Document:

Exhibit 10.1

 

COMPANY NO.  5505187

 

 

THE COMPANIES ACT 1985

 

 

 

PRIVATE COMPANY LIMITED BY SHARES

 

 

 

ARTICLES OF ASSOCIATION

 

of

 

PRICELINE.COM INTERNATIONAL LIMITED

 

 

(Adopted
by written resolution passed on 14 July 2005)

 

 

 

Baker &
McKenzie LLP

 

London

Ref: DXA

 

1

 

1.                                      PRELIMINARY

 

1.1                                 These Articles constitute the Articles of the Company.  Table A is excluded for the purposes of section 8(2) of
the Act.

 

2.                                      INTERPRETATION

 

2.1                                 In these Articles:

 

2.2                                 the following words
and expressions have the following meanings:

 

“2006 Series B
Exercise Period” means the period beginning on the third Business
Day after the directors have served the 2006 Series B Valuation Report on each B Ordinary
Shareholder and ending on the tenth Business Day after such date of service;

 

“2006 Series C
Exercise Period” means the period beginning on the third Business
Day after the directors have served the 2006 Series C Valuation Report on each C Ordinary
Shareholder and ending on the tenth Business Day after such date of service;

 

“2006 Series B
Valuation Report” means the Valuation Report prepared by the
directors in accordance with Article 13.4 below which sets out the Option
Price for any shares subject to an Exercise Notice during the 2006 Series B
Exercise Period;

 

“2006 Series C
Valuation Report” means the Valuation Report prepared by the
directors in accordance with Article 13.4 below which sets out the Option
Price for any shares subject to an Exercise Notice during the 2006 Series C
Exercise Period;

 

“2007 Series B
Exercise Period” means the period beginning on the third Business
Day after the directors have served the 2007 Series B Valuation Report on each B Ordinary
Shareholder and ending on the tenth Business Day after such date of service;

 

“2007 Series C
Exercise Period” means the period beginning on the third Business
Day after the directors have served the 2007 Series C Valuation Report on
each C Ordinary Shareholder and ending on the tenth Business Day after such
date of service;

 

“2007 Series B
Valuation Report” means the Valuation Report prepared by the
directors in accordance with Article 13.4 below which sets out the Option
Price for any shares subject to an Exercise Notice during the 2007 Series B
Exercise Period;

 

“2007 Series C
Valuation Report” means the Valuation Report prepared by the
directors in accordance with Article 13.4 below which sets out the Option
Price for any shares subject to an Exercise Notice during the 2007 Series C
Exercise Period;

 

“2008 Series B
Exercise Period” means the period beginning on the third Business
Day after the directors have served the 2008 Series B Valuation Report on
each B Ordinary Shareholder and ending on the tenth Business Day after such
date of service;

 

“2008 Series C
Exercise Period” means the period beginning on the third Business
Day after the directors have served the 2008 Series C Valuation Report on each C Ordinary
Shareholder and ending on the tenth Business Day after such date of service;

 

“2008 Series B
Valuation Report” means the Valuation Report prepared by the
directors in accordance with Article 13.4 below which sets out the Option
Price for any shares subject to an Exercise Notice during the 2008 Series B
Exercise Period;

 

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“2008 Series C
Valuation Report” means the Valuation Report prepared by the
directors in accordance with Article 13.4 below which sets out the Option
Price for any shares subject to an Exercise Notice during the 2008 Series C
Exercise Period;

 

“A
Ordinary Shareholder” means the holder of the A Ordinary Shares in
the Company unless there is more than one holder of the A Ordinary Shares in
which case any reference in these Articles to the “A Ordinary Shareholder”
shall be construed as meaning the holder of the majority of the A Ordinary
Shares or in the event that there is no such majority holder, to each of the
holders of the A Ordinary Shares;

 

“A
Ordinary Shares” means the A Ordinary Shares of 0.1 pence each in
the Company;

 

“Accounts”
means the audited balance sheet and profit and loss account of the Company,
including all notes, reports, statements and other documents annexed to them;

 

“Act”
means the Companies Act 1985 including any statutory modification or
re-enactment thereof for the time being in force;

 

“address” in
relation to an electronic communication, includes any number or address used
for the purposes of such communication;

 

“Adjustment” means an adjustment to the shares and/or the Option Price in
accordance with Article 13.14 below;

 

“Affiliate” means an affiliate of Priceline, as
defined in Rule 12b-2 promulgated under Section 12 of the Exchange Act;

 

“Arbitrator” means PwC or such other person
appointed pursuant to Article 13.8;

 

“Articles”
means the articles of association of the Company;

 

“auditors” means the auditors of the
Company;

 

“Bad
Leaver” means a B Ordinary Shareholder who ceases to be an employee
of a Group Company other than as a Good Leaver;

 

“Beneficial Owner” 
has the meaning set forth in Rule 13d-3 under the Exchange
Act;

 

“Board”  means the board of
directors of Priceline;

 

“B
Ordinary Shareholder” means any holder of B Ordinary Shares in the
Company;

 

“B
Ordinary Shares” means the B Ordinary Shares of 0.1 pence each in
the Company;

 

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

 

“Call
Exercise Notice” means the notice of exercise of the Call Option
setting out the number of B Ordinary Shares or C Ordinary Shares in relation to
which the A Ordinary Shareholder intends to exercise the Call Option;

 

“Call
Option” means the call option granted by each B Ordinary
Shareholder and C Ordinary Shareholder to the A Ordinary Shareholder under Article 10.1;

 

“Change in
Control” means the occurrence of
any one of the following events:

 

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(i)                                     any Person is or becomes the
Beneficial Owner, directly or indirectly, of securities of Priceline
representing thirty-five percent (35%) or more of the combined voting power of
Priceline’s then outstanding securities eligible to vote for the election of
the Board (the “Priceline Voting Securities”); provided, however, that the
event described in this paragraph (i) shall not be deemed to be a
Change in Control if such event results from the acquisition of Priceline
Voting Securities pursuant to a Non-Qualifying Transaction (as defined in
paragraph (iii) below);

 

(ii)                                  individuals who, on the Grant
Date, constitute the Board (the “Incumbent Directors”) cease for any reason to
constitute at least a majority of the Board; provided, however, that any person
becoming a director subsequent to 14 July 2005, whose election or
nomination for election was approved (either by a specific vote or by approval
of the proxy statement of Priceline in which such person is named as a nominee
for director, without written objection to such nomination) by a vote of at
least two-thirds of the directors who were, as of the date of such approval,
Incumbent Directors, shall be an Incumbent Director; provided, further, that no
individual initially appointed, elected or nominated as a director of Priceline
as a result of an actual or threatened election contest with respect to the
election or removal of directors or as a result of any other actual or threatened
solicitation of proxies or consents by or on behalf of any person other than
the Board shall be deemed to be an Incumbent Director;

 

(iii)                               the consummation of a merger,
consolidation, statutory share exchange or similar form of corporate transaction
involving (A) Priceline or (B) any of its wholly owned subsidiaries
pursuant to which, in the case of this clause (B), Priceline Voting Securities
are issued or issuable (any event described in the immediately preceding clause
(A) or (B), a “Reorganization”) or the sale or other disposition of all or
substantially all of the assets of Priceline to an entity that is not an
Affiliate (a “Sale”), unless immediately following such Reorganization or Sale:
(1) more than 50% of the total voting power (in respect of the election of
directors, or similar officials in the case of an entity other than a
corporation) of (x) Priceline (or, if Priceline ceases to exist, the
entity resulting from such Reorganization), or, in the case of a Sale, the
entity which has acquired all or substantially all of the assets of Priceline
(in either case, the “Surviving Entity”), or (y) if applicable, the
ultimate parent entity that directly or indirectly has Beneficial Ownership of
more than 50% of the total voting power (in respect of the election of
directors, or similar officials in the case of an entity other than a
corporation) of the Surviving Entity (the “Parent Entity”), is represented by
Priceline Voting Securities that were outstanding immediately prior to such
Reorganization or Sale (or, if applicable, is represented by shares into which
such Priceline Voting Securities were converted pursuant to such Reorganization
or Sale), (2) no Person is or becomes the Beneficial Owner, directly or
indirectly, of 35% or more of the total voting power (in respect of the
election of directors, or similar officials in the case of an entity other than
a corporation) of the outstanding voting securities of the Parent Entity (or,
if there is no Parent Entity, the Surviving Entity) and (3) at least a
majority of the members of the board of directors (or similar officials in the
case of an entity other than a corporation) of the Parent Entity (or, if there
is no Parent Entity, the Surviving Entity) following the consummation of the
Reorganization or Sale were, at the time of the approval by the Board of the
execution of the initial agreement providing for such Reorganization or Sale,
Incumbent Directors (any Reorganization or Sale which satisfies all of the
criteria specified in (1), (2) and (3) above being deemed to be a “Non-Qualifying
Transaction”); or

 

(iv)                              the stockholders of Priceline approve a
plan of complete liquidation or dissolution of Priceline.

 

Notwithstanding the foregoing, (I) if any
Person becomes the Beneficial Owner, directly or indirectly, of 35% or more of
the combined voting power of Priceline Voting Securities solely as a result of
the acquisition of Priceline Voting Securities by Priceline which reduces the

 

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number of Priceline Voting Securities
outstanding, such increased amount shall be deemed not to result in a Change in
Control; provided, however, that if such Person subsequently becomes the
Beneficial Owner, directly or indirectly, of additional Priceline Voting Securities
that increases the percentage of outstanding Priceline Voting Securities
Beneficially Owned by such Person, a Change in Control of Priceline shall then
be deemed to occur and (II) the acquisition following 14 July 2005 of
Priceline Voting Securities by Hutchison Whampoa Limited, Cheung Kong
(Holdings) Limited or any of their Affiliates shall be deemed not to result in
a Change in Control until such time as Hutchison Whampoa Limited, Cheung Kong
(Holdings) Limited or any of their Affiliates become the Beneficial Owners in
the aggregate of 50% or more of the combined voting power of Priceline Voting
Securities (and for this purpose the preceding clause (I) shall not apply);

 

“Change
in Control Window” means the period beginning on a Change in Control
and ending on the tenth Business Day after such date;

 

“clear
days” in relation to the period of a notice means that period
excluding the day when the notice is given or deemed to be given and the day
for which it is given or on which it is to take effect;

 

“communication”
means the same as in the Electronic Communications Act 2000;

 

“C Ordinary Shareholder” means any holder of
C Ordinary Shares in the Company;

 

“C Ordinary Shares” means the C Ordinary
Shares of 0.1 pence each in the Company;

 

“director” means, except where the
context otherwise requires, a director of the Company and “directors” means the directors or any of
them acting as the board of directors of the Company;

 

“electronic communication” means the same as in the
Electronic Communications Act 2000;

 

“Exercise
Date” means the date on which any B Ordinary Shareholder, C Ordinary
Shareholder or the A Ordinary Shareholder (as the case may be) serves an
Exercise Notice;

 

“Exercise
Notice” means a Call Exercise Notice or a Put Exercise Notice (as
the case may be);

 

“Exchange Act” 
means the
Securities Exchange Act of 1934, as amended from time to time;

 

“Fair
Market Value” means a price per share determined in accordance with Article 13.2;

 

“Good
Leaver” means a B Ordinary Shareholder who ceases to be an employee
of a Group Company as a result of his:

 

(i)                                     death; or

 

(ii)                                  being dismissed or otherwise ceasing employment by reason of absence
from work due to ill health or accident (save for ill health which arises as a
result of an abuse of drink or drugs), provided that the relevant Shareholder
delivers to a Group Company a medical certificate signed by a doctor duly
evidencing his ill health or accident and provided further that the Group
Company reserves the right to require such Shareholder to undergo a medical
examination by a doctor or consultant nominated by it; or

 

(iii)                               retirement once the Shareholder reaches the age of 60;

 

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(iv)                              being made
redundant by a Group Company.

 

“Granted
Securities” means those B Ordinary Shares which were acquired in
exchange for granted B ordinary shares in Active Hotels Limited which the
relevant B Ordinary Shareholder originally subscribed for at a price of 0.1
pence per share;

 

“Group Company” means the Company and any Subsidiary, parent or associated company;

 

“holder” in relation to shares means
the member whose name is entered in the register of members as the holder of
the shares;

 

“Institute
of Chartered Accountants” means the Institute of
Chartered Accountants in England & Wales, whose postal address is Chartered
Accountants’ Hall, PO Box 433, London EC2P 2BJ;

 

“Office”
means the registered office of the Company;

 

“Option”
means either or both of the Call Option and the Put Option (as the context
requires);

 

“Option
Price” means in respect of: (a) Granted Securities which have
Vested, Purchased Securities and C Ordinary Shares, Fair Market Value; and (b) in
respect of Granted Securities which have not Vested 0.1 pence per share;

 

“Person” 
has the meaning set forth in Section 3(a)(9) of the Exchange
Act, as modified and used in Sections 13(d) and 14(d) thereof, except
that such term shall not include (1) Priceline or any of its subsidiaries,
(2) a trustee or other fiduciary holding securities under an employee
benefit plan (or related trust) sponsored or maintained by Priceline or any of
its subsidiaries, (3) an underwriter temporarily holding securities
pursuant to an offering of such securities, (4) a corporation owned,
directly or indirectly, by the stockholders of Priceline in substantially the
same proportions as their ownership of Priceline Shares;

 

“Priceline”
means Priceline.com, Incorporated whose principal place of business is 800
Connecticut Avenue, Norwalk, CT06854, USA;

 

“Priceline
Shares” means common stock, of par value $0.008 per share of Priceline
registered on NASDAQ or of such other par value as such common stock may
convert into;

 

“Purchased
Securities” means those B Ordinary Shares which were acquired in
exchange for purchased B ordinary shares in Active Hotels Limited which the
relevant B Ordinary Shareholder originally subscribed for at a price of
£16.9235 per share;

 

“Put
Exercise Notice” means the notice of exercise of the Put Option
setting out the number of B Ordinary Shares or C Ordinary Shares in relation to
which any B Ordinary Shareholder or C Ordinary Shareholder intends to exercise
the Put Option;

 

“Put
Option” means the put option granted by the A Ordinary Shareholder
to each B Ordinary Shareholder and C Ordinary Shareholder under Article 10.2;

 

“PwC”
means Pricewaterhouse Coopers LLP of 1 Embankment Place, London, WC2N 6RH;

 

“RSU Plan”
means the restricted stock unit plan dated [14 July 2005] entered into by
the Company, priceline.com Holdco UK Limited and certain managers of Bookings
B.V.;

 

“Seal”
means the common seal of the Company and includes any official seal kept by the
Company by virtue of sections 39 or 40 of the Act;

 

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“Shares”
means the A Ordinary Shares, the B Ordinary Shares and the C Ordinary Shares in
the Company;

 

“secretary” means the secretary of
the Company or any other person appointed to perform the duties of the
secretary of the Company, including a joint, assistant or deputy secretary;

 

“Securities
Act” means the
U.S. Securities Exchange Act of 1934, as amended, and all rules and
regulations promulgated thereunder;

 

“United
Kingdom” means Great Britain and Northern Ireland;

 

“Valuation
Report” means the report prepared by the directors in accordance
with Article 13.4; and

 

“Vest”
means the process of a B Ordinary Shareholder becoming entitled (i) to
exercise the Put Option in respect of Granted Shares and (ii) to be paid
an Option Price equal to Fair Market Value for such Shares (as defined in Article 13.2).

