Document:

Employment Agreement between MASSBANK and James L. Milinazzo

 Exhibit 10.3.23 
  
 EMPLOYMENT AGREEMENT 
  
 This Employment Agreement (“Agreement”) is made as of the 23rd day of March, 2005, by and between MASSBANK, a Massachusetts savings bank
with its main office in Reading, Massachusetts (the “Bank”), and James L. Milinazzo (the “Executive”). 
  
 WITNESSETH 
  
 WHEREAS, the Executive became an employee of the Bank as of March 1, 2005; and subject to the terms and conditions set forth herein. 
  
 NOW THEREFORE, in consideration of the mutual covenants and agreements
contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Bank and the Executive agree as follows: 
  
 1. Employment. The Bank agrees to employ the Executive and the Executive agrees to serve in the employ of the Bank on
the terms and conditions hereinafter set forth. 
  
 2.
Capacity. The Executive shall serve as an officer of the Bank in such capacity as the Board of Directors may from time to time determine. In such capacity the Executive shall, subject to the By-laws of the Bank and to the direction of its
President, Board of Directors and other appropriate officers, have responsibility for such functions and duties as he may be directed from time to time by the President or other appropriate officer of the Bank. 
  
 3. Term. Subject to the applicable provisions herein, the term of the
Executive’s employment hereunder shall be for one year from the date hereof; provided, however, that the term shall be extended automatically by an additional one day commencing on the first day following the date hereof and on each subsequent
day thereafter, unless either the Executive or the Bank gives written notice to the other of such party’s election not to extend the term of this Agreement. The last day of the term of the Executive’s employment hereunder, as so extended
from time to time, is herein sometimes referred to as the “Expiration Date.” 
  
 4. Compensation and Benefits. The regular compensation and benefits payable to the Executive under this Agreement shall be as follows: 
  
 (a) Salary. For all services rendered by the Executive under this Agreement, the Bank shall pay the Executive annual
salary equal to $123,600, subject to increase from time to time in the sole discretion of the Board of Directors upon the recommendation of the Compensation Committee or the Chief Executive Officer of the Bank. The Executive’s salary shall be
payable in periodic installments in accordance with the Bank’s usual practices for its executives. 
  
 (b) Regular Benefits. The Executive shall also be entitled to participate in those medical insurance plans, life insurance plans, disability income
plans, retirement plans, bonus incentive plans and other benefit plans from time to time in effect generally for executives of the Bank. Such participation shall be subject to (i) the terms of the applicable plan documents, (ii) generally applicable
policies of the Bank and (iii) the discretion of the Board of Directors of the Bank or any administrative or other committee provided for in or contemplated by such plan. 

 (c) Business Expenses. The Bank shall reimburse the Executive for all reasonable travel and other
business expenses incurred by him in the performance of his duties and responsibilities, subject to the Bank’s usual practices and policies in connection therewith and to such reasonable requirements with respect to substantiation and
documentation as may from time to time be specified by the Bank. 
  
 (d) Vacation. The Executive shall be entitled to vacation in accordance with the Bank’s usual practices for its executives. 
  
 5. Extent of Service. During his employment hereunder, the Executive shall devote his full business time, best efforts and business judgment, skill
and knowledge to the advancement of the interests of the Bank and to the discharge of his duties and responsibilities hereunder. The Executive shall comply at all times with all Bank policies. He shall not engage in any other business activity,
except as may be approved by the President of the Bank or its Board of Directors; provided, however, that nothing herein shall be construed as preventing the Executive from: 
  
 (a) Investing his assets in a manner not prohibited by Section 9 hereof, and in such form or manner as shall not require any
material services on his part in the operations or affairs of the companies or other entities in which such investments are made; 
  
 (b) Serving on the board of directors of any company, subject to the approval of the Chief Executive Officer of the Bank and the prohibitions set forth in
Section 9 and provided that he shall not be required to render any material services with respect to the operations or affairs of any such company; or 
  
 (c) Engaging in religious, charitable or other community or non-profit activities which do not impair his ability to fulfill his duties and
responsibilities under this Agreement. 
  
 6. Termination.
Notwithstanding the provisions of Section 3 hereof, the Executive’s employment hereunder may be terminated without any breach of this Agreement under the following circumstances: 
  
 (a) Death. In the event of the Executive’s death during the Executive’s employment hereunder, the
Executive’s employment shall terminate on the date of his death. 
  
 (b) Disability. In the event of the Executive’s “disability” during the Executive’s employment hereunder, the Executive’s employment may be terminated by the Bank. For purposes of this Agreement,
“disability” shall mean the Executive’s incapacity due to physical or mental illness which has caused the Executive to be absent from the full-time performance of his duties with the Bank for a period of six consecutive months if the
Bank shall have given the Executive a notice of termination and, within 30 days after such notice is given, the Executive shall not have returned to the full-time performance of his duties. 
  

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 (c) Termination by the Bank for Cause. The Executive’s employment hereunder may be terminated
for “cause” without further liability on the part of the Bank effective immediately upon a determination of the President or the Board of Directors that such “cause” exists. For purposes hereof, any one or more of the following
shall constitute “cause” for such termination: 
  
 (i) Dishonesty of the Executive with respect to the Bank or any affiliate thereof; 
  
 (ii) Commission by the Executive of a crime punishable as a felony; 
  
 (iii) Failure by the Executive to perform in a satisfactory manner a substantial portion of his duties and
responsibilities hereunder; or 
  
 (iv) Breach by
the Executive of any term of this Agreement, including without limitation Section 9 hereof. 
  
 (d) Termination by the Bank Without Cause. The Executive’s employment with the Bank may be terminated without cause at any time by the Bank. 
  
 (e) Termination by the Executive. The Executive’s employment with the Bank may be terminated by Executive at any
time, including for Good Reason following a Change in Control. For purposes of this Agreement, Good Reason shall mean the occurrence of any of the following events: 
  
 (i) A substantial adverse change, not consented to by the Executive, in the nature or scope of the
Executive’s title, responsibilities, authorities, powers, reporting relationship, functions or duties from the title, responsibilities, authorities, powers, reporting relationship, functions or duties exercised by the Executive immediately
prior to the Change in Control; or 
  
 (ii) A
reduction in the Executive’s annual base salary as in effect on the date hereof or as the same may be increased from time to time; or 
  
 (iii) The relocation of the Bank’s offices at which the Executive is principally employed immediately prior to the date of a Change
in Control to a location more than 25 miles from such offices, or the requirement by the Bank for the Executive to be based anywhere other than the Bank’s offices at such location, except for required travel on the Bank’s business to an
extent substantially consistent with the Executive’s business travel obligations immediately prior to the Change in Control; or 
  
 (iv) The failure by the Bank to pay to the Executive any portion of his compensation or to pay to the Executive any portion of an
installment of deferred compensation under any deferred compensation program of the Bank within 15 days of the date such compensation is due without prior written consent of the Executive; or 
  

 3 

 (v) Breach by the Bank of any provision of this Agreement, the SERP or any other
agreement that may exist from time to time between the Executive and the Bank that provides for the payment of any compensation or benefits to Executive; or 
  
 (vi) The failure by the Bank to obtain and deliver to the Executive an effective agreement from any successor to assume and agree to
perform this Agreement. 
  
 (f) Date of Termination.
“Date of Termination” shall mean: (A) if Executive’s employment is terminated by his death, the date of his death; (B) if Executive’s employment is terminated by reason of his disability, 30 days after the date on which a notice
of termination is given, (C) if Executive’s employment is terminated by the Bank without cause, 60 days after the date on which a notice of termination is given; and (D) if Executive’s employment is terminated for any other reason, the
date on which a notice of termination is given. 
  
 7.
Compensation Upon Termination. 
  
 (a) Termination Due
to Death. If Executive’s employment terminates by reason of his death, the Bank shall, within 90 days of death, pay in a lump sum cash payment to such person as Executive shall designate in a notice filed with the Bank or, if no such person
is designated, to Executive’s estate, Executive’s accrued and unpaid salary to the date of his death, plus his accrued and unpaid incentive compensation, if any. Upon the death of Executive, all unvested stock options granted to Executive
shall immediately vest and become fully exercisable, and Executive’s estate or other legal representatives shall have one year from the Date of Termination, to exercise all stock options granted to Executive. All other stock-based grants and
awards held by Executive shall vest upon the death of Executive. For a period of one year following the Date of Termination, the Bank shall pay such health insurance premiums as may be necessary to allow Executive’s spouse and dependents to
receive health insurance coverage substantially similar to coverage they received prior to the Date of Termination. In addition to the foregoing, any payments to which Executive’s spouse, beneficiaries, or estate may be entitled under any
employee benefit plan shall also be paid in accordance with the terms of such plan or arrangement. Such payments, in the aggregate, shall fully discharge the Bank’s obligations hereunder. 
  
 (b) Disability. In the event of termination pursuant to Section 6(b),
the Bank shall, within 90 days of the Date of Termination, pay to the Executive in a lump sum cash payment Executive’s accrued and unpaid salary to the Date of Termination, plus his accrued and unpaid incentive compensation, if any. In
addition, the Executive shall be entitled to the following benefits, subject to the Executive signing a general release of claims (other than claims for the right to receive the payments or benefits set forth in this Section 7(b)) in a form and
manner satisfactory to the Bank: 
  
 (i) The
Executive shall continue to receive his full salary under Section 4(a) of this Agreement until the earlier of his death, his becoming eligible for disability income under the Bank’s disability income plan or three years following the Date of
Termination; 
  

 4 

 (ii) For a period of three years following the Date of Termination, the Bank shall pay
such health insurance premiums as may be necessary to allow Executive and Executive’s spouse and dependents to receive health insurance coverage substantially similar to coverage they received immediately prior to the Date of Termination; and

  
 (iii) All unvested stock options granted to
Executive shall immediately vest and become exercisable, and the Executive or his legal representative shall have one year from the Date of Termination to exercise all stock options, subject to the provisions of Section 9(c). All other stock-based
grants and awards held by Executive shall immediately vest upon the Date of Termination. 
  
