Document:

Exhibit
10.14

 

DATED      8
February 2005

 

(1)
HIGHBURY HOUSE COMMUNICATIONS PLC

 

- and -

 

(2) ERGO
SCIENCE CORPORATION

 

AGREEMENT

relating to

the sale and purchase of the whole of the

issued share capital of the companies set out

in schedule 1

 

 

CONTENTS

 

	
  1. DEFINITIONS AND INTERPRETATION

  	
   

  
	
   

  	
   

  	
   

  
	
  2. SALE AND PURCHASE OF SHARES

  	
   

  
	
   

  	
   

  	
   

  
	
  3. CONDITION

  	
   

  
	
   

  	
   

  	
   

  
	
  4. EBITA

  	
   

  
	
   

  	
   

  	
   

  
	
  5. CONSIDERATION

  	
   

  
	
   

  	
   

  	
   

  
	
  6. RETENTION

  	
   

  
	
   

  	
   

  	
   

  
	
  7. SIGNING AND COMPLETION

  	
   

  
	
   

  	
   

  	
   

  
	
  8. WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  9. LIMITATION ON THE VENDOR’S
  LIABILITY

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  11.

  	
  INTERIM AND
  TRANSITIONAL ARRANGEMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  12.

  	
  USE OF NAMES

  	
   

  
	
   

  	
   

  	
   

  
	
  13.

  	
  TAXATION

  	
   

  
	
   

  	
   

  	
   

  
	
  14.

  	
  PROPERTY MATTERS

  	
   

  
	
   

  	
   

  	
   

  
	
  15.

  	
  FURTHER ASSURANCE
  AND ATTORNEY

  	
   

  
	
   

  	
   

  	
   

  
	
  16.

  	
  ANNOUNCEMENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  17.

  	
  COSTS

  	
   

  
	
   

  	
   

  	
   

  
	
  18.

  	
  SUCCESSORS AND ASSIGNMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  19.

  	
  ENTIRE AGREEMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  20.

  	
  CONFIDENTIALITY

  	
   

  
	
   

  	
   

  	
   

  
	
  21.

  	
  TIME FOR PERFORMANCE

  	
   

  
	
   

  	
   

  	
   

  
	
  22.

  	
  VARIATIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  23.

  	
  WAIVER

  	
   

  
	
   

  	
   

  	
   

  
	
  24.

  	
  AGREEMENT CONTINUES IN
  FORCE

  	
   

  
	
   

  	
   

  	
   

  
	
  25.

  	
  SEVERABILITY

  	
   

  
	
   

  	
   

  	
   

  
	
  26.

  	
  NOTICES

  	
   

  
	
   

  	
   

  	
   

  
	
  27.

  	
  COUNTERPARTS

  	
   

  

 

 

	
  28.

  	
  THIRD PARTY RIGHTS

  	
   

  
	
   

  	
   

  	
   

  
	
  29.

  	
  SERVICE OF PROCESS

  	
   

  
	
   

  	
   

  	
   

  
	
  30.

  	
  CAPACITY

  	
   

  
	
   

  	
   

  	
   

  
	
  31.

  	
  GOVERNING LAW AND
  JURISDICTION

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 1

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Part 1

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Companies

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Part 2

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Subsidiaries

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 2

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Warranties

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Part 1

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  General

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Part 2

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Media House and Dunsfold
  Park

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Part 3

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Pensions

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 3

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Taxation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Part 1

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Definitions and
  interpretation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Part 2

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Tax Warranties

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Part 3

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Tax
  Covenant

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Part 4

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Limitations and Procedure

  	
   

  
				

 

 

	
  SCHEDULE 4

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Part 1

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signing

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Part 2

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Completion

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 5

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Operation
  of the Companies pending Completion

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 6

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The Properties

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Part 1

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Details of the Properties

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Part 2

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title
  Deeds and other documents of title to the Properties

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 7

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Disclosed Schemes

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 8

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Working Capital Statements

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 9

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Limitations on
  the Vendor’s liability

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 10

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Registered
  Business Intellectual Property

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Part 1

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Trade Marks

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Part 2

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Domain Names

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 11

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Magazine Titles

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 12

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Exhibitions

  	
   

  

 

 

	
  SCHEDULE 13

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 14

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Transitional Arrangements

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULE 15

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Listed Software

  	
   

  

 

Agreed Form Documents

 

1.                                       Management
Accounts

2.                                       Highbury
Brand Assignment

3.                                       Nexus
& Columbus Brand Assignment

4.                                       Irrevocable
Letter of Instruction

5.                                       Deed
of Indemnity

6.                                       Vendor
Due Diligence Report

7.                                       Cheam
Agreement for Assignment

8.                                       Jordan
House Agreement for Assignment

 

 

THIS AGREEMENT is made on 8 February 2005

 

BETWEEN

 

(1)                                HIGHBURY
HOUSE  COMMUNICATIONS PLC a company registered
in England and Wales with number 1398522 whose registered office is at Jordan
House, 47 Brunswick Place, London N1 6EB (“Vendor”); and

 

(2)                                 ERGO
SCIENCE CORPORATION a company
incorporated under the laws of the State of Delaware, United States of America,
whose principal place of business is at 790 Turnpike Street, North Andover MA
01845, United States of America (“Purchaser”).

 

BACKGROUND

 

A                                      Highbury
Business Communications Limited, Highbury Business Limited, Nexus Media
Communications Limited, Highbury Columbus Travel Publishing Limited and
Highbury-Harpers Limited (“Companies”)
are private companies limited by shares. 
Further information relating to the Companies and the Subsidiaries is
set out in schedule 1.

 

B                                        The
Vendor is the legal and beneficial owner or is otherwise able to procure the
transfer of the Shares.

 

C                                        The
Vendor has agreed to sell or procure the sale of the Shares and the Purchaser
has agreed to purchase the Shares for the Consideration and upon the terms and
conditions set out in this agreement.

 

IT IS HEREBY AGREED:

 

1.                                       DEFINITIONS AND INTERPRETATION

 

1.1                                 In
this agreement the following words and expressions shall (except where the
context otherwise requires) have the following meanings:

 

“1985
Act” means the Companies Act 1985;

 

“1989
Act” means the Companies Act 1989;

 

“2004 EBITA” means an
amount equal to £185,880 (being the earnings before interest, tax and
amortisation for the year ended 31 December 2004 for the Magazine Title “European Communications” agreed by the
parties) plus the amount of the aggregate (without double counting) earnings
before interest, taxation and amortisation of the Target Group for the 12 month
period ending 31 December 2004 as derived from the Statutory Accounts but after
excluding the effect of the amount of any (i) write downs or impairment in
respect of any tangible or intangible assets, (ii) non-recurring items (iii)
inter-company loan provisions, (iv) accrual for the forecast loss in
respect of the TESI Conference which is to be held in March 2005 and (v) any
exceptional costs;

 

“Accounts” means the audited accounts of each of the Companies and the
Subsidiaries comprising (inter alia) the audited balance sheet as at the
Accounts Date and the audited profit and loss account for the period ended on
the Accounts Date, the notes relating thereto and the reports of the directors
and auditors thereon;

 

“Accounts
Date” means 31 December 2003;

 

1

 

“Anne Boleyn House Property” has the meaning given in clause 14;

 

“Approved” means exempt
approved by the Board of the Inland Revenue for the purposes of either Chapter
I or Chapter IV of Part XIV of the Taxes Act and “Approval” shall be construed accordingly;

 

“Balancing Amount” means
the positive or negative amount (in £ sterling) resulting from deducting the
Negative Adjustments (if any) from the Positive Adjustments (if any);

 

“BB Motors Claim” means
any claim brought or made by BB Motors against any Target Group member in
connection with the UDT Europe 2002 exhibition;

 

“Borrowings” means any borrowing, or
indebtedness in the nature of borrowing including any bank overdrafts,
liabilities under acceptances (otherwise than in respect of normal trade bills
or credit incurred in the ordinary course of business), finance leases and
acceptance credits but excluding any borrowing from any member of the Vendor’s
Group and any operating leases;

 

“Business” means collectively the business to business businesses relating to
printed and web-based magazines, data services and directories, exhibitions,
conferences and award ceremonies as carried on by the Companies and the
Subsidiaries at the date of this agreement and limited to the specific
industries and activities that such printed and web-based magazines, data
services and directories, exhibitions, conferences and award ceremonies have
related to in the past 12 months prior to the date of this agreement;

 

“Business
Day” means a day other than a Saturday or
Sunday on which banks are open for commercial business in the City of London
and in New York;

 

“Business
Intellectual Property” means all
Intellectual Property used exclusively by the Companies or the Subsidiaries in
connection with the Business;

 

“Business
Names” means the Magazine Titles, the names
of the Companies and the Subsidiaries, the Domain Names, the Trade Marks and
Exhibitions;

 

“Certified
EBITA Statement” means an EBITA Statement the accuracy of which has been confirmed in
writing by the Vendor’s Accountants or an Independent Accountant;

 

“Circular” means the circular to be
despatched by the Vendor, inter alia, to its shareholders in relation to the
proposed acquisition by the Purchaser of the Companies pursuant to this
agreement;

 

“Claim” means any claim by the Purchaser for breach of or non compliance
with this agreement (including any Warranty Claim or Tax Claim);

 

“Claim Notice” means a
notice in writing with respect to a Claim, setting out reasonable details of
such Claim and a genuine pre-estimate of the amount claimed;

 

“Companies
Acts” means the 1985 Act, the 1989 Act and
the Companies Consolidation (Consequential Provisions) Act 1985;

 

“Completion”
means the performance of all the obligations
of the parties to this 

 

2

 

agreement set
out in clause 7.2 and schedule 4;

 

“Completion Date” means,
unless the parties agree otherwise in writing, and subject to clause 3.2, 4.3
and 7.3, the last Business Day of the month in which the last of the following occurs:

 

(i)                                     the expiry of three Business Days after the date of fulfilment of
the Condition;

 

(ii)                                  the day falling 5 Business Days after the day on which the Vendor
delivers to the Purchaser the Statutory Accounts and the EBITA Statement (or,
if the Purchaser has so required, a Certified EBITA Statement); and

 

(iii)                               if a Termination Notice has been served pursuant to clause 8.8, the
day falling three Business Days after the date on which such Termination Notice
is determined to be of no further effect under clause 8.10,

 

provided,
however, that:

 

(a)                                  if the Completion Date would fall on 31 March or 30 June it shall be
deferred until 1 April and 1 July respectively; and

 

(b)                                 if there is an Outstanding Restriction on the date which would
otherwise be the Completion Date, the Completion Date shall be the last
Business Day of the month in which such Outstanding Restriction falls away.

 

“Computer
Systems” means the computer hardware and
software and network infrastructure owned or used in connection with the Business
by the Companies and Subsidiaries (or any of them);

 

“Condition” means the passing at a general
meeting of the Vendor (or at any adjournment thereof) of a resolution to
approve the disposal by the Vendor of the Shares on the terms of this
agreement;

 

“Confidential
Information” means information (however
stored) exclusively relating to or connected with the Business, customers or
financial or other affairs of the Companies or of the Subsidiaries details of
which are not in the public domain including, without limitation, information
exclusively concerning or relating to:

 

(a)                                  the Business Intellectual Property and any other property of the
Companies or the Subsidiaries in the nature of Intellectual Property;

 

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

 

(c)                                  the marketing of goods or services including, without limitation,
customer, client and supplier lists, price lists, sales targets, sales
statistics, market share statistics, market research reports and surveys,
advertising or other promotional materials, advertisers, circulation and
subscription lists and exhibitor, visitor and delegate lists; and

 

(d)                                 employee information and records.

 

“Confidentiality
Agreement” means
the confidentiality agreement between the

 

3

 

Purchaser and Highbury House Communications PLC dated the same date as
this agreement;

 

“Consideration” means the consideration for the Shares, as defined in clause 5;

 

“Content Copyright” means
the copyright and database right in the content of the printed and web-based
magazines and directories published under the Magazine Titles at the Completion
Date;

 

“Deed
of Indemnity” means the deed of indemnity in the agreed form to be entered into on the
Completion Date between the Vendor and Highbury Business Communications
Limited;

 

“Disclosed
Schemes” means the retirement benefit
schemes details of which are set out in schedule 7;

 

“Disclosure
Letter” means the letter of even date with
this agreement from the Vendor to the Purchaser relating to the Warranties
together with any documents annexed to it, delivered to and acknowledged by the
Purchaser on the date of this agreement;

 

“Domain
Names” means the domain names listed in
part 2 of schedule 10;

 

“Draft
Completion Statement” has the meaning given in schedule 8;

 

“Dunsfold
Park”
means the leasehold premises known as Building 17, Dunsfold Park, Cranleigh,
Surrey comprised in a lease dated 22 November 2004 between
(1) Dunsfold Park Limited and (2) The International Wine and Spirit
Competition Limited;

 

“EBITA
Statement”
has the meaning given in clause 4;

 

“Employee” means any director or employee of the Companies or the Subsidiaries
or any of them;

 

“Employment Legislation” means legislation applying
in England and Wales affecting contractual or other relations between employers
and their employees or workers, including but not limited to any legislation
and any amendment, extension or re-enactment of such legislation and any claim
arising under European treaty provisions or directives enforceable against any
Target Group member by any Employee;

 

“Encumbrance” means a mortgage, charge, pledge, lien, option, restriction,
equity, right to acquire, right of pre-emption, third party right or interest,
other encumbrance or security interest of any kind or any other type of
preferential arrangement (including, without limitation, a title transfer and
retention arrangement) having similar effect;

 

“Estimated Consideration” means
£11,459,000 less the Intercompany Balance, being the purchase price of
£12,500,000 less the Intercompany Balance and the estimated working capital
adjustment;

 

“Estimated Events Working Capital” means the parties’ estimate of the Events Working Capital as at the
Completion Date, being negative £600,000 (negative six 

 

4

 

hundred
thousand pounds);

 

“Estimated Publishing Working Capital” means the parties’ estimate of the Publishing Working Capital as at
the Completion Date, being positive £441,000 (positive four hundred and forty
one thousand pounds);

 

“Events Business” means
the business of organising and holding exhibitions, conferences and awards
ceremonies carried on by the Target Group:

 

“Events Working Capital”
means the Working Capital of the Target Group at the close of business on the
Completion Date, to the extent applicable to the Events Business as set out in
the Final Completion Statement;

 

“Exchange Warranties”
means the Warranties set out at paragraphs 2 (Accounts),
3 (Management Accounts), 4.1.3,
4.2 (Vendor Due Diligence Report),
5.2 and 5.9 (Position since Accounts Date),
17.1, 17.2, 17.3, 17.4, 17.7 and 17.13 (Employment)
and 18 (Contracts) of
Part 1 of Schedule 2 and paragraphs 3.3 and 3.4 of Part 3 (Pensions) of Schedule 2 (which are not to
be repeated at Completion);

 

“Excluded Warranties”
means the warranties set out in paragraphs 2, 3, 4, 5, 6, 9, 10, 11, 12, 21,
22, 23, 24 and 25 of part 1 schedule 2;

 

“Exhibitions” means the events, conferences, awards ceremonies listed in
schedule 12;

 

“Fairly
Disclosed” means disclosed in such manner
and in such detail so as to enable a reasonable purchaser to make a fair
assessment of the matter concerned;

 

“Final Completion Statement” means the Draft Completion Statement as agreed or determined in
accordance with schedule 8;

 

“Forecasts” means the
forecast(s) set out in section 6 of the Vendor Due Diligence Report;

 

“Future
Exhibitions” means those exhibitions to be held after the Completion Date;

 

“Future
Issues” means those issues of the Magazine
Titles in respect of which the mailing dates fall after the Completion Date;

 

“FSMA” means Financial Services and Markets Act 2000;

 

“Highbury
Brand Assignment” means the assignment between the Vendor and the Purchaser relating to
the cessation of use of the “Highbury” and “Highbury House” name in the agreed
form;

 

“Independent Accountant”
means an internationally-recognised accounting firm acceptable to both parties
(other than Deloitte & Touche or PricewaterhouseCoopers), or if the parties
are unable to agree on such a firm, an internationally recognised accounting
firm to be selected by the President for the time being of the Institute of
Chartered Accountants in England and Wales;

 

“Independent
Expert”
means a Queen’s Counsel of at least five years standing agreed by the parties
(or if they fail to agree within three Business Days of either party proposing
any such person to be the Independent Expert an independent 

 

5

 

Queen’s Counsel of at least five years standing appointed by the
President of the Bar Council of England and Wales on the application of either
party);

 

“Intellectual
Property” includes registered designs,
copyrights, trade secrets, know-how, data, database rights, design rights,
rights affording equivalent protection to copyright, database rights and design
rights, trade marks, service marks, logos, domain names, business names, trade
names, moral rights, and all registrations or applications to register any of
the aforesaid items, rights in the nature of any of the aforesaid items in the
United Kingdom and rights to sue for passing-off in each case for their full
term and together with any renewals or extensions;

 

“Intercompany
Balance” means
the aggregate amount of all indebtedness owed at Completion by any member of
the Target Group to any member of the Vendor’s Group, less the aggregate amount
of all indebtedness owed by any member of the Vendor’s Group to any member of
the Target Group, as such amount shall be notified by the Vendor to the
Purchaser no later than two Business Days before Completion and which amount
shall be a positive number not exceeding £10,000,000;

 

“Irrevocable Letter of Instruction” means an irrevocable letter of instruction issued by the Vendor and
the Purchaser to the Vendor’s Solicitors and the Purchaser’s Solicitors in
respect of the Retention Account in substantially the same form as the agreed
form having regard to the comments made prior to the date of this agreement by
the Purchaser’s Solicitors;

 

“IT Support Agreements”
means the licences, systems supply agreements, data supply agreements,
maintenance agreements, service or services agreement entered into by the
Companies and the Subsidiaries (or any of them) to procure support and services
in relation to the Computer Systems;

 

“ITEPA” means Income Tax
(Earnings and Pensions) Act 2003;

 

“Jordan
House Property” has the meaning given in
clause 14;

 

“Leases”
means the
leases or licences under which any Property is occupied by the Companies;

 

“Licence” means any written licence, permission or consent in respect of any
Business Intellectual Property and any written arrangement of which any
licence, permission or consent forms part and which is material to the
Business;

 

“Listed Software” means
the licenses for the software and web tools listed in schedule 15;

 

“Listing
Rules” means the listing rules of the UK
Listing Authority for the time being in force;

 

“London
Stock Exchange” means London Stock Exchange plc;

 

“Losses” means any cost, claim, loss, liability, demand, damage or expense
of any nature;

 

“Magazine
Titles” means the magazine titles and
directories listed in schedule 11;

 

“Management
Accounts” means the unaudited management
accounts of the Target 

 

6

 

Group in
respect of the Business for the nine month period from 1 January 2004 to
30 September 2004 and for the 12 month period from 1 January 2004 to
31 December 2004 in the agreed form;

 

“Media
House”
means the freehold land and premises at Azalea Drive, Swanley, Kent BR8 8HY and
also garage 11 Edwards Gardens, Swanley as more particularly described in part
1 of schedule 6;

 

“Negative Adjustments”
means the aggregate of the
following amounts:

 

(a)                                  the amount, if any, (in £ sterling) by which the Events Working
Capital is less than the Estimated Events Working Capital;

 

(b)                                 the amount, if any, (in £ sterling) by which the Publishing Working
Capital is less than the Estimated
Publishing Working Capital;

 

“Nexus
& Columbus Brand Assignment” means the assignment between a Target Group
member and the Vendor relating to the cessation of use by the Vendor’s Group of
the “Nexus” and “Columbus” names in the agreed form;

 

“Official
List” means the official list of the UK
Listing Authority;

 

“Order” shall have the
meaning given in clause 3.5;

 

“Outstanding Restriction”
means an Order which has been granted and not been set aside or otherwise
satisfied;

 

“Past
Issues”
means those issues of the Magazine Titles which were despatched to the relevant
printers before the Completion Date;

 

“PAYE” means the mechanism
prescribed by Tax Statutes (as defined in part 1 of schedule 3) for the
collection of tax, sums to which sections 203 to 203L of the Taxes Act and
regulations made under such sections apply or to which Part 11 of the ITEPA and
regulations made under section 684 of the ITEPA apply and Class 1, Class 1A and
Class 1B contributions referred to in section 1(2) of the Social Security
Contributions and Benefits Act 1992;

 

“Positive Adjustments” means
the amount, if any, (in £ sterling) by which the Events Working Capital exceeds
the Estimated Events Working Capital;

 

“Pre-Completion
Claim Amounts” means, in respect of Warranty Claims or any Specified Claims (including
breaches which would arise on repetition of the Warranties (other than the
Exchange Warranties) on Completion) of which the Purchaser becomes aware before
Completion, the aggregate of any amounts which the Purchaser reasonably expects
to recover in respect of such Warranty Claims or Specified Claims (and, for the
avoidance of doubt, taking account of the limitations on the Vendor’s liability
set out in this agreement (and in particular schedule 9)) , (provided that
amounts which the Purchaser might reasonably expect to recover in relation to
an individual Warranty Claim or Specified Claim shall, for these purposes, be
limited to £750,000 unless such amounts are certified by an Independent Expert
with experience of pursuing claims of a similar nature to the Warranty Claims
or Specified Claims in question as being the amount that the Purchaser could
reasonably expect to recover in respect of such Warranty Claim) and also
provided that such Pre-Completion Claim Amounts shall have been notified by the
Purchaser to the Vendor 

 

7

 

as soon as reasonably practicable after the Purchaser becomes aware of
the Warranty Claim or Specified Claims in question and, in any event, no later
than two Business Days before Completion and provided that a Warranty Claim or
Specified Claim shall only be a Pre-Completion Claim to the extent that an
amount has actually become due prior to Completion or the Purchaser would
actually incur Losses upon Completion;

 

“Properties” means the freehold and leasehold land and premises described in
schedule 6 and any part or parts thereof and “Property” means any of the Properties save where otherwise
specifically indicated;

 

“Publishing Business”
means the Business other than the Events Business;

 

“Publishing Working Capital” means the Working Capital of the Target Group as at the close of
business on the Completion Date, to the extent applicable to the Publishing
Business as set out in the Final Completion Statement;

 

“Purchaser’s
Group” means the Purchaser, any parent
undertaking from time to time of the Purchaser, any subsidiary undertaking from
time to time of the Purchaser and any subsidiary undertaking from time to time
of any such parent undertaking, and includes, following Completion, for the
avoidance of doubt, the Companies and the Subsidiaries and references to a “member of the Purchaser’s Group” shall be construed
accordingly;

 

“Purchaser’s
Solicitors” means Penningtons of Newbury
House, 20 Kings Road West, Newbury, Berkshire RG14 5XR;

 

“Retained Confidential Information” means information (however stored) exclusively relating to or
connected with the business, customers or financial or other affairs of the
Vendor’s Group (other than the Business) details of which are not in the public
domain;

 

“Retention Account” means an
interest bearing account to be opened with National Westminster Bank plc (or
such other bank as the parties may agree) in the joint names of the Vendor’s
Solicitors and the Purchaser’s Solicitors and operated in accordance with the
terms of this agreement.

 

“Share
Warranties” means the warranties on the part
of the Vendor set out in schedule 2;

 

“Share
Warranty Claim” means any claim for breach
of any of the Share Warranties;

 

“Shareholders” means the
Vendor, Columbus Holdings Limited and S. Stracker (Holdings) Limited;

 

“Shares” means the allotted and issued shares in the capital of the
Companies comprising the whole of the issued share capital of the Companies
further details of which are set out in part 1 of schedule 1;

 

“Source Code” means the
source code in the software developed by or on behalf of the Target Group
members and forming the Websites or any content management system that any
Target Group member uses or requires for its Businesses;

 

“Specified Claim” means
any Claim under any of (i) the Tax Covenant; (ii) clauses 

 

8

 

3.4, 5.3,
8.14, 8.15, 8.17 or 14.2; and (iii) paragraph 34 of schedule 14;

 

“Specified
Individuals” means Owen Davies, Anthony
Salter, Hafeez Anjarwalla, Steve Hardiman, Anthony Greville and Peter
Korniczky;

 

“Statutory
Accounts”
has the meaning set out in clause 4.1;

 

“Stock
Exchange Rules” means the rules of the
London Stock Exchange for the time being in force;

 

“Subscriber Lists” means
the list of customers who are parties to the Subscription Contracts;

 

“Subscription
Contracts” means the contracts between the
Companies and third parties and the Subsidiaries and third parties for
subscription to the Magazine Titles where there are obligations outstanding to
supply Future Issues;

 

“Subsidiaries” means The International Wine and
Spirit Competition Limited, Highbury-Nexus Limited and Highbury Nexus Media
Limited further details of which are set out in part 2 of schedule 1;

 

“Target
Group” means
the Companies and the Subsidiaries and references to a “member of the Target Group” or a “Target Group member” shall be construed
accordingly;

 

“Tax
Claim” means any claim under the Tax
Warranties or the Tax Covenant;

 

“Tax
Covenant” means any covenant, obligation or
other undertaking of the Vendor set out in part 3 of schedule 3;

 

“Tax
Warranties” means the warranties on the part
of the Vendor in relation to taxation set out in part 2 of schedule 3;

 

“Taxes
Act” means the Income and Corporation Taxes
Act 1988;

 

“TCGA” means the Taxation of Chargeable Gains Act 1992;

 

“Trade
Marks” mean the registered trade marks
listed in part 1 of schedule 10;

 

“UK
Listing Authority” means the Financial
Services Authority acting in its capacity as the competent authority for the
purposes of Part VI of the FSMA, including where the context so permits, any
committee, employee, officer or servant to whom any function of the UK Listing
Authority may for the time being be delegated;

 

“US Escrow Account” means
the accounts of Voyageur Asset Management (MA) Inc in the names of Ergo Science
Development Corporation and Ergo Research Corporation which are the subject of
the US Escrow Letter;

 

“US Escrow Letter” means
the letter of even date herewith made between Voyageur Asset Management (MA)
Inc., Ergo Science Development Corporation, Ergo Research Corporation, the
Vendor and the Purchaser;

 

“US GAAP Accounts” means
the accounts for the Target Group required to be filed 

 

9

 

by the
Purchaser with the Securities Exchange Commission in relation to the
acquisition contemplated by this agreement;

 

“VAT” means value added tax;

 

“Vendor’s
Accountants” means Deloitte & Touche of
180 The Strand, London WC2R 1BL;

 

“Vendor Due Diligence Report” means the report in the agreed form dated 9 December 2004 entitled “Project
Bach Final Draft Vendor Due Diligence Report” prepared by the Vendor’s
Accountants;

 

“Vendor’s
Group” means the Vendor, any parent
undertaking from time to time of the Vendor, any subsidiary undertaking from
time to time of the Vendor and any subsidiary undertaking from time to time of
any such parent undertaking, other than any member of the Target Group, and,
save where specifically stated to the contrary in clause 10.8, references
to “member of
the Vendor’s Group” shall be
construed accordingly;

 

“Vendor’s
Solicitors” means DLA Piper Rudnick Gray
Cary UK LLP of 3 Noble Street, London EC2V 7EE;

 

“Warranties” means the Share Warranties and the Tax Warranties;

 

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

 

“Website” means the
digital content available on the world wide web and known under the relevant
Domain Names;

 

“Working Capital” has the
meaning given in schedule 8; and

 

1.2                                 In
this agreement where the context admits:

 

1.2.1                        save in relation to schedule 3, words and phrases which are defined
or referred to in or for the purposes of the Companies Acts have the same
meanings in this agreement (unless otherwise expressly defined in this
agreement);

 

1.2.2                        sections 5, 6, 8 and 9 of and schedule 1 to the Interpretation Act
1978 apply in the same way as they do to statutes;

 

1.2.3                        reference to a statutory provision includes reference to:

 

1.2.3.1                  any order, regulation, statutory instrument or other subsidiary
legislation at any time made under it for the time being in force (whenever
made);

 

1.2.3.2               any
modification, amendment, consolidation, re-enactment or replacement of it or
provision which is a modification, amendment, consolidation, re-enactment or
replacement of it except to the extent that any modification, amendment,
consolidation, re-enactment or replacement made after the date of this
agreement would increase the liability of any of the parties hereto;

 

10

 

1.2.4                        reference to a clause, schedule or paragraph is to a clause,
schedule or a paragraph of a schedule of or to this agreement respectively;

 

1.2.5                        reference to the parties to this agreement includes their respective
successors, permitted assigns and personal representatives;

 

1.2.6                        reference to any party to this agreement comprising more than one
person includes each person constituting that party;

 

1.2.7                        reference to any gender includes the other genders;

 

1.2.8                        reference to any professional firm or company includes any firm or
company effectively succeeding to the whole, or substantially the whole, of its
practice or business;

 

1.2.9                        the index, headings and any descriptive notes are for ease of
reference only and shall not affect the construction or interpretation of this
agreement;

 

1.2.10                  this agreement incorporates the schedules to it;

 

1.2.11                  where any statement is qualified by the expression “so far as the Vendor is aware” or any
similar expression the Vendor shall be deemed to have knowledge of anything of
which it would have had knowledge had it made careful enquiries of the
Specified Individuals;

 

1.2.12                  any reference to “including”
or “in particular” or any similar
expression shall be construed without limitation; and

 

1.2.13                  the “agreed form” in
relation to any document means the form agreed between the parties to this
agreement prior to the date hereof and, for the purposes of identification
only, initialled by or on behalf of the parties.

 

2.                                      SALE AND PURCHASE OF SHARES

 

The Vendor
shall as legal and beneficial owner sell to the Purchaser, or procure the
transfer to the Purchaser of the legal and beneficial ownership in, the Shares,
and the Purchaser shall purchase the Shares, free from all Encumbrances and
together with all rights of any nature which are now or which may at any time
become attached to them or accrue in respect of them including all dividends
and distributions declared paid or made in respect of them on or after
Completion.