 

2.3                                 powers of delegation shall not be restrictively construed but the
widest interpretation shall be given to them;

 

2.4                                 the word “directors” in the context of the exercise of any power
contained in the Articles includes any committee consisting of one or more
directors, any director holding executive office and any local or divisional
board, manager or agent of the company to which or, as the case may be, to whom
the power in question has been delegated;

 

2.5                                 no power of
delegation shall be limited by the existence or, except where expressly
provided by the terms of delegation, the exercise of that or any other power of
delegation;

 

2.6                                 except where expressly provided by the terms of delegation, the
delegation of a power shall not exclude the concurrent exercise of that power
by any other body or person who is for the time being authorised to exercise it
under the Articles or under another delegation of the power;

 

2.7                                 unless the context otherwise requires, words or expressions
contained in these Articles bear the same meaning as in the Act but excluding
any statutory modification thereof not in force when the Articles become
binding on the Company;

 

2.8                                 references to a document being executed include references to its
being executed under hand or under seal or by any other method;

 

2.9                                 unless the context otherwise requires, any reference to “writing” or
“written” shall include any method of reproducing words or text in a legible
and non-transitory form;

 

2.10                           save where specifically required or indicated otherwise words importing
one gender shall be treated as importing any gender, words importing
individuals shall be treated as importing corporations and vice versa, words
importing the singular shall be treated as importing the plural and vice versa,
and words importing the whole shall be treated as including a reference to any
part thereof;

 

2.11                           clause and paragraph
headings are inserted for ease of reference only and shall not affect
construction.

 

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3.                                      SHARE CAPITAL

 

3.1                                 The authorised share capital of the Company is £10,000 divided into
9,150,000 A Ordinary Shares of 0.1 pence each, 200,000 B Ordinary Shares of 0.1
pence each and 650,000 C Ordinary Shares of 0.1 pence each

 

4.                                      RIGHTS ATTACHING TO SHARES

 

The rights and restrictions attaching to the A
Ordinary Shares, the B Ordinary Shares and the C Ordinary Shares are as
follows:

 

4.1                                 Income

 

(a)                                  the A Ordinary Shareholders, the B Ordinary Shareholders and the C
Ordinary Shareholders shall be entitled to receive such sums by way of dividend
as the Company may by ordinary resolution declare or as the directors may
determine in either case in accordance with the provisions of the Act and
Articles 39 but such that, subject to Articles 4.1(b) and (c) below,
the A Ordinary Shares, the B Ordinary Shares and the C Ordinary Shares need not
rank pari passu for such
dividends;

 

(b)                                 the A Ordinary Shareholders shall, in priority to the B Ordinary
Shareholders and the C Ordinary Shareholders, be entitled to be paid an annual
dividend that is equal to £1,650,000 (the “Threshold Amount”);

 

(c)                                  the A Ordinary Shareholders, the B Ordinary Shareholders and the C
Ordinary Shareholders (as if the same constituted one class of share) shall
then be entitled to the balance of any dividend that the Company may by
ordinary resolution declare after the payment of the amount equal to the
Threshold Amount referred to in Article 4.1(a) above, such balance to
be shared among the A Ordinary Shareholders, the B Ordinary Shareholders and
the C Ordinary Shareholders (as if the same constituted one class of share) pro
rata according to the amount fully paid up on the A Ordinary Shares, B Ordinary
Shares and C Ordinary Shares (including any amount of share premium paid
thereon);

 

4.2                                 Capital

 

the assets of the Company available for distribution
to holders remaining after payment of all other debts and liabilities of the
Company (and of the costs, charges and expenses of any winding up) shall be
distributed amongst the holders of the A Ordinary Shareholders, the B Ordinary
Shareholders and the C Ordinary Shareholders pari
passu as if they were all shares of the same class; and

 

4.3                                 Voting

 

every holder of A Ordinary Shares, B Ordinary Shares
and C Ordinary Shares who (being an individual) is present or (being a corporation)
is present by a duly authorised representative (not being himself a member
entitled to vote) shall have one vote for every such share of which he is the
holder.

 

5.                                      AUTHORITY TO ALLOT

 

5.1                                 The directors are generally and unconditionally authorised pursuant
to section 80 of the Act to allot relevant securities (within the meaning
of section 80(2) of the Act). 
The authority hereby conferred shall, subject to section 80(7) of
the Act, be for a period of five years from the date of adoption of these
Articles unless renewed varied or revoked by the Company in general meeting and
the maximum amount of relevant securities which may be allotted

 

8

 

pursuant to such authority shall be the authorised but as yet unissued share
capital of the Company at the date of adoption of these Articles or, where the
authority is renewed, at the date of the renewal.

 

5.2                                 The directors shall be entitled under the authority contained in Article 5.1
or any renewal thereof to make at any time prior to the expiry of such
authority any offer or agreement which would or might require relevant
securities of the Company to be allotted after the expiry of such authority.

 

5.3                                 The provisions of sections 89(1) and 90(1) to (6) of
the Act shall not apply to the Company.

 

5.4                                 Subject to the provisions of the Act and without prejudice to any
rights attached to any existing shares, any share may be issued with such
rights or restrictions as the Company may by ordinary resolution determine or,
subject to and in default of such determination, as the directors shall
determine.

 

5.5                                 Subject to the provisions of the Act, shares may be issued which are
to be redeemed or are liable to be redeemed at the option of the Company or the
holder on such terms and in such manner as may be provided by the Articles.

 

5.6                                 Subject to the provisions of Articles 5.1 to 5.5 inclusive, the provisions of the Act and to
any resolution of the Company in general meeting passed pursuant to those
provisions:

 

(a)                                  all unissued shares for the time being in the capital of the Company
(whether forming part of the original or any increased share capital) shall be
at the disposal of the directors; and

 

(b)                                 the directors may allot (with or without conferring a right of
renunciation), grant options over, or otherwise dispose of them to such persons
on such terms and conditions and at such times as they think fit.

 

5.7                                 The Company may exercise the powers of paying commissions conferred
by the Act.  Subject to the provisions of
the Act, any such commission may be satisfied by the payment of cash or by the
allotment of fully or partly paid shares or partly in one way and partly in the
other.

 

5.8                                 Except as required by law, no
person shall be recognised by the Company as holding any share upon any trust
and (except as otherwise provided by the Articles or by law) the Company shall
not be bound by or recognise any interest in any share except an absolute right
to the entirety thereof in the holder.

 

6.                                      SHARE CERTIFICATES

 

6.1                                 Every member, upon becoming the holder of any shares, shall be
entitled without payment to one certificate for all the shares of each class
held by him (and, upon transferring a part of his holding of shares of any
class, to a certificate for the balance of such holding) or several
certificates each for one or more of his shares upon payment for every
certificate after the first of such reasonable sum as the directors may
determine.  Every certificate shall be
sealed with the Seal or executed in such other manner as the directors may
approve, having regard to the Act and the provisions of the Articles, and shall
specify the number, class and distinguishing numbers (if any) of the shares to
which it relates and the amount or respective amounts paid up thereon.  The Company shall not be bound to issue more
than one certificate for shares held jointly by several persons and delivery of
a certificate to one joint holder shall be a sufficient delivery to all of
them.

 

6.2                                 If a share certificate is defaced, worn-out, lost or destroyed, it
may be renewed on such terms (if any) as to evidence and indemnity and payment
of the expenses reasonably incurred by the

 

9

 

Company in investigating evidence as the directors may
determine but otherwise free of charge, and (in the
case of defacement or wearing-out) on delivery up of the old certificate.

 

7.                                      LIEN

 

7.1                                 The Company shall have a first and paramount lien on every share
(not being a fully paid share) for all moneys (whether presently payable or
not) payable at a fixed time or called in respect of that share.  The directors may at any time declare any
share to be wholly or in part exempt from the provisions of this Article 7.  The Company’s lien on a share shall extend to
any amount payable in respect of it.

 

7.2                                 The Company may sell in such manner as the directors determine any
shares on which the Company has a lien if a sum in respect of which the lien
exists is presently payable and is not paid within fourteen clear days after
notice has been given to the holder of the share or to the person entitled to
it in consequence of the death or bankruptcy of the holder, demanding payment
and stating that if the notice is not complied with the shares may be sold.

 

7.3                                 To give effect to a sale the directors may authorise some person to
execute an instrument of transfer of the shares sold to, or in accordance with
the directions of, the purchaser.  The
title of the transferee to the shares shall not be affected by any irregularity
in or invalidity of the proceedings in reference to the sale.

 

7.4                                 The net proceeds of the sale, after payment of the costs, shall be
applied in payment of so much of the sum for which the lien exists as is
presently payable, and any residue shall (upon surrender to the Company for
cancellation of the certificate for the shares sold and subject to a like lien
for any moneys not presently payable as existed upon the shares before the
sale) be paid to the person entitled to the shares at the date of the sale.

 

8.                                      CALLS ON SHARES AND FORFEITURE

 

8.1                                 Subject to the terms of allotment, the directors may make calls upon
the members in respect of any moneys unpaid on their shares (whether in respect
of nominal value or premium) and each member shall (subject to receiving at
least fourteen clear days’ notice specifying when and where payment is to be
made) pay to the Company as required by the notice the amount called on his
shares.  A call may be required to be
paid by instalments.  A call may, before
receipt by the Company of any sum due thereunder, be revoked in whole or part
and payment of a call may be postponed in whole or part.  A person upon whom a call is made shall
remain liable for calls made upon him notwithstanding the subsequent transfer
of the shares in respect whereof the call was made.

 

8.2                                 A call shall be deemed to have been made at the time when the
resolution of the directors authorising the call was passed.

 

8.3                                 The joint holders of a share shall be jointly and severally liable
to pay all calls in respect thereof.

 

8.4                                 If a call remains unpaid after it has become due and payable, the
person from whom it is due and payable shall pay interest on the amount unpaid
from the day it became due and payable until it is paid and shall also pay all
costs and expenses incurred by the Company as determined by the directors in
order to procure payment of the sums due or in consequence of the non-payment
of such sums.  The rate of interest shall
be the rate fixed by the terms of allotment of the share or in the notice of
the call or, if no rate is fixed, at the appropriate rate (as defined by the
Act) but the directors may waive payment of the interest, costs and expenses
wholly or in part.

 

8.5                                 An amount payable in respect of a share on allotment or at any fixed
date, whether in respect of nominal value or premium or as an instalment of a
call, shall be deemed to be a call and if it is

 

10

 

not
paid the provisions of the Articles shall apply as if that amount had become
due and payable by virtue of a call.

 

8.6                                 Subject to the terms of allotment, the directors may make
arrangements on the issue of shares for a difference between the holders in the
amounts and times of payment of calls on their shares.

 

8.7                                 The directors may, if they think fit, receive from any member
willing to advance the same all or any part of the moneys uncalled and unpaid
upon any shares held by him, and upon all or any of the moneys so advanced may
(until the same would, but for such advance, become payable) pay interest at
such rate as may be agreed upon between the directors and the member paying
such sum in advance.

 

8.8                                 If a call remains unpaid after it has become due and payable, the
directors may give to the person from whom it is due not less than fourteen clear
days’ notice requiring payment of the amount unpaid together with any interest
which may have accrued plus expenses or costs determined in accordance with Article 8.7.  The notice shall name the place where payment
is to be made and shall state that if the notice is not complied with the
shares in respect of which the call was made will be liable to be forfeited.

 

8.9                                 If the notice is not complied with any share in respect of which it
was given may, before the payment required by the notice has been made, be
forfeited by a resolution of the directors and the forfeiture shall include all
dividends or other moneys payable in respect of the forfeited shares and not
paid before the forfeiture.

 

8.10                           Subject to the provisions of the Act, a forfeited share may be sold,
re-allotted or otherwise disposed of on such terms and in such manner as the
directors determine either to the person who was before the forfeiture the
holder or to any other person and at any time before sale, re-allotment or
other disposition, the forfeiture may be cancelled on such terms as the
directors think fit.  Where for the
purposes of its disposal a forfeited share is to be transferred to any person
the directors may authorise some person to execute an instrument of transfer of
the share to that person.

 

8.11                           A person any of whose shares have been forfeited shall cease to be a
member in respect of them and shall surrender to the Company for cancellation
the certificate for the shares forfeited but shall remain liable to the Company
for all moneys which at the date of forfeiture were presently payable by him to
the Company in respect of those shares with interest at the rate at which
interest was payable on those moneys before the forfeiture or, if no interest
was so payable, at the appropriate rate (as defined in the Act) plus costs and
expenses from the date of forfeiture until payment but the directors may waive
payment wholly or in part or enforce payment without any allowance for the
value of the shares at the time of forfeiture or for any consideration received
on their disposal.

 

8.12                           A statutory declaration by a director or the secretary that a share
has been forfeited on a specified date shall be conclusive evidence of the
facts stated in it as against all persons claiming to be entitled to the share
and the declaration shall (subject to the execution of an instrument of
transfer if necessary) constitute a good title to the share and the person to
whom the share is disposed of shall not be bound to see to the application of
the consideration, if any, nor shall his title to the share be affected by any
irregularity in or invalidity of the proceedings in reference to the forfeiture
or disposal of the share.

 

9.                                      TRANSFER OF SHARES

 

9.1                                 The directors shall not register any transfer of B Ordinary Shares
or C Ordinary Shares:

 

(a)                                  unless such transfer is made in accordance with the provisions of
Articles 10 to 13 (Put and Call Option);
or

 

11

 

(b)                                 such transfer is made in accordance with the provisions of Article 16
(Pre-Emption Transfers) and (I)
such transfer is (i) a transfer of B Ordinary Shares made after 3 April 2008
or (ii) a transfer of C Ordinary Shares made after 3 September 2008
and (II) the transfer is not being made pursuant to any exercise of the Put
Option or the Call Option.

 

9.2                                 The directors may at any time register any transfer of B Ordinary
Shares or C Ordinary Shares if such transfer is made in accordance with
Articles 14 and 15 (Drag Along and Tag Along).

 

9.3                                 The directors shall register any transfer of A Ordinary Shares which
complies with the provisions of these Articles.