 (c) Termination by the Bank for Cause. In the event of termination pursuant to Section 6(c), the Bank shall, within 90 days of the Date of Termination, pay to the Executive in a lump sum cash payment
Executive’s accrued and unpaid salary to the Date of Termination. Thereafter, the Bank shall have no further obligation to Executive except as otherwise expressly provided under this Agreement, provided that any such termination shall not
adversely affect or alter Executive’s rights under any employee benefit plan of the Bank in which Executive, at the Date of Termination, has a vested interest, unless otherwise provided in such employee benefit plan or any agreement or other
instrument attendant thereto. In addition, all stock options held by Executive as of the Date of Termination shall immediately terminate and be of no further force and effect, and all other stock-based grants and awards shall be cancelled or
terminated in accordance with their terms. 
  
 (d) Termination
by the Bank Without Cause. In the event of termination pursuant to Section 6(d), the Bank shall, within 90 days of the Date of Termination, pay to the Executive in a lump sum cash payment Executive’s accrued and unpaid salary to the Date of
Termination, plus his accrued and unpaid incentive compensation, if any. In addition, the Executive shall be entitled to the following benefits, subject to the Executive signing a general release of claims (other than claims for the right to receive
the payments or benefits set forth in this Section 7(d)) in a form and manner satisfactory to the Bank: 
  
 (i) The Bank shall within 30 days following the Date of Termination pay Executive in a lump sum cash payment an amount equal to the
Executive’s current annual salary; 
  
 (ii)
Upon the Date of Termination, each unvested stock option and any other stock-based grants and awards held by Executive shall immediately vest and become exercisable by the Executive. Subject to the provisions of Section 9(c), each such stock option
may be exercised by Executive within 180 days after the Date of Termination; 
  
 (iii) In addition to any other benefits to which Executive may be entitled in accordance with the Bank’s then existing severance policies, the Bank shall, for a period of one year commencing on the Date of
Termination, pay such health insurance premiums as may be necessary to allow Executive and Executive’s spouse and dependents to continue to receive health insurance coverage substantially similar to coverage they received immediately prior to
the Date of Termination; and 
  

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 (iv) Except as expressly set forth in this Section 7(d) or required by applicable law,
the Executive shall not be entitled to any other payments or benefits from the Bank following his termination without cause. 
  
 Notwithstanding the foregoing, the terms of this Section 7(d) shall not apply to a termination with respect to which Executive is entitled to receive benefits pursuant to
Section 8(c). 
  
 (e) Termination by the Executive. In the
event of termination pursuant to Section 6(e), the Bank shall, within 90 days of the Date of Termination, pay to the Executive in a lump sum cash payment Executive’s accrued and unpaid salary to the Date of Termination. Thereafter, the Bank
shall have no further obligation to Executive except as otherwise expressly provided under this Agreement, provided that any such termination shall not adversely affect or alter Executive’s rights under any employee benefit plan of the Bank in
which Executive, at the Date of Termination, has a vested interest, unless otherwise provided in such employee benefit plan or any agreement or other instrument attendant thereto. In addition, subject to the provisions of Section 9(c), all vested
but unexercised stock options held by Executive as of the Date of Termination must be exercised by Executive within three months following the Date of Termination or by the end of the option term, if earlier. All other stock-based grants and awards
held by Executive shall vest or be canceled upon the Date of Termination in accordance with their terms. Notwithstanding the foregoing, the terms of this Section 7(e) shall not apply to a termination with respect to which Executive is entitled to
receive benefits pursuant to Section 8(c). 
  
 8. Certain
Change in Control Payments. 
  
 (a) Purpose. The
provisions of this Section 8 shall apply if the Date of Termination is within 24 months after the first event constituting a Change in Control. The provisions of this Section 8 shall terminate and be of no further force or effect beginning on the
second anniversary of a Change in Control. 
  
 (b) A
“Change in Control” shall be deemed to have occurred in any one of the following events: 
  
 (i) Any “person” (as such term is used in Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934 (the
“Act”)) becomes a “beneficial owner” (as such term is defined in Rule 13d-3 promulgated under the Act) (other than MASSBANK Corp. (“the Company”), any trustee or other fiduciary holding securities under an
employee benefit plan of the Company, or any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company), directly or indirectly, of securities of
the Company representing fifty percent (50%) or more of the combined voting power of the Company’s then outstanding securities; 
  
 (ii) Persons who, as of the date hereof, constituted the Company’s Board of Directors (the “Incumbent Board”) cease
for any 

  

 6 

 
reason, including without limitation as a result of a tender offer, proxy contest, merger or similar transaction, to constitute at least a majority of the
Board of Directors of the Company, provided that any person becoming a director of the Company subsequent to October 1, 2002 whose election was approved by at least a majority of the directors then comprising the Incumbent Board shall, for purposes
of this Agreement, be considered a member of the Incumbent Board; 
  
 (iii) The stockholders of the Company approve a merger or consolidation of the Company with any other corporation or other entity, other than (A) a merger or consolidation which would result in the voting securities
of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 60% of the combined voting power of the voting securities
of the Company or such surviving entity outstanding immediately after such merger or consolidation or (B) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no “person” (as
hereinabove defined) acquires more than 50% of the combined voting power of the Company’s then outstanding securities; or 
  
 (iv) The stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by
the Company of all or substantially all of the Company’s assets. 
  
 (c) Severance Payment. In the event within 24 months after a Change in Control the Executive’s employment is terminated by the Bank without cause (pursuant to Section 6(d)) or by the Executive for Good Reason (pursuant to
Section 6(e)), then in lieu of the benefits provided in Sections 7(d) and 7(e) above the Executive shall be entitled to the following benefits, subject to signing by Executive of a general release of claims (other than claims for the right to
receive the payments or benefits set forth in this Section 8) in a form and manner satisfactory to the Bank: 
  
 (i) The Bank shall pay to the Executive an amount equal to three times the “base amount” (as such term is defined in Section
280G(b)(3) of the Internal Revenue Code of 1986, as amended (the “Code”)) applicable to the Executive, payable in one lump-sum cash payment no later than 30 days following the Date of Termination (as such term is defined in Section
6(f)); and 
  
 (ii) All unvested stock options
and other stock based awards granted to Executive shall immediately vest and become exercisable by the Executive. Each such stock option, may be exercised by Executive within 180 days after the Date of Termination 
  
 (iii) In addition to any other benefits to which the
Executive may be entitled in accordance with the Bank’s then existing severance policies, the Bank shall, for a period of three years commencing on the Date of Terminations, pay such health insurance premiums as may be necessary to allow
Executive and Executive’s spouse and dependents to continue to receive health insurance coverage substantially similar to coverage they received immediately prior to the Date of Termination. 
  

 7 

 (d) Additional Limitation. 
  
 (i) Anything in this Agreement to the contrary notwithstanding, in the event that any compensation, payment
or distribution by the Bank to or for the benefit of Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (the “Severance Payments”), would be subject to the excise
tax imposed by Section 4999 of the Code the following provisions shall apply: 
  
 (A) If the Severance Payments, reduced by the sum of (1) the Excise Tax and (2) the total of the Federal, state, and local income and employment taxes payable by Executive on the amount of the Severance Payments which
are in excess of the Threshold Amount (as defined below), are greater than or equal to the Threshold Amount, Executive shall be entitled to the full benefits payable under this Agreement. 
  
 (B) If the Threshold Amount is less than (x) the Severance
Payments, but greater than (y) the Severance Payments reduced by the sum of (1) the Excise Tax and (2) the total of the Federal, state, and local income and employment taxes on the amount of the Severance Payments which are in excess of the
Threshold Amount, then the benefits payable under this Agreement shall be reduced (but not below zero) to the extent necessary so that the maximum Severance Payments shall not exceed the Threshold Amount. To the extent that there is more than one
method of reducing the payments to bring them within the Threshold Amount, Executive shall determine which method shall be followed; provided that if Executive fails to make such determination within 45 days after the Bank has sent Executive written
notice of the need for such reduction, the Bank may determine the amount of such reduction in its sole discretion. 
  
 For the purposes of this Paragraph 8(d)(iv), “Threshold Amount” shall mean three times Executive’s “base amount” within
the meaning of Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar ($1.00); and “Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, and any interest or penalties incurred
by Executive with respect to such excise tax. 
  
 (ii) The determination as to which of the alternative provisions of Paragraph 8(d)(iv)(A) shall apply to Executive shall be made by KPMG LLP or any other nationally recognized accounting firm selected by the Bank (the “Accounting
Firm”), which shall provide detailed supporting calculations both to the Bank and Executive within 15 business days of the Date of Termination, if applicable, or at such earlier time as is reasonably requested by the Bank or Executive. For
purposes of determining which of the alternative provisions of Paragraph 8(d)(iv)(A) shall apply, Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation applicable to individuals for the
calendar year in which the determination is to be made, and state and local income taxes at the highest marginal rates of individual taxation in the state and locality of Executive’s residence on the Date of Termination, net of the maximum
reduction in federal income taxes which could be obtained from deduction of such state and local taxes. Any determination by the Accounting Firm shall be binding upon the Bank and Executive. 
  

 8 

 (e) Fees and Expenses. The Bank shall pay to the Executive all reasonable legal and arbitration
fees and expenses incurred by Executive in successfully obtaining or enforcing any right or benefit provided in Section 8 of this Agreement. 
  
 9. Non-competition and Confidential Information. 
  
 (a) Non-competition. During the term of Executive’s employment with the Bank, and, if Executive’s employment with the Bank terminates for
any reason at least 90 days prior to a Change in Control, then during the period after such termination of employment equal to the longer of (x) one year following the Date of Termination, and (y) three years following the Date of Termination if the
Executive receives payments or benefits pursuant to Sections 7(b), 7(d) or 8(c) hereof, the Executive will not, directly or indirectly, whether as owner, partner, shareholder, consultant, agent, employee, co-venturer or otherwise, or through any
person, association or entity, become an employee of or a consultant to, become a Director of or acquire any ownership interest in, or carry on, operate, manage, control, or become involved in any manner with any bank (or any financial institution
that engages in consumer banking) that maintains or operates an office or branch in any city or town where the Bank maintains or operates an office or branch as of the Date of Termination, nor will Executive attempt to hire any employee of the Bank,
assist (but not including giving references) in such hiring by any other person, association or entity, encourage any such employee to terminate his or her relationship with the Bank, or solicit or encourage any customer of the Bank to terminate or
reduce its relationship with the Bank, or to conduct with any other person, association or entity any business or activity which such customer conducts or could conduct with the Bank, whether or not the Bank’s relationship with such customer
was originally established in whole or in part by the Executive; provided, however, that the foregoing shall not prohibit the Executive from owning up to two percent (2%) of the outstanding stock of a publicly traded company engaged in the banking
or financial services industry. 
  
