	 	 	 
	
                Directors:

              	
                Timothy Robed
      Ashdown

                Tesco
      House

                Delamare
      Road

                Cheshunt

                Hertfordshire

                EN8
      9SL

              	
                √

              
	 	 	 
	 
    	
                Robert James
      Mackenzie

                Bulloch

                Strathwood
      Milngavie Road

                Strathblane

                Glasgow

                G63
      9EN

              	
                X

              
	 	 	 
	 
    	
                lain
      Clink

                18 Corrennie
      Gardens

                Edinburgh

                EH10
      6DG

              	
                √

              
	 	 	 
	 
    	
                Andrew Thomas
      Higginson

                Tesco
      House

                Delamare
      Road

                Cheshunt

                Hertfordshire

                ENS
      9SL

              	
                √

              
	 	 	 
	 
    	
                Gordon
      Francis Pell

                36 St Andrew
      Square

                Edinburgh

                EH2
      2YB

              	
                X

              
	 	 	 
	 
    	
                Christopher
      Paul Sullivan

                3 Princess
      Way

                Redhill

                Surrey

                RH1
      1NP

              	
                X

              
	 	 	 
	 
    	
                Laura
      Katharine Wade-Gery

                Tesco
      House

                Delamare
      Road

                Cheshunt

                Hertfordshire

                EN8
      9SL

              	
                √

              

      

       

       

      
        
          
          

        

        
          50

          
            

          

        

        
          
          

        

      

      
 

       

      
        	 
    	
                Graham
      Fenwick Pimlott

                79 Beckwith
      Road

                London

                SE24
      9CQ

              	
                √

              
	 	 	 
	
                Secretary:

              	
                Alan Ewing
      Mills

                87 Sheriffs
      Park

                Linlithgow

                West
      Lothian

                EH49
      7SR

              	
                X

              

      

       

       

       

       

      
        
          
          

        

        
          51

          
            

          

        

        
          
          

        

      

      
 

      SECTION
B

       

      

       

      Particulars
of the Subsidiaries

       

      
        	
                Name:

              	
                Tesco
      Personal Finance Limited

              
	 	 
	
                Registered
      number:

              	
                SC173199

              
	 	 
	
                Date of
      registration:

              	
                05/03/1997
      under the Companies Act 1985

              
	 	 
	
                Status:

              	
                Private
      company

              
	 	 
	
                Place of
      registration:

              	
                Scotland

              
	 	 
	
                Registered
      Office:

              	
                24/25 St
      Andrew Square

                Edinburgh

                EH2
      1AF

              
	 	 
	
                Accounting
      reference date;

              	
                31
      December

              
	 	 
	
                Charges:

              	
                None

              
	 	 
	
                Authorised
      share capital:

              	
                £50,000,000
      divided into 500,000,000 ordinary shares of

                £0.10
      each

              
	 	 
	
                Issued share
      capital:

              	
                247,900,000
      ordinary shares of £0.10 each

              
	 	 	 
	
                Shareholders’
      names and shareholdings:

              	
                Name

              	
                Shares
      Held

              
	 	 	 
	 
    	
                NC Head
      Office Nominees Limited

              	
                10 ordinary
      shares of £0.10 each

              
	 	 	 
	 
    	
                Tesco
      Personal Finance Group Limited

              	
                247,899,990
      ordinary shares of £0.10 each

              
	 	 	 
	
                Company
      officers:

              	
                Name
      and Address

              	
                To remain in place following
      Completion? (√
      or
      X)

              
	 	 	 
	 
    	
                Timothy
      Robert Ashdown

                Tesco
      House

                Delamare
      Road

                Cheshunt

                Hertfordshire

                EN8
      9SL

              	
                √

              

      

      

       

       

      
        
          
          

        

        
          52

          
            

          

        

        
          
          

        

      

       

      
        
          	 
    	
                  Robert James
      Mackenzie

                  Bulloch

                  Strathwood
      Milngavie Road

                  Strathblane

                  Glasgow

                  G63
      9EN

                	
                  X

                
	 	 	 
	 
    	
                  lain
      Clink

                  18 Corrennie
      Gardens

                  Edinburgh

                  EH10
      6DG

                	
                  √

                
	 	 	 
	 
    	
                  Andrew Thomas
      Higginson

                  Tesco
      House

                  Delamare
      Road

                  Cheshunt

                  Hertfordshire

                  EN8
      9SL

                	
                  √

                
	 	 	 
	 
    	
                  Gordon
      Francis Pell

                  36 St Andrew
      Square

                  Edinburgh

                  EH2
      2YB

                	
                  X

                
	 	 	 
	 
    	
                  Christopher
      Paul Sullivan

                  3 Princess
      Way

                  Redhill

                  Surrey

                  RH1
      1NP

                	
                  X

                
	 	 	 
	 
    	
                  Laura
      Katharine Wade-Gery

                  Tesco
      House

                  Delamare
      Road

                  Cheshunt

                  Hertfordshire

                  EN8
      9SL

                	
                  √

                
	 	 	 
	 
    	
                  Graham
      Fenwick Pimtott

                  79 Beckwith
      Road

                  London

                  SE24
      9CQ

                	
                  √

                
	 	 	 
	
                  Secretary:

                	
                  Alan Ewing
      Mills

                  87 Sheriffs
      Park

                  Linlithgow

                  West
      Lothian

                  EH49
      7SR

                	
                  X

                

        

      

       

       

      
        
          
          

        

        
          53

          
            

          

        

        
          
          

        

      

       

      

      
        	
                Name:

              	
                Tesco
      Personal Finance Compare Limited

              
	 	 
	
                Registered
      number:

              	
                SC318925

              
	 	 
	
                Date of
      registration:

              	
                19/03/2007

              
	 	 
	
                Status:

              	
                Private
      company

              
	 	 
	
                Place of
      registration

              	
                Scotland

              
	 	 
	
                Registered
      Office

              	
                24/25 St
      Andrew Square

                Edinburgh

                EH2
      1AF

              
	 	 
	
                Accounting
      reference date

              	
                31
      December

              
	 	 
	
                Charges

              	
                None

              
	 	 
	
                Authorised
      share capital:

              	
                £1,000,000
      divided into 1,000,000 ordinary shares of £1.00 each

              
	 	 
	
                Issued share
      capital:

              	
                £279,002
      ordinary shares of £1.00 each

              
	 	 	 
	
                Shareholders’
      names and shareholdings:

              	
                Name

              	
                Shares
      Held

              
	 	 	 
	 
    	
                Tesco
      Personal Finance Group Limited

              	
                279,002
      ordinary shares of £1 each

              
	 	 	 
	
                Company
      officers:

              	
                Name
      and address

              	
                To remain in place following
      Completion? (√
      or
      X)

              
	 	 	 
	 
    	
                Timothy
      Robert Ashdown

                Tesco
      House

                Delamare
      Road

                Cheshunt

                Hertfordshire

                EN8
      9SL

              	
                √

              
	 	 	 
	 
    	
                Robert James
      Mackenzie

                Bulloch

                Strathwood
      Milngavie Road

                Strathblane

                Glasgow

                G63
      9EN

              	
                √

              

      

       

       

       

      
        
          
          

        

        
          54

          
            

          

        

        
          
          

        

      

      
 

      
        	 
    	
                lain
      Clink

                18 Corrennie
      Gardens

                Edinburgh

                EH10
      6DG

              	
                √

              
	 	 	 
	 
    	
                Andrew Thomas
      Higginson

                Tesco
      House

                Delamare
      Road

                Cheshunt

                Hertfordshire

                EN8
      9SL

              	
                √

              
	 	 	 
	 
    	
                Gordon
      Francis Pell

                36 St Andrew
      Square

                Edinburgh

                EH2
      2YB

              	
                X

              
	 	 	 
	 
    	
                Christopher
      Paul Sullivan

                3 Princess
      Way

                Redhill

                Surrey

                RH1
      1NP

              	
                X

              
	 	 	 
	 
    	
                Laura
      Katharine Wade-Gery

                Tesco
      House

                Delamare
      Road

                Cheshunt

                Hertfordshire

                EN8
      9SL

              	
                √

              
	 	 	 
	 
    	
                Graham
      Fenwick Pimtott

                79 Beckwith
      Road

                London

                SE24
      9CQ

              	
                √

              
	 	 	 
	
                Secretary:

              	
                Alan Ewing
      Mills

                87 Sheriffs
      Park

                Linlithgow

                West
      Lothian

                EH49
      7SR

              	
                X

              

      

       

       

       

      
        
          
          

        

        
          55

          
            

          

        

        
          
          

        

      

      
 

      
        	
                Name:

              	
                TPF
      ATM Services Limited

              
	 	 
	
                Registered
      number:

              	
                SC224054

              
	 	 
	
                Date of
      registration:

              	
                09/10/2001

              
	 	 
	
                Status:

              	
                Private
      company

              
	 	 
	
                Place of
      registration

              	
                Scotland

              
	 	 
	
                Registered
      Office

              	
                24/25 St
      Andrew Square

                Edinburgh

                EH2
      1AF

              
	 	 
	
                Accounting
      reference date

              	
                31
      December

              
	 	 
	
                Charges

              	
                None

              
	 	 
	
                Authorised
      share capital:

              	
                £1,000
      divided into 1,000 ordinary shares of £1.00 each

              
	 	 
	
                Issued share
      capital:

              	
                £2 ordinary
      shares of £1.00 each

              
	 	 	 
	
                Shareholders’
      names and shareholdings:

              	
                Name

              	
                Shares
      Held

              
	 	 	 
	 
    	
                N.C. Head
      Office Nominees Limited

              	
                1 ordinary
      share of £1 each

              
	 	 	 
	 
    	
                Tesco
      Personal Finance Limited

              	
                1 ordinary
      share of £1 each

              
	 	 	 
	
                Company
      officers:

              	
                Name
      and address

              	
                To remain in place following
      Completion? (√
      or
      X)

              
	 	 	 
	 
    	
                Timothy
      Robert Ashdown

                Tesco
      House

                Delamare
      Road

                Cheshunt

                Hertfordshire

                EN8
      9SL

              	
                √

              

      

       

       

      
        
          
          

        

        
          56

          
            

          

        

        
          
          

        

      

       

      
 

      
        	 
    	
                Robert James
      Mackenzie

                Bulloch

                Strathwood
      Milngavie Road

                Strathblane

                Glasgow

                G63
      9EN

              	
                X

              
	 	 	 
	 
    	
                lain
      Clink

                18 Corrennie
      Gardens

                Edinburgh

                EH10
      6DG

              	
                √

              
	 	 	 
	 
    	
                Andrew Thomas
      Higginson

                Tesco
      House

                Delamare
      Road

                Cheshunt

                Hertfordshire

                EN8
      9SL

              	
                √

              
	 	 	 
	 
    	
                Gordon
      Francis Pell

                36 St Andrew
      Square

                Edinburgh

                EH2
      2YB

              	
                X

              
	 	 	 
	 
    	
                Christopher
      Paul Sullivan

                3 Princess
      Way

                Redhill

                Surrey

                RH1
      1NP

              	
                X

              
	 	 	 
	 
    	
                Laura
      Katharine Wade-Gery

                Tesco
      House

                Delamare
      Road

                Cheshunt

                Hertfordshire

                EN8
      9SL

              	
                √

              
	 	 	 
	 
    	
                Graham
      Fenwick Pimtott

                79 Beckwith
      Road

                London

                SE24
      9CQ

              	
                √

              
	 	 	 
	
                Secretary:

              	
                Alan Ewing
      Mills

                87 Sheriffs
      Park

                Linlithgow

                West
      Lothian

                EH49
      7SR

              	
                X

              

      

       

       

      
        
          
          

        

        
          57

          
            

          

        

        
          
          

        

      

      
 

      

      
        	
                Name:

              	
                TPF
      Services LLP

              
	 	 
	
                Registered
      number:

              	
                SO300085

              
	 	 
	
                Date of
      registration:

              	
                09/04/2002

              
	 	 
	
                Status:

              	
                Limited
      Liability Partnership

              
	 	 
	
                Place of
      registration

              	
                Scotland

              
	 	 
	
                Registered
      Office

              	
                24 St Andrew
      Square

                Edinburgh

                EH2
      1AF

              
	 	 
	
                Accounting
      reference date

              	
                31
      December

              
	 	 
	
                Charges

              	
                None

              
	 	 	 
	
                Members:

              	
                Name
      and address

              	
                Designated?

                (√ or
  X)

              
	 	 	 
	 
    	
                TPF ATM
      Services Limited

                24 St Andrew
      Square

                Edinburgh

                EH2
      2YE

              	
                √

              
	 	 	 
	 
    	
                Tesco Stores
      Limited

                Tesco
      House

                Delamare
      Road

                Cheshunt

                Hertfordshire

                EN8
      9SL

              	
                √

              

      

       

       

       

      
        
          
          

        

        
          58

          
            

          

        

        
          
          

        

      

      
 

    

     

    
      PART
2

      COMPLETION

       

      SECTION
A

       

      Seller’s
Documents

       

      
        	
                1.

              	
                Transfers of the shares in the
      company

              

      

       

      Transfers of the
Shares duly executed by the registered holders in favour of the Purchaser or its
nominee(s) together with the relevant share certificates in the names of such
registered holders (or an indemnity in the case of any missing
certificates).

       

      
        	
                2.

              	
                Transfers of the shares in the
      subsidiaries

              

      

       

      Transfers of all
shares in the capital of each Subsidiary not registered in the name of a Group
Company duly executed in favour of the Purchaser or its nominee(s) together with
the relevant share certificates in the names of the registered holders (or an
indemnity in the case of any missing certificates).

       

      
        	
                3.

              	
                Resignations of directors and
      secretary

              

      

       

      The resignations in
the agreed form of each of the Directors and the secretary of the Company and
the Subsidiaries from their respective offices (other than those indicated by a
tick (√) in Column 2 of Section
A and Column 2 of Section B of Part 1 of the Schedule (Particulars of the Company and the
Subsidiaries),
being those requested by the Purchaser to remain).

       

      
        	
                4.

              	
                Disclosure
      Letter

              

      

       

      The Disclosure
Letter and the Disclosure Documents (accompanied by a letter from the Seller’s
solicitors in the agreed form in relation to the DVD containing the Data Room
Documents provided to the Purchaser).

       

      
        	
                5.

              	
                Statutory
      books

              

      

       

      The statutory books
of each Group Company duly written up to the time immediately prior to
Completion, their certificates of incorporation and certificates of
incorporation on change of name (if applicable) and their common seals (if
any).

       

      
        	
                6.

              	
                General Termination
      Agreement

              

      

       

      The General
Termination Agreement duly executed by or on behalf of the Seller or any member
of the Seller’s Group, as appropriate.

       

       

      
        
          
          

        

        
          59

          
            

          

        

        
          
          

        

      

       

       

      
        	
                7.

              	
                MAC
      Certificate

              

      

       

      A certificate of an
authorised signatory of the Seller, in the agreed form, to the effect that the
Seller is not aware of any Material Adverse Change occurring after the date of
this Agreement and prior to Completion or being in existence at
Completion.

       

      
        	
                8.

              	
                Power of attorney in favour of
      purchaser

              

      

       

      Irrevocable voting
powers of attorney in the agreed form executed by the Seller in favour of the
Purchaser entitling the Purchaser to exercise the Seller’s rights as a member of
the Company pending the stamping and registration of the transfer of the
Shares.

       

      
        	
                9.

              	
                Corporate
      authority

              

      

       

      A copy (certified
to be a true copy by a director or secretary of the Seller) of an extract from a
resolution of the Seller’s board of directors (or an authorised committee of
that board) authorising the execution and performance by the Seller of its
obligations under the Agreement and any Transaction Documents.

       

      
        	
                10.

              	
                Contracts to be executed at
      Completion

              

      

       

      A
copy of the following documents, executed by the Seller and any other member of
the Seller’s Group who is a party thereto:

       

      10.1      the
Banking CSA;

       

      10.2      the
Compare CSA;

       

      10.3      the
ATM CMS;

       

      10.4      the
ATM (Provision of Cash) Agreement;

       

      10.5      the
Ulster Bank Employment Matters Agreement; 

       

      10.6     
the Life Insurance Distribution Agreement;

       

      10.7      the
Forthstone Sublease;

       

      10.8      the
Redhill Sublease;

       

      10.9      the
licence arrangements contained in Part 11 to the Schedule;
and

       

      10.10    the
Appointed Representative Agreement.

       

       

      
        
          
          

        

        
          60

          
            

          

        

        
          
          

        

      

       

       

      SECTION
B

       

      Purchaser’s
Documents

       

       

      
        	
                1.

              	
                Corporate
      Authority

              

      

       

      A copy (certified
to be a true copy by a director or secretary of the Purchaser) of an extract
from a resolution of the Purchaser’s board of directors (or an authorised
committee of that board) authorising the execution and performance by the
Purchaser of its obligations under the Agreement and any other Transaction
Documents.

       

      
        	
                2.

              	
                General Termination
      Agreement

              

      

       

      The Termination
Agreement duly executed by or on behalf of the Purchaser or any member of the
Purchaser’s Group (as applicable).

       

      
        	
                3.

              	
                Disclosure
      Letter

              

      

       

      The Disclosure
Letter and the Disclosure Documents duly acknowledged by the
Purchaser.

       

      
        	
                4.

              	
                Contracts to be executed at
      Completion

              

      

       

      A
copy of the following documents, executed by the Purchaser and any other member
of the Purchaser’s Group who is a party thereto:

       

      4.1       
the Banking CSA,

       

      4.2       
the Compare CSA;

       

      4.3        the
ATM CSA;

       

      4.4        the
ATM (Provision of Cash) Agreement;

       

      4.5        the
Forthstone Sublease;

       

      4.6        the
Redhill Sublease;

       

      4.7        the
licence arrangements contained in Part 11 to the Schedule; and

       

      4.8        the
Appointed Representative Agreement.

       

       

      
        
          
          

        

        
          61

          
            

          

        

        
          
          

        

      

       

       

      SECTION
C

       

      Board
Meetings

       

      Obligations of the
Seller and Purchaser at Completion in relation to the Board Meeting of the
Company (and/or each Group Company, as appropriate) at Completion:

       

      
        	
                1.

              	
                Shares in the
      company

              

      

       

      Approve for
registration the transfers of the Shares in the Company referred to in paragraph
1 of Section A of this Part 2 of the Schedule (Completion) to the Purchaser and
the entry of the Purchaser in the register of members of the Company (subject
only to the transfers being subsequently presented duly stamped).

       

      
        	
                2.

              	
                Resignation of company
      officers

              

      

       

      Accept the
resignations referred to in paragraph 3 of Section A of this Part 2 of the
Schedule (Completion) and appoint the persons
nominated by the Purchaser as directors (subject to any maximum number imposed
by the relevant articles of association) and the secretary of the Company, such
resignations and appointments to take effect from Completion.

       

      
        	
                3.

              	
                Resignation of
      auditors

              

      

       

      Accept the
resignation of the Company’s current auditors and appoint such new auditors of
the Company (subject to their consent) as the Purchaser directs.

       

      
        	
                4.

              	
                Registered
      office

              

      

       

      Change the
registered office of the Company as the Purchaser directs.

       

      
        	
                5.

              	
                Accounting reference
      date

              

      

       

      Change the
accounting reference date of the Company as the Purchaser directs.

       

      
        	
                6.

              	
                Bank
      mandates

              

      

       

      Revoke all existing
mandates for the operation of the bank accounts of the Company and authorising
the directors and/or the secretary to issue new mandates giving authority to
those persons nominated by the Purchaser.

       

      
        	
                7.

              	
                Articles of
      association

              

      

       

      Subject to the
approval of the shareholders of the Company, amend the articles of association
of the Company to take effect upon Completion.

       

       

      
        
          
          

        

        
          62

          
            

          

        

        
          
          

        

      

       

       

      PART
3

       

      

       

      THE
CONDITIONS

       

       

      
        	
                1.

              	
                The
      occurrence of either of the following
events:

              

      

       

      
        	
                 
      

              	
                1.1

              	
                the Irish
      Competition Authority (the Authority) having
      informed the Purchaser in writing under sections 21(2)(a), 22(3)(a) or
      22(3)(c) (provided, in respect of section 22(3)(c), that the conditions
      specified are acceptable to the Purchaser acting reasonably) of the Irish
      Competition Act 2002 (the Irish Competition Act)
      that the purchase of the Shares pursuant to this Agreement and all matters
      arising there from may be put into effect;
or

              

      

       

      
        	
                 
      

              	
                1.2

              	
                the period
      specified in section 21(2) or section 19(1)(d) of the Irish Competition
      Act having lapsed without the Authority having informed the parties of the
      determination (if any) it has made under the said
  section.

              

      

       

      
        	
                2.

              	
                The granting
      in terms satisfactory to the Seller and the Purchaser of all consents,
      approvals, authorisations or clearances which are required from the
      Financial Services Authority in connection with the proposed acquisition
      of the Shares.

              

      

       

      
        	
                3.

              	
                Confirmation
      from the FSA to the Seller, in terms reasonably satisfactory to the
      Seller, that The Royal Bank of Scotland plc and The Royal Bank of Scotland
      Group plc is or will be released from Completion from the undertakings
      given to the FSA in respect of any regulated member of the
      Group.

              

      

       

      
        	
                4.

              	
                No Material
      Adverse Change having occurred since the date of the
      Agreement.

              

      

       

       

      
        
          
          

        

        
          63

          
            

          

        

        
          
          

        

      

       

       

       

      PART
4

      THE
INTERIM PERIOD

       

      
        	
                1.

              	
                Positive obligations of each
      Group Company

              

      

       

      The Seller and the
Purchaser shall each procure, pursuant to the terms of the JV Agreement and the
Existing Contractual Arrangements, that each Group Company shall (except to the
extent required by this Agreement) do the things set out below at paragraphs 1.1
to 1.4 (inclusive). For the avoidance of doubt, the carrying out of any
applicable employment or pensions consultation requirements arising by reason of
the New Contractual Arrangements and the implementation of a securitisation
arrangement with the agreement or consent of the Purchaser shall not constitute
a breach of any provision of this Part 4 of the Schedule.