 

9.4                                 Subject to such of the restrictions set out in these Articles as may
be applicable, any member may transfer all or any of his shares by instrument of
transfer in writing in any usual form or in any other form which the directors
may approve.  The instrument of transfer
shall be executed by or on behalf of the transferor and, unless the share is
fully paid, by or on behalf of the transferee and the transferee shall remain
the holder of the shares and as such a member of the Company until the name of
the transferee is entered in the Register of Members in respect thereof.

 

9.5                                 If the directors refuse to register a transfer of a share they shall
within two months after the date on which the transfer was lodged with the
Company send to the transferee notice of the refusal.

 

9.6                                 No fee shall be charged for the registration of any instrument of
transfer or other document relating to or affecting the title to any share.

 

9.7                                 The Company shall be entitled to retain any instrument of transfer
which is registered, but any instrument of transfer which the directors refuse
to register shall be returned to the person lodging it when notice of the
refusal is given.

 

10.                               PUT AND CALL OPTION

 

10.1                           Each B Ordinary Shareholder and each C Ordinary Shareholder grants
to the A Ordinary Shareholder an Option to purchase its respective shares for
the Option Price on the terms and subject to the conditions of these Articles
(the “Call Option”).

 

10.2                           The A Ordinary Shareholder grants to each B Ordinary Shareholder and
each C Ordinary Shareholder an Option to sell its respective shares to the A
Ordinary Shareholder for the Option Price on the terms and subject to the
conditions of these Articles (the “Put Option”).

 

11.                               EXERCISE OF CALL OPTION

 

11.1                           B Ordinary Shares:

 

(a)                                  The A Ordinary Shareholder may exercise the
Call Option with respect to:

 

(i)                                     any Granted Securities that have Vested and/or 1/3 of the Purchased
Securities held by each B Ordinary Shareholder by serving a Call Exercise
Notice on any B Ordinary Shareholder at any time during the 2006 Series B
Exercise Period; and/or

 

(ii)                                  any Granted
Securities that have Vested and/or 2/3rd of the Purchased Securities
held by each B Ordinary Shareholder (less any Purchased Securities or Granted
Securities previously held by that B Ordinary

 

12

 

Shareholder which have been acquired by the A Ordinary
Shareholder pursuant to an earlier exercise of the Put Option or the Call
Option) by serving a Call Exercise Notice on any B Ordinary Shareholder at any
time during the 2007 Series B Exercise Period; and/or

 

(iii)                               any Granted Securities that have Vested and/or any Purchased
Securities held by each B Ordinary Shareholder (less any Purchased Securities
or Granted Securities previously held by that B Ordinary Shareholder which have
been acquired by the A Ordinary Shareholder pursuant to an earlier exercise of
the Put Option or the Call Option) by serving a Call Exercise Notice on any B
Ordinary Shareholder at any time during the 2008 Series B Exercise Period;
and/or

 

(iv)                              any Granted Securities that have Vested and/or any Purchased
Securities held by each B Ordinary Shareholder, if (but only if) there is a
Change in Control, by serving a Call Exercise Notice on any B Ordinary
Shareholder at any time during the Change in Control Window.

 

(b)                                 Notwithstanding the foregoing, if any B Ordinary Shareholder is a
Bad Leaver, the A Ordinary Shareholder may, with respect to:

 

(i)                                     any Granted Securities of that B Shareholder that have Vested more
than 184 days before the date upon which the B Ordinary Shareholder ceased to
be an employee of a Group Company, exercise the Call Option immediately or at
any time thereafter by serving a Call Exercise Notice on the B Ordinary
Shareholder; and/or

 

(ii)                                  any Granted Securities of that B Shareholder that have Vested less
than 184 days before the date upon which the B Ordinary Shareholder ceased to
be an employee of a Group Company, exercise the Call Option by serving a Call
Exercise Notice on the B Ordinary Shareholder at any time not less than 183
days after the date upon which such Granted Securities Vested; and

 

(iii)                               any Granted
Securities of that B Shareholder that have not Vested, exercise the Call Option
immediately or at any time thereafter.

 

11.2                           C Ordinary Shares

 

The A Ordinary Shareholder may exercise the Call
Option with respect to:

 

(a)                                  1/3 of the C Ordinary Shares held by each C Ordinary Shareholder by
serving a Call Exercise Notice on any C Ordinary Shareholder at any time during
the 2006 Series C Exercise Period; and/or

 

(b)                                 2/3rd of the C Ordinary Shares held by each C Ordinary
Shareholder (less any C Ordinary Shares previously held by that C Ordinary Shareholder
which have been acquired by the A Ordinary Shareholder pursuant to an earlier
exercise of the Put Option or the Call Option) by serving a Call Exercise
Notice on any C Ordinary Shareholder at any time during the 2007 Series C
Exercise Period; and/or

 

(c)                                  any C Ordinary Shares held by each C Ordinary Shareholder (less any
C Ordinary Shares previously held by that C Ordinary Shareholder which have
been acquired by the A Ordinary Shareholder pursuant to an earlier exercise of
the Put Option or the Call Option) by serving a Call Exercise Notice on any C
Ordinary Shareholder at any time during the 2008 Series C Exercise Period;
and/or

 

13

 

(d)                                 any C Ordinary
Shares held by each C Ordinary Shareholder, if (but only if) there is a Change
in Control, by serving a Call Exercise Notice on any C Ordinary Shareholder at
any time during the Change in Control Window.

 

12.                               EXERCISE OF PUT OPTION

 

12.1                           B Ordinary Shares

 

Each B Ordinary Shareholder if he is an
employee or a Good Leaver may exercise the Put Option with respect to:

 

(a)                                  any of its Granted Securities that have Vested and/or 1/3 of its
Purchased Securities by serving a Put Exercise Notice on the A Ordinary
Shareholder at any time during the 2006 Series B Exercise Period; and/or

 

(b)                                 any of its Granted Securities that have Vested and/or 2/3rd
of its Purchased Securities (less any Purchased Securities or Granted
Securities previously held by it which have been acquired by the A Ordinary
Shareholder pursuant to an earlier exercise of the Put Option or the Call
Option) by serving a Put Exercise Notice on the A Ordinary Shareholder at any
time during the 2007 Series B Exercise Period; and/or

 

(c)                                  any of its Granted Securities that have Vested and/or any of its Purchased
Securities (less any Purchased Securities or Granted Securities previously held
by it which have been acquired by the A Ordinary Shareholder pursuant to an
earlier exercise of the Put Option or the Call Option) by serving a Put
Exercise Notice on the A Ordinary Shareholder at any time during the 2008 Series B
Exercise Period; and/or

 

(d)                                 any of its Granted Securities that have Vested and/or any of its
Purchased Securities, if (but only if) there is a Change in Control, by serving
a Put Exercise Notice on the A Ordinary Shareholder at any time during the
Change in Control Window.

 

Provided that in the case of the Purchased Securities
it shall not be necessary for the B Ordinary Shareholder to be an employee or a
Good Leaver at the time of exercising the Put Option.

 

12.2                           C Ordinary Shares

 

Each C
Ordinary Shareholder may exercise the Put Option with respect to:

 

(a)                                  1/3 of its C Ordinary Shares by serving a Put Exercise Notice on the
A Ordinary Shareholder at any time during the 2006 Series C Exercise Period;
and/or

 

(b)                                 2/3rd of its C Ordinary Shares (less any C Ordinary
Shares previously held by it which have been acquired by the A Ordinary
Shareholder pursuant to an earlier exercise of the Put Option or the Call
Option) by serving a Put Exercise Notice on the A Ordinary Shareholder at any
time during the 2007 Series C Exercise Period; and/or

 

(c)                                  any of its C Ordinary Shares (less any C Ordinary Shares previously
held by it which have been acquired by the A Ordinary Shareholder pursuant to
an earlier exercise of the Put Option or the Call Option) by serving a Put
Exercise Notice on the A Ordinary Shareholder at any time during the 2008 Series C
Exercise Period; and/or

 

(d)                                 any of its C Ordinary Shares, if (but only if) there is a Change in
Control, by serving a Put Exercise Notice on the A Ordinary Shareholder at any
time during the Change in Control Window.

 

14

 

13.                               PROCEDURE FOR EXERCISE OF PUT AND CALL
OPTION

 

13.1                           An Exercise Notice shall constitute a legally binding contract
between the relevant B Ordinary Shareholder or C Ordinary Shareholder and the A
Ordinary Shareholder for the sale and purchase of the entire legal and
beneficial interest in the number of shares specified in the Exercise Notice free
from any claim, charge, lien or encumbrance, and with all rights attached
thereto at the Completion Date (as defined in Article 13.9).

 

13.2                           Subject to Article 13.3 below, where the Option Price is to be
the Fair Market Value, such Fair Market Value shall be the price per share as
at the date of the most recent Valuation Report as being in the directors’
opinion the fair value of a share as between a willing seller and a willing
buyer (with no discount to reflect the unquoted status of the shares) provided
that the directors, in determining the fair value of such shares shall:

 

(a)                                  determine the sum
which a willing buyer would offer to a willing seller for the whole of the
issued share capital of the Company;

 

(b)                                 divide the resultant figure by the number of issued shares (assuming
that all outstanding options or rights to acquire shares have been exercised in
full (whether or not yet exercisable) and assuming that any shares in respect
of which the Company has granted acquisition rights to employees or directors
of the Company pursuant to any employees’ share scheme have been allotted and
assuming that any Granted Securities in the Company have Vested);

 

(c)                                  base their valuation on the latest Accounts of the Company and any
projections or forecasts prepared by the directors, and for the avoidance of
doubt the directors shall not base their valuation on any financial statements,
projections or forecasts prepared by any other person which have not been first
approved by a simple majority of the directors of the Company,

 

but so that there shall be no addition or subtracting
of any premium or discount arising in relation to the size of the holding the
subject of the relevant transfer, or in relation to any restrictions on the
transferability of the shares arising only out of the provisions of the
Articles and provided further that the directors shall take into account in
relation to determining the appropriate figure for Article 13.2 above any bona fide offer from any third party to
purchase the entire issued share capital the subject of an Exercise Notice.

 

13.3                           If (i) any B Ordinary Shareholder ceases to be an employee of a
Group Company for whatever reason and (ii) the A Ordinary Shareholder
elects to exercise the Call Option pursuant to Article 11.1(b) above,
the Option Price shall be the Option Price of the shares referred to in the
relevant Exercise Notice as at the date of the most recent Valuation Report,
provided that if:

 

(a)                                  the most recent Valuation Report was delivered to the parties on or
before the date which is four months prior to the service of the Call Exercise
Notice on the relevant B Ordinary Shareholder, the A Ordinary Shareholder shall
arrange for the directors to prepare an updated Valuation Report and serve it
on the parties and the Option Price as set out in such updated Valuation Report
shall be the relevant Option Price for the purposes of this Article 13.3;
or

 

(b)                                 the Call Exercise Notice is exercised within four months of the
service of the most recent Valuation Report on the relevant B Ordinary
Shareholder and (ii) an event or circumstance has occurred since the most
recent Valuation Report such that the Fair Market Value of the Shares as set
out in the most recent Valuation Report does not correspond to the Fair Market
Value of the Shares as at the date of service of the relevant Call Exercise
Notice, the A Ordinary Shareholder or the holders of a

 

15

 

majority of the B Ordinary Shares may arrange for the directors to prepare
an updated Valuation Report and serve it on the parties and the Option Price as
set out in such updated Valuation Report shall be the relevant Option Price for
the purposes of this Article 13.3.

 

13.4                           The directors shall prepare the Valuation Report, which shall set out
the Fair Market Value of the Shares as at the date of the Valuation Report and
shall serve the Valuation Report on:

 

(a)                                  the A Ordinary Shareholder and the B Ordinary Shareholders, on or
about 20 March 2006, 20 March 2007, and 20 March 2008
respectively; and

 

(b)                                 the A Ordinary
Shareholder and the C Ordinary Shareholders on or shortly after 3 August 2006,
3 August 2007, and 3 August 2008 respectively.

 

13.5                           The Fair Market Value of the shares as set out in the Valuation
Report shall be final and binding on the parties, save that if:

 

(a)                                  the holders of a majority of the B Ordinary Shares (with respect to
a Valuation Report relating to the B Ordinary Shares); or

 

(b)                                 the holders of a
majority of the C Ordinary Shares (with respect to a Valuation Report relating
to the C Ordinary Shares),

 

but excluding for purposes of calculating the said
majorities any B or C Ordinary Shares which have been previously acquired
pursuant to the exercise of Put or Call Options, serve notice on the A Ordinary
Shareholder that the Fair Market Value as set out in the relevant Valuation
Report does not, in their opinion reflect the true Fair Market Value of the
shares, either party may within 10 Business Days of the date of such notice
refer the matter to the Arbitrator.

 

13.6                           Within 20 Business Days of referral of the matter to the Arbitrator
pursuant to Article 13.5 above, each of the A Ordinary Shareholder and the
relevant B Ordinary Shareholder or C Ordinary Shareholder shall submit to the
Arbitrator its own determination of the Fair Market Value of the shares
specified in the Exercise Notice, including an explanation of the basis of its
valuation, the methodology applied and key assumptions used.  As soon as reasonably practicable thereafter,
the Arbitrator will determine and notify the parties in writing which of the
two parties’ valuation (the “Closer Valuation”) more closely reflects in the
opinion of the Arbitrator the Fair Market Value of the shares specified in the
Exercise Notice and the Closer Valuation shall be deemed to be Fair Market
Value for the purposes of determining the Option Price for such shares.

 

13.7                           The decision of the Arbitrator shall, save in the case of manifest
error, be final and binding on the A Ordinary Shareholder and the relevant B
Ordinary Shareholder or C Ordinary Shareholder. 
The costs incurred by the Arbitrator shall be borne by the party whose
valuation is not adopted by the Arbitrator as reflecting the Fair Market Value
of the shares specified in the Exercise Notice.

 

13.8                           The parties shall use all reasonable endeavours to appoint PwC as
the Arbitrator within 14 days of the service of any notice pursuant to Articles
13.5 and 13.17 or such later date as the parties may agree.  If PwC shall not agree to accept such
appointment, the Arbitrator shall be appointed by agreement between the parties
or, if they do not so agree within 7 days of the service of such notice, the
appointment shall be made by the President, for the time being, of the
Institute of Chartered Accountants on the application of either party.

 

13.9                           Completion of the sale and purchase of the shares (or, in the case
of the partial exercise of an Option, the number of the shares referred to in
the relevant Exercise Notice) (“Completion”)

 

16

 

shall take place at the offices of the Company on
either (i) the date specified in the relevant Exercise Notice being no
less than 10 and no more than 12 Business Days after service of the relevant
Exercise Notice or (ii) in the event that the matter is referred to the
Arbitrator in accordance with Article 13.6, the date being 10 Business
Days after the date upon which the Arbitrator publishes its decision (the “Completion
Date”).