 (b) Confidential
Information. The Executive will not at any time disclose to any other person, association or entity (except as required by applicable law or in connection with the performance of his duties and responsibilities hereunder), or use for his own
benefit or gain, any confidential information of the Bank obtained by him incident to his employment with the Bank. The term “confidential information” includes, without limitation, financial information, business plans, business
practices, customer lists, prospects and opportunities (such as lending relationships, trust relationships, financial product developments, or possible acquisitions or dispositions of businesses or facilities) which have been implemented, discussed
or considered by the Bank but does not include any information which has become part of the public domain by means other than the Executive’s non-observance of his obligations hereunder. 
  
 (c) Relief. The Executive agrees that the Bank shall be entitled to
injunctive relief for any breach by him of the covenants contained in Section 9(a) or 9(b). In addition, notwithstanding anything herein or in any option plan or agreement to the contrary, with respect to any stock option granted to the Executive by
the Bank on or after the date 

  

 9 

 
hereof (the “New Options”), upon any breach by Executive of the covenants contained in Section 9(a) then (i) all New Options shall immediately
terminate and be of no further force and effect, and (ii) with respect to any New Options that were exercised during the one year period immediately prior to such breach (A) to the extent Executive owns any shares that he received as a result of
such option exercise, then Executive shall sell to the Bank (and the Bank shall purchase from Executive) such shares for an aggregate purchase price equal to the lesser of (x) the aggregate exercise price paid by Executive for such shares, or (y)
the fair market value of such shares, and (B) to the extent Executive no longer owns any shares that he received as a result of such option exercise, the Executive shall pay to the Bank an amount of cash equal to the sum of (x) any gain realized
upon the exercise of such option, and (y) any gain realized upon the sale or transfer of such shares. 
  
 (d) Interpretation. In the event that any provision of this Section 9 shall be determined by any court of competent jurisdiction to be
unenforceable by reason of its being extended over too great a period of time, too large a geographic area, or too great a range of activities, it shall be interpreted to extend only over the maximum period of time, geographic area, or range of
activities as to which it may be enforceable. As used in this Section 9, the term “Bank” means the Bank and its affiliates. 
  
 10. Conflicting Agreements. The Executive hereby represents and warrants that the execution of this Agreement and the performance of his
obligations hereunder will not breach or be in conflict with any other agreement to which he is a party or is bound, and that he is not now subject to any covenants against competition or similar covenants which would affect the performance of his
obligations hereunder. 
  
 11. Withholding. All payments
made by the Bank under this Agreement shall be net of any tax or other amounts required to be withheld by the Bank under applicable law. 
  
 12. Arbitration of Disputes. Any controversy or claim arising out of or relating to this Agreement or the breach thereof shall be settled by
arbitration in accordance with the rules of the American Arbitration Association in the City of Boston. Such arbitration shall be conducted in the City of Boston in accordance with the rules of the American Arbitration Association. Judgment upon the
award rendered by the arbitrators may be entered in any court having jurisdiction thereof. 
  
 13. Assignment; Successors and Assigns, etc. Neither the Bank nor the Executive may make any assignment of this Agreement or any interest herein, by operation of law or otherwise, without the prior written
consent of the other party; provided, however, that the Bank may assign its rights under this Agreement without the consent of the Executive in the event the Bank shall hereafter effect a reorganization, consolidate with or merge into
any other party, or transfer all or substantially all of its properties or assets to any other party. 
  
 14. Waiver. No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party. The failure of any party
to require the performance of any term or obligation of this Agreement, or the waiver by any party of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent
breach. 
  

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 15. Enforceability. If any portion or provision of this Agreement shall to any extent be declared
illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as to which it is so declared illegal or unenforceable, shall not
be affected thereby, and each portion and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. The provisions of Sections 8(d), 8(e), 9 and 12 shall survive the termination of this Agreement. 

 
 16. Notices. Any notices, requests, demands and other
communications provided for by this Agreement shall be sufficient if in writing and delivered in person or sent by registered or certified mail, postage prepaid, to the Executive at the last address the Executive has filed in writing with the Bank
or, in the case of the Bank, at its main office, attention of the President. 
  
 17. Amendment. This Agreement may be amended or modified only by a written instrument signed by the Executive and by duly authorized representatives of the Bank. 
  
 18. Governing Law. This is a Massachusetts contract and shall be
construed under and be governed in all respects by the laws of the Commonwealth of Massachusetts. 
  
 [Remainder of Page Intentionally Left Blank] 
  

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 IN WITNESS WHEREOF, this Agreement has been executed as a sealed instrument by the Bank and the
Executive, as of the date first above written. 
  

			
	 MASSBANK

		
	 By:
	 	 /s/ Gerard H. Brandi

	 	 	 Gerard H. Brandi

	 Title:
	 	 President

		
	 	 	 /s/ James L. Milinazzo

	 	 	 James L. Milinazzo

  

 12Dillions Sale and Purchase Agreement

 Exhibit 4.2 
  

DILLONS 
 SALE AND PURCHASE AGREEMENT

  
 

 
  
 Adelaide House London Bridge London EC4R 9HA

 tel +44 (0)20 7760 1000 fax +44 (0)20 7760 1111 
  

					
	 DATED
	 	21 AUGUST	 	2004

  
 STATUSFLOAT LIMITED

  
 FORBUOYS LIMITED 
  
 TESCO PLC 
  
 AGREEMENT 
  
 for the sale and purchase of the 
 entire issued
share capital of 
  
 DILLONS STORES LIMITED 
  
 

 
  
 Adelaide House London Bridge London EC4R 9HA

 tel +44 (0)20 7760 1000 fax +44 (0)20 7760 1111 
  

 CONTENTS 
  

					
	1	  	 Definitions and interpretation
	  	2
	2	  	 Agreement for sale
	  	14
	3	  	 Consideration
	  	15
	4	  	 Net Assets Statement and adjustment to Consideration
	  	16
	5	  	 Completion
	  	16
	6	  	 Post-Completion undertakings
	  	20
	7	  	 Properties
	  	22
	8	  	 Warranties by the Seller and limitations on liability
	  	22
	9	  	 Warranties by the Buyer
	  	24
	10	  	 Competition
	  	25
	11	  	 Pensions
	  	26
	12	  	 Employment
	  	27
	13	  	 Restrictive agreement
	  	28
	14	  	 Guarantee
	  	30
	15	  	 Set-off
	  	31
	16	  	 Assignment
	  	32
	17	  	 Announcements
	  	32
	18	  	 Costs
	  	33
	19	  	 Payments free of withholding etc.
	  	33
	20	  	 Contracts (Rights of Third Parties) Act 1999
	  	33
	21	  	 Communications
	  	33
	22	  	 Invalidity
	  	35
	23	  	 Whole agreement
	  	35
	24	  	 Counterparts
	  	35
	25	  	 Proper law
	  	35

  

 1 

 Schedule 10 
 Property Conditions 
  

					
	DATED	  	 	  	2004

  
 PARTIES 
  

					
	1	  	Seller	  	STATUSFLOAT LIMITED (company no. 4661717) whose registered office is at Tesco House, Delamare Road, Cheshunt, Hertfordshire EN8 9SL
			
	2	  	Buyer	  	FORBUOYS LIMITED (company no. 298945) whose registered office is at TM House, Ashwells Road, Pilgrims Hatch, Brentwood, Essex CM15 9ST
			
	3	  	Guarantor	  	TESCO PLC (company no. 445790) whose registered office is at Tesco House, Delamare Road, Cheshunt, Hertfordshire EN8 9SL

  
 OPERATIVE PROVISIONS

  

	1	Definitions and interpretation 

  

	1.1	In this agreement, unless the contrary intention appears, the following definitions apply: 

  

			
	After-Assessed Employee Tax	  	as defined in clause 12.2;
		
	Agreed Form	  	a form agreed between the parties, a copy of which has been initialled for the purpose of identification by their respective solicitors;
		
	Apportioned Price	  	the price attributable to each of the Unassigned Properties set out in schedule 9;
		
	Assigned Properties	  	the Properties which have been assigned legally and beneficially to the Company by the Seller or any of its Associates set out in part 2 of schedule 5;
		
	Assignment(s)	  	the assignment of the relevant Property to the Company, which shall include the provisions set

  

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	 	  	out in paragraph 3 of part 1 of schedule 10;
		
	Associate	  	 (a)     (in relation to an individual):
  
 (i)      a relative,
that is the individual’s issue, spouse, brother, sister or parent; or
  
 (ii)     a company which is, or may be, directly or indirectly controlled (within the meaning given in
s840 ICTA) by the individual or a relative of that individual, or by two or more of them; and
  
 (b)     (in relation to a company) a Subsidiary Undertaking or Parent Undertaking of the Company, and
any other Subsidiary Undertaking of any Parent Undertaking of the Company;

		
	Bank Account	  	the bank account of the Company with HSBC Bank plc with account number 01321676 and sort code 40-17-13;
		
	Bank Account Balance	  	as defined in clause 5.8.4;
		
	Book Stock Records	  	the records of the Stock as at Completion;
		
	Business	  	the business of a newsagent retailing tobacco products, groceries, impulse purchases, news, phonecards, greetings cards, giftwrap and any other non-food items carried on by the Company from
the Properties;
		
	Business Day	  	a day on which the clearing banks in the City of London are open for business;

  

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	Business Hours	  	between the hours of 09:00 and 17:00 inclusive local time;
		
	Buyer’s Accountants	  	Ernst & Young LLP of 1 More London Place, London SE1 2AF;
		
	Buyer’s Solicitors	  	Clifford Chance LLP of 10 Upper Bank Street, London E14 5JJ;
		
	CA	  	Companies Act 1985 (as amended);
		
	CAA	  	Capital Allowances Act 2001;
		
	Call Option	  	the call option agreement described in schedule 9;
		
	Cash Proceeds	  	as defined in clause 5.8.4;
		
	Companies Acts	  	CA, the former Companies Acts (within the meaning of s735(1) CA) and the Companies Act 1989;
		
	Company	  	Dillons Stores Limited (company no. 3498958), brief details of which are set out in schedule 1;
		
	Company’s Auditors	  	PricewaterhouseCoopers LLP;
		
	Completion	  	completion of the sale and purchase of the Shares in accordance with clause 5;
		