       

      
        	
                1.1

              	
                Ordinary
      course

              

      

       

      Conduct the
Business in the ordinary and usual way as carried out at the date of this
Agreement so as to maintain that Business as a going concern.

       

      
        	
                1.2

              	
                Legal and administrative
      compliance

              

      

       

      Conduct its
business in accordance with all applicable material legal and administrative
requirements.

       

      
        	
                1.3

              	
                Accounts and accounting
      policies

              

      

       

      Subject to
paragraph 1.2 above, prepare accounts and management accounts using the same
accounting policies, practices and principles as those applied in and on a basis
consistent with, the Accounts and Management Accounts (as appropriate) for each
Group Company for the preceding twenty four months.

       

      
        	
                1.4

              	
                Employee and pensions
      consultation

              

      

       

      Comply with all and
any applicable employment and pensions information and consultation requirements
arising by reason of the Transaction.

       

      
        	
                2.

              	
                Negative obligations of each
      Group Company

              

      

       

      The Seller and the
Purchaser shall, pursuant to the terms of the JV Agreement and the Existing
Contractual Arrangements, ensure that each Group Company shall not, other than
in the ordinary course of its business (except to the extent required by this
Agreement), do the things set out below at paragraphs 2.1 and 2.4.

       

      
        	
                2.1

              	
                Material
      agreements

              

      

       

      Amend or terminate
a material agreement or arrangement to which it is a party and in this context,
material shall be deemed to refer to agreements which have an

       

      
        
          
          

        

        
          64

          
            

          

        

        
          
          

        

         

      

      
        aggregate benefit
or value or the absence of which would have an aggregate cost to the Group as a
whole of not less than £1,000,000 per annum.

      

       

      
        	
                2.2

              	
                Action inconsistent with this
      Agreement

              

      

       

      Take any action
which is inconsistent with the provisions of this Agreement or the other
Transaction Documents or the fulfilment of each transaction contemplated by
it.

       

      
        	
                2.3

              	
                Payment
      procedures

              

      

       

      Fail to settle in
accordance with the payment procedures and timescales normally observed by the
Group Companies any debts incurred by the Group Companies in the ordinary course
of trading.

       

      
        	
                2.4

              	
                Guarantees

              

      

       

      Enter into or
modify any Guarantee.

       

      
        	
                3.

              	
                Human
      Resources

              

      

       

      
        	
                3.1

              	
                To the extent
      that the Purchaser provides reasonable written instruction to the Seller
      and the Group Companies an communicating with the Head Office Employees
      regarding the Purchasers plans for the Business following Completion, the
      Seller will use reasonable endeavours to have employees employed by the
      Seller respond to queries from the Head Office Employees regarding the
      Purchaser and the Purchasers plans for the Business post-Completion
      materially in accordance with such reasonable written
      instruction.

              

      

       

      
        	
                3.2

              	
                The Seller
      undertakes to disclose to the Purchaser an updated list of the Head Office
      Employees within seven (7) days of any change being made to that
      list.

              

      

       

      
        	
                4.

              	
                Properties

              

      

       

      
        	
                4.1

              	
                The Seller
      shall not, and shall procure that any member of the Seller’s Group shall
      not, in relation to the Properties:

              

      

       

      
        	
                 
      

              	
                4.1.1

              	
                terminate or
      otherwise bring to an end any lease pursuant to which the Properties are
      occupied nor enter into any agreement to do the
  same;

              

      

       

      
        	
                 
      

              	
                4.1.2

              	
                waive, vary
      or amend any obligations, rights or other terms of any lease pursuant to
      which the Properties are occupied nor enter into any agreement to do the
      same.

              

      

       

      
        	
                4.2

              	
                The Seller
      shall as soon as reasonably practicable, following receipt of written
      notice of the same, provide details (including copies of any relevant
      correspondence) of any allegation of breach of any covenant, restriction,
      condition or obligation or any dispute or claim, in each case adversely
      affecting the conduct of the Business at or from the
      Properties.

              

      

       

       

      
        
          
          

        

        
          65

          
            

          

        

        
          
          

        

      

       

       

      
        	
                5.

              	
                Existing Contractual
      Arrangements

              

      

       

      The Seller shall
procure that each member of the Sellers Group shall continue to provide services
to the Group pursuant to the Existing Contractual Arrangements on substantially
the same basis as such services are provided as at the date of this
Agreement.

       

      
        	
                6.

              	
                ATM (Provision of Cash)
      Agreement

              

      

       

      The Seller shall,
and the Purchaser shall procure that Tesco Stores shall, work together to find a
method by which title to cash can pass to TPFL under the ATM (Provision of Cash)
Agreement at an earlier time than is provided for in the agreed form of that
document (for example on the filling the ATM or at the point cash leaves the G4S
depot). If an agreed method is found which is acceptable to both parties, the
agreed form shall be amended accordingly.

       

       

      
        
          
          

        

        
          66

          
            

          

        

        
          
          

        

      

       

       

      PART
5

      THE
WARRANTIES

       

      
        	
                1.

              	
                CAPACITY

              

      

       

      
        	
                1.1

              	
                Power to
      contract

              

      

       

      The Seller and each
other member of the Seller’s Group has obtained all corporate authorisations and
(except to the extent relevant to the Conditions) all other governmental,
statutory, regulatory or other consents, licences, authorisations, waivers or
exemptions required to empower it to enter into and perform its obligations
under this Agreement and any other Transaction Document to which it is a
party.

       

      
        	
                1.2

              	
                Binding
      obligations

              

      

       

      This Agreement and
the Transaction Documents constitute, or will when executed constitute, valid
and binding obligations of the Seller or relevant member of the Seller’s Group
in accordance with its terms.

       

      
        	
                1.3

              	
                No breach arising from Seller’s
      obligations

              

      

       

      The execution and
delivery of, and the performance by each member of the Seller’s Group of its
obligations under, this Agreement, the other Transaction Documents and the
Seller’s Documents will not:

       

      
        	
                 
      

              	
                1.3.1

              	
                result in a
      breach of any provision of the Seller’s memorandum or articles of
      association; or

              

      

       

      
        	
                 
      

              	
                1.3.2

              	
                result in a
      breach of any order, judgment or decree of any court or governmental
      agency to which the Seller is a party or by which it is
    bound.

              

      

       

      
        	
                2.

              	
                CAPITAL

              

      

       

      
        	
                2.1

              	
                Legal and beneficial ownership
      of shares

              

      

       

      The Seller is the
sole legal and beneficial owner of the Shares and has full capacity and
authority to transfer its legal and beneficial ownership of them in accordance
with the terms of this Agreement.

       

      
        	
                2.2

              	
                No
      encumbrance

              

      

       

      There is no
Encumbrance on, over or relating to any of the Shares.

       

       

      
        
          
          

        

        
          67

          
            

          

        

        
          
          

        

      

       

       

       

      
        	
                2.3

              	
                The
    Shares

              

      

       

      
        	
                 
      

              	
                2.3.1

              	
                All the
      Shares are fully paid or properly credited as fully paid and there is no
      liability to pay any additional contributions on the
    Shares.

              

      

       

      
        	
                 
      

              	
                2.3.2

              	
                So far as the
      Seller is aware all the issued shares in each Subsidiary are legally and
      beneficially owned by Group Companies free from all Encumbrances. So far
      as the Seller is aware all such shares are fully paid and there is no
      outstanding liability to pay any additional contributions on
      them.

              

      

       

      
        	
                 
      

              	
                2.3.3

              	
                The
      information in respect of each of the Group Companies set out in Part 1 of
      the Schedule is true and accurate.

              

      

       

      
        	
                 
      

              	
                2.3.4

              	
                No Group
      Company owns or has any interest of any nature in any shares, debentures
      or other securities issued by any undertaking (other than another Group
      Company).

              

      

       

      
        	
                 
      

              	
                2.3.5

              	
                Roboscot (67)
      Limited (Roboscot)
      (company number SC338256) was a wholly owned subsidiary of the Company
      incorporated on 21 February 2008. The two ordinary shares of £1
      (representing the entire issued share capital of Roboscot) were
      transferred from TPFL to the Seller on 21 July 2008. Roboscot has not
      traded or otherwise carried out any activities since its date of
      incorporation.

              

      

       

      
        	
                3.

              	
                FINANCIAL
      MATTERS

              

      

       

      
        	
                3.1

              	
                The
    Accounts

              

      

       

      * The Last Accounts
give a true and fair view of the state of affairs of the Company and/or Group
Companies to which they relate, and its or their assets and liabilities as at
the Last Accounts Date and of its or their results for the year then ended and
the Accounts for each of the last 3 financial years ended on the Accounts Date
were prepared on a consistent basis in accordance with IFRS and the requirements
of the Act applicable on the respective dates to which they were
prepared.

       

      
        	
                3.2

              	
                Management
      Accounts

              

      

       

      * The Management
Accounts have been prepared in all material respects on a basis consistent with
the accounting bases, practices and policies as those adopted in the preparation
of the Last Accounts and the management accounts of the Company for each of the
12 monthly periods ending on 31 December 2007 as attached to the Disclosure
Letter. On the basis of the accounting bases, practices and policies used in
their preparation and having regard to the purpose for which they were prepared,
the Management Accounts when read together fairly present the financial
position

       

       

      
        
          
          

        

        
          68

          
            

          

        

        
          
          

        

      

       

       

      and profits and
losses of the Company for the period, and the period end, to which they
relate.

       

      
        	
                3.3

              	
                Analysis of
      Costs

              

      

       

      * Having regard to
the purpose for which it was prepared, the Analysis of Costs contained in the
Disclosure Documents is accurate in all material respects.

       

      
        	
                3.4

              	
                Position since Last Accounts
      Date.

              

      

       

      Since
the Last Accounts Date:

       

      
        	
                 
      

              	
                3.4.1

              	
                each Group
      Company has carried on business in the ordinary and usual
      course;

              

      

       

      
        	
                 
      

              	
                3.4.2

              	
                there has
      been no material increase or decrease in the levels of trade debtors or
      trade creditors or in the average collection or payment periods for the
      trade debtors and trade creditors respectively of any Group Company;
      and

              

      

       

      
        	
                 
      

              	
                3.4.3

              	
                there has
      been no material change in the basis (including the actuarial methodology,
      assumptions or the booked reserve margins) on which the reserves of UKI
      (in relation to the Business) have been
  calculated.

              

      

       

      
        	
                3.5

              	
                Accounting and other
      records.

              

      

       

      * The statutory
books and books of account of each Group Company required to be kept by
applicable laws in any relevant jurisdiction are up to date and have been
maintained in accordance with those laws. All such statutory books and books of
account are in the possession or under the control of a Group
Company.

       

      
        	
                3.6

              	
                Financial position of UKI (so
      far as it relates to TPFL)

              

      

       

      * The historic data
contained within the UKI Financial Information was prepared on a basis
consistent with IFRS (including as to reserving) then in force (other than
expenses and claims handling reserves) and in all material respects on a basis
consistent with the accounting bases, practices and policies adapted in the
preparation of the Last UKI Accounts. On the basis of the accounting bases,
practices and policies used in its preparation and having regard to the purpose
for which it was prepared, the historic data contained within the UKI Financial
Information when read together fairly present the financial position and profits
and losses (as measured in accordance with the existing distribution agreement
between UKI and TPFL dated 14 January 2005) of the Business (so far as it
relates to general insurance but, for clarity, excluding life insurance) for the
period, and as at the period end, to which they relate.

       

       

      
        
          
          

        

        
          69

          
            

          

        

        
          
          

        

      

       

       

      
        	
                3.7

              	
                *Reserving

              

      

       

      
        	
                 
      

              	
                3.7.1

              	
                As at the
      Accounts Date in 2005 and 2006 and the Last Accounts Date, the reserves of
      UKI (in relation to the Business), in aggregate, for payment of benefits,
      losses, claims and expenses (including litigation claims) under all
      insurance policies and other insurance-based products issued or sold in
      connection with the Business in UKI have been accounted for in accordance
      with IFRS, the Association of British Insurers Statement of Recommended
      Practice on Accounting for Insurance Business, and the Seller’s stated
      accounting policies on reserving.

              

      

       

      
        	
                 
      

              	
                3.7.2

              	
                The Margin
      Analysis Overview for the classes provided is accurate in all material
      respects in respect of the date to which it
  relates.

              

      

       

      
        	
                 
      

              	
                3.7.3

              	
                The
      Reconciliation Schedule is accurate in all material respects in respect of
      the date to which it relates.

              

      

       

      
        	
                3.8

              	
                * Actuarial information and
      analysis

              

      

       

      
        	
                 
      

              	
                3.8.1

              	
                The factual
      information and data furnished by UKI to its independent external
      actuaries in connection with the preparation of actuarial analyses
      relating to the Business was accurate in all material
      respects.

              

      

       

      
        	
                 
      

              	
                3.8.2

              	
                The Reserves
      Report has been prepared in accordance with “Guidance Note 12: General
      Insurance Business: Actuarial Reports v4.0” adopted by the Board for
      Actuarial Standards.

              

      

       

      
        	
                4.

              	
                OTHER FINANCIAL COMMITMENTS AND
      BORROWINGS

              

      

       

      
        	
                4.1

              	
                Bank
      accounts

              

      

       

      * Details of all
bank accounts (other than those accounts which are managed as suspense accounts)
in the name of and used by each Group Company are set out in the Disclosure
Documents.

       

      
        	
                4.2

              	
                Guarantees

              

      

       

      * Details of all
Guarantees given by any Group Company in respect of the business of the Seller,
and all Guarantees given by the Seller in respect of the business of any Group
Company, are set out in the Disclosure Letter.

       

       

      
        
          
          

        

        
          70

          
            

          

        

        
          
          

        

      

       

       

      
        	
                5.

              	
                TANGIBLE
      ASSETS

              

      

       

      
        	
                5.1

              	
                Ownership of
      title

              

      

       

      Except
for:

       

      
        	
                 
      

              	
                5.1.1

              	
                trading stock
      and tangible assets disposed of in the ordinary course of
      business;

              

      

       

      
        	
                 
      

              	
                5.1.2

              	
                trading stock
      and tangible assets acquired under retention or reservation of title
      arrangements; and

              

      

       

      
        	
                 
      

              	
                5.1.3

              	
                tangible
      assets which are leased, hired or rented or obtained under any similar
      arrangement,

              

      

       

      
        	
                 
      

              	
                each material
      tangible asset included in the Last Accounts, or acquired by a Group
      Company since the Last Accounts Date,
is:

              

      

       

      
        	
                 
      

              	
                5.1.4

              	
                legally and
      beneficially owned by the Group Company free from any Encumbrance;
      and

              

      

       

      
        	
                 
      

              	
                5.1.5

              	
                where capable
      of possession, in the possession or under the control of a Group
      Company.

              

      

       

      For the purposes of
this paragraph 5 of Part 5 of the Schedule, an asset will be regarded as
material to the extent that it is individually material or, when aggregated with
other assets of a like nature, they are material when so
aggregated.

       

      
        	
                6,

              	
                THE BUSINESS
      ASSETS

              

      

       

      
        	
                6.1

              	
                Possession and third party
      facilities

              

      

       

      Where a Group
Company uses assets but does not own them or any person provides material
facilities or services to a Group Company, no default event or any other event
or circumstance has occurred which may entitle that person to terminate any
agreement in respect of that use or provision where such termination would have
an aggregate cost to the Group Companies of £1,000,000 or more.

       

      
        	
                6.2

              	
                Adequacy of
      assets

              

      

       

      
        	
                 
      

              	
                6.2.1

              	
                The rights,
      properties and assets of each Group Company, the facilities and services
      to which each Group Company has a contractual right, and the rights of the
      Purchaser’s Group pursuant to this Agreement and the other New Contractual
      Arrangements together include all rights, properties, assets, facilities
      and services which are reasonably necessary for the Purchaser’s Group to
      carry on the Business after Completion in the places and substantially in
      the manner in which it has carried on as at the date of this
      Agreement.

              

      

       

      
         

        
          
            
            

          

          
            71

            
              

            

          

          
            
            

          

        

         

         

      

       

      
        	
                 
      

              	
                6.2.2

              	
                No Group
      Company depends in any material respect on the use of assets owned, or
      facilities and services provided, by any member of the Seller’s Group
      which will not be transferred to a member of the Purchaser’s Group or a
      Group Company on Completion or agreed to be provided or made available to
      them pursuant to the terms of the New Contractual
      Arrangements.

              

      

       

      
        	
                7.

              	
                INSURANCE

              

      

       

      
        	
                7.1

              	
                * The
      Disclosure Letter contains a summary of all insurance policies in which
      each Group Company has an interest (the Policies). The details
      in that summary are true and
accurate.

              

      

       

      
        	
                7.2

              	
                Validity and
      enforceability

              

      

       

      So far as the
Seller is aware, all of the Policies are valid and fully enforceable and nothing
has been done, or omitted to be done, which makes or might reasonably make any
of the Policies void or voidable.

       

      
        	
                7.3

              	
                Premiums

              

      

       

      All premiums due on
the Policies have been duly paid to date and, so far as the Seller is aware, the
Policies provide adequate cover against such risks as companies carrying on
similar business as the Group Companies would be expected to cover by
insurance.

       

      
        	
                7.4

              	
                No refusal of
      cover

              

      

       

      * In the three year
period ending on the date of this Agreement, no insurer has refused to offer
cover to any Group Company in respect of any matter for which the Group Company
sought insurance.

       

      
        	
                7.5

              	
                No outstanding
      claims

              

      

       

      No claim is
outstanding under any of the Policies and, so far as the Seller is aware, there
are no circumstances or matters which might give rise to a claim.

       

      
        	
                7.6

              	
                Claims
    data

              

      

       

      Details of all
closed claims made under the Policies in the three year period ending on the
date of this Agreement and all professional indemnity claims without time
restriction are set out in the Disclosure Documents.

      

       

      
        
          
          

        

        
          72

          
            

          

        

        
          
          

        

      

      
 

       

      
        	
                8.

              	
                CONTRACTS AND
      COMMITMENTS

              

      

       

      
        	
                8.1

              	
                Material
      contracts

              

      

       

      No Group Company is
a party to any contract, arrangement, commitment or obligation material to the
Business which:

       

      
        	
                 
      

              	
                8.1.1

              	
                is outside
      the ordinary course of the business of the Group Company as at the date of
      this Agreement; or

              

      

       

      
        	
                 
      

              	
                8.1.2

              	
                involves a
      material capital commitment or annual
  expenditure.

              

      

       

      
        	
                 
      

              	
                8.1.3

              	
                by virtue of
      the Transaction, (i) any other party will be relieved of any obligation or
      become entitled to exercise any termination right or any pre­emption
      right or (ii) any Group Company will be in default or lose any benefit,
      right or licence which it currently enjoys or (ill) a liability or
      obligation of a Group Company will be created or
  increased;

              

      

       

      
        	
                 
      

              	
                8.1.4

              	
                cannot be
      performed within its terms within 12 months after the date on which it was
      entered into or cannot be terminated on less than 12 months’ notice;
      or

              

      

       

      
        	
                 
      

              	
                8.1.5

              	
                establishes
      any material agency, distributorship, marketing, purchasing, manufacturing
      or licensing agreement or
arrangement.

              

      

       

      
        	
                8.2

              	
                Defaults

              

      

       

      No Group Company is
in material default under any material agreement or arrangement to which it is a
party and, so far as the Seller is aware, there are no circumstances likely to
give rise to such a default.

       

      
        	
                8.3

              	
                So far as the Seller is aware,
      (1) no party with whom any Group Company has entered into any
      material agreement is in material default under it and (ii) there are no
      circumstances likely to give rise to such a
  default.

              

      

       

      
        	
                8.4

              	
                * Trading
      relationships

              

      

       

      
        	
                 
      

              	
                8.4.1

              	
                During the 12
      months preceding the date of this Agreement no material supplier to the
      Business has ceased to deal with the
Business.

              

      

       

      
        	
                 
      

              	
                8.4.2

              	
                So far as the
      Seller is aware, during the 12 months preceding the date of this
      Agreement, no material supplier to the Business has indicated in writing
      an intention to cease to deal with the Business, or to materially reduce
      its supply of goods or services to the
Business.

              

      

      

       

      
        
          
          

        

        
          73

          
            

          

        

        
          
          

        

      

       

       

       

      
        	
                9.

              	
                REGULATORY

              

      

       

      
        	
                9.1

              	
                In this
      paragraph 9 of Part 5 to the Schedule, references to UKI and to Direct
      Line shall in each case be deemed to be references to “UKI, so far as is
      relevant to the Business” or “Direct Line, so far as is relevant to the
      Business” respectively.

              

      

       

      
        	
                9.2

              	
                So far as the
      Seller is aware, each Group Company, UKI and Direct Line has all
      authorisations, permissions, approvals, registrations and/or licences
      necessary to conduct business and activities that each Group Company and
      UKI conducts and performs in all jurisdictions in which it
      operates.

              

      

       

      
        	
                9.3

              	
                Each Group
      Company, UKI and Direct Line has conducted its business and all activities
      that it conducts and performs in compliance
  with:

              

      

       

      
        	
                 
      

              	
                9.3.1

              	
                the Financial
      Services and Markets Act 2000 and any secondary legislation made under
      it;

              

      

       

      
        	
                 
      

              	
                9.3.2

              	
                the Consumer
      Credit Act 1974 (as amended) and any secondary legislation made under it;
      and

              

      

       

      
        	
                 
      

              	
                9.3.3

              	
                any elements
      of applicable law imposed by or reviewed and monitored by the FSA or the
      OFT, including their rules, Statements of FSA Principles and any formal
      requirement to which any Group Company is
  subject.