 

13.10                     At Completion, the relevant B Ordinary Shareholder or C Ordinary Shareholder
shall deliver or procure the delivery to the A Ordinary Shareholder of:

 

(a)                                  a duly executed
transfer or transfers in respect of the number of the shares referred to in the
relevant Exercise Notice in favour of the A Ordinary Shareholder or such
person(s) as the A Ordinary Shareholder may direct;

 

(b)                                 the share certificate(s) representing the shares referred to in the
relevant Exercise Notice (or an express indemnity in a form reasonably
satisfactory to the A Ordinary Shareholder in the case of any share
certificate(s) found to be missing); and

 

(c)                                  such other
documents as may be necessary to enable the A Ordinary Shareholder or its
nominee(s) to obtain a good title to the shares referred to in the relevant
Exercise Notice.

 

13.11                     Subject to compliance by the relevant B Ordinary Shareholder or C
Ordinary Shareholder with its obligations set out in Article 13.10, on
Completion the A Ordinary Shareholder will pay to the relevant B Ordinary
Shareholder or C Ordinary Shareholder the Option Price.  The Option Price shall be satisfied in cash.

 

13.12                     Until the Completion Date, the relevant B Ordinary Shareholder or C
Ordinary Shareholder shall be entitled to exercise all voting and other rights
attached to the shares referred to in the relevant Exercise Notice and shall be
entitled to receive and retain all dividends and other distributions in respect
of the shares.

 

13.13                     If any of the events in Article 13.14 occurs, such adjustments
(if any) shall be made as may be required to the number and/or description of
the shares and/or to the Option Price so as to preserve as far as possible the
equivalent economic value of the rights of the parties immediately prior to the
relevant event having regard to any diluting or concentrating effect of the
relevant event and the redesignation of, or replacement with any other
securities of, the shares.

 

13.14                     The events referred to in Article 13.13 are the occurrence of
any of the following in relation to the shares:

 

(a)                                  a sub-division,
consolidation or reclassification of the shares;

 

(b)                                 a distribution (whether by way of bonus, capitalisation or similar
issue or otherwise) by the Company to existing holders of the shares of (i) additional
shares or (ii) other share capital or securities or (iii) securities,
rights or warrants granting the right to a distribution of shares or to
purchase, subscribe or receive shares or any other shares or securities or
assets (other than the payment of a cash dividend);

 

(c)                                  the
reclassification of, or a change in, the shares (other than one referred to in Article 13.14(b));

 

(d)                                 the consolidation, amalgamation or merger of the Company with or
into another entity (other than a consolidation, amalgamation or merger
following which the Company is the surviving entity and which does not result
in any reclassification of, or change in, the shares); or

 

17

 

(e)                                  any event in
respect of the shares analogous to any of the foregoing events or otherwise
having a diluting or concentrating effect on the market value of the shares.

 

13.15                     Any adjustment made in accordance with Article 13.13 shall have
effect from the date of the relevant event in Article 13.14.

 

13.16                     The nature of any adjustment required to be made in accordance with Article 13.13
shall be determined by the directors of the Company within 10 Business Days of
the occurrence of any of the events referred to in Article 13.13 above,
save that if the holders of a majority of the B Ordinary Shares serve notice on
the A Ordinary Shareholder that the adjustment determined by the directors
pursuant to this Article 13.16 does not, in their opinion reflect the true
adjustment that is required, either party may within 10 Business Days of the
date of such notice refer the matter to the Arbitrator.

 

13.17                     Articles 10 to 13 shall only be amended with the consent of the
holders of a majority of each of the B Ordinary Shares and the C Ordinary
Shares.

 

14.                               TAG ALONG RIGHTS

 

14.1                           If the effect of any transfer of shares by the A Ordinary
Shareholder would, if completed, enable any person or persons acting in concert
with each other to, directly or indirectly own shares of the Company carrying
the right to 50% or more of the total number of votes which could be cast at a
general meeting, the transferor shall procure the making by the proposed
transferee (the “Offeror”) of an Offer to all of the B Ordinary Shareholders
and all of the C Ordinary Shareholders.

 

14.2                           An Offer means an unconditional offer, open for acceptances for not
less than 21 days, to purchase the B Ordinary Shares and the C Ordinary Shares
held by the recipient of an Offer for a consideration (in cash or with a cash
alternative) and on terms no less favourable than the most favourable terms
provided by such person during the twelve months preceding and including the
proposed date of such transfer in relation to shares of the Company.

 

14.3                           Every B Ordinary Shareholder and C Ordinary Shareholder on receipt
of an Offer shall be bound within 21 days of the date of such Offer (which date
shall be specified therein) either to accept or reject such offer in writing
(and in default of so doing shall be deemed to have rejected the Offer) (the “Offer Period”)

 

14.4                           In the event that an Offer is
made, then no member shall transfer shares to the Offeror unless, in relation
to every acceptance received within the Offer Period from members, the Offeror
executes all such documents, pays all such consideration and does all such
other acts or things which are necessary to be done by the Offeror to transfer
the shares of the accepting members to the Offeror in accordance with the terms
of the Offer.

 

14.5                           In the event that, pursuant to an Offer being made in accordance
with Article 14.1, the Offeror becomes the holder or has agreed to become
the holder of shares conferring the right in aggregate to exercise 90% or more
of the votes which could be cast at a general meeting, then if so requested by
any member within 10 Business Days after the end of the Offer Period, the
Offeror shall be bound to purchase from such member all (but not some only) of
the Shares at a price per share equal to and on terms no less favourable than
those on which the Offer must be made in accordance with Article 14.1.  The provisions of Article 14.1 shall
apply mutatis mutandis to any
transfer of shares in accordance with this Article 14.5.

 

14.6                           The provisions of this Article 14 shall not apply to any
transfer of shares by the A Ordinary Shareholder to any of its holding companies (as
defined in ss736 and 736A of the Companies Act 1985) or any of its subsidiaries
(as defined in ss736 and 736A of the Companies Act 1985).

 

18

 

15.                               DRAG ALONG RIGHTS

 

15.1                           If the A Ordinary Shareholder (the “Seller”) wishes to transfer
shares in the Company representing in aggregate not less than 50% of the A
Ordinary Shares of the Company (the “Majority Holding”) to any third party (the
“Purchaser”), then the Seller shall procure (as far as it is able) that the
Purchaser makes the same offer or offers to all the other shareholders of the
Company for the same consideration per respective share as the consideration it
is to receive from the Purchaser in respect of the transfer of the Majority
Holding to the Purchaser (the “Drag Along Price”).

 

15.2                           The Seller shall give notice to the Company of:

 

(a)                                  its intention to
transfer the Majority Holding to the Purchaser;

 

(b)                                 the Drag Along
Price; and

 

(c)                                  the requirement
that all Shares issued at the time of such notice (other than the shares held
by the Seller) are required to be transferred to the Purchaser for the Drag
Along Price,

 

(the “Drag Along Notice”).

 

15.3                           Upon receipt of the Drag Along Notice, the
Company shall procure that such notice is delivered promptly to each B Ordinary
Shareholder and C Ordinary Shareholder.

 

15.4                           The giving of a Drag Along Notice by the Seller to the Company in
accordance with Article 15.2 shall have the effect of obliging the holder
from time to time of any B Ordinary Shares or C Ordinary Shares to sell to the
Purchaser (or its nominee) the B Ordinary Shares or C Ordinary Shares for the
Drag Along Price.

 

15.5                           Completion of the sale of the B Ordinary Shares and C Ordinary
Shares shall take place on the date of completion of the transfer of the
Majority Holding.

 

15.6                           The directors shall pay any purchase money received from the
Purchaser with respect to the B Ordinary Shares or C Ordinary Shares into a
separate bank account in the Company’s name and shall hold such money on trust
(but without interest) for the owner of the B Ordinary Shares or C Ordinary
Shares until he (if necessary) delivers up his certificate for the relevant B
Ordinary Shares or C Ordinary Shares to the Company when he shall thereupon be
paid the purchase money.

 

16.                                 PRE-EMPTION TRANSFERS

 

16.1                           No member (or person entitled by transmission) shall transfer or
dispose of or agree to transfer or dispose of or grant any interest or right in
any B Ordinary Share or C Ordinary Share (hereinafter a “transferee”) without
first offering the same for transfer to the A Ordinary Shareholder.  Such offer may be in respect of all or part
only of the B Ordinary Shares or C Ordinary Shares held by the proposing
transferor and shall be made by the proposing transferor by the giving in
writing of a notice to the Company (a “Transfer Notice”).

 

16.2                           Each Transfer Notice shall specify the number and class of shares
offered (the “Sale Shares”) and (unless the Transfer Notice is deemed given as
provided by these Articles) the price per share at which the Sale Shares are
offered (the “Specified Price”) and the identity(ies)
of the proposed transferee(s) (if any) and it shall constitute the directors as
the agent of the proposed transferor for the sale of the Sale Shares to the A
Ordinary Shareholder.

 

19

 

16.3                           Upon receipt by the Company of the Transfer Notice the directors
shall forthwith give written notice to the A Ordinary Shareholder of the number
and description of the Sale Shares and the Specified Price and the
identity(ies) of the proposed transferee(s) (if any) inviting each of such
holders to state by notice in writing to the Company within 60 days whether he
is willing to purchase any of the Sale Shares and, if so, what maximum number
of the Sale Shares (“Maximum”) he is willing to purchase, and shall also
forthwith give a copy of such notice to the proposing transferor.

 

16.4                           Within 30 days of the expiration of the said period of 60 days the
directors shall allocate to the A Ordinary Shareholder the Maximum, provided
that if the Maximum stated in all notices served pursuant to Article 16.3
exceeds the aggregate number of Sale Shares, the number of shares to be
allocated to each A Ordinary Shareholder shall be scaled down pro rata to the
size of the Maximum set forth in the notice.

 

16.5                           Forthwith upon such allocation being made, the A Ordinary
Shareholder shall be bound to pay to the Company (as agent for the proposing
transferor) the total sale proceeds for the transfer of the number of shares
allocated to the A Ordinary Shareholder pursuant to Article 16.4 at the
price per share equal to the Specified Price (the “Proceeds”) and each A
Ordinary Shareholder shall accept a transfer of such number of shares and the
proposing transferor shall be bound forthwith upon payment of the Proceeds to
deliver to the Company (as agent for the A Ordinary Shareholder) such documents
as are required to transfer such shares to the A Ordinary Shareholder.

 

16.6                           If in any case the proposing transferor, after having become bound
to transfer Sale Shares as aforesaid makes default in so doing the Company may
receive the Proceeds and the directors may appoint some person to execute
instruments of transfer of such Sale Shares in favour of the A Ordinary
Shareholder and shall thereupon, subject to such transfers being properly stamped,
cause the name of the A Ordinary Shareholder to be entered in the Register of
Members as the holder of those Sale Shares allocated to him as aforesaid and
shall hold the Proceeds in trust for the proposing transferor.  The issue of a receipt by the Company
therefore shall be a good discharge to the A Ordinary Shareholder and after its
name shall have been entered in the Register of Members in exercise of the
aforesaid power the validity of the transactions shall not be questioned by any
person.

 

16.7                           If, at the expiration of the period of 30 days referred to in Article 16.4
above, any of the Sale Shares have not been allocated in accordance with the
provisions of Article 16.6, the proposing transferor may at any time
within a period of 60 days after the expiration of the said period of 30 days
referred to in Article 16.4 above transfer such unallocated Sale Shares to
the proposed transferee(s) (if any) specified in the Transfer Notice, or to any
other person at any price per Share not being less than the Specified Price
provided that the Board may require to be satisfied on reasonable grounds that
such unallocated Sale Shares are being transferred in pursuance of a bona fide
sale for the consideration stated in the transfer without any deduction, rebate
or allowance whatsoever to the transferee and if not so satisfied may refuse to
register the instrument of transfer.

 

17.                               TRANSMISSION OF SHARES

 

17.1                           If a member dies the survivor or survivors where he was a joint
holder, and his personal representatives where he was a sole holder or the only
survivor of joint holders, shall be the only persons recognised by the Company
as having any title to his interest; but nothing herein contained shall release
the estate of a deceased member from any liability in respect of any share
which had been jointly held by him.

 

17.2                           A person becoming entitled to a share in consequence of the death or
bankruptcy of a member may, upon such evidence being produced as the directors
may properly require, elect either to become the holder of the share or to have
some person nominated by him registered as the

 

20

 

transferee.  If the person so becoming
entitled shall elect to become registered as the holder he shall give notice to
the Company to that effect.  If he elects
to have another person registered he shall execute an instrument of transfer of
the share to that person.  All the
Articles relating to the transfer of shares shall apply to the notice or
instrument of transfer as if it were an instrument of transfer executed by the
member and the death or bankruptcy of the member had not occurred.  The provisions of this Article shall
apply to any person becoming entitled to a share in consequence of the merger
or consolidation of any member being a corporation as they apply to any person
becoming entitled to a share in consequence of the death or bankruptcy of a
member.

 

17.3                           A person becoming entitled to a share in consequence of the death or
bankruptcy of a member shall have the rights to which he would be entitled if
he were the holder of the share, except that he shall not, before being
registered as the holder of the share, be entitled in respect of it to attend
or vote at any meeting of the Company or at any separate meeting of the holders
of any class of shares in the Company.

 

18.                               ALTERATION OF SHARE CAPITAL

 

18.1                           The Company may by ordinary resolution:

 

(a)                                  increase its share
capital by new shares of such amount as the resolution prescribes;

 

(b)                                 consolidate and
divide all or any of its share capital into shares of larger amount than its
existing shares;

 

(c)                                  subject to the provisions of the Act, sub-divide its shares, or any
of them, into shares of smaller amount and the resolution may determine that,
as between the shares resulting from the sub-division, any of them may have any
preference or advantage as compared with the others; and

 

(d)                                 cancel shares
which, at the date of the passing of the resolution, have not been taken or
agreed to be taken by any person and diminish the amount of its share capital
by the amount of the shares so cancelled.

 

18.2                           Whenever as a result of a consolidation of shares any members would
become entitled to fractions of a share, the directors may, on behalf of those
members, sell the shares representing the fractions for the best price
reasonably obtainable to any person (including, subject to the provisions of
the Act, the Company) and distribute the net proceeds of sale in due proportion
among those members, and the directors may authorise some person to execute an
instrument of transfer of the shares to, or in accordance with the directions
of, the purchaser.  The transferee shall
not be bound to see to the application of the purchase money nor shall his title
to the shares be affected by any irregularity in or invalidity of the
proceedings in reference to the sale.

 

18.3                           Subject to the provisions of the Act, the Company may by special
resolution reduce its share capital, any capital redemption reserve and any
share premium account in any way.

 

19.                               PURCHASE OF OWN SHARES

 

Subject to the provisions of the Act, the
Company may purchase its own shares (including any redeemable shares) and, if
it is a private company, make a payment in respect of the redemption or
purchase of its own shares otherwise than out of distributable profits of the
Company or the proceeds of a fresh issue of shares.