	Confidential Information	  	means all information which is used in or otherwise relates to the Company’s business, customers or financial or other affairs including, without limitation, information relating
to:
		
	 	  	 (a)     the marketing of goods or services including, without limitation, customer

  

 4 

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	 	  	 names and lists and other details of customers, sales targets, sales statistics, market share statistics, prices, market research reports and surveys, and
advertising or other promotional materials; or

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

		
	 	  	but does not include information which is made public by, or with the consent of, the Buyer;
		
	Consent	  	the licence of the landlord and any superior landlord to the Assignment of an Unassigned Property;
		
	Consideration	  	the consideration payable for the Shares, as set out in clause 3.1;
		
	Contractor Managers	  	those individuals or companies who run news agencies at the Properties on a self-employed basis pursuant to the Self Employed Agreements, as set out in part 2 of schedule 7;
		
	Control	  	 means the power of a person to secure that the affairs of the body corporate are conducted in accordance with the wishes of that
person:
  
 (a)     by means of the holding of shares, or the possession of voting power, in or in relation to that or any other body corporate; or
  
 (b)     by virtue of any powers conferred by the constitutional or
corporate documents, or any other document, regulating that or any other body corporate,

  

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	 	  	and a “Change of Control” occurs if a person who controls, or persons who control, any company ceases to do so, or if another person acquires, or other persons acquire, control of
it;
		
	Covenants	  	the covenants on the part of the tenant in a lease of a Property and all other matters, interests or encumbrances affecting that Property howsoever arising;
		
	Data Room	  	the data room located at the offices of the Seller’s Solicitors at Adelaide House, London Bridge, London EC4R 9HA comprising the documents in relation to the Company and the list of
assets attached to the Disclosure Letter;
		
	Deferred Consideration	  	the portion of the Upfront Consideration payable in accordance with clauses 3.2.2 to 3.2.4;
		
	Disclosure Letter	  	the disclosure letter, of today’s date, from the Seller to the Buyer;
		
	Encumbrance	  	means a mortgage, charge, pledge, lien, option, restriction, right of first refusal, right of pre emption, third party right or interest, other encumbrance or security interest of any kind,
or another type of agreement or arrangement having similar effect;
		
	Environment	  	all or any of the following media: land (including, without limitation, any building structure or receptacle in on over or under it); water (including, without limitation, surface coastal and
ground waters); and air (including, without limitation, the atmosphere within any natural or man-made structure or receptacle above or below ground);

  

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	Excluded Leasehold Properties	  	the leasehold properties set out in part 4 of schedule 5;
		
	Excluded Stock	  	the stock at the Properties at Completion of the class, category or type set out in part 1 of schedule 6;
		
	Freehold Excluded Properties	  	the freehold properties in respect of which leases have been executed as at today’s date;
		
	FRS	  	a financial reporting standard issued or adopted by The Accounting Standards Board Limited;
		
	Group	  	in relation to any party, that party and any company which is a Parent Undertaking or Subsidiary Undertaking of that party for the time being or a Subsidiary Undertaking of a Parent
Undertaking of that party and any of them but, in relation to the Seller, shall exclude the Company;
		
	Hive-up Agreement	  	the agreement, in the Agreed Form, relating to the transfer of the Excluded Leasehold Properties;
		
	Hive-up Proceeds	  	the amount payable by T&S Stores Limited to the Company pursuant to the Hive-up Agreement less £12,465;
		
	ICTA	  	Income and Corporation Taxes Act 1988;
		
	Indemnified Costs	  	as defined in clause 11.2;
		
	Information Technology Systems	  	means any and all computer, telecommunications and network equipment used by the Company;
		
	Intellectual Property	  	 means:
  
 (a)     patents, trade marks, service marks, registered designs, applications and

  

 7 

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	 	  	 rights to apply for any of those rights, trade, business and company names, unregistered trade marks, copyrights, database
rights, rights in software and knowhow;
  
 (b)     rights under licences, consents, orders, statutes or otherwise in relation to a right in paragraph (a);
  
 (c)     rights of the same or similar effect or nature as or to those in paragraphs (a) and (b) which
now or in the future may subsist; and
  
 (d)     the right to sue for past infringements of any of the foregoing rights;

		
	Intellectual Property Rights	  	means all material Intellectual Property owned by the Company or which is material to the Business;
		
	Investigation	  	as defined in clause 10.1;
		
	ITEPA	  	Income Tax (Earnings and Pensions) Act 2003;
		
	Key Employee	  	any person who is employed or engaged by the Company in a managerial capacity (including, for the avoidance of doubt, store managers) and/or is in the possession of Confidential
Information;
		
	Last Accounts	  	the audited balance sheet as at the Last Accounts Date, and the audited profit and loss account for the period ending on the Last Accounts Date, including the directors’ report and
notes, as attached to the Disclosure Letter;
		
	Last Accounts Date	  	28 February 2004;
		
	Last Management Accounts	  	the management accounts of the Company which

  

 8 

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	 	  	formed the basis for the Last Accounts;
		
	Management Accounts	  	the unaudited profit and loss account of the Company in respect of the period starting on the day after the Last Accounts Date and ending 3 July 2004 and the unaudited balance sheet of the
Company as at 3 July 2004, as attached to the Disclosure Letter;
		
	Material Contract	  	as defined in paragraph 13.1 of part 7 of schedule 2;
		
	Net Assets	  	the value of the assets less liabilities of the Company as set out in the Net Assets Statement;
		
	Net Assets Statement	  	the statement of net assets of the Company as at the date of Completion, prepared and agreed or determined in accordance with schedule 3;
		
	Parent Undertaking	  	a parent undertaking as defined in s258 CA;
		
	Past Tenant(s)	  	the legal owner of the Assigned Properties immediately before they were assigned to the Company;
		
	PAYE System	  	the system operated pursuant to Part II ITEPA (assessment, collection, recovery and appeals) and any regulations made pursuant to that part of ITEPA;
		
	Permit	  	a permit, licence, consent, approval, certificate, qualification, specification, registration or other authorisation;
		
	Post Offices	  	the post offices operated by the Company as noted in part 1 of schedule 5;
		
	Present Tenant(s)	  	the present legal owner of the Unassigned Properties;

  

 9 

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	Properties (or Property)	  	the Assigned Properties and Unassigned Properties as set out in part 1 of schedule 5 or (where applicable) any one of them;
		
	Proven Claim	  	a claim made by the Buyer against the Seller pursuant to this agreement which is resolved by a court or other tribunal in favour of the Buyer or agreed to in writing by the
Seller;
		
	Qualifying Intra-Group Transaction	  	a transaction between any members of the Buyer’s Group and which does not result in a reduction in the net assets of the Buyer of more than £8.3m;
		
	Relevant Claim	  	as defined in paragraph 2 of part 3 of schedule 7;
		
	Restricted Person	  	any person who or which has at any time during the period of 12 months immediately preceding Completion had dealings with the Business as a supplier;
		
	Sale	  	a Change of Control of the Company or its ultimate Parent Undertaking or the sale or disposal of the whole or a material part of the undertaking or assets or business of the Company other
than, in each case, pursuant to a Qualifying Intra-Group Transaction;
		
	Sample Stock	  	as defined in paragraph 1 of part 5 of schedule 3;
		
	Sample Stocktake	  	as defined in paragraph 1 of part 5 of schedule 3;
		
	Scheme	  	as defined in clause 11.2;
		
	Self Employed Agreements	  	the agreements with the Contractor Managers, a pro forma of which is set out in the Disclosure Letter;

  

 10 

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	Seller’s Accountants	  	PricewaterhouseCoopers LLP of Donington Court, Pegasus Business Park, Castle Donington, East Midlands DE74 2UZ;
		
	Seller’s Schemes	  	the retirement benefits schemes operated by the Seller or its Associates known as the “T&S Stores Senior Executives Pension Scheme”, and the “AXA Stakeholder
Scheme”;
		
	Seller’s Solicitors	  	Berwin Leighton Paisner of Adelaide House, London Bridge, London EC4R 9HA;
		
	Senior Executives	  	those members of Staff being in receipt of a salary of more than £35,000 per annum;
		
	Shares	  	20,000,000 issued ordinary shares of £1 each comprising the entire issued share capital of the Company as at Completion;
		
	SSAP	  	a statement of standard accounting practice adopted by The Accounting Standards Board Limited;
		
	Staff	  	those employees of the Company working within or providing services to the Business as set out in part 1 of schedule 7;
		
	Statutory Notices	  	notices of defective premises under s76 of the Building Act 1984;
		
	Stock	  	the stock in trade of the Business located at the Properties at Completion and which physically exists, is on profile, in date, not short-coded and is otherwise in saleable condition owned
by, or under the control of, the Seller, but does not include the Excluded Stock;
		
	Stock Payment	  	the amount payable for Stock, as determined in accordance with clause 3.4;

  

 11 

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	Stocktake Properties	  	those of the Properties set out in part 2 of schedule 6;
		
	Subsidiary Undertaking	  	a subsidiary undertaking as defined in s258 CA;
		
	Tax or Taxation	  	has the same meaning as in the Tax Deed;
		
	Tax Deed	  	the deed in the Agreed Form relating to Tax;
		
	Taxation Authority	  	has the same meaning as in the Tax Deed;
		
	TCGA	  	Taxation of Chargeable Gains Act 1992;
		
	TMA	  	Taxes Management Act 1970;
		
	Trade Creditors	  	 all amounts owing by the Company:
  
 (a)     for goods invoiced and received by the Company in respect of the Business prior to Completion
for which a cash payment has not been made up to and including Completion;
  
 (b)     for goods received by the Company in respect of the Business prior to Completion but not yet
invoiced; and
  
 (c)     the entire amount owed to Camelot and Paypoint as at Completion,
  
 but, for the avoidance of doubt, excluding the items set out under the headings “Creditors falling due within one year” and “Other Creditors including tax and social security” in part 3 of schedule
3;

		
	Transaction Documents	  	as defined in paragraph 1 of part 1 of schedule 2;
		
	TSA	  	the transitional services agreement between T&S

  

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	 	  	Stores Limited, the Buyer and the Company, in the Agreed Form, relating to the provision of specified services following Completion;
		
	UK GAAP	  	all statements of SAAP, FRS(s) and Urgent Issues Task Force Abstracts issued by the Accounting Standards Board;
		
	Unassigned Properties	  	the Properties which, at Completion, have not been legally assigned to the Company as set out in part 3 of schedule 5;
		
	Unbanked Cash	  	as defined in clause 6.1.3;
		
	Undisclosed Employee	  	as defined in clause 12.1;
		
	Upfront Consideration	  	the portion of the Consideration payable in accordance with clause 3.2;
		
	VAT	  	value added tax or any similar or substituted tax including, where relevant, the same or similar taxes in the Republic of Ireland, Isle of Man and the Channel Islands;
		
	VATA	  	Value Added Tax Act 1994; and
		
	Warranties	  	the warranties of the Seller set out in schedule 2.