 

3.                                      CONDITION

 

3.1                                 Completion
is conditional on the satisfaction or waiver (by the Purchaser and the Vendor)
of the Condition.

 

3.2                                 If
the Condition has not been fulfilled or waived by midnight on 1 May 2005 or if
Completion has not occurred by midnight on 31 August 2005 or, in either case,
such later date as may be agreed in writing by the parties, either the Vendor
or the Purchaser may terminate this agreement by notice in writing to the
other.  Upon such termination, none of
the parties shall have any further rights or obligations under this agreement
other than any accrued rights at that time except in respect of the provisions
of clauses 1, 3.4, 16, 17, 18, 19, 20, 22, 23 and 25 to 31 inclusive which will
continue in full force and effect.

 

11

 

3.3                                 The Vendor shall as soon as reasonably practicable
and in any event by 15 April 2005 despatch to its shareholders the Circular
(and any resolution to be put to the shareholders of the Vendor to approve this
agreement shall not be combined with any resolution to approve any other matter
or transaction), and shall notify the Purchaser as soon as practicable after it
becomes aware that the Condition is satisfied or has become or is likely to
become incapable of being satisfied.

 

3.4                                 If
this agreement is terminated because the Condition has not been fulfilled or
waived by 1 May 2005 then no later than five Business Days following such
termination, the Vendor shall (i) provide written instruction to Voyageur Asset
Management (MA) Inc releasing it from its obligations under, and terminating,
the US Escrow Letter and (ii) pay to the Purchaser the amount of £275,000 (two
hundred and seventy-five thousand pounds), together with any properly incurred
costs of any accountants instructed or engaged by the Purchaser incurred up to
the date of such termination in connection with the preparation of the US GAAP
Accounts.  The parties agree that such
amount represents a genuine and reasonable pre-estimate of the losses
(including with respect to legal fees) that will be incurred by the Purchaser
as a result of such termination.

 

3.5                                 In
the event of any person seeking an order (“Order”)
which may prevent completion of the sale and purchase of the Shares pursuant to
this agreement, the Purchaser agrees to use all reasonable endeavours to oppose
and/or have set aside such Order and shall keep the Vendor informed of the
progress of any proceedings in relation thereto and the likelihood of the
Purchaser succeeding and the Purchaser shall, if required, use all reasonable
endeavours to seek the approval of its shareholders to the transaction
contemplated by this agreement unless, it is not reasonably practicable to do
so due to legal or regulatory requirements.

 

4.                                      EBITA

 

4.1                                 Between
the date of this agreement and Completion, the Vendor shall as soon as
reasonably practicable prepare and deliver to the Purchaser:

 

4.1.1                        audited statutory accounts for each of the Companies and
Subsidiaries for the year ending 31 December 2004 (together the “Statutory Accounts”); and

 

4.1.2                        a statement of the 2004 EBITA (the “EBITA
Statement”).

 

4.2                                 The
Statutory Accounts shall be prepared on a basis consistent with the Accounts
using the same accounting principles, policies and practices, and in accordance
with the law and applicable standards, principles and practices generally
accepted in the United Kingdom.

 

4.3                                 The
Purchaser may, by notice in writing to the Vendor given at any time within
three Business Days after delivery by the Vendor to the Purchaser of the EBITA
Statement or, (if requested by the Purchaser pursuant to clause 4.4) a
Certified EBITA Statement, terminate this agreement if the 2004 EBITA as set
out in the EBITA Statement or the Certified EBITA Statement as the case may be
is less than £923,000.  In the event of
any such termination, none of the parties shall have any further rights or
obligations under this agreement other than any accrued rights at that time
except in respect of the provisions of clauses 1, 3.4, 16, 17, 18, 19, 20, 22,
23 and 25 to 31 inclusive which will continue in full force and effect.  Promptly following such termination, the
Vendor will provide written instructions to Voyageur Asset 

 

12

 

Management (MA) Inc.
releasing it from its obligations under, and terminating, the US Escrow Letter.

 

4.4                                 Within
two Business Days of the receipt of the Statutory Accounts and EBITA Statement
the Purchaser may, if the EBITA Statement is not a Certified EBITA Statement,
require that the Vendor deliver a Certified EBITA Statement.

 

5.                                      CONSIDERATION

 

5.1                                 The
consideration payable by the Purchaser for the Shares shall be £12,500,000
(twelve million five hundred thousand pounds), less the Intercompany Balance
and subject to the adjustments set forth in clause 5.3 (such consideration, as
so adjusted, being referred to as the “Consideration”).

 

5.2                                 At
Completion, the Purchaser shall pay the Estimated Consideration as follows:

 

5.2.1                        to the Vendor’s Solicitors, £10,709,000 (ten million seven hundred
and nine thousand pounds), less:

 

5.2.1.1               an
amount equal to the Intercompany Balance; and

 

5.2.1.2               any
Pre Completion Claim Amounts; and

 

5.2.2                        into the Retention Account, £750,000 (seven hundred and fifty
thousand pounds), plus any Pre Completion Claim Amounts.

 

5.3                                 Following
Completion, the parties shall comply with the provisions of schedule 8 with
respect to the matters referred to therein. 
On the day falling 10 Business Days after agreement or determination of
the Final Completion Statement (“Payment Date”):

 

5.3.1                        if the Balancing Amount is a positive amount, the Purchaser shall
pay to the Vendor an amount equal to the Balancing Amount plus interest
calculated from the Completion Date until the Payment Date at one per cent
below the base rate of Barclays Bank PLC; and

 

5.3.2                        if the Balancing Amount is a negative amount, the Vendor shall pay to
the Purchaser an amount equal to the Balancing Amount plus interest calculated
from the Completion Date until the Payment Date at one per cent below the base
rate of Barclays Bank PLC,

 

(the Estimated Consideration, as increased
by the positive amount or reduced by the negative amount of any Balancing
Amount, shall be referred to as the “Final
Consideration”).

 

5.4                                 If
a party fails to pay any sum due by it under this clause on the due date for
payment in accordance with the provisions of this agreement, the party shall
pay interest on the amount payable from the due date until the date on which
the party’s obligation to pay the sum is discharged at 2 per cent above
Barclays Bank base rate (whether before or after judgment).  Interest accrues and is payable from day to
day.

 

5.5                                 The
parties shall comply with the provisions of schedule 8 with respect to the
matters contained in that schedule.

 

13

 

5.6                                 If
any Pre-Completion Claim Amounts are paid into the Retention Account by the
Purchaser pursuant to clause 5.2, the parties shall use all reasonable
endeavours to resolve the Claim or Claims to which such Pre-Completion Claim
Amounts relate as soon as reasonably practicable after Completion.

 

6.                                      RETENTION

 

6.1                                 Once
any Warranty Claim or Specified Claim has been settled the Purchaser and the
Vendor shall, on the Business Day following such settlement, instruct the
Purchaser’s Solicitors and the Vendor’s Solicitors to pay to the Purchaser from
the Retention Account an amount equal to any sum due to the Purchaser from the
Vendor in respect of the settled Warranty Claim or Specified Claim (“Principal”) together with any interest
accrued on the Retention Account in respect of such Principal and the Vendor’s
obligation to the Purchaser in respect of the settled Warranty Claim or
Specified Claim shall be reduced by an amount equal to such Principal.

 

6.2                                 If,
by the first Business Day falling six calendar months after the Completion Date
(“Release Date”), the Purchaser
shall not have served a Claim Notice in respect of any Warranty Claim or
Specified Claim or if all such Warranty Claims or Specified Claim which are the
subject of any Claim Notices which have been served have been settled and any
sums due to the Purchaser in respect of such Warranty Claims or Specified
Claims have been paid to the Purchaser pursuant to clause 6.1 above, the
Purchaser and the Vendor shall, on the Release Date, instruct the Purchaser’s
Solicitors and the Vendor’s Solicitors to pay to the Vendor’s Solicitors from
the Retention Account the balance of any amounts (including interest) remaining
in the Retention Account.

 

6.3                                 If
there are Warranty Claims or Specified Claims outstanding which have not been
settled by the Release Date (“Outstanding
Claims”), the Purchaser and the Vendor shall instruct the Purchaser’s
Solicitors and the Vendor’s Solicitors to pay to the Vendor’s Solicitors from
the Retention Account an amount equal to the balance of any amounts (including
interest) remaining in the Retention Account less an amount equal to:

 

6.3.1                        an amount agreed by the Vendor and Purchaser (or failing such
agreement as determined by an Independent Expert) as being a reasonable
estimate of the Vendor’s liability in respect of such Outstanding Claims; and

 

6.3.2                        interest earned in the Retention Account in respect of the sum
referred to in 6.3.1 above.

 

6.4                                 Immediately
following the settlement of any Outstanding Claims (and following any payments
to the Purchaser’s Solicitors due upon settlement of such Outstanding Claims
pursuant to clause 6.1 above) the Vendor and the Purchaser shall instruct the
Purchaser’s Solicitors and the Vendor’s Solicitors to pay to the Vendor’s
Solicitors from the Retention Account an amount equal to the balance of any
amounts (including interest) remaining in the Retention Account less an amount
equal to:

 

6.4.1                        an amount agreed by the Vendor and Purchaser (or failing such
agreement as determined by an Independent Expert) as being a reasonable
estimate of the Vendor’s liability in respect of any other Outstanding Claims;
and

 

6.4.2                        any interest earned on the amount referred to in 6.4.1 above.

 

14

 

6.5                                 A
Warranty Claim or Specified Claim shall be treated as settled for the purposes
of this clause 6 if:

 

6.5.1                        the Vendor and the Purchaser shall so agree in writing, such written
agreement not to be unreasonably withheld or delayed following any oral
agreement; or

 

6.5.2                        a court of competent jurisdiction has awarded judgment in respect of
the claim and no right of appeal lies in respect of such judgment or the
parties are debarred by passage of time or otherwise from making an appeal.

 

6.6                                 Save
where expressly stated to the contrary nothing in this clause 6 shall prejudice
or limit the right of the Purchaser to make any claim against the Vendor either
under this agreement or under any of the documents executed pursuant to this
agreement.

 

6.7                                 A
payment to be made under this clause 6 shall be made by telegraphic transfer to
an account notified by the party due to receive the payment to the other party
not later than two Business Days before the due date of the payment.

 

7.                                      SIGNING AND COMPLETION

 

7.1                                 The
signing of this agreement shall take place at the offices of the Vendor’s
Solicitors when each of the parties shall comply with the provisions of part 1
of schedule 4.

 

7.2                                 Subject
to clause 7.3, Completion shall take place at the offices of the Vendor’s
Solicitors on the Completion Date when each of the parties shall comply with
the provisions of part 2 of schedule 4.

 

7.3                                 Notwithstanding
any other provision of this agreement, the Purchaser shall not be obliged to
complete the purchase of any of the Shares unless:

 

7.3.1                        the purchase of all of the Shares is completed simultaneously; and

 

7.3.2                        the Vendor shall have delivered to the Purchaser the Statutory
Accounts and the EBITA Statement (or, if required by the Purchaser, a Certified
EBITA Statement) not less than five Business Days prior to the Completion Date.

 

8.                                      WARRANTIES

 

8.1                                 The
Vendor warrants to the Purchaser at the date of this agreement that each of the
Warranties is true and accurate.  The
Warranties (other than the Exchange Warranties) shall be repeated by the Vendor
immediately prior to Completion by reference to the facts and circumstances
existing at that time.

 

8.2                                 Each
of the Warranties shall be construed as a separate and independent warranty and
(except where this agreement provides otherwise) shall not be limited or
restricted by reference to or inference from any other term of this agreement
or any other Warranty.

 

8.3                                 The
Purchaser acknowledges and agrees that:

 

8.3.1                        the only Warranties (other than the Excluded Warranties) being given
in relation to the Properties are those set out in part 2 of schedule 2, and
then only insofar as they relate to Media House and Dunsfold Park and that no 

 

15

 

Claim can be made under any other
Warranties (other than the Excluded Warranties) in relation to matters which
relate to the Properties;

 

8.3.2                        the only Warranties (other than the Excluded Warranties) being given
in relation to pensions are those set out in part 3 of schedule 2 and that no
Claim can be made under any other Warranties (other than Excluded Warranties)
in relation to matters which relate to the Disclosed Schemes;

 

8.3.3                        the only Warranties (other than the Excluded Warranties) being given
in relation to Confidential Information, Intellectual Property, Computer
Systems, the IT Support Agreements and data protection are those set out in
paragraphs 13, 14, 15 and 16 respectively of part 1 of schedule 2 and no Claim
can be made under any other of the Warranties (other than Excluded Warranties)
in relation to matters which are issues of Confidential Information,
Intellectual Property, the IT Support Agreements, Computer Systems or data
protection.

 

8.4                                 The
rights and remedies of the Purchaser in respect of any breach of any of the
Warranties shall survive Completion.

 

8.5                                 The
Vendor waives and may not enforce any right which it may have in respect of any
misrepresentation, inaccuracy or omission in or from any information or advice
supplied or given by the Companies, the Subsidiaries or their respective
officers or employees in enabling the Vendor to give the Warranties or to
prepare the Disclosure Letter save in the case of the fraud or wilful
concealment of any officer or employee.

 

8.6                                 Between
the execution of this agreement and Completion the Vendor agrees that it will
procure that the Companies and the Subsidiaries comply with the provisions of
schedule 5.

 

8.7                                 The
Warranties shall be qualified by such information as is Fairly Disclosed in the
Disclosure Letter.

 

8.8                                 If
between the date of this agreement and Completion the Purchaser becomes aware
of any matter or matters which entitle the Purchaser (or which would entitle
the Purchaser upon repetition of the Warranties (other than the Exchange
Warranties)) pursuant to clause 8.1, to make one or more Warranty Claims (other
than a Warranty Claim for breach of the warranty set out at paragraph 3 of Part
1 of Schedule 2) (whether such claim or claims are actual or based upon a
contingent liability) (alone or in conjunction with other such Warranty Claims)
in circumstances where an Independent Expert with experience in advising in
relation to claims of a similar nature to the Warranty Claims in question has
delivered an opinion in writing (“Opinion”)
that the Purchaser could reasonably expect to recover not less than £2,500,000
in respect of such Warranty Claims (taking into account limitations on the
liability on the Vendor set out in this agreement including those set out in
schedule 9), the Purchaser shall be entitled to serve notice (“Termination Notice”) in writing to the
Vendor setting out reasonable details of the Warranty Claim(s) in question and
attaching the Opinion.

 

8.9                                 If
the Purchaser serves a Termination Notice, the Vendor shall (unless the Vendor
agrees with the Purchaser that such matter or matters are not capable of
remedy) have a period of 10 Business Days from receipt of the Termination
Notice to remedy such breach or breaches of Warranty.

 

16

 

8.10                           If the
Vendor (at its expense) remedies the breach or breaches by no later than the
tenth Business Day from the date of receipt of the Termination Notice, the
Termination Notice shall be of no further effect in respect of such breach or
breaches and the Purchaser shall not be entitled to terminate this agreement
pursuant to such Termination Notice.

 

8.11                           If the
Vendor fails to remedy the breach (at its expense) this agreement shall be
deemed to have terminated 10 Business Days from the date when the Termination
Notice was received by the Vendor.  In
the event of any such termination, none of the parties shall have any further
rights or obligations under this agreement other than any accrued rights
(excluding any rights to bring Warranty Claims) at that time except in respect
of the provisions of clauses 1, 3.4, 16, 17, 18, 19, 20, 22, 23 and 25 to 31
inclusive which will continue in full force and effect.  Promptly following such termination, the
Vendor will provide written instructions to Voyageur Asset Management (MA) Inc.
releasing it from its obligations under, and terminating, the US Escrow Letter.

 

8.12                           If,
notwithstanding that the Purchaser is aware of a matter or matters which
entitle it to terminate this agreement pursuant to clause 8.8, Completion
occurs, the Purchaser shall not be deemed, by so doing, to have waived any
Warranty Claim or other Claim which it might have against the Vendor in respect
of the matter or matters concerned.

 

8.13                           The
Vendor and Purchaser shall notify each other in writing of anything which may
give rise to a right to terminate pursuant to clauses 8.8 as soon as reasonably
possible after it comes to the notice of either party at any time between the
date of this agreement and the Completion Date.

 

8.14                           The
Vendor shall indemnify, defend and hold harmless the Purchaser and each member
of the Target Group in relation to any Losses incurred by any of them in relation
to the BB Motors Claim provided, for the avoidance of doubt, that paragraph 6
of schedule 9 shall apply to the BB Motors Claim.

 

8.15                           In the
event that any Target Group Member has any Borrowings the Vendor shall pay to
the Purchaser an amount equal to such Borrowings within 10 Business Days of it
being established to both parties’ satisfaction each acting reasonably that any
such Target Group member has any Borrowings.

 

8.16                           Subject
to repayment in full of the Intercompany Balance at Completion, the Vendor (for
itself and as agent for the other members of the Vendor’s Group) irrevocably
and unconditionally waives with effect from Completion any rights or claims
against any member of the Target Group outstanding at the Completion Date.

 

8.17                           The
Vendor will reimburse to the Purchaser the amount of any further consideration
payable by the Purchaser or any Target Group member pursuant to and in
accordance with clause 3 of the agreement dated 19 September 2001 between
Highbury Business Communications Limited and DMG World Media (UK) Limited, such
amount to be paid within 14 Business Days of being notified of the amount
agreed or determined in accordance with that clause 3.

 

17

 

9.             LIMITATION ON
THE VENDOR’S LIABILITY

 

Notwithstanding
any other provisions in this agreement (other than clause 30.2), the liability
of the Vendor hereunder shall be limited in accordance with the provisions of schedule 9.

 

10.          COVENANTS

 

10.1         The Vendor undertakes to and covenants
with the Purchaser that (except with the consent in writing of the Purchaser)
neither it nor any other member of the Vendor’s Group will at any time after
Completion:

 

10.1.1      use or procure or cause or (so far as it
is able) permit the use of any name or names identical or similar to the
Magazine Titles or the Exhibitions or the Domain Names or the Business Names or
any colourable imitation thereof in connection with any activity whatsoever
which competes directly or indirectly with the Business;

 

10.1.2      (except as required by law or any
regulation) disclose or divulge to any person (other than to officers or
employees of the Purchaser whose province it is to know the same) or use
(otherwise than for the benefit of the Purchaser) any Confidential Information.

 

10.2         The Vendor undertakes to and covenants
with the Purchaser that neither it nor any other member of the Vendor’s Group
will for a period of two years after the date of this agreement, either on its
own behalf or jointly with or as agent for any other person, directly or
indirectly:

 

10.2.1      launch, publish, manage or organise any
magazine or event which is directly in competition with any of the Magazine
Titles or the Exhibitions for so long as the same shall continue to be
published or held by any of the Companies or the Subsidiaries;

 

10.2.2      approach, canvass, solicit, engage or
employ or otherwise endeavour to entice away any person who at the Completion
Date or at any time during the period of six months preceding the Completion
Date shall be or shall have been an employee, officer, manager, of any of the
Companies or the Subsidiaries.

 

10.2.3      approach, canvass, solicit, engage or
employ or otherwise endeavour to entice away any person who at the Completion
Date or at any time during the period of six months preceding the Completion
Date shall be or shall have been a consultant sub-contractor or agent of any of
the Companies or the Subsidiaries with a view to the specific knowledge or
skills of such person being used by or for the benefit of any person carrying
on business in competition with the business carried on by any of the Companies
or the Subsidiaries.

 

10.3         Each of the covenants contained in
clauses 10.1 and 10.2 shall constitute an entirely separate and independent
restriction on the Vendor.

 

10.4         Nothing in clause 10.2.1 shall prohibit
the Vendor or any other member of the Vendor’s Group from:

 

10.4.1      continuing to be engaged in the
publishing of CNN Traveller; or

 

18

 

10.4.2      publishing, managing or organising any
magazine or event acquired (whether by way of a share or asset purchase) from
any third party after the date hereof as part of a larger acquisition unless
such magazines and events so acquired shall represent in aggregate more than 30
per cent of the turnover of the business or businesses so acquired in which
event the Vendor shall or shall procure that such other member of the Vendor’s
Group shall within six months of the completion of such acquisition divest
itself of such magazine or event failing which it must, unless the Purchaser
otherwise agrees, cease the publication, management or organisation thereof for
the duration of the relevant covenants.

 

10.5         Nothing in clause 10.2.1 shall prohibit
the Vendor or any other member of the Vendor’s Group from holding shares or
stock quoted or dealt in on a recognised investment exchange (as defined in the
FSMA) so long as not more than five per cent of the issued shares or stock of
any class of any one company is so held.

 

10.6         Nothing in this clause 10 shall prevent
the Vendor or any other member of the Vendor’s Group from:

 

10.6.1      employing any person whose employment
with the Companies or the Subsidiaries is terminated, in each case, after
Completion; or

 

10.6.2      advertising generally for staff or
employing any person who has responded to any such general advertisement; or

 

10.6.3      approaching, canvassing, soliciting or
engaging the services of freelance contributors unless by so engaging their
services such persons are thereby prevented from continuing to offer their
services to those of the Companies and/or the Subsidiaries by which they have
been so engaged prior to the date hereof.

 

10.7         The Vendor agrees and acknowledges that
the restrictions contained in this clause 10 are fair and reasonable and
necessary to assure to the Purchaser the full value and benefit of the Shares
and to protect the goodwill of the Companies and the Subsidiaries but, in the
event that any such restriction shall be found to be void or unenforceable but
would be valid and effective if some part or parts thereof were deleted, such
restriction shall apply with such deletion as may be necessary to make it valid
and effective.

 

10.8         In the event that, at any time after the
date hereof, one or more persons acting alone or in concert shall acquire more
than 50 per cent of the issued share capital of the Vendor or otherwise gain
control of more than 50 per cent of the voting rights in the Vendor as a result
of which the Vendor ceases to be the ultimate holding company of the Vendor’s
Group, then for the purposes of this clause 10 only from the happening of such
event and thereafter the expression “the Vendor’s Group” shall mean the Vendor’s
Group as defined in clause 1.1 as the same existed immediately prior to the
happening of such event.

 

11.          INTERIM AND
TRANSITIONAL ARRANGEMENTS

 

From
the date of this agreement, the Vendor and the Purchaser shall comply with the
provisions of schedule 14 in relation to the matters dealt with therein.

 

19

 

12.          USE
OF NAMES

 

12.1         As soon as reasonably practicable but in
any event, within three months following Completion, the Purchaser shall
procure that any member of the Purchaser’s Group (including for the avoidance
of doubt the Companies and the Subsidiaries) whose name incorporates the words “Highbury”
or “Highbury House” shall pass a special resolution to change the name of any
such member to one not containing the words “Highbury” or “Highbury House”.

 

12.2         The Purchaser shall and shall procure
that each member of the Purchaser’s Group (including for the avoidance of doubt
the Companies and the Subsidiaries) shall as soon as reasonably practicable
but, in any event, within six months after the Completion Date but subject to
clause 12.3 cease to use in any way or display any trademarks or names
consisting of or incorporating the words “Highbury” or “Highbury House”, or any
colourable imitations
thereof and/or any trademark, name or logo used by any member of the Vendor’s
Group (excluding for the avoidance of doubt the Trademarks and Domain Names,
and save as provided in clause 12.4 or 12.5) (together called the “Marks”) including, without prejudice to
the foregoing, the use of the Marks on any building owned or used by the
Companies or the Subsidiaries, any drawings produced by any of the Companies or
the Subsidiaries and on any letterhead, other stationery and any electronic
media, including email addresses, web-sites and domain names.  For the avoidance of doubt nothing in this
agreement shall or shall be deemed to transfer to the Purchaser or the
Companies or the Subsidiaries any right, title or interest in the Marks.

 

12.3         Each member of the Purchaser’s Group
(including the Subsidiaries and Companies) shall not be prevented from
retaining copies of Past Issues or other historical materials consisting of or
incorporating the Marks in whatever form or media for the purposes of supplying
copies of such Past Issues or other historical materials in whole or in part or
for the purposes of holding archived materials in whatever form or media to the
extent such materials were created prior to the Completion Date and consist of
or incorporate the Marks.

 

12.4         The Vendor shall and shall procure that:

 

12.4.1      as soon as reasonably practicable but, in
any event, within three months following the Completion Date any member of the
Vendor’s Group whose name contains the word “Columbus” shall pass a special
resolution to change the name of any such member to one not containing the word
“Columbus”; and

 

12.4.2      as soon as reasonably practicable but, in
any event, within a period of six months following the Completion Date each
member of the Vendor’s Group shall cease to use in any way or display a name
consisting of or incorporating the word “Columbus” or any colourable imitation
thereof save that no member of the Vendor’s Group shall be prevented from
retaining copies of Past Issues consisting of or incorporating the word “Columbus”
in whatever form or media for the purposes of supplying copies of such Past
Issues, in whole or in part, or for the purposes of holding archived materials
in whatever form or media to the extent such materials were created prior to
the Completion Date and consist of or incorporate the word “Columbus”.

 

20

 

12.5         As soon as reasonably practicable but, in
any event, within a period of three months following the Completion Date, the
Vendor shall and shall procure that:

 

12.5.1      any member of the Vendor’s Group whose
name contains the word “Nexus” shall pass a special resolution to change the
name of any such member to one not containing the word “Nexus”; and

 

12.5.2      each member of the Vendor’s Group shall
cease to use in any way or display a name constituting of or incorporating the
word “Nexus” or any colourable imitation thereof (“Nexus Marks”) save:

 

12.5.2.1   as soon as reasonably practicable but, in
any event within, a period of six months following the Completion Date during
which period members of the Vendor’s Group shall be permitted to use the Nexus
Marks in any drawings, exhibition brochures, promotional material and on any
electronic media which has been produced prior to the Completion Date and which
is used in the ordinary course of business; and

 

12.5.2.2   that no member of the Vendor’s Group
shall be prevented from retaining copies of Past Issues consisting of or
incorporating the Nexus Marks in whatever form or media for the purposes of
supplying copies of such Past Issues in whole or in part or for the purposes of
holding archived materials in whatever form or media to the extent that such
materials were created prior to the Completion Date and consist of or
incorporate the Nexus Marks.

 

12.6         Following the period referred to in
clause 12.2 above, the Purchaser shall procure if so requested by the Vendor
that any member of the Purchaser’s Group (as specified by the Vendor) shall
enter into the Highbury Brand Assignment.

 

12.7         Following the periods referred to in
clauses 12.4 and 12.5 above, the Vendor shall procure, if so requested by the
Purchaser, that any member of the Vendor’s Group (as specified by the
Purchaser) shall enter into the Nexus & Columbus Brand Assignment.

 

13.          TAXATION

 

The provisions of schedule 3 shall apply with
respect to the matters contained or referred to therein.

 

14.          PROPERTY
MATTERS

 

14.1         The Purchaser agrees to permit Colin
Walker or any other employee of Highbury Nexus Special Interests Limited who
replaces Colin Walker to occupy, free of charge the premises at Carrington
Business Park, Manchester Road, Carrington Urmston, Manchester M31 4DD until
the expiry or termination of the licence under which this property is occupied.

 

14.2         The Vendor covenants with the Purchaser
that it will with effect from the date of this agreement until the earliest of
the expiry of any Target Group member’s liability under an
authorised guarantee
agreement entered into in connection with a lawful assignment of or the expiry
or sooner determination of the term of the leases referred to in paragraphs 14.2.1
and 14.2.2 below pay the rents reserved by and observe and

 

21

 

perform the covenants and
conditions on the part of the tenant or any surety contained in such leases and
any documents supplemental thereto and indemnify and keep indemnified the
Purchaser and any Target Group member against any Losses (which for the
avoidance of doubt, shall include any tax incurred by any Target Group member
in connection with such assignment notwithstanding that any such assignment
occurs after the Completion Date) that may be incurred as a result of any
future non-payment, breach, non-performance or non-observance of such covenants
and conditions howsoever arising (save due to the act neglect or default of any
Target Group member):

 

14.2.1      Lease of ground floor offices, Anne
Boleyn House, Ewell Road, Cheam, Surrey (“Anne
Boleyn House Property”) dated 16 July 2001 and made between (1)
Reed Business Information Limited and (2) Cumulus Business Media Limited and
(3) the Vendor (“Cheam Lease”);
and

 

14.2.2      Lease of 47 Brunswick Place and 2, 4 and
6 Baches Street, London N1 (“Jordan House
Property”) dated 11 November 1999 and made between (1) Manning
Properties (North London) Limited (2) Columbus Publishing Limited and (3) Columbus
Group Plc (“Jordan House Lease”).

 

14.3         The Purchaser acknowledges that Highbury
Columbus Travel Publishing Limited intends to enter into an agreement for the
assignment of the Cheam Lease to the Vendor or a member of the Vendor’s Group
in the agreed form (“Cheam Agreement for
Assignment”) and that such agreement is stated to be conditional
upon obtaining the landlord’s consent and the Vendor covenants to enter into or
procure that a member of the Vendor’s Group enters into the Cheam Agreement for
Assignment prior to Completion.

 

14.4         The Purchaser covenants with the Vendor
that it will at the Vendor’s cost provide all necessary assistance to the
Vendor in obtaining the consent of the landlord and of any other relevant party
to the assignment of the Cheam Lease to the Vendor or a member of the Vendor’s
Group and will provide forthwith all information lawfully requested by the
landlord pursuant to such application.

 

14.5         Until the assignment of the Cheam Lease
to the Vendor or a member of the Vendor’s Group has been lawfully completed the
Purchaser will hold the Cheam Lease on trust for the Vendor and will permit the
Vendor or a member of the Vendor’s Group nominated by the Vendor to occupy the
Cheam Premises on the terms of the Cheam Agreement for Assignment.

 

14.6         The Purchaser acknowledges that Highbury
Columbus Travel Publishing Limited intends to enter into an agreement for the
assignment of the Jordan House Lease to the Vendor or a member of the Vendor’s
Group in the agreed form (“Jordan House
Agreement for Assignment”) and that such agreement is stated to be
conditional upon obtaining the landlord’s consent and the Vendor covenants to
enter into or procure that a member of the Vendor’s Group enters into the
Jordan House Agreement for Assignment prior to Completion.

 

14.7         The Purchaser covenants with the Vendor
that it will at the Vendor’s cost provide all necessary assistance to the
Vendor in obtaining the consent of the landlord and of any other relevant party
to the assignment of the Jordan House Lease to the Vendor or a member of the
Vendor’s Group and will provide forthwith all information lawfully requested by
the landlord pursuant to such application.

 

22

 

14.8         Until the assignment of the Jordan House
Lease to the Vendor or a member of the Vendor’s Group has been lawfully
completed the Purchaser will hold the Jordan House Lease on trust for the
Vendor and will permit the Vendor or a member of the Vendor’s Group nominated
by the Vendor to occupy the Jordan House Premises on the terms of the Jordan
House Agreement for Assignment.

 

14.9         The Vendor covenants with the Purchaser
that it will at it own cost use all reasonable endeavours (including if
necessary a declaration of the court) to obtain the necessary consents required
to enable the Cheam Lease and the Jordan House Lease to be assigned pursuant to
the Cheam Agreement for Assignment and the Jordan House Agreement for
Assignment and the Vendor will ensure that its solicitors keep the Purchaser’s
solicitors informed at all times of the progress of obtaining the respective
landlords’ consents.

 

14.10       The Vendor undertakes to use all
reasonable endeavours to obtain as soon as practicable and, if possible, by
Completion a form DS1 from the Governor and Company of the Bank of Scotland (“BoS”) in respect of the charge granted by
Nexus Media Communications Limited on 31 December 1997 to BoS in respect
of Media House which was released on 17 March 2000.  If such from DS1 is not obtained by
Completion, the Vendor shall continue to use all reasonable endeavours to
obtain it as soon as possible after Completion.

 

15.          FURTHER
ASSURANCE AND ATTORNEY

 

15.1         On and after Completion, the Vendor
shall, at the reasonable request of the Purchaser, do and execute or procure to
be done and executed all such acts, deeds, documents and things as may
reasonably be necessary to give effect to this agreement.

 

15.2         On Completion, the Vendor shall execute
or procure the execution under seal or as a deed of a power of attorney (in a form
acceptable to the Purchaser, acting reasonably) in favour of the Purchaser or
such person as may be nominated by the Purchaser generally in respect of the
Shares and in particular to enable the Purchaser (or its nominee) to attend and
vote at general meetings of the Companies during the period prior to the name
of the Purchaser (or its nominee) being entered on the register of members of
the Companies in respect of the Shares.

 

16.          ANNOUNCEMENTS

 

No announcement, communication or circular (other than
the Circular) concerning this agreement shall be made (whether before or after
the Completion Date) by or on behalf of the parties hereto without the prior
approval of the other or others (such approval not to be unreasonably withheld
or delayed) save for such announcements as may be required by the law of any
relevant jurisdiction and/or by the UK Listing Authority and/or the London
Stock Exchange and/or the Securities Exchange Commission and/or the Panel on
Takeovers and Mergers or any governmental or regulatory authority or body in
any jurisdiction to which the relevant party submits or is subject provided
that each party must in each case consult with the other so far as practicable
and take account of the reasonable requests of the other party prior to making
any such announcements.

 

17.          COSTS

 

17.1         Each of the parties shall bear and pay
its own legal, accountancy actuarial and other fees and expenses incurred in
and incidental to the preparation and implementation of

 

23

 

this agreement and of all
other documents in the agreed form.  For
the avoidance of doubt, the Vendor shall bear and pay all fees and costs
associated with the preparation of (i) the Statutory Accounts and the EBITA Statement,
and (ii) the Vendor Due Diligence Report (including any costs charged by the
Vendor’s Accountants in connection with the discussion of such report with the
Purchaser).

 

17.2         The Purchaser shall pay all stamp duty
and other transfer duties and registration fees applicable to any document to
which it is a party and which arise as a result or in consequence of this
agreement.

 

17.3         Save as provided in clause 3.4 the
Purchaser shall pay the costs (including fees) charged by the accountants
instructed by it in the preparation and audit of the US GAAP Accounts, provided
that the Vendor shall bear 12 per cent of any such costs and fees up to a
maximum of £50,000.

 

18.          SUCCESSORS
AND ASSIGNMENT

 

18.1         This agreement shall be binding on and
enure for the benefit of each party’s successors and personal representatives
but shall not be assignable without the written consent of the other except
that each of the Vendor and the Purchaser may at any time following Completion
assign its rights (but not its obligations) under this agreement to any company
of which it is a subsidiary or of which it is a holding company or any
subsidiary of its holding company (“Permitted
Assignee”) without the consent of the Vendor or the Purchaser (as
applicable) provided that such arrangements shall not increase the liability of
the other party under this agreement and provided further that should the
Permitted Assignee cease to be a member of either the Purchaser’s Group or the
Vendor’s Group (as applicable) the Purchaser or the Vendor (as the case may be)
shall procure that the Permitted Assignee reassigns its rights under the
agreement to another member of either the Purchaser’s Group or the Vendor’s
Group (as applicable).  In the event of
any assignment under this clause, references to the Vendor or the Purchaser
(other than in this clause) shall be construed as references to the holder for
the time being of the Vendor’s or the Purchaser’s rights under this agreement.

 

18.2         The Purchaser may at any time before
Completion assign its rights and obligations under this agreement to a
Permitted Assignee by notice to (and without the consent of) the Vendor,
provided that in the event of such assignment the Purchaser shall remain
jointly and severally liable for the obligations of such assignee at
Completion.

 

18.3         Except as otherwise expressly provided,
all rights and benefits under this agreement are personal to the parties and
may not be assigned at law or in equity without the prior written consent of
the other party.

 

19.          ENTIRE
AGREEMENT

 

19.1         This agreement (including the schedules
to it) and any documents in the agreed form, the Confidentiality Agreement and
the Disclosure Letter (“Acquisition Documents”)
constitute the entire agreement between the parties with respect to the subject
matter of this agreement.

 

19.2         Except for any misrepresentation or
breach of warranty which constitutes fraud:

 

19.2.1      the Acquisition Documents supersede and
extinguish all previous agreements between the parties relating to the subject
matter thereof (including the letter

 

24

 

dated 26 January 2005
between the Vendor and the Purchaser) and any representations and/or warranties
previously given or made other than those contained in the Acquisition
Documents;

 

19.2.2      each party acknowledges to the other (and
shall execute the Acquisition Documents in reliance on such acknowledgement)
that it has not been induced to enter into any such documents by nor relied on
any representation or warranty other than the representations and/or warranties
contained in such documents;

 

19.2.3      each party hereby irrevocably and
unconditionally waives any right it may have to claim damages in respect of or
to rescind this agreement or any of the other Acquisition Documents by reason
of any misrepresentation whatsoever or by reason of any warranty not set forth
in any of the Acquisition Documents; and

 

19.2.4      except for the Purchaser’s remedies under
clause 3.2,4.3 and 8.8, the only remedy available for breach of any of the
Warranties or for breach of any of the warranties set out in the any of the
other Acquisition Documents shall be damages for breach of contract under the
terms of the relevant document and rescission shall not be available as a
remedy for any breach of this agreement.

 

19.3         Each of the parties acknowledges and
agrees for the purposes of the Misrepresentation Act 1967 and the Unfair
Contract Terms Act 1977 that the provisions of this clause 19 are
reasonable.

 

20.          CONFIDENTIALITY

 

The Purchaser undertakes to and covenants with the
Vendor that (except with the consent in writing of the Vendor) neither it nor
any other member of the Purchaser’s Group will at any time after Completion
(except as required by law or any regulation of any relevant stock exchange or
other governmental or regulatory authority or body in any jurisdiction)
disclose or divulge to any person (other than to officers or employees of the
Vendor whose province it is to know the same) or use any Retained Confidential
Information which is within or has come to its knowledge.  The Vendor agrees that the Confidentiality
Agreement shall be terminated in all respects with effect from Completion.

 

21.          TIME FOR
PERFORMANCE

 

Time shall not be of the essence of this agreement but
following failure by any party to comply with any provision of this agreement
time may be made of the essence by any other party giving to the party in
default two Business Days’ notice to that effect.

 

22.          VARIATIONS

 

No variation of this agreement or any of the documents
in the agreed form shall be valid unless it is in writing and signed by or on
behalf of each of the parties to this agreement.

 

23.          WAIVER

 

No waiver by either party of any breach or non-fulfilment
by the other party of any provisions of this agreement shall be deemed to be a
waiver of any subsequent or other breach of that or any other provision and no
failure to exercise or delay in exercising any right or remedy under

 

25

 

this agreement shall constitute a waiver thereof.  No single or partial exercise of any right or
remedy under this agreement shall preclude or restrict the further exercise of
any such right or remedy.  The rights and
remedies of each party provided in this agreement are cumulative and not
exclusive of any rights and remedies provided by law.

 

24.          AGREEMENT
CONTINUES IN FORCE

 

This agreement shall remain in full force and effect
so far as concerns any matter remaining to be performed at Completion even
though Completion shall have taken place.

 

25.          SEVERABILITY

 

The invalidity, illegality or unenforceability of any
provisions of this agreement shall not affect the continuation in force of the
remainder of this agreement.

 

26.          NOTICES

 

26.1         Any notice to be given pursuant to the
terms of this agreement shall be given in writing to the party due to receive
such notice at the address set out in clause 26.2 or such other address as may
have been notified to the other parties in accordance with this clause 26.  Notice shall be delivered personally or sent
by first class prepaid recorded delivery or registered post (airmail if
overseas) or by facsimile transmission and shall be deemed to be given in the
case of delivery personally on delivery and in the case of posting (in the
absence of evidence of earlier receipt) 48 hours after posting (six days if
sent by airmail) and in the case of facsimile transmission on completion of the
transmission provided that the sender shall have received printed confirmation
of transmission.

 

26.2         For the purposes of clause 26.1, the
address of each of the parties is as follows:

 

26.2.1      Vendor:

 

Highbury House Communications
plc

Jordan House

47 Brunswick Place

London N1 6EB

Attention: Company Secretary

Fax Number: +44 (0)20 7608 6605

 

26.2.2      Purchaser:

 

Ergo Science Corporation

19 West 44th Street,

Suite 1405,

New York,

NY 10036,

USA

Attention: Ling Kwok

Fax Number: +1 212 391 5288

 

with a copy to:

 

Vinson & Elkins R.L.L.P.

CityPoint (Level 33)

 

26

 

One Ropemaker Street

London EC2Y 9UE

Attention: Rob Patterson

Fax Number: +44 (0) 20 7065 6001

 

27.          COUNTERPARTS

 

This agreement may be executed in any number of
counterparts each of which when executed by one or more of the parties hereto
shall constitute an original but all of which shall constitute one and the same
instrument.

 

28.          THIRD PARTY
RIGHTS

 

A person who is not party to this agreement shall have
no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any
term of this agreement, except for (i) the Companies, the Subsidiaries and
their respective officers and employees pursuant to clause 8.5; (ii) the
Companies and the Subsidiaries pursuant to clause 8.14, clause 14.2 and
paragraph 34 of schedule 14.  This
clause does not affect any right or remedy of any person which exists or is
available otherwise than pursuant to that Act.

 

29.          SERVICE OF
PROCESS

 

The Purchaser irrevocably appoints Stirling Square
Capital Partners (Attention: Ling Kwok Ergo Science Corporation) at 4th Floor,
Liscartan House, 127 Sloane Street, London SW1X 9AX, England (Facsimile 00 44
20 7808 4785) as its agent for services of notices and/or proceedings in
relation to any matter arising out of or in connection with this agreement and
service on such agent shall be deemed to be service on the Purchaser.

 

30.          CAPACITY

 

30.1         Each of the parties warrants to the other
that it has full power and authority and has obtained all necessary consents
(including, where relevant, shareholder consent) (save that the Purchaser
acknowledges and agrees that the Vendor requires the sale of the Target Group
members to be approved by the members of the Vendor in general meeting) to
enter into and perform the obligations expressed to be assumed by it under this
agreement (and any other agreement or arrangement required to be entered into by
it in connection with this agreement), that the obligations expressed to be
assumed by it hereunder are legal, valid and binding and enforceable against it
in accordance with their terms and that the execution, delivery and performance
by it of this agreement and each such other agreement and arrangement will not:

 

30.1.1      result in a breach of, or constitute a
default under, any agreement or arrangement to which it is a party or by which
it is bound or under its constitutive documents; or

 

30.1.2      result in a breach of any law or order,
judgment or decree of any court, governmental agency or regulatory body to
which it is a party or by which it is bound.

 

30.2         Clause 9 and schedule 9 shall not
apply to any Claim arising under or in connection with clause 30.1.

 

27

 

31.          GOVERNING LAW
AND JURISDICTION

 

31.1         This agreement shall be governed by and
construed in accordance with the laws of England.

 

31.2         The parties irrevocably agree that the
courts of England shall have exclusive jurisdiction to settle any dispute which
may arise out of or in connection with this agreement and that accordingly, any
suit, action or proceedings arising out of or in connection with this agreement
shall be brought in such courts.

 

IN WITNESS of which the parties or their duly authorised
representatives have executed this agreement as a deed.

 

28

 

SCHEDULE 1

 

Part 1

 

The Companies

 

	
  Highbury Business Communications Limited

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Registered
  number:

  	
   

  	
  04189911

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Date
  of incorporation:

  	
   

  	
  29 March 2001

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Place
  of incorporation:

  	
   

  	
  England
  and Wales

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Registered
  office:

  	
   

  	
  Jordan
  House

  47 Brunswick Place

  London N1 6EB

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Authorised
  share capital:

  	
   

  	
  1,000
  ordinary A shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Issued
  share capital:

  	
   

  	
  £1,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Number of shares:

  	
   

  	
  1000
  ordinary A shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Amount paid up:

  	
   

  	
  Fully

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Shareholders:

  	
   

  	
  Highbury
  House Communications plc - 1000 ordinary A shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Directors:

  	
   

  	
  Mark
  Simpson

  Littleton House

  Blandford St Mary

  Blandford Forum

  Dorset

  DT11 9NA

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Owen
  Davies

  Little Oaks

  2b Drax Avenue

  Wimbledon

  SW20 0EH

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Secretary:

  	
   

  	
  Hafeez
  Kaiyumali Anjarwalla

  215 Wandsworth Bridge Road

  London SW6 2TT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Accounting
  reference date:

  	
   

  	
  31
  December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Auditors:

  	
   

  	
  Deloitte
  & Touche

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Tax
  residence:

  	
   

  	
  United
  Kingdom

  

 

29

 

	
  13.

  	
   

  	
  Charges:

  	
   

  	
  None

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Highbury Business Limited

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Registered
  number:

  	
   

  	
  03442147

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Date
  of incorporation:

  	
   

  	
  25 September 1997

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Place
  of incorporation:

  	
   

  	
  England
  and Wales

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Registered
  office:

  	
   

  	
  Jordan
  House

  47 Brunswick Place

  London N1 6EB

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Authorised
  share capital:

  	
   

  	
  4,980
  ‘A’ ordinary shares of £1 each,

  410 ‘B’ ordinary shares of £1 each and

  410 ‘C’ ordinary shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Issued
  share capital:

  	
   

  	
  £3,300

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Number of shares:

  	
   

  	
  3,300
  ‘A’ ordinary shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Amount paid up:

  	
   

  	
  Fully

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Shareholders:

  	
   

  	
  Highbury
  House Communications plc - 3,300 ‘A’ ordinary shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Directors:

  	
   

  	
  Mark
  Simpson

  Littleton House

  Blandford St Mary

  Blandford Forum

  Dorset

  DT11 9NA

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Owen
  Davies

  Little Oaks

  2b Drax Avenue

  Wimbledon

  SW20 0EH

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Secretary:

  	
   

  	
  Hafeez
  Kaiyumali Anjarwalla

  215 Wandsworth Bridge Road

  London SW6 2TT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Accounting
  reference date:

  	
   

  	
  31
  December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Auditors:

  	
   

  	
  Deloitte
  & Touche

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Tax
  residence:

  	
   

  	
  United
  Kingdom

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Charges:

  	
   

  	
  None

  

 

30

 

	
  Nexus Media Communications Limited

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Registered
  number:

  	
   

  	
  2785570

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Date
  of incorporation:

  	
   

  	
  1 February 1993

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Place
  of incorporation:

  	
   

  	
  England
  and Wales

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Registered
  office:

  	
   

  	
  Jordan
  House

  47 Brunswick Place

  London N1 6EB

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Authorised
  share capital:

  	
   

  	
  500,000
  ordinary shares of £1 each

  2,000,000 ordinary ‘A’ shares of £1 each and

  7,000,000 preference shares of £0.01 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Issued
  share capital:

  	
   

  	
  £2,570,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Number of shares:

  	
   

  	
  500,000
  ordinary shares of £1 each

  2,000,000 ordinary ‘A’ shares of £1 each and

  7,000,000 preference shares of £0.01 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Amount paid up:

  	
   

  	
  Fully

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Shareholders:

  	
   

  	
  Highbury
  House Communications plc - 500,000 ordinary shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  2,000,000
  ordinary ‘A’ shares of £1 each; and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  7,000,000
  preference shares of £0.01 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Directors:

  	
   

  	
  Mark
  Simpson

  Littleton House

  Blandford St Mary

  Blandford Forum

  Dorset

  DT11 9NA

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Owen
  Davies

  Little Oaks

  2b Drax Avenue

  Wimbledon

  SW20 0EH

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Secretary:

  	
   

  	
  Hafeez
  Kaiyumali Anjarwalla

  215 Wandsworth Bridge Road

  London SW6 2TT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Accounting
  reference date:

  	
   

  	
  31
  December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Auditors:

  	
   

  	
  Deloitte
  & Touche

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Tax
  residence:

  	
   

  	
  United
  Kingdom

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Charges:

  	
   

  	
  Debenture in
  favour of Barclays Bank plc

  

 

31

 

	
  Highbury Columbus Travel Publishing Limited

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Registered
  number:

  	
   

  	
  1993193

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Date
  of incorporation:

  	
   

  	
  27 February 1986

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Place
  of incorporation:

  	
   

  	
  England
  and Wales

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Registered
  office:

  	
   

  	
  Jordan
  House

  47 Brunswick Place

  London N1 6EB

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Authorised
  share capital:

  	
   

  	
  50,000
  ordinary shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Issued
  share capital:

  	
   

  	
  £50,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Number of shares:

  	
   

  	
  50,000
  ordinary shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Amount paid up:

  	
   

  	
  Fully

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Shareholders:

  	
   

  	
  Columbus
  Holdings Limited - 50,000 ordinary shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Directors:

  	
   

  	
  Mark
  Simpson

  Littleton House

  Blandford St Mary

  Blandford Forum

  Dorset

  DT11 9NA

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Owen
  Davies

  Little Oaks

  2b Drax Avenue

  Wimbledon

  SW20 0EH

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Secretary:

  	
   

  	
  Hafeez
  Kaiyumali Anjarwalla

  215 Wandsworth Bridge Road

  London SW6 2TT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Accounting
  reference date:

  	
   

  	
  31
  December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Auditors:

  	
   

  	
  Deloitte
  & Touche

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Tax
  residence:

  	
   

  	
  United
  Kingdom

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Charges:

  	
   

  	
  Security
  Agreement in favour of Barclays Bank PLC

  

 

32

 

	
  Highbury-Harpers Limited

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Registered
  number:

  	
   

  	
  687138

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Date
  of incorporation:

  	
   

  	
  21 March 1961

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Place
  of incorporation:

  	
   

  	
  England
  and Wales

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Registered
  office:

  	
   

  	
  Jordan
  House

  47 Brunswick Place

  London N1 6EB

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Authorised
  share capital:

  	
   

  	
  24,000
  ordinary shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Issued
  share capital:

  	
   

  	
  £19,500

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Number of shares:

  	
   

  	
  19,500
  ordinary shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Amount paid up:

  	
   

  	
  Fully

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Shareholders:

  	
   

  	
  S.
  Stracker (Holdings) Limited - 19,500 ordinary shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Directors:

  	
   

  	
  Mark
  Simpson

  Littleton House

  Blandford St Mary

  Blandford Forum

  Dorset

  DT11 9NA

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Owen
  Davies

  Little Oaks

  2b Drax Avenue

  Wimbledon

  SW20 0EH

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Secretary:

  	
   

  	
  Hafeez
  Kaiyumali Anjarwalla

  215 Wandsworth Bridge Road

  London

  SW6 2TT

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Accounting
  reference date:

  	
   

  	
  31
  December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Auditors:

  	
   

  	
  Deloitte
  & Touche

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Tax
  residence:

  	
   

  	
  United
  Kingdom

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Charges

  	
   

  	
  Debenture
  in favour of Barclays Bank plc

  

 

33

 

Part 2

 

The Subsidiaries

 

	
  The International Wine and Spirit
  Competition Limited

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Registered number:

  	
   

  	
  720550

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Date of
  incorporation:

  	
   

  	
  4
  April 1962

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Place of
  incorporation:

  	
   

  	
  England and
  Wales

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Registered
  office:

  	
   

  	
  Jordan House

  
	
   

  	
   

  	
   

  	
   

  	
  47 Brunswick
  Place

  
	
   

  	
   

  	
   

  	
   

  	
  London N1
  6EB

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Authorised
  share capital:

  	
   

  	
  £5,000
  divided into 5,000 ordinary shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Issued share
  capital:

  	
   

  	
  £5,000
  divided into 5,000 ordinary shares of £1 each (all fully paid up)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Shareholders:

  	
   

  	
  Highbury-Harpers
  Limited - 5,000 ordinary shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Directors:

  	
   

  	
  Peter Duff

  
	
   

  	
   

  	
   

  	
   

  	
  The Right
  Honourable Viscount John

  
	
   

  	
   

  	
   

  	
   

  	
  Archibald
  Thurso

  
	
   

  	
   

  	
   

  	
   

  	
  David
  Timothy Wrigley MW

  
	
   

  	
   

  	
   

  	
   

  	
  Anthony
  Salter

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Secretary

  	
   

  	
  Hafeez Kaiyumali
  Anjarwalla

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Accounts
  reference date:

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Auditors:

  	
   

  	
  Deloitte &
  Touche

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Tax
  residence:

  	
   

  	
  United
  Kingdom

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Charges:

  	
   

  	
  None

  

 

	
  Highbury-Nexus Limited

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Registered number:

  	
   

  	
  2970942

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Date of
  incorporation:

  	
   

  	
  20
  September 1994

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Place of
  incorporation

  	
   

  	
  England and
  Wales

  

 

34

 

	
  4.

  	
   

  	
  Registered
  office:

  	
   

  	
  Jordan House

  
	
   

  	
   

  	
   

  	
   

  	
  47 Brunswick
  Place

  
	
   

  	
   

  	
   

  	
   

  	
  London N1
  6EB

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Authorised share
  capital:

  	
   

  	
  £100 divided
  into 100 ordinary shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Issued share
  capital:

  	
   

  	
  £100 divided
  into 100 ordinary shares of £1 each (all fully paid up)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Shareholders:

  	
   

  	
  Nexus Media
  Communications Limited - 100 ordinary shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Directors:

  	
   

  	
  Mark Simpson

  
	
   

  	
   

  	
   

  	
   

  	
  Owen Davies

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Secretary:

  	
   

  	
  Hafeez
  Kaiyumali Anjarwalla

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Accounts
  reference date:

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Auditors:

  	
   

  	
  Deloitte &
  Touche

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Tax
  residence:

  	
   

  	
  United
  Kingdom

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Charges:

  	
   

  	
  Security
  document in favour of Barclays Bank plc

  

 

	
  Highbury Nexus Media Limited

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Registered number:

  	
   

  	
  2703051

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Date of
  incorporation:

  	
   

  	
  2
  April 1992

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Place of
  incorporation:

  	
   

  	
  England and
  Wales

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Registered
  office:

  	
   

  	
  Jordan House

  
	
   

  	
   

  	
   

  	
   

  	
  47 Brunswick
  Place

  
	
   

  	
   

  	
   

  	
   

  	
  London N1
  6EB

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Authorised
  share capital:

  	
   

  	
  £1,000,000
  divided into 1,000,000 ordinary shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Issued share
  capital:

  	
   

  	
  £1,000,000
  divided into 1,000,000 ordinary shares of £1 each (all fully paid up)

  

 

35

 

	
  7.

  	
   

  	
  Shareholders

  	
   

  	
  Highbury WV
  (Holdings) Limited(1) - 1,000 ordinary shares of £1 each

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Directors:

  	
   

  	
  Mark Simpson

  
	
   

  	
   

  	
   

  	
   

  	
  Owen Davies

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Secretary:

  	
   

  	
  Hafeez
  Kaiyumali Anjarwalla

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Accounts
  reference date:

  	
   

  	
  31 December

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Auditors:

  	
   

  	
  Deloitte &
  Touche

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Tax
  residence:

  	
   

  	
  United
  Kingdom

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Charges:

  	
   

  	
  Debenture in
  favour of Barclays Bank plc

  

 

1              The beneficial title to
the whole of the issued share capital of this company was transferred on 12
January 2005 to Nexus Media Communications Limited.  Upon stamping of the stock transfer form in
respect of this transfer, the legal title to the issued share capital of this
company will vest in Nexus Media Communications Limited.

 

36

 

SCHEDULE 2

 

The Warranties

 

Part 1

 

General

 

1.             CAPACITY
AND OWNERSHIP OF SHARES

 

1.1           Schedule 1 is true and
accurate and the shareholders of each Target Group member listed in schedule 1
are the legal and beneficial owners of the shares set out against their
names.  Each such shareholder is a member
of the Vendor’s Group.

 

1.2           The shares detailed at
paragraph 6 of part 1 in schedule 1 or paragraph 6 of part 2 of schedule 1
(as the case may be) in relation to each Target Group member constitute the
whole of the allotted and issued share capital of such Target Group member and
have been properly allotted and issued fully paid.

 

1.3           There is no Encumbrance on,
over or affecting the Shares or the issued shares in any of the Subsidiaries or
any unissued shares in the capital of any Target Group member.  No member of the Vendor’s Group is a party to
or has entered into any agreement or commitment to give or create any such
Encumbrance on, over or affecting the Shares or the issued shares in any of the
Subsidiaries or any unissued Shares in the capital of any Target Group member.

 

1.4           Other than this agreement,
there is no agreement, arrangement or obligation requiring the creation, allotment,
issue, transfer, redemption or repayment of, or the grant to any person of the
right (whether exercisable at a future date and whether conditional or not) to
require the allotment, issue, transfer, redemption or repayment of, any shares
in the capital of, or loan capital of, any Target Group member.

 

1.5           There is no litigation,
arbitration, prosecution, administrative or other legal proceedings or dispute
in existence or so far as the Vendor is aware, threatened against the Vendor in
respect of the Shares or the Vendor’s entitlement to dispose of the Shares or
against any company in respect of the shares held by it in any Subsidiary.

 

2.             ACCOUNTS

 

2.1           The Accounts have been
prepared in accordance with the requirements of the relevant statutes and on a
basis consistent with that adopted in the preparation of the audited accounts
of each Target Group member for each of the last three preceding financial
years of each Target Group member and in accordance with all financial
reporting standards, statements of standard accounting practice and generally
accepted accounting principles and practices in the United Kingdom (as
interpreted as at the Accounts Date) and give a true and fair view of the
assets and liabilities and state of affairs of each Target Group member as at
the Accounts Date and its profits and losses for the relevant period ended on
the Accounts Date.

 

2.2           At Completion, the
Statutory Accounts will have been prepared in accordance with the requirements
of the relevant statutes and on a basis consistent with that adopted in the
preparation of the audited accounts of each Target Group member for each of the
last three preceding financial years of each Target Group member and in
accordance

 

37

 

with all financial reporting standards,
statements of standard accounting practice and generally accepted accounting
principles and practices in the United Kingdom and will give a true and fair
view of the assets and liabilities and state of affairs of each Target Group
member as at 31 December 2004 and their profits and losses for the 12
months ended on 31 December 2004.

 

3.             MANAGEMENT
ACCOUNTS

 

The Management Accounts have been carefully
prepared on a consistent basis and in accordance with the accounting policies
set out in the Accounts and do not materially misstate the profits and losses
of the Target Group as a whole for the nine month period ending on 30 September 2004
and the 12 month period ending on 31 December 2004 respectively.

 

4.             VENDOR DUE DILIGENCE REPORT

 

4.1           So far as the Vendor is
aware:

 

4.1.1        the Vendor Due Diligence
Report contains no factual information that is untrue or inaccurate or
misleading in any material respect;

 

4.1.2        information provided to the
Vendor’s Accountants in connection with their preparation of the Vendor Due
Diligence Report was, when taken as a whole, not misleading;

 

4.1.3        the Forecasts are reasonable
forecasts having regard to the current trading, financial position and what the
Vendor honestly believes to be the reasonable prospects of the Target Group;

 

4.1.4        Appendix 4 of the Vendor Due
Diligence Report has been carefully and prudently prepared.

 

4.2           So far as the Vendor is
aware, the assumptions used for the purposes of the preparation of the
Forecasts are reasonable assumptions having regard to the current trading and
financial position of the Target Group.