              

      

       

      
        	
                9.4

              	
                So far as the
      Seller is aware each Group Company, UKI and Direct Line has conducted its
      business in material compliance with all material laws, rules and
      regulations applicable to it in all jurisdictions in which it operates,
      other than those mentioned in paragraph 9.3
  above.

              

      

       

      
        	
                9.5

              	
                So far as the
      Seller is aware, each Group Company, UKI and Direct Line has complied in
      all material respects at all times with the terms and conditions of the
      product agreements entered into between TPFL and the consumer (Customer Agreements) to
      which it is a party and so far as the Seller is aware no default or breach
      by a Group Company or UKI exists under any Customer Agreement. So far as
      the Seller is aware, each Customer Account has been operated in all
      respects in accordance with the applicable written guidelines and
      operations manuals of TPFL.

              

      

       

      
        	
                9.6

              	
                Neither any
      Group Company, UKI and Direct Line is involved in any proceedings which
      may lead to any Group Company, UKI and Direct Line ceasing to be
      authorised, approved, registered or licensed to conduct any business or
      activity in any jurisdiction in which it operates, or which may otherwise
      lead to any condition, material charge, interest, fine or penalty being
      imposed on any Group Company or UKI in any such jurisdiction, and so far
      as the Seller is aware no such proceedings are pending or
      threatened.

              

      

       

       

      
        
          
          

        

        
          74

          
            

          

        

        
          
          

        

      

      
 

       

      
        	
                9.7

              	
                * No
      intervention order, warning notice, demand notice, decision notice, final
      notice or similar disciplinary notice or order has been issued by any
      Regulatory Authority against a Group Company, or any of the Seller’s
      Directors or appointed representatives, in any jurisdiction in which each
      Group Company, UK! and Direct Line operates (each, a Regulatory
      Notice).

              

      

       

      
        	
                9.8

              	
                * So far as
      the Seller is aware, no Regulatory Notice is pending or
      threatened.

              

      

       

      
        	
                9.9

              	
                So far as the
      Seller is aware, each Group Company, UKI and Direct Line has submitted
      within any applicable time limits all returns, information and documents
      which are required by any Regulatory Authority in all jurisdictions in
      which it operates.

              

      

       

      
        	
                10.

              	
                LITIGATION

              

      

       

      
        	
                10.1

              	
                No
      proceedings

              

      

       

      No Group Company is
involved in any civil, criminal or administrative proceedings which might have a
material effect on the Business and, so far as the Seller is aware, there are no
such proceedings threatened by or against a Group Company which might have a
material effect on the Business.

       

      
        	
                10.2

              	
                No outstanding
      judgments

              

      

       

      There is no
outstanding judgment of a court or tribunal against a Group Company material in
the context of the Business.

       

      
        	
                10.3

              	
                *
      Investigations

              

      

       

      So far as the
Seller is aware, no governmental, administrative, regulatory or other official
investigation or inquiry concerning any Group Company or part of the Business is
in progress or pending.

       

      
        	
                11.

              	
                INSOLVENCY

              

      

       

      
        	
                11.1

              	
                No resolution for winding up or
      administration

              

      

       

      In relation to each
Group Company, no resolution has been proposed or passed (and no meeting has
been convened and no written resolution has been circulated with a view to
passing any resolution) for winding up or administration or for the presentation
of a petition for winding up or for the presentation of a petition or the making
of an application for an administration order or any other steps taken by any
party for the appointment of administrators (including the giving or filing of a
notice of intention to appoint administrators) or for a compromise or
composition or arrangement with creditors or any class of them.

       

       

      
        
          
          

        

        
          75

          
            

          

        

        
          
          

        

      

       

       

      
        	
                11.2

              	
                * No petition or order for
      winding up or administration

              

      

       

      In relation to each
Group Company no petition and/or application has been presented for winding up
or the appointment of administrators or interim order nor has any application or
order been made for the appointment of a provisional liquidator or a judicial
factor.

       

      
        	
                11.3

              	
                No appointment of liquidator,
      administrator or similar
officer

              

      

       

      In relation to each
Group Company, no
liquidator, administrator, receiver, administrative receiver or similar officer
has been appointed over a Group Company or any of its assets, rights or
revenues.

       

      
        	
                11.4

              	
                No action over
      assets

              

      

       

      In relation to each
Group Company no attachment, distress, execution, arrestment, poinding,
diligence or other process has been used, levied or put in force against any of
its assets and no unsatisfied judgment, order or amount is outstanding against
any Group Company.

       

      
        	
                11.5

              	
                No meeting of
      creditors

              

      

       

      In relation to each
Group Company so far as the Seller is aware, no meeting of its creditors or any
class of them has been held or summoned and no proposal or implementation has
been made for a moratorium, composition or arrangement in relation to any of its
debts, or for any type of voluntary arrangement.

       

      
        	
                12.

              	
                COMPETITION

              

      

       

      
        	
                12.1

              	
                No infringement of Competition
      Law

              

      

       

      So far as the
Seller is aware, no Group Company is nor at any material time was a party to
any:

       

      (a)        agreement,
arrangement, course of conduct or concerted practice; or

       

      (b)        merger,
acquisition or joint venture

       

      which in whole or in part:

       

      (i)        contravenes
or contravened;

       

      (ii)       is
or was invalidated by;

       

      (iii)      requires
or required notification or registration under; or

       

      (iv)      has
been the subject of notification or registration under

       

      any competition or merger control
legislation.

      

       

      
        
          
          

        

        
          76

          
            

          

        

        
          
          

        

      

      
 

       

      
        	
                12.2

              	
                No Inquiries or proceedings for
      Infringement of Competition
Law

              

      

       

      
        	
                12.2.1

              	
                * So far as
      the Seller is aware, no Group Company has received any process, notice or
      communication (formal or informal) by or on behalf of any authority, court
      or tribunal having jurisdiction in competition or merger control matters
      (any such body or person being referred to below as a Competition Authority) in respect of any
      matter, in which a Group Company is or was a party to or is or was
      involved in such matter, and so far as the Seller is aware no Group
      Company has received any indication (from whatever source) that any such
      process, notice or communication has been issued or that any person has
      made a complaint to a Competition Authority against the
      Company;

              

      

       

      
        	
                12.2.2

              	
                So far as the
      Seller is aware, no Group Company is subject to any order, judgment,
      decision or direction given by any Competition Authority, or party to any
      undertaking or assurance given to any such Competition Authority, that
      records or arises from a breach of any competition legislation by
      it;

              

      

       

      
        	
                12.2.3

              	
                * So far as
      the Seller is aware, no director, key employee or consultant of any Group
      Company has received any process, notice or other communication (formal or
      informal) by or on behalf of any Competition Authority in relation to the
      enforcement of any personal breach of any competition legislation in
      respect of any matter in which a Group Company is or was a party or is or
      was involved; and

              

      

       

      
        	
                12.2.4

              	
                So far as the
      Seller is aware, no director, key employee or consultant of any Group
      Company is subject to any order, judgement, decision or direction given by
      any Competition Authority that records or arises from a breach of any
      competition legislation by a Group Company or by that director, key
      employee or consultant in respect of any matter in which a Group Company
      is or was a party or is or was
involved.

              

      

       

      
        	
                13.

              	
                INTELLECTUAL PROPERTY RIGHTS
      AND CONFIDENTIAL INFORMATION

              

      

       

      
        	
                13.1

              	
                Ownership

              

      

       

      
        	
                13.1.1

              	
                Part 7 of the
      Schedule is complete and accurate. The Owned Registered IPRs are
      subsisting and are in all cases free from
  Encumbrances.

              

      

       

      
        	
                13.1.2

              	
                Part 7 of the
      Schedule lists: (a) all registered IPRs owned by the Group; (b) all
      pending applications for registered IPRs made by the Group; and (c) all
      registered IPRs that are used exclusively or predominantly by the Group
      and which are owned by a member of the Seller's
  Group.

              

      

      

       

      
        
          
          

        

        
          77

          
            

          

        

        
          
          

        

      

       

       

      
        	
                13.1.3

              	
                A Group
      Company owns all of the rights and interests in and has title to, or has
      licensed or sub-licensed to it, as part of the Seller’s Group, all of the
      Business IPRs.

              

      

       

      
        	
                13.1.4

              	
                The licences
      of Intellectual Property Rights granted to, and by, any Group Company are
      in force. So far as the Seller is aware: (i) none of the parties to them
      is in default, (ii) there are no grounds on which they might be terminated
      and (iii) no disputes have arisen or are foreseeable in connection with
      them.

              

      

       

      
        	
                13.1.5

              	
                The Owned
      IPRs are not subject to any security, interest, option, mortgage, charge
      or lien.

              

      

       

      
        	
                13.2

              	
                Cancellation or revocation of
      Owned Registered IPRs

              
	 	 
	 	So
      far as the Seller is aware, no act has been committed and there has been
      no omission by or on behalf of a Group Company which could reasonably
      provide grounds for revocation, cancellation, rectification or other
      modification of any of the Owned Registered
IPRs.

      

       

      
        	
                13.3

              	
                No infringement of owned
      intellectual property rights

              

      

       

      
        	
                 
      

              	
                So far as the
      Seller is aware:

              

      

       

      
        	
                13.3.1

              	
                there is, and
      has been in the last two years, no infringement of any of the Owned IPRs;
      and

              

      

       

      
        	
                13.3.2

              	
                none of the
      operations of any Group Company infringes, or has in the last two years
      infringed, the Intellectual Property Rights of a third
    party.

              

      

       

      
        	
                13.4

              	
                Data
      Protection

              

      

       

      
        	
                13.4.1

              	
                So far as the
      Seller is aware, each Group Company complies with all applicable data
      protection laws, guidelines and industry
  standards.

              

      

       

      
        	
                13.4.2

              	
                * So far as
      the Seller is aware, neither the Seller, nor any Group Company has
      received any notice or allegation alleging that any Group Company has not
      complied with any applicable data protection laws, guidelines and industry
      standards.

              

      

       

      
        	
                13.5

              	
                Customer Data and
      Records

              

      

       

      
        	
                13.5.1

              	
                So far as the
      Seller is aware, there are no material inaccuracies or omissions in the
      Customer Data and Records which are likely to have a material adverse
      effect upon the Business.

              

      

       

      
        	
                13.5.2

              	
                The Customer
      Data and Records have been maintained in material compliance with the
      policies of the Seller's Group (as applicable) which
  are

              

      

       

       

      
        
          
          

        

        
          78

          
            

          

        

        
          
          

        

      

       

       

      set out in document
numbers 15 and 16 listed in the Schedule annexed to the Disclosure
Letter.

       

      
        	
                14.

              	
                TAXATION

              

      

       

      
        	
                14.1

              	
                So far as the
      Seller is aware, each Group Company has duly made or given, within the
      requisite periods, all relevant returns, computations, notices and
      information which are or have been required to be made or given to any
      Taxation Authority. So far as the Seller is aware, all such returns,
      computations, notices and information are up to date and materially
      complete and accurate and none of them is the subject of any material
      dispute with any Taxation
Authority.

              

      

       

      
        	
                14.2

              	
                * No Group
      Company has been the subject of an investigation by, or on behalf of, any
      Taxation Authority in the six year period ended on the date of this
      Agreement.

              

      

       

      
        	
                15.

              	
                PROPERTY

              

      

       

      
        	
                15.1

              	
                Ownership

              

      

       

      The Properties
comprise all the land and buildings owned, controlled, occupied or used in
connection with the Business or by any Group Company or in relation to which any
Group Company has any right, interest or liability (actual or contingent) save
that the services which will be provided to the Business or any Group Company
pursuant to the New Contractual Arrangements are and will be provided from other
properties owned, leased or occupied by the Seller.

       

      
        	
                15.2

              	
                Property
      Schedule

              

      

       

      * The information
in respect of the Properties set out in Part 10 of the Schedule is true and
accurate and not misleading in any respect.

       

      
        	
                15.3

              	
                Possession and
      Occupation

              

      

       

      No person other
than the Seller or any member of the Seller’s Group is in or actually or
conditionally entitled to possession, occupation, use or control of the whole or
any part of the Properties.

       

      
        	
                15.4

              	
                Title

              

      

       

      The Seller is the
tenant or the sub-tenant of the Properties and the terms on which the Seller
holds leasehold title thereto is set out in the lease or sublease (as the case
may be) and where relevant superior lease of the relevant Property included in
the Disclosure Documents.

      

       

      
        
          
          

        

        
          79

          
            

          

        

        
          
          

        

      

       

       

       

      
        	
                15.5

              	
                Adverse
      Interests

              

      

       

      
        	
                15.5.1

              	
                So far as the
      Seller is aware the Properties are not subject to any matter which
      adversely affects the Group’s ability to continue to carry on its existing
      business from the Properties in the same manner as at
    present.

              

      

       

      
        	
                15.5.2

              	
                * Neither the
      Seller nor any Group Company has received written notice alleging any
      breach of any covenant, restriction, condition or obligation (whether
      statutory or otherwise) affecting the Properties or the conduct of the
      existing business at or from the
Properties.

              

      

       

      
        	
                15.6

              	
                Rights

              

      

       

      * The Seller has
never received any challenge or threat of challenge to the exercise at the
Properties of all rights necessary for the use, enjoyment and maintenance of
such Properties by the Group for the purpose of its existing business carried on
at or from the Properties.

       

      
        	
                15.7

              	
                Disputes

              

      

       

      * There are no
subsisting current or contingent notices, actions, disputes or claims relating
to the Properties or their use.

       

      
        	
                15.8

              	
                Due Diligence and
      Information

              

      

       

      
        	
                15.8.1

              	
                * The copies
      of the lease or sublease and where applicable superior lease of the
      Properties contained in Disclosure Documents are true and materially
      complete copies and the said lease or sublease has not been varied or
      amended in any way. The Seller is not aware of any amendments to the said
      superior lease.

              

      

       

      
        	
                15.8.2

              	
                In relation
      to the leases or sublease pursuant to which the Seller holds its interest
      in the Properties:

              

      

      
        	 	 	 
	
                 
      

              	
                (a)

              	
                * the Seller
      has not received any notice alleging any subsisting breach of the tenant’s
      covenants in the relevant lease;

              

      

      
        	 	 	 
	
                 
      

              	
                (b)

              	
                all rents,
      service charge and insurance payments have been paid by the Seller, and
      accepted by the relevant landlord, on or about the due date for payment
      and there is currently no arrears of rent, service charge and insurance
      payments:

              

      

      
        	 	 	 
	
                 
      

              	
                (c)

              	
                no rent is
      due for or currently under review;

              

      

      
        	 	 	 
	
                 
      

              	
                (d)

              	
                * no notices
      have been served or other action taken by either the landlord or the
      tenant to determine the relevant lease or sublease prior to the expiry of
      the full contractual term.

              

      

       

       

      
        
          
          

        

        
          80

          
            

          

        

        
          
          

        

      

       

       

      
        	
                16.

              	
                EMPLOYEES

              

      

       

      
        	
                16.1

              	
                Employees of the
      Group

              

      

       

      No Group Company
employs (either directly or indirectly) any person or has entered into a
contract for service with any person.

       

      
        	
                16.2

              	
                Head Office
      Employees

              

         

        
          	
                   
      

                	
                  16.2.1

                	
                        
                    Full and
      accurate details are contained in the Disclosure Documents
      of:

                  

                

        

      

      
      

      
        	 	 	 
	
                 
      

              	
                (a)

              	
                the Head
      Office Employees (including details of their respective salaries, ages,
      length of service, notice periods and benefits applicable to
      them);

              

      

      
        	 	 	 
	
                 
      

              	
                (b)

              	
                the terms of
      all current contracts of employment of any Head Office Employees whose
      basic salary exceeds £100,000 per annum (the Key
      Employees);

              

      

      
        	 	 	 
	
                 
      

              	
                (c)

              	
                all terms of
      employment or benefits provided of general application or of application
      to a particular grade of or category of Head Office
    Employee;

              

      

      
        	 	 	 
	
                 
      

              	
                (d)

              	
                the terms of
      all current recognition, procedural, collective or other agreements
      between the Seller and any trade union or other body representing the Head
      Office Employees, or any of them;
and

              

      

      
        	 	 	 
	
                 
      

              	
                (e)

              	
                the terms of
      all share incentive schemes, share option schemes or profit sharing, bonus
      or other incentive schemes applicable to any of the Head Office
      Employees.

              

         

        
          	
                   
      

                	
                  16.2.2

                	
                        
                    The Seller
      has not entered into any arrangement regarding any future variation in any
      contract of employment in respect of any of the Key Employees or any
      agreement imposing an obligation on the Seller to increase the basis
      and/or rates of remuneration and/or the provision of other benefits in
      kind (including any share incentive, share option, profit related pay,
      profit sharing bonus or other incentive scheme) to or on behalf of any of
      the Head Office Employees at any future
  date.

                  

                
	 	 	 
	 	      
                  16.2.3

                	      
                  All contracts
      of employment (written or unwritten) with any Key Employees can be
      terminated by six (6) months’ notice or less without giving rise to a
      claim for damages, severance pay or compensation (other than a statutory
      redundancy payment or statutory compensation for unfair
      dismissal).

                
	 	 	 
	 	      
                  16.2.4

                	      
                  The Seller
      and any other member of the Seller’s Group, where appropriate, has in
      relation to each of the Head Office
  Employees

                

        

      

      
         

        
          
          

        

        
          81

          
            

          

        

        
          
          

           

          complied in all
material respects with all legislation, regulations, codes of conduct, codes of
practice, collective agreements, terms and conditions of employment, orders,
agreements with third parties, and awards relevant to their conditions of
service or to the relations between it and the Head Office Employees and any
recognised trade union or body representing the Head Office
Employees.

        

      

       

      
        	
                16.2.5

              	
                No material
      number, grade or category of Head Office Employees or and no Key Employee
      has given notice of termination of his contract of employment or is under
      notice of dismissal.

              

      

       

      
        	
                16.2.6

              	
                * None of the
      Head Office Employees have within the period of three years preceding the
      date of this Agreement transferred to the Seller as a result of a
      “relevant transfer” (as defined in the Transfer of Undertakings
      (Protection of Employment) Regulations
2006).

              

      

       

      
        	
                16.2.7

              	
                No dispute
      has arisen within the last five (5) years between the Seller and a
      material number or category of the Head Office Employees (or any trade
      union, appropriate representatives or other body representing all or any
      of the Head Office Employees), and the Seller is not aware of any
      circumstances which may give rise to any such
  dispute.

              

      

       

      
        	
                17.

              	
                PENSIONS

              

      

       

      * There has been no
correspondence with the Pensions Regulator in respect of the Seller or any
associated or connected person concerning the power of the Pensions Regulator to
insure a contribution notice under section 36 of the Pensions Act 2004 or a
financial support direction under section 43 of the Pensions Act
2004.

       

       

       

      
        
          
          

        

        
          82

          
            

          

        

        
          
          

        

      

       

       

      PART
6

       

      PURCHASER’S
WARRANTIES

       

       

      
        	
                1.

              	
                Power to
      contract

              

      

       

      The Purchaser has
obtained all corporate authorisations and (except to the extent relevant to the
Conditions) all other governmental, statutory, regulatory or other consents,
licences, authorisations, waivers or exemptions required to empower it to enter
into and perform its obligations under this Agreement and any other Transaction
Document to which it is a party.

       

      
        	
                2.

              	
                Binding
      obligations

              

      

       

      This Agreement and
the Transaction Documents constitute, or will when executed constitute, valid
and binding obligations of the Purchaser in accordance with its
terms.

       

      
        	
                3.

              	
                No breach arising from Seller’s
      obligations

              

      

       

      The execution and
delivery of, and the performance by the Purchaser of its obligations under this
Agreement or any other Transaction Document and the Purchaser’s Documents will
not:

       

      
        	
                 
      

              	
                3.1

              	
                result in a
      breach of any provision of the Purchaser’s memorandum or articles of
      association; or

              

      

       

      
        	
                 
      

              	
                3.2

              	
                result in a
      breach of any order, judgment or decree of any court or governmental
      agency to which the Purchaser is a party or by which it is
      bound.

              

      

       

      
        
          
          

        

        
          83

          
            

          

        

        
          
          

        

      

       

      PART
7

      THE
INTELLECTUAL PROPERTY RIGHTS

       

       

      Section
A:  Owned Registered Intellectual Property Rights (registrations and
applications)

       

      Domain
Names

       

      
        	
                Domain
      Name

              	
                Owner

              
	
                clubcardcreditcard.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                clubcardcreditcard.com

              	
                Tesco
      Personal Finance Limited

              
	
                clubcardcreditcard.net

              	
                Tesco
      Personal Finance Limited

              
	
                penzugyi-partner.com

              	
                Tesco
      Personal Finance Limited

              
	
                tesco1search.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescobank.biz

              	
                Tesco
      Personal Finance Limited

              
	
                tesco-bevasarlokartya.com

              	
                Tesco
      Personal Finance Limited

              
	
                tescobonds.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescobonds.corn

              	
                Tesco
      Personal Finance limited

              
	
                tescobonds.info

              	
                Tesco
      Personal Finance Limited

              
	
                tescobonds.net

              	
                Tesco
      Personal Finance Limited

              
	
                tescobonds.org

              	
                Tesco
      Personal Finance Limited

              
	
                tescobonds.org.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescobonuscreditcard.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescobonuscreditcard.com

              	
                Tesco
      Personal Finance Limited

              
	
                tescocar.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tesco-car.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tesco-carinsurance.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescochildbond.biz

              	
                Tesco
      Personal Finance Limited

              
	
                tescochildbond.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescochild.bond.info

              	
                Tesco
      Personal Finance Limited

              
	
                tescochildbond.net

              	
                Tesco
      Personal Finance Limited

              

      

       

       

      
        
          
          

        

        
          84

          
            

          

        

        
          
          
 

      

      
        	
                Domain
      Name

              	
                Owner

              
	
                tescochildbond.org

              	
                Tesco
      Personal Finance Limited

              
	
                tescochildbond.org.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescochildbonusbond.biz

              	
                Tesco
      Personal Finance Limited

              
	
                tescochildbonusbond.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescochildbonusbond.info

              	
                Tesco
      Personal Finance Limited

              
	
                tescochildbonusbond.net

              	
                Tesco
      Personal Finance Limited

              
	
                tescochildbonusbond.org

              	
                Tesco
      Personal Finance Limited

              
	
                tescochildbonusbond.org.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescochildrensbond.biz

              	
                Tesco
      Personal Finance Limited

              
	
                tescochildrensbond.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescochildrensbond.info

              	
                Tesco
      Personal Finance Limited

              
	
                tescochildrensbond.net

              	
                Tesco
      Personal Finance Limited

              
	
                tescochildrensbond.org

              	
                Tesco
      Personal Finance Limited

              
	
                tescochildrensbond.org.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescochildrensbonusbond.biz

              	
                Tesco
      Personal Finance Limited

              
	
                tescochildrensbonusbond.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescochildrensbonusbond.info

              	
                Tesco
      Personal Finance Limited

              
	
                tescochildrensbonusbond.net

              	
                Tesco
      Personal Finance Limited

              
	
                tescochildrensbonusbond.org

              	
                Tesco
      Personal Finance Limited

              
	
                tescochildrensbonusbond.org.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescoclubcardcreditcard.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescoclubcardcreditcard.com

              	
                Tesco
      Personal Finance Limited

              
	
                tescocompare.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescocreditcards.biz

              	
                Tesco
      Personal Finance Limited

              
	
                tescodrive.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescoestateagency.co.uk

              	
                Tesco
      Personal Finance Limited

              

      

       

      
        
          
          

        

        
          85

          
            

          

        

        
          
          
 

      

      
        	
                Domain
      Name

              	
                Owner

              
	
                tescoestateagency.com

              	
                Tesco
      Personal Finance Limited

              
	
                tescoestateagency.net

              	
                Tesco
      Personal Finance Limited

              
	
                tescoestateagents.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescoestateagents.net

              	
                Tesco
      Personal Finance Limited

              
	
                tescofinance.biz

              	
                Tesco
      Personal Finance Limited

              
	
                tescofinance.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescofinance.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescofinance.ie

              	
                Tesco
      Personal Finance Limited

              
	
                tescofinances.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescohealthinsurance.biz

              	
                Tesco
      Personal Finance Limited

              
	
                tescohealthinsurance.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescohealthinsurance.com

              	
                Tesco
      Personal Finance Limited

              
	
                tescohealthinsurance.info

              	
                Tesco
      Personal Finance Limited

              
	
                tescohealthinsurance.net

              	
                Tesco
      Personal Finance Limited

              
	
                tescohealthinsurance.org

              	
                Tesco
      Personal Finance Limited

              
	
                tescohealthinsurance.org.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescohome.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tesco-home.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescohomes.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescohouses.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescohouses.com

              	
                Tesco
      Personal Finance Limited

              
	
                tescohouses.net

              	
                Tesco
      Personal Finance Limited

              
	
                tescoidtheft.biz

              	
                Tesco
      Personal Finance Limited

              
	
                tescoidtheft.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescoidtheft.info

              	
                Tesco
      Personal Finance Limited

              
	
                tescoidtheft.net

              	
                Tesco
      Personal Finance Limited

              

      

       

      
        
          
          

        

        
          86

          
            

          

        

        
          
          
 

      

      
        	
                Domain
      Name

              	
                Owner

              
	
                tescoidtheft.org

              	
                Tesco
      Personal Finance Limited

              
	
                tescoidtheft.org.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescoinsurance.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescoinsurances.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescoisa.biz

              	
                Tesco
      Personal Finance Limited

              
	
                tescoisa.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tesco-isa.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescoloan.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescoloan.org.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tesco-loan.org.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescoloans.biz

              	
                Tesco
      Personal Finance Limited

              
	
                tescoloans.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tesco-magyarorszag.com

              	
                Tesco
      Personal Finance Limited

              
	
                tescomoney.biz

              	
                Tesco
      Personal Finance Limited

              
	
                tescomoney.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescomortgages.biz

              	
                Tesco
      Personal Finance Limited

              
	
                tescomortgages.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tesco-mortgages.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescomotorinsurance.biz

              	
                Tesco
      Personal Finance Limited

              
	
                tescoonesearch.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescoonesearch.com

              	
                Tesco
      Personal Finance Limited

              
	
                tescoonline.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescoonlinebanking.biz

              	
                Tesco
      Personal Finance Limited

              
	
                tescoonlinebanking.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tesco-onlinebanking.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescoparking.co.uk

              	
                Tesco
      Personal Finance Limited

              

      

       

      
        
          
          

        

        
          87

          
            

          

        

        
          
          
 

      

      
        	
                Domain
      Name

              	
                Owner

              
	
                tescopension.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescopensions.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tesco-penzugyi-partner.com

              	
                Tesco Persona
      Finance Limited

              
	
                tescopersonalfinance.biz

              	
                Tesco
      Personal Finance Limited

              
	
                tescopersonalfinance.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescopet.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescopetinsurance.biz

              	
                Tesco
      Personal Finance Limited

              
	
                tescopets.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tesco-pets.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescopf.biz

              	
                Tesco
      Personal Finance Limited

              
	
                tescopf.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescopremiumbonds.biz

              	
                Tesco
      Personal Finance Limited

              
	
                tescopremiumbonds.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescopremiumbonds.com

              	
                Tesco
      Personal Finance Limited

              
	
                tescopremiumbonds.info

              	
                Tesco
      Personal Finance Limited

              
	
                tescopremiumbonds.net

              	
                Tesco
      Personal Finance Limited

              
	
                tescopremiumbonds.org

              	
                Tesco
      Personal Finance Limited

              
	
                tescopremiumbonds.org.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescosaving.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescosavings.biz

              	
                Tesco
      Personal Finance Limited

              
	
                tescosavings.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tesco-savings.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescosavings.info

              	
                Tesco
      Personal Finance Limited

              
	
                tescosavings.net

              	
                Tesco
      Personal Finance Limited

              
	
                tescosavings.org

              	
                Tesco
      Personal Finance Limited

              
	
                tescosavings.org.uk

              	
                Tesco
      Personal Finance Limited

              

      

       

      
        
          
          

        

        
          88

          
            

          

        

        
          
          

        

      

       

       

      
        	
                Domain

              	
                Owner

              
	
                tescosearchandsave.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescosearchandsave.com

              	
                Tesco
      Personal Finance Limited

              
	
                tescosfinance.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tescotravelinsurance.biz

              	
                Tesco
      Personal Finance Limited

              
	
                tescotravelmoney.biz

              	
                Tesco
      Personal Finance Limited

              
	
                tescotravelmoney.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tesco-travelmoney.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                tesco-visa.co.uk

              	
                Tesco
      Personal Finance Limited

              
	
                uk-personal-finance.co.uk

              	
                Tesco
      Personal Finance Limited

              

      

       

      Trade
Marks

       

      
        	
                Trade
      Mark

              	
                Country

              	
                Registration
      No.

              	
                Registration
      Date

              
	
                FRAUDSAFE and
      device

              	
                European
      Community

              	
                005049903

              	
                22 February
      2007

              

      

       

      Domain Names registered to
Seller’s Group and transferred to TPFL on 17 July 2008

       

      
        	
                Domain
      name

              	
                Legal
      Owner

              
	
                penzugyipartner.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tesco1search.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescoaruhitelkartya.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescobank.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescobanking.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescobanking.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescobevasarlokartya.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescobonuscreditcard.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tesco-breakdown.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescocar.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescocar.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescocarinsurance.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescocarinsurance.ie

              	
                Ulster
      Bank Limited

              
	
                tescocarloan.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescochildbond.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescochildbonusbond.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescochildrensbond.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescochildrensbonusbond.com

              	
                The
      Royal Bank of Scotland Group plc

              

      

       

      
        
          
          

        

        
          89

          
            

          

        

        
          
          
 

      

      
        	
                Domain
      name

              	
                 Legal
      Owner

              
	
                tescoclubcardcreditcard.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescocompare.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescocreditcards.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescocreditcards.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescocreditcards.ie

              	
                Ulster
      Bank Limited

              
	
                tescodrive.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescodrive.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescofinance.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tesco-finance.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescofinance.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescofinance.net

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescofinance.tv

              	
                The
      Royal Bank of Scotland Plc

              
	
                tescofinance-online.co.uk

              	
                The
      Royal Bank of Scotland Plc

              
	
                tescofinance-online.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescofinancesecure.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescofinancesecure.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescofinancesecure.ie

              	
                Ulster
      Bank Limited

              
	
                tescohitelkartya.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tesco-hitelkartya.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescohome.com

              	
                The
      Royal Bank of Scotland plc

              
	
                tesco-home.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescohome.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescohomeinsurance.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescohomeinsurance.ie

              	
                Ulster
      Bank Limited

              
	
                tescohomes.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescoidtheft.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tesco-insurance.co.uk

              	
                RBS
      Insurance Services Limited

              
	
                tescoisa.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescoisa.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescojamjar.co.uk

              	
                RBS
      Insurance Services Limited

              
	
                tescolifeinsurance.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescolifeinsurance.ie

              	
                Ulster
      Bank Limited

              
	
                tescoloan.com

              	
                The
      Royal Bank of Scotland PLC

              
	
                tescoloans.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescoloans.ie

              	
                Ulster
      Bank Limited

              
	
                tescomagyar.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescomagyarorszag.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescomoney.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescomoney.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescomortgage.co.uk

              	
                The
      Royal Bank of Scotland

              
	
                tescomortgages.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescomortgages.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescomortgages.ie

              	
                Ulster
      Bank Limited

              
	
                tescomotorinsurance.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescomotorinsurance.ie

              	
                Ulster
      Bank Limited

              
	
                tesco-online.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescoonlinebanking.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tesco-onlinebanking.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescopension.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescopensions.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescopensions.eu

              	
                The
      Royal Bank of Scotland Group plc

              

      

       

      
        
          
          

        

        
          90

          
            

          

        

        
          
          

        

      

      

      
        	
                Domain
      name

              	
                Legal
      Owner

              
	
                tescopersonalfinance.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescopersonalfinance.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescopet.com

              	
                The
      Royal Bank of Scotland PLC

              
	
                tescopet.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescopetinsurance.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescopetinsurance.ie

              	
                Ulster
      Bank Limited

              
	
                tescopets.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescopets.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescopf.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescopf.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescopf.net

              	
                The
      Royal Bank of Scotland PLC

              
	
                tescosaving.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescosavings.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescosavings.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescosavings.ie

              	
                Ulster
      Bank Limited

              
	
                tescoscratchcards.co.uk

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescoscratchcards.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescosecure.co.uk

              	
                The
      Royal Bank of Scotland Group

              
	
                tescosecure.com

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescosecure.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescosecure.ie

              	
                The
      Royal Bank of Scotland PLC

              
	
                tescosecure.net

              	
                The
      Royal Bank of Scotland Group

              
	
                tescosecure.org

              	
                The
      Royal Bank of Scotland Group

              
	
                tescosfinance.com

              	
                The
      Royal Bank of Scotland Group PLC

              
	
                tescosloan.com

              	
                The
      Royal Bank of Scotland Plc

              
	
                tescotest.com

              	
                The
      Royal Bank of Scotland Group PLC

              
	
                tescotravelinsurance.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescotravelinsurance.ie

              	
                Ulster
      Bank Limited

              
	
                tescotravelmoney.com

              	
                The
      Royal Bank of Scotland Group PLC

              
	
                tescotravelmoney.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescovaluecar.eu

              	
                The
      Royal Bank of Scotland Group plc

              
	
                tescovisa.com

              	
                The
      Royal Bank of Scotland Group PLC

              
	
                tescovisa.eu

              	
                The
      Royal Bank of Scotland Group
plc

              

 

      
        
          
          

        

        
          91

          
            

          

        

        
          
          

        

      

       

      PART
8

      THE
TAX DEED

       

       

      
        	
                1.

              	
                DEFINITIONS AND
      INTERPRETATION

              

      

       

      
        	
                1.1

              	
                In this Part,
      the following words have the meanings
stated:

              

      

       

      Completion Relief means any
Relief arising to the Company in respect of an Event occurring or period ending
on or before Completion which was taken into account in computing any provision
for deferred Tax which appears (or but for such Relief would have appeared) in
the Last Accounts or has been treated as an asset in the Last
Accounts.

       

      Demand means any liability to
make a payment of Tax and any notice, demand, assessment, letter or other
document issued or any claim made or action taken by or on behalf of any
Taxation Authority or any self assessment made by the Company from which it
appears that the Company or the Purchaser has incurred or may have incurred a
Tax Liability in respect of which the Seller may be liable under this Part or
for which the Purchaser could claim under the Tax Warranties.

       

      Event means any transaction,
act or event and the earning, accrual or receipt of any income, profits or
gains.

       

      Purchaser Relief means any
Relief arising to any member of the Purchaser’s Group (other than the
Company).

       

      Purchaser's Group means the
Purchaser and any other company or companies which either are or become after
Completion, or have within the six years ending at Completion been, treated as
members of the same group as, or otherwise connected or associated in any way
with, the Purchaser for any Tax purpose.

       

      Relief means any relief, loss,
allowance, exemption, credit, set off or deduction in respect of Tax or taken
into account in computing income, profit or gains for the purposes of any Tax
and any right to repayment of Tax.

       

      Retained Group means the
Seller and any other company or companies (other than the Company) which either
are or become after Completion,
or have within the six years ending at Completion been, treated as members of
the same group as, or otherwise connected or associated in any way with, the
Seller for any tax purpose.

       

      Seller's VAT Group means the
Seller and such other companies which are treated as members of a group for
purposes of Section 43 VATA, the representative member of which is The Royer
Bank of Scotland Group plc.

       

       

       

      
        
          
          

        

        
          92

          
            

          

        

        
          
          

        

      

      
 

      Tax includes (without
limitation) tax (including VAT), duties, contributions, levies, imposts, charges
or withholdings, in each case in the nature of tax whether of the United Kingdom
or elsewhere in the world, but excluding water rates and business property
rates, together with all fines, penalties or interest relating to any of the
foregoing or to any late or incorrect return in respect of any of
them.

       

      Taxation Authority means H.M.
Revenue and Customs and any other body or person whether of the United Kingdom
or elsewhere in the world competent to impose, administer or collect
Tax.

       

      Tax Liability
means:

       

      
        	
                 
      

              	
                (a)

              	
                a liability
      to make an actual payment of Tax (or an amount in respect of Tax) to a
      Taxation Authority, in which case the Tax Liability is the amount of the
      payment (or amount);

              

      

       

      
        	
                 
      

              	
                (b)

              	
                the use or
      set off of any Completion Relief or any Relief arising in respect of any
      period since Completion or Purchaser Relief in each case against a
      liability to make a payment of Tax in respect of which the Seller would
      otherwise have been liable under this Schedule, in which case the Tax
      Liability shall be the amount of Tax which would have been payable but for
      such set off, provided that the Purchaser shall procure that Reliefs other
      than a Completion Relief or a Purchaser Relief are used, so far as
      reasonably practicable, to offset any such liability to make a payment of
      Tax;

              

      

       

      
        	
                 
      

              	
                (c)

              	
                the
      disallowance of any Completion Relief, in which case the Tax Liability
      shall be the value attributed to such Completion Relief in the Last
      Accounts.

              

      

       

      
        	
                1.2

              	
                In this
      Part:

              

      

       

      
        	
                 
      

              	
                1.2.1

              	
                any reference
      to income, profits or gains earned, accrued or received on or before a
      particular date or in respect of a particular period shall include income,
      profits or gains which for Tax purposes are deemed to have been or are
      treated or regarded as earned, accrued or received on or before that date
      or in respect of that period;

              

      

       

      
        	
                 
      

              	
                1.2.2

              	
                any reference
      to payment for group
      relief means any payment in respect of the surrender or any loss or
      other relief (including without limitation any Tax, Tax refund or credit)
      or in respect of any reallocation of any gain, loss, disposal or other
      matter for any Tax purpose but for the avoidance of doubt excluding any
      payments made pursuant to Schedule 28AA of the Taxes
  Act;

              

      

       

      
        	
                 
      

              	
                1.2.3

              	
                persons shall
      be treated as connected
      if they are connected within the meaning of section 839 of the
      Taxes Act;

              

      

       

       

      
        
          
          

        

        
          93

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                1.2.4

              	
                unless the
      context otherwise requires:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                references to
      persons include
      individuals, bodies corporate (wherever incorporated), unincorporated
      associations and partnerships;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                the headings
      are inserted for convenience only and do not affect the construction of
      this Part;

              

      

       

      
        	
                 
      

              	
                (c)

              	
                references to
      one gender include all genders;

              

      

       

      
        	
                 
      

              	
                1.2.5

              	
                any reference
      to an enactment or statutory provision is a reference to it as it may have
      been, or may from time to time be, amended, modified, consolidated or re
      enacted (with or without modification), and also include any provision
      replaced by such provision;

              

      

       

      
        	
                 
      

              	
                1.2.6

              	
                references to
      any English legal term for any action, remedy, method of judicial
      proceeding, legal document, legal status, court official or any other
      legal concept is, in respect of any jurisdiction other than England,
      deemed to include the legal concept or term which most nearly approximates
      in that jurisdiction to the English legal
term;

              

      

       

      
        	
                 
      

              	
                1.2.7

              	
                the rule
      known as the ejusdem generis rule shall not apply and
      accordingly:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                general words
      shall not be given a restrictive meaning by reason of the fact that they
      are preceded by words indicating a particular class of acts, matters or
      things; and

              

      

       

      
        	
                 
      

              	
                (b)

              	
                general words
      shall not be given a restrictive meaning by reason of the fact that they
      are followed by particular examples intended to be embraced by the general
      words;

              

      

       

      
        	
                 
      

              	
                1.2.8

              	
                unless the
      context otherwise requires the expression the Company includes each of
      the Subsidiaries so that this Part shall apply to each Subsidiary as if it
      were the Company; and

              

      

       

      
        	
                 
      

              	
                1.2.9

              	
                references in
      this Part to the Last
      Accounts shall include the Last Accounts of the Company or any of
      the Subsidiaries, as is
appropriate.

              

      

       

      
        	
                2.

              	
                COVENANT

              

      

       

      
        	
                2.1

              	
                The Seller
      covenants with the Purchaser to pay to the Purchaser an amount equal to
      fifty per cent of the amount of:

              

      

       

      
        	
                 
      

              	
                2.1.1

              	
                any Tax
      Liability of the Company which arises as a result of any Event which
      occurred on or before Completion (other than any Tax Liability arising in
      respect of profits earned after Completion as a result of such Event);
      and

              

      

       

       

      
        
          
          

        

        
          94

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                2.1.2

              	
                (without
      prejudice to the generality of the foregoing paragraph) any Tax Liability
      of the Company which arises in connection with or by reference to any
      certificate provided for the purposes of the Income Tax (Deposit-Takers)
      (Interest Payments) Regulations, SI 1990/2232 (form R85) relating to
      interest paid on or before Completion, including for the avoidance of
      doubt any loss, destruction or misfiling of, or damage to, any such
      certificate, or any failure to comply with any procedures or obligations
      in respect of any such certificate or the
  Regulations.

              

      

       

      
        	
                2.2

              	
                The Seller
      covenants with the Purchaser to pay to the Purchaser an amount equal
      to:

              

      

       

      
        	
                 
      

              	
                2.2.1

              	
                any Tax
      Liability of the Company which consists of interest and/or penalties and
      arises as a result of failure to discharge or default in discharging any
      of the Seller’s obligations under paragraph 8 of this
  Part;

              

      

       

      
        	
                 
      

              	
                2.2.2

              	
                any Tax
      Liability of the Company which is properly attributable to any member of
      the Retained Group; and

              

      

       

      
        	
                 
      

              	
                2.2.3

              	
                any liability
      of the Company to:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                make to any
      member of the Retained Group any payment for group relief;
    or

              

      

       

      
        	
                 
      

              	
                (b)

              	
                repay to any
      member of the Retained Group the whole or any part of any payment for
      group relief previously received,

              

      

       

      in each case
pursuant to any agreement or arrangement entered into by the Company on or
before Completion, but excluding any liability arising pursuant to the
provisions of paragraph 11 of this Part.

       

      
        	
                2.3

              	
                The covenants
      contained in this Part shall extend to fifty per cent of any reasonable
      costs or expenses properly incurred by the Purchaser or the Company in
      connection with any successful claim under paragraph 2.1 of this Part, and
      100% of any such costs and expenses so incurred in connection with any
      successful claim under paragraph 2.2 of this
  Part.

              

      

       

      
        	
                2.4

              	
                Any payments
      made pursuant to this paragraph 2 shall as far as possible be treated as
      an adjustment to the Consideration paid by the Purchaser for the Shares
      under the terms of this Agreement.

              

      

       

      
        	
                3.