  

	1.2	In this agreement, a reference to: 

  

	 	1.2.1	liability under, pursuant to or arising out of (or any analogous expression) any agreement, contract, deed or other instrument includes a reference to contingent liability under,
pursuant to or arising out of (or any analogous expression) that agreement, contract, deed or other instrument; and 

  

	 	1.2.2	 a “person” includes a reference to any individual, firm, company, corporation or other body corporate, government, state or agency of a state or any joint
venture, association or partnership, works council 

  

 13 

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or employee representative body (whether or not having separate legal personality). 

  

	1.3	Unless it is inconsistent with the context, in this agreement a reference to a statutory provision includes a reference to: 

  

	 	1.3.1	a statutory amendment, modification, consolidation or re-enactment (whether before or after the date of this agreement); 

  

	 	1.3.2	statutory instruments or subordinate legislation or orders made under the statutory provision; and 

  

	 	1.3.3	statutory provisions of which the statutory provision is an amendment, modification, consolidation or re-enactment, 

  
 but does not include a substituted provision. 
  

	1.4	Words denoting the singular include the plural and vice versa; words denoting one gender include all genders; words denoting persons include corporations and vice versa.

  

	1.5	Unless otherwise stated, a reference to a clause or schedule is a reference to a clause of or schedule to, this agreement and a reference to this agreement includes its schedules.

  

	1.6	Clause headings in this agreement and in the schedules are for ease of reference only and do not affect the construction of any provision. 

  

	1.7	In construing this agreement, the so-called ejusdem generis rule does not apply and, accordingly, the interpretation of general words shall not be restricted by words indicating a
particular class or particular examples. 

  

	1.8	All schedules that are attached to this agreement are incorporated into this agreement and shall be deemed to be part of this agreement. 

  

	2	Agreement for sale 

  

	2.1	Subject to the terms of this agreement, the Seller shall sell with full title guarantee and the Buyer shall purchase the Shares, with all rights attaching to them, with effect from
Completion free of any Encumbrance. 

  

	2.2	 The Seller waives all rights of pre-emption and other restrictions on transfer over the Shares conferred on it and shall procure that all such rights conferred on
any 

  

 14 

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other person are waived not later than Completion so as to permit the sale and purchase of the Shares. 

  

	3	Consideration 

  

	3.1	The consideration for the Shares shall be the amount of the Upfront Consideration, as adjusted upwards or downwards in accordance with clause 4, plus the Stock Payment plus the Cash
Proceeds plus the Unbanked Cash plus the Hive-up Proceeds. 

  

	3.2	Subject to clauses 3.3, 4 and 15.2, the Buyer shall pay the Upfront Consideration to the Seller as follows: 

  

	 	3.2.1	as to the sum of £1,952,950, in cash at Completion; 

  

	 	3.2.2	as to the sum of £1,952,950, in cash on the date which is six calendar months from Completion; 

  

	 	3.2.3	as to the sum of £1,952,950, in cash on the date which is 12 calendar months from Completion; and 

  

	 	3.2.4	as to the sum of £2,441,150, in cash on the date which is 18 calendar months from Completion, 

  
 provided that if any date on which payment is due is not a Business Day, then payment shall be made on the next Business
Day. 
  

	3.3	In the event of a Sale: 

  

	 	3.3.1	the Buyer shall promptly give notice of such Sale to the Seller; and 

  

	 	3.3.2	the Buyer shall pay any outstanding Deferred Consideration to the Seller within ten Business Days of such Sale. 

  

	3.4	Payment for the Stock shall be made by the Buyer to the Seller in accordance with part 5 of schedule 3. 

  

	3.5	Any payment by the Buyer to the Seller for the purposes of this agreement shall be paid by telegraphic transfer to the client account of the Seller’s Solicitors at Barclays
Bank Plc, 54 Lombard Street, London EC3P 3AH, sort code: 20-65-82, account number 50089753, Berwin Leighton Paisner client account ref: AEGR/T273/534. 

  

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	3.6	Any payment by the Seller to the Buyer for the purposes of this agreement shall be paid by telegraphic transfer to the account of the Buyer at National Westminster Bank Plc, sort
code 56-00-27, account number 27553507. 

  

	4	Net Assets Statement and adjustment to Consideration 

  

	4.1	The Net Assets Statement shall be prepared and agreed or determined in accordance with the principles and procedures set out in parts 1, 2 and 4 of schedule 3.

  

	4.2	The Net Assets Statement shall be in the format set out in part 3 of schedule 3. 

  

	4.3	If the amount of the Net Assets as shown by the Net Assets Statement: 

  

	 	4.3.1	exceeds £6,231,895 by an amount which is more than £10,000, the Upfront Consideration shall be increased on a pound for pound basis by the whole of that amount over
£6,231,895 and clause 4.4 shall apply; or 

  

	 	4.3.2	is less than £6,231,895 by an amount which is more than £10,000, the Upfront Consideration shall be reduced on a pound for pound basis for the whole of that amount under
£6,231,895 and clause 4.5 shall apply. 

  

	4.4	If the Upfront Consideration is increased in accordance with clause 4.3.1, the Buyer shall pay to the Seller the amount of such increase in cash within three Business Days of
agreement or determination of the Net Assets Statement. 

  

	4.5	If the Upfront Consideration is reduced in accordance with clause 4.3.2, the Seller shall pay to the Buyer the amount of such reduction in cash within three Business Days of
agreement or determination of the Net Assets Statement. 

  

	4.6	If payment in full in accordance with clause 4.4 or 4.5 (as the case may be) is not made within the requisite time limit, the outstanding balance shall bear interest, from the date
of agreement or determination of the Net Assets, at a rate equal to two per cent. over the base rate of Barclays Bank plc from time to time. 

  

	5	Completion 

  

	5.1	Completion shall take place at the offices of the Seller’s Solicitors, or such other place as the parties may agree, immediately after the signing of this agreement, when the
transactions mentioned in clauses 5.2 to 5.8 shall take place. 

  

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	5.2	The Seller shall deliver or procure the delivery to the Buyer of the following: 

  

	 	5.2.1	a completed and signed transfer in respect of the Shares in favour of the Buyer, or its nominee(s) together with the share certificate(s) for the Shares; 

 

	 	5.2.2	as evidence of the authority of each person executing a document referred to in this schedule on the Seller’s behalf: 

  

	 	5.2.2.1	a copy of the minutes of a duly held meeting of the directors of the Seller (or a duly constituted committee thereof) authorising the execution by the Seller of the document and,
where such execution is authorised by a committee of the board of directors of the Seller, a copy of the minutes of a duly held meeting of the directors constituting such committee or the relevant extract thereof; or 

  

	 	5.2.2.2	a copy of the power of attorney conferring the authority, in each case certified to be true by a director or the secretary of the Seller or by the Seller’s Solicitors;

  

	 	5.2.3	the Tax Deed, duly executed by the Seller; 

  

	 	5.2.4	the resignations of Steven Murrells and Julia Penfold as directors, and Patrick Burrows as the secretary, of the Company, in the Agreed Form; 

  

	 	5.2.5	the resignation of the Company’s Auditors, in the Agreed Form; 

  

	 	5.2.6	a power of attorney, in the Agreed Form, executed by the Seller in favour of the Buyer or its nominee(s) empowering the Buyer to exercise the Seller’s rights as shareholder of
the Company pending the stamping and registration of the transfer referred to in clause 5.2.1; 

  

	 	5.2.7	the statutory books of the Company made up to the date of Completion and its certificate of incorporation and common seal; 

  

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	 	5.2.8	a copy of each bank mandate of the Company and copies of statements of each bank account of the Company made up to the Business Day immediately before the date of Completion;

  

	 	5.2.9	the title deeds of the Properties (save that the title deeds of the Unassigned Properties shall only be made available for inspection); 

  

	 	5.2.10	written confirmation from the Seller that there are no subsisting guarantees given by the Company in favour of the Seller or any of any of its Associates or by the Seller and its
Associates in respect of any obligations of the Company and that, after compliance with clauses 5.3 and 5.4, neither the Seller nor its Associates will be indebted to the Company and the Company will not be indebted to either the Seller or its
Associates; 

  

	 	5.2.11	a certified copy of the Hive-up Agreement duly executed by the Company and the Seller; 

  

	 	5.2.12	a duly executed deed of amendment which, with effect from Completion, terminates all indemnities given by the Company pursuant to the Call Option; 

  

	 	5.2.13	the accounting books and records of the Company; and 

  

	 	5.2.14	all confidentiality agreements or undertakings given to any member of the Seller’s Group by potential buyers of the Shares prior to their sale to the Buyer pursuant to this
agreement. 

  

	5.3	The Seller and the Guarantor shall repay or procure to be repaid all amounts owing at Completion to the Company from the directors of the Company and their Associates and from the
Seller and its Associates, whether due for payment or not. 

  

	5.4	The Seller shall procure that at Completion the Company shall repay all amounts owing by the Company to the directors of the Company and their Associates and to the Seller and its
Associates whether due for payment or not. 

  

	5.5	 With effect from Completion, the Seller and the Guarantor shall, to the extent each is lawfully permitted to do so, assign the benefit to the Buyer of all
confidentiality undertakings given to it by all potential buyers of the Shares prior to their sale to the Buyer pursuant to this agreement. The Seller will send a letter, in the Agreed Form, to the other parties to such agreements and undertakings
authorising the 

  

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Buyer to recover all information (as defined in such agreements or undertakings) or requesting certification of its destruction to the Buyer in each case in
accordance with the terms of such agreements and undertakings.  

  

	5.6	The Guarantor shall procure that T&S Stores Limited enters into, and the Seller shall procure that the Company enters into, the TSA. 