 

5.             POSITION
SINCE ACCOUNTS DATE

 

Since
the Accounts Date:

 

5.1           the business of each Target
Group member (including in relation to the acquisition of disposal of any
business or asset (including shares, debentures or securities) or the
assumption or acquisition of any liability or contingent liability) has been
carried on in the ordinary and usual course so as to maintain the same as a
going concern;

 

5.2           there has been no material
adverse change in the financial position of any Target Group member;

 

5.3           no debtor has been released
by any Target Group member on terms that he pays less than the book value of
his debt and no debt owing to any Target Group member has been written off or
has proved or, so far as the Vendor is aware (for the avoidance of doubt,
having made no enquiry of any debtor), is reasonably likely to prove to any
extent irrecoverable;

 

5.4           there has not been any
capitalisation of reserves of any Target Group member and no

 

38

 

Target Group
member has issued or agreed to issue any share or loan capital other than that
issued at the Accounts Date and has not granted or agreed to grant any option
in respect of any loan capital and no Target Group member has repaid any loan
capital in whole or in part nor has it, by reason of any default in its
obligations, become bound to repay prematurely any loan capital or borrowed
monies;

 

5.5           there has been no resolution
of or agreement by the members of any Target Group member or any class thereof
(except as provided in this agreement or with the prior written consent of the
Purchaser);

 

5.6           no Target Group member has
changed its accounting reference period;

 

5.7           no management charge has
been levied against any Target Group member;

 

5.8           no Target Group member has
declared, set aside or paid any dividends or made any distribution with respect
to its shares;

 

5.9           no material change has
occurred in the assets and liabilities of any Target Group member shown in the
relevant Accounts.

 

6.             BUSINESS
NAME

 

No
Target Group member carries on business or sells any product or service under
any name other than its corporate name and the Business Names, Trade Marks,
Magazine Titles, Domain Names, Exhibitions and other trading styles as
disclosed to the Purchaser in the Disclosure Letter.

 

7.             LICENCES
AND CONSENTS

 

Each
Target Group member has obtained all licences, permissions, authorisations and
consents (“Consents”) required to carry on the
Business as it is carried on at the date of this agreement and so far as the
Vendor is aware the Consents are all valid and subsisting.  No Target Group member is in breach in any
material respect of any of the terms and conditions attached to the Consents
and so far as the Vendor is aware (but without having made any enquiry of any
third party) there are no circumstances which indicate that any of such
licences, permissions, authorisations or consents are likely to be revoked or
terminated or not renewed in the ordinary course of events.

 

8.             ASSETS

 

8.1           All the property and assets
which are described and included in the Accounts or which are used exclusively
in connection with the Business are:

 

8.1.1        legally and beneficially owned
by a Target Group member;

 

8.1.2        in the possession of a Target
Group member;

 

8.1.3        adequate for the needs of the
Target Group at Completion and for the continuance of the Business after
Completion;

 

8.1.4        free from all Encumbrances and
there is not any agreement or commitment to give or create, and so far as the
Vendor is aware no claim has been made by any person entitled to any
Encumbrance; and

 

39

 

8.1.5        situated in the United
Kingdom.

 

8.2           None of the assets referred
to in paragraph 8.1 are the subject of any assignment, royalty,  factoring arrangement, leasing or hiring
agreement, hire purchase agreement, or agreement for payment on deferred terms.

 

8.3           The Business as it is
carried on at the date of this agreement does not require the use of any assets
owned or leased by the Vendor (or any member of the Vendor’s Group) or the
provision of any services by the Vendor (or any member of the Vendor’s Group).

 

8.4           Each of the material
machinery and equipment used in the conduct of the Business of any Target Group
member has been maintained in accordance with applicable law and is in
reasonable operating condition (subject to fair wear and tear given the age of
such equipment and assets).

 

9.             DEBTS

 

9.1           No Target Group member is
owed any sums other than trade debts incurred in the ordinary course of
business.

 

9.2           No Target Group member has
factored or discounted or otherwise assigned any debts owing to it.

 

10.                               CREDITORS AND LIABILITIES

 

No Target Group member has creditors or any
other liabilities (including contingent liabilities) other than as disclosed in
the Accounts or trade creditors incurred in the ordinary and proper course of
business since the Accounts Date.

 

11.                               INSURANCE

 

11.1         Copies of all insurance
policies effected by any Target Group member or by any other person in relation
to any Target Group member’s assets or the Business (the “Policies”) are attached to the Disclosure
Letter.  All such insurance policies are
currently in force and effect.

 

11.2         All premiums due on the
Policies have been duly paid and all other conditions of those Policies have
been performed and observed in all material respects.  So far as the Vendor is aware, nothing has
been done or omitted to be done which is likely to render any of the Policies
void or voidable.

 

11.3         There are no claims
outstanding under the Policies and so far as the Vendor is aware, there are no
circumstances which would give rise to any claim under the Policies.

 

12.          RECORDS

 

All the books, registers, ledgers and financial
records of each Target Group member are up-to-date and in its possession and
ownership and have been properly kept and, so far as the Vendor is aware, there
are no material inaccuracies or material discrepancies of any kind contained
therein.

 

40

 

13.          CONFIDENTIAL
INFORMATION

 

13.1         So far as the Vendor is
aware, no Target Group member uses any processes nor is engaged in any
activities which involve the misuse of any confidential information belonging to
any third party or alleged misuse.

 

13.2         The Vendor is not aware of
any actual or alleged misuse by any person of any of the Confidential
Information of any Target Group member.

 

14.          INTELLECTUAL
PROPERTY

 

14.1         The Companies listed in parts 1 and 2 of
schedule 10 are the sole legal and/or beneficial owners and the registered
proprietors as appropriate of all the Trade Marks and Domain Names and material
particulars are set out in schedule 10 of all registered Trade Marks and
Domain Names owned by any Target Group member and such details are correct.

 

14.2         The Vendor warrants that the assignment
of the MOTOR TRADER trade mark with number 687191 has been submitted to the UK
trade mark registry.

 

14.3         The Target Group members, or one of
them, are the legal and/or beneficial owners of (or have appropriate licences,
permissions or consents to use) the Business Intellectual Property (but
excluding the Trade Marks and Domain Names where the provisions of Warranty
14.1 and 14.2 shall apply and excluding the Content Copyright where warranty
14.4 shall apply) and which is material to the Business.

 

14.4         The Target Group members, or one of
them, are either the sole unencumbered legal and beneficial owners of or had a
licence to use the Content Copyright at the time of the relevant publications
in each issue of the Magazine Titles published prior to the Completion Date.

 

14.5         The Target Group members, or one of
them, are the legal and beneficial owners of the Intellectual Property in the
Source Code.

 

14.6         The Business Intellectual Property owned
by any Target Group member is subsisting and enforceable and as far as the
Vendor is aware nothing has been done or not been done as a result of which any
of it has ceased or might cease to be subsisting or enforceable.

 

14.7         Neither the Target Group members nor the
Vendor has received any written notice by any person asserting its moral rights
in relation to the Business Intellectual Property and so far as the Vendor is
aware no moral rights are likely to be asserted which would materially
adversely affect the use of the Business Intellectual Property following the
date of this agreement.

 

14.8         Neither the Target Group members nor the
Vendor has received any written notice of claim that it is in material default
under any Licence.

 

14.9         The Business Intellectual Property is
adequate for the Target Group to be able to continue to operate the Business
following the Completion Date in the same manner as it was operated immediately
prior to the Completion Date.

 

14.10       Neither the Trade Marks nor the Domain
Names are the subject of any pending proceedings for opposition, cancellation,
revocation or rectification and so far as the

 

41

 

Vendor is aware, there are no facts or matters in existence which will
give rise to any such proceedings.

 

14.11       As far as the Vendor is aware, none of
the Business Intellectual Property is currently being infringed by any third
party and so far as the Vendor is aware no third party has threatened any such
infringement.

 

14.12       There are no outstanding written claims
against any Target Group member for infringement of any Intellectual Property
used by it, and no claims have been settled by the giving of any undertakings
which remain in force.

 

14.13       So far as the Vendor is aware the sale
of the Shares to the Purchaser and the performance by the parties of their
obligations under this agreement will not entitle any party to any Licence or
other agreement under which any Target Group member enjoys rights or by which
it is bound to be released from any of that party’s obligations, to change the
terms on which any material Business Intellectual Property is used or held by
the relevant Target Group member or to terminate or vary that party’s rights
under the relevant Licence or other agreement, and will not create or
accelerate any obligation of any Target Group member or cause or require any
Target Group member to lose or dispose of any material Business Intellectual
Property or any interest in any material Business Intellectual Property.

 

14.14       During the last twelve months no
advertiser, subscriber, sponsor or other third party has made any written claim
for breach of contract against any Target Group member or the Vendor in
relation to any Past Issues or Future Issues.

 

14.15       So far as the Vendor is aware neither
the Vendor or a Target Group member has received any written notice in the
twelve months prior to Completion from any person that anything published by
any Target Group member in the Past Issues or Websites contains anything which
is obscene, blasphemous or libellous.

 

14.16       Neither the Vendor nor a Target Group
member has received any written notice or claim that it is in material default
under any contract in respect of Exhibitions held prior to the date hereof.

 

14.17       No Target Group member has received written notice that the use of
venues booked for Future Exhibitions will be cancelled or varied in any way and
the Vendor is not aware of any matter which is likely to lead to the
cancellation or variation of any Target Group member’s use of such venues for
Future Exhibitions.

 

15.          COMPUTER
SYSTEMS

 

15.1         Save to the extent provided in the
Disclosure Letter, the Companies and the Subsidiaries are the owners of the
Computer Systems free from Encumbrances or (as at the Completion Date) have
obtained all necessary rights from third parties to enable them to use the
Computer Systems in the same manner as they were used immediately prior to the
Completion Date.

 

15.2         So far as the Vendor is aware the IT
Support Agreements are valid and binding and no act or omission has occurred
which would, if necessary with the giving of notice or lapse of time,
constitute a breach of any such contract.

 

42

 

15.3         The Target Group has possession or
control of or right of access to the Source Code of all software which is
bespoke to and owned by the Target Group and which forms part of the Computer
Systems.

 

15.4         So far as the Vendor is aware the
Computer Systems:

 

15.4.1      as at the Completion Date are
functioning (and during the twelve months prior to the Completion Date have
functioned) in accordance with their applicable specifications;

 

15.4.2      are not defective in any material
respect and have not been materially defective or materially failed to function
during the last twelve months;

 

15.4.3      do not contain any software virus and
have not within the last twelve months been infected by any software virus or
accessed by any unauthorised person; and

 

15.4.4      have sufficient capacity and performance,
when taken with the transitional services to be provided pursuant to schedule 14
(including the provision of the Listed Software), to meet the business
requirements of the Target Group as the Business is being operated on the
Completion Date without requiring any contribution or input from the resources
of the Vendor’s Group.

 

15.5         So far as the Vendor is aware the Target Group members, or one of them,
have appropriate procedures in place for ensuring the security of the Computer
System and the confidentiality and integrity of all data stored in it.

 

16.          DATA
PROTECTION

 

16.1         Where required to do so under
the Data Protection Act 1998, the Target Group members, or one of them have:

 

16.1.1      notified registrable
particulars under the Data Protection Act 1998 of all personal data held by the
Target Group member in question; and

 

16.1.2      renewed such notifications.

 

16.2         No Target Group member has,
within the twelve months immediately preceding the Completion Date, either
received a written notice from nor, so far as the Vendor is aware, been subject
to enquiries by the Information Commissioner regarding non-compliance or
alleged non-compliance by any Target Group member with any provision of the
Data Protection Act 1998.

 

16.3         So far as the Vendor is aware
no personal data have been transferred outside the European Economic Area in
breach of the Data Protection Act 1998.

 

16.4         So far as the Vendor is aware
other than the Target Group members, or as required under the Data Protection
Act 1998 or any other legislation or legal obligation no other company or
person whether legal or natural has access to or requires access to the
Subscriber Lists.

 

17.          EMPLOYEES

 

17.1         No persons are employed in
the Business other than the Employees named in the

 

43

 

Disclosure Letter.

 

17.2         None of the Employees has
given or received written notice terminating his employment or will be entitled
to give notice as a result of the provisions of this agreement.

 

17.3         The Disclosure Letter includes details of all Employees of each Target
Group member, the particulars of each Employee and the principal terms of their
contract including:

 

17.3.1      their current remuneration (including any benefits and privileges
provided or which each Target Group member or the relevant Subsidiary is bound
to provide);

 

17.3.2      the commencement date on which their continuous service began or is
deemed to have begun;

 

17.3.3      the length of notice necessary to terminate each contract, or if a
fixed term, the expiry date of the fixed term and details of any previous
renewals;

 

17.3.4      the type of contract (whether full or part-time or other); and

 

17.3.5      date of birth.

 

17.4         Copies of all outstanding
contracts for all individuals employed or engaged by any Target Group member
and having a basic annual salary or guaranteed fee in excess of £40,000 are
annexed to the Disclosure Letter.

 

17.5         There is not in existence any
contract of employment with any Employee which cannot be terminated by three
months’ notice or less without giving rise to the making of a payment in lieu
of notice or a claim for damages or compensation (other than a statutory
redundancy payment or statutory compensation for unfair dismissal).

 

17.6         The Disclosure Letter
contains complete and accurate details of any outstanding offer of employment
or engagement made to any individual by any Target Group member, and no
individual has accepted an offer of employment or engagement by any Target
Group member who has not yet started his employment or engagement.

 

17.7         No person now or previously
employed or engaged by any Target Group member has or may in the future have a
right to return to work (whether for reasons connected to secondment or with
maternity, paternity, adoption or other leave, absence by reason of illness or
incapacity or otherwise) or a right to be reinstated or re-engaged by that
company.

 

17.8         There is not outstanding any
agreement or arrangement to which any Target Group member is party for profit
sharing or for payment to any of the Employees of bonuses, commission or
incentive payments.

 

17.9         No Target Group member has
entered into any recognition agreement with a trade union nor has it done any
act which may be construed as recognition, whether under Schedule A1 of
the Trade Union and Labour Relations (Consolidation) Act 1992 as amended, or
otherwise.

 

17.10       There is no agreement,
arrangement, scheme or obligation (whether legal or moral) for the payment of
any pensions, allowances, lump sums or other like benefits on redundancy on
retirement or on death or during periods of sickness or disablement for the
benefit of any of the Employees or for the benefit of dependants of any of the
Employees.

 

17.11       No amounts due to or in respect
of any of the Employees or any past employees of any Target Group member
(including PAYE and national insurance and pension

 

44

 

contributions) are in arrears or unpaid.

 

17.12       No monies or benefits other
than in respect of contractual emoluments are payable to any Employee and there
is not at present a claim or so far as the Vendor is aware, any circumstances
which is likely hereafter to give rise to a claim against any Target Group
member arising out of the employment or termination of employment of any
Employee or former employee for compensation for loss of office or employment
or otherwise and whether under the Employment Rights Act 1996, Race Relations
Act 1976, Equal Pay Act 1970, Sex Discrimination Act 1975, Sex Discrimination
Act 1986, Disability Discrimination Act 1995, Working Time Regulations 1998,
National Minimum Wage Act 1998 and the regulations made under such acts or
regulations or any other act.

 

17.13       Copies of all agreements for
the provision of consultancy services or other services of personnel of or to
any Target Group member and details of the terms applicable to the secondment
to or from any Target Group member of any person are annexed to or (as the case
may be) contained in the Disclosure Letter.

 

17.14       No Target Group member has any
contractual obligation to make any payment on redundancy in excess of the
statutory redundancy payment, and has not operated any discretionary practice
of making any such excess payments.

 

17.15       No Target Group member operates
and is not proposing to introduce any Inland Revenue approved share option
scheme, share incentive scheme, approved profit sharing scheme, enterprise
management incentive scheme, employee share ownership plan or unapproved share
scheme under which share benefits are provided, in respect of any person
employed or engaged, or formerly employed or engaged, by any Target Group
member.  No other company provides any
such scheme or plan in respect of any of the Employees.

 

17.16       There is no actual or
threatened protected disclosure under the Public Interest Disclosure Act 1998.

 

17.17       No Target Group member nor any of its Subsidiaries has incurred
any liability for failure to provide information or to consult with Employees
under any Employment Legislation at any time during the period of 6 months prior
to the date of this Agreement.

 

17.18       No payment
or other benefit agreed to be made or provided to a former director, officer or
Employee or to their dependants in connection with the termination or
suspension of employment or variation of an employment contract is outstanding
as at the date of this Agreement.

 

18.          CONTRACTS

 

18.1         Annexed to the Disclosure
Letter are true, complete and accurate copies of all Material Contracts to
which any Target Group member is a party. 
For these purposes, a “Material
Contract” means any of the following:

 

18.1.1              any agency, distributorship, co-operation, manufacturing, supply
agreement pursuant to which any part of the business of any Target Group member
is carried on (other than any agreement for the supply of electricity, water
and other utility services and contracts for the supply of refreshment machines
to any of the Properties);

 

18.1.2              any agreement between any Target Group member and any member of the
Vendor’s Group;

 

45

 

18.1.3              any agreement entered into by any Target Group member otherwise than
in the ordinary course of business on arm’s length terms;

 

18.1.4              any agreement with any person for the organisation or holding of, or
the reservation of any venue for, any exhibition, conference or awards ceremony
scheduled to take place after 30 June 2005; and

 

18.1.5              any other agreement pursuant to which the revenue or cost to the
relevant Target Group member is reasonably likely to exceed £50,000.

 

18.2         No Target Group member nor
the Vendor has given or received written notice terminating any Material
Contract to which any Target Group member is a party and each Material Contract
to which any Target Group member is a party is valid and binding in accordance
with its terms.

 

18.3         No Target Group member nor,
so far as the Vendor is aware, any party with whom any Target Group member has
entered into any Material Contract is in default in any material respect of any
Material Contract to which any Target Group member is a party, and so far as
the Vendor is aware, there are no circumstances likely to give rise to such a
default.

 

18.4         No Target Group member is
party to any agreement, transaction, obligation or arrangement which the Vendor
is aware will or is reasonably likely to result in a loss to the Target Group
member on completion thereof.

 

19.          TRADING

 

19.1         No Target Group member has
entered into an agreement or arrangement with a customer or supplier (other
than a supplier of utilities) on terms materially different to its standard
terms of business, a copy of which is annexed to the Disclosure Letter.

 

19.2         No Target Group member is
restricted by contract from carrying on its business in the United Kingdom or
any other area or jurisdiction.

 

19.3         No offer or tender is outstanding
which is capable of being converted into an obligation of any Target Group
member by an acceptance or other act of some other person.

 

19.4         During the three years
preceding the date of this agreement there has been no substantial change in
the basis or terms on which any person is prepared to enter into contracts or
do business with any Target Group member and so far as the Vendor is aware no
such change is expected.

 

19.5         No supplier or customer of
any Target Group member has during the 12 months preceding the date of this
agreement ceased or indicated in writing an intention to cease trading with a
Target Group member or to reduce in any material respect its trading or
supplies to a Target Group member, where such cessation of trading is reasonably
likely to have a material adverse impact on the financial performance of the
Target Group.

 

20.          JOINT
VENTURES ETC

 

No Target Group member is:

 

46

 

20.1         a party to any joint venture,
consortium, partnership or profit-sharing arrangement or agreement; or

 

20.2         a member of any partnership,
trade association, society or other group whether formal or informal and
whether or not having a separate legal identity.

 

21.          BORROWINGS

 

No
Target Group member has outstanding:

 

21.1         any Borrowings;

 

21.2         any guarantee, indemnity or
undertaking (whether or not legally binding) in support of the obligations of
any person or to procure the solvency of any person or any similar obligation;
or

 

21.3         any Encumbrance or any obligation
(including a conditional obligation) to create an Encumbrance.

 

22.          LITIGATION,
OFFENCES AND COMPLIANCE WITH STATUTES

 

22.1         Otherwise than as claimant in
the collection of debts arising in the ordinary course of business no Target
Group member is a claimant, defendant or otherwise a party to any litigation,
arbitration or administrative proceedings which are in progress or, so far as
the Vendor is aware, pending or threatened by or against or concerning any
Target Group member or any of its assets. 
No Target Group member is being prosecuted for any criminal offence and
so far as the Vendor is aware no governmental or official investigation or
inquiry concerning the Business or officers of any Target Group member or any
of its assets is in progress or pending and so far as the Vendor is aware,
there are no circumstances which are likely to give rise to any such
proceedings, investigation or inquiry.

 

22.2         No Target Group member nor,
so far as the Vendor is aware, any of its officers or employees (during the
course of their duties in relation to the Business) has committed or omitted to
do any act or thing the commission or omission of which is in contravention of
any statutory obligation or any other law of the United Kingdom giving rise to
any fine, penalty, default proceedings or other liability in relation to the
business or officers of any Target Group member or any of its assets or any
judgment or decision which in any of the aforesaid cases would materially
affect the financial position of the Target Group.

 

23.          SUBSIDIARIES
AND BRANCHES

 

23.1         No Target Group member has in
the last six years had any subsidiary or subsidiary undertaking apart from the
Subsidiaries and has not in the last six years been the subsidiary of any other
company and no Target Group member is the legal or beneficial owner of any
shares of any other company other than the Subsidiaries listed in schedule 1
part 2.

 

23.2         No Target Group member has
any agency, branch or other place of business or permanent establishment
outside the United Kingdom.

 

47

 

24.          ADMINISTRATION

 

24.1         The register of members,
other statutory books and other records of the Target Group members have been
properly kept and are correct and no written notice or written allegation that
any of the same is incorrect or should be rectified has been received.

 

24.2         No Target Group member has
given any power of attorney or any other authority (express, implied or
ostensible) which is still outstanding or effective to any person to enter into
any contract or commitment or do anything on its behalf (other than any
authority of directors or employees to enter into routine trading contracts in
the normal course of their duties).

 

25.          INSOLVENCY

 

25.1         In this part 1, “Insolvency Proceedings” means any formal insolvency
proceedings, whether in or out of court, including proceedings or steps leading
to any form of bankruptcy, liquidation, administration, receivership,
arrangement or scheme with creditors, moratorium, stay or limitation of
creditors’ rights, interim or provisional supervision by a court or court
appointee, winding-up or striking-off.

 

25.2         Insolvency Proceedings have
not been served in relation to any of the Vendor, any Target Group member or
(if applicable) any part of their respective assets or undertaking.

 

25.3         No resolution has been passed
for the compulsory or voluntary winding-up of any Target Group member and, so
far as the Vendor is aware, no petition has been presented or proceedings
issued or proposal made in relation to any Insolvency Proceedings.

 

25.4         No Target Group member is
insolvent, or unable to pay its debts within the meaning of section 123
Insolvency Act 1986, nor has it stopped paying its debts as they fall due.

 

25.5         No distress, distraint, charging
order, guarantee order, execution or other process has been levied or applied
for in respect of the whole or any part of any Target Group member’s property,
assets or undertaking.

 

48

 

Part 2

 

Media House and Dunsfold Park

 

TITLE

 

1.             The Properties
comprise:

 

1.1           all the land and premises
of whatever tenure owned or occupied by any Target Group member in the United
Kingdom ; and

 

1.2           all the estate, interest,
right and title of any Target Group member in respect of any land or premises
in the United Kingdom.

 

2.             The Properties are
occupied or used by any Target Group member in connection with the business
carried on by a Target Group member by right of ownership or under lease or
licence.

 

3.             The Target Group members,
or one of them, are the legal and beneficial owner of the Properties.

 

4.             The information contained
in schedule 6 as to the tenure of the Properties is true and accurate in
all material respects.

 

5.             The Target Group members,
or one of them, have a good title to each of the Properties.

 

6.             All deeds and documents
necessary to prove the title of a Target Group member to the Properties are in
the possession or under the control of the relevant Target Group member and,
where the title to the Properties is registered, the relevant Target Group
member is shown on the register thereof at HM Land Registry as the proprietor
with absolute title.

 

7.             The replies to enquiries
dated 25 November 2004 given by the Vendor in respect Media House are
complete and accurate in all material respects on the date they were given and
would still be complete and accurate in all material respects if the replies
were instead given on Completion.

 

8.             There are no insurance
policies relating to any issue of any Target Group member’s title to the
Properties.

 

ENCUMBRANCES

 

9.             The Properties are not
subject to any liability for the payment of any outgoings other than national
non-domestic rates, water and sewerage services charges and payments to usual
statutory undertakers and insurance premiums and, in the case of any lease or
licence, the rent or licence fee, service charges and any other sums payable by
the tenant or licensee under the terms of that lease or licence.

 

10.           The Properties are not
subject to any agreement or right to acquire the same nor any option, right of
pre-emption or right of first refusal.

 

11.           There is no person who is
in occupation or who has or claims any rights or easements in respect of any of
the Properties or the benefit of any agreement to create any such rights or
easements adversely to the estate, interest, right or title of a Target Group
member therein.

 

49

 

12.           The Properties are free from mortgages, debentures, charges, rent
charges, liens or other encumbrances or matters of an onerous nature which
would affect its value save as referred to in the title documentation to the
Property listed in the Disclosure Letter.

 

PLANNING
MATTERS

 

13.           For the purposes of
paragraph 12 the “Planning Acts” means:

 

13.1         the Town and Country Planning
Act 1990;

 

13.2         the Planning (Listed
Buildings and Conservation Areas) Act 1990;

 

13.3         the Planning (Hazardous
Substances) Act 1990;

 

13.4         the Planning (Consequences
Provisions) Act 1990; and

 

13.5         the Planning and Compensation
Act 1991

 

as the same
are from time to time varied or amended and any other statute or subordinate
legislation relating to planning matters.

 

14.           No Target Group member has
received any written notice that the use of any of the Properties is in breach
of the Planning Acts and is not aware of any breach thereof.

 

15.           No agreements or
undertakings relating to the Properties have been entered into by any Target
Group member or any predecessor in title under the provisions of:

 

15.1         section 18 of the Public
Health Act 1936; or

 

15.2         sections 38 and 278 of the
Highways Act 1980;

 

15.3         section 106 of the Town
and Country Planning Act 1990; or

 

15.4         any similar legislation or
earlier legislation of the same nature

 

(“Statutory Agreements”).

 

16.           No Target Group member has
received any written notice of any planning contravention notices, breach of
condition notices, enforcement notices or stop notices issued by any local
planning authority in respect of the Properties nor of any other enforcement
action taken by any such authority.

 

STATUTORY OBLIGATIONS

 

17.           No Target Group member is
in breach of any applicable statutory and bye-law requirements and the
requirements of any competent authority with respect to the Properties.

 

ADVERSE ORDERS

 

18.           No Target Group member has
received any written notice of any compulsory purchase notices, orders or
resolutions affecting the Properties.

 

19.           No Target Group member has
received any written notice of any closing demolition or clearance orders
enforcement notices or stop notices affecting the Properties.

 

50

 

DISPUTES

 

20.           There exists no dispute
between any Target Group member and the owner or occupier of any adjoining or
neighbouring owner with respect to boundary walls and fences or with respect to
any easement, right or means of access to the Properties.

 

21.           No notices, written
complaints or written requirements have been issued or made (whether formally
or informally) by any competent authority or undertaking exercising statutory
or delegated powers in relation to any of the Properties, the current use of
the Properties or any machinery, plant or equipment in them.

 

INSURANCE

 

22.           Media House is insured in
its full reinstatement value and against third party and public liabilities.

 

23.           All premiums payable in
respect of insurance policies relating to Media House and the insurance rent
relating to the lease of Dunsfold Park which have become due have been duly
paid and there are no circumstances which have arisen which would so far as the
Vendor is aware vitiate or permit the insurers to avoid such policies.

 

LEASEHOLD

 

24.           The relevant Target Group
member has paid the rent and materially observed and materially performed the
covenants on the part of the tenant and the conditions contained in the
Dunsfold Park Lease and the last demand (or receipts for rent if issued) were
unqualified, and such lease is valid and in full force.

 

25.           There are no rent reviews
under the leases of the Properties held by any Target Group member currently in
progress.

 

26.           None of the Properties is
the subject of any lease or licence for the benefit of any person other than a
Target Group member.

 

PREVIOUS PROPERTIES

 

27.           No Target Group member has
existing or contingent liabilities in respect of any property previously
occupied by it or in which it owned or held any interest, including without
limitation, leasehold premises assigned or otherwise disposed of.

 

51

 

Part 3

 

Pensions

 

PENSION
ARRANGEMENTS

 

1.          Other
than the Disclosed Schemes, no Target Group member has any obligations
(whether funded or not)  to make payment
of a contribution towards or other provision of relevant benefits (as defined
in section 612 of the Income and Corporate Taxes Act 1988 (“ICTA”) 
for the benefit of any of its current or former Employees or any of
their dependants.

 

2.          No
undertaking or assurance (whether legally binding or not) has been given by any
Target Group
member to continue or introduce any scheme or arrangement,
or to increase, augment or improve any relevant benefits (including but not
restricted to those provided under the Disclosed Schemes) other than pursuant
to the Disclosed Schemes.

 

ALL DETAILS DISCLOSED

 

3.          Complete
and accurate particulars of the Disclosed Schemes have been disclosed to the
Purchaser including, but not restricted to, copies of:

 

3.1.   current trust
deeds and rules together with subsequent amendments;

 

3.2.   members’
booklets and subsequent announcements to members;

 

3.3.   membership
data including pensionable salaries;

 

3.4.   the most
recent trustees’ annual report and audited accounts; and

 

3.5.   Pension
Schemes Office exempt approval letters.

 

COMPLIANCE

 

4.          The
Disclosed Schemes have exempt approved status under Chapter I of Part XIV
of ICTA or are approved as personal pension schemes for the purposes of Chapter
IV of Part XIV of ICTA and the Vendor is not aware of any grounds on which
such approval could be withdrawn or could cease to apply.

 

5.          There
is no contracting-out certificate in force to cover employments to which the
Disclosed Schemes relate.

 

6.          The
Disclosed Schemes have been operated at all times in accordance with their
governing documents (as lawfully amended from time to time).

 

CONTRIBUTIONS AND OTHER PAYMENTS

 

7.          There
are not in respect of any of the Disclosed Schemes as at the date of Completion
any outstanding contributions, costs (including levies) or expenses payable by
any Target Group
member or the employees or any other outstanding
monetary obligations (including, without limitation actuarial, consultancy,
legal or other fees).