 

21

 

20.                               GENERAL MEETINGS

 

20.1                           All general meetings other than annual general meetings shall be
called extraordinary general meetings.

 

20.2                           The directors may call general meetings and, on the requisition of
members pursuant to the provisions of the Act, shall forthwith proceed to
convene an extraordinary general meeting for a date not later than eight weeks
after receipt of a requisition.  If there
are not within the United Kingdom sufficient directors to call a general
meeting, any director or any member of the Company may call a general meeting.

 

21.                               NOTICE OF GENERAL MEETINGS

 

21.1                           An annual general meeting and an extraordinary general meeting
called for the passing of a special resolution shall be called by at least
twenty-one clear days’ notice.  All other
extraordinary general meetings shall be called by at least fourteen clear days’
notice but a general meeting may be called by shorter notice if it is so
agreed:

 

(a)                                  in the case of an annual general meeting, by all the members
entitled to attend and vote thereat; and

 

(b)                                 in the case of any other meeting, by a majority in number of the
members having a right to attend and vote being a majority together holding not
less than ninety-five per cent in nominal value of the shares giving that right
or such other majority as has been decided on by elective resolution of the
members under the Act.

 

21.2                           The notice shall specify the time and place of the meeting and the
general nature of the business to be transacted and, in the case of an annual
general meeting, shall specify the meeting as such.

 

21.3                           Subject to the provisions of these Articles and to any restrictions
imposed on any shares, the notice shall be given to all members to all persons
entitled to a share in consequence of the death or bankruptcy of a member and
to the auditors.

 

21.4                           The accidental omission to give notice of a meeting to, or the
non-receipt of notice of a meeting by, any person entitled to receive notice
shall not invalidate the proceedings at that meeting.

 

21.5                           Where for any purpose an ordinary resolution of the Company is
required, a special or extraordinary resolution shall also be effective.  Where for any purpose an extraordinary
resolution is required, a special resolution shall also be effective.

 

22.                               PROCEEDINGS AT GENERAL MEETINGS

 

22.1                           No business shall be transacted at any meeting unless a quorum is
present.  One A Ordinary Shareholder entitled
to vote upon the business to be transacted, being a member or a proxy for a
member or a duly authorised representative of a corporation, shall be a quorum.

 

22.2                           If such a quorum is not present within half an hour from the time
appointed for the meeting, or if during the meeting such a quorum ceases to be
present, the meeting shall stand adjourned to the same day in the next week at
the same time and place or to such time and place as the directors may
determine.

 

22.3                           The chairman, if any, of the board of directors or in his absence
some other director nominated by the directors shall preside as chairman of the
meeting, but if neither the chairman nor such other director (if any) be
present within fifteen minutes after the time appointed for holding the meeting
and willing to act, the directors present shall elect one of

 

22

 

their
number to be chairman and, if there is only one director present and willing to
act, he shall be chairman.

 

22.4                           If no director is willing to act as chairman, or if no director is
present within fifteen minutes after the time appointed for holding the
meeting, the members present and entitled to vote shall choose one of their number to be chairman.

 

22.5                           A director shall, notwithstanding that he is not a member, be
entitled to attend and speak at any general meeting and at any separate meeting
of the holders of any class of shares in the Company.

 

22.6                           The chairman may, with the consent of a meeting at which a quorum is
present (and shall if so directed by the meeting), adjourn the meeting from
time to time and from place to place, but no business shall be transacted at an
adjourned meeting other than business which might properly have been transacted
at the meeting had the adjournment not taken place.  Where a meeting is
adjourned for fourteen days or more, at least seven clear days’ notice shall be
given specifying the time and place of the adjourned meeting and the general
nature of the business to be transacted. 
Otherwise it shall not be necessary to give any such notice.

 

22.7                           A resolution put to the vote of a meeting shall be decided on a show
of hands unless before, or on the declaration of the result of, the show of
hands a poll is duly demanded by the chairman or any member present in person
or by proxy or duly authorised representative and entitled to vote.

 

22.8                           Unless a poll is duly demanded a declaration by the chairman that a
resolution has been carried or carried unanimously, or by a particular
majority, or lost, or not carried by a particular majority and an entry to that
effect in the minutes of the meeting shall be conclusive evidence of the fact
without proof of the number or proportion of the votes recorded in favour of or
against the resolution.

 

22.9                           The demand for a poll may, before the poll is taken, be withdrawn
but only with the consent of the chairman and a demand so withdrawn shall not
be taken to have invalidated the result of a show of hands declared before the
demand was made.

 

22.10                     A poll shall be taken as the chairman directs and he may appoint
scrutineers (who need not be members) and fix a time and place for declaring
the result of the poll.  The result of
the poll shall be deemed to be the resolution of the meeting at which the poll
was demanded.

 

22.11                     In the case of an equality of votes, whether on a show of hands or
on a poll, the chairman shall be entitled to a casting vote in addition to any
other vote he may have.

 

22.12                     A poll demanded on the election of a chairman or on a question of
adjournment shall be taken forthwith.  A
poll demanded on any other question shall be taken either forthwith or at such
time and place as the chairman directs not being more than thirty days after
the poll is demanded.  The demand for a
poll shall not prevent the continuance of a meeting for the transaction of any
business other than the question on which the poll was demanded.  If a poll is demanded before the declaration
of the result of a show of hands and the demand is duly withdrawn, the meeting
shall continue as if the demand had not been made.

 

22.13                     No notice need be given of a poll not taken forthwith if the time
and place at which it is to be taken are announced at the meeting at which it
is demanded.  In any other case at least
seven clear days’ notice shall be given specifying the time and place at which
the poll is to be taken.

 

22.14                     A resolution in writing executed by or on behalf of each member who
would have been entitled to vote upon it if it had been proposed at a general
meeting at which he was present shall be as effectual as if it had been passed
at a general meeting duly convened and held and

 

23

 

may
consist of several instruments in the like form each executed by or on behalf
of one or more members.

 

23.                               VOTES OF MEMBERS

 

23.1                           Subject to any rights or restrictions attached to any shares, on a
show of hands every member who (being an individual) is present in person or
(being a corporation) is present by a duly authorised representative, not being
himself a member entitled to vote, shall have one vote and on a poll every
member shall have one vote for every share of which he is the holder.

 

23.2                           In the case of joint holders the vote of the senior who tenders a
vote, whether in person or by proxy, shall be accepted to the exclusion of the
votes of the other joint holders; and seniority shall be determined by the
order in which the names of the holders stand in the register of members.

 

23.3                           A member in respect of whom an order has been made by any court
having jurisdiction (whether in the United Kingdom or elsewhere) in matters
concerning mental disorder may vote, whether on a show of hands or on a poll,
by his receiver, curator bonis or other person authorised in that behalf
appointed by that court, and any such receiver, curator bonis or other person
may, on a poll, vote by proxy.  Evidence
to the satisfaction of the directors of the authority of the person claiming to
exercise the right to vote shall be deposited at the Office, or at such other
place as is specified in accordance with the Articles for the deposit of
instruments of proxy, not less than 48 hours before the time appointed for
holding the meeting or adjourned meeting at which the right to vote is to be
exercised and in default the right to vote shall not be exercisable.

 

23.4                           No member shall vote at any general meeting or at any separate
meeting of the holders of any class of shares in the Company, either in person
or by proxy, in respect of any share held by him unless all moneys presently
payable by him in respect of that share have been paid.

 

23.5                           No objection shall be raised to the qualification of any voter
except at the meeting or adjourned meeting at which the vote objected to is tendered, and every vote not disallowed at the meeting
shall be valid.  Any objection made in
due time shall be referred to the chairman whose decision shall be final and
conclusive.

 

23.6                           On a poll votes may be given either personally or by proxy.  A member may appoint more than one proxy to
attend on the same occasion.  A member
entitled to more than one vote need not, if he votes, use all his votes or cast
all the votes he uses the same way.

 

23.7                           The appointment of a proxy shall be executed by or on behalf of the
appointor and shall be in any form which is usual or which the directors may
approve.

 

23.8                           The appointment of a proxy shall
be deemed to include the right to demand, or join in demanding, a poll.  The appointment of a proxy shall also be
deemed to confer authority to vote on any amendment of a resolution put to the
meeting for which it is given as the proxy thinks fit.  The appointment of a proxy shall, unless it
provides to the contrary, be valid for any adjournment of the meeting as well
as for the meeting to which it relates.  Deposit of an appointment of a proxy shall not preclude a member
from attending and voting at the meeting or at any adjournment thereof.

 

23.9                           The appointment of a proxy and any authority under which it is
executed or a copy of such authority certified notarially or in some other way
approved by the directors may:

 

(a)                                  in the case of an
instrument in writing, be deposited at the Office or at such other place within
the United Kingdom as is specified in the notice convening the meeting or in
any instrument of proxy sent out by the Company in relation to the meeting not

 

24

 

less than 48 hours before the time for holding the
meeting or adjourned meeting at which the person named in the instrument
proposes to vote; or

 

(b)                                 in the case of an appointment contained in an
electronic communication, where an address has been specified for the purpose
of receiving electronic communications:

 

(i)                                     in the notice convening the meeting, or

 

(ii)                                  in any instrument of proxy sent out by the Company
in relation to the meeting, or

 

(iii)                               in any invitation contained in an electronic
communication to appoint a proxy issued by the Company in relation to the
meeting,

 

be
received at such address not less than 48 hours before the time for holding the
meeting or adjourned meeting at which the person named in the appointment
proposes to vote;

 

(c)                                  in the case of a poll taken more than 48 hours after it is demanded,
be deposited or received as aforesaid after the poll has been demanded and not
less than 24 hours before the time appointed for the taking of the poll; or

 

(d)                                 where the poll is
not taken forthwith but is taken not more than 48 hours after it was demanded,
be delivered at the meeting at which the poll was demanded to the chairman or
to the secretary or to any director;

 

and an appointment of proxy which is not deposited,
delivered or received in a manner so permitted shall be
invalid.

 

23.10                     A vote given or poll demanded by proxy or by the duly authorised
representative of a corporation shall be valid notwithstanding the previous
determination of the authority of the person voting or demanding a poll unless
notice of the determination was received by the Company at the Office or at
such other place at which the instrument of proxy was duly deposited or, where
the appointment of the proxy was contained in an electronic communication, at
the address at which such appointment was duly received before the commencement
of the meeting or adjourned meeting at which the vote is given or the poll
demanded or (in the case of a poll taken otherwise than on the same day as the
meeting or adjourned meeting) the time appointed for taking the poll.

 

24.                               NUMBER OF DIRECTORS

 

24.1                           Unless otherwise determined by ordinary resolution, the number of
directors (other than alternate directors) shall not be subject to any maximum
but shall not be less than two.  A sole
director may exercise all the powers and discretions expressed by the Articles
to be vested in the directors generally.

 

25.                               ALTERNATE DIRECTORS

 

25.1                           Any director (other than an alternate director) may appoint any
other director, or any other person approved by resolution of the directors and
willing to act, to be an alternate director and may remove from office an
alternate director so appointed by him. 
Any appointment or removal of an alternate director shall be by notice
to the Company signed by the director making or revoking the appointment or in
any other manner approved by the directors. 
The notice may be:

 

25

 

(a)                                  delivered personally to the secretary or to a director other than
the director making or revoking the appointment; or

 

(b)                                 sent by post in a prepaid envelope addressed to the Office or to
another address designated by the directors for that purpose or by leaving it
at the Office or such other address; or

 

(c)                                  sent by electronic
communication to an address designated by the directors for that purpose.

 

25.2                           The appointment or removal of an alternate director shall take
effect when the notice is deemed delivered in accordance with Articles 25.1 or
25.3 (as the case may be) or on such later date (if any) specified in the
notice.

 

25.3                           An alternate director shall be entitled to receive notice of all
meetings of directors and of all meetings of committees of directors of which
his appointor is a member, to attend and vote at any such meeting at which the
director appointing him is not personally present, and generally to perform all
the functions of his appointor as a director in his absence but shall not be
entitled to receive any remuneration from the Company for his services as an
alternate director.

 

(a)                                  an alternate
director shall cease to be an alternate director:

 

(b)                                 if his appointor
ceases to be a director; or

 

(c)                                  if his appointor
revokes his appointment pursuant to Article 28; or

 

(d)                                 on the happening of any event which, if he were a director, would
cause him to vacate his office as director; or

 

(e)                                  if he resigns his
office by notice to the Company.

 

25.4                           Save as otherwise provided in the Articles, an alternate director
shall be deemed for all purposes to be a director and shall alone be responsible for his own acts and defaults and he shall
not be deemed to be the agent of the director appointing him.

 

26.                               POWERS OF DIRECTORS

 

26.1                           Subject to the provisions of the Act, the memorandum and the
Articles and to any directions given by special resolution, the business of the
Company shall be managed by the directors who may exercise all the powers of
the Company.  No alteration of the
memorandum or Articles and no such direction shall invalidate any prior act of
the directors which would have been valid if that alteration had not been made
or that direction had not been given. 
The powers given by this Article 26 shall not be limited by any special power given to the
directors by the Articles and a meeting of directors at which a quorum is
present may exercise all powers exercisable by the directors.

 

26.2                           The directors may, by power of
attorney or otherwise, appoint any person to be the agent of the Company for
such purposes and on such conditions as they determine, including authority for
the agent to delegate all or any of his powers.

 

26.3                           The directors may exercise the
voting power conferred by the shares in any body corporate held or owned by the
Company in such manner in all respects as they think fit (including without
limitation the exercise of that power in favour of any resolution appointing
its members or any of them directors of such body corporate, or voting or
providing for the payment of remuneration to the directors of such body
corporate).

 

26

 

27.                               DELEGATION OF DIRECTORS’ POWERS

 

27.1                           The directors may delegate any of their powers to any committee
consisting of one or more directors.  The
directors may also delegate to any managing director or any director holding
any other executive office such of their powers as the directors consider
desirable to be exercised by him.  Any
such delegation shall, in the absence of express provision to the contrary in
the terms of delegation, be deemed to include authority to sub-delegate all or
any of the powers delegated to one or more directors (whether or not acting as
a committee) or to any employee or agent of the company.  Any such delegation may be made subject to
such conditions as the directors may specify, and may be revoked or
altered.  Subject to any conditions
imposed by the directors, the proceedings of a committee with two or more
members shall be governed by the Articles regulating the proceedings of
directors so far as they are capable of applying.

 

27.2                           The directors may appoint any
person to any office or employment having a designation or title including the
word “director” and/or may attach such a designation or title to any existing
office or employment with the Company and may terminate any such appointment or
the use of any such designation or title. 
The inclusion of the word “director” in the designation or title of any
such office or employment shall in no way imply that the holder is a director
of the Company, and the holder shall not thereby be empowered in any respect to
act as, or be deemed to be, a director of the Company for any of the purposes
of the Articles.

 

28.                               APPOINTMENT AND REMOVAL OF DIRECTORS

 

28.1                           Without prejudice to the powers of the Company under section 303
of the Act to remove a director by ordinary resolution, the holder or holders
for the time being of more than one half in nominal value of the shares giving
the right to attend and vote at a general meeting of the Company may at any
time and from time to time appoint any person who is willing to act to be a
director, either to fill a vacancy or as an additional director, and may remove
any director from office.  Any appointment
or removal of a director under this Article 28 shall be by notice to the
Company signed by or on behalf of the appointor or appointors (which may
consist of several documents in the like form each signed by or on behalf of
one or more appointors).  The notice may
be:

 

(a)                                  delivered personally to the secretary or to a director other than
the director being appointed or removed; or

 

(b)                                 sent by post in a prepaid envelope addressed to the Office or to
another address designated by the directors for that purpose or by leaving it
at the Office or such other address; or

 

(c)                                  sent by electronic
communication to an address designated by the directors for that purpose.

 

The appointment or removal shall take
effect when the notice is deemed delivered in accordance with Article 25.1
or Article 25.3 (as the case may be) or on such later date (if any)
specified in the notice.

 

28.2                           The directors shall also have the power to appoint any person who is
willing to act to be a director, either to fill a vacancy or as an addition to
the existing directors, subject to any maximum for the time being in force.

 

29.                               DISQUALIFICATION OF DIRECTORS

 

29.1                           The office of a director shall be vacated if:

 

27

 

(a)                                  he ceases to be a director by virtue of any provision of the Act or
he becomes prohibited by law from being a director; or

 

(b)                                 he becomes bankrupt
or makes any arrangement or composition with his creditors generally; or

 

(c)                                  he is, or may be,
suffering from mental disorder and either:

 

(i)                                     he is admitted to hospital in pursuance of an application for
admission for treatment under the Mental Health Act 1983, or in Scotland, an
application for admission under the Mental Health (Scotland) Act 1984; or

 

(ii)                                  an order is made by a court having jurisdiction (whether in the United
Kingdom or elsewhere) in matters concerning mental disorder for his detention
or for the appointment of a receiver, curator bonis or other person to exercise
powers with respect to his property or affairs;

 

(d)                                 he resigns his
office by notice to the Company; or

 

(e)                                  he shall for more
than six consecutive months have been absent without permission of the
directors from meetings of the directors held during that period and the
directors resolve that his office be vacated; or

 

(f)                                    he is convicted of a criminal offence involving fraud or dishonesty
and the directors resolve that he shall for that reason cease to be a director;
or

 

(g)                                 he is removed as a
director in accordance with the provisions of Article 28; or

 

(h)                                 he is requested to
resign in writing by all of the other directors.  In calculating the number of directors who
are required to make such a request to the director:

 

(i)                                     an alternate
director appointed by him acting in his capacity as such shall be excluded; and

 

(ii)                                  a director and any
alternate director appointed by him and acting in his capacity as such shall
constitute a single director for this purpose, so that the signature of either
shall be sufficient.

 

30.                               REMUNERATION OF DIRECTORS

 

The directors shall be entitled to such remuneration as
the Company may by ordinary resolution determine and, unless the resolution
provides otherwise, the remuneration shall be deemed to accrue from day to day.

 

31.                               DIRECTORS’ EXPENSES

 

The directors may be paid all travelling,
hotel, and other expenses properly incurred by them in connection with their
attendance at meetings of directors or committees of directors or general
meetings or separate meetings of the holders of any class of shares or of
debentures of the Company or otherwise in connection with the discharge of
their duties.

 

32.                               DIRECTORS’ APPOINTMENTS AND INTERESTS

 

32.1                           Subject to the provisions of the Act the directors may appoint one
or more of their number to the office of managing director or to any other
executive office under the Company and may enter into an agreement or
arrangement with any director for his employment by the Company or for the
provision by him of any services outside the scope of the ordinary duties

 

28

 

of a
director.  Any such appointment,
agreement or arrangement may be made upon such terms as the directors determine
and they may remunerate any such director for his services as they think
fit.  Any appointment of a director to an
executive office shall terminate if he ceases to be a director but without
prejudice to any claim to damages for breach of the contract of service between
the director and the Company.

 

32.2                           Subject to the provisions of the Act, and provided that he has
disclosed to the directors the nature and extent of any material interest of
his a director notwithstanding his office:

 

(a)                                  may be a party to, or otherwise interested in, any transaction or
arrangement with the Company or in which the Company is otherwise interested;

 

(b)                                 may be a director
or other officer of, or employed by, or a party to any transaction or
arrangement with, or otherwise interested in, any body corporate promoted by
the Company or in which the Company is otherwise interested; and

 

(c)                                  shall not, by reason of his office, be accountable to the Company
for any benefit which he derives from any such office or employment or from any
such transaction or arrangement or from any interest in any such body corporate
and no such transaction or arrangement shall be liable to be avoided on the ground
of any such interest or benefit.

 

32.3                           For the purposes of Article 32.2:

 

(a)                                  a general notice given to the directors that a director is to be
regarded as having an interest of the nature and extent specified in the notice
in any transaction or arrangement in which a specified person or class of
persons is interested shall be deemed to be a disclosure that the director has
an interest in any such transaction of the nature and extent so specified; and

 

(b)                                 an interest of
which a director has no knowledge and of which it is unreasonable to expect him
to have knowledge shall not be treated as an interest of his.

 

33.                               DIRECTORS’ BENEFITS, PENSIONS AND
INSURANCE

 

33.1                           The directors may provide benefits, whether by the payment of
gratuities or pensions or by insurance or otherwise, for any director who has
held but no longer holds any executive office or employment with the Company or
with any body corporate which is or has been a subsidiary of the Company or a
predecessor in business of the Company or of any such subsidiary, and for any
member of his family (including a spouse and a former spouse) or any person who
is or was dependent on him, and may (as well before as after he ceases to hold
such office or employment) contribute to any fund and pay premiums for the
purchase or provision of any such benefit.

 

33.2                           Without prejudice to the
provisions of Article 44, the directors may exercise all the powers of the Company to purchase
and maintain insurance for or for the benefit of any person who is or was:

 

(a)                                  a director, other officer, employee or auditor of the Company, or
any body which is or was the holding company or subsidiary undertaking of the
Company, or in which the Company or such holding company or subsidiary
undertaking has or had any interest (whether direct or indirect) or with which
the Company or such holding company or subsidiary undertaking is or was in any
way allied or associated; or

 

(b)                                 a trustee of any pension fund in which employees of the company or
any other body referred to in Article 33.2 is or has been interested,

 

29

 

including without limitation insurance
against any liability incurred by such person in respect of any act or omission
in the actual or purported execution or discharge of his duties or in the
exercise or purported exercise of his powers or otherwise in relation to his
duties, powers or offices in relation to the relevant body or fund.

 

33.3                           Without prejudice to the
generality of Article 33.1, no director or former
director shall be accountable to the Company or the members for any benefit
provided pursuant to Articles 33.1 or 33.2. 
The receipt of any such benefit shall not disqualify any person from
being or becoming a director of the
Company.

 

33.4                           Pursuant to section 719 of the Act, the directors are hereby
authorised to make such provision as may seem appropriate for the benefit of
any persons employed or formerly employed by the Company or any of its
subsidiary undertakings in connection with the cessation or the transfer of the
whole or part of the undertaking of the Company or any subsidiary
undertaking.  Any such provision shall be
made by a resolution of the directors in accordance with section 719.

 

34.                               PROCEEDINGS OF DIRECTORS

 

34.1                           Subject to the provisions of the Articles, the directors may
regulate their proceedings as they think fit. 
A director may, and the secretary at the request of a director shall,
call a meeting of the directors.  Notice
of a meeting of the directors shall be deemed to be properly given to a
director if it is given to him personally or by word of mouth or sent in
writing or by electronic communication to him at his last known address or any
other address given by him to the Company for this purpose.  A director absent or intending to be absent
from the United Kingdom may request that notices of directors’ meetings shall
during his absence be sent in writing or by electronic communication to him at
an address given by him to the Company for this purpose, but such notices need
not be given any earlier than notices given to directors not so absent and, if
no such request is made to the directors, any director may waive notice of a
meeting and any such waiver may be retrospective.

 

34.2                           Questions arising at a meeting shall be decided by a majority of
votes.  In the case of an equality of
votes, the chairman shall be entitled to a casting vote in addition to any
other vote he may have.  A director who
is also an alternate director shall be entitled in the absence of his appointor
to a separate vote on behalf of his appointor in addition to his own vote.

 

34.3                           The quorum for the transaction of
the business of the directors may be fixed by the directors and unless so fixed
at any other number shall be two, except when there is only one director.  If there is only one director, he may
exercise all the powers and discretions conferred on directors by the
Articles.  A person
who holds office only as an alternate director shall, if his appointor is not
present, be counted in the quorum.

 

34.4                           The directors may appoint one of their number
to be the chairman of the board of directors and may at any time remove him
from that office.  Unless he is unwilling
to do so, the director so appointed shall preside at every meeting of directors
at which he is present.  But if there is
no director holding that office, or if the director
holding it is unwilling to preside or is not present within five minutes after
the time appointed for the meeting, the directors present may appoint one of
their number to be chairman of the meeting.

 

34.5                           All acts done by a meeting of directors, or of a committee of
directors, or by a person acting as a director shall, notwithstanding that it
be afterwards discovered that there was a defect in the appointment of any
director or that any of them were disqualified from holding office, or had
vacated office, or were not entitled to vote, be as valid as if every such
person had been duly appointed and was qualified and had continued to be a
director and had been entitled to vote.

 

30

 

34.6                           A resolution in writing signed by all the directors entitled to
receive notice of a meeting of directors or of a committee of directors shall
be as valid and effectual as if it had been passed at a meeting of directors or
(as the case may be) a committee of directors duly convened and held and may
consist of several documents in the like form each signed by one or more
directors; but a resolution signed by an alternate director need not also be
signed by his appointor and, if it is signed by a director who has appointed an
alternate director, it need not be signed by the alternate director in that
capacity.

 

34.7                           The contemporaneous connection of a number of the directors not less
than the quorum, regardless of physical location, by any means of electronic
communication, shall be deemed to constitute a properly held meeting of the
directors so long as the following conditions are met:

 

(a)                                  throughout the
meeting each of the directors taking part must be able to:

 

(i)                                     hear each of the other directors taking part; and

 

(ii)                                  subject as
mentioned below, send and receive communications simultaneously to and from all
of the other directors taking part;

 

34.8                           at the beginning
and at the conclusion of the meeting the chairman shall ask all of those who
have been a party to the proceedings to acknowledge their presence and to
confirm that they have attended throughout the meeting.  Such a meeting shall be deemed to take place
where it is convened to be held or (if no director is present in that place)
where the largest group of those participating is assembled, or, if there is no
such group, where the chairman of the meeting is.  The word “meeting” in the Articles shall be
construed accordingly.

 

The meeting shall have been validly conducted
notwithstanding that a director may have been accidentally disconnected during
the meeting, so long as a quorum of directors were connected at all times.  A minute of the proceedings shall be
sufficient evidence of the observance of the necessary formalities if certified
by a director who was party to them.

 

34.9                           Subject to such disclosure as is required by the Act and the
Articles, a director shall be entitled to vote at any meeting of directors or
of a committee of directors on, and be counted in the quorum present at a
meeting in relation to, any resolution concerning a matter in which he has,
directly or indirectly, an interest or duty which is material and which
conflicts or may conflict with the interests of the Company.

 

35.                               SECRETARY

 

35.1                           Subject to the provisions of the Act, the secretary shall be
appointed by the holder or holders for the time being of more than one half in
nominal value of the shares giving the right to attend and vote at a general
meeting of the Company or the directors for such term, at such remuneration and
upon such conditions as they may think fit and any secretary so appointed may
be removed by such appointor(s).  Any
appointment or removal of a secretary under this Article 35 shall be by
notice to the Company signed by or on behalf of the appointor or appointors
(which may consist of several documents in the like form each signed by or on
behalf of one or more appointors).

 

35.2                           Two or more joint secretaries, each of whom shall have full
authority to act alone and independently of each other, may be appointed
pursuant to the provisions of Article 35.1.

 

36.                               MINUTES

 

36.1                           The directors shall cause minutes to be made in books kept for the
purpose:

 

31

 

(a)                                  of all appointments of officers made by the directors; and

 

(b)                                 of all proceedings
at meetings of the Company, of the holders of any class of shares in the
Company, and of the directors, and of committees of directors, including the
names of the directors present at each such meeting.

 

37.                               THE SEAL, EXECUTION OF DEEDS

 

37.1                           If the Company has a Seal, it shall only be used by the authority of
a resolution of the directors, or a committee of directors authorised by the
directors.  The directors (or the
committee of directors, as the case may be) shall determine who may sign any
instrument to which the Seal is affixed and unless otherwise so determined it
shall be signed by a director and by the secretary or by at least two
directors.  Any document may be executed
under the Seal by impressing the Seal by mechanical means or by printing the
Seal or a facsimile of it on the document or by applying the Seal or a
facsimile of it by any other means to the document.

 

37.2                           A document signed, with the authority of a resolution of the
directors, by a director and the secretary or by two directors and expressed
(in whatever form of words) to be executed by the Company has the same effect
as if executed under the Seal.  For the
purpose of the preceding sentence only, “secretary” shall have the same meaning
as in the Act and not the meaning given to it by Article 2.

 

37.3                           The Company may exercise the powers conferred by section 39 of
the Act with regard to having an official seal for use abroad.

 

38.                               RECORD DATES

 

38.1                           Notwithstanding any other provision of the Articles, the Company or
the directors may fix any date as the record date for any dividend,
distribution, allotment or issue, which may be on or at any time before or
after any date on which the dividend, distribution, allotment or issue is
declared, paid or made.

 

39.                               DIVIDENDS

 

39.1                           Subject to the provisions of the Act, the Company may by ordinary
resolution declare dividends in accordance with the respective rights of the
members, but no dividend shall exceed the amount recommended by the directors.

 

39.2                           Subject to the provisions of the Act the directors may pay interim
dividends in accordance with the respective rights of the members if it appears
to them that they are justified by the profits of the Company available for distribution.  Such interim dividends may be paid in cash or
wholly or partly by the distribution of assets. 
If the share capital is divided into different classes, the directors may
pay interim dividends on shares which confer deferred or non-preferred rights
with regard to dividend as well as on shares which confer preferential rights
with regard to dividend, but no interim dividend shall be paid on shares
carrying deferred or non-preferred rights if, at the time of payment, any
preferential dividend is in arrear.  The
directors may also pay at intervals settled by them any dividend payable at a
fixed rate if it appears to them that the profits available for distribution
justify the payment.  Provided the
directors act in good faith they shall not incur any liability to the holders
of shares conferring preferred rights for any loss they may suffer by the
lawful payment of an interim dividend on any shares having deferred or
non-preferred rights.