  

	5.7	A board meeting of the Company shall be held at which: 

  

	 	5.7.1	James Lancaster and Russell Cox are appointed additional directors; 

  

	 	5.7.2	the Buyer’s Accountants are appointed as auditors of the Company; 

  

	 	5.7.3	the transfer(s) referred to in clause 5.2.1 is (or are) approved (subject to stamping); 

  

	 	5.7.4	the registered office of the Company is changed from its current address to an address notified to it by the Buyer; 

  

	 	5.7.5	the accounting reference date of the Company is changed from its current date to a date notified to it by the Buyer; 

  

	 	5.7.6	all forms relating to the change of directors of the Company described in clauses 5.2.4 and 5.7.1 are to be filed; 

  

	 	5.7.7	the resignations referred to in clauses 5.2.4 and 5.2.5 are submitted and accepted; and 

  

	 	5.7.8	each existing mandate given by the Company for the operation of its bank accounts is revoked and resolutions contained in new mandate(s) giving authority to persons nominated by the
Buyer are passed. 

  

	5.8	The Buyer shall: 

  

	 	5.8.1	pay or procure the payment of the portion of the Upfront Consideration due to the Seller on Completion pursuant to clause 3.2.1; 

  

	 	5.8.2	deliver to the Seller a counterpart of the Tax Deed and the TSA, each duly executed by the Buyer; 

  

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	 	5.8.3	as evidence of the authority of each person executing a document referred to in this schedule on the Buyer’s behalf: 

  

	 	5.8.3.1	a copy of the minutes of a duly held meeting of the directors of the Buyer (or a duly constituted committee thereof) authorising the execution by the Buyer of the document and,
where such execution is authorised by a committee of the board of directors of the Buyer, a copy of the minutes of a duly held meeting of the directors constituting such committee or the relevant extract thereof; or 

  

	 	5.8.3.2	a copy of the power of attorney conferring the authority; and 

  

	 	5.8.4	pay or procure the payment of a sum (the “Cash Proceeds”) equal to the balance standing to the credit of the Bank Account at the commencement of business on the date of
Completion (the “Bank Account Balance”) less £60,850. The Seller shall indemnify in full and keep fully indemnified the Buyer on demand against any and all losses, costs, liabilities, expenses, actions, proceedings, claims and
demands incurred or suffered by the Buyer or the Company as a result of any drawings which reduce the Bank Account Balance. 

  

	5.9	The Buyer may, in its absolute discretion, waive any requirement contained in clauses 5.2 to 5.7, or may waive any of those requirements on condition that the Seller gives, on
Completion, a written undertaking to the Buyer in such form and substance as the Buyer requires. 

  

	5.10	Neither party shall be obliged to complete this agreement unless: 

  

	 	5.10.1	the other party complies with all its obligations under this clause 5; and 

  

	 	5.10.2	the purchase of all the Shares is completed simultaneously. 

  

	6	Post-Completion undertakings 

  

	6.1	Following Completion: 

  

	 	6.1.1	 the Buyer undertakes to the Seller that it shall not, and it will procure that the Company shall not after Completion retrospectively alter the 

  

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 Property Conditions 
  

	 	 
accounting reference period of the Company commencing on 29 February 2004 to a date ending before Completion; 

  

	 	6.1.2	the Buyer undertakes to the Seller to register the transfer of the Shares in the Company’s share register within 30 days after Completion; and 

  

	 	6.1.3	the Buyer acknowledges that (and undertakes not to take any steps to prevent) the unbanked cash at the Properties at Completion (as evidenced by the physical cash at the Properties
the value of which is supported by the cash sheets at each of the Properties) less a prescribed amount in respect of the till floats at a value of £27,150 (and, for the avoidance of doubt, excluding the Bank Account Balance and any other cash
and any cash the subject of any bailment or other arrangement which precludes the Company from utilising such monies as a sole beneficial owner at Completion (including, for the avoidance of doubt, any rent deposits)) (the “Unbanked Cash”)
will be banked into an account of a member of the Seller’s Group on the Business Day immediately following Completion. 

  

	6.2	From Completion: 

  

	 	6.2.1	the Seller shall use its reasonable endeavours to assist the Buyer in obtaining the appointment of the Buyer or the Buyer’s nominee(s) to the posts of sub-postmaster at the
Post Offices; and 

  

	 	6.2.2	the Buyer shall apply for it or its nominee(s) to be appointed to the posts of sub-postmaster at the Post Offices and will use its best endeavours (which shall include the prompt
provision of such references, accounts and other information as may be required in connection therewith) to obtain such appointment without delay. 

  

	6.3	The parties shall each pay their own fees and charges in connection with the appointment of the Buyer or its nominee(s) under clause 6.2. 

  

	6.4	 All Trade Creditors as at Completion to the extent not taken into account in the Net Assets Statement shall remain the responsibility of the Seller after
Completion. The Seller shall indemnify in full and keep fully indemnified the Buyer on demand against all losses, costs, liabilities, expenses, actions, proceedings, claims and demands incurred or suffered by the Buyer or the Company (including,
without limitation, all legal expenses and other professional fees) arising out of or in 

  

 21 

 Schedule 10 
 Property Conditions 
  

	 	 
connection with the Trade Creditors as at Completion save to the extent that any such amount has been taken into account in the Net Assets Statement.

  

	6.5	The Seller undertakes to transfer an amount equal to the aggregate residential lettings deposits (as set out in the Net Assets Statement) to an account nominated by the Buyer within
ten Business Days of Completion. 

  

	6.6	The Seller shall indemnify in full and keep fully indemnified the Buyer on demand for and against all losses, costs, liabilities, expenses, actions, proceedings, claims and demands
incurred or suffered by the Buyer or the Company (including, without limitation, all legal expenses and other professional fees) arising out of or in connection with the entry into by the Company of the Hive-up Agreement and the assumption by the
Company of its obligations, and its performance of the transactions contemplated by, the Hive-up Agreement. 

  

	6.7	The Buyer agrees to pay to the Seller an amount equal to the Hive-Up Proceeds less £988, subject to receipt of the Hive-Up Proceeds from T&S Stores Limited, within two
Business Days of such amount being paid to the Company. 

  

	6.8	The Seller and the Guarantor shall procure that any member of the Seller’s Group, shall provide reasonable assistance to the Buyer within 30 days of Completion to enable the
Buyer access to the relevant accounting and financial information reasonably necessary to enable the Buyer to carry out a financial assistance whitewash in connection with this agreement. 

  

	6.9	It is acknowledged by the Seller that any costs in respect of the carrying out of the asbestos surveys referred to in paragraph 2.7.3 of part 1 of schedule 3 in excess of
£37,000 shall be borne by the Seller. 

  

	7	Properties 

  
 The provisions of schedule 10 shall apply to the Properties. 
  

	8	Warranties by the Seller and limitations on liability 

  

	8.1	The Seller warrants to the Buyer that the statements in schedule 2 comprising the Warranties are accurate and not misleading, and that the Warranties (save for the Warranties set
out in parts 1 and 2 of schedule 2) are given subject to any fact, matter, event or circumstance which has been fairly disclosed in the Disclosure Letter and specifically disclosed as set out in the Disclosure Letter. 

  

 22 

 Schedule 10 
 Property Conditions 
  

	8.2	A reference in schedule 2 to the Seller’s knowledge, information or belief is deemed to include knowledge, information and belief which the Seller would have if the Seller had
made all reasonable enquiries and, without limitation, includes the knowledge, information and belief of Patrick Burrows, Andrew King, Robert Plummer, Steven Murrels, Nadine Sankar, Galen Levi, Julia Penfold and Colin Holmes and, for the avoidance
of doubt, the Seller shall not be deemed to have any imputed knowledge other than as set out in this clause 8.3. 

  

	8.3	The rights and remedies of the Buyer in respect of a breach of the Warranties shall not be affected by Completion, or failing to exercise or delaying the exercise of a right or
remedy, or by anything else, except a specific authorised written waiver or release, and no single or partial exercise of a right or remedy shall preclude a further or other exercise. 

  

	8.4	Except in the case of fraud, none of the information supplied by the Company or its professional advisers to the Seller, or its agents, representatives or advisers, in connection
with the Warranties and the contents of the Disclosure Letter, or otherwise in relation to the business or affairs of the Company, shall be deemed a representation as to its accuracy by the Company to the Seller, and the Seller waives all claims
against the Company which it might otherwise have in respect of such information. 

  

	8.5	Each Warranty is to be construed independently and (except where this agreement provides otherwise) is not limited by a provision of this agreement or another Warranty.

  

	8.6	The provisions of schedule 4 apply in respect of the Warranties and other claims made by the Buyer against the Seller as set out in such schedule to limit the liability of the
Seller. 

  

	8.7	It is acknowledged by the parties that the Buyer: 

  

	 	8.7.1	is entering into this agreement in reliance upon the Warranties; 

  

	 	8.7.2	does not enter into this agreement on the basis of, and does not rely upon, any warranty or any representation or other provision made or agreed to by any person (whether a party to
this agreement or not) which is not set out in the Transaction Documents; and 

  

	 	8.7.3	 may rely on the Warranties to the extent and subject to the limitations set out in this agreement in warranting to any subsequent 

  

 23 

 Schedule 10 
 Property Conditions 
  

	 	 
Buyer of all or any of the Shares or of all or any part of the undertakings of the Company. 

  

	8.8	Except in the case of fraud, the Buyer shall, to the extent that there is a breach of the Warranties, be entitled to claim for breach of the Warranties only and shall not be
entitled to any other remedy. 

  

	8.9	The Seller shall indemnify in full and keep fully indemnified the Buyer on demand for and against all losses, costs, liabilities, expenses, actions, proceedings claims and demands
incurred or suffered by the Buyer or the Company (including without limitation all legal expenses and other professional fees) arising out of or in connection with the assumption and performance by the Company of its obligations or the granting by
the Company of any indemnities under the Call Option in respect of the period from 20 February 2003 until Completion. 

  

	9	Warranties by the Buyer 

  
 The Buyer warrants to the Seller that: 
  

	9.1	it is a company in good standing, duly incorporated and organised and validly existing under the laws of England and Wales; 

  

	9.2	it has the right, power and authority and has taken all action necessary and required to enter into and perform its obligations under this agreement and each document to be executed
by it in connection with or as contemplated by this agreement at or before Completion; and 

  

	9.3	neither the entry into this agreement nor the implementation of the transactions contemplated by it will result in: 

  

	 	9.3.1	a violation or breach of any provision of the by-laws or equivalent constitutional documents of the Buyer; 

  

	 	9.3.2	a breach of, or give rise to a default under, any contract or other instrument to which the Buyer is a party or by which it is bound; or 

  

	 	9.3.3	a violation or breach of any applicable laws or regulations or of any order, decree or judgment of any court, governmental agency or regulatory authority applicable to the Buyer or
any of its assets. 