              	
                EXCLUSIONS

              

      

       

      
        	
                3.1

              	
                The covenant
      contained in paragraph 2.1.1 shall not cover any Tax Liability to the
      extent that:

              

      

       

       

      
        
          
          

        

        
          95

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                3.1.1

              	
                provision
      reserve or allowance in respect of such Tax Liability was made in the Last
      Accounts;

              

      

       

      
        	
                 
      

              	
                3.1.2

              	
                such Tax
      Liability or amount arises in the ordinary course of business of the
      Company since the Last Accounts Date and prior to Completion provided
      that:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                ordinary
      course shall be deemed to include any dividends paid by the Company;
      but

              

      

       

      
        	
                 
      

              	
                (b)

              	
                any Tax
      Liability which is a VAT liability arising in connection with any
      Commission (as defined in the General Insurance Distribution Agreement) or
      any Interchange Fee Income (as defined in ATM (Provision of Cash)
      Agreement) shall be deemed not to arise in the ordinary course of
      business;

              

      

       

      
        	
                 
      

              	
                3.1.3

              	
                such Tax
      Liability has been paid or discharged prior to
  Completion;

              

      

       

      
        	
                 
      

              	
                3.1.4

              	
                such Tax
      Liability or amount arises or is increased as a result of any change in
      the rates of Tax or (other than in respect of a VAT liability arising in
      connection with any Commission (as defined in the General Insurance
      Distribution Agreement) or any Interchange Fee Income (as defined in the
      ATM (Provision of Cash) Agreement) any imposition of new Tax legislation
      or any withdrawal of relief from Tax or any change in applicable law (or
      change in interpretation on the basis of case law), regulation or
      published practice of any Taxation Authority or to any judicial decision
      or pronouncement not in effect at
Completion;

              

      

       

      
        	
                 
      

              	
                3.1.5

              	
                such Tax
      Liability or amount would not have arisen but for or is increased by any
      voluntary transaction, act or omission of the Purchaser, the Company or
      any company controlled by the Purchaser or a person or persons controlling
      the Purchaser after Completion except that this exclusion shall not apply
      where such transaction, action or
omission:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                is carried
      out by the Company pursuant to a legally binding obligation created on or
      before Completion; or

              

      

       

      
        	
                 
      

              	
                (b)

              	
                is carried
      out by the Company in the ordinary course of business of the Company as
      carried on at Completion; or

              

      

       

      
        	
                 
      

              	
                3.1.6

              	
                such Tax
      Liability would not have arisen or has been increased only by the failure
      of the Purchaser and/or the Company to act in accordance with the
      provisions of this Part;

              

      

       

       

      
        
          
          

        

        
          96

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                3.1.7

              	
                such Tax
      Liability can be reduced or eliminated by the use of any Relief (other
      than a Completion Relief or Purchaser Relief) available, or which is for
      no consideration made available by the Seller to the Company, arising in
      respect of any Event occurring or period ending on or before Completion
      (or but for the use of such Relief after Completion such Tax Liability
      could have been reduced or
eliminated);

              

      

       

      
        	
                 
      

              	
                3.1.8

              	
                such Tax
      Liability arises or is increased as a result of any change in the nature
      or conduct of or by reason of the winding up of or the cessation of any
      trade or business of the Company after
  Completion;

              

      

       

      
        	
                 
      

              	
                3.1.9

              	
                such Tax
      Liability would not have arisen or would have been reduced or eliminated,
      but for:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                the failure
      or omission on the part of the Purchaser or the Company after Completion
      to make any claim, election, surrender or disclaimer or to give any notice
      or consent to do any other thing either as the Seller may require in
      respect of periods or matters for which the Seller has conduct under
      paragraphs 7 or 8 or, in respect of periods or matters for which the
      Seller does not have conduct, where the making, giving or doing of which
      was taken into account in computing any provision or reserve for Tax made
      in the Last Accounts and details of which are given to the Purchaser in
      reasonable time;

              

      

       

      
        	
                 
      

              	
                (b)

              	
                any
      disclaimer, claim, election, surrender or notice given or made by or on
      behalf of the Company on or after Completion which was not taken into
      account in the Last Accounts and
      otherwise than at the direction of the Seller under paragraph
      7;

              

         

        
          	
                   
      

                	
                  3.1.10

                	
                  
                    such Tax
      Liability arises or is increased as a result of any change after
      Completion in the length of any accounting period for Tax purposes of the
      Company or (other than a change which is necessary in order to comply with
      the law or generally accepted accounting principles applicable to the
      Company at Completion) in the accounting policy or Tax reporting practice
      of the Company;

                  

                

           

          
            	
                     
      

                  	
                    3.1.11

                  	
                          
                      such Tax
      Liability comprises interest or penalties arising by virtue of any
      underpayment of Tax prior to Completion insofar as any such underpayment
      would not have been an underpayment but for an Event occurring after
      Completion;

                    

                  

             

            
              	
                       
      

                    	
                      3.1.12

                    	
                            
                        such Tax
      Liability arises from an adjustment made pursuant to Schedule 28 AA of the
      Taxes Act (to which for the avoidance of doubt the provisions
      of

                      

                    

            

          

        

      

       

      
        
          
          

        

        
          97

          
            

          

        

        
          
          

        

      

       

      the side letter
dated 24 April 2008 to the Shareholders’ Agreement dated 12 August 1997 shall
apply); or

      
         

        
          	
                   
      

                	
                  3.1.13

                	
                        
                    such Tax
      Liability has been the subject of a successful claim under the
      Agreement.

                  

                

        

      

      
      

       

      
        	
                3.2

              	
                The
      provisions of paragraph 3.1 shall also operate to limit or reduce the
      liability of the Seller in respect of claims under the Tax
      Warranties.

              

      

       

      
        	
                4.

              	
                OVER-PROVISIONS, RELIEFS,
      ETC

              

      

       

      
        	
                4.1

              	
                If the
      auditors for the time being of the Company shall certify (at the request
      and expense of the Seller) that:

              

      

       

      
        	
                 
      

              	
                4.1.1

              	
                any provision
      for Tax (other than deferred tax) in the Last Accounts has proved to be an
      over-provision (the Over-provision);
      or

              

      

       

      
        	
                 
      

              	
                4.1.2

              	
                any Tax
      Liability which has resulted in a payment having been made or becoming due
      from the Seller under this Part has given rise to a corresponding saving
      (the Saving) for
      the Company or the Purchaser which would not otherwise have
      arisen;

              

      

       

      then fifty per cent
of the amount of the Over-provision or Saving (the Relevant Amount) shall be
dealt with in accordance with paragraph 4.2 below.

       

      
        	
                4.2

              	
                Where it is
      provided under paragraph 4.1 that a Relevant Amount is to be dealt with in
      accordance with this paragraph:

              

      

       

      
        	
                 
      

              	
                4.2.1

              	
                the Relevant
      Amount shall first be set off against any payment then due from the Seller
      under this Part or the Agreement;
and

              

      

       

      
        	
                 
      

              	
                4.2.2

              	
                to the extent
      there is an excess, a refund shall be made to the Seller of any previous
      payment or payments made by the Seller under this Part or the Agreement
      and not previously refunded under this Part or the Agreement up to the
      amount of such excess within 15 Business Days of the Relevant Amount being
      ascertained or, if later (in the case of a Saving) the date when the
      Saving takes effect; and

              

      

       

      
        	
                 
      

              	
                4.2.3

              	
                to the extent
      that the excess referred to in paragraph 4.2.2 is not exhausted under that
      paragraph, the remainder of such excess shall be carried forward and
      offset against any future payment or payments which become due from the
      Seller under this Part or the
Agreement.

              

      

       

      
        	
                4.3

              	
                Where any
      such certification as is mentioned in paragraph 4.1 has been made, the
      Seller or the Purchaser or the Company may (at its own expense) request
      the auditors for the time being of the Company to review such
      certification in the light of

              

      

       

      
        
          
          

        

        
          98

          
            

          

        

        
          
          

        

      

       

      all relevant
circumstances, including any facts which have become known only since such
certification, and to certify whether such certification remains correct or
whether, in the light of those circumstances, the amount that was the subject of
such certification should be amended.

       

      
        	
                4.4

              	
                If the
      auditors certify under paragraph 4.3 that an amount previously certified
      should be amended, that amended amount shall be substituted for the
      purposes of paragraph 4.2 as the Relevant Amount in place of the amount
      originally certified, and such adjusting payment (if any) as may be
      required by virtue of the substitution shall be made as soon as
      practicable by or (as the case may be) to the
  Seller.

              

      

       

      
        	
                4.5

              	
                The Purchaser
      undertakes to notify the Seller as soon as reasonable practicable upon the
      Purchaser or the Company becoming aware that there is an Over-provision or
      Saving.

              

      

       

      
        	
                5.

              	
                RECOVERY FROM THIRD
      PARTY

              

      

       

      
        	
                5.1

              	
                If the Seller
      is liable to make or has made a payment under this Part or under the Tax
      Warranties and the Purchaser or the Company receives or is then or
      subsequently becomes entitled to recover any sum or Relief in respect of
      the matter giving rise to the liability from some other person (including
      a Taxation Authority but other than the Purchaser or the Company or any
      person connected with either of them) the Purchaser shall notify the
      Seller promptly and shall, if so required, take all reasonable action to
      enforce such recovery (keeping the Seller fully informed of the progress
      of any action taken and providing it with copies of all relevant
      correspondence and documentation), making all such reasonable applications
      as are appropriate for the recovery of costs, subject to the Seller first
      indemnifying the Purchaser and the Company to the Purchaser’s reasonable
      satisfaction against fifty per cent of all reasonable costs and expenses
      of the Purchaser and the Company, and shall promptly account to the Seller
      for the lesser of:

              

      

       

      
        	
                 
      

              	
                5.1.1

              	
                fifty per
      cent of any sums so recovered (net of any Tax suffered thereon), including
      costs, interest and any repayment supplement or, in the case of a Relief
      obtained, the amount by which the Company is relieved of any obligation to
      make an actual payment of or in respect of Tax (the Benefit);
      and

              

      

       

      
        	
                 
      

              	
                5.1.2

              	
                the aggregate
      amount paid by the Seller pursuant to paragraph 2 and/or pursuant to the
      indemnity for costs given in this
paragraph.

              

      

       

      
        	
                5.2

              	
                Any amount of
      the Benefit not paid to the Seller pursuant to paragraph 5.1 shall be
      carried forward and set off against any future payment or payments which
      become due from the Seller under this Part or the
    Agreement.

              

      

       

      
        
          
          

        

        
          99

          
            

          

        

        
          
          

        

      

       

      
        	
                5.3

              	
                Any payment
      required to be made by the Purchaser pursuant to this paragraph 5 shall be
      made:

              

      

       

      
        	
                 
      

              	
                5.3.1

              	
                where the
      Purchaser or the Company receives a payment, within 15 Business Days
      thereof; and

              

      

       

      
        	
                 
      

              	
                5.3.2

              	
                where the
      Purchaser or the Company obtains a Relief, on or before the date on which
      Tax would have been payable to the relevant Taxation Authority but for the
      use of such Relief.

              

      

       

      
        	
                6.

              	
                SECONDARY
      LIABILITIES

              

      

       

      
        	
                6.1

              	
                The Seller
      covenants with the Purchaser to pay to the Purchaser an amount equivalent
      to any Tax or any amount on account of Tax which the Company, or any other
      member of the Purchaser’s Group, is required to pay as a result of a
      failure by any member of the Retained Group to discharge that Tax (for
      which it is primarily liable).

              

      

       

      
        	
                6.2

              	
                The Purchaser
      covenants with the Seller to pay to the Seller an amount equivalent to any
      Tax or any amount on account of Tax which any member of the Retained Group
      is required to pay as a result of a failure by the Company, or any other
      member of the Purchaser’s Group, to discharge that Tax (for which it is
      primarily liable).

              

      

       

      
        	
                6.3

              	
                The covenants
      contained in paragraphs 6.1 and 6.2
shall:

              

      

       

      
        	
                 
      

              	
                6.3.1

              	
                extend to any
      reasonable costs incurred in connection with such Tax or a claim under
      paragraph 6.1 and 6.2 as the case may
be;

              

      

       

      
        	
                 
      

              	
                6.3.2

              	
                (in the case
      of paragraph 6.2) not apply to Tax to the extent that the Purchaser could
      claim payment in respect of it under paragraph 2, except to the extent a
      payment has been made pursuant to paragraph 2 and the Tax to which it
      relates was not paid by the
Company;

              

      

       

      
        	
                 
      

              	
                6.3.3

              	
                not apply to
      Tax to the extent it has been recovered under any relevant statutory
      provision (and the Purchaser or the Seller as the case may be shall
      procure that no such recovery is sought to the extent that payment is made
      hereunder).

              

      

       

      
        	
                6.4

              	
                Paragraphs 7
      and 9 (claims procedure and due date for payment) shall apply to the
      covenants contained in paragraphs 6.1 and 6.2 as they apply to the
      covenants contained in paragraph 2, replacing references to the Seller by
      the Purchaser (and vice versa) where appropriate, and making any other
      necessary modifications.

              

      

       

      
        
          
          

        

        
          100

          
            

          

        

        
          
          

        

      

       

      
        	
                7.

              	
                CLAIMS
      PROCEDURE

              

      

       

      
        	
                7.1

              	
                If the
      Purchaser or the Company become aware, or the Seller becomes aware, of any
      Demand relevant for the purposes of this Part, the Purchaser shall (or
      shall procure that the Company shall) or the Seller shall, as appropriate,
      forthwith (and in any event within 15 Business Days of becoming so aware)
      give written notice of that Demand (including reasonable details of the
      Demand, the due date for payment and the amount of claim under this Part)
      to the Seller or the Purchaser, as appropriate, and the Purchaser shall
      further:

              

      

       

      
        	
                 
      

              	
                7.1.1

              	
                take or
      procure that the Company shall take such action and give such information
      and assistance in connection with the affairs of the Company as the Seller
      may reasonably request to avoid, dispute, defend, resist, appeal or
      compromise the Demand, provided the Seller has first indemnified the
      Purchaser and the Company to the reasonable satisfaction of the Purchaser
      against fifty per cent of all losses, liabilities, costs, damages and
      expenses (including any further liability to Tax or interest on overdue
      Tax) which may thereby be incurred;
and

              

      

       

      
        	
                 
      

              	
                7.1.2

              	
                keep the
      Seller fully informed of any actual or proposed material developments and
      provide the Seller with copies of all material correspondence and
      documentation relating to such
Demand.

              

      

       

      
        	
                7.2

              	
                The actions
      which the Seller may reasonably request under paragraph 7.1 above shall
      include (without limitation) the Company applying to postpone the payment
      of any Tax and/or allowing the Seller to take on or take over at the
      Seller’s own expense, the conduct of all or any proceedings of whatsoever
      nature arising in connection with the Demand in question, in which case,
      the Purchaser shall provide and shall procure that the Company shall
      provide such information and assistance as the Seller may reasonably
      require in connection with the preparation for and conduct of those
      proceedings and the Seller shall:

              

      

       

      
        	
                 
      

              	
                7.2.1

              	
                keep the
      Purchaser fully informed of any actual or proposed material developments
      and provide the Purchaser with copies of all material correspondence and
      documentation relating to such
Demand;

              

      

       

      
        	
                 
      

              	
                7.2.2

              	
                ensure that
      no correspondence, return or other document shall be submitted to any
      Taxation Authority without first giving the Purchaser a reasonable
      opportunity to comment thereon and without incorporating such reasonable
      comments;

              

      

       

      
        	
                 
      

              	
                7.2.3

              	
                allow the
      Purchaser to take over and continue any relevant proceedings should the
      Seller notify the Purchaser in writing that it no longer wishes
      to

              

      

       

      
        
          
          

        

        
          101

          
            

          

        

        
          
          

        

      

       

      continue such
proceedings, subject to the provisions of this paragraph 7 and at the
Purchaser's expense.

       

      
        	
                7.3

              	
                The Purchaser
      shall procure that:

              

      

       

      
        	
                 
      

              	
                7.3.1

              	
                no Demand or
      action in respect of which the Seller could be required to make a payment
      under this Part is settled or otherwise compromised without the Seller’s
      prior written consent (such consent not to be unreasonably withheld or
      delayed); and

              

      

       

      
        	
                 
      

              	
                7.3.2

              	
                no
      correspondence, return or other document shall be submitted to any
      Taxation Authority the effect of which could put such Taxation Authority
      on notice of any matter which could give rise to, or increase a claim
      under this Part without first giving the Seller a reasonable opportunity
      to comment thereon and without incorporating such reasonable
      comments.

              

      

       

      
        	
                7.4

              	
                The Purchaser
      shall not be required to take any action pursuant to paragraph 7.1, 7.2 or
      7.3 if, in the Purchaser’s reasonable opinion, the action is likely to
      materially adversely affect the future liability of the Purchaser or the
      Company to Tax or, in the case of any proposed action which involves
      contesting the Demand before any court or other appellate body (including
      the General or Special Commissioners or VAT & Duties Tribunal), unless
      the Seller has been advised by Tax Counsel of at least 10 years’ call,
      after disclosure of all relevant information and documents, that it is
      reasonable to take the action requested by the
  Seller.

              

      

       

      
        	
                7.5

              	
                If the Seller
      does not request the Purchaser to take any appropriate action within 30
      Business Days of notice to the Seller, or if no action is required to be
      taken by virtue of paragraph 7.4 and the Seller has not proposed in
      writing any alternative action, or if the Seller notifies the Purchaser in
      writing that it does not wish to exercise its rights under this paragraph
      7, the Purchaser shall be free to satisfy or settle (or to allow the
      Company to satisfy or settle) the relevant Tax Liability on such terms as
      it may in its absolute discretion think
fit.

              

      

       

      
        	
                8.

              	
                TAX
    RETURNS

              

      

       

      
        	
                8.1

              	
                The Seller or
      the Seller’s duly appointed agents shall prepare all the Tax returns and
      computations of the Company for all accounting periods ended on or prior
      to Completion (the Tax
      Returns) at the Company’s
expense.

              

      

       

      
        	
                8.2

              	
                The Seller or
      the Seller’s duly appointed agents shall deliver all Tax Returns which are
      required to be signed by or on behalf of the Company to the Purchaser for
      authorisation, signing and submission. If a time limit applies in relation
      to any Tax Return, the Seller shall ensure that the Purchaser receives the
      Tax Return no later than 15 Business Days before the expiry of the time
      limit.

              

      

      
      

       

      
        
          
          

        

        
          102

          
            

          

        

        
          
          

        

      

       

      
        	
                8.3

              	
                The Seller
      shall procure that:

              

      

       

      
        	
                 
      

              	
                8.3.1

              	
                the Purchaser
      receives copies of all written correspondence with any Taxation Authority
      insofar as it is relevant to the Tax Returns;
  and

              

      

       

      
        	
                 
      

              	
                8.3.2

              	
                no Tax Return
      is submitted to any Taxation Authority which is not, so far as the Seller
      is aware, true and accurate in all respects, and not
      misleading.

              

      

       

      
        	
                8.4

              	
                The Purchaser
      shall procure that the Company shall cause the Tax Returns to be
      authorised, signed and submitted to the appropriate authority without
      amendments or with such amendments as the Seller shall agree and shall
      make or procure that the Company shall make all such claims, surrenders,
      disclaimers, notices or elections in relation to all accounting periods
      ended on or prior to Completion as the Seller shall require and shall give
      the Seller or the duly authorised agent or agents all such reasonable
      assistance as may be required to agree the Tax Returns with the
      appropriate authorities.

              

      

       

      
        	
                8.5

              	
                The Purchaser
      shall be under no obligation to procure the authorisation, signing or
      submission to a Taxation Authority of any document delivered to it under
      paragraph 8.2 which it considers in its reasonable opinion to be false or
      misleading in any material respect, but for the avoidance of doubt shall
      be under no obligation to make any enquiry as to the completeness or
      accuracy and shall be entitled to rely entirely on the Seller and its
      agents.

              

      

       

      
        	
                8.6

              	
                The Seller or
      the duly authorised agent or agents shall prepare all documentation and
      deal with all matters (including correspondence) relating to the Tax
      Returns and the Purchaser shall procure that the Company shall afford such
      access to their books, accounts and records as is necessary and reasonable
      to enable the Seller or the duly authorised agent or agents to prepare the
      Tax Returns and conduct matters relating to the Tax Returns in accordance
      with the Seller’s rights under this
paragraph.

              

      

       

      
        	
                8.7

              	
                The Purchaser
      shall have responsibility for, and the conduct of preparing, submitting
      and agreeing with the relevant Taxation Authority all Tax computations and
      returns of the Company for any accounting period which both commences
      prior to Completion and ends after Completion (a Straddle Period). Draft
      computations and returns and any correspondence with a Taxation Authority
      in respect of a Straddle Period will be submitted to the Seller before
      they are submitted to a Taxation Authority and the Seller will have a
      period of 15 Business Days to comment thereon. The Purchaser shall procure
      that the Company shall incorporate the Seller’s reasonable comments before
      submission of the correspondence or returns and computations to the
      Taxation Authority. The Purchaser shall procure that the Company shall
      afford such access to their books, accounts and records as is necessary
      and reasonable to

              

      

       

      
        
          
          

        

        
          103

          
            

          

        

        
          
          

        

      

       

      enable the Seller
to exercise its rights under this paragraph 8.7. The Seller shall provide such
assistance as the Purchaser shall reasonably require in preparing all
computations or returns relating to the Straddle Period.

       

      
        	
                9.

              	
                DUE
      DATE FOR PAYMENT AND INTEREST

              

      

       

      
        	
                9.1

              	
                All payments
      to be made by the Seller under this Part shall be made by the later of 15
      Business Days after receipt of a written demand in respect of the same
      and:

              

      

       

      
        	
                 
      

              	
                9.1.1

              	
                in respect of
      a liability under paragraphs (a) or (b) of the definition of Tax
      Liability, 5 Business Days before the last date on which the Tax is
      payable to the Taxation Authority demanding the same without giving rise
      to interest or fines;

              

      

       

      
        	
                 
      

              	
                9.1.2

              	
                in respect of
      a liability under paragraph (c) of the definition of Tax Liability, 5
      Business Days before the last day on which the Company must pay Tax
      arising due to the Relief being disallowed to the Taxation Authority
      demanding the same without giving rise to interest and
    fines.

              

      

       

      
        	
                10.

              	
                VAT

              

      

       

      
        	
                10.1

              	
                The Seller
      and the Purchaser shall procure that steps are taken to ensure that the
      Company ceases to be a member of the Seller’s VAT Group with effect from
      Completion.

              

      

       

      
        	
                10.2

              	
                The Purchaser
      will procure that the Company pays to the representative member of the
      Seller’s VAT Group at least 5 Business Days before the last date for
      submission for the VAT return for the period current at Completion, an
      amount equal to:

              

         

        
          	
                   
      

                	
                  10.2.1

                	
                        
                    the amount of
      VAT for which the representative member is obliged to account to HMRC
      which is attributable to supplies, acquisitions or importations made by
      the Company in the period current at Completion until the date it ceases
      to be a member of the Seller’s VAT Group;
    Less:

                  

                

           

          
            	
                     
      

                  	
                    10.2.2

                  	
                          
                      the amount
      equal to all deductible input tax in respect of supplies, acquisitions or
      importations made to the Company in the period referred to in
      sub-paragraph 10.2.1.

                    

                  

          

           

        

      

      Provided that if
the amount determined under sub-paragraph 10.2.2 exceeds the amount determined
under sub-paragraph 10.2.1, the Seller will procure that the representative
member of the Sellers VAT Group will pay an amount equal to that excess to the
Purchaser within 15 Business Days of the due date for payment of VAT for the
period current at Completion.

       

      
        
          
          

        

        
          104

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                11.

              	
                CONSORTIUM
      RELIEF

              

      

       

      
        	
                 
      

              	
                11.1

              	
                The Seller
      shall be entitled to surrender (and to procure that any other company
      which is a member of the Retained Group and which is entitled to consent
      to a surrender pursuant to section 402(3) of the Taxes Act 1988,
      surrenders) to the Company, trading losses and other amounts eligible for
      surrender by way of relief from corporation tax under Chapter IV, Part X,
      of the Taxes Act 1988 (a Surrender), to the
      extent legally possible. No payment shall be made in respect of any
      Surrender except to the extent set out in the following provisions of this
      paragraph 11.

              

      

       

      
        	
                 
      

              	
                11.2

              	
                The Seller
      shall give and procure that the relevant surrendering company within the
      Retained Group gives all consents and takes such other action as may
      reasonably be required to ensure that any Surrender is effectively made
      within any relevant time limits.

              

      

       

      
        	
                 
      

              	
                11.3

              	
                The Purchaser
      shall give consent to any Surrender and procure that the Company makes a
      claim for the losses surrendered or takes such other action as may
      reasonably be required to ensure that such Surrender is effectively made
      within any relevant time limits, provided that the Purchaser shall not be
      obliged to procure that the Company take any action pursuant to this
      sub-paragraph which in the Purchaser’s reasonable opinion could increase
      the liability to Tax of the
Company.

              

      

       

      
        	
                 
      

              	
                11.4

              	
                In respect of
      any Surrender, the Purchaser shall procure that the Company shall make a
      payment to the relevant surrendering company as respects the amount
      surrendered (as referred to in section 402(6) of the Taxes Act 1988) not
      later than 5 Business Days after the submission of the Company’s tax
      return or amended tax return for the accounting period in which the
      relevant losses or other amounts have been claimed by the
      Company.

              

      

       

      
        	
                 
      

              	
                11.5

              	
                The amount of
      any payment referred to in sub-paragraph 11.4 shall be equal to the amount
      surrendered multiplied by a percentage equal to the effective percentage
      rate of corporation tax applicable in the United Kingdom to companies
      generally in respect of income profits for the relevant accounting period
      of the Company.

              

      

       

      
        	
                 
      

              	
                11.6

              	
                Any payment
      made pursuant to sub-paragraph 11.4 shall be subject to return or
      repayment if, and to the extent, that it is determined that the relevant
      losses or other amounts surrendered are not available for surrender or
      there is an insufficiency of profits of the Company and any such payment
      shall be adjusted to the extent that it is subsequently found to have been
      incorrectly calculated.

              

      

       

      
        
          
          

        

        
          105

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                11.7

              	
                The amount of
      any return or repayment required pursuant to sub-paragraph 11.6 shall be
      increased:

              

      

       

      
        	
                (a)     
        

              	
                where the
      repayment is made because the losses or other amounts are not available
      for surrender, by an amount equal to any interest (which for the avoidance
      of doubt shall not be treated as interest for the purposes of clause 24.3)
      that becomes payable by the Company in respect of late paid corporation
      tax that would not have been payable had the losses or other amounts been
      available for surrender; or

              

      

       

      
        	
                (b)     
        

              	
                where the
      return or repayment is made because the Company has insufficient profits
      to accept such surrender (in whole or in part), by an amount equal to
      interest at a rate equal to the Seller’s base rate from the date the
      payment falling due under sub-paragraph 11.4 was actually made to and
      including the date the return or repayment is actually
    made.

              

      

      

       

       

       

      
        
          
          

        

        
          106

          
            

          

        

        
          
          

        

      

       

       

      PART
9

       

      LIMITATIONS
ON SELLER’S LIABILITY

       

      
        	
                1.

              	
                BASIS OF
      CLAIMS

              

      

       

      
        	
                1.1

              	
                For the
      avoidance of doubt, the parties agree that the basis for all Claims and
      Tax Claims brought by any of the parties will, in accordance with ordinary
      contractual principles, arise in respect of the acquisition by the
      Purchaser of the Shares pursuant to this
  Agreement.

              

      

       

      
        	
                2.

              	
                LIMITATIONS ON
      AMOUNT

              

      

       

      
        	
                2.1

              	
                Individual and aggregate
      liability

              

      

       

      The Seller shall
not be liable for a Claim unless and until:

       

      2.1.1     the
Seller’s liability for an individual Claim (or series of related Claims with
respect to the same subject matter, facts or circumstances which may be
aggregated to form a Claim) exceeds £500,000 (a Small Claim): and

       

      2.1.2     the
Seller’s aggregate liability for all Small Claims exceeds £10,000,000 (in which
event the Seller shall be liable for the full amount of the Small Claims and not
just the excess over £10,000,000),

       

      save that this
paragraph 2.1 shall not apply to any Claim under a Warranty to which paragraph
2.3 applies.

       

      
        	
                2.2

              	
                Maximum
      liability

              

      

       

      The Seller’s total
aggregate liability for all Claims and Tax Claims is limited to £285,000,000
(including all legal and other professional costs, fees, charges and expenses of
the Purchaser).

       

      
        	
                2.3

              	
                Liability in respect of
      Warranties 6.2.1 and 6.2.2

              

      

       

      The Seller shall
not be liable for a Claim under Warranties 6.2.1 or 6.2.2 unless and until the
Seller’s liability for an individual Claim under any of those Warranties (or
series of related Claims with respect to the same subject matter, facts or
circumstances which may be aggregated to form a Claim) exceeds
£100,000.

       

      
        	
                3.

              	
                TIME LIMITS FOR BRINGING
      CLAIMS

              

      

       

      
        	
                3.1

              	
                Time
    periods

              

      

       

      The Seller shall
not be liable for a Claim or a Tax Claim unless it receives from the Purchaser
written notice of the Claim or Tax Claim (stating, so far as practicable and
known to the Purchaser, in reasonable detail the matter giving rise to the Claim
or

       

       

      
        
          
          

        

        
          107

          
            

          

        

        
          
          

        

      

       

      Tax Claim and an
estimate, on a without prejudice basis, the amount of the Claim or Tax
Claim):

       

      
        	
                 
      

              	
                3.1.1

              	
                on or before
      the seventh anniversary of Completion in respect of a Tax Claim;
      and

              

      

       

      
        	
                 
      

              	
                3.1.2

              	
                on or before
      the expiry of the period ending eighteen months after the date of
      Completion in respect of a Claim.

              

      

       

      
        	
                3.2

              	
                Unsatisfied prior
      claims

              

      

       

      Any Claim or Tax
Claim which has been notified to the Seller pursuant to paragraph 3.1 (and which
has not been previously satisfied, settled or withdrawn), shall be deemed to
have been withdrawn and shall become fully barred and
unenforceable:

       

      
        	
                 
      

              	
                3.2.1

              	
                subject to
      sub-paragraph 3.2.2 below, on the expiry of the period of six months
      following the date on which the Seller received notice of the Claim or Tax
      Claim in accordance with paragraph
3.1,

              

      

       

      
        	
                 
      

              	
                3.2.2

              	
                in the case
      of a Claim or Tax Claim based on a contingent liability or a liability for
      an unliquidated amount, six months after that liability becomes an actual
      liquidated liability,

              

      

       

      unless legal
proceedings in respect of the Claim or Tax Claim have been issued and served on
the Seller.

       

      
        	
                4.

              	
                GENERAL EXCLUSIONS ON
      LIABILITY

              

      

       

      
        	
                4.1

              	
                Post-completion
      events

              

      

       

      The Seller shall
not be liable for a Claim to the extent that the Claim is attributable (in whole
or in part) to or is increased as a result of an Event occurring after
Completion by a member of the Purchaser’s Group or any of their respective
officers, employees or agents in each case outside the ordinary course of
business. This paragraph shall not limit or extinguish the liability of the
Seller where any such Event was specifically required by the terms of any
legally binding agreement entered into before Completion.

       

      
        	
                4
      2

              	
                Change in
      law

              

      

       

      The Seller shall
not be liable for a Claim to the extent that the Claim is attributable (in whole
or in part) to, or is increased as a result of, the passing or coming into force
of, or any change in, after the date of this Agreement, any law, rule,
regulation, directive, interpretation of the law or any administrative practice
of any government, governmental department, agency or regulatory body in any
such case not actually or prospectively in force at the date of this
Agreement.

       

      
        
          
          

        

        
          108

          
            

          

        

        
          
          

        

      

       

      
        	
                4.3

              	
                Change in accounting policies
      etc.

              

      

       

      The Seller shall
not be liable for a Claim to the extent that the Claim is attributable (in whole
or in part) to, or is increased as a result of, a change made after Completion
in the accounting policies or practices or any Tax reporting practice or the
length of any accounting period for Tax purposes of the Purchaser or a Group
Company, save where required to comply with law or IFRS.

       

      
        	
                4.4

              	
                Consent

              

      

       

      The Seller shall
not be liable for a Claim to the extent that the matter giving rise to the Claim
arises from an Event occurring before Completion:

       

      
        	
                 
      

              	
                4.4.1

              	
                as a direct
      result of a unilateral act of the Purchaser in relation to the Business
      where such act was undertaken without the written approval or written
      consent of the Seller (excluding any acts undertaken by a present or
      former Purchaser Appointed Director within the ordinary course of business
      of the Group provided that he or she was not acting in breach of the JV
      Agreement); or

              

      

       

      
        	
                 
      

              	
                4.4.2

              	
                at the
      written request or direction of, or with the written consent of, the
      Purchaser.

              

      

       

      
        	
                4.5

              	
                Provision in Accounts or
      Management Accounts

              

      

       

      The Seller shall
not be liable for a Claim to the extent that the matter giving rise to the Claim
was specifically provided for in the Accounts or the Management
Accounts.

       

      
        	
                4.6

              	
                Contingent
      liability

              

      

       

      Without prejudice
to a party’s ability to bring a Claim under paragraph 3 of this Part 9 to the
Schedule, the Seller shall not be liable for a Claim to the extent that the
Claim is based upon a contingent liability unless and until such contingent
liability becomes an actual liability and is due and payable.

       

      
        	
                4.7

              	
                Indirect or consequential
      loss

              

      

       

      The Seller shall
not be liable whether for negligence, breach of contract, misrepresentation or
otherwise, for any indirect or consequential loss or damage (inducting any loss
of profit, goodwill, revenue or business opportunity that, in each case, is
indirect or consequential) arising under or in connection with this
Agreement.

       

      
        	
                4.8

              	
                Assignation

              

      

       

      The Seller shall
not be liable for a Claim or Tax Claim to the extent that the Purchaser assigns
or purports to assign any of its rights under this Agreement other

       

      
        
          
          

        

        
          109

          
            

          

        

        
          
          

        

      

       

      than in accordance
with the provisions of Clause 23 (Assignation) or makes or purports to
make a declaration of trust in respect of any of those rights.

       

      
        	
                5.

              	
                NO LIABILITY IF LOSS IS
      OTHERWISE COMPENSATED

              

      

       

      
        	
                5.1

              	
                Claim arising from same
      circumstances

              

      

       

      Neither the
Purchaser nor a Group Company shall be entitled to recover more than once in
respect of the same circumstances giving rise to a Claim or Tax
Claim.

       

      
        	
                5,2

              	
                Recovery from third
      party

              

      

       

      The Seller shall
not be liable to the extent that the matter giving rise to the Claim is an
amount for which the Company has made an actual recovery from any person other
than the Seller or any member of the Seller’s Group whether under any provision
of applicable law, insurance policy or otherwise howsoever.

       

      
        	
                5.3

              	
                Mitigation

              

      

       

      The Purchaser
shall, and shall procure that each member of the Purchaser’s Group shall, take
all reasonable steps to avoid and/or mitigate the Seller’s liability for a
Claim. Nothing in this Part of the Schedule shall restrict or limit the
Purchaser’s general obligation at law to mitigate any loss or damage which it
may suffer as a result of a matter giving rise to a Claim.

       

      
        	
                6.

              	
                CONDUCT OF
      CLAIMS

              

      

       

      If any member of
the Purchaser’s Group becomes aware of any claim or potential claim by a third
party which can reasonably be expected to result in a Claim (each, a Third Party Claim) the
following provisions below shall apply.  Nothing in this paragraph 6
shall prejudice the ability of the Purchaser to make any Claim against the
Seller nor affect any rights the Purchaser may have in relation to such
Claim.

       

      
        	
                6.1

              	
                No admission of
      liability

              

      

       

      The Purchaser shall
not make, and shall procure that no other member of the Purchaser’s Group shall
make, any admission of liability in respect of or compromise or settle the Third
Party Claim without the prior written consent of the Seller (not to be
unreasonably withheld or delayed).

       

      
        	
                6.2

              	
                Access

              

      

       

      The Purchaser shall
provide, and shall procure that all other members of the Purchaser’s Group
provide, on reasonable written request, the Seller and the Seller’s professional
advisers with reasonable access to premises, personnel and to all relevant
assets, documents, records and information of the relevant Group Company within
the power, possession or control of any member of the Purchaser’s Group
for

       

      
        
          
          

        

        
          110

          
            

          

        

        
          
          

        

      

       

      the purpose of
investigating the Third Party Claim and/or enabling the Seller to take such
action as is referred to in paragraph 6.5 (subject, at all times, to the Seller
giving appropriate confidentiality undertakings).

       

      
        	
                6.3

              	
                Preservation of
      records

              

      

       

      The Purchaser
shall, and shall procure that all other members of the Purchaser’s Group, use
all reasonable efforts to retain and preserve all relevant assets, documents,
records and information of the relevant Group Company within the power,
possession or control of the Purchaser’s Group of, or relating to a Group
Company which are relevant in connection with any Claim for so long as any
actual or prospective Claim remains outstanding.

       

      
        	
                6.4

              	
                Copies

              

      

       

      The Seller shall at
its own cost be entitled to copies of any of the documents, records and
information, and to photograph any premises or assets, referred to in paragraph
6.2 subject to appropriate confidentiality undertakings (including rights of
return and/or destruction satisfactory to the Purchaser) and solely for the
purposes of this paragraph 6.

       

      
        	
                6.5

              	
                Proceedings

              

      

       

      Subject to
paragraph 6.6 and to the Seller indemnifying the Purchaser and each other member
of the Purchaser’s Group for all reasonable costs, charges and expenses properly
incurred as a result of any action taken by the Seller pursuant to this
paragraph, the Purchaser shall, and shall procure that each member of the
Purchaser’s Group shall:

       

      
        	
                 
      

              	
                6.5.1

              	
                take such
      action and give such information and assistance, as the Seller may
      reasonably request to dispute, resist, appeal, compromise, defend, remedy
      or mitigate the Third Party Claim or to enforce against any person (other
      than the Seller) the rights of any member of the Purchaser’s Group in
      relation to the Third Party Claim;
and

              

      

       

      
        	
                 
      

              	
                6.5.2

              	
                in connection
      with any proceedings related to the Third Party Claim (other than against
      the Seller), use professional advisers nominated by the Seller with the
      Purchaser’s consent (such consent not to be unreasonably withheld or
      delayed) and, if the Seller so requests, permit the Seller to have
      exclusive conduct of the negotiations and/or
  proceedings.

              

      

       

      The Seller shall
provide regular updates and information to the Purchaser on the conduct and
progress of such Third Party Claim and respond to all reasonable requests from
the Purchaser for such information.

       

      
        
          
          

        

        
          111

          
            

          

        

        
          
          

        

      

       

      
        	
                6.6

              	
                Restrictions on
      Conduct

              

      

       

      The Seiler shall
not be entitled to assume conduct of a Third Party Claim and may be required by
the Purchaser to relinquish control of any such Third Party
Claim:

       

      
        	
                 
      

              	
                6.6.1

              	
                if in the
      reasonable opinion of the Purchaser, the exercise of any conduct rights by
      the Seller would, either in principle or as a result of the manner in
      which the Seller is exercising those conduct rights, be reasonably likely
      to have a material adverse effect on the goodwill, reputation, Business or
      affairs of the Purchaser’s Group as a whole, or of any Group
      Company;

              

      

       

      
        	
                 
      

              	
                6.6.2

              	
                in the event
      of any Third Party Claim brought by, or on behalf of, one or more
      customers of the Group (a Customer Claim),
      provided that the Purchaser procures that each Group Company complies in
      all material respects with its usual complaints handling policies
      applicable to such Customer Claim and does not treat such Customer Claim
      differently because of the existence or likelihood of a
    Claim;

              

      

       

      
        	
                 
      

              	
                6.6.3

              	
                in the event
      of a Third Party Claim which might give rise to a criminal action or
      proceeding brought against any member of the Purchaser’s Group, or any of
      their directors, officers or employees or to a Third Party Claim for
      punitive damages; or

              

      

       

      
        	
                 
      

              	
                6.6.4

              	
                if the
      exercise of any conduct rights by the Seller would render any policy of
      insurance maintained by or available to the Purchaser or the Group void or
      voidable or entitle the relevant insurer to repudiate or rescind any such
      policy in part or whole or an insurer exercises a right to take over
      conduct of the Third Party Claim.

              

      

       

      
        	
                7.

              	
                RECOVERY
      FROM THIRD PARTIES

              

      

       

      
        	
                7.1

              	
                Purchaser’s
      obligations

              

      

       

      Where the Seller
has made a payment to the Purchaser in respect of a Claim, and a Group Company
or the Purchaser (or any other member of the Purchaser’s Group) either recovers
or is entitled to recover (whether by reason of insurance, payment, discount,
credit, relief or otherwise) from a third party any sum which is referable to a
fact, matter, event or circumstance giving rise to a Claim the Purchaser shall
(or, as appropriate, shall procure that each Group Company and each other member
of the Purchaser’s Group shall):

       

      
        	
                 
      

              	
                7.1.1

              	
                provide such
      information and assistance as the Seller may reasonably require relating
      to such right of recovery or such other relief, saving
  or

              

      

       

      
        
          
          

        

        
          112

          
            

          

        

        
          
          

        

      

       

      benefit and the
steps taken or to be taken by the Purchaser or (as the case may be) a Group
Company in connection with it;

       

      
        	
                 
      

              	
                7.1.2

              	
                keep the
      Seller reasonably informed of the progress of any action taken and provide
      it with copies of all relevant correspondence and
      documentation,

              

      

       

      and if the
Purchaser, a Group Company or other member of the Purchaser’s Group actually
recovers any amount, the Purchaser shall forthwith pay to the Seller an amount
equal to the amount that the Purchaser, such Group Company or other member of
the Purchaser’s Group has recovered (less any reasonable costs incurred in
recovering or obtaining such payment, saving or benefit and any tax actually
suffered on such amount) (the Benefit) to the extent that
the amount of the Benefit does not exceed the aggregate payments previously made
by the Seller in respect of all Claims.

       

      
        	
                7.2

              	
                Insurance of
      liability

              

      

       

      If at any time
after Completion the Seller wishes to insure all or any part of its liability in
respect of Claims or Tax Claims, the Purchaser shall provide such information as
any prospective insurer or broker may reasonably require before effecting such
insurance.

       

      
        
          
          

        

        
          113

          
            

          

        

        
          
          

        

      

       

      PART
10

      SHORT
PARTICULARS OF PROPERTY

       

      Forthstone

       

      
        	
                Address:

              	
                Forthstone,
      56 South Gyle Crescent, Edinburgh EH12 9LE (the Building) of which the
      Leased Subjects as defined in the Forthstone Sub-underlease (referred to
      in Part 11 of the Schedule) form
part

              

      

       

      
        	
                Tenure:

              	
                Sub-leasehold

              

      

       

      
        	
                Title
      Number:

              	
                Not
      applicable

              

      

       

      
        	
                Date of Lease relating to
      Building:

              	
                29 March and
      19 April 2001, and registered in the Books of Council and Session on 29
      May 2001

              

      

       

      
        	
                Parties to
      Lease:

              	
                (1) BriTel
      Fund Trustees Limited; (2) The Royal Bank of Scotland
  plc

              

      

       

      
        	
                Current
      Rent:

              	
                £830,584
      (exclusive of VAT and common
charges)

              

      

       

      
        	
                Sub-tenant:

              	
                The Royal
      Bank of Scotland plc

              

      

       

      
        	
                Lease
    Term:

              	
                19 February
      2001 – 12 March 2020, subject to the sub-tenant being entitled to
      terminate at 18 February 2016.

              

      

       

      
        
          
          

        

        
          114

          
            

          

        

        
          
          

        

      

       

      Redhill

       

      
        	
                Address:

              	
                Lombard House
      3 Princess Way Redhill RH1 1NP (Redhill)

              

      

       

      
        	
                Property:

              	
                Those parts
      of Redhill described as the Premises in the sublease defined in the
      Redhill Sub-underlease as the “Headlease” of which the Premises as defined
      in the Redhill Sub-underlease (referred to in Part 11 of this Schedule)
      form part.