 

52

 

BENEFITS

 

8.          The
retirement benefits payable under each of the Disclosed Schemes consist
exclusively of money-purchase benefits as defined in section 181 of the
Pension Schemes Act 1993.

 

STAKEHOLDER SCHEME

 

9.          In
respect of each stakeholder scheme the Vendors have disclosed to the Purchaser:

 

9.1.       full
particulars, including the liability of each Target Group member to make
current and future contributions to it; and

 

9.2.       a list of
its relevant employees who are members and their respective contribution rates.

 

53

 

SCHEDULE 3

 

Taxation

 

Part 1

 

Definitions
and interpretation

 

1.             In this schedule the following
words and expressions shall (except where the context otherwise requires) have
the following meanings:

 

“Actual Tax Liability” means any liability of any Target
Group member to make a payment of or increased payment of Tax (whether or not
such liability is a primary liability) and whether or not the person so liable
has or may have any right of indemnity or reimbursement (statutory or
otherwise) against any other person;

 

“CAA
1990” means the Capital Allowances Act 1990;

 

“CAA 2001” means the
Capital Allowances Act 2001;

 

“Claim for Tax” means any claim, notice,
demand, assessment, letter or other document issued or any action taken by or
on behalf of any person (including any Target Group member) or Tax
Authority whether before or after the date hereof from which it appears that any Target
Group member has or may have a Tax Liability;

 

“Effective Tax Liability” shall have the meaning given
in paragraph 2 of this part 1;

 

“Event” includes any act, omission, event or transaction and, without
limitation, the receipt or accrual of any income, profit or gain, the
declaration, making or payment of any distribution, membership of or ceasing to
be a member of any group or partnership or any other association, death, any
residence or change in the residence of any person for tax purposes, the expiry
of any period of time and Completion;

 

“FA” followed by a year means the
Finance Act of that year or where there was more than one “FA” followed by a number in brackets a
year shall be construed accordingly;

 

“group relief” means any amount eligible
for relief under sections 402 - 413 of the Taxes Act, advance corporation tax
which is capable of being surrendered under section 240 of the Taxes Act,
any tax refund which is capable of being surrendered under section 102 of
the FA 1989, any relievable tax which is capable of being surrendered pursuant
to regulations made under section 806H of the Taxes Act or utilisation of
any losses pursuant to an election under section 171A of the TCGA;

 

“ITEPA” means the Income
Tax (Earnings and Pensions) Act 2003;

 

“loan
relationship” shall have the same meaning as
in section 81(1) of the FA 1996;

 

“non-availability” means loss, reduction, modification, cancellation, non-availability
or non-availability ab initio;

 

“Post Completion Relief” means a Relief to the extent
that it arises by reference to an Event occurring after Completion;

 

54

 

“Relevant Employment-Related Security” means
any security, or any interest in any security, acquired by any person where the
right or opportunity to acquire the securities or the interest in the
securities was made available by reason of the employment (that expression
having the same meaning which it is given in section 421B of the ITEPA) of
that person or of any other person with any Target Group member;

 

“Relief” means any loss, relief,
allowance, credit deduction, exemption or set-off in each case in respect of
Tax or any right to repayment of Tax;

 

“Representative Member” means the representative
member of the VAT Group of which any Target Group member was a
member prior to Completion;

 

“SDLT” means Stamp Duty Land Tax;

 

“Taxation” or “Tax” means all forms of taxes,
duties, imposts, charges, contributions, withholdings, rates or levies of any
nature whatsoever, whether direct or indirect and whether or not arising as a
result of the loss, withdrawal, setting off or non-availability of any relief,
credit, exemption, allowance, deduction or set-off whether of the United
Kingdom or elsewhere, together with any interest, fine, penalty or surcharge on
the same, including (without limitation), capital gains tax, corporation tax,
customs and excise duties, income tax, inheritance tax, insurance premium tax,
national insurance contributions, stamp duty, stamp duty reserve tax, stamp
duty land tax and value added tax;

 

“Tax Authority” means the Commissioners of
Inland Revenue, the Commissioners of Customs and Excise, or any authority or
body, whether of the United Kingdom or elsewhere and whether national or
otherwise having the power or authority or other function in relation to Tax;

 

“Tax Liability” means any Actual Tax
Liability, Effective Tax Liability or other liability of any Target
Group member which is relevant for the purposes of this schedule;

 

“Tax Statute” means any primary or
secondary statute, instrument, enactment, order, law, by-law or regulation
making any provision for or in relation to Tax and “Tax Statutes” shall be construed accordingly;

 

“TMA” means the Taxes Management
Act 1970;

 

“VAT Regs” means the Value Added Tax
Regulations 1995 (9SI 1995/2518)

 

“VATA” means the Value Added Tax
Act 1994;

 

“VAT Group” means a VAT group within the
meaning of section 43 of the VATA.

 

2.             In this schedule an “Effective Tax Liability” shall mean:

 

2.1           the
set-off of any Post Completion Relief against any Tax or against income,
profits or gains in circumstances where, but for such utilisation or set-off,
an Actual Tax Liability would have arisen in respect of which the Vendor would
have been liable to the Purchaser under this schedule; and

 

2.2           the value of an Effective Tax Liability,
where the Effective Tax Liability involves the set-off of a Post Completion
Relief shall be the amount of Tax saved by such set-off.

 

55

 

3.             Any reference to a Tax Liability in
respect of income, profits or gains earned, accrued or received shall include a
Tax Liability in respect of income, profits or gains deemed to have been or
treated or regarded as earned, accrued or received and any reference to Tax
Liability on the happening of any Event shall include Tax Liability where such
Event (for the purposes of the Tax Statute in question) is deemed to have
occurred or is treated or regarded as having occurred.

 

56

 

Part 2

 

Tax Warranties

 

TAX RETURNS AND COMPLIANCE

 

1.             Each Target Group member has at all times in the last six years
submitted to all relevant Tax Authorities by the
requisite dates every computation, return and all information for the purpose
of Tax to the extent required under any Tax Statute and each such computation,
return and information was correct and complete and leaves no material matter
unresolved regarding the Tax affairs of any Target Group member and so far as
the Vendor is aware not likely to be the subject of any dispute with any Tax
Authority.

 

2.             Each Target Group member has discharged every Tax Liability which has
fallen due and there is no Tax Liability or potential
Tax Liability in respect of which the date for payment has been postponed by
agreement with the relevant Tax Authority or by virtue of any right under any
Tax Statute or the practice of any Tax Authority.

 

3.             Each Target Group member has properly made all deductions, withholdings
and retentions required to be made in respect of any actual or deemed payment
made or benefit provided on or before Completion and has to the extent required
by law accounted for all such deductions, withholdings and retentions, and
without prejudice to the generality of the foregoing,
each Target Group member has properly operated PAYE and all relevant
regulations made thereunder.

 

4.             Each Target Group member has maintained and has in its possession, and
under its control, all records and documentation that it is required by any Tax
Statute to maintain and preserve.

 

5.             In the last three years no Target Group member has been, and so far as
the Vendor is aware is not likely to be, subject to any investigation or
non-routine audit or visit by any Tax Authority.

 

GENERAL
PROVISIONS FOR TAX

 

6.             To the extent required by generally accepted accounting principles,
provision or reserve was made in the Accounts in respect of every Tax Liability
for which any Target Group member at the Accounts Date was or may have been liable or
accountable whether or not such Tax Liability was or is a primary liability of any Target
Group member, and whether or not any Target Group member had,
or may have any right of reimbursement against any other person.

 

7.             No Target Group member is a “large company” within the meaning of regulation 3 of the
Corporation Tax (Instalment Payments) Regulations 1998.

 

CHARGEABLE
GAINS

 

8.             Save to the extent provided for in the deferred Tax provision in the
Accounts, no chargeable profit or gain would arise in respect of any asset of any Target
Group member:

 

8.1           treated as such in the Accounts, if that asset were to be disposed of
for consideration equal to the value attributed thereto in the Accounts;

 

8.2           acquired after the Accounts Date, if that asset were to be disposed of
for consideration equal to the consideration given for its acquisition

 

57

 

in each case disregarding any statutory right
to claim any allowance or relief other than amounts deductible under section 38
of the TCGA.

 

8.3           No Target Group member has at any time been party to any Event falling within sections 29,
30, 31, 31A, 32, 33, 34 (value shifting) or 17 (disposals and acquisitions
treated as made at market value) of the TCGA or received any asset by way of
gift.

 

8.4           No Target Group member has at any time been party to any Event falling within the terms of
sections 135, 136, 138A or 139 of the TCGA (company reconstructions and
amalgamations).

 

CAPITAL
ALLOWANCES

 

9.             Save to the extent provided for in the deferred Tax provision in the
Accounts, if all the assets in respect of which allowances have been claimed
under Part 2 of the Capital Allowances Act 2001 or Part II of the CAA
1990 (Plant and Machinery Allowances) and Part 3 of the Capital Allowances
Act 2001 or Part I of the Capital Allowances Act 1990 (Industrial
Buildings Allowances) and owned by any Target Group member at
the Accounts Date were to be sold by such Target Group member for an amount
equal to the value attributed to such assets in the Accounts then (ignoring any
reliefs or allowances available to that Target Group member) no balancing
charge would be made on such Target Group member.

 

CLOSE
COMPANIES

 

10.           No Target Group member is, nor has it ever been a close company
as defined in section 414 of the Taxes Act.

 

GROUPS OF COMPANIES

 

11.           No Target Group member:

 

11.1         acquired any asset from any
other company other than another member of the Target Group which at any
relevant time was a member of the same group of companies (as defined in section 170
of the TCGA or as defined in paragraphs 46 to 54 of schedule 29 to the FA
2002) as any Target
Group member or was an associated company (as defined
in section 774(4) of the Taxes Act);

 

11.2         made any intra-group
transfers of assets in circumstances such that any Target Group member could be regarded as realising a chargeable gain on the
appropriation of the asset to or from trading stock under section 173 of
the TCGA;

 

11.3         incurred any liability or
contingent liability under section 176 (depreciatory transactions within a
group) or section 190 (tax on one member of group recoverable from another
member or from a controlling director) of the TCGA;

 

11.4         entered
into or become subject to any arrangement under section 36 of the FA 1998
for the payment of corporation tax; or

 

11.5         been a
party to or agreed to make an election under section 179A of the TCGA to
reallocate any gain or loss arising under section 179 of the TCGA within a
group.

 

INHERITANCE
TAX

 

12.           Neither the assets nor the shares of any Target Group member are,
or may be, subject to any

 

58

 

charge by virtue of section 237 of the Inheritance Tax Act 1984
and no person has, or may have the power under section 212 of the
Inheritance Tax Act 1984 to raise any capital transfer tax or inheritance tax
by sale or mortgage of, or a charge on any of any Target Group member’s assets
or shares.

 

LOAN RELATIONSHIPS

 

13.           Each money debt (as defined
within section 81(2) of FA 1996) in relation to which any Target Group member is a debtor or creditor and reflected in the Accounts or existing
on the date of this agreement constitutes a loan relationship of any Target Group member and no such loan relationship is one which has an unallowable purpose
as defined in paragraph 13 of schedule 9 to the FA 1996.

 

14.           No Tax Liability or
non-trading deficit would arise from any loan relationship of any Target Group member as a result of any debt under such loan relationship being settled
in full or in part at Completion.

 

15.           In relation to each of its
loan relationships, each Target Group member operates and has in each
accounting period of each Target Group member ending after 31 March 1996,
operated an accruals basis of accounting authorised under section 85 of
the FA 1996.

 

EMPLOYMENT RELATED
SECURITIES

 

16.           No Target Group member has at any time issued any Relevant Employment-Related Security to
any person.

 

TAX AVOIDANCE

 

17.           No Target Group member has ever:

 

17.1         entered
into, been party to or otherwise been concerned with any Event as a result of
which any provision of Chapter I, Chapter IV or Chapter VI of Part XVII of
the Taxes Act applied, applies or may apply;

 

17.2         been
party to or concerned with any scheme or arrangement of which the main purpose
or one of the main purposes was the avoidance of or a reduction in liability to
Tax.

 

STAMP
DUTY, SDRT AND SDLT

 

18.           Each document in the possession or under the control of any Target
Group member, or to the production of which any Target Group member is
entitled and on which any Target Group member relies
or may rely on as purchaser or lessee and which in the United Kingdom or
elsewhere requires any stamp or mark to denote that:

 

18.1         any duty tax or fee required to be paid
by law has been paid; or

 

18.2         a duty tax or fee referred to in
paragraph 18.1 is not required to be paid, or that the document in question or
the Event evidenced by it qualifies from a relief or exemption from such duty
tax or fee; or

 

18.3         the document has been produced to the
appropriate authority

 

59

 

has been properly stamped or marked as
appropriate and no such document which is outside the United Kingdom would
attract stamp duty if it were to be brought into the United Kingdom.

 

19.           No liability to stamp duly
or SDLT will arise as a result of the withdrawal of any relief to stamp duty or
SDLT claimed prior to Completion because of the execution of this Agreement.

 

20.           Each Target Group member
has complied in all respects with the provisions of Part IV of the FA 1986
(Stamp Duty Reserve Tax) and any regulations made under such legislation.

 

VALUE
ADDED TAX

 

21.           Each Target Group member is registered as a taxable person for the
purposes of VAT.

 

22.           Each Target Group member:

 

22.1         has complied in all material respects with all Tax Statutes relevant to
VAT and guidance published by all relevant Tax Authorities in any form
whatsoever and has made and obtained full, complete, correct and up-to-date
records and invoices and other documents appropriate or requisite for the
purposes of such Tax Statutes and guidance.

 

22.2         is not in arrears with any
payment and has not failed to submit any return in a true and complete manner
or information required in respect of VAT;

 

22.3         is not at the date of this
agreement liable under Parts XIX or XIXA of the VAT Regs to repay any VAT
refunded to it;

 

22.4         is not nor has it been at any
time partially exempt for VAT purposes and there are no circumstances pursuant
to which regulations 107 to 110 of the VAT Regs apply or may apply to any Target Group member;

 

22.5         has not purchased or agreed
to purchase any asset to which article 5 of the Value Added Tax (Special
Provisions) Order 1995 (SI 1995/1268) applied or would apply;

 

22.6         does not own any asset and
has not incurred any expense in respect of which Part XV of the VAT Regs
(Capital Goods Scheme) applies; and

 

22.7         is not aware of anything
which indicates that any grant to any Target Group member of any interest in or right
over land or of any licence to occupy land will not be an exempt supply for VAT
purposes.

 

23.           The Disclosure Letter
contains full particulars of any election to waive the exemption made or agreed
to be made under schedule 10 to the VATA by (i) any Target Group member or (ii) any person who, in relation to any Target Group member, is a relevant associate as defined in paragraph 3(7) of that schedule in
respect of any property in which any Target Group member has an interest and no
Event has occurred as a result of which any such election is not, or may cease
to be, valid and effective.

 

60

 

Part 3

 

Tax Covenant

 

1.            COVENANT

 

1.1           The Vendor covenants to pay to the
Purchaser an amount equal to:

 

1.1.1        any Actual Tax Liability which arises by
reference to an Event occurring or income, profits or gains earned, accrued or
received on or before Completion including the arrangements referred to in
paragraphs 34.1 and 34.2 of Schedule 14;

 

1.1.2        the value of any Effective Tax
Liability; and

 

1.1.3        the reasonable costs properly incurred
by the Purchaser or the company in connection with a successful claim under
this part 3 of this schedule.

 

2.            DEDUCTIONS
FROM PAYMENTS

 

2.1           All sums payable by the Vendor under any
claim under the Tax Covenant shall be paid gross, free and clear of any rights
of counterclaim or set-off and without any deduction or withholding unless the
deduction or withholding is required by law in which event the Vendor shall pay
such additional amount as shall be required to ensure that the net amount
received and retained (free of any liability) by the Purchaser will equal the
full amount which would have been received by it had no such deduction or
withholding been required, provided that this paragraph shall not apply to any
interest payable under paragraph 5.3 of part 4 of this schedule.

 

2.2           In the event that any sum paid to the
Purchaser pursuant to this schedule is or will be chargeable to Tax, the
Vendor shall be obliged to pay such further sum as will, after payment of the
Tax, leave a sum equal to the amount that would otherwise have been payable if
Tax had not been so chargeable and for these purposes a sum shall be regarded
as chargeable to Tax in circumstances where it would have been so chargeable
but for the use or set off of a Post Completion Relief available to the
Purchaser.

 

61

 

Part 4

 

Limitations and Procedure

 

1.            LIMITATIONS

 

The Vendor shall not be
liable under any Tax Warranty or any claim under the Tax Covenant in respect of
any Tax Liability to the extent that:

 

1.1           such Tax Liability has been discharged
prior to Completion;

 

1.2           such liability arises or is increased by
reason of any increase in the rates of Tax after the Completion Date with
retrospective effect;

 

1.3           such liability arises or is increased as
a result of any change in law (primary or delegated), any accounting practice
or principle or the published practice of a Tax Authority occurring after the
Completion Date (but not announced before that date) in each case with
retrospective effect;

 

1.4           such liability arises or is increased as
a result of any voluntary act, transaction or omission of a Target Group member
or the Purchaser after Completion otherwise than in the ordinary course of
business of a Target Group member as carried on at Completion which the
Purchaser or, as appropriate, a Target Group member, knew or ought reasonably
to have known would give rise to or increase the liability in question;

 

1.5           the liability would not have arisen or
would have been reduced or eliminated but for a failure or omission after
Completion on the part of any Target Group member or the Purchaser to make any
claim, election, surrender or disclaimer or to give any notice or consent or to
do any other thing under an enactment or regulation relating to Tax, the
making, giving or doing of which was taken into account in computing the
provision for Tax in the Accounts or in a written notice given to the Purchaser
not less than 30 days before the final date upon which the claim, election,
surrender, disclaimer, notice consent or other thing in question may be made
given or done;

 

1.6           the liability arises or is increased as
a result of either a Target Group member or the Purchaser failing to act in
accordance with the provisions of paragraph 4 of this part of this schedule;

 

1.7           the liability arises or is increased as
a result of any change after Completion in the bases, methods or policies of
accounting of the Purchaser or a Target Group member save where such change is
made to comply with generally accepted accounting principles, the published
practice of any Tax Authority, law or rule of any regulatory authority or body
in force at the Completion Date;

 

1.8           such liability arises as a result of:

 

1.8.1        any voluntary disclaimer by any Target
Group member after Completion of the whole or part of any capital allowances
claimed before Completion the entitlement to which was taken into account in
preparing the Accounts;

 

1.8.2        the revocation or revision by any Target
Group member of any Relief claimed or the entitlement to which was taken into
account in the preparation of the Accounts;

 

62

 

1.9           any Relief, other than a Post Completion
Relief, is available to any Target Group member (including by way of
group relief from another company) to relieve or mitigate that Tax Liability;
or

 

1.10         the liability has been satisfied
(otherwise than by the Purchaser or any member of the Purchaser’s Group) at no
cost to any Target Group member.

 

2.             The Vendor shall not be liable in
respect of any breach of the Tax Warranties if, and to the extent that, the
loss incurred is or has been included in any claim under the Tax Covenant which
has been satisfied in full and in cleared funds nor shall the Vendor be liable
in respect of a claim under the Tax Covenant if, and to the extent that, the
amount claimed is or has been included in a claim for breach of the Tax
Warranties which has been satisfied in full.

 

3.             DURATION AND EXTENT

 

The provisions of schedule 9 to the
agreement shall apply in respect of any Tax Claim to the extent expressly
provided therein.

 

4.             CONDUCT OF CLAIMS

 

4.1           If the Purchaser or any Target
Group member become aware of any Claim for Tax which gives or may give rise to
a Tax Claim, the Purchaser shall, or shall procure that a Target
Group member shall, as soon as is reasonably practicable (and in any event, in
the case of the receipt of a Claim for Tax consisting of any assessment or
demand for Tax for which the time for response or appeal is limited, not less
than five clear Business Days prior to the day on which the time for response or
appeal expires) give written notice of the Claim for Tax to the Vendor.

 

4.2           If the Vendor in writing reasonably
requires, the Purchaser shall, or shall procure that a Target Group member shall,
supply the Vendor with such available and relevant details, documentation,
correspondence and information and shall take such action as the Vendor may
reasonably request in writing to negotiate, avoid, dispute, resist, compromise,
defend or appeal against the Claim for Tax and any adjudication in respect of
the Claim for Tax provided that the Vendor shall first indemnify and secure the
relevant Target Group member and the Purchaser to the reasonable satisfaction
of the Purchaser against all reasonable costs and expenses which may be
incurred in relation to the same.

 

4.3           The Vendor shall have the right to have
any action mentioned in paragraph 4.2 conducted by their nominated professional
advisers provided that:

 

4.3.1        the appointment of such professional
advisers shall be subject to the approval of the Purchaser (such approval not
to be unreasonably withheld or delayed and shall be deemed to be given in the
event that the Purchaser does not within 15 days of request give a fully
reasoned, written response to a request for approval by the Vendor);

 

4.3.2        the Vendor shall procure that the
Purchaser is kept fully informed of the progress of the relevant action and
provided with copies of all relevant correspondence and
documents sent by and to the Vendor and their professional advisers; and

 

63

 

4.3.3        the Vendor shall procure that any reasonable
comments made by the Purchaser in relation to the relevant action are adopted
by the Vendor and their professional advisers.

 

4.4           If the Vendor does not request the Purchaser or any Target Group member to take action pursuant to paragraph 4.2 of this schedule 3
part 4 or if the Vendor fails to indemnify the Purchaser or the Target Group member concerned as provided in that paragraph within fourteen days of the
said written notice to the Vendor, the Purchaser or the relevant Target Group member shall be free to pay or settle the Claim for Tax on such terms as
it may in its absolute discretion think fit.

 

4.5           If it is alleged by any Tax Authority in writing that any
Vendor (at any time) or any Target Group member (prior to Completion) has
committed any act or omission constituting fraudulent conduct relating to Tax
paragraph 4.3 of this schedule 3 part 4 shall not apply and the Vendor
shall cease to have any right under that paragraph.

 

4.6           The Purchaser shall not be obliged to take or procure the taking of the following
action pursuant to paragraph 4.2 of this schedule 3 part 4:

 

4.6.1        agreeing to the settlement or compromise of any Claim for Tax or any
proposal for the same which is likely to affect the amount involved or future
liability to Tax of the Purchaser or any Target Group member unless the Vendor
indemnifies and secures the Purchaser or the relevant Target Group member to the Purchaser’s
reasonable satisfaction against any such future liability to Tax;

 

4.6.2        contesting any Claim for Tax before any
court or other appellate body (excluding the General Commissioners of Inland
Revenue, the Special Commissioners of Inland Revenue or the Value Added Tax
Tribunal in the UK and any equivalent of any such body outside the UK) unless
at the sole expense of the Vendor, the Vendor obtains the written opinion of
Tax counsel of at least 10 years call after disclosure of all relevant
information and documents having regard to all the
circumstances that on the balance of probabilities the actions will succeed;

 

4.6.3        complying with any unreasonable instruction of the Vendor or to
taking any action or procuring the taking of any action which it acting
reasonably considers may be onerous or prejudicial to the Purchaser or to any
Target Group member;

 

4.6.4        any action whatsoever requested by any agent or representative of
the Vendor (other than the professional advisors appointed in accordance with
paragraph 4.3 of this schedule 3 part 4) including, without limitation,
any receiver, administrator or trustee in bankruptcy.

 

5.             DATE FOR PAYMENT

 

5.1           Where a Tax Claim involves the Purchaser
or a Target Group member being under a liability to make a payment to any
Tax Authority, the Vendor shall pay to the Purchaser in cleared funds the
relevant amount on or before the later of the fifth Business Day after demand
is made for the amount in question and the fifth Business Day before the date
on which the amount in question is finally payable to the relevant Tax
Authority without any interest, penalty, fine or surcharge arising in respect
of it.  In the case of a Tax Claim
involving the set-off of a Post Completion Relief, the later

 

64

 

of ten Business Days following the
service by the Purchaser of a written demand for the same or the date on which
the Actual Tax Liability would have fallen due but for such setting off.

 

5.2           Where
the Vendor is liable to make any payment under the Tax Covenant or under any
other Tax Claim the date for the payment of which is not determined under
paragraph 5.1 of this schedule 3 part 4, the Vendor shall pay to the
Purchaser the
amount in question on the fifth Business Day after demand is made for such
amount to be paid.

 

5.3           Any sum not paid on a date determined
under this schedule (“the due date”)
shall bear interest (which shall accrue from day to day after, as well as
before, any judgment for the same) at the rate of 2% per annum over the base
rate of Barclays Bank PLC or, in the absence of such base rate, at such similar
rate as the person entitled to the payment shall select from the due date up to
and including the day of actual payment of such sum (or the next Business Day
if the date of actual payment is not a Business Day) compounded quarterly.  Such interest shall be paid on demand.

 

6.             TAX AFFAIRS

 

6.1           The Vendor or its duly authorised agents
or advisers shall, at the reasonable expense of a Target Group member prepare,
submit and agree the corporation tax computations and returns of the relevant
Target Group member (“Tax Computations”)
for its accounting period(s) (within the meaning of section 12 of the
Taxes Act) ended on or before 31 December 2004 (“Relevant
Accounting Period(s)”).

 

6.2           The Vendor shall deliver to the Purchaser
for comments any Tax Computations return document or correspondence and details
of any information or proposal (“Relevant Information”)
which it intends to submit to the Inland Revenue before submission to the
Inland Revenue and subject to paragraph 6.3 shall take account of the
reasonable comments of the Purchaser and make such amendments to the Relevant
Information as the Purchaser may reasonably require in writing within 30 days
of the date of delivery of the Relevant Information prior to its submission to
the Inland Revenue.

 

6.3           The Vendor shall not, and shall procure
that no other person shall, submit to the Inland Revenue any Relevant
Information or agree any matter with the Inland Revenue where the Purchaser has
notified the Vendor in writing within 30 days of the receipt of the Relevant
Information or proposal for agreement that such Relevant Information or matter
is not true, accurate and lawful in all respects.

 

6.4           The Vendor shall deliver to the
Purchaser copies of any material correspondence sent to, or received from, the
Inland Revenue relating to the Tax Computations and returns and shall keep the
Purchaser informed of its actions under this paragraph.

 

6.5           Subject to paragraphs 6.2 to 6.4, the
Purchaser shall or shall procure that:

 

6.5.1        each Target Group member properly
authorises and signs the Tax Computations and makes and signs or otherwise
enters into all such elections, surrenders and claims and withdraws or
disclaims such elections, surrenders and claims and gives such notices and
signs such other documents as the Vendor shall reasonably require in relation
to the Relevant Accounting Period(s) provided that the
Purchaser shall not be obliged to procure that any Target Group member makes any election, claim or surrender or provides any

 

65

 

notice
or withdraws or amends any election, claim, surrender or notice unless such
making, provision, withdrawal or amendment was taken into account in the
accounts for the period to which such action relates.

 

6.5.2        each Target Group member provides to the
Vendor such information and assistance, including without limitation such
access to its books, accounts and records which may reasonably be required to
prepare, submit, negotiate and agree the Tax Computations.

 

6.5.3        any correspondence which relates to the
Tax Computations shall, if received by the Purchaser or any Target
Group member or their agents or advisers, be properly copied to the Vendor.

 

6.6           In respect of any matter which gives or
may give the Purchaser a right to make a Tax Claim, the provisions of paragraph
4 with respect to appeals and the conduct of disputes shall apply instead of
the provisions of this paragraph 6.

 

6.7           The Vendor shall use all reasonable
endeavours to agree the Tax Computations as soon as reasonably practicable and
shall deal with all such matters promptly and diligently and within applicable
time limits.

 

7.             GROUP RELIEF

 

7.1           If the Vendor is liable to make any
payment to the Purchaser under this schedule, and such liability arises in
relation to a Tax Liability which is capable of being mitigated or eliminated
by the surrender of group relief, the Vendor shall be entitled to or to procure
the surrender of group relief to any Target Group member.  Such surrender shall be made for no
consideration and shall discharge the relevant liability of the Vendor under
this schedule.

 

7.2           If any Target Group member holds any
Relief in respect of the period on or before Completion which is capable of
being surrendered as group relief to the Vendor or any company nominated by the
Vendor, the Vendor shall be entitled to request such surrender to be made for
no consideration.

 

7.3           The Purchaser shall procure that all
relevant claims, elections and surrenders and all other actions are taken as
are required to effect the surrender and utilisation of the group relief
referred to in this paragraph 7.

 

8.             VAT GROUP

 

8.1           The Vendor shall procure that the
Representative Member shall as soon as reasonably practicable apply to the
Commissioners of HM Customs and Excise to exclude any Target Group member from
the VAT Group and the Vendor shall use its reasonable endeavours to ensure the
exclusion of any Target Group member from the VAT Group as soon as reasonably
practicable but in any event no later than the Completion Date.

 

8.2           The Purchaser undertakes to procure that
each Target Group member:

 

8.2.1        provides to the Representative Member
such documents, information and assistance as it may reasonably require in
writing to enable it to comply with its obligations in the making of VAT
returns and accounting for VAT to HM Customs & Excise in respect of
supplies or acquisitions made by the Target

 

66

 

Group member for VAT purposes in the prescribed
accounting period (as defined in section 25(1) of the VATA 1994) current
at the Completion Date, and in the event that any Target Group member’s
exclusion from the VAT Group takes effect after the end of that prescribed
accounting period, in respect of supplies or acquisitions made by any Target
Group member in the next and any subsequent prescribed accounting period (“Relevant PAPs”) in each case which are,
for the purposes of section 43 of the VATA, treated as made by the
Representative Member; and

 

8.2.2        pays to the Representative Member not
less than two Business Days before the same is required to be paid to HM
Customs and Excise an amount equal to any VAT for which the Representative
Member has to account (or would have to account but for any input tax credit or
repayment of VAT due from HM Customs & Excise in respect of actual supplies
made to the members of the VAT Group other than any Target Group member) to HM
Customs & Excise in respect of the Relevant PAPs and which results from
supplies, deemed supplies, importations or acquisitions made by any Target
Group member in the Relevant PAPs but treated as made by the Representative
Member under section 43(1) of the VATA and in computing such amount of
VAT, credit shall be given to any Target Group member for any
input tax on supplies, deemed supplies made to, or importations or acquisitions
made by any Target Group member in the Relevant PAPs to which it is entitled under
the VATA.

 

8.3           The Vendor shall procure that the
Representative Member will properly and promptly comply with its obligations to
account to HM Customs & Excise for any amount in respect of VAT paid by any Target
Group member pursuant to paragraph 8.2.2 and provide to the Purchaser as soon
as possible copies of the relevant VAT returns and any relevant correspondence
or document sent to or received from HM Customs & Excise in connection with
any matter referred to in that paragraph.

 

8.4           The Vendor undertakes to procure the
Representative Member to claim as soon as possible and to pay to a specified
Target Group member an amount equal to any VAT which the Representative Member
recovers (or would recover but for any payment due to HM Customs & Excise
in respect of actual supplies made by the members of the VAT Group other than
any Target Group member) from HM Customs & Excise in respect of Relevant
PAPs and which results from supplies or deemed supplies made to, or
importations or acquisitions made by any Target Group member in the Relevant
PAPS but treated as made to the Representative Member under section 43(1)
of the VATA.

 

9.            CORRESPONDING BENEFIT

 

9.1           If on or before the seventh anniversary
of the Completion Date, a payment by the Vendor in respect of any Tax Liability
under a Tax Claim or the matter giving rise to the Tax Liability in question
results in any Target Group member or the Purchaser receiving or becoming
entitled to any Relief which they utilise (including by way of repayment of
Tax) (“Corresponding Relief”), then an amount
equal to or the Tax saved by the Corresponding Relief at the date such
Corresponding Relief is utilised (“Relevant Amount”),
shall be dealt with in accordance with paragraph 9.2.

 

67

 

9.2           The Relevant Amount:

 

9.2.1        shall first be set off against any
payment then due from the Vendor under a Tax Claim;

 

9.2.2        to the extent there is an excess of the
Relevant Amount after any application of the same under paragraph 9.2.1, a
refund shall be made to the Vendor of any previous payment or payments made by
the Vendor under a Tax Claim and not previously refunded under this paragraph
9.2.2 up to the amount of such excess; and

 

9.2.3        to the extent that the excess referred
to in paragraph 9.2.2 is not exhausted under that paragraph, the remainder of
that excess shall be carried forward and set off against any future payment or
payments which become due from the Vendor under a Tax Claim.

 

9.3           If the Purchaser or any Target
Group member become aware of any circumstances which shall or may give rise to
the application of paragraph 9.1, the Purchaser shall or shall procure that the
relevant Target Group member shall as soon as reasonably practicable
give written notice of the same to the Vendor.

 

9.4           The Vendor may at the Vendor’s expense
require the auditors for the time being of the Target Group members to certify
the existence and quantum of any Relevant Amount and the date on which the
Corresponding Relief is utilised and, in the absence of manifest error, their
decision shall be final and binding.

 

10.           THIRD PARTY CLAIMS

 

10.1         If any Target Group member or the
Purchaser are before the seventh anniversary of the Completion Date entitled to
recover from another person or a Tax Authority a sum in respect of any matter
or Tax Liability to which a Tax Claim relates and which has been satisfied by
the Vendor in cleared funds the Purchaser shall forthwith give written notice
of the same to the Vendor and if the Vendor indemnifies the Purchaser or, as
appropriate, the relevant Target Group member (to the Purchaser’s reasonable
satisfaction) against the reasonable costs of the Purchaser or, as appropriate,
the relevant Target Group member in connection with taking the following
action, the Purchaser shall, or shall procure that the relevant Target Group
member shall, take such action as is reasonably requested by the Vendor to
enforce recovery against that person or Tax Authority.

 

10.2         In the event that the Purchaser or any
Target Group member recovers any sum referred to in paragraph 10.1 (whether
after taking any action at the request of the Vendor under that paragraph or
otherwise), the Purchaser shall, as soon as reasonably practicable, account to
the Vendor for the lesser of:

 

10.2.1      the sum recovered net of any Tax on the
sum and the costs and expenses of recovering the same; and

 

10.2.2      any amount paid by the Vendor in respect
of the matter giving rise to the relevant Tax Claim.

 

11.          MISCELLANEOUS

 

Any payment to the Purchaser or any Target Group member under any Tax Claim shall be deemed to
be a reduction of the total consideration payable hereunder for the Shares.

 

68

 

12.          COVENANT BY
THE PURCHASER

 

12.1         The Purchaser and each Target Group
member jointly and severally covenant with the Vendor to pay to the Vendor an
amount equal to any of the following:

 

12.1.1      any liability or increased liability to
Tax of the Vendor or any member of the Vendor’s Group which arises as a result
of or in connection with any reduction or disallowance of group relief that
would otherwise have been available to the relevant member of the Vendor’s
Group where and to the extent that such reduction or disallowance arises in
connection with:

 

12.1.1.1     any total or partial withdrawal of group
relief by any Target Group member after Completion where such group relief was
surrendered or agreed to be surrendered on or before Completion in respect of
an accounting period ended on or before Completion; or

 

12.1.1.2     any total or partial disclaimer of
capital allowances by any Target Group member after Completion
where such capital allowances were available to any Target Group member in
respect of any accounting period ended on or before Completion;

 

12.1.2      any liability or increased liability to
Tax of the Vendor or any member of the Vendor’s Group or any person connected
with the Vendor arising under or by reference to section 767A or section 767AA
of the Taxes Act, section 179, 190 or 191 of the TCGA or section 132
of the Finance Act 1988, paragraph 68 of schedule 29 to the Finance Act
2002, paragraph 8 of schedule 34 to the Finance Act 2002, paragraph 9 of schedule 35
to the FA 2002, or paragraphs 1 or 2 of schedule 39 to the Finance Act
2002 by virtue of the non-payment of Tax by any Target Group member save that
this paragraph 12.1.2 shall not apply in respect of any Tax for which the
Vendor is liable to make (but has not yet made) payment to the Purchaser under
this schedule;

 

12.1.3      any liability or increased liability to
Tax of the Vendor or any member of the Vendor’s Group arising in connection
with any of the following events occurring or being deemed to occur at any time
after Completion:

 

12.1.3.1     the disposal by any
Target Group
member of any asset or of any interest on or right over any asset;

 

12.1.3.2     the making by any Target Group member of
any such payment or deemed payment as constitutes a chargeable payment for the
purposes of section 214 of the Taxes Act;

 

12.1.3.3     any Target Group member ceasing to be
resident in the United Kingdom for the purposes of any Tax; or

 

12.1.3.4     the effecting by any Target Group member
of any such payment or transfer of assets as constitutes the receipt by another
person of any abnormal amount by way of a dividend (as defined in section 709
of the Taxes Act);

 

12.1.4      the reasonable costs and expenses of the
Vendor or any member of the Vendor’s Group in connection with any liability
referred to or in taking any action under this paragraph.

 

12.2         For the purposes of this paragraph, any
reference to a liability to Tax shall include any liability to make a payment
of Tax which would have arisen but for the utilisation of any Relief.

 

12.3         Paragraphs 4 and 5 of this part 4 of
this schedule shall apply to this paragraph 12

 

69

 

(with all necessary changes) as if: (a) (except in paragraph 4.3)
references to the Vendor were references to the Purchaser and vice versa; and
(b) references to any Target Group member in
the definition of Claim for Tax were references to the Vendor or any member of
the Vendor’s Group.

 

13.          PURCHASER
UNDERTAKING

 

The Purchaser acknowledges that the Vendor expects that any liability
to corporation tax on chargeable gains arising from the disposal of any Target Group member will be exempted from tax under the provisions of section 192A
of the TCGA.  The Purchaser is not aware
of any reason why any Target Group member would not meet the
condition in paragraph 19 (1) (b) of schedule 7AC of the TCGA (the
condition that any Target Group member be a “qualifying
company” immediately after the time of the disposal).

 

70

 

SCHEDULE 4

 

Part 1

 

Signing

 

1.             The
Vendor shall deliver to the Purchaser a copy of the minutes of a meeting of the
directors of the Vendor authorising, inter alia, the execution by the Vendor of
this agreement and the Disclosure Letter and the approval of all the agreed
form documents.

 

2.             The
Purchaser shall deliver to the Vendor a copy of the minutes of a meeting of the
directors of the Purchaser authorising, inter alia, the execution by the
Purchaser of this agreement and counter signature of the Disclosure Letter and
the approval of all the agreed form documents.

 

3.             The
Vendor and the Purchaser shall sign the US Escrow Letter and the Purchaser
shall procure that Ergo Science Development Corporation and Ergo Research
Corporation,  also sign the US Escrow
Letter.

 

Part 2

 

Completion

 

4.             The Vendor shall produce evidence of the satisfaction of the
Condition.

 

5.             The
Vendor shall procure that at or before Completion, the Companies and the
Subsidiaries are released from any guarantees, security interests and
indemnities given by them in favour of the Vendor or any member of the Vendor’s
Group.

 

6.             The
Vendor shall deliver or procure to be delivered to the Purchaser:

 

6.1           duly
executed transfers of the Shares in favour of the Purchaser or its nominee(s)
together with duly executed powers of attorney or other authorities pursuant to
which any transfers have been executed;

 

6.2           the
relevant share certificates in respect of the Shares (or an express indemnity
in a form reasonably satisfactory to the Purchaser in the event of any found to
be missing);

 

6.3           the
powers of attorney referred to in clause 15.2 executed on behalf of the
Shareholders;

 

6.4           written
resignations of Mark Simpson and Owen Davies as directors of and Hafeez
Anjarwalla as the secretary of any of the Companies and the Subsidiaries of
which they are respectively directors or the secretary, in each case in a form
acceptable to the Purchaser (acting reasonably) and containing a waiver of all
and any claims against the Company or Subsidiary in question;

 

6.5           if
requested by the Purchaser no later than 14 days before the Completion Date the
written resignation of the auditors of the Companies and the Subsidiaries;

 

6.6           all
certificates of incorporation and certificates of incorporation on change of
name for the Companies and the Subsidiaries;

 

6.7           the
common seal and statutory books (including minute books) of the Companies and

 

71

 

the
Subsidiaries made up to the Completion Date;

 

6.8           share
certificates in respect of all the issued shares of the Subsidiaries held by
the Companies;

 

6.9           copies
of all bank mandates given by any Target Group member and/or the Subsidiaries;

 

6.10         a duly
executed deed or deeds of release from Barclays Bank plc in a form acceptable
to the Purchaser (acting reasonably) evidencing the release and discharge of
all guarantees and charges of the Companies and/or the Subsidiaries to such
bank including any charges over the shares of the Companies and the
Subsidiaries;

 

6.11         the
title deeds and other documents of title to the Properties subject to part 2 of
schedule 6;

 

6.12         the Deed
of Indemnity, duly executed and delivered by the parties thereto immediately
prior to Completion.

 

7.             The
Vendor shall procure that meetings of the boards of directors of the Companies
and the Subsidiaries are convened and held at which resolutions are duly
passed, inter alia:

 

7.1           accepting
the resignations referred to in paragraph 5.4 above;

 

7.2           appointing
to the board of directors of each of the Companies and the Subsidiaries such
persons as the Purchaser shall have notified to the Vendor in writing prior to
Completion;

 

7.3           approving
the transfers of the Shares (subject to stamping); and

 

7.4           altering
the bank mandates referred to in paragraph 5.9 to reflect the resignations and
appointments referred to above.

 

8.             The
Purchaser shall:

 

8.1           pay
to the Vendor’s Solicitors by transfer of funds the amount referred to in
clause 5.2.1 in respect of the consideration payable at Completion in
accordance with that clause and the Vendor’s Solicitors’ receipt shall be a
sufficient discharge for such sums and the Purchaser shall not be concerned to
see to the application thereof;

 

8.2           pay
to the Retention Account by transfer of funds the amount referred to in clause
5.2.2 in accordance with that clause; and

 

8.3           procure
the repayment by the Target Group of the Intercompany Balance. Such amount
shall be paid to the Vendor’s Solicitors whose receipt shall be sufficient
discharge for such sum and the Purchaser shall not be concerned to see to the
application thereof.

 

9.             The
Purchaser and the Vendor shall each execute and deliver to the Vendor’s
Solicitors and the Purchaser’s Solicitors the Irrevocable Letter of
Instruction.

 

10.           The
Purchaser and Vendor shall give instructions to Voyageur Asset Management (MA)
Inc to release it from its obligations under the US Escrow Letter.

 

72

 

SCHEDULE 5

 

Operation of the Companies pending Completion

 

The Vendor covenants with the Purchaser that, in the period from the
date of this agreement to Completion, it shall procure that each of the
Companies and the Subsidiaries shall (unless the Purchaser otherwise agrees in
writing such agreement not to be unreasonably withheld or delayed and for these
purposes the Purchaser hereby specifically agrees to the Vendor taking such
actions or making such omissions as may be (i) required for it to comply with
its obligations pursuant to schedule 14 or (ii) expressly permitted
pursuant to schedule 14):

 

1.             not
dispose of or agree to dispose of or acquire or agree to acquire any assets or
stock (other than in the normal course of business consistent with past custom
and practice and other than the Jordan House Property and the Anne Boleyn House
Property and the assets located thereat) or assume or incur or agree to assume
or incur a liability, (actual or contingent) except in the usual course of its
business consistent with past custom and practice;

 

2.             not
merge or amalgamate or agree to merge or amalgamate its business with any other
company;

 

3.             not
enter into any scheme or arrangement with creditors;

 

4.             not
enter into any contract, transaction or arrangement with any member of the
Vendor’s Group;

 

5.             not
pass any shareholders’ resolution or alter the provisions of its memorandum or
articles of association;

 

6.             not
create, allot, issue, acquire, redeem or repay any share or loan capital or
agree, arrange or undertake to do any of those things or acquire or agree to acquire
shares or any other interest in any other company;

 

7.             not
enter into or terminate or amend any Material Contract (other than agreements
to replace the services provided by Wyvern);

 

8.             not
engage in any transaction except on an arm’s-length basis in the ordinary
course of business consistent with past custom and practice or engage in any
business other than as currently being conducted;

 

9.             not
increase or agree to increase the remuneration (including, without limitation,
salary, bonuses, commissions, profits in kind and pension contributions) of any
of its directors or employees or vary the terms of employment of or dismiss any
employee (other than for gross misconduct justifying summary dismissal) or
engage any new employee or agree to provide any gratuitous payment or benefit
to any person;

 

10.           not
amend or discontinue the Disclosed Schemes or communicate to any employee any
plan, proposal or intention to amend, discontinue or exercise any discretion in
relation to any such schemes;

 

11.           not
alter or agree to alter the terms of any existing borrowing facilities or
arrange additional borrowing facilities;

 

12.           not
create or agree to create any Encumbrance over any of its assets or make any
loans or enter into any guarantee for the obligations of any third party other
than of the Vendor Group which are to be discharged in accordance with
paragraph 5 of schedule 4;

 

73

 

13.           not
grant any credit except normal trade credit given in the ordinary course of business
consistent with past custom and practice;

 

14.           not
declare, make or pay any dividend or other distribution or repay any financial
indebtedness to any member of the Vendor’s Group;

 

15.           not
change its accounting reference date or make any change to accounting
procedures or principles by reference to which its accounts are drawn up
(except as may be required by law or by any financial reporting standards,
statements of standard accounting practice and generally accepted accounting
principles and practice in the United Kingdom);

 

16.           not
enter into any litigation or arbitration proceedings;

 

17.           except
in the usual course of its business, not compromise, settle, release, discharge
or compound litigation or arbitration proceedings or a liability, claim, action,
demand or dispute, or waive a right in relation to litigation or arbitration
proceedings;

 

18.           not
cancel or fail to renew by the due date, or do or omit to anything which is
reasonably likely to result in the vitiation or cancellation of, the insurance
policies in force at the date of this agreement;

 

19.           not
make capital commitments with an aggregate contract value of £150,000 or more;

 

20.           not
reorganise or reduce its share capital or purchase of its own shares;

 

21.           not
submit any corporation tax return or submit any claim or election for the
purposes of any taxation, save where required by the 1985 Act, the 1989 Act,
the Taxes Act or CAA 1990, CAA 2001 or Schedule 18 FA 1998, but in each
case after consultation with, and taking into account any reasonable
representations of, the Purchaser;

 

22.           not
agree conditionally or otherwise, to do any of the above activities;

 

23.           procure
that the business and assets of each of the Target Group members are operated
in the ordinary and usual course so as to maintain the same as a going concern
(including using all reasonable endeavours to (i) maintain in full force and
effect any material permit, licence or authorisation which is reasonably
required to conduct the business of the Target Group as currently being
conducted, (ii) maintain working conditions and relationships with customers,
suppliers and employees as presently maintained and (iii) manage the payment of
its creditors in such a way that the relationship of the Target Group with such
creditors will not be prejudiced in any material way);

 

24.           procure
that the Purchaser is notified as soon as reasonably practicable of any written
notice, demand, citation or other communication received by any Target Group
member and/or the Vendor from any third party (including any governmental or
tax authority), in each case which is material to the operation of such
company;

 

25.           provide
to the Purchaser management accounts for each of the Target Group members for
each calendar month between the date hereof and Completion, prepared on a basis
and in a form consistent with the preparation of the Management Accounts, as
soon as reasonably possible after such accounts become available;

 

26.           procure
that the registered holders of the Shares or the Companies (as the case may be)
will not dispose of any interest in or otherwise grant an Encumbrance in
respect of any of the Shares or the shares held by the Companies in the
Subsidiaries;

 

74

 

27.           as
soon as reasonably possible disclose in writing to the Purchaser any event or
circumstance which becomes known to it which would be a breach of paragraph 23
above or a breach of any of the Warranties. 
Any such disclosure shall not prejudice or otherwise affect the
Purchaser’s rights and remedies hereunder with respect to any such breach; and

 

28.           at
the Purchaser’s reasonable request, procure that representatives of the
Purchaser (including its professional advisers) shall be allowed access to the
Properties, the Specified Individuals and the books and records of each Target
Group company; provided, however that any such access (i) shall be limited to
no more than two representatives of the Purchaser at any one time; (ii) shall
be during normal business hours and upon reasonable notice; and (iii) shall not
interfere in any material respect with the normal operations of any Target
Group member.

 

75

 

SCHEDULE 6

 

The Properties

 

Part 1

 

Details
of the Properties

 

1.             Media House, Azalea Drive, Swanley, Kent BR8 8HY registered with
freehold title number K782781. Registered proprietor is Nexus Media
Communications Limited.

 

2.             Garage 11 Edwards Gardens, Swanley, Kent registered with leasehold
title number K784987. Registered proprietor is Nexus Media Communications
Limited.

 

3.             Carrington Business Park, Manchester Road, Carrington, Urmston M31
4YR. Licence held by Highbury House Communications plc

 

4.             122 High Street, Earl Shilton, Leicester. Licence held by Highbury
Nexus Media Limited.

 

5.             Building 17, Dunsfold Park, Cranleigh, Surrey. Unregistered lease in
favour of The International Wine and Spirit Competition Limited.

 

6.             Nehrkornweg 1, 38104, Branschweig, Germany.  Licence held by Highbury Columbus Travel
Publishing Limited.

 

Part 2

 

Title Deeds and other documents of title to the Properties

 

The original deeds and documents for Media House
cannot be found. The Purchaser shall be satisfied with a copy of such documents
and shall not make any objection or requisition founded on the loss or non-production
of such documents.

 

76

 

SCHEDULE 7

 

Disclosed Schemes

 

1.     The Highbury
Columbus Travel Publishing Limited Personal Pension Plan;

 

2.     The
International Wine and Spirit Competition Limited Personal Pension Scheme; and

 

3.     The Nexus
Group Pension Scheme.

 

77

 

SCHEDULE 8

 

Working
Capital Statements

 

1.             For the purposes of this agreement:

 

1.1           “Working Capital” at
any date means Current Assets at such date less Current Liabilities at
such date;

 

1.2           “Current Assets” means
all amounts owed to any Target Group member that fall due for payment within twelve months after the Completion Date excluding any inter-company debt
but including prepayments and accrued income (and for the avoidance of doubt
Current Assets will not include cash or cash equivalents);

 

1.3           “Current Liabilities”
means all amounts owed by any Target Group member that fall due for payment
within twelve months after the Completion Date plus all accruals and deferred
income over twelve months but excluding tax, all inter-company debt and Borrowings;

 

Provided
that no amount shall be taken into account either as a contingent liability or
asset in respect of the insurance claim and adjustment relating to the SARS
Exhibition referred to in the Disclosure Letter.

 

2.             Within 45 Business Days after Completion, the Purchaser shall
prepare and deliver to the Vendor a draft completion statement for the combined
Target Group as at the Completion Date (the “Draft
Completion Statement”), setting out the Events Working Capital and
the Publishing Working Capital as at the close of business on the Completion
Date.  The Vendor will give all
reasonable assistance in the preparation of the Draft Completion Statement.

 

3.             The Draft Completion Statement shall be prepared (i) in accordance
with principles and practices generally accepted in the United Kingdom and (ii)
(subject to (i) above which shall in any event prevail) using the same
accounting principles, policies and practices used in the Accounts, and in
accordance with the law and applicable standards.  If trade creditors cannot be reasonably
identified as pertaining either to the Events Business or the Publishing
Business they shall be allocated in the proportions of 28.5% to the Events
Business and 71.5% to the Publishing Business.

 

4.             If the Vendor has any objections to the Draft Completion Statement,
it shall deliver a statement describing such objections to the Purchaser within
20 Business Days after the date of receipt by the Vendor of the Draft
Completion Statement.  If the Vendor does
not object to the Draft Completion Statement within such period, the Draft
Completion Statement shall become the Final Completion Statement and shall be
conclusive and binding on the parties in the absence of fraud or manifest
error.  The parties shall use their
reasonable endeavours to resolve any objections raised by the Vendor.  If the parties do not obtain a final
resolution within 20 Business Days after the Purchaser has received the
statement of objections, then either party may refer the dispute to the
Independent Accountant for determination. 
The Independent Accountant shall provide its written determination as
soon as reasonably practicable but in any event within 30 Business Days after
its appointment (or such other period of time as the Independent Accountant and
the parties may agree), which determination will be conclusive and binding on
the parties in the absence of fraud or manifest error.  The costs and expenses of the Independent
Accountant shall be borne 50% by the Vendor and 50% by the Purchaser.  The parties will revise the Draft Completion

 

78

 

Statement
as appropriate to reflect the resolution of any objections thereto pursuant to
this paragraph 4.

 

79

 

SCHEDULE 9

 

Limitations on the Vendor’s liability

 

1.             ACKNOWLEDGEMENT

 

The Purchaser confirms that, save to the extent
expressly stated otherwise in this agreement, the provisions of this schedule shall
apply despite (and prevail over) any other provision of this agreement
(including the Tax Covenant) and are in addition to and without prejudice to
the Purchaser’s general legal obligation to mitigate any loss or damage it may
suffer.

 

2.             DISCLOSURE

 

The Purchaser shall not be entitled to make a
Warranty Claim
if and to the extent that the facts or information upon which it is based are
Fairly Disclosed in the Disclosure Letter.

 

3.             DURATION AND EXTENT

 

3.1           The aggregate liability of the Vendor in respect of all Claims shall
not exceed the sum of the Final Consideration and the Intercompany Balance.

 

3.2           No amount shall be payable by the Vendor in respect of any Claim
(other than any Specified Claim);

 

3.2.1        unless the amount of the liability in respect of each such Claim (or
series of related Claims) exceeds £10,000 (“de minimis”); and

 

3.2.2        unless and until the aggregate cumulative liability of the Vendor in
respect of all such Claims exceeds £250,000 and in such circumstances it shall
be liable for the full amount of all Claims (excluding all Claims for which the
Vendor has no liability by reason of paragraph 3.2.1).

 

3.3           The Vendor shall not be liable for any Share Warranty Claim unless
the Vendor is given a Claim Notice by the Purchaser prior to the date falling
18 months after the Completion Date (provided, however that there shall be no
time limit in relation to any Claim under clause 2 or any of paragraphs 1.1 and
1.3 of schedule 2 part 1) and unless legal proceedings shall have been
served in respect of any such Claim within nine months of the Vendor being
notified of any such Claim by the Purchaser.

 

3.4           The Vendor shall not be liable for any Tax Claim unless the Vendor
is given a Claim Notice by the Purchaser prior to the seventh anniversary of
the Completion Date and unless legal proceedings shall have been served in
respect of any such Tax Claim within nine months of the Vendor being notified
of any such Tax Claim.

 

4.             LIMITATIONS

 

The Vendor shall not be liable under any of the
Warranties or any other provision of this agreement (excluding the Tax Covenant
and the Tax Warranties):

 

4.1           to the extent that provision, reserve or allowance has been made in
the Final Completion Statement in respect thereof or to the extent that payment
or discharge thereof has been taken into account therein; or

 

80

 

4.2           to the extent that such liability arises or is increased as a result
of any change or changes in legislation (primary or delegated) including
without limitation any increase in rates of taxation or the introduction of any
changes or new form of taxation or in the practice of the Inland Revenue or HM
Customs & Excise or any other relevant authority (in the United Kingdom or
elsewhere) occurring after the date of this agreement whether or not with
retrospective effect; or

 

4.3           to the extent that such liability occurs or arises as a result of
any voluntary act, transaction or omission of the Companies or the Subsidiaries
or the Purchaser or their respective directors, employees or agents after
Completion which the Purchaser or as appropriate, the Target Group member knew
or ought reasonably to have known would give rise to the liability in question,
other than any voluntary act, transaction or omission in the ordinary course of
business or under a legally binding obligation entered into or which arose on
or before Completion; or

 

4.4           to the extent that any Claim by the Purchaser or the subject matter
thereof has been or is made good or is otherwise compensated for (otherwise
than by the Purchaser or any member of the Purchaser’s Group), at no cost to
the Purchaser’s Group; or

 

4.5           notwithstanding paragraph 6.4 to the extent that the matter to which
it relates is recovered by the Companies or the Subsidiaries from insurers and
the Purchaser agrees (and agrees to procure that the Companies and the
Subsidiaries will) use all reasonable endeavours to recover from their
respective insurers in respect of any matters giving rise to a claim; or

 

4.6           to the extent that such liability occurs or arises wholly or partly
out of or as a result of any act, transaction or omission whatsoever authorised
by or carried out at and in accordance with the written request of the
Purchaser or any member of the Purchaser’s Group (and for these purposes the
Purchaser hereby authorises and requests the Vendor to carry out its
obligations pursuant to schedule 14); or

 

4.7           to the extent that such liability occurs or arises as a result of
any voluntary act or transaction of the Purchaser or its directors or employees
before Completion which the Purchaser or as appropriate, its directors or
employees knew or ought reasonably to have known would give rise to the
liability in question other than any act or transaction which is carried out at
the request of or with the consent of the Vendor.

 

5.             THIRD PARTY CLAIMS

 

5.1           Where the Purchaser and/or the Companies and/or the Subsidiaries
is/are at any time entitled to recover from some other person (including any
Tax Authority or insurers) any sum in respect of any matter which might give
rise to a Claim, then without prejudice to the Purchaser’s rights against the
Vendor, the Purchaser shall and shall procure that the Companies and/or the
Subsidiaries shall subject to the Purchaser (or the Companies and/or the
Subsidiaries, as applicable) being indemnified by the Vendor (on terms
reasonably satisfactory to the Purchaser) for all associated costs and expenses
properly incurred (including legal fees) at the written request of the Vendor
take all such steps as the Vendor may reasonably require to enforce such
recovery prior to taking any action against the Vendor (other than notifying
the Vendor of the Claim) and in the event that the Purchaser or the Companies
and/or the Subsidiaries shall recover any amount from such other person which
is attributable or referable to the matter forming the subject matter of the
Claim, the amount of the Claim against the Vendor shall be reduced by the
amount recovered (including any repayment supplement), less all costs, charges
and expenses properly incurred by the Purchaser

 

81

 

or the
Companies and/or the Subsidiaries in recovering that sum from such other
person.

 

5.2           If the Vendor pays at any time to the Purchaser or to the Companies
and/or the Subsidiaries an amount pursuant to a Claim and the Purchaser or the
Companies and/or the Subsidiaries subsequently become entitled to recover from
some other person any sum which is attributable or referable to the matter
forming the subject matter of the Claim the Purchaser shall and shall procure
that the Companies and/or the Subsidiaries shall subject to the Purchaser (or
the Companies and/or the Subsidiaries) being indemnified by the Vendor (on terms
reasonably satisfactory to the Purchaser) for all associated costs and expenses
properly incurred (including legal fees), at the written request of the Vendor
take all steps reasonably requested by the Vendor to enforce such recovery and
shall forthwith repay to the Vendor so much of the amount paid by it to the
Purchaser or the Companies and/or the Subsidiaries which is attributable or
referable to the matter forming the subject matter of the Claim as does not
exceed the sum recovered from such other person less all costs, charges and
expenses reasonably and properly incurred (including legal fees) by the
Purchaser or the Companies and/or the Subsidiaries in recovering that sum from
such other person; provided however that the Purchaser shall only be required
to repay such amount to the Vendor to the extent that, following such
repayment, the aggregate amount recovered by the Purchaser from any person,
less the amount repaid to the Vendor, is equal to the Losses incurred by the
Purchaser in relation to the Claim to which the payments relate.