 

39.3                           Except as otherwise provided by the rights attached to shares, all
dividends shall be declared and paid according to the amounts paid up on the
shares on which the dividend is paid. 
All dividends shall be apportioned and paid proportionately to the
amounts paid up on the shares

 

32

 

during any portion or portions of the period in
respect of which the dividend is paid; but, if any share is issued on terms
providing that it shall rank for dividend as from a particular date, that share
shall rank for dividend accordingly.

 

39.4                           A general meeting declaring a dividend may, upon the recommendation
of the directors, direct that it shall be satisfied wholly or partly by the
distribution of assets.

 

39.5                           Where any difficulty arises in regard to the distribution of assets
pursuant to the payment or declaration of any dividend, the directors may
settle the same and in particular may issue fractional certificates and fix the
value for distribution of any assets and may determine that cash shall be paid
to any member upon the footing of the value so fixed in order to adjust the
rights of members and may vest any assets in trustees.

 

39.6                           Any dividend or other moneys payable in respect of a share may be
paid by cheque sent by post to the registered address of the person entitled
or, if two or more persons are the holders of the share or are jointly entitled
to it by reason of the death or bankruptcy of the holder, to the registered
address of that one of those persons who is first named in the register of
members or to such person and to such address as the person or persons entitled
may in writing direct.  Every cheque
shall be made payable to the order of the person or persons entitled or to such
other person as the person or persons entitled may in writing direct and
payment of the cheque shall be a good discharge to the Company.  Any joint holder or other person jointly
entitled to a share as aforesaid may give receipts for any dividend or other
moneys payable in respect of the share.

 

39.7                           No dividend or other moneys payable in respect of a share shall bear
interest against the Company unless otherwise provided by the rights attached
to the share.

 

39.8                           Any dividend which has remained unclaimed for twelve years from the
date when it became due for payment shall, if the directors so resolve, be
forfeited and cease to remain owing by the Company.

 

40.                               ACCOUNTS

 

40.1                           No member shall (as such) have any right of inspecting any
accounting records or other book or document of the Company except as conferred
by statute or authorised by the directors or by ordinary resolution of the
Company.

 

41.                               CAPITALISATION OF PROFITS

 

The
directors may with the authority of an ordinary resolution of the Company:

 

(a)                                  subject as hereinafter provided, resolve to capitalise any undivided
profits of the Company not required for paying any preferential dividend
(whether or not they are available for distribution) or any sum standing to the
credit of the Company’s share premium account or capital redemption reserve;

 

(b)                                 appropriate the sum resolved to be capitalised to the members who
would have been entitled to it if it were distributed by way of dividend and in
the same proportions and apply such sum on their behalf either in or towards
paying up the amounts, if any, for the time being unpaid on any shares held by
them respectively, or in paying up in full unissued shares or debentures of the
Company of a nominal amount equal to that sum, and allot the shares or
debentures credited as fully paid to those members, or as they may direct, in
those proportions, or partly in one way and partly in the other; but the share
premium account, the capital redemption reserve, and any profits which are not
available for distribution may, for the purposes of this Article 41(b),
only be applied in paying up unissued shares to be allotted to members credited
as fully paid;

 

33

 

(c)                                  make such provision by the issue of fractional certificates or by
payment in cash or otherwise as they determine in the case of shares or
debentures becoming distributable under this Article 41.1 in fractions; and

 

(d)                                 authorise any person to enter on behalf of all the members concerned
into an agreement with the Company providing for the allotment to them
respectively, credited as fully paid, of any shares or debentures to which they
are entitled upon such capitalisation, any agreement made under such authority
being binding on all such members.

 

42.                               NOTICES

 

42.1                           Any notice to be given to or by any person pursuant to the Articles
(other than a notice calling a meeting of the directors or a committee of the
directors) shall be in writing or shall
be given using electronic communications to an address for the time being
notified for that purpose to the person giving the notice.  The
Company may give any notice to a member:

 

(a)                                  personally;
or

 

(b)                                 by
sending it by post in a prepaid envelope addressed to the member at his
registered address or by leaving it at that address; or

 

(c)                                  by giving it using
an electronic communication to an address for the time being notified to the
company by the member.

 

In the case of joint holders of a share, all notices
shall be given to the joint holder whose name stands first in the register of
members in respect of the joint holding and notice so given shall be sufficient
notice to all the joint holders.

 

42.2                           A member present, either in person or by proxy, at any meeting of
the Company or of the holders of any class of shares in the Company shall be
deemed to have received notice of the meeting and, where requisite, of the purposes
for which it was called.

 

42.3                           Every person who becomes entitled to a share shall be bound by any
notice in respect of that share which, before his name is entered in the
register of members, has been duly given to a person from whom he derives his
title.

 

42.4                           Proof that an envelope containing a notice was properly addressed,
prepaid and posted shall be conclusive evidence that the notice was given.  Proof that a notice contained in an
electronic communication was sent in accordance with guidance issued by the
Institute of Chartered Secretaries and Administrators shall be conclusive
evidence that the notice was given.  A
notice shall be deemed to be given at the expiration of 48 hours after the
envelope containing it was posted or, in the case of a notice contained in an
electronic communication, at the expiration of 48 hours after the time it was
sent.

 

42.5                           A notice may be given by the company to the persons entitled to a
share in consequence of the death or bankruptcy of a member by sending or delivering
it, in any manner authorised by the Articles for the giving of notice to a
member, addressed to them by name, or by the title of representatives of the
deceased, or trustee of the bankrupt or by any like description at the address,
if any, within the United Kingdom supplied for that purpose by the persons
claiming to be so entitled. Until such an address has been supplied, a notice
may be given in any manner in which it might have been given if the death or
bankruptcy had not occurred.

 

34

 

43.                               WINDING UP

 

43.1                           If the Company is wound up, the liquidator may, with the sanction of
an extraordinary resolution of the Company and any other sanction required by
the Act, divide among the members in specie the whole or any part of the assets
of the Company and may, for that purpose, value any assets and determine how
the division shall be carried out as between the members or different classes
of members. The liquidator may, with the like sanction, vest the whole or any
part of the assets in trustees upon such trusts for the benefit of the members
as he with the like sanction determines, but no member shall be compelled to
accept any assets upon which there is a liability.

 

44.                               INDEMNITY

 

44.1                           Subject to the provisions of the Act but without prejudice to any
indemnity to which a director may otherwise be entitled, every director or
other officer or auditor of the Company shall be indemnified out of the assets
of the Company against any liability incurred by him in defending any
proceedings, whether civil or criminal, in which judgment is given in his
favour or in which he is acquitted or in connection with any application in
which relief is granted to him by the court from liability for negligence,
default, breach of duty or breach of trust in relation to the affairs of the
Company.

 

35EXHIBIT 10.09

THIS OPTION AND THE COMMON  SHARES  ISSUABLE  UPON EXERCISE OF THIS OPTION ARE
ISSUED  AND  ISSUABLE  UNDER THE  COMPANY'S  2003  CONSULTANT  STOCK  PLAN AND
REGISTERED  PURSUANT  TO A FORM  S-8  REGISTRATION  STATEMENT  FILED  WITH THE
SECURITIES EXCHANGE COMMISSION ON MARCH 3, 2003.

                  Right to  Purchase  100,000  Shares of Common  Stock of Cinema
                  Ride, Inc. (subject to adjustment as provided herein)

                     AMENDED COMMON STOCK PURCHASE OPTION

                        Issue Date:  June 16, 2004 Amendment  Date:  January 31,
                        2005

      CINEMA RIDE,  INC., a corporation  organized under the laws of the State
of Delaware (the "Company"),  hereby certifies that, for value received, Erick
E. Richardson,  or assigns (the "Holder"),  is entitled,  subject to the terms
set forth  below and the terms  set  forth in the  Company's  2003  Consultant
Stock  Plan,  to purchase  from the  Company  from and after the Issue Date of
this Option and at any time or from time to time before 5:00 p.m.,  California
time,  January 31, 2010 (the "Expiration  Date"), up to 100,000 fully paid and
nonassessable  shares  of  Common  Stock (as  hereinafter  defined),  $.08 par
value,  of the  Company,  at the  Exercise  Price (as defined  below),  issued
pursuant to the Company's 2003 Consultant  Stock Plan and registered on a Form
S-8 Registration Statement.  The number and character of such shares of Common
Stock and the Exercise  Price are subject to  adjustment  as provided  herein.
This Option  replaces that certain Common Stock  Purchase  Warrant issued June
16, 2004.

      As used  herein  the  following  terms,  unless  the  context  otherwise
requires, have the following respective meanings:

      (a)   The term "Company" shall include Cinema Ride, Inc.  (including its
pending  name  change to Tix  Corporation)  and any  corporation  which  shall
succeed or assume the obligations of Cinema Ride, Inc. hereunder.

      (b)   The term "Common Stock"  includes (a) the Company's  Common Stock,
par value  $.08 per  share,  and (b) any other  securities  into  which or for
which any of the  securities  described  in (a) may be  converted or exchanged
pursuant  to a plan  of  recapitalization,  reorganization,  merger,  sale  of
assets or otherwise.

      (c)   The term  "Other  Securities"  refers  to any  stock  (other  than
Common  Stock)  and  other  securities  of the  Company  or any  other  person
(corporate or  otherwise)  which the holder of the Option at any time shall be
entitled to receive,  or shall have  received,  on the exercise of the Option,
in lieu of or in  addition  to  Common  Stock,  or which at any time  shall be
issuable  or shall  have been  issued in  exchange  for or in  replacement  of
Common Stock or Other Securities pursuant to Section 4 or otherwise.

      (d)   The term "Exercise Price" shall mean $0.50 per share, as adjusted.

      1.    Exercise of Option.

            1.1.  Number  of Shares  Issuable  upon  Exercise.  From and after
the date hereof  through and including the  Expiration  Date, the Holder shall
be entitled to receive,  upon  exercise of this Option in whole or in part, by

                                      -1-
<PAGE>

delivery of an original or fax copy of the exercise  notice attached hereto as
Exhibit A (the  "Exercise  Notice"),  shares of Common  Stock of the  Company,
subject to  adjustment  pursuant  to Section 4. Such  shares to be  registered
under a Form S-8 Registration  Statement,  and issued pursuant thereto without
a restrictive legend.

      1.2.  Fair Market  Value.  Fair Market Value of a share of Common Stock as
            of a particular date (the "Determination Date") shall mean:

                  (a)   If  the  Company's   Common  Stock  is  traded  on  an
exchange or is quoted on the National Association of Securities Dealers,  Inc.
Automated Quotation  ("NASDAQ") National Market or the NASDAQ SmallCap Market,
then the  closing  or last sale  price,  respectively,  reported  for the last
business day immediately preceding the Determination Date.

                  (b)   If the  Company's  Common  Stock is not  traded  on an
exchange or on the NASDAQ  National  Market or the NASDAQ  SmallCap Market but
is traded on the NASD OTC Bulletin Board,  then the mean of the average of the
closing bid and asked prices  reported for the last  business day  immediately
preceding the Determination Date.

                  (c)   Except  as  provided  in  clause  (d)  below,  if  the
Company's  Common  Stock is not  publicly  traded,  then as the Holder and the
Company  agree or in the absence of agreement  by  arbitration  in  accordance
with the rules then in effect of the American Arbitration Association,  before
a  single  arbitrator  to be  chosen  from a panel  of  persons  qualified  by
education and training to pass on the matter to be decided.

                  (d)   If  the   Determination   Date   is  the   date  of  a
liquidation,  dissolution  or  winding  up,  or  any  event  deemed  to  be  a
liquidation,  dissolution  or winding up  pursuant to the  Company's  charter,
then all  amounts  to be payable  per share to  holders  of the  Common  Stock
pursuant  to the  charter  in the event of such  liquidation,  dissolution  or
winding up,  plus all other  amounts to be payable per share in respect of the
Common Stock in  liquidation  under the charter,  assuming for the purposes of
this  clause (d) that all of the shares of Common  Stock  then  issuable  upon
exercise of the Option are outstanding at the Determination Date.

      2.    Procedure for Exercise.

      2.1   Delivery  of Stock  Certificates,  etc. on  Exercise.  The Company
agrees that the shares of Common Stock  purchased upon exercise of this Option
shall be deemed to be issued to the Holder as the record  owner of such shares
as of the close of business  on the date on which this Option  shall have been
surrendered  and  payment  made  for  such  shares  as  aforesaid.  As soon as
practicable  after the exercise of this Option in full or in part,  and in any
event  within  3  business  days  thereafter,   the  Company  at  its  expense
(including the payment by it of any  applicable  issue taxes) will cause to be
issued in the name of and  delivered  to the Holder,  or as such Holder  (upon
payment  by such  holder  of any  applicable  transfer  taxes)  may  direct in
compliance with applicable  securities laws, a certificate or certificates for
the number of duly and validly issued,  fully paid and nonassessable shares of
Common Stock (or Other  Securities)  to which such Holder shall be entitled on
such  exercise,  plus,  in lieu of any  fractional  share to which such holder
would  otherwise be entitled,  cash equal to such  fraction  multiplied by the
then Fair  Market  Value of one full share,  together  with any other stock or
other  securities and property  (including  cash,  where  applicable) to which
such  Holder  is  entitled  upon  such  exercise  pursuant  to  Section  1  or
otherwise.

      2.2.  Exercise.

            (a)   Payment  may be made either in (i) cash or by  certified  or
official  bank  check  payable  to the  order  of  the  Company  equal  to the

                                      -2-
<PAGE>

applicable  aggregate Exercise Price, (ii) by conversion of legal fees owed by
Company,  (iii) by delivery of the Option,  Common Stock  and/or  Common Stock
receivable  upon exercise of the Option in accordance  with Section (b) below,
or (iv) by a combination  of any of the foregoing  methods,  for the number of
Common  Shares  specified  in such  form (as  such  exercise  number  shall be
adjusted to reflect  any  adjustment  in the total  number of shares of Common
Stock  issuable  to the  holder per the terms of this  Option)  and the Holder
shall thereupon be entitled to receive the number of duly authorized,  validly
issued,  fully-paid  and  non-assessable  shares  of  Common  Stock  (or Other
Securities) determined as provided herein.

            (b)   Notwithstanding  any provisions  herein to the contrary,  if
the  Fair  Market  Value of one  share of  Common  Stock is  greater  than the
Exercise  Price (at the date of  calculation  as set forth below),  in lieu of
exercising  this Option for cash, the Holder may elect to receive shares equal
to the value (as  determined  below) of this  Option (or the  portion  thereof
being  exercised) by surrender of this Option at the  principal  office of the
Company  together with the properly  endorsed  Exercise  Notice in which event
the  Company  shall  issue to the  Holder a number of  shares of Common  Stock
computed using the following formula:

                  X=Y (A-B)
                       ---
                         A

            Where X=    the  number of shares of Common  Stock to be issued to
                        the Holder

                  Y=    the  number  of shares  of  Common  Stock  purchasable
                        under the  Option  or, if only a portion of the Option
                        is being  exercised,  the portion of the Option  being
                        exercised (at the date of such calculation)

                  A=    the Fair  Market  Value of one share of the  Company's
                        Common Stock (at the date of such calculation)

                  B=    Exercise  Price  (as  adjusted  to the  date  of  such
calculation)

      3.    Adjustment for Reorganization, Consolidation, Merger, etc.

      3.1.  Reorganization, Consolidation, Merger, etc. In case at any
time or from time to time, the Company shall (a) effect a reorganization,  (b)
consolidate  with or merge  into any  other  person,  or (c)  transfer  all or
substantially  all of its  properties  or assets to any other person under any
plan or arrangement  contemplating  the  dissolution of the Company,  then, in
each such case,  as a condition  to the  consummation  of such a  transaction,
proper and adequate  provision shall be made by the Company whereby the Holder
of this Option,  on the  exercise  hereof as provided in Section 1 at any time
after the consummation of such reorganization,  consolidation or merger or the
effective  date of such  dissolution,  as the case may be, shall  receive,  in
lieu of the  Common  Stock (or Other  Securities)  issuable  on such  exercise
prior to such  consummation  or such  effective  date,  the  stock  and  other
securities and property  (including cash) to which such Holder would have been
entitled upon such  consummation  or in connection with such  dissolution,  as
the case may be, if such  Holder had so  exercised  this  Option,  immediately
prior  thereto,  all subject to further  adjustment  thereafter as provided in
Section 4.

      3.2. Dissolution. In the event of any dissolution of the Company following
the  transfer  of all or  substantially  all of its  properties  or assets,  the
Company, prior to such dissolution,  shall at its expense deliver or cause to be
delivered the stock and other  securities and property  (including  cash,  where
applicable)  receivable by the Holder of the Option after the effective  date of
such  dissolution  pursuant to Section 3.1 to a bank or trust company having its
principal office in Los Angeles, CA, as trustee for the Holder of the Option.

                                      -3-
<PAGE>

      3.3. Continuation of Terms. Upon any reorganization, consolidation, merger
or transfer (and any  dissolution  following  any transfer)  referred to in this
Section 3, this  Option  shall  continue  in full force and effect and the terms
hereof  shall be  applicable  to the  shares of stock and other  securities  and
property  receivable  on the exercise of this Option after the  consummation  of
such   reorganization,   consolidation  or  merger  or  the  effective  date  of
dissolution  following  any such  transfer,  as the case  may be,  and  shall be
binding upon the issuer of any such stock or other securities, including, in the
case of any such transfer,  the person acquiring all or substantially all of the
properties  or assets of the  Company,  whether  or not such  person  shall have
expressly  assumed  the terms of this  Option as  provided  in Section 4. In the
event  this  Option  does not  continue  in full  force  and  effect  after  the
consummation of the transactions  described in this Section 3, then only in such
event  will  the  Company's  securities  and  property  (including  cash,  where
applicable)  receivable by the holders of the Option be delivered to the Trustee
as contemplated by Section 3.2.

      4.    Extraordinary  Events  Regarding  Common Stock.  In the event that
the  Company  shall  (a) issue  additional  shares  of the  Common  Stock as a
dividend or other  distribution on outstanding Common Stock, (b) subdivide its
outstanding  shares of Common Stock, or (c) combine its outstanding  shares of
the Common Stock into a smaller  number of shares of the Common  Stock,  then,
in each  such  event,  the  Exercise  Price  shall,  simultaneously  with  the
happening of such event,  be adjusted by  multiplying  the then Exercise Price
by a fraction,  the numerator of which shall be the number of shares of Common
Stock  outstanding  immediately  prior to such  event and the  denominator  of
which shall be the number of shares of Common  Stock  outstanding  immediately
after  such  event,  and the  product  so  obtained  shall  thereafter  be the
Exercise Price then in effect.  The Exercise Price,  as so adjusted,  shall be
readjusted  in the same manner upon the happening of any  successive  event or
events  described  herein in this  Section  4. The  number of shares of Common
Stock that the holder of this Option shall thereafter,  on the exercise hereof
as  provided  in Section 1, be entitled  to receive  shall be  increased  to a
number  determined  by  multiplying  the number of shares of Common Stock that
would  otherwise  (but for the  provisions  of this  Section 4) be issuable on
such exercise by a fraction of which (a) the  numerator is the Exercise  Price
that would  otherwise (but for the provisions of this Section 4) be in effect,
and (b) the  denominator  is the Exercise  Price in effect on the date of such
exercise.

      5.    Certificate as to  Adjustments.  In each case of any adjustment or
readjustment in the shares of Common Stock (or Other  Securities)  issuable on
the  exercise of the Option,  the Company at its expense will  promptly  cause
its Chief  Financial  Officer or other  appropriate  designee to compute  such
adjustment  or  readjustment  in  accordance  with the terms of the Option and
prepare a  certificate  setting  forth such  adjustment  or  readjustment  and
showing in detail the facts upon which  such  adjustment  or  readjustment  is
based,  including a statement of (a) the consideration  received or receivable
by  the  Company  for  any  additional   shares  of  Common  Stock  (or  Other
Securities)  issued or sold or deemed  to have  been  issued or sold,  (b) the
number of shares of Common Stock (or Other  Securities)  outstanding or deemed
to be  outstanding,  and (c) the  Exercise  Price and the  number of shares of
Common  Stock  to  be  received  upon  exercise  of  this  Option,  in  effect
immediately  prior to such  adjustment  or  readjustment  and as  adjusted  or
readjusted as provided in this Option.  The Company will forthwith mail a copy
of each such  certificate  to the holder of the Option and any Option agent of
the Company (appointed pursuant to Section 11 hereof).

      6.    Reservation  of Stock,  etc.  Issuable on Exercise of Option.  The
Company will at all times reserve and keep available,  solely for issuance and
delivery  on the  exercise  of the  Option,  shares of Common  Stock (or Other
Securities)  from time to time  issuable on the  exercise of the Option,  such
shares to be issuable under the 2003  Consultant  Stock Plan and registered on
a Form S-8 Registration Statement.

      7.    Assignment;   Exchange  of  Option.  Subject  to  compliance  with
applicable  securities laws, this Option, and the rights evidenced hereby, may
be transferred by any registered  holder hereof (a "Transferor")  with respect
to any or all of the Shares.  On the  surrender  for  exchange of this Option,

                                      -4-
<PAGE>

with the  Transferor's  endorsement  in the form of Exhibit B attached  hereto
(the  "Transferor  Endorsement  Form") and together with  evidence  reasonably
satisfactory   to  the  Company   demonstrating   compliance  with  applicable
securities  laws,  which shall include,  without  limitation,  a legal opinion
from  the  Transferor's   counsel  that  such  transfer  is  exempt  from  the
registration  requirements of applicable  securities  laws, the Company at its
expense but with payment by the Transferor of any applicable  transfer  taxes)
will  issue and  deliver  to or on the order of the  Transferor  thereof a new
Option of like tenor, in the name of the Transferor  and/or the  transferee(s)
specified in such Transferor  Endorsement Form (each a "Transferee"),  calling
in the  aggregate  on the face or faces  thereof  for the  number of shares of
Common Stock called for on the face or faces of the Option so  surrendered  by
the Transferor.

      8.    Replacement   of  Option.   On  receipt  of  evidence   reasonably
satisfactory to the Company of the loss,  theft,  destruction or mutilation of
this Option and, in the case of any such loss,  theft or  destruction  of this
Option,  on  delivery  of  an  indemnity   agreement  or  security  reasonably
satisfactory  in form and  amount to the  Company  or, in the case of any such
mutilation,  on surrender and cancellation of this Option,  the Company at its
expense  will  execute  and  deliver,  in lieu  thereof,  a new Option of like
tenor.

      9.    Option  Agent.  The  Company  may,  by written  notice to the each
holder of the  Option,  appoint an agent for the  purpose  of  issuing  Common
Stock (or  Other  Securities)  on the  exercise  of this  Option  pursuant  to
Section 1,  exchanging  this Option  pursuant to Section 7, and replacing this
Option  pursuant to Section 8, or any of the  foregoing,  and  thereafter  any
such issuance,  exchange or replacement,  as the case may be, shall be made at
such office by such agent.

      10.   Transfer   on  the   Company's   Books.   Until  this   Option  is
transferred on the books of the Company,  the Company may treat the registered
holder hereof as the absolute  owner hereof for all purposes,  notwithstanding
any notice to the contrary.

      11.   Notices,  etc.  All  notices  and  other  communications  from the
Company  to the  Holder  of  this  Option  shall  be  mailed  by  first  class
registered or certified  mail,  postage  prepaid,  at such address as may have
been  furnished  to the Company in writing by such  holder or,  until any such
Holder  furnishes  to the Company an address,  then to, and at the address of,
the  last  Holder  of this  Option  who has so  furnished  an  address  to the
Company.

      12.   Voluntary  Adjustment by the Company.  The Company may at any time
during the term of this Option reduce the then current  Exercise  Price to any
amount  and  for any  period  of  time  deemed  appropriate  by the  Board  of
Directors of the Company.

      13.   Miscellaneous.  This  Option and any term  hereof may be  changed,
waived,  discharged or terminated  only by an instrument in writing  signed by
the party  against  which  enforcement  of such change,  waiver,  discharge or
termination  is sought.  This Option  shall be governed  by and  construed  in
accordance  with the laws of State of California  without regard to principles
of  conflicts  of  laws.  Any  action  brought   concerning  the  transactions
contemplated  by this  Option  shall be  brought  only in the state  courts of
California  or in the  federal  courts  located  in the  state of  California;
provided,  however,  that the Holder may  choose to waive this  provision  and
bring an action outside the state of  California.  The  individuals  executing
this Option on behalf of the Company  agree to submit to the  jurisdiction  of
such courts and waive trial by jury.  The  prevailing  party shall be entitled
to recover from the other party its reasonable  attorney's  fees and costs. In
the event that any provision of this Option is invalid or unenforceable  under
any  applicable  statute or rule of law, then such  provision  shall be deemed
inoperative  to the extent that it may conflict  therewith and shall be deemed
modified  to  conform  with such  statute or rule of law.  Any such  provision
which may prove  invalid or  unenforceable  under any law shall not affect the
validity  or  enforceability  of any  other  provision  of  this  Option.  The
headings in this  Option are for  purposes of  reference  only,  and shall not

                                      -5-
<PAGE>

limit  or  otherwise  affect  any of  the  terms  hereof.  The  invalidity  or
unenforceability  of any provision  hereof shall in no way affect the validity
or  enforceability  of any other  provision.  The  Company  acknowledges  that
legal counsel  participated in the preparation of this Option and,  therefore,
stipulates that the rule of construction  that  ambiguities are to be resolved
against the drafting party shall not be applied in the  interpretation of this
Option to favor any party against the other party.

      IN WITNESS  WHEREOF,  the Company has executed this Amended Common Stock
Purchase Option as of January 31, 2005.

                              CINEMA RIDE, INC.

                              By:_____________________________________
                                    Mitch Francis, President

                                      -6-
<PAGE>

                                                                  Exhibit A
                             FORM OF SUBSCRIPTION
                  (To be signed only on exercise of Option)

TO:  Cinema Ride, Inc.

The  undersigned,  pursuant to the provisions set forth in the attached Option
(No.____), hereby irrevocably elects to purchase (check applicable box):

___   ________ shares of the Common Stock covered by such Option;

___   the  maximum  number of shares of Common  Stock  covered by such  Option
pursuant to the cashless exercise procedure set forth in Section 2; or

__    ________  shares of Common Stock covered by such Option  pursuant to the
conversion of outstanding legal fees.

The  undersigned  herewith  makes payment of the full Exercise  Price for such
shares  at  the  price  per  share  provided  for in  such  Option,  which  is
$___________.  Such payment takes the form of (check applicable box or boxes):

___   $__________ in lawful money of the United States; and/or

___   the   cancellation  of  such  portion  of  the  attached  Option  as  is
exercisable  for a total of  _______  shares  of  Common  Stock  (using a Fair
Market Value of $_______ per share for purposes of this calculation); and/or

___   the  cancellation  of such  number  of  shares  of  Common  Stock  as is
necessary,  in accordance with the formula set forth in Section 2, to exercise
this  Option  with  respect to the  maximum  number of shares of Common  Stock
purchasable  pursuant to the cashless exercise  procedure set forth in Section
2.

The undersigned  requests that the  certificates  for such shares be issued in
the  name  of,  and  delivered  to   ____________________   whose  address  is
______________________________________________________________________________

The  undersigned  represents  and  options  that all  offers  and sales by the
undersigned  of the  securities  issuable  upon  exercise of the within Option
shall  be  made  pursuant  to  registration  of the  Common  Stock  under  the
Securities  Act of 1933, as amended (the  "Securities  Act") or pursuant to an
exemption from registration under the Securities Act.

Dated:___________________           __________________________________________
                                    (Signature  must conform to name of holder
                                    as specified on the face of the Option)

                                    __________________________________________
                                    (Address)

                                      -7-
<PAGE>

                                                                  Exhibit B

                        FORM OF TRANSFEROR ENDORSEMENT
                  (To be signed only on transfer of Option)

            For value received,  the undersigned  hereby sells,  assigns,  and
transfers unto the person(s) named below under the heading  "Transferees"  the
right  represented  by the within Option to purchase the percentage and number
of shares of Common  Stock of Cinema  Ride,  Inc.  to which the within  Option
relates  specified  under the headings  "Percentage  Transferred"  and "Number
Transferred,"  respectively,  opposite  the  name(s)  of  such  person(s)  and
appoints  each such person  Attorney to transfer its  respective  right on the
books of Cinema Ride, Inc. with full power of substitution in the premises.

       Transferees          Percentage                       Number
       -----------          Transferred                    Transferred
                            -----------                    -----------

--------------------------- ------------------------- -------------------------
--------------------------- ------------------------- -------------------------

--------------------------- ------------------------- -------------------------
--------------------------- ------------------------- -------------------------

--------------------------- ------------------------- -------------------------
--------------------------- ------------------------- -------------------------

Dated:                  ,
       -----------------  ---------

                                    ------------------------------------------
                                    (Signature  must conform to name of holder
                                    as specified on the face of the option)

Signed in the presence of:

-------------------------------     ------------------------------------------
      (Name)                                    (address)

                                    ------------------------------------------
ACCEPTED AND AGREED:                      (address)
[TRANSFEREE]

---------------------------------
      (Name)
                                      -8-

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