  

 24 

 Schedule 10 
 Property Conditions 
  

	10	Competition 

  

	10.1	The Seller and the Buyer shall use all reasonable efforts to co-operate with each other in connection with any investigation of the transaction contemplated by this agreement
carried out by the Office of Fair Trading (“OFT”) and/or the Competition Commission (“CC”) under the Enterprise Act 2002 (“EA”) (“Investigation”), which co-operation shall include: 

  

	 	10.1.1	the Seller co-operating with the Buyer to ensure that all information reasonably necessary for the making of any notifications or filings (including draft versions) made in respect
of this agreement (or responding to any requests for further information consequent upon) is: 

  

	 	10.1.1.1	supplied promptly; and 

  

	 	10.1.1.2	complete and accurate, 

  
 provided that the Seller shall not be required to provide the Buyer with any information that is of a commercially sensitive nature and that does not
relate to the Business; 
  

	 	10.1.2	each party notifying the other party, and providing copies, in a timely fashion, of any communications from the OFT or CC which are relevant to the Investigation unless such
notification is expressly prohibited by the OFT and/or CC or by law; 

  

	 	10.1.3	where reasonably requested by the other party and appropriate: 

  

	 	10.1.3.1	providing that party (or advisers nominated by that party) with draft copies of all submissions or communications to the OFT or the CC in relation to the Investigation at such time
as will allow that party a reasonable opportunity to provide comments on such submissions and communications before they are submitted or sent to the OFT or the CC unless such notification is expressly prohibited by the OFT and/or the CC or by law;

  

	 	10.1.3.2	taking into account any comments of that party as are reasonable; and 

  

 25 

 Schedule 10 
 Property Conditions 
  

	 	10.1.3.3	providing that party (or such nominated adviser) with copies of all such submissions and communications in the form submitted or sent provided that neither the Seller or the Buyer
shall be required to provide the other with copies of any element of such communications or submissions which contains information of a commercially sensitive nature and provided that such notification is not expressly prohibited by the OFT and/or
the CC or by law; and 

  

	 	10.1.4	where either party attends separate meetings with the OFT or the CC, it shall, within a reasonable period of time thereafter, inform the other party (or its nominated advisers) of
the substance and outcome of any such meeting unless such notification is prohibited by the OFT and/or the CC or by law or is of a commercially sensitive nature. 

  

	10.2	If the OFT or the CC makes a decision under section 73(2) or 41(2) of the EA respectively requiring the Buyer to dispose of any Unassigned Property that has not been legally
assigned to the Company at the date of the decision, then the provisions of paragraph 7 of part 2 of schedule 10 shall apply in relation to such Unassigned Property. 

  

	11	Pensions 

  

	11.1	The Seller undertakes to pay to the Buyer (by way of an adjustment to the Consideration) an amount equal to the Indemnified Costs (as defined in clause 11.2).

  

	11.2	For the purposes of clause 11.1, “Indemnified Costs” means all loss, liabilities and costs of the Buyer, any Associate of the Buyer or the Company arising out of or which
may arise out of the operation of section 75 of the Pensions Act 1995 in relation to the T&S Stores Senior Executives Pension Scheme (the “Scheme”) and any other liability to make any other payment to or in respect of the Scheme.

  

	11.3	The Seller shall procure that the trustees of the Scheme will augment the benefits for Mr Parsons so that he will be credited with pensionable service as if he had remained an
active member of the defined benefit section of the Scheme up until the end of December 2004. 

  

 26 

 Schedule 10 
 Property Conditions 
  

	12	Employment 

  

	12.1	If it is established within the two-year period after Completion that any person not listed in schedule 7 is employed by the Company (the “Undisclosed Employee”) pursuant
to the arrangements in place at Completion, the Company shall be entitled to terminate the Undisclosed Employee’s employment and, provided that it does so terminate as soon as reasonably practicable, the Buyer shall be indemnified by the Seller
in respect of each loss, liability and cost which the Buyer or the Company may sustain arising in connection with the termination of the Undisclosed Employee’s contract of employment. 

  

	12.2	The Seller shall indemnify the Buyer or the Company and keep it fully indemnified at all times against any assessments determination or demands levied or made by the Inland Revenue
and/or the Contributions Agency for any income tax and national insurance contributions payable by the Company for any period of employment of the Contractor Manager or Undisclosed Employee prior to Completion (the “After-Assessed Employee
Tax”) and any interest, charges or penalties arising in respect of such liability referable to the period prior to Completion, together with any loss, liability and cost incurred by the Company in contesting any claim where requested to do so
by the Seller pursuant to the provisions of part 3 of schedule 7. 

  

	12.3	The Seller shall indemnify the Company (or Buyer as appropriate) and keep it fully indemnified at all times against each loss, liability and cost which it may sustain as a result of
any claim by any member of Staff, Contractor Manager or Undisclosed Employee for any matter whatsoever (including but not limited to claims of discrimination and breach of contract) arising from any act or omission of the Company (or the Contractor
Managers, in the case of employees of the Contractor Managers) prior to Completion provided that: 

  

	 	12.3.1	this indemnity shall not apply in respect to any After-Assessed Employee Tax (which shall be dealt with in accordance with clause 12.2); and 

  

	 	12.3.2	where the claim relates to any act or omission of the Company which continues after Completion, the Seller shall only be liable for any loss liability and cost referable to the
period up to and including Completion. 

  

	12.4	 Following Completion, the Buyer shall not (and shall procure that each member of the Buyer’s Group shall not), directly or indirectly, without the written
consent of the 

  

 27 

 Schedule 10 
 Property Conditions 
  

	 	 
Seller, make any unsolicited disclosures or statements to any person (not being a Contractor Manager), firm, company, regulatory authority or government body
(not being a court or tribunal) which is intended to undermine the self-employed status of the Contractor Managers provided that nothing in this clause shall prevent the Buyer from complying with any legal obligation or from seeking advice from its
professional advisers. 

  

	13	Restrictive agreement 

  

	13.1	To assure to the Buyer the full benefit of the business and goodwill of the Company, the Seller and the Guarantor each undertakes to the Buyer, for itself and as agent and trustee
for the Company by way of further consideration for the obligations of the Buyer under this agreement, as a separate and independent agreement, that it will not and will procure that none of its Associates will, without the Buyer’s prior
written consent: 

  

	 	13.1.1	disclose to another person, or itself use for any purpose, and shall use all reasonable endeavours to prevent the publication or disclosure of, Confidential Information;

  

	 	13.1.2	for 12 months after Completion, in relation to a business which is the same as the Business, either on its own account or for another person, directly or indirectly solicit,
interfere with or endeavour to entice away from the Company any Restricted Person or Key Employee; or 

  

	 	13.1.3	for a period of two years after Completion, either alone or jointly with, through or as adviser to, or agent of, or manager for, any person, directly or indirectly carry on or be
engaged, concerned or interested in or assist a business which trades under the “One Stop” brand which competes, directly or indirectly, with the Business within a radius of one quarter of a mile of any Property provided that this
sub-clause 13.1.3 does not apply in respect of any properties or trading stores subsequently acquired by any member of the Seller’s Group which are acquired as a part of a wider transaction (for these purposes, “wider
transaction” means the acquisition of five or more properties or trading stores). 

  

 28 

 Schedule 10 
 Property Conditions 
  

	13.2	The Seller and the Guarantor each agrees that the covenants and undertakings contained in clause 13.1 are reasonable and are entered into for the purpose of protecting the goodwill
of the business of the Company. 

  

	13.3	Each undertaking contained in clause 13.1 shall be construed as a separate undertaking. If one or more of them is held to be against the public interest or unlawful or an
unreasonable restraint of trade, the remaining undertakings shall continue to bind the Seller and the Guarantor. 

  

	13.4	Nothing in this clause shall prevent the Seller or the Guarantor or any other member of the Seller’s Group from: 

  

	 	13.4.1	continuing to operate a business operated by the Seller or the Guarantor or any member of the Seller’s Group on the date of this agreement; or 

  

	 	13.4.2	complying with a legally enforceable obligation existing at Completion or with a rule of law or requirement of a regulatory authority. 

  

	13.5	Following Completion, the Buyer shall not, and shall procure that the Company and each member of the Buyer’s Group shall not: 

  

	 	13.5.1	use or carry on business under a name now used by the Seller or the Guarantor or any member of the Seller’s Group (excluding the Company) in any business or a similar name or
style of name or style which may indicate a connection with the Seller or the Guarantor or any member of the Seller’s Group (excluding, for the purposes of this clause, the right granted to the Seller under clause 13.7); or

  

	 	13.5.2	hold itself out as being connected with the Seller or the Guarantor or any member of the Seller’s Group (excluding the Company) (excluding, for the purposes of this clause, the
right granted to the Seller under clause 13.7). 

  

	13.6	Subject to clause 13.7, following Completion the Seller shall not, and the Seller and the Guarantor shall procure that none of their respective Associates shall, use or carry on
business under the name “Dillons”, “Mr News”, “Paper Shop”, “Paper Chain”, “Gibbs News” and “Gibbs” or a similar name or style of name or style which may indicate a connection with the
Business or the Company. 

  

 29 

 Schedule 10 
 Property Conditions 
  

	13.7	Clause 13.6 shall not apply to the Excluded Leasehold Properties for a period of 17 weeks from Completion during which period such properties shall be permitted to continue to trade
under the name “Dillons” provided that the Seller shall not and the Seller and the Guarantor shall procure that none of their respective Associates shall, do or omit to do anything which may damage any goodwill of the Business.

  

	14	Guarantee 

  

	14.1	The Guarantor irrevocably and unconditionally guarantees to the Buyer the due and punctual performance of each obligation of the Seller contained in this agreement (subject to the
limitations set out in this agreement). The Guarantor shall pay to the Buyer from time to time within five Business Days of demand any sum of money which the Seller is at any time required to pay to the Buyer under or pursuant to this agreement and
which has not been paid at the time the demand is made. The Guarantor’s obligations under this clause are primary obligations and not those of a mere surety. 