 

6.             CONDUCT OF CLAIMS

 

6.1           If the Purchaser or the Companies and/or the Subsidiaries become
aware of any matter which might give rise to a Claim (other than a Tax Claim) (“Third Party Claim”):

 

6.1.1        the Purchaser shall as soon as is reasonably practicable give
written notice to the Vendor of the Third
Party Claim with such details as are reasonably available at that time
and shall consult with the Vendor with respect to such matter;

 

6.1.2        the Purchaser shall (and shall procure that the Companies and/or the
Subsidiaries concerned shall) subject to paragraph 6.2 of this schedule provide
to the Vendor and its advisers reasonable access during normal working hours to
premises and personnel and to relevant assets, documents and records within the
Purchaser’s Group for the purposes of investigating the matter and enabling the
Vendor to consider what action it should request be taken in accordance with
paragraph 6.1.4 of this schedule;

 

6.1.3        the Vendor (at its cost) may take copies of the documents or
records, and photograph the premises or assets, referred to in paragraph 6.1.2;

 

6.1.4        the Purchaser shall (and shall procure that the Companies and/or the
Subsidiaries concerned shall) subject to paragraph 6.2 of this schedule take
such action and give such information and assistance in connection with the
affairs of the Purchaser or the Companies and/or the Subsidiaries as the Vendor
may reasonably request in writing to negotiate, avoid, dispute, resist,
mitigate, compromise, defend or appeal against any Third Party Claim and any adjudication with respect thereto which
shall include (without limitation)

 

82

 

the
Companies and/or the Subsidiaries applying to postpone (so far as legally
possible) the payment of any taxation.

 

6.2           The Vendor shall indemnify the Purchaser and the Companies and/or
the Subsidiaries to their reasonable satisfaction against all losses, damages
and expenses properly incurred and reimburse to the Purchaser and the Companies
and/or the Subsidiaries and all out-of-pocket expenses properly incurred by
them in complying with their obligations under this paragraph 6.

 

6.3           The conduct of any proceedings of whatsoever nature arising in
connection with any Third Party Claim
shall, if the Vendor requests, be delegated entirely to the Vendor and in that
connection the Purchaser shall give or cause to be given to the Vendor all such
assistance as the Vendor may reasonably require in disputing any such Third Party Claim and shall instruct
such solicitors or professional advisers as the Vendor may nominate to act on
behalf of the Vendor, the Purchaser or the Companies and/or the Subsidiaries
but in accordance with the Vendor’s instructions; provided however that (i) the Vendor will not consent to the
entry of any judgement or enter into any settlement with respect to the Third
Party Claim without the prior written consent of the Purchaser (not to be
unreasonably withheld or delayed) unless the judgement or proposed settlement involves
only the payment of money damages and does not impose an injunction or other
equitable relief on the Purchaser or any Target Group member, and (ii) the
Vendor shall take into account all reasonable instructions given by the
Purchaser with a view to avoiding any material adverse effect on any Target
Group member, its business or the goodwill attaching thereto.

 

6.4           Unless and until the Vendor assumes the defence of the Third Party
Claim as provided in the preceding paragraph, the Purchaser and/or any Target
Group member may defend the Third Party Claim in any manner they may deem
appropriate (but shall take into account all reasonable instructions given by
the Vendor)provided that the Purchaser shall not, and shall ensure that no
member of the Purchaser’s Group will, admit liability in respect of, or
compromise or settle, the Third Party
Claim without the prior written consent of the Vendor (such consent not
to be unreasonably withheld or delayed).

 

6.5           The parties agree that any failure on the part of the Purchaser to
comply with its obligations under this paragraph 6 will not affect (and shall
not be a condition precedent to) the liability of the Seller hereunder.

 

7.             MISCELLANEOUS

 

7.1           Any payment to the Purchaser under the Warranties or under the Tax
Covenant by the Vendor shall be deemed to be a reduction of the total
consideration payable hereunder for the Shares.

 

7.2           If in respect of any one matter a Claim may be made under the
Warranties and under the Tax Covenant then to the extent that the Claim is
satisfied under the Warranties, an amount payable under the Tax Covenant in
respect of the same matter is reduced accordingly and vice versa.

 

7.3           Payment of any Claim shall pro tanto satisfy and discharge any other
Claim which is capable of being made in respect of the same loss, and the
Purchaser shall not be able to recover more than once in respect of the same
loss.

 

83

 

7.4           The Purchaser will use all reasonable endeavours to, and shall
ensure that each Target Group member will use all reasonable endeavours to,
preserve all documents, records, correspondence, accounts and other information
whatsoever relevant to a matter which may give rise to a Claim.

 

7.5           The Vendor shall not be liable under any of the Warranties to the
extent the Purchaser had at any time prior to the date of this agreement actual
knowledge of the facts, matter or circumstance which gave rise to a Claim under
the Warranties and the Purchaser was actually aware that such facts, matter or
circumstance would give rise to a liability on the party of the Vendor under
the Warranties.  For this purpose the
Purchaser shall be deemed only to have knowledge of anything of which the
directors of the Purchaser are actually aware

 

84

 

 

SCHEDULE 10

 

Registered Business Intellectual Property

 

Part 1

 

Trade Marks

 

	
  Trade Mark

  	
   

  	
  No

  	
   

  	
  Country

  	
   

  	
  Registered
  proprietor

  	
   

  	
  Renewal

  date

  	
   

  	
  Classes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHECKOUT

  	
   

  	
  2004214

  	
   

  	
  UK

  	
   

  	
  Highbury Business Communications Limited

  	
   

  	
  01/12/2014

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHECKOUT FRESH

  	
   

  	
  2136763

  	
   

  	
  UK

  	
   

  	
  Highbury Business Communications Limited

  	
   

  	
  24/06/2007

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ELECTRICAL TIMES

  	
   

  	
  2070957

  	
   

  	
  UK

  	
   

  	
  Highbury Business Communications Limited

  	
   

  	
  10/05/2006

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ELECTRICAL REVIEW

  	
   

  	
  687197

  	
   

  	
  UK

  	
   

  	
  Highbury Business Communications Limited

  	
   

  	
  10/03/2009

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ELECTRONICS WORLD

  	
   

  	
  2070942

  	
   

  	
  UK

  	
   

  	
  Highbury Business Communications Limited

  	
   

  	
  10/05/2006

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INDEPENDENT GROCER

  	
   

  	
  2003866

  	
   

  	
  UK

  	
   

  	
  Highbury Business Communications Limited

  	
   

  	
  01/12/2014

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WHAT TO BUY FOR BUSINESS

  	
   

  	
  1462293

  	
   

  	
  UK

  	
   

  	
  Highbury Business Communications Limited

  	
   

  	
  24/04/2008

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THE MOTOR SHIP

  	
   

  	
  2071013

  	
   

  	
  UK

  	
   

  	
  Highbury Business Communications Limited

  	
   

  	
  10/05/2006

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INDEPENDENT RETAIL NEWS

  	
   

  	
  2121822

  	
   

  	
  UK

  	
   

  	
  Highbury Business Communications Limited

  	
   

  	
  27/01/2007

  	
   

  	
  16; 35

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUPERMARKETING

  	
   

  	
  1380236

  	
   

  	
  UK

  	
   

  	
  Highbury Business Communications Limited

  	
   

  	
  07/04/2006

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PHONE MILES

  	
   

  	
  2006603

  	
   

  	
  UK

  	
   

  	
  Highbury Columbus Travel Publishing Limited
  (formerly Columbus Publishing Limited)

  	
   

  	
  04/01/2005

  	
   

  	
  9; 16; 35

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WORLD TRAVEL GUIDE

  	
   

  	
  2146244

  	
   

  	
  UK

  	
   

  	
  Highbury Columbus Travel Publishing Limited
  (formerly Columbus Publishing Limited)

  	
   

  	
  24/09/2007

  	
   

  	
  9; 16; 42

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MOTOR TRADER

  	
   

  	
  687191

  	
   

  	
  UK

  	
   

  	
  Assignment from Reed Business Information to
  Highbury Business

  	
   

  	
  10/03/2009

  	
   

  	
  16

  

 

85

 

	
  Trade Mark

  	
   

  	
  No

  	
   

  	
  Country

  	
   

  	
  Registered
  proprietor

  	
   

  	
  Renewal

  date

  	
   

  	
  Classes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Communications Limited has been filed with the Trade
  Marks Registry

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WORLD TRAVEL GUIDE

  	
   

  	
  2723132

  	
   

  	
  US

  	
   

  	
  Highbury Columbus Travel Publishing Limited
  (formerly Columbus Publishing Limited)

  	
   

  	
  10/06/2013

  	
   

  	
  9; 16; 39

  

 

86

 

Part 2

 

Domain Names

 

	
  Domain

  	
   

  	
  Registered to

  	
   

  	
  Expiry Date

  
	
  actionweek.co.uk

  	
   

  	
  Higbury (sic)Business Comms

  	
   

  	
  11/10/2006

  
	
  aemagazine.com

  	
   

  	
  Higbury (sic) Business Comms

  	
   

  	
  01/05/2009

  
	
  broadbandeurope.co.uk

  	
   

  	
  Highbury Business

  	
   

  	
  17/03/2006

  
	
  broadbandeurope.org

  	
   

  	
  Highbury Business

  	
   

  	
  18/03/2005

  
	
  cabling-world.co.uk

  	
   

  	
  Nexus Media - (to lapse and so will not be
  transferred)

  	
   

  	
  24/04/2005

  
	
  ceeconference.com

  	
   

  	
  Highbury
  Business Comms

  	
   

  	
  15/09/2006

  
	
  checkoutbluesky.com

  	
   

  	
  Highbury Business Communications Limited

  	
   

  	
  24/10/2005

  
	
  checkoutfresh.co.uk

  	
   

  	
  Highbury Business Communications Limited

  	
   

  	
  20/06/2006

  
	
  checkoutfresh.com

  	
   

  	
  Highbury Business Communications Limited

  	
   

  	
  21/04/2006

  
	
  checkoutjobs.co.uk

  	
   

  	
  Highbury Business

  	
   

  	
  12/11/2006

  
	
  cibawards.com

  	
   

  	
  Highbury-Nexus Limited

  	
   

  	
  25/11/2005

  
	
  checkoutmagazine.co.uk

  	
   

  	
  Highbury Business Communications Limited

  	
   

  	
  24/10/2006

  
	
  checkout-trends.com

  	
   

  	
  Highbury Business Communications Limited

  	
   

  	
  24/10/2005

  
	
  columbus-group.co.uk

  	
   

  	
  columbus Holdings Ltd - (to lapse and so will not be
  transferred)

  	
   

  	
  01/07/2005

  
	
  columbusguides.co.uk

  	
   

  	
  Columbus Holdings Limited (to be transferred to
  Highbury Columbus Travel Publishing Limited - Form sent to Nominet)

  	
   

  	
  31/05/2006

  
	
  columbusguides.com

  	
   

  	
  Columbus Publishing Limited

  	
   

  	
  15/05/2009

  
	
  columbusguides.net

  	
   

  	
  Columbus Publishing Limited

  	
   

  	
  15/05/2006

  
	
  columbusonlinetravelinformation.co.uk

  	
   

  	
  Highbury
  Business Comms

  	
   

  	
  07/04/2006

  

 

87

 

	
  Domain

  	
   

  	
  Registered to

  	
   

  	
  Expiry Date

  
	
  columbusonlinetravelinformation.com

  	
   

  	
  Highbury
  Business Comms

  	
   

  	
  08/04/2006

  
	
  columbusonlinetravelinformation.net

  	
   

  	
  Highbury
  Business Comms

  	
   

  	
  08/04/2006

  
	
  columbuspublishing.com

  	
   

  	
  Highbury
  Columbus Travel Publishing Limited

  	
   

  	
  14/08/2005

  
	
  columbustravelguide.com

  	
   

  	
  Columbus Publishing Limited

  	
   

  	
  15/05/2006

  
	
  columbustravelguide.net

  	
   

  	
  Columbus Publishing Limited

  	
   

  	
  15/05/2006

  
	
  columbustravelguides.com

  	
   

  	
  Columbus Publishing Limited

  	
   

  	
  15/05/2006

  
	
  columbustravelguides.net

  	
   

  	
  Columbus Publishing Limited

  	
   

  	
  15/05/2006

  
	
  columbustravelpublishing.com

  	
   

  	
  Highbury Columbus Travel Publishing Limited

  	
   

  	
  20/08/2005

  
	
  commsmoves.net

  	
   

  	
  To lapse and so will not be transferred

  	
   

  	
  11/01/2005

  
	
  communications-news.co.uk

  	
   

  	
  Nexus Media Limited

  	
   

  	
  24/04/2005

  
	
  communications-news.com

  	
   

  	
  Nexus Media Limited

  	
   

  	
  24/04/2005

  
	
  convenienceawards.co.uk

  	
   

  	
  Highbury
  Business Comms

  	
   

  	
  29/10/2006

  
	
  convenienceawards.com

  	
   

  	
  Highbury
  Business Comms

  	
   

  	
  29/10/2006

  
	
  cumulusbusinessmedia.co.uk

  	
   

  	
  Cumulus Ltd - (to lapse and so will not be
  transferred)

  	
   

  	
  04/04/2005

  
	
  cumulusmedia.co.uk

  	
   

  	
  Cumulus Business Media

  	
   

  	
  18/04/2005

  
	
  dasreiseportal.com

  	
   

  	
  Columbus Publishing Limited

  	
   

  	
  13/02/2005

  
	
  dasreiseportal.de

  	
   

  	
  Columbus Travel Publishing (De)

  	
   

  	
  Not known

  
	
  defencepa.com

  	
   

  	
  Nexus Media Ltd

  	
   

  	
  18/02/2006

  
	
  derreisefuehrer.com

  	
   

  	
  Highbury Columbus Travel Publishing Limited

  	
   

  	
  14/07/2005

  
	
  derreisefuehrer.net

  	
   

  	
  Highbury Columbus Travel Publishing Limited

  	
   

  	
  14/08/2005

  
	
  ecocexhibition.com

  	
   

  	
  Highbury-Nexus Limited

  	
   

  	
  16/08/2005

  

 

88

 

	
  Domain

  	
   

  	
  Registered to

  	
   

  	
  Expiry Date

  
	
  ecocexhibition2004.com

  	
   

  	
  Highbury-Nexus Limited

  	
   

  	
  28/05/2005

  
	
  ecocexhibition2005.com

  	
   

  	
  Highbury-Nexus Limited

  	
   

  	
  20/04/2005

  
	
  electricalguide.com

  	
   

  	
  Highbury
  Business Communications Ltd

  	
   

  	
  24/02/2005

  
	
  electrical-info.com

  	
   

  	
  Highbury
  Business Comms

  	
   

  	
  23/01/2009

  
	
  electricalreview.co.uk

  	
   

  	
  Highbury Business Communications Limited

  	
   

  	
  25/03/2005

  
	
  electricaltimes.co.uk

  	
   

  	
  Highbury Business Communications Limited

  	
   

  	
  25/03/2005

  
	
  electricaltimes.com

  	
   

  	
  Highbury Business Comms

  	
   

  	
  12/04/2009

  
	
  electricalwholesalingtimes.co.uk

  	
   

  	
  Highbury Business Comms

  	
   

  	
  01/09/2006

  
	
  electricalwholesalingtimes.com

  	
   

  	
  Highbury Business Comms

  	
   

  	
  01/09/2006

  
	
  electronicsworld.co.uk

  	
   

  	
  Highbury Business Communications Limited

  	
   

  	
  31/03/2005

  
	
  engineeringdistributor.com

  	
   

  	
  Expired - not being renewed

  	
   

  	
  08/12/2004

  
	
  epnmagazine.com

  	
   

  	
  Highbury Business Comms

  	
   

  	
  01/05/2009

  
	
  eurocomms.co.uk

  	
   

  	
  Highbury House Communications Plc (to be transferred
  to Highbury Business Limited - Form sent to Nominet)

  	
   

  	
  11/01/2005

  
	
  exhibitormanual.info

  	
   

  	
  Nexus Media Limited

  	
   

  	
  11/01/2007

  
	
  fishermansmanual.net

  	
   

  	
  Highbury Business

  	
   

  	
  01.11/2005

  
	
  gocoti.co.uk

  	
   

  	
  Highbury Business Comms

  	
   

  	
  07/04/2006

  
	
  gocoti.com

  	
   

  	
  Highbury Business Comms

  	
   

  	
  08/04/2006

  
	
  gocoti.net

  	
   

  	
  Highbury Business Comms

  	
   

  	
  08/04/2006

  
	
  grower.co.uk

  	
   

  	
  Nexus Media Ltd

  	
   

  	
  30/07/2006

  
	
  groweroftheyear.co.uk

  	
   

  	
  Nexus Media Ltd

  	
   

  	
  21/12/2005

  
	
  groweroftheyear.com

  	
   

  	
  Highbury-Nexus Limited

  	
   

  	
  21/12/2005

  

 

89

 

	
  Domain

  	
   

  	
  Registered to

  	
   

  	
  Expiry Date

  
	
  guiamundialdeaeropuertos.com

  	
   

  	
  Columbus Publishing Limited

  	
   

  	
  26/02/2005

  
	
  guiamundialdeviajes.com

  	
   

  	
  Columbus Publishing Limited

  	
   

  	
  28/07/2006

  
	
  guidemondialdesaeroports.com

  	
   

  	
  Columbus Publishing Limited

  	
   

  	
  26/02/2005

  
	
  guidemondialdevoyage.com

  	
   

  	
  Columbus Publishing Limited

  	
   

  	
  26/02/2005

  
	
  handsonpower.co.uk

  	
   

  	
  Highbury Business Comms

  	
   

  	
  28/09/2006

  
	
  handsonpower.com

  	
   

  	
  Highbury Business Comms

  	
   

  	
  24/09/2006

  
	
  harpers-wine.com

  	
   

  	
  Nexus
  Media Limited

  	
   

  	
  12/11/2005

  
	
  hhcmailer.com

  	
   

  	
  Highbury House Communications PLC (not to be
  transferred)

  	
   

  	
  17/01/2005

  
	
  hhctest.com

  	
   

  	
  Highbury House Communications PLC (not to be
  transferred)

  	
   

  	
  01/05/2005

  
	
  highbury.biz

  	
   

  	
  Highbury Business Comms

  	
   

  	
  08/02/2011

  
	
  highburybiz.co.uk

  	
   

  	
  Higbury (sic) Business Comms

  	
   

  	
  08/02/2006

  
	
  highburybiz.com

  	
   

  	
  Higbury (sic) Business Comms

  	
   

  	
  08/02/2011

  
	
  highburybizcomm.co.uk

  	
   

  	
  Higbury (sic) Business Communications

  	
   

  	
  08/02/2006

  
	
  highburybusiness.co.uk

  	
   

  	
  Higbury (sic) Business Comms

  	
   

  	
  08/02/2006

  
	
  highburybusiness.com

  	
   

  	
  Higbury (sic) Business Comms

  	
   

  	
  08/02/2011

  
	
  highburybusinesscommunications.co.uk

  	
   

  	
  Highbury Business Communications

  	
   

  	
  08/02/2006

  
	
  highburybusinesscommunications.com

  	
   

  	
  Highbury Business Communications

  	
   

  	
  08/02/2011

  
	
  highburynexus.co.uk

  	
   

  	
  Highbury House Communications PLC - (to lapse and
  will not be transferred)

  	
   

  	
  27/03/2005

  
	
  horticultureinfocus.com

  	
   

  	
  Highbury Business

  	
   

  	
  24/09/2005

  
	
  hortinfocus.com

  	
   

  	
  Highbury Business

  	
   

  	
  24/09/2005

  
	
  hoteldesignevent.com

  	
   

  	
  Highbury-Nexus Limited

  	
   

  	
  27/02/2005

  

 

90

 

	
  Domain

  	
   

  	
  Registered to

  	
   

  	
  Expiry Date

  
	
  hotelsdesign.co.uk

  	
   

  	
  Highbury House Communications Plc - (to lapse and
  will not be transferred)

  	
   

  	
  07/02/2005

  
	
  hotelspeconline.com

  	
   

  	
  Highbury-Nexus Limited

  	
   

  	
  02/04/2005

  
	
  ienmagazine.co.uk

  	
   

  	
  Highbury House Communications Plc (to be transferred
  to Highbury-Nexus Limited - Form sent to Nominet)

  	
   

  	
  20/11/2004

  
	
  internationalbusinessawards.co.uk

  	
   

  	
  Highbury House Communications Plc (to be transferred
  to Highbury-Nexus - form sent to Nominet)

  	
   

  	
  16/04/2005

  
	
  ipgmagazine.com

  	
   

  	
  Highbury Business Comms

  	
   

  	
  01/05/2011

  
	
  irntalkingshop.co.uk

  	
   

  	
  Highbury Business Communications Limited

  	
   

  	
  04/04/2006

  
	
  irn-talkingshop.co.uk

  	
   

  	
  Highbury Business Communications Limited

  	
   

  	
  04/04/2006

  
	
  irn-talkingshop.com

  	
   

  	
  Highbury Business Communications Limited

  	
   

  	
  04/04/2006

  
	
  labupdate.co.uk

  	
   

  	
  Highbury House Communications Plc (to be transferred
  to Highbury-Nexus Limited - Form sent to Nominet)

  	
   

  	
  20/11/2004

  
	
  meemagazine.com

  	
   

  	
  Highbury Business Comms

  	
   

  	
  01/05/2009

  
	
  mhn.co.uk

  	
   

  	
  Nexus Media Limited

  	
   

  	
  01/11/2005

  
	
  mobile-euro.co.uk

  	
   

  	
  Nexus Media Limited

  	
   

  	
  03/05/2005

  
	
  motorship.co.uk

  	
   

  	
  Interactive Media Unit (to be transferred to
  Highbury Business Communications Limited - Negotiating with Nominet)

  	
   

  	
  26/03/2006

  
	
  motor-ship.co.uk

  	
   

  	
  Highbury Business Communications Limited

  	
   

  	
  21/07/2006

  
	
  motorship.com

  	
   

  	
  Highbury Business Communications Limited

  	
   

  	
  25/03/2009

  
	
  motorship.net

  	
   

  	
  Cumulus
  Business Media

  	
   

  	
  28/05/2005

  
	
  motortrader.co.uk

  	
   

  	
  Netica
  Plc (to be transferred to Highbury Business Communications Limited -
  Negotiating with Nominet)

  	
   

  	
  24/03/2006

  
	
  motortrader.com

  	
   

  	
  Highbury Business Communications

  	
   

  	
  19/09/2005

  

 

91

 

	
  Domain

  	
   

  	
  Registered to

  	
   

  	
  Expiry Date

  
	
  motortrader.net

  	
   

  	
  Cumulus
  Business Media

  	
   

  	
  20/05/2005

  
	
  nexusmedia.co.uk

  	
   

  	
  Nexus Information Technology (to lapse and so will
  not be transferred)

  	
   

  	
  Not known

  
	
  nexus-media.co.uk

  	
   

  	
  Nexus Media Limited

  	
   

  	
  14/02/2005

  
	
  nexusmedia.com

  	
   

  	
  Websurfer Ltd (to be transferred to Nexus Media
  Communications Ltd - Request made to Stuart Ward)

  	
   

  	
  22/10/2005

  
	
  nexusonline.co.uk

  	
   

  	
  Nexus Media Ltd

  	
   

  	
  23/10/2005

  
	
  nexusonline.com

  	
   

  	
  Nexus Media Ltd

  	
   

  	
  22/10/2005

  
	
  nurseryman.co.uk

  	
   

  	
  Highbury Nexus Media Limited (to be transferred to
  Highbury Media Ltd - form sent to Nominet)

  	
   

  	
  02/12/2005

  
	
  nurseryman-and-gardencentre-awards.co.uk

  	
   

  	
  Nexus Media Limited (to lapse and so will not be
  transferred)

  	
   

  	
  21/12/2005

  
	
  officeproductsdealer.co.uk

  	
   

  	
  Nexus Media Limited

  	
   

  	
  13/03/2006

  
	
  panelbuilding.co.uk

  	
   

  	
  Highbury Business Communications Limited

  	
   

  	
  29/09/2005

  
	
  panelbuilding.net

  	
   

  	
  Highbury Business Comms

  	
   

  	
  30/09/2005

  
	
  powerandenergy.co.uk

  	
   

  	
  Nexus Media Limited

  	
   

  	
  07/05/2005

  
	
  qfdawards.co.uk

  	
   

  	
  Highbury Business Comms

  	
   

  	
  16/05/2006

  
	
  qfdawards.com

  	
   

  	
  Highbury Business Comms

  	
   

  	
  17/05/2009

  
	
  qtbuyersguide.co.uk

  	
   

  	
  Highbury Nexus Media Limited

  	
   

  	
  10/08/2005

  
	
  qualitytoday.co.uk

  	
   

  	
  Nexus Medial (sic) Ltd

  	
   

  	
  11/04/2006

  
	
  retailawards.co.uk

  	
   

  	
  Highbury Business Comms

  	
   

  	
  16/05/2006

  
	
  shopspeconline.com

  	
   

  	
  Highbury-Nexus Limited

  	
   

  	
  02/04/2005

  
	
  specialistschoolsreview.co.uk

  	
   

  	
  Highbury Business Comms

  	
   

  	
  10/01/2007

  
	
  specialistschoolsreview.com

  	
   

  	
  Highbury Business Comms

  	
   

  	
  10/01/2007

  

 

92

 

	
  Domain

  	
   

  	
  Registered to

  	
   

  	
  Expiry Date

  
	
  televisionmagazine.co.uk

  	
   

  	
  Highbury Business Comms

  	
   

  	
  18/11/2005

  
	
  televisionmagazine.net

  	
   

  	
  Highbury Business Comms.

  	
   

  	
  18/11/2009

  
	
  the-hygienist.co.uk

  	
   

  	
  Nexus Business Communication

  	
   

  	
  15/10/2006

  
	
  themotorship.co.uk

  	
   

  	
  Higbury (sic) Business Comms

  	
   

  	
  22/04/2005

  
	
  themotorship.com

  	
   

  	
  Highbury
  Business Communications Limited

  	
   

  	
  07/03/2010

  
	
  themotorship.net

  	
   

  	
  Highbury Business Comms.