              

      

       

      
        	
                Lease
    Term:

              	
                Lombard North
      Central plc has a contractual right to be granted a sublease of the
      Property in the form of the said “Headlease” (a copy of which has been
      provided to the Purchaser in the Disclosed Documents). Pending obtaining
      the superior landlord’s consent, the grant of such sublease has not yet
      been completed and Lombard North Central plc occupy the Property as
      licensee on the terms of the sublease as if such had been
      granted.

              

      

       

      
        
          
          

        

        
          115

          
            

          

        

        
          
          

        

      

       

      PART
11

      THE
PROPERTIES

       

       

      
        	
                1

              	
                DEFINITIONS AND
      INTERPRETATION

              

      

       

      
        	
                1.1

              	
                In this Part
      of this Schedule, unless the context otherwise requires, the following
      expressions shall have the following
meanings:

              

      

       

      Consent means any consent,
waiver, deed or document that is required from a Landlord or from any third
party to grant an Underlease of the relevant Property to the
Tenant;

       

      End Date means the date 18
months following the Completion Date;

       

      Entry Date means under the
Forthstone Sub-underlease the date which is the later of (a) 5 Business Days
after receipt of the relevant Consent and (b) Completion

       

      Expiry Date means the date 18
months following the Completion Date;

       

      Forthstone Property means the
premises to be demised by the Forthstone Sub-undedease;

       

      Forthstone Sub-underlease
means the sublease of the Forthstone Property to be entered into in accordance
with this Part 11 in the agreed form attached hereto;

       

      Landlord means, in relation to
a Property, the person who is then in right of the landlord’s interest of the
relevant Lease and is entitled to the freehold or leasehold reversion
immediately expectant upon the term granted by the relevant Lease and includes
(where required by the terms of the relevant Lease) the person or persons
entitled to the freehold and any other interest in reversion which is superior
to the interest of the lessor under the relevant Lease and means in relation to
the Redhill Property the person who will be the grantor to LNC of the underlease
defined in the Redhill Sub-underlease as the “Headlease”;

       

      Lease means the lease or
underlease or contractual arrangement under which the Seller or LNC (as the case
may be) holds each Property;

       

      LNC means Lombard North
Central Plc (registered company number 00337004) whose registered office is at 3
Princess Way, Redhill, RH1 1NP;

       

      Losses means all losses,
liabilities, damages, settlements, costs, fees and expenses;

       

      Property means the Forthstone
Property or the Redhill Property (as the case may be);

       

      Redhill Property means the
premises to be demised by the Redhill Sub-underlease;

       

       

      
        
          
          

        

        
          116

          
            

          

        

        
          
          

        

      

       

      Redhill Sub-underlease means
the sublease of the Redhill Property to be entered into in accordance with this
Part 11 in the agreed form attached hereto;

       

      Separation Works Consent means
in the case of the Forthstone Property consent from the Landlord to the works
referred to in paragraph 6 hereof to the extent required under the terms of the
Lease relating to Forthstone;

       

      Start Date means the
Completion Date;

       

      Tenant means, in respect of
each Property, Tesco Stores Limited;

       

      Underlease means in respect of
a Property, the Forthstone Sub-underlease or the Redhill Sub-underlease as
relevant.

       

      
        	
                1.2

              	
                The paragraph
      headings in this Schedule shall not affect its
    interpretation.

              

      

       

      
        	
                1.3

              	
                Unless the
      context otherwise requires:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                references in
      this Schedule to clauses shall be construed as references to clauses of
      the Agreement of which this Schedule is a part; and references to
      paragraphs shall be construed as references to paragraphs of this
      Schedule; and

              

      

       

      
        	
                 
      

              	
                (b)

              	
                references to
      transfer shall be
      construed so as to include assign, assignation or
    assignment.

              

      

       

      
        	
                2.

              	
                UNDERLEASE

              

      

       

      
        	
                2.1

              	
                The Seller
      shall grant or shall procure that LNC shall grant and the Purchaser shall
      procure that the Tenant shall accept each of the Underleases in accordance
      with the terms of this Part of this
Schedule.

              

      

       

      
        	
                2.2

              	
                A relevant
      Underlease shall not be completed (which in the case of the Forthstone
      Sub-underlease means signed by the parties) unless and until the grant of
      the relevant Consents required in relation to the relevant Property and
      (in the case of the Redhill Property) additionally the grant to LNC of the
      lease described in the Redhill Sub-underlease as the “Headlease” has been
      obtained.

              

      

       

      
        	
                2.3

              	
                In respect of
      a Property within 5 Business Days of the later of receipt of (a) the
      relevant Consent and (b) Completion, the terms of the relevant Underlease
      shall be completed by the addition of any relevant information (including
      in the Forthstone Sub-underlease the Entry Date and the Expiry Date and in
      the Redhill Sub-underlease the Start Date and the End Date) which still
      has to be inserted therein and an engrossment prepared by the
      Seller.

              

      

      
         

        
          
            
            

          

          
            117

            
              

            

          

          
            
            

          

        

      

       

      
        	
                2.4

              	
                In the case
      of the Forthstone Sub-underlease the Seller shall, within two weeks of the
      date referred to in paragraph 2.3, execute the said Underlease in a self
      evidencing manner and deliver the executed documents to the
      Tenant.

              

      

       

      
        	
                2.5

              	
                In the case
      of the Redhill Sub-underlease the Seller shall within two weeks of the
      date referred to in paragraph 2.3 deliver the counterpart thereof to the
      Tenant and shall procure that the original thereof is executed by LNC
      within two weeks thereafter.

              

      

       

      
        	
                2.6

              	
                The Purchaser
      shall procure that:

              

      

       

      
        	
                 
      

              	
                2.6.1

              	
                in the case
      of the Forthstone Sub-underlease within two weeks following receipt by the
      Tenant of an engrossed and duly executed Underlease from the Seller, the
      Tenant shall execute it in a self evidencing manner and deliver a copy of
      the executed Underlease to the
Seller;

              

      

       

      
        	
                 
      

              	
                2.6.2

              	
                in the case
      of Redhill Sub-underlease within two weeks following receipt by the Tenant
      of the engrossed counterpart the Tenant shall execute it and return it to
      the Seller in readiness for completion of the Redhill
      Sub-underlease;

              

      

       

      
        	
                 
      

              	
                2.6.3

              	
                within thirty
      days following completion (in the case of the Redhill Sub-underlease) or
      the last date of execution (in the case of the Forthstone Sub-underlease)
      of the said Underlease by the Tenant, the Tenant shall submit an
      appropriate Land Transaction Return to the Inland Revenue and pay any
      Stamp Duty Land Tax due in respect of the Underlease
      aforesaid;

              

      

       

      
        	
                 
      

              	
                2.6.4

              	
                within seven
      days following receipt, the Tenant delivers to the Seller a copy of the
      Revenue Certificate or a self-certificate (as appropriate) required in
      terms of Section 79 of the Finance Act 2003;
and

              

      

       

      
        	
                 
      

              	
                2.6.5

              	
                within eight
      weeks following the last date of execution of the Underlease in respect of
      any Property situated in Scotland, an application is made to register the
      said executed Underlease in the Books of Council and Session and that the
      Tenant delivers to the Purchaser’s solicitors two Extracts
      thereof.

              

      

       

      
        	
                2.7

              	
                Completion of
      the Redhill Sub-underlease shall take place within 3 Business Days after
      whichever is the later of (a) the Seller receiving both the original and
      counterpart thereof duly executed by LNC and the Tenant respectively and
      (b) the grant to LNC of the underlease defined in the Redhill
      Sub-underlease as the “Headlease”.

              

      

       

      
        	
                2.8

              	
                Until the
      termination of the licence granted in accordance with paragraph 5 of this
      Part 11 all provisions of the relevant Underlease shall, in so far as
      applicable be enforceable under this agreement as from the Entry Date,
      notwithstanding that the

              

      

       

      
        
          
          

        

        
          118

          
            

          

        

        
          
          

        

      

       

      said Underlease has
not been executed by the parties thereto including, without prejudice to the
generality of the foregoing, an obligation of the Purchaser to procure that the
Tenant pays to the Seller or (as relevant) LNC, as the Landlords thereunder, all
rent, interest and other monies detailed or specified in the relevant
underlease.

       

      
        	
                3.

              	
                FORM OF
      UNDERLEASE

              

      

       

      The Underlease to
the Tenant of each Property shall be in the relevant agreed form of
Underlease.

       

      
        	
                4.

              	
                OBTAINING THE
      CONSENTS

              

      

       

      
        	
                4.1

              	
                Subject to
      the Purchaser and the Tenant complying with paragraph 4.3 of this Part 11
      of the Schedule the Seller shall not later than ten Business Days after
      the date of this Agreement apply to the Landlords or other third parties
      (as appropriate) for the Consents and keep the Purchaser informed of the
      progress of each application PROVIDED THAT the Seller shall be under no
      obligation to apply for consent for assignment of the lease of the Redhill
      Property dated 23 July 1990 made between (1) The Norwich Union Life
      Insurance Society and (2) LNC nor to apply for consent for the grant to
      LNC of the Underlease defined in the Redhill Sub-underlease as the
      “Headlease.”

              

      

       

      
        	
                4.2

              	
                The Seller
      shall as soon as reasonably practicable following the date the parties reach
      agreement under paragraph 6.2 of this Part 11 apply to the Landlords for
      the Separation Works Consent and keep the Purchaser informed of the
      progress of the application.

              

      

       

      
        	
                4.3

              	
                The Seller
      shall use its reasonable endeavours and the Purchaser will use reasonable
      endeavours to assist the Seller to obtain the Consents and the Separation
      Works Consent including where reasonably required by the Landlord, by
      procuring that the Tenant provides suitable bank and trade references and
      other relevant financial information and statistics as may be reasonably
      required by the Landlords in terms of the
  Leases.

              

      

       

      
        	
                4.4

              	
                The Seller
      shall keep the Purchaser regularly appraised, in writing upon request, as
      to the progress which is being made in relation to the obtaining of the
      Consents and the Separation Works Consent and shall, forthwith on receipt,
      send the Purchaser a copy of all relative replies received from or on
      behalf of the said Landlords.

              

      

       

      
        	
                4.5

              	
                The Purchaser
      shall procure that the Tenant shall reimburse the Seller in respect of all
      costs, charges, expenses and liabilities properly payable to the Landlords
      in obtaining the Consents and the Separation Works Consent, irrespective
      as to whether the application(s) is/are
  successful.

              

      

       

      
        
          
          

        

        
          119

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                4.6

              	
                The
      obligations under paragraphs 4.1 to 4.4 inclusive in relation to a
      Property shall expire on the earlier of (a) the End Date and (b) the date
      on which the licence granted pursuant to paragraph 5 of Part 11
      terminates.

              

      

       

      
        	
                 
      

              	
                5.

              	
                OCCUPATION BY
      PURCHASER

              

      

       

      
        	
                 
      

              	
                5.1

              	
                If, in
      relation to any Property, the Consent of the Landlord has not been
      obtained, and the Underlease has therefore not been granted, by
      Completion, the Seller shall or shall procure that LNC (as the case may
      be) shall, with effect from Completion for the period referred to in
      paragraph 7.1 hereof permit the Tenant (together with any company with
      whom the Tenant would be entitled to share possession of the Property had
      the relevant Underlease been entered into (in which case such sharing of
      occupation shall only be permitted in accordance with
      the terms of the relevant Underlease)) to occupy the relevant Property as
      licensee upon the terms and conditions contained in the relevant
      Underlease (excluding clause 14 of the Forthstone Sub-underlease in
      relation to warrandice which shall not apply) and the Purchaser shall
      procure that the Tenant shall comply with all of its obligations in the
      relevant Underlease during the period of such occupation as if the
      Underlease had been granted including without prejudice to the generality
      of the foregoing, the obligation of the Purchaser to procure that the
      Tenant pays to the Seller or LNC (as relevant) licence fees equal to all
      rent, interest and other monies detailed or specified in the relevant
      Underlease which shall be payable by the Tenant for the duration of the
      licence as if such Underlease had been granted with effect from and with
      an entry date of Completion.

              

      

       

      
        	
                 
      

              	
                5.2

              	
                Such licence
      referred to in paragraph 5.1 shall be revocable by the Seller or LNC (as
      applicable) forthwith upon written notice to that effect served by the
      Seller upon the Purchaser if irritancy, forfeiture, interdict, ejection,
      damages or any other court or summary enforcement action by the Landlord
      on account of the Tenant’s occupation itself constituting a breach of
      covenant or condition in the Lease is threatened in writing and the Seller
      reasonably considers that the Landlord may take any enforcement action in
      respect of such breach and the breach complained of cannot reasonably be
      remedied other than by requiring the Tenant to vacate the relevant
      Property, in which event the Purchaser shall procure that the Tenant shall
      vacate and flit and remove from the relevant Property without process of
      law leaving the area formerly occupied by the Tenant vacant, void and redd
      and in such repair and condition as represents a full and due performance
      by the Tenant of the obligations incumbent on it in the terms of the
      relevant Underlease as well as having reinstated the relevant area to the
      state and layout which pertained as at Completion with any works carried
      out pursuant to paragraph 6 of this Part 11 of the Schedule
      removed

              

      

      
         

        
          
            
            

          

          
            120

            
              

            

          

          
            
            

          

        

      

       

      
        	 	and
      all damage caused being made good to the reasonable satisfaction of the
      Seller (provided always that the Tenant’s liability to reinstate the works
      carried out pursuant to paragraph 6 of this Part 11 of the Schedule shall
      not exceed £50,000 plus Value Added Tax) and in the event that the
      Purchaser fails to procure full compliance by the Tenant with this
      paragraph by the date occurring 7 Business Days following the date of such
      termination then the Purchaser shall be bound and obliged to free, relieve
      and indemnify the Seller upon demand in respect of all costs incurred by
      the Seller in effecting such works as are required to remedy such breach
      or breaches.
	 	 
	
                5.3

              	
                Whether or
      not the Tenant shall take occupation of any Property as licensee pursuant
      to paragraph 5.1, the Purchaser shall procure that the Tenant shall, with
      effect from Completion until the licence is revoked or the term of the
      licence is terminated or otherwise determined as contemplated by the
      Underlease, reimburse the Seller on demand all rents, service charges,
      insurance premiums and other sums which would have been payable by the
      Tenant under the Underlease in respect of the period from Completion up to
      the date of such revocation termination or determination had the
      Underlease been in full force and effect from Completion, and shall
      observe the tenant’s covenants and conditions contained in the Underlease
      from Completion and shall keep the Seller indemnified from and against all
      Losses arising on account of any breach non-observance or non-performance
      of them whether before, on or after
Completion.

              

      

       

      
        	
                5.4

              	
                The Seller
      shall pay (and shall procure that LNC pays) all rents, service charges,
      insurance premiums and other sums due to the Landlord under each Lease and
      shall keep the Purchaser and its Group Companies indemnified from and
      against all Losses arising on account of any non payment by the Seller
      (except so far as such breach is occasioned by a breach of the provisions
      of this Schedule by the Purchaser).

              

      

       

      
        	
                5.5

              	
                The Seller
      will not and shall procure that LNC will
not:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                effect or
      accept any variation or surrender or other termination of any of the
      Leases; nor

              

      

       

      
        	
                 
      

              	
                (b)

              	
                serve any
      notices upon the Landlord under them which is detrimental to the interests
      of the Tenant;

              

      

       

      without the prior
written consent of the Purchaser (such consent not to be unreasonably withheld
or delayed) and the Seller shall forthwith send a copy to the Purchaser of any
notice or other material communication received in connection with any of the
Leases.

       

      
        
          
          

        

        
          121

          
            

          

        

        
          
          

        

      

       

      
        	
                6.

              	
                SEPARATION

              

      

       

      
        	
                6.1

              	
                Each of the
      Seller and the Purchaser acknowledges and agrees that in relation to the
      Forthstone Property:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                it may be
      required or desirable in order to comply with the requirements of any
      Regulatory Authority relevant to the Business or any other statutory
      requirement the Seller and/or the Purchaser (and/or their respective Group
      Companies) and/or to obtain a Consent to segregate the parts of the
      Forthstone Property occupied by the Purchaser and its Group Companies from
      those parts occupied by Seller and its Group Companies in terms of
      physical boundaries and security access (Separation);

              

      

       

      
        	
                 
      

              	
                (b)

              	
                as soon as
      reasonably possible following the date of this Agreement each of them
      shall (acting reasonably) seek to agree as to the nature of the works (if
      any) required to be undertaken to the Forthstone Property in order to
      achieve Separation, having regard to the most cost effective strategy in
      light of the parties’ reasonable operational and security concerns and the
      duration of the shared occupancy of the Forthstone Property;
      and

              

      

       

      
        	
                 
      

              	
                (c)

              	
                subject to
      the provisions of clause 19 (Confidentiality) of this
      Agreement, the Seller and Purchaser shall maintain in strictest confidence
      any Confidential Information obtained by either of them in connection with
      the space sharing arrangements contemplated by this Part 11 of this
      Schedule, and shall not use any such Confidential Information for their
      own benefit or disclose such Confidential Information to any other party
      whatsoever, save that the Seller or the Purchaser may, when required,
      disclose only the minimum amount of information required to the Landlord
      of the Lease relating to
Forthstone.

              

      

       

      
        	
                6.2

              	
                Following
      agreement between the Seller and the Purchaser as to the nature of any
      works to achieve Separation and the receipt of the Separation Works
      Consent, the Seller shall or shall cause such works to be carried out as
      soon as reasonably practicable, in each case causing the minimum
      disruption as reasonably practicable to both the business of the Seller’s
      Group and the business of the Purchaser’s Group, and the Purchaser shall
      pay to the Seller within 7 Business Days of demand 50% of the reasonable
      and properly incurred costs of such works (exclusive of value added tax
      which shall be payable in
addition).

              

      

       

      
        	
                7.

              	
                GENERAL

              

      

       

      
        	
                7.1

              	
                The licence
      constituted by this Part of this Schedule shall subsist in relation to a
      Property, unless earlier terminated pursuant to paragraph 5.1 hereof or
      pursuant to the provisions for irritancy or re-entry contained within the
      Underlease or pursuant to

              

      

       

      
        
          
          

        

        
          122

          
            

          

        

        
          
          

      

       

      
        	 	the exercise of a break right
      contained within an Underlease (which shall be exercisable to terminate
      the licence in the terms of the relevant Underlease as if such Underlease
      had been granted) until the earlier of (a) the completion date of the
      Underlease (which means in the case of the Forthstone Sub-Underlease the
      last date of signing thereof) of the relevant Property and (b) the End
      Date
	 	 
	
                7.2

              	
                The whole
      provisions, obligations and rights granted and reserved in the Underlease
      (excluding Clause 14 of the Forthstone Sub-underlease (warrandice) which
      shall not apply), save where expressly contrary to the provisions of this
      Part of this Schedule shall apply mutatis mutandis as the terms upon which
      the Seller or LNC (as the case may be) permits the Tenant to occupy the
      Property.

              

      

       

      
        	
                7.3

              	
                The
      arrangements agreed and set out in paragraphs 5, 7.1 and 7.2 of this Part
      11 of this Schedule are not intended by the Seller or the Purchaser to
      create any greater legal relationship or interest than a licence to occupy
      which is personal to the Purchaser and the Tenant and
      extends only to allowing sharing of occupation to the extent permitted in
      terms of the Underlease and notwithstanding any provision hereof or of the
      Undedease apparently to the contrary during the period of the said licence
      no relationship of landlord and tenant is created and neither the
      Purchaser, nor the Tenant nor any Group Company of theirs shall have
      exclusive occupation of the Property or part thereof but will share the
      same with the Seller.

              

      

       

      
        7.4

      

       

      
        	
                 
      

              	
                7.4.1

              	
                Without
      prejudice to the generality of the foregoing provisions, the Purchaser
      shall indemnify the Seller in respect of any Losses arising from the use
      and occupation of the Forthstone Property by the Tenant under and in terms
      of the licence hereby created up to a maximum of half of the full amount
      of such Losses or other, provided always that the Seller shall use
      reasonable endeavours to mitigate any such
  Losses

              

      

       

      
        	
                 
      

              	
                7.4.2

              	
                Nothing in
      clause 7.4.1 shall override any specific allocation of liability between
      the parties hereto in this Part 11 nor shall it limit any liability of the
      Seller under the provisions of Clause 10 (Warranties) of this
      Agreement.

              

      

       

      
        	
                7.5

              	
                In the event
      that the licence hereby created gives rise to any liability for Stamp Duty
      Land Tax then the Purchaser shall be responsible for complying with the
      requirements of HM Revenue & Customs and for timeously paying any
      Stamp Duly Land Tax payable in respect
thereof.

              

      

       

      
        	
                8.

              	
                CONSENT TO
      REGISTRATION

              

      

       

      As to the
Forthstone Property the parties hereto consent to registration hereof for
preservation.

       

      
        
          
          

        

        
          123

          
            

          

        

        
          
          

        

      

       

       

      9.         LANDLORD AND TENANT ACT
1954

       

      
        	
                9.1

              	
                The parties
      confirm that in respect of the Redhill
  Sub-underlease:

              

      

       

      
        	
                 
      

              	
                9.1.1

              	
                Before the
      date of this agreement LNC served on the Tenant notice relating to the
      tenancy to be created by the Redhill Sub-underlease pursuant to section
      38A(3)(a) of the Landlord and Tenant Act 1954 (1954
  Act)

              

      

       

      
        	
                 
      

              	
                9.1.2

              	
                A statutory
      declaration has been made by or on behalf of the Tenant in accordance with
      section 38A(3)(b) of the 1954 Act

              

      

       

      
        	
                 
      

              	
                9.1.3

              	
                The parties
      agree that sections 24 to 28 (inclusive) of the 1954 Act shall be excluded
      in respect of the tenancy to be created by the Redhill
      Sub-underlease

              

      

      

      
         

         

        
          
            
            

          

          
            124

            
              

            

          

          
            
            

          

        

         

      

      Draft: 26 July
2008

       

      PART
12

      TPF
COUNTERPARTIES

       

      
        	
                INCOME
      CONTRACTS

              	
                INTERNATIONAL
      CONTRACTS

              	
                TPF
      COMPARE CONTRACTS

              	
                OTHER
      CONTRACTS

              
	
                AXA PP
      Healthcare

              	
                Generali/Genertel

              	
                Churchill
      Insurance

              	
                G4S Service
      Agreement

              
	
                Direct Line
      Life Insurance Ltd

              	
                Hibernian
      General Insurance Ltd

              	
                Churchill
      Insurance Co/Lloyds TSB/Nationwide

              	
                Mastercard

              
	
                Travelex
      Agency Services Ltd

              	
                Lukas
      Bank

              	
                CIS General
      Insurance

              	 
    
	 
    	
                Ulster Bank
      Ireland Ltd

              	
                Devitt
      Insurance Services

              	 
    
	 
    	 
    	
                Direct Line
      Insurance Services

              	 
    
	 
    	 
    	
                EUI
      Limited

              	 
    
	 
    	 
    	
                Hastings
      Insurance Services Limited

              	 
    
	 
    	 
    	
                The OutRight
      Company Limited

              	 
    
	 
    	 
    	
                Royal and Sun
      Alliance

              	 
    
	 
    	 
    	
                Swinton

              	 
    
	 
    	 
    	
                UKI

              	 
    
	 
    	 
    	
                Zurich

              	 
    

 

      
        
          
          

        

        
           

          
            

          

        

        
          
          

        

         

      

      PART
13

      REPAYMENT
OF SELLER GROUP LOANS

       

       

      
        	
                1.

              	
                Relevant Market
      Valuation

              

      

       

      
        	
                1.1

              	
                The Relevant
      Market Valuation for each Seller Shareholder Loan shall be calculated by
      reference to the spread to LIBOR at Completion for the issue of such debt.
      This shall be achieved by identifying publicly traded comparable issues
      (in accordance with paragraph 1.2 below), and applying adjustments for
      known differentials as provided in paragraphs 1.3 and
  1.4.

              

      

       

      
        	
                1.2

              	
                For the
      purpose of establishing the LIBOR spread, the Seller shall use
      subordinated debt issued by the Seller (identifying a spread of comparable
      debt issues), for which the market price can be readily obtained by
      reference to the benchmark curve of an independent third party investment
      bank. LIBOR spreads shall be interpolated on a linear basis for the
      appropriate period.

              

      

       

      
        	
                1.3

              	
                The LIBOR
      spread calculated under paragraph 1.2 shall be adjusted as
      follows:

              

      

       

      
        	
                 
      

              	
                1.3.1

              	
                where the
      Seller 5 year Senior CDS level (Bloomberg ref – RBOS CDS EUR SNR 5Y) is
      greater than the Purchaser 5 year Senior CDS level (Bloomberg ref - TSCOLN
      CDS EUR SNR 5Y), an amount equal to 50% of the difference between the two
      shall be deducted from the LIBOR spread;
or

              

      

       

      
        	
                 
      

              	
                1.3.2

              	
                where the
      Purchaser 5 year Senior CDS level (Bloomberg ref - TSCOLN CDS EUR SNR 5Y)
      is greater than the Seller 5 year Senior CDS level (Bloomberg ref - RBOS
      CDS EUR SNR 5Y), an amount equal to 50% of the difference between the two
      shall be added to the LIBOR spread.

              

      

       

      The relevant 5 year
Senior CDS Levels shall be determined at noon on the last Business Day prior to
Completion.

       

      
        	
                1.4

              	
                Following
      calculation of the adjusted LIBOR spread under paragraph 1.3, the Seller
      shall calculate the clean market price at Completion using the market
      standard facility, Bloomberg screen BC13 valuation tool, which shall
      convert the spread to a clean market price which, together with the
      accruals, shall constitute the Relevant Market Valuation for the purposes
      of paragraph 1.1.

              

      

       

      
        
          
          

        

        
          126

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                2.

              	
                Trade
      Unwinds

              

      

       

      
        	
                 
      

              	
                2.1

              	
                The Unwind
      Amount for each Trade Unwind shall be the sum of the accrual and the fair
      value adjustment for each leg of the relevant Back to Back Trade (without
      reference to the principal amount).

              

      

       

      
        	
                 
      

              	
                2.2

              	
                The fair
      value adjustment shall be calculated using a curve within 1.5bp of the mid
      curve quoted on a broker’s page such
ICAP2.

              

      

       

      
        	
                 
      

              	
                2.3

              	
                The spread
      cost shall be split with 2/3rd
      payable by TPFL and 1/3rd
      payable by the Seller.

              

      

       

      
        	
                 
      

              	
                3.

              	
                Trade
      Transfers

              

      

       

      
        	
                 
      

              	
                3.1

              	
                The Seller
      shall not be entitled to charge for execution of the Trade Transfer but
      the Seiler will be entitled to add a credit margin of 1bp to represent the
      cost of credit of TPFL as a new counterparty (having taken into account
      the benefit of a Purchaser
guarantee).

              

      

       

      
        
          
          

        

        
          127

          
            

          

        

        
          
          

        

      

       

      PART
14

      HANCO
SERVICES

       

       

      
        	
                1.

              	
                DEFINITIONS AND
      INTERPRETATION

              

      

       

      In
this Part of this Schedule, unless the context otherwise requires, the following
expressions shall have the following meanings:

       

      Applicable Law has the meaning
given to it in the ATM CSA.

       

      Change Control Procedure means
the procedure set out in Schedule 4 (Change
Control) of the ATM CSA.

       

      CIT Contract means any
contract entered into between any member of the Purchaser’s Group and a CIT
Provider for the provision of any cash in transit services to TPFL in relation
to the TPF ATMs.

       

      CIT Provider means G4S Cash
Services (UK) Limited and any successor provider to TPFL.

       

      Commencement Date means the
Completion Date.

       

      Hanco ATMs means
the TPF ATMs situated, or to be situated, at “One Stop Shop” locations and which
are to be managed by Hanco.

       

      Hanco Services means the
services to be provided by Hanco to TPFL as set out in this Part 14 of the
Schedule.

       

      Interchange Fee Income has the
meaning given to it in the ATM CSA.

       

      Mandatory Changes means
changes to this Agreement and Hanco Services required to comply with Applicable
Law.

       

      Parties has the meaning given
to it in the ATM CSA.

       

      Seller Group Policies means
the policies of the Seller’s Group from time to time.

       

      Services means the services to
be provided by the Seller to TPFL other than the Hanco Services as defined in
Schedule 2 (Services)
of the ATM CSA and any other services provided by the Seller under the ATM
CSA.

       

      TPF ATMs has the meaning given
to it in the ATM CSA.

       

      
        	
                2.

              	
                INTRODUCTION

              

      

       

      This schedule defines the
operational roles and responsibilities of TPFL and the Seller in the provision
of ATM services in “One Stop” convenience stores owned by

       

      
        
          
          

        

        
          128

          
            

          

        

        
          
          

        

      

       

      Tesco Stores. The
Seller is procuring the provision of the Hanco Services specified in this
Schedule through its wholly-owned subsidiary, Hanco.

       

      
        	
                3.

              	
                TERM

              

      

       

      The Hanco Services
described in this Schedule shall be provided only until 31 July 2011, save to
the extent this Agreement is otherwise terminated in accordance with its
terms.

       

      
        	
                4.

              	
                CHARGING

              

      

       

      
        	
                4.1

              	
                The Hanco
      charges shall be the aggregate of:

              

      

       

      
        	
                 
      

              	
                4.1.1

              	
                capital cost
      of new machines, including installation
cost;

              

      

       

      
        	
                 
      

              	
                4.1.2

              	
                processing
      and call costs;

              

      

       

      
        	
                 
      

              	
                4.1.3

              	
                interest;

              

      

       

      
        	
                 
      

              	
                4.1.4

              	
                maintenance
      costs;

              

      

       

      
        	
                 
      

              	
                4.1.5

              	
                telephone
      line rental;

              

      

       

      
        	
                 
      

              	
                4.1.6

              	
                each of the costs referred to in
      paragraph 5.3 of this Part 14 of the Schedule;
  and

              

      

       

      
        	
                 
      

              	
                4.1.7

              	
                cash centre costs (cash handling
      costs)

                 

                (together,
      the Hanco
      Charges).

              

      

       

      
        	
                4.2

              	
                The Hanco
      Charges set out in paragraph 4.1 shall be calculated and payable by TPFL
      on a monthly basis.

              
	 	 
	      
                4.3

              	      
                Where the
      Interchange Fee Income for Hanco ATMs for a calendar month is greater than
      the Hanco Charges for the calendar month, the Seller shall deduct the
      Hanco Charges from the Interchange Fee Income for Hanco ATMs and pay the
      balance to TPFL in accordance with Clause 4.2 to the ATM
      CSA. 

              
	 	 
	      
                4.4

              	      
                Where the
      Interchange Fee Income for Hanco ATMs for a calendar month is less than
      the Hanco Charges, then the Seller shall provide TPFL with an invoice for
      the Hanco Charges that are in excess of the Interchange Fee Income. TPFL
      shall pay any such invoice in cleared funds to the Seller on or before the
      15th Day of the month following the month in which the relevant invoice is
      received.

              

      

       

      
        
          
          

        

        
          129

          
            

          

        

        
          
          

        

      

       

      
        	
                5.

              	
                CHARGING
      PRINCIPLES

              

      

       

      
        	
                5.1

              	
                In the event
      of a dispute in respect of the Hanco Charges pursuant to this Agreement,
      the Parties agree that the principles set out in this paragraph 5 shall be
      applied to the interpretation of relevant
  calculations.

              

      

       

      
        	
                5.2

              	
                The Hanco
      Services shall be provided and charged to TPFL at the actual cost incurred
      by the Seller in providing the Hanco Services (as calculated in accordance
      with the principles of paragraph
4.3).

              

      

       

      
        	
                5.3

              	
                The cost of
      providing a particular service shall be the aggregate
  of:

              

      

       

      
        	
                 
      

              	
                5.3.1

              	
                direct costs
      (including both fixed and variable costs) which can be wholly attributed
      to the supply of any service or product to TPFL under this Agreement and
      which include all irrecoverable VAT thereon and all staff costs (including
      all salaries, wages, expenses, National Insurance contributions,
      employer’s pension contributions, shift allowances, overtime pay,
      territorial allowances, sick pay, maternity pay, bonuses, profit sharing
      scheme entitlement, RBS Elect and any other benefits or benefits in kind
      given to the Seller’s Group’s employees in accordance with the Seller
      Group’s policies from time to time) (Staff Costs);
      and

              

      

       

      
        	
                 
      

              	
                5.3.2

              	
                in respect of
      services shared with any other member of the Seller’s Group and/or a third
      party, a proportion of the total cost (including both fixed and variable
      costs) which can be attributed to the service being provided based on the
      activity/usage level of TPFL (and other members of the Group) in relation
      to the total activity/usage level of the remainder of the Seller’s Group
      and any third parties, including all irrecoverable VAT thereon and all
      relevant Staff Costs); and

              

      

       

      
        	
                 
      

              	
                5.3.3

              	
                any
      exit-related costs reasonably incurred by the Seller in accordance with
      Clause 18.2 of the ATM CSA.

              

      

       

      
        	
                5.4

              	
                The
      provisions of this Schedule are without prejudice to any additional
      amounts which may become payable by TPFL to the Seller under and in
      accordance with this Agreement.

              

      

       

      
        
          
          

        

        
          130

          
            

          

        

        
          
          

        

      

       

      
        	
                6.

              	
                SUPPLY
      AGREEMENTS

              

      

       

      
        	
                6.1

              	
                The Seller
      shall bear all costs of, or incurred in connection
  with:

              

      

       

      
        	
                 
      

              	
                6.1.1

              	
                procuring any
      consents of the Seller’s Suppliers required to enable the Seller to
      provide, or TPFL to receive, a Hanco Service or part of a Hanco
      Service;

              

      

       

      
        	
                 
      

              	
                6.1.2

              	
                terminating,
      renewing or replacing any contracts or other arrangements with the
      Seller’s Suppliers; and

              

      

       

      
        	
                 
      

              	
                6.1.3

              	
                any charge
      increases under any contracts or other arrangements with the Seller’s
      Suppliers during the Term (whether as part of renewal negotiations or
      not),

              

      

       

      
        	
                 
      

              	
                and the
      Seller may not claim from TPFL or Tesco Stores any of the costs referred
      to in paragraphs 6.1.1, 6.1.2 or 6.1.3
above.

              

      

       

      
        	
                7.

              	
                OTHER
      CHARGES

              

      

       

      
        	
                7.1

              	
                The costs of
      all Changes as defined in and made in accordance with the Change Control
      Procedure shall be borne by TPFL and the Seller in accordance with
      Schedule 4 (Change
      Control) of the ATM CSA.

              

      

       

      
        	
                8.

              	
                HANCO
      SERVICES

              

      

       

      
        	
                8.1

              	
                Subject to
      paragraphs 8.1 and 8.3 below, the Seller shall
  perform:

              

      

       

      
        	
                 
      

              	
                8.1.1

              	
                the services,
      functions and responsibilities described in paragraph 8.4 of this Part 14
      of the Schedule (as amended from time in accordance with the Change
      Control Procedure); and

              

      

       

      
        	
                 
      

              	
                8.1.2

              	
                any ancillary
      or minor services, functions and responsibilities not specifically
      described in paragraph 8.4 of this Part 14 of the Schedule
      which:

              

      

       

      
        	
                 
      

              	
                8.1.3

              	
                are
      reasonably required for the proper performance of the services, functions
      and responsibilities described in paragraph 8.4 of this Part 14 of the
      Schedule;

              

      

       

      
        	
                 
      

              	
                8.1.4

              	
                were
      routinely provided by or on behalf of the Seller or its Affiliates under
      any agreement with Hanco in the twelve month period immediately preceding
      Completion; and

              

      

       

      
        	
                 
      

              	
                8.1.5

              	
                are not part
      of the roles, services, functions or responsibilities which were provided
      or undertaken by the Seller
employees

              

      

       

      
        
          
          

        

        
          131

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                seconded to
      TPFL in the twelve month period immediately preceding
      Completion,

              

      

       

      
        	
                 
      

              	
                (together
      the Operational
      Services).

              

      

       

      
        	
                8.2

              	
                Notwithstanding
      the provisions of paragraph 8.1 above, nothing in this Agreement shall
      oblige the Seller to provide or undertake any service, function or
      responsibility which the Seller did not routinely provide or undertake to
      TPFL in the twelve month period immediately preceding the Commencement
      Date of this Agreement.

              

      

       

      
        	
                8.3

              	
                Notwithstanding
      the provisions of paragraph 81 above, the Parties acknowledge and agree
      that, subject to any express obligation of the Seller under this Agreement
      to the contrary:

              

      

       

      
        	
                 
      

              	
                8.3.1

              	
                the Seller
      has the right to determine the manner in which it provides and/or the
      methods of delivery of the Hanco
Services;

              

      

       

      
        	
                 
      

              	
                8.3.2

              	
                the fact that
      the Seller provided the Hanco Services during the twelve month period
      immediately preceding the Commencement Date of this Agreement in a
      particular manner or by a particular method or otherwise (including
      operational models, levels of staffing and/or processes) shall
      not:

              

      

       

      
        	
                (a)  

              	
                operate to
      prescribe the manner or methods by which the Seller will undertake the
      Hanco Services; or

              

      

       

      
        	
                (b)  

              	
                limit or
      restrict in any way the Seller’s freedom to determine, alter or vary from
      time to time as it sees fit the manner in which or methods by which it
      provides the Hanco Services,

              

      

       

      including in each
case and without limitation operational models, levels of staffing and/or
processes, provided that any changes to that manner or those models, methods or
processes does not materially and adversely affect TPFL’s ability to receive the
Hanco Services or increase its costs of doing so.

       

      
        	
                8.4

              	
                The Seller
      shall provide the following services to
TPFL:

              

      

       

      
        	
                 
      

              	
                8.4.1

              	
                provide the
      ATM systems, settlement and payments infrastructures required for the
      provision of the Hanco Services;

              

      

       

      
        	
                 
      

              	
                8.4.2

              	
                provide a
      point of contact within Hanco to enable TPFL to engage directly with Hanco
      in respect of Hanco ATM service delivery
issues;

              

      

       

      
        
          
          

        

        
          132

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                8.4.3

              	
                for Hanco
      ATMs which are filled by a CIT
Provider:

              

      

       

      
        	
                (a)  

              	
                source and
      supply ATM fit cash for Hanco ATMs;

              

      

       

      
        	
                (b)  

              	
                take
      instruction from the CIT Provider on cash
  requirements;

              

      

       

      
        	
                (c)  

              	
                order cash
      from the Seller cash centres for collection by CIT
    Provider;

              

      

       

      
        	
                (d)  

              	
                monitor ATMs
      for cash outs;

              

      

       

      
        	
                (e)  

              	
                escalate
      appropriate performance issues for Hanco ATMs to the CIT Provider;
      and

              

      

       

      
        	
                (f)  

              	
                reconcile the
      Hanco ATMs and manage differences in line with Hanco policies to
      conclusion.

              

      

       

      
        	
                 
      

              	
                8.4.4

              	
                for Hanco
      ATMs which are merchant-filled:

              

      

       

      
        	
                (a)  

              	
                provide
      helpdesk support on a 24*7*365 basis;
and

              

      

       

      
        	
                (b)  

              	
                provide
      second line maintenance services for fault calls that can not be resolved
      by Tesco Stores via the helpdesk. If an engineer is required to visit
      site, the Service Target for a response shall be within 24
      hours.

              

      

       

      
        	
                 
      

              	
                8.4.5

              	
                for all Hanco
      ATMs:

              

      

       

      
        	
                (a)  

              	
                provide
      service reporting in accordance with paragraph 10 and access to Hanco
      MI;

              

      

       

      
        	
                (b)  

              	
                pay Tesco
      Stores in accordance with the
invoices;

              

      

       

      
        	
                (c)  

              	
                undertake IT
      systems enhancements for Mandatory Changes and manage relevant IT projects
      where required;

              

      

       

      
        	
                (d)  

              	
                provide use
      of a telecoms network; and

              

      

       

      
        	
                (e)  

              	
                provision of
      adequate training in relation to Hanco ATMs to Tesco Stores’
      staff.

              

      

       

      
        
          
          

        

        
          133

          
            

          

        

        
          
          

        

      

       

      
        	
                9.

              	
                ASSUMPTIONS, PRE-REQUISITES,
      DEPENDENCIES AND CONSTRAINTS RELATING TO THE PROVISION OF THE HANCO
      SERVICES BY THE SELLER

              

      

       

      
        	
                9.1

              	
                The following
      shall be pre-requisites to the provision by the Seller of the Hanco
      Services:

              

      

       

      
        	
                 
      

              	
                9.1.1

              	
                compliance by
      the CIT Provider with their obligations under the CIT Contract to the
      relevant standard or level of performance that enables Hanco to provide
      the Services;

              

      

       

      
        	
                 
      

              	
                9.1.2

              	
                where the
      Hanco ATM is a merchant-fill ATM, Tesco Stores will comply with agreed
      Hanco operational procedures;

              

      

       

      
        	
                 
      

              	
                9.1.3

              	
                provision of
      the ATM sites, power, phone line and physical
  security;

              

      

       

      
        	
                 
      

              	
                9.1.4

              	
                management
      and coordination by TPFL of the ATM installations programme in
      consultation with Hanco;

              

      

       

      
        	
                 
      

              	
                9.1.5

              	
                engagement by
      TPFL directly with Hanco in respect of Hanco ATM service delivery
      issues;

              

      

       

      
        	
                 
      

              	
                9.1.6

              	
                provision by
      Tesco Stores of cash for merchant fill ATMs;
and

              

      

       

      
        	
                 
      

              	
                9.1.7

              	
                management by
      TPF of the CIT Contract.

              

      

       

      
        	
                10.

              	
                MEETING
      SCHEDULE

              

      

       

      
        	
                10.1

              	
                Weekly
      conference calls to discuss performance and
  issues.

              

      

       

      
        	
                10.2
      

              	
                Quarterly One
      Stop Steering Group.

              

      

       

      
        	
                10.3

              	
                Bi-Annual
      TPFL /Hanco Executive Review.

              

      

       

      
        	
                11.

              	
                SERVICE
      DELIVERY REPORTS

              

      

       

      
        	
                Report

              	 	
                Detail

              	 	
                Produced
      by

              	 	
                Delivered
      to

              	 	
                Timescale

              
	
                ATM Running
      Costs

              	 	
                Monthly
      breakdown of all costs

              	 	
                Hanco
      Finance

              	 	
                TPF
      ATMs

              	 	
                Monthly

              
	
                ATM
      Income

              	 	
                Detail of ATM
      interchange and surcharge fees

              	 	
                Hanco
      Finance

              	 	
                TPF
      ATMs

              	 	
                Monthly

              

      

       

      
        
          
          

        

        
          134

          
            

          

        

        
          
          
 

      

      
        	
                Report

              	 	
                Details

              	 	
                Produced
      by

              	 	
                Delivered
      to

              	 	
                Timescale

              
	
                Transaction
      Volumes

              	 	
                Cash
      withdrawals, balance enquiries etc, broken down by ATM

              	 	
                Hanco

              	 	
                TPF
      ATMs

              	 	
                Weekly

              
	
                Availability
      CIT ATMs

              	 	
                Detail of all
      callouts, downtime, etc

              	 	
                G4S

              	 	
                Hanco &
      TPF ATMs

              	 	
                Weekly

              
	
                SLA
      Performance Report

              	 	
                Maintenance
      SLA report

              	 	
                Fujitsu
      Siemens

              	 	
                Hanco &
      TPF ATMs

              	 	
                Monthly

              

      

      

       

       

      
135

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]