  

	14.2	The Guarantor irrevocably and unconditionally agrees to indemnify (and keep indemnified) the Buyer within five Business Days of demand against any loss, liability or cost incurred
by the Buyer as a result of any obligation of the Seller referred to in clause 14.1 being or becoming void, voidable or unenforceable as against the Seller for any reason whatsoever. The amount of the loss, liability or cost shall be equal to the
amount which the Buyer would otherwise have been entitled to recover from the Seller. 

  

	14.3	The Guarantor’s obligations under clauses 14.1 and 14.2 are continuing obligations and are not satisfied, discharged or affected by an intermediate payment or settlement of
account by, or a change in the constitution or control of, or merger or consolidation with any other person of, or the insolvency of, or bankruptcy, winding up or analogous proceedings relating to, the Seller. 

  

	14.4	The Guarantor’s liabilities under clauses 14.1 and 14.2 are not affected by an arrangement which the Buyer may make with the Seller or with another person which (but for clause
14.4) might operate to diminish or discharge the liability of or otherwise provide a defence to a surety. 

  

	14.5	Without affecting the generality of clause 14.4, the Buyer may at any time it thinks fit and without reference to the Guarantor and without prejudice to the Guarantor’s
obligations under this clause 14: 

  

	 	14.5.1	grant a time for payment or grant another indulgence or agree to an amendment, variation, waiver or release in respect of an obligation of the Seller under this agreement;

  

 30 

 Schedule 10 
 Property Conditions 
  

	 	14.5.2	give up, deal with, vary, exchange or abstain from perfecting or enforcing other securities or guarantees held by the Buyer; 

  

	 	14.5.3	discharge a party to other securities or guarantees held by the Buyer and realise all or any of those securities or guarantees; and 

  

	 	14.5.4	compound with, accept compositions from and make other arrangements with the Seller or a person or persons liable on other securities or guarantees held or to be held by the Buyer.

  

	14.6	So long as the Seller is under an actual or contingent obligation under this agreement the Guarantor shall not exercise a right which it may at any time have by reason of the
performance of its obligations under clauses 14.1 and 14.2 to be indemnified by the Seller, to claim a contribution from another surety of the Seller’s obligations or to take the benefit (wholly or partly and by way of subrogation or otherwise)
of any of the Seller’s rights under this agreement or of any other security taken by the Seller in connection with this agreement. 

  

	14.7	The Guarantor’s liabilities under clauses 14.1 and 14.2 are not affected by the avoidance of an assurance, security or payment or a release, settlement or discharge which is
given or made on the faith of an assurance, security or payment, in either case, under an enactment relating to bankruptcy or insolvency. 

  

	14.8	The Guarantor waives any right it may have of first requiring the Buyer (or any trustee or agent on its behalf) to proceed against or enforce any other rights or security or claim
payment from any person before claiming from the Seller’s Guarantor under this clause 14. This waiver applies irrespective of any law or any provision of this agreement to the contrary. 

  

	15	Set-off 

  

	15.1	Subject to clause 15.2, payments due to be made by the Buyer to the Seller or by the Seller to the Buyer (as the case may be) shall be made without withholding, counterclaim,
set-off or similar deduction. 

  

	15.2	 The Buyer shall be entitled, but not obliged, at any time or times without notice to the Seller to set off any liability of the Seller to the Buyer pursuant to a
Proven 

  

 31 

 Schedule 10 
 Property Conditions 
  

	 	 
Claim against any liability of the Buyer to the Seller to pay the outstanding Deferred Consideration. 

  

	16	Assignment 

  

	16.1	Subject to clause 16.2, neither party shall be entitled to assign the benefit of this agreement or any part of it to any other person. 

  

	16.2	Subject to the provisions of clause 3.3, notwithstanding any other provisions in this agreement or any of the other agreements entered into by the Seller and the Buyer under or in
connection with this agreement, the Buyer shall be entitled to assign the benefit of this agreement to a transferee of the Shares which is a member of the Buyer’s Group, provided that the Buyer shall procure that if such transferee ceases to be
a member of the Buyer’s Group, the benefit of this agreement is re-assigned back to it or (at the discretion of the Buyer) a member of its Group. 

  

	16.3	Subject to clause 16.2, the liability of the Seller shall cease if the Buyer assigns, or purports to assign, any of its rights under this agreement without the Seller’s prior
written consent or makes or purports to make a declaration of trust in respect of any of those rights. 

  

	17	Announcements 

  

	17.1	No announcement shall be made in relation to this agreement, except for the announcement in the Agreed Form or otherwise as specifically agreed between the parties, unless (and to
the extent only that) an announcement is required by law, by a rule of a listing authority or a stock exchange on which the securities of any member of the party’s Group are listed or traded or by a governmental authority to which any member of
the party’s Group is subject or submits, provided that, if practicable, the party making the announcement shall have first consulted on the content and timing and taken in to account the reasonable requirements of the other party.

  

	17.2	Except as required by law or any regulatory body or as expressly provided for in this agreement, the Seller and the Buyer shall keep confidential this agreement and its terms and
conditions and shall not disclose the same to any third party without the prior written consent of the other party (and, for the avoidance of doubt, this includes the Buyer keeping confidential the matter specifically disclosed against paragraph 17
of part 7 of schedule 2, as set out in the Disclosure Letter). 

  

 32 

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 Property Conditions 
  

	18	Costs 

  
 All expenses incurred by or on behalf of the parties, including, without limitation, the fees of agents, representatives, solicitors, accountants,
actuaries, brokers, financiers and introducers employed by any of them in connection with the negotiation, preparation or execution of this agreement, shall be borne by the party who incurred the liability. 
  

	19	Payments free of withholding etc. 

  

	19.1	All payments made by the Seller under this agreement and under the Tax Deed shall be made gross, free of any rights of counterclaim or set-off without deduction or withholding of
any kind other than any deduction or withholding required by law. 

  

	19.2	If the Seller makes a deduction or withholding required by law from a payment under the agreement or the Tax Deed, the sum due from the Seller shall be increased to the extent
necessary to ensure that, after the making of any deduction or withholding, the Buyer receives a sum equal to the sum it would have received had no deduction or withholding been made. 

  

	19.3	If a payment made by the Seller under the agreement or the Tax Deed will be or has been subject to Tax, the Seller shall pay to the Buyer the amount (after taking into account Tax
Payable in respect of the amount) that will ensure that the Buyer receives and retains a net sum equal to the sum it would have received had the payment not been subject to Tax. 

  

	20	Contracts (Rights of Third Parties) Act 1999 

  

	20.1	Unless the right of enforcement is expressly granted, it is not intended that a third party should have the right to enforce a provision of this agreement pursuant to the Contracts
(Rights of Third Parties) Act 1999. 

  

	20.2	The parties may vary this agreement without the consent of a third party to whom an express right to enforce any of its terms has been provided. 

  

	21	Communications 

  

	21.1	All communications between the parties with respect to this agreement shall: 

  

	 	21.1.1	 be delivered by hand, or sent by first-class prepaid post, to the address in Great Britain of the addressee as set out in this agreement 

  

 33 

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 Property Conditions 
  

	 	 
or to such other address as the addressee notifies for the purpose of this clause; or 

  

	 	21.1.2	be sent by fax to the fax number stated below or as notified for the purpose of this clause. 

  

	21.2	Communications shall be deemed to have been received as follows: 

  

	 	21.2.1	(if sent by post) two Business Days after posting; 

  

	 	21.2.2	(if delivered by hand) on the day of delivery, if delivered at least two hours before the close of Business Hours on a Business Day, and otherwise on the next Business Day; and

  

	 	21.2.3	(if sent by fax) at the time of transmission, if received at least two hours before the close of Business Hours on a Business Day, and otherwise on the next Business Day.

  

	21.3	The address and fax numbers of each party are: 

  

			
	Seller	  	 
		
	Address:	  	Tesco House, Delamare Road, Cheshunt, Hertfordshire EN8 9SL
		
	Fax:	  	01992 644809
		
	Marked for the attention of:	  	The Company Secretary (with a copy to Berwin Leighton Paisner (marked with the reference AEGR/T273/534))
		
	Buyer	  	 
		
	Address:	  	Forbuoys Limited
		
	 	  	 TM House, Ashwells Road, Pilgrims
 Hatch, Brentwood,
Essex CM15 9ST

		
	Fax:	  	01277 375 870
		
	Marked for the attention of:	  	 The Company Secretary (with a copy to
 Clifford Chance
for the attention of
 Simon Tinkler)

  

 34 

 Schedule 10 
 Property Conditions 
  

	22	Invalidity 

  
 If a term in or provision of this agreement is held to be illegal or unenforceable, in whole or in part, under an enactment or rule of law, it shall to
that extent be deemed not to form part of this agreement and the enforceability of the remainder of this agreement shall not be affected. 
  

	23	Whole agreement 

  
 This agreement and the documents referred to in this agreement contain the whole agreement between the parties relating to the transactions provided for
in this agreement and supersedes all previous agreements (if any) between such parties in respect of such matters and each of the parties acknowledges that in agreeing to enter into this agreement it has not relied upon any pre-contractual
statement, representation or opinion (whether oral or written and whether express or implied) made by the other(s) and/or any Associate of the other(s) or any of their respective officers, employees or advisers. 
  

	24	Counterparts 

  
 This agreement may be executed in any number of separate counterparts, each of which when executed and delivered shall be an original, but all the
counterparts shall together constitute one and the same instrument. 
  

	25	Proper law 

  
 The construction, validity and performance of this agreement are governed by the laws of England and Wales and the parties submit to the exclusive
jurisdiction of the English courts. 
  
 Delivered as a deed on
the date of this document. 
  

 35 

			
	 Executed as a deed by
	  	)
	STATUSFLOAT LIMITED	  	) /s/ S G Murrells
	 acting by its duly authorised attorney:
	  	)
		
	 /s/ A Clarke
	  	 
		
	 Executed as a deed by
	  	)
	FORBUOYS LIMITED	  	)
	 acting by:
	  	)
		
	 	  	Director /s/ J Lancaster
		
	 	  	Director/Secretary /s/ Russell Cox
		
	 Executed as a deed by
	  	)
	TESCO PLC	  	) /s/ S G Murrells
	 acting by its duly authorised attorney:
	  	)
		
	 /s/ A Clarke
	  	 

  

 36

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]