  	
   

  	
  23/04/2005

  
	
  the-probe.co.uk

  	
   

  	
  Nexus Business Communication

  	
   

  	
  15/10/2005

  
	
  travel-guide.com

  	
   

  	
  Columbus Publishing Limited

  	
   

  	
  31/08/2008

  
	
  travel-guides.com

  	
   

  	
  Columbus Press Limited

  	
   

  	
  31/07/2009

  
	
  udt-asia.com

  	
   

  	
  Highbury-Nexus Limited

  	
   

  	
  18/06/2005

  
	
  udt-europe.com

  	
   

  	
  Highbury-Nexus Limited

  	
   

  	
  18/06/2005

  
	
  udt-hawaii.com

  	
   

  	
  Highbury-Nexus Limited

  	
   

  	
  18/06/2005

  
	
  udtnet.com

  	
   

  	
  Highbury-Nexus Limited

  	
   

  	
  21/09/2005

  
	
  weldexpo.com

  	
   

  	
  Nexus Media Communications plc

  	
   

  	
  15/03/2005

  
	
  whattobuy.net

  	
   

  	
  Cumulus
  Business Media

  	
   

  	
  22/05/2005

  
	
  whattobuyforbusiness.co.uk

  	
   

  	
  Highbury Business Communications Ltd

  	
   

  	
  18/05/2005

  
	
  whattobuyforbusiness.com

  	
   

  	
  Highbury Business Communications Ltd

  	
   

  	
  21/09/2006

  
	
  whenyouarethere.com

  	
   

  	
  Highbury Columbus Travel Publishing Limited

  	
   

  	
  08/12/2007

  
	
  whenyouarethere.net

  	
   

  	
  Highbury Columbus Travel Publishing Limited

  	
   

  	
  08/12/2007

  
	
  whenyourethere.com

  	
   

  	
  Highbury Columbus Travel Publishing Limited

  	
   

  	
  08/12/2007

  
	
  whenyouarethere.co.uk

  	
   

  	
  Columbus Publishing Limited

  	
   

  	
  12/08/2006

  

 

93

 

	
  Domain

  	
   

  	
  Registered to

  	
   

  	
  Expiry Date

  
	
  worldcatchmap.net

  	
   

  	
  Highbury Business Limited

  	
   

  	
  01/11/2005

  
	
  whenyourethere.net

  	
   

  	
  Highbury Columbus Travel Publishing Limited

  	
   

  	
  08/12/2007

  
	
  whenyourthere.com

  	
   

  	
  Columbus Travel Publishing - (domain no longer
  required)

  	
   

  	
  28/07/2007

  
	
  whenyourthere.net

  	
   

  	
  Columbus Travel Publishing

  	
   

  	
  28/07/2007

  
	
  worldairportguide.com

  	
   

  	
  Highbury Columbus Travel Publishing Limited

  	
   

  	
  15/03/2009

  
	
  worldairportguide.net

  	
   

  	
  Columbus Publishing Limited

  	
   

  	
  10/07/2005

  
	
  worldairportguide.org

  	
   

  	
  Highbury Columbus Travel Publishing Limited

  	
   

  	
  10/07/2005

  
	
  worldcruiseguide.com

  	
   

  	
  Highbury Columbus Travel Publishing Limited

  	
   

  	
  12/05/2005

  
	
  worldeventsguide.com

  	
   

  	
  Columbus Publishing Limited

  	
   

  	
  12/04/2005

  
	
  worldfish.co.uk

  	
   

  	
  Highbury Nexus Media Limited

  	
   

  	
  30/12/2005

  
	
  worldfish.com

  	
   

  	
  Highbury-Nexus Limited

  	
   

  	
  30/11/2005

  
	
  worldfishing.net

  	
   

  	
  Nexus Media Limited

  	
   

  	
  13/12/2005

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  worldimageguide.com

  	
   

  	
  Highbury Columbus Travel Publishing Limited

  	
   

  	
  27/04/2006

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  worldimageguide.net

  	
   

  	
  Highbury Columbus Travel Publishing Limited

  	
   

  	
  27/04/2006

  
	
  worldofdefence.co.uk

  	
   

  	
  Highbury House Communications Plc (to be transferred
  to Highbury Columbus Travel Publishing Limited)

  	
   

  	
  04/04/2005

  
	
  worldofdefence.com

  	
   

  	
  Highbury-Nexus Limited

  	
   

  	
  04/04/2005

  
	
  worldofstudy.co.uk

  	
   

  	
  Nexus Media Limited

  	
   

  	
  13/02/2005

  
	
  worldofstudy.com

  	
   

  	
  Nexus Media Limited

  	
   

  	
  14/02/2005

  

 

94

 

	
  Domain

  	
   

  	
  Registered to

  	
   

  	
  Expiry Date

  
	
  worldtravelguide.co.uk

  	
   

  	
  Columbus Publishing Limited

  	
   

  	
  30/11/2005

  
	
  worldtravelguide.net

  	
   

  	
  Columbus Publishing Limited

  	
   

  	
  30/11/2009

  
	
  wtgonline.com

  	
   

  	
  Columbus Press Limited

  	
   

  	
  10/04/2005

  
	
  fishermansmanual.net

  	
   

  	
  Highbury Business

  	
   

  	
  01/11/2005

  
	
  worldcatchmap.net

  	
   

  	
  Highbury Business

  	
   

  	
  01/11/2005

  
	
  checkoutjobs.co.uk

  	
   

  	
  Highbury Business

  	
   

  	
  11/11/2006

  
	
  cibawards.com

  	
   

  	
  Highbury Business

  	
   

  	
  25/11/2005

  

 

95

 

SCHEDULE 11

 

Magazine Titles

 

Defence
Procurement Analysis

 

Underwater
Defence Technology (UDT) Forum

 

Asian
Electricity

 

Electrical
Review

 

Electrical
Times

 

European
Power News

 

International
Power Generation

 

Middle
Eastern Electricity

 

Motor
Trader

 

The
Motor Ship

 

Grower

 

Nurseryman
& Garden Centre*

 

Turf
& Amenity Management*

 

World
Fishing Magazine

 

Engineering
Distributor*

 

European
Quality Today*

 

Industrial
Equipment News

 

Laboratory
Update

 

Materials
Handling News

 

Quality
Today

 

Cabling
World*

 

Communication
News

 

European
Communications

 

International
Optical Communications

 

Mobile
Europe

 

Education
Resources & Management (to be named Specialist Schools Review from February
2005)

 

96

 

Education
Yearbooks*

 

Export
Times

 

Hotel
Spec

 

Office
Products Dealer

 

The
Hygienist

 

The
Probe

 

First
Magazine

 

The
Queen’s Award Magazine

 

Checkout

 

Harpers
The Wine & Spirit Weekly

 

Independent
Retail News

 

Shopspec

 

What
To Buy For Business

 

American
Society of Travel Agents (ASTA) Directory

 

Membership
Directory

 

World
Travel Atlas

 

World
Travel Guide

 

World
Travel Market Catalogue*

 

Directory
for the National Association of Shopfitters

 

Television
World

 

Electronics
World

 

Tourist
Attractions of the World

 

Travel
Planning Workbook

 

World
Travel Directory

 

World
Airport Guide

 

ASTA
Magazine

 

World
Fishing Magazine

 

*
Titles previously published

 

97

 

SCHEDULE 12

 

Exhibitions

 

European
Conference & Exhibition on Optical Communication (ECOC)

 

Liquid
Europe*

 

UDT
Europe

 

UDT
Pacific

 

Motor
Trader Industry Awards

 

Fruit
Focus

 

Grower
of the Year Awards

 

Icelandic
Fisheries Exhibition

 

Midland
Regional Growers Exhibition*

 

Northern
Regional Growers *

 

Nurseryman
& Garden Centre Awards

 

South
West Regional Growers

 

Vegetable
& Salads Focus*

 

World
Fishing Exhibition

 

Weldex

 

BOSS
Industry Awards

 

Distance
& Open Learning Fairs*

 

European
Hotel Design Awards

 

Postgraduate/MBA
Fairs*

 

Probe
Dental Awards

 

Trade
Partners UK International Business Awards

 

The
International Wine & Spirit Competition

 

Horticulture
in Focus Conference

 

Re-fresh
Conference and Awards Evening

 

Seafood
Awards

 

The
Retail Industry Awards

 

98

 

Excellence
Awards in Independent Retailing

 

Convenience
Retail Awards

 

Quality
Food and Drinks Awards

 

Europe
Power Conference and Exhibition

 

Domestic
Combined Heating and Power Conference

 

Motorship
Propulsion Conference

 

Education
Resource Awards

 

Broadband
Show

 

The
Training and Simulation Exhibition Conference

 

*
Previously organised

 

99

 

SCHEDULE 13

 

[Intentionally
deleted]

 

100

 

SCHEDULE 14

 

Transitional Arrangements

 

Transition Team

 

1.                                       Within 5
Business Days after the execution of this agreement, each of the Vendor and the
Purchaser will nominate one representative to form a transition team who will
during the period between the date of this agreement and Completion (“Transition Period”) co-ordinate, identify
and execute all activities reasonably required to enable the continued
operation of the Business by the Target Group after Completion in substantially
the same manner as conducted prior to the date hereof. Within 15 Business Days
after the date of this agreement, the parties shall prepare a detailed listing
of such transition activities.  The
Vendor shall allow the Purchaser reasonable access (amounting to one and a half
days per week) to Owen Davies and in addition to such other finance personnel
of the Vendor as are reasonably necessary to assist the Business during the
Transition Period and for two months thereafter.

 

2.                                       The Vendor
shall use all reasonable endeavours to assist the Purchaser during the Transition
Period (including the provision of such in-house legal and administrative
resources as may be reasonably necessary) with a view to ensuring that the
Target Group is able to operate the Business as a stand-alone business
following Completion in substantially the same manner as conducted prior to the
date hereof.  Without prejudice to the
foregoing, the Vendor and the Purchaser shall comply with the following
provisions of this schedule.

 

Accounting Systems

 

3.                                       The Vendor
shall use all reasonable endeavours during the Transition Period to assist the
Purchaser to create and establish a stand-alone accounting system for use by
the Target Group, and shall as soon as reasonably possible after the date of
this agreement (and at the Vendor’s cost):

 

3.1                                 to the
extent the Vendor is permitted to do so, transfer to the Target Group all
rights, title and interest in the two servers (“Accounts Servers”) used by the Vendor as at the date of this
agreement to provide the accounting system for the Target Group;

 

3.2                                 to the
extent the Vendor is permitted to do so, transfer to the Target Group all
rights, title and interest held by the Vendor in the software (known as “Tetra”)
(“Tetra Software”) that operates
on the Accounts Servers, and if it is determined prior to Completion that the
Vendor is unable to transfer such rights, title and interest in the Tetra
Software, the Vendor shall use all reasonable endeavours to assist the
Purchaser to acquire a licence for the Target Group (for the avoidance of doubt
at the Vendor’s cost) to use the Tetra Software on the Accounts Servers for the
purpose of the Business from the owner of the Tetra Software.

 

Bank Accounts

 

4.                                       The Vendor
shall use all reasonable endeavours to ensure that, as soon as reasonably
possible (but no later than 30 days) after the date of this agreement,
customers and other payees of the Target Group are notified in writing that
future payments to the Target Group should be made into one of the bank
accounts in the name of a member of the Target Group, (including the changing
of direct debit details and notifying customers of the changes in account
details).

 

101

 

Credit Card Payment

 

5.                                       As soon as
reasonably practicable after the date of this agreement, the Vendor shall (at
its cost) change the bank account details to which all credit card payments for
the Business are credited from the Vendor’s bank account to a bank account
established in the name of a member of the Target Group.

 

Purchase Ledger

 

6.                                       The Vendor
confirms that at the date hereof the Business is operated through a stand-alone
purchase ledger relating only to the Business located at Media House.

 

7.                                       Without
prejudice to the Vendor’s right to retain and use such data, from the date of
this agreement until the date falling 3 months after Completion, the Vendor
shall provide to the Purchaser copies of such historic data relating to the
Business held on the Vendor’s Purchase Ledger as the Purchaser may reasonably
request (subject always to the provisions of clause 20 (Confidentiality)).

 

Payroll and Personnel

 

8.                                       From
Completion until the date falling 3 months after Completion (or such earlier
date as the Purchaser may notify the Vendor in writing by not less than 10
Business Days notice), the Vendor shall provide (or procure the provision of)
payroll services, as (at the date of this agreement) provided by the Vendor
(including the handling of the Forms P60 for 2004), for the Target Group.

 

9.                                       Such
payroll services shall be provided at a cost of £1,500 per month which shall be
payable by the Purchaser monthly in arrears.

 

Insurance

 

10.                                 The
parties hereby acknowledge that:

 

10.1                           the Vendor
has a group-wide insurance arrangement in place; and

 

10.2                           each party
will work together and request their insurance advisors to negotiate the
transition of the relevant insurance cover from the Vendor for the benefit of
the Target Group following Completion and the Vendor will provide the Purchaser
and its insurance advisors with all necessary information provided that the
Vendor shall not be required to incur any cost in connection with such
transition or in respect of the Target Group’s insurances following Completion.

 

11.                                 The Vendor
shall notify the Purchaser promptly following any termination or modification
of the directors’ and officer’s insurance currently held by the Vendor with
respect to the Vendor’s Group insofar as it relates to the period prior to
Completion and the Target Group.  The
Vendor shall notify the Purchaser as to which of the directors of the Target Group
are covered under the Vendors’ D&O Policy.

 

Distribution

 

12.                                 Certain
Magazine Titles are currently distributed by Seymour under the terms of an
arrangement with the Vendor (the “Seymour
Arrangement”).  It is contemplated that the Vendor may sign a
new contract with Seymour with respect to the Seymour Arrangement (“New Seymour Contract”).

 

102

 

13.                                 If the
Vendor signs a New Seymour Contract or otherwise continues the Seymour
Arrangement without entering into a New Seymour Contract, it will ensure that
the Magazine Titles in question will for the duration of the Seymour
Arrangement or of the New Seymour Contract continue to be distributed by
Seymour on substantially the same terms as those on which such Magazine Titles
are distributed at the time of this agreement and the Purchaser shall reimburse
the Vendor for the cost of such distribution.

 

14.                                 If the
Vendor elects to terminate the Seymour Arrangement or the Seymour Arrangement
otherwise ceases to apply to the Magazine Titles in question (otherwise than
due to the entering into of a New Seymour Contract), the Vendor will request
any replacement distributor with whom it enters into negotiations or
discussions to consider agreeing to distribute the Magazine Titles in question,
on the same terms as it offers for the distribution of the Vendor’s other
Magazine Titles and the Vendor will use all reasonable endeavours (but for the
avoidance of doubt without incurring any cost or detriment) to persuade the
replacement distributor to do so and will notify the Purchaser of the details
of such replacement distributor and assist the Purchaser in meeting it.

 

Vehicle Leasing

 

15.                                 The Vendor
shall use all reasonable endeavours to make arrangements for the continued use by
the Target Group and the employees of the Target Group (whether by lease,
sub-lease or otherwise), following Completion, of the 24 motor vehicles (the “Vehicles”) currently leased by the Vendor
for use in connection with the Business. 
The parties acknowledge that the preferred option is to have the vehicle
leasing company enter into direct lease arrangements with a member of the
Target Group.  If that is not in the
Vendor’s opinion reasonably practicable, then to the extent permitted by the
leasing arrangements in place between the Vendor and the vehicle leasing
company (the “leasing arrangements”),
the Vendor will, during the continuance of the leasing arrangements for each
Vehicle, sub-lease such Vehicle to a member of the Target Group, subject to the
payment by the Target Group of the costs incurred by the Vendor with respect to
such Vehicle under the leasing arrangements and subject to the Purchaser
indemnifying the Vendor against any loss incurred by the Vendor as a result of
the Target Group’s use of the Vehicles.

 

Photocopiers and any other leased assets

 

16.                                 The Vendor
will use all reasonable endeavours to enable the Target Group to continue
following Completion to have the benefit and use of any equipment and other
assets currently used in connection with the Business, to the extent that such
assets are leased or hired by a member of the Vendor’s Group and to the extent
permitted by the relevant lease or hire agreement.  Without prejudice to the foregoing, the
parties will enter into such arrangements as they consider practically
expedient in order to achieve such aim and the Target Group will reimburse to
the Vendor any costs incurred by it in connection with such arrangement.  The Purchaser indemnifies each member of the
Vendor Group for any loss incurred by such Vendor Group member as a result of
the Target Group’s use of such assets.

 

Subscription Management and Controlled Circulation
(Fulfilment)

 

17.                                 The Vendor
will use all reasonable endeavours, with a view to achieving the same as soon
as reasonably practicable (but in any event before the date falling 10 Business
Days before Completion), to carry out all necessary system integration and
other work in order to effect the transfer of controlled circulation and
subscription management services from Highbury - Wyvern to an alternative
provider of such services.

 

103

 

Employment of Anthony Salter

 

18.                                 If
requested to do so by the Purchaser (and provided that Anthony Salter shall
have entered into a new employment contract with the Purchaser or with a member
of the Target Group), the Vendor will, with effect from Completion, waive any
notice period required under the current employment contract of T Salter and
the restrictive covenants in clause 13.1.4, 13.1.6 and 13.1.8 thereof.

 

Pensions

 

19.                                 In this
section of the schedule the following terms will have the following meanings:

 

	
   

  	
  “Vendor’s New Scheme”

  	
   

  	
  means
  the pension arrangements established or nominated by the Vendor for the
  purposes of this section;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Nexus Scheme”

  	
   

  	
  means
  the Nexus Group Pension Scheme established by the trust deed dated 12 August
  1993;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Retained Members”

  	
   

  	
  means
  those persons who immediately prior to Completion are contributing members of
  the Nexus Scheme employed by a Relevant Highbury Company; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  “Relevant Highbury Company”

  	
   

  	
  means
  a company participating in the Nexus Scheme which at Completion is controlled
  by or closely associated in business with the Vendor and which is not one of
  the Companies or one of the Subsidiaries.

  

 

20.                                 As soon as
practicable after Completion the Vendor shall nominate a retirement benefits
scheme as the Vendor’s New Scheme for the purposes of these provisions.

 

21.                                 The Vendor’s
New Scheme shall be drawn and designed by the Vendor to provide retirement and
death benefits of the same amount and on the same basis as have been provided
under the Nexus Scheme immediately prior to Completion. The Vendor’s New Scheme
shall be capable of accepting a transfer of assets from the Nexus Scheme in respect
of the entitlements in the Nexus Scheme of any of the Retained Members who wish
to have their accrued benefits transferred from the Nexus Scheme to the Vendor’s
New Scheme.

 

22.                                 The
Purchaser shall use all reasonable endeavours to procure that the Trustees of
the Nexus Scheme shall facilitate any transfer of assets representing the
interests of each of the Retained Members who requests or consents to a
transfer being made in respect of his interests in the Nexus Scheme to the
Vendor’s New Scheme free of any deductions, charges or expenses being applied
against interests of any of the Retained Members.

 

23.                                 To the
extent that any costs expenses or charges are incurred by the trustees of the
Nexus Scheme in giving effect to the terms of these pension provisions they
shall be borne by the Vendor .

 

104

 

Intellectual Property

 

24.                                 As soon as
reasonably possible after the date of this agreement (and in any event before
Completion), the Vendor shall make such applications and proceed with such
ongoing procedures as are necessary to procure (i) the registration, in the
name of a Target Group member, of any of the Domain Names or Trademarks that
are not so registered at the date of this agreement and (ii) the renewal of any
Domain Names or Trademarks that are due for renewal at the date hereof or which
fall due for renewal before the Completion Date (other than those Domain Names
or Trademarks which are agreed to be allowed to lapse).

 

Software

 

25.                                 As soon as
reasonably possible after the date of this agreement (and in any event no later
than 10 Business Days before Completion), the Vendor shall (at its cost)
acquire and/or transfer to the Target Group, for the benefit of the Target
Group following Completion, the licences for the software and web tools listed
in schedule 15 (the “Listed Software”).

 

26.                                 On the
Completion Date the Vendor shall (and shall procure that each member of the
Vendor Group shall) and the Purchaser shall (and shall procure that each member
of the Target Group shall) to the extent that such company owns any
Intellectual Property in the Expresso Content Management Software (and subject
to the terms of the open source
GNU GPL licence under which certain modules are used) grant to the other a perpetual,
non-exclusive, royalty free, transferable licence to use, copy, modify, develop
and exploit the Expresso Content Management Software.

 

Contracts

 

27.                                 If, before
or after Completion, either party or any Target Group member receives notice
from any counterparty to any contract or agreement to which any Target Group
member is a party, indicating that as a result of the transactions contemplated
by this agreement such counterparty wishes to terminate the contract in
question or otherwise modify the terms on which it is prepared to deal with the
Target Group member, the Vendor shall provide such assistance to the Target
Group member as the Purchaser may reasonably request (but without the
obligation to incur any cost) with a view to avoiding such termination or
modification of terms.

 

28.                                 The Vendor
agrees to use all reasonable endeavours (if requested by the Purchaser) to
ensure that any contract that relates solely to the Business but that is held
by a member of the Vendor’s Group (including contracts relating to the ECOC
exhibition and contracts for telephone and electricity services to Media House)
are transferred to a member of the Target Group as soon as reasonably
practicable after the date of this agreement. 
If it is not possible or practicable to transfer such arrangements
(whether because any third party fails to give its consent or otherwise), then
unless and until it such arrangements are transferred, the Target Group shall
be entitled, for its own benefit and at its own cost and to the extent that the
arrangements permit, to perform and discharge on behalf of the Vendor all the
outstanding obligations and liabilities of the Vendor under such arrangements,
provided that it shall indemnify the Vendor with respect to any Losses incurred
by the Vendor as a result of such performance and discharge or non-performance.

 

29.                                 The Vendor
acknowledges that, notwithstanding that any such contract relating to the
Business may have been entered into with the Vendor, any benefits accruing
therefrom shall be for the account of the Target Group subject to the Target
Group assuming the burden thereof.

 

105

 

Accounting for receipts

 

30.                                 If at any
time after Completion any payment in relation to the Business (whether from a
customer or otherwise) is received by the Vendor or any other member of the
Vendor’s Group, or any payment relating to the business of the Vendor’s Group
is received by the Purchaser or any member of the Target Group, the Vendor or
the Purchaser (as the case may be) shall procure that the amount of such
payment is promptly paid to a member of the Target Group or to the Vendor (as
the case may be).

 

US GAAP Accounts

 

31.                                 From the
date hereof, the Vendor shall (at the Purchaser’s cost in respect of third
party out of pocket expenses) provide such co-operation, access to personnel
and working papers and other assistance as the Purchaser may reasonably request
in connection with the preparation of the US GAAP Accounts, with a view to
enabling the same to be prepared within 20 Business Days following
Completion.  The Vendor acknowledges that
separate audit processes may be ongoing simultaneously with respect to the
Statutory Accounts and the US GAAP Accounts. 
The Vendor will use all reasonable endeavours to ensure that the
preparation of the US GAAP Accounts is not hindered or delayed by such
simultaneous audit processes.

 

32.                                 Following
Completion, the Vendor shall (at the Purchaser’s cost, save as provided in
clause 17.3) continue to assist and co-operate with the Purchaser in connection
with any matters required to be filed by the Purchaser with the Securities
Exchange Commission or other regulatory body in the United States of America,
including the provision of any information reasonably required with respect to
the Accounts and the financial statements prepared with respect to any Target
Group member prior to Completion.

 

VAT

 

33.                                 The Vendor
shall ensure that, as soon as reasonably practicable after the date of this
agreement, it files such forms and makes such application as are necessary to
remove the Target Group from the Vendor’s current VAT grouping arrangements and
to obtain a separate VAT group registration for the Target Group.

 

Dividends and Repayment of Intercompany Loans

 

34.                                 The Vendor
and the Purchaser agree that prior to Completion members of the Target Group
shall, notwithstanding any other provision of this agreement be entitled:

 

34.1                           to enter
into a netting off agreement pursuant to which all debts owed by the Target
Group to the Vendor Group may be netted off against all debts owed by the
Vendor Group to the Target Group, such agreement to be approved in advance by
the Purchaser, such approval not to be unreasonably withheld or delayed; and

 

34.2                           to declare
and pay (whether in cash or by way of settlement of any intercompany debt)
dividends,

 

provided
that the Vendor agrees to indemnify the Purchaser and each Target Group member
for any Losses any of them may suffer as a result of any illegality in relation
to the arrangements referred to in paragraphs 34.1 and 34.2.

 

106

 

Bank Accounts

 

35.                                 As soon as
reasonably practicable the Vendor will provide the Purchaser with details of
all bank accounts maintained or used by any Target Group member (including, in
each case, the name and address of the bank with whom the account is kept and
the number and nature of the account) and the terms of each overdraft, loan or
other financial facility.  The Vendor
shall ensure that such bank accounts shall have designated operational
chequebooks at Completion.

 

107

 

SCHEDULE 15

 

Listed Software

 

	
  Highbury
  Business Software Requirements

  	
   

  	
  Number of Licences

  
	
  Server
  Room

  	
   

  	
   

  
	
  Veritas Backup Exec

  	
   

  	
  5

  
	
  Veritas Backup Exec SQL agent

  	
   

  	
  3

  
	
  Veritas Backup Exec Remote
  agent

  	
   

  	
  4

  
	
  Veritas Backup Exec
  Exchange agent

  	
   

  	
  2

  
	
   

  	
   

  	
   

  
	
  Layout
  Software

  	
   

  	
   

  
	
  Adobe Creative Suite
  Premium Mac

  	
   

  	
  3

  
	
  Adobe Creative Suite
  Premium PC

  	
   

  	
  4

  
	
  Adobe Photoshop CS

  	
   

  	
  6

  
	
  Adobe Illustrator CS

  	
   

  	
  1

  
	
  Quark 3 to 6

  	
   

  	
  41

  
	
  Agfa Apogee Create 2

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  Web

  	
   

  	
   

  
	
  Macromedia MX 2004 Studio

  	
   

  	
  2

  
	
  Homesite

  	
   

  	
  1

  
	
  Macromedia Flash MX 2004

  	
   

  	
  2

  
	
   

  	
   

  	
   

  
	
  Fonts

  	
   

  	
   

  
	
  Adobe Font Folio

  	
   

  	
  4

  
	
   

  	
   

  	
   

  
	
  Windows Server

  	
   

  	
  15

  
	
  Windows Server CAL

  	
   

  	
  300

  
	
  SQL Server

  	
   

  	
  3

  
	
  SQL CAL

  	
   

  	
  20

  
	
  Exchange 2003 Server

  	
   

  	
  2

  
	
  Exchange CAL

  	
   

  	
  300

  
	
  Office 2003 Pro

  	
   

  	
  20

  
	
  Office 2003 Standard

  	
   

  	
  160

  
	
  Office 2001/X for Mac

  	
   

  	
  48

  
	
  Windows XP

  	
   

  	
  200

  

 

108

 

	
  EXECUTED (but
  not delivered until the date

  hereof) as a deed by HIGHBURY HOUSE

  COMMUNICATIONS PLC acting by two

  directors or one director and the secretary:

  	
   

  	
  )

  )

  )

  )

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Director

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Director/Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXECUTED (but
  not delivered until the date

  hereof) as a deed by ERGO SCIENCE

  CORPORATION acting
  by                    who,
  in

  accordance with the laws of the State of Delaware,

  is acting under the authority of that company:

   

  	
   

  	
  )

  )

  )

  )

  )

  )

  

 

109Exhibit 10.10

APROPOS TECHNOLOGY,
INC.

FORM OF

INCENTIVE STOCK OPTION

THIS INCENTIVE STOCK
OPTION, dated as of
                 ,
2005, is granted by APROPOS TECHNOLOGY, INC., an Illinois corporation (“Apropos”), to                        
(the “Employee”) pursuant to, and subject to
the terms and conditions of, the Apropos Technology, Inc. 2000 Omnibus
Incentive Plan, as Amended and Restated (the “Plan”).
Terms used but not defined herein shall have the meanings ascribed to them in
the Plan.

1.                 OPTION GRANT

Apropos hereby grants to the Employee an option to
purchase a total of                        Apropos
common shares at an option exercise price of $          
per share, being not less than 100% of the fair market value per common share
on the date hereof, and being the closing price per Apropos common share as
reported on Nasdaq for the last trading day preceding the date hereof.

This option is intended to
qualify as an “incentive stock option” within the meaning of Section 422
of the Internal Revenue Code of 1986, as amended (the “Code”).

2.                 VESTING AND EXERCISE

This option shall vest (and to the extent vested may
be exercised in whole or in part, at any time and from time to time, subject to
the terms hereof) during the term of Employee’s continued employment with
Apropos to a maximum cumulative extent of 25% of the total shares covered
hereby on and after the first anniversary of the date hereof (with no shares
vesting prior to such date) and for an additional 1/48 of the total shares
covered hereby for each complete calendar month that elapses after such date;
and shall be fully vested and exercisable on and after the fourth anniversary
of the date hereof.

If Employee’s employment
terminates as a result of either (i) a Corporate Transaction (as defined in
paragraph 6 hereof) in which this option is not continued, assumed or
substituted for, or (ii) Employee’s permanent total disability or death,
the remaining shares covered by this option shall vest and become fully
exercisable.

3.                 EXERCISE FOLLOWING TERMINATION OF EMPLOYMENT

Notwithstanding
anything contained herein to the contrary, this option may not be exercised
(and shall terminate and be of no further force or effect):

(a)    more than
three months after termination of employment (including employment with a
Successor as provided in paragraph 6 below) for any reason other than
retirement, permanent total disability or death;

(b)   more than
six months after termination of employment by reason of retirement or permanent
total disability;

(c)    more than
one year after death or more than six months after death, if employment was
previously terminated and the option was exercisable at the time of death; or

(d)   more than
ten years from the date hereof;

and in each case only to the extent vested and
exercisable on the date of termination of employment.

  
 

Retirement and permanent
total disability shall be determined in accordance with the established
policies of Apropos as determined by the Committee.

4.                 METHOD OF EXERCISE

This option may be
exercised only by written notice delivered to the Secretary of Apropos and
accompanied by:

(a)    a check
payable to the order of Apropos for the full purchase price of the shares
purchased; and

(b)   such other
documents or representations as Apropos may reasonably request in order to
comply with securities, tax or other applicable laws.

At the sole discretion of the Committee, payment of
the purchase price may be made in whole or in part by the delivery of common
shares owned by the Employee for at least six months, valued at fair market
value on the date of exercise, or by execution and delivery of a promissory
note containing terms and conditions established by the Committee.

This option may not be
exercised for less than 100 shares, except where the remaining number of shares
represented by the option is less than 100, in which case the option shall not
be exercised for less than all of the shares subject to the option.

5.                 NON-TRANSFERABILITY; DEATH

This option is not
transferable by the Employee otherwise than by will or the laws of descent and
distribution and is exercisable during the Employee’s lifetime only by the
Employee. Following Employee’s death, this option may be exercised in
accordance with its terms by the Employee’s estate or the person to whom the
option passes by will or the laws of descent and distribution, but only (a) within
the period permitted under paragraph 3(c) hereof after the Employee’s
death or (b) ten years from the date hereof, whichever period is shorter. At
the sole discretion of the Committee, this option may be transferred by the
Employee to members of the Employee’s immediate family or trusts or family
partnerships for the benefit of the Employee or family members, subject to
terms and conditions established by the Committee.

6.                 CORPORATE TRANSACTIONS

In the event of either (a) a merger,
consolidation, share exchange or similar transaction involving Apropos, or (b) the
sale or transfer of substantially all of Apropos’ assets ( each a “Corporate Transaction”), this option may be continued by
Apropos or assumed or substituted for by the resulting, surviving or purchasing
entity (“Successor”), at the option of Apropos
or the Successor, as long as in the case of a Successor (i) the Successor
continues the employment of Employee and (ii) the aggregate intrinsic
value (difference between per share value and exercise price) of any option
issued by a Successor is not less than the aggregate intrinsic value of this
option on the effective date of the Corporate Transaction and the vesting
provisions, rights to exercise, remaining option period and other significant
provisions remain the same. In each such case, this option (as continued,
assumed or substituted) shall continue to vest and be exercisable in accordance
with its terms. The continuation, assumption or substitution may occur even
though it results in the loss of Incentive Stock Option status.

In the event that Apropos does not elect to continue
this option or the Successor does not agree to assume or substitute for this
option following a Corporate Transaction, Apropos shall so notify the Employee
and (subject to the condition that the Corporate Transaction is consummated)
this option shall become fully vested and exercisable thirty days prior to the
scheduled effective date of the Corporate 

 2
  
 

Transaction and shall
terminate on the effective date of the Corporate Transaction with any exercise
to occur immediately prior to the effective time of the Corporate Transaction.

In the event this option is continued, assumed or
substituted for following a Corporate Transaction and Employee’s employment is
terminated by Apropos or the Successor less than 6 months after the
effective date of the Corporate Transaction, this option (as continued, assumed
or substituted) shall become fully vested and exercisable upon the date of
termination of employment.

Except as expressly provided in this option and
notwithstanding anything to the contrary in the Plan, a Change in Control shall
not accelerate vesting of this option or have any other effect on the terms or
conditions of this option.

IN
WITNESS WHEREOF, Apropos has caused the execution hereof by a duly authorized
officer and Employee has agreed to the terms and conditions of this option, all
as of the date first written above.

	
  

  	
   

  	
  APROPOS TECHNOLOGY, INC.

  
	
  Employee

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
						

 

 3

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