Document:

EX-10.1

Exhibit 10.1

FIRST AMENDMENT TO 

SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

     This First Amendment to Second Amended and Restated Loan and Security Agreement (the “First
Amendment”) is made as of September 12, 2008 by and among

     National City Business Credit, Inc., an Ohio corporation with offices at 2300 Crown
Colony Drive, Suite 202, Quincy, Massachusetts 02169, as administrative agent (in such
capacity, herein the “Administrative Agent”), for the ratable benefit of the “Revolving
Credit Lenders”, who are, at present, those financial institutions identified on the
signature pages of this Agreement and who in the future are those Persons (if any) who
become “Revolving Credit Lenders” in accordance with the provisions of the Loan Agreement
(as defined herein);

     National City Business Credit, Inc., as Collateral Agent (in such capacity, herein the
“Collateral Agent”), for the ratable benefit of the Revolving Credit Lenders;

     Wells Fargo Retail Finance LLC and Wachovia Capital Finance Corporation (Central), as
Co-Documentation Agents;

     and

     The Revolving Credit Lenders;

     and

Filene’s Basement, Inc. (the “Borrower”), a Delaware corporation with its principal
executive offices at 3241 Westerville Road, Columbus, Ohio 43224-3751;

in consideration of the mutual covenants contained herein and benefits to be derived herefrom,

W I T N E S S E T H:

	 	A.	 	Reference is hereby made to that certain Second Amended and Restated Loan and
Security Agreement dated as of January 23, 2008 (the “Loan Agreement”) among (i) the
Borrower, (ii) the Revolving Credit Lenders, (iii) the Administrative Agent, (iv) the
Collateral Agent, and (v) the Co-Documentation Agents.
	 
	 	B.	 	The Borrower has advised the Administrative Agent and the Majority Lenders
that Retail Ventures, Inc., an Ohio corporation (the “Parent”) intends to
purchase certain premium income exchangeable securities (the “PIES”, as such
term is further defined in the Loan Agreement).

1

 

	 	C.	 	The Parent’s purchase of the PIES without the consent of the Majority Lenders
would constitute an Event of Default under the Loan Agreement.
	 
	 	D.	 	The Parent and the Borrower have requested that the Revolving Credit Lenders
consent to the Parent’s purchase of the PIES, waive any Events of Default arising
therefrom, and modify and amend certain provisions of the Loan Agreement.
	 
	 	E.	 	The Revolving Credit Lenders have agreed to so consent, waive and modify
certain provisions of the Loan Agreement as provided herein.

Accordingly, the parties hereto agree as follows:

	1.	 	Definitions. Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to such terms in the Loan Agreement.

	2.	 	Amendment to Loan Agreement. Article 1 of Loan Agreement is hereby amended by
amending the definition of the term “Permitted Investment” by deleting the word “and” at the
end of clause (o), relettering clause (o) as clause (p) and inserting the following new clause
(o):

“(o) Investments by the Parent consisting of the repurchase of the PIES; and”

	3.	 	Ratification. Each of the Loan Parties hereby ratifies, confirms, and reaffirms all
representations, warranties, and covenants set forth in the Loan Agreement and the other Loan
Documents as of the date hereof. Except as expressly modified herein, all terms and
conditions of the Loan Agreement and the other Loan Documents remain in full force and
effect. Without limiting the generality of the foregoing, the Loan Parties hereby acknowledge
and agree that the amendment described in Section 2 of this First Amendment does not in any
manner amend or modify the terms and conditions of Section 5.28 of the Loan Agreement, all of
which remain in full force and effect.

	4.	 	Conditions Precedent to Effectiveness. This First Amendment shall not be effective
until each of the following conditions precedent has been fulfilled to the satisfaction of the
Administrative Agent:

	 	a.	 	This First Amendment shall have been duly executed and delivered by the
Majority Lenders and the other parties hereto, and shall be in full force and effect
and shall be in form and substance satisfactory to the Administrative Agent and the
Majority Lenders.
	 
	 	b.	 	All action on the part of the Loan Parties necessary for the valid execution,
delivery and performance by the Loan Parties of this First Amendment and all other
documentation, instruments, and agreements to be executed in connection herewith shall
have been duly and effectively taken and

2

 

	 	 	 	evidence thereof satisfactory to the Administrative Agent shall have been provided
to the Administrative Agent.
	 
	 	c.	 	All costs and expenses incurred by the Agent in connection with the
preparation and negotiation of this First Amendment and related documents (including
the fees and expenses of counsel to the Agent), shall have been paid in full.
	 
	 	d.	 	After giving effect to this First Amendment, no Default or Event of Default
shall be then occurring.
	 
	 	e.	 	The Loan Parties shall have executed and delivered to the Administrative
Agent such other documents, instruments, and agreements as may be required by the
Administrative Agent.

	5.	 	Miscellaneous.

	 	a.	 	This First Amendment may be executed in several counterparts and by each
party on a separate counterpart, each of which, when so executed and delivered, shall
be an original, and all of which together shall constitute one instrument.
	 
	 	b.	 	This First Amendment expresses the entire understanding of the parties with
respect to the transactions contemplated hereby. No prior negotiations or discussions
shall limit, modify, or otherwise affect the provisions hereof.
	 
	 	c.	 	Any determination that any provision of this First Amendment or any
application hereof is invalid, illegal or unenforceable in any respect and in any
instance shall not affect the validity, legality, or enforceability of such provision
in any other instance, or the validity, legality or enforceability of any other
provisions of this First Amendment.
	 
	 	d.	 	The Loan Parties shall pay on demand all costs and expenses of the Agent,
including, without limitation, reasonable attorneys’ fees in connection with the
preparation, negotiation, execution and delivery of this First Amendment.
	 
	 	e.	 	This First Amendment and all rights and obligations hereunder, including
matters of construction, validity, and performance, shall be governed by the law of
State of Ohio.

[SIGNATURE PAGES FOLLOW]

3

 

     IN WITNESS WHEREOF, the parties have duly executed this First Amendment as of the day and year
first above written.

	 	 	 	 	 	 
	 	 	FILENE’S BASEMENT, INC., as Borrower
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/ James McGrady
	 

	 	 	 	 
	 

	 	Name:
	 	James McGrady
	 

	 	Title:
	 	Executive Vice President, Chief

Financial Officer, Treasurer

and Secretary

Signature Page to First Amendment to

Second Amended and Restated Loan and Security Agreement

 

 

	 	 	 	 	 	 
	 	 	NATIONAL CITY BUSINESS CREDIT, INC.,

as Administrative Agent, Collateral

Agent and Revolving Credit Lender
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

Signature Page to First Amendment to

Second Amended and Restated Loan and Security Agreement

 

 

	 	 	 	 	 	 
	 	 	WELLS FARGO RETAIL FINANCE, LLC,

as a Co-Documentation Agent and a

Revolving Credit Lender
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

Signature Page to First Amendment to

Second Amended and Restated Loan and Security Agreement

 

 

	 	 	 	 	 	 
	 

	 	WACHOVIA CAPITAL FINANCE CORPORATION

(CENTRAL), as a Co-Documentation Agent

and a Revolving Credit Lender
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

Signature Page to First Amendment to

Second Amended and Restated Loan and Security Agreement

 

 

The foregoing is acknowledged and agreed:

	 	 	 	 	 	 	 
	RETAIL VENTURES, INC.
	 
	 	 
	 
	 	 
	By:

	 	/s/ James McGrady
	 

	 	 
	Name:

	 	James McGrady
	Title:

	 	Executive Vice President, Chief Financial Officer, Treasurer and
Secretary
	 
	 	 
	 
	 	 
	 
	 	 
	RETAIL VENTURES LICENSING, INC.
	 
	 	 
	 
	 	 
	By:

	 	/s/ James McGrady
	 

	 	 
	Name:

	 	James McGrady
	Title:

	 	Executive Vice President, Chief Financial Officer, Treasurer and
Secretary
	 
	 	 
	 
	 	 
	 
	 	 
	RETAIL VENTURES IMPORTS, INC.
	 
	 	 
	 
	 	 
	By:

	 	/s/ James McGrady
	 

	 	 
	Name:

	 	James McGrady
	Title:

	 	Executive Vice President, Chief Financial Officer, Treasurer and
Secretary
	 
	 	 
	 
	 	 
	 
	 	 
	RETAIL VENTURES SERVICES, INC.
	 
	 	 
	 
	 	 
	By:

	 	/s/ James McGrady
	 

	 	 
	Name:

	 	James McGrady
	Title:

	 	Executive Vice President, Chief Financial Officer, Treasurer and
Secretary

Signature Page to First Amendment to

Second Amended and Restated Loan and Security AgreementEX-10.1

Exhibit 10.1

DATED September 16, 2008

HANDLEMAN UK LIMITED

and

HANDLEMAN COMPANY INC

as Sellers

and

OAKWOOD DISTRIBUTION LIMITED

as Buyer

ASSET PURCHASE AGREEMENT

for the purchase of part of the

business of Handleman UK Limited and certain related assets

Berwin Leighton Paisner LLP

Adelaide House London Bridge London EC4R 9HA

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

 

 

Contents

	 	 	 	 	 	 	 
	Clause	 	Name	 	Page
	 
	 	 	 	 	 	 
	1

	 	Definitions and interpretation
	 	 	1	 
	2

	 	Sale of Business and Assets including the Property
	 	 	11	 
	3

	 	Excluded assets
	 	 	13	 
	4

	 	Consideration
	 	 	13	 
	5

	 	Completion
	 	 	14	 
	6

	 	Retentions and Retention Accounts
	 	 	15	 
	7

	 	Business Contracts
	 	 	19	 
	8

	 	Liabilities
	 	 	20	 
	9

	 	Apportionments
	 	 	21	 
	10

	 	Debts
	 	 	22	 
	11

	 	Licence of Proprietary Software
	 	 	23	 
	12

	 	Employees
	 	 	23	 
	13

	 	Warranties and indemnities
	 	 	25	 
	14

	 	Guarantee
	 	 	26	 
	15

	 	Assignment and succession
	 	 	27	 
	16

	 	Post-completion provisions
	 	 	27	 
	17

	 	Announcements
	 	 	28	 
	18

	 	VAT
	 	 	28	 
	19

	 	Information and further assurance
	 	 	29	 
	20

	 	Rights and remedies of the Buyer
	 	 	30	 
	21

	 	Waiver
	 	 	31	 
	22

	 	No merger
	 	 	31	 
	23

	 	Cumulative rights
	 	 	31	 
	24

	 	Contracts (Rights of Third Parties) Act 1999
	 	 	31	 
	25

	 	Costs
	 	 	31	 
	26

	 	Set-off
	 	 	31	 
	27

	 	Invalidity
	 	 	32	 
	28

	 	Counterparts
	 	 	32	 
	29

	 	Communications
	 	 	32	 
	30

	 	Entire agreement
	 	 	34	 
	31

	 	Proper law
	 	 	34	 
	 	 	 	 	 	 	 
	Schedule	 	Name	 	Page
	 
	 	 	 	 	 	 
	1

	 	Business, Excluded Business and Consideration
	 	 	35	 
	1

	 	Part 1 The Business
	 	 	35	 
	1

	 	Part 2 The Excluded Business
	 	 	35	 
	1

	 	Part 3 Apportionment of Consideration
	 	 	35	 
	 
	 	 	 	 	 	 
	2

	 	The Property
	 	 	36	 
	 
	 	 	 	 	 	 
	3

	 	Schedule 3
	 	 	37	 
	3

	 	Part 1
	 	 	37	 
	3

	 	Part 2 US Employees
	 	 	47	 
	3

	 	Part 3 Non Transferring Employees
	 	 	48	 
	 
	 	 	 	 	 	 
	4

	 	Contracts
	 	 	49	 
	4

	 	Part 1 Business Contracts
	 	 	49	 
	4

	 	Part 2 Excluded Business Contracts
	 	 	51	 
	 
	 	 	 	 	 	 
	5

	 	Licences
	 	 	54	 

 

 

	 	 	 	 	 	 	 
	Schedule	 	Name	 	Page
	 
	 	 	 	 	 	 
	6

	 	Motor Vehicles, Plant, US Assets and other assets
	 	 	55	 
	6

	 	Part 1 Motor Vehicles
	 	 	55	 
	6

	 	Part 2 Plant
	 	 	55	 
	6

	 	Part 3 US Assets
	 	 	55	 
	 
	 	 	 	 	 	 
	7

	 	The Leased Assets
	 	 	57	 
	 
	 	 	 	 	 	 
	8

	 	Software
	 	 	59	 
	8

	 	Part 1 Licensed Software
	 	 	59	 
	8

	 	Part 2 Proprietary Software
	 	 	60	 
	 
	 	 	 	 	 	 
	9

	 	Schedule 9
	 	 	62	 
	9

	 	Part 1 Business Intellectual Property Rights
	 	 	62	 
	9

	 	Part 2 Excluded Business IPR
	 	 	62	 
	 
	 	 	 	 	 	 
	10

	 	Warranties
	 	 	63	 
	 
	 	 	 	 	 	 
	11

	 	Taxation Warranties
	 	 	75	 
	 
	 	 	 	 	 	 
	12

	 	Seller’s protection provisions
	 	 	77	 
	 
	 	 	 	 	 	 
	13

	 	Fixed Assets Register
	 	 	81	 
	13

	 	Part 1
	 	 	81	 
	 
	 	 	 	 	 	 
	14

	 	Collateral Warranties
	 	 	89	 
	Schedule 15

	 
	 	 	 	 	 	 
	Apportionments and adjustments	 	 	91	 
	15

	 	Part 1 Anticipated apportionments
	 	 	91	 
	15

	 	Part 2 Agreed adjustments
	 	 	92	 
	 
	 	 	 	 	 	 
	Execution Page	 	 	93	 

 

 

Documents in the Agreed Form

Disclosure Letter

Transitional Services Agreement

Settlement Agreement

Deeds of assignment of registered IPR

Escrow Agreement

Retention Account: Instructions Letter

TR1

Assignment of Collateral Warranties

Legal Opinion in respect of Handleman Company Inc

 

 

DATED                    2008

PARTIES

	(1)	 	HANDLEMAN UK LIMITED a company incorporated in England with registered number 00931853 whose
registered office is at 27 Leacroft Road Birchwood Warrington Cheshire WA3 6PJ (the “UK
Seller”) and HANDLEMAN COMPANY INC, a corporation incorporated in the state of Michigan, USA
with registered number 184-670 whose registered office is at 500 Kirts Boulevard Troy MI 48084
USA (the “US Seller”) (together the “Sellers”)
	 
	(2)	 	OAKWOOD DISTRIBUTION LIMITED a company incorporated in England with registered number 5721635
whose registered office is at Tesco House, Delamare Road, Cheshunt, Hertfordshire EN8 9SL (the
“Buyer”)

OPERATIVE PROVISIONS

	1	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	In this Agreement:
	 
	 	 	“Accounts Date” means 28 April 2007 in respect of the UK Seller.
	 
	 	 	“Anticipated Apportionments” means the net balance of the anticipated
apportionments set out in Schedule 15, Part 1 (Anticipated apportionments ) owing from
the Sellers to the Buyer and calculated in accordance with the spreadsheet at section
1.9 of the Disclosure Bundle.
	 
	 	 	“Agreed Adjustments” means the net adjustment to the purchase price as set out in
Schedule 15, Part 2 and calculated in accordance with the spreadsheet at section 1.9 of
the Disclosure Bundle.
	 
	 	 	“Agreed Form” means a form agreed between the parties, a copy of which has been
initialled for the purpose of identification by or on behalf of the parties.
	 
	 	 	“Associate” means a Subsidiary Undertaking or Parent Undertaking of that company,
and another Subsidiary Undertaking of any Parent Undertaking of the company.
	 
	 	 	“Audited Accounts” means the audited balance sheet, as at the Accounts Date, and
the audited profit and loss account for the financial year ended on the Accounts Date,
of the UK Seller including the directors’ report and notes (“financial year” being
determined in accordance with section 90 CA 2006).
	 
	 	 	“Assets” means the assets to be purchased by the Buyer from the Sellers and
described in Clause 2.4.
	 
	 	 	“Assumed Liabilities” as defined in Clause 8.2.
	 
	 	 	“Back End Software Materials” means the following software applications used in the
Business:

	 	(a)	 	the Channel of Choice software;
	 
	 	(b)	 	all modifications made to any software licensed from Oracle
Corporation; and

1

 

	 	(c)	 	the Demand Change Management Software
	 
	 	(d)	 	along with the source code for such software and any other materials
the Sellers have, in any form, which relate to the creation, modification or
support of that software.

	 	 	“Business” means the business described in Schedule 1, Part 1 (The Business )
carried on by the UK Seller.
	 
	 	 	“Business Contracts” means those contracts of the Sellers as at Completion in
relation to the Business listed in Schedule 4, Part 1 (Business Contracts ) including
those contracts listed therein that relate to the Licensed Software listed in Schedule
8, Part 1 (Licensed Software ), and including all contracts relating to Non-Direct Stock
listed in Schedule 4, Part 1 (Business Contracts ) but excluding contracts with
Employees and excluding the Excluded Business Contracts.
	 
	 	 	“Business Day” means a day (other than a Saturday or Sunday) on which the clearing
banks in the City of London are open for business.
	 
	 	 	“Business IPR” means any Intellectual Property Rights used or owned by the Sellers
principally or exclusively in the operation of the Business including (but not limited
to) those listed in Schedule 9, Part 1 (Business Intellectual Property Rights ), but
excluding the Excluded Business IPR.
	 
	 	 	“Business Records” means all books and records including, without limitation, all
documents and other material (including all forms of computer or machine readable
material) containing information, know-how, techniques, formulae, designs,
specifications, drawings, data, manuals and instructions, supplier lists, credit
information, catalogues, price lists, sales, marketing and promotional information,
mailing lists, the drawings, specifications and operational and maintenance manuals
relating to the Property (as referred to in clause 8.11 of the Distribution Agreement),
and the business plans and forecasts and stock records relating to the Business but
excluding the Retained Business Records.
	 
	 	 	“Buyer’s Accountants” means PricewaterhouseCoopers LLP of 1 Embankment Place,
London, WC2N 6RH, United Kingdom.
	 
	 	 	“Buyer’s Group” means the Buyer its Parent Undertaking and Subsidiary Undertakings
of its Parent Undertaking.
	 
	 	 	“Buyer’s Solicitors” means Berwin Leighton Paisner LLP, Adelaide House, London
Bridge, London EC4R 9HA.
	 
	 	 	“CA1985” means the Companies Act 1985.
	 
	 	 	“CA2006” means the Companies Act 2006.
	 
	 	 	“Channel of Choice” means the suite of software used within the Business referred
to as “Channel of Choice”, including the OpenOrders database and Order Management
Console and all related utilities, libraries and interfaces, and including the source
code for such software and any other materials the Sellers have, in any form, which
relate to the creation, modification or support of that software.
	 
	 	 	“Claims” means all rights and claims of either Seller (or any member of the
Sellers’ Group) arising at any time (whether before or after the Transfer Date) out of
or in connection with the Business (whether arising under any warranties, 

2

 

	 	 	conditions, guarantees, indemnities, contracts (in each case whether express or implied) or
otherwise howsoever) insofar as they relate to any of the Assets.

	 	 	“Collateral Warranties” means the collateral warranties in favour of the UK Seller
in connection with the development of the Property as listed in Schedule 14 (Collateral
Warranties ).
	 
	 	 	“Companies Acts” means the company law provisions of CA2006, the CA1985, part 2 of
the Companies (Audit, Investigations and Community Enterprise) Act 2004, the Companies
Consolidation (Consequential Provisions) Act 1985 and the Companies Act 1989 insofar as
the same are in force at the date of this Agreement.
	 
	 	 	“Completion” means completion of the sale and purchase of the Business and the
Assets in accordance with Clause 5 (Completion ).
	 
	 	 	“Consideration” as defined in Clause 4.1.
	 
	 	 	“Debts” means all debts owing at Completion to either Seller in connection with the
carrying on of the Business (whether or not invoiced and whether or not due and payable
on such date) but excluding any such debts which fall within the definition of Claims
and the uncollected marketing payments/ marked down payments set out in Schedule 14Part
1.
	 
	 	 	“Disclosure Letter” means the disclosure letter (including the documents scheduled
in and attached thereto) dated with the same date as this Agreement from the Sellers to
the Buyer relating to the Warranties in the Agreed Form.
	 
	 	 	“Distribution Agreement” means the distribution agreement between the UK Seller and
Tesco Stores Limited dated 13 March 2006.
	 
	 	 	“Employees” means only those persons employed by the UK Seller in the Business as
at Completion who are listed in Part1 of Schedule 3 (Employees ) (and, for the avoidance
of doubt, includes Frank Ralko and Nadia Dotsenko).
	 
	 	 	“Employment Income” means general earnings, employment income and specific
employment income for the purposes of the Income Tax (Earnings and Pensions) Act 2003.
	 
	 	 	“Employment Regulations” means the Transfer of Undertakings (Protection of
Employment) Regulations 2006.
	 
	 	 	“Employment Claim” means a claim by the Buyer under Clause 6.4.
	 
	 	 	“Employment Retention” means £350,000 of the Retention.
	 
	 	 	“Encumbrance” includes a mortgage, charge, pledge, lien, rent charge or other
security interest of any description or nature and any interest or legal or equitable
right or claim of any third party or any option or right of pre-emption or right of
conversion or right of set off, any retention of title or hypothecation and any
agreement to create any of the foregoing.
	 
	 	 	“Escrow Agent” means the Buyer’s Solicitors.
	 
	 	 	“Escrow Agreement” means the agreement dated on or around the same date as this
Agreement in the Agreed Form.

3

 

	 	 	“Excluded Assets” means those assets listed in Clause 3 (Excluded assets ).
	 
	 	 	“Excluded Business” means the business described in Schedule 1, Part 2 (The
Excluded Business .
	 
	 	 	“Excluded Business Contracts” means those contracts of the Sellers at Completion in
relation to the Business which are listed in Schedule 4, Part 2 (Excluded Business
Contracts ) and all other contracts of the Sellers not specifically listed as a Business
Contract.
	 
	 	 	“Excluded Business IPR” means the Intellectual Property Rights listed or vested in
the items described in Schedule 9, Part 2 (Excluded Business IPR ).
	 
	 	 	“Excluded Liabilities” has the meaning given in Clause 8.2.
	 
	 	 	“Finally Determined” means either agreed between the Sellers and the Buyer in
writing, withdrawn by the Buyer in writing, or determined by a court of competent
jurisdiction in England from which there is either no further appeal in England or from
whose judgment the Sellers or the Buyer (as the case may be) do not appeal within the
period during which such appeal may properly be brought.
	 
	 	 	“First Retention Release Date” means the date falling three months after
Completion.
	 
	 	 	“Front End Software Materials” means the Warehouse Management System software and
the Proprietary Software residing on the AS400 machines used by the Business along with
the source code for such software and any other materials the Sellers have, in any form,
which relate to the creation, modification or support of that software.
	 
	 	 	“GEC Charge” means the fixed and floating security document dated 30 April 2007
created by the UK Seller in favour of General Electric Capital Corporation, registered
at Companies House on 15 May 2007.
	 
	 	 	“General Retention” means £350,000 of the Retention.
	 
	 	 	“General Claim” means a claim (other than an Employment Claim or an IT Claim) by
the Buyer relating to the General Retention.
	 
	 	 	“Goodwill” means the goodwill of the UK Seller associated with carrying on the
Business but excluding the right to use the name “Handleman”.
	 
	 	 	“HMRC” means Her Majesty’s Revenue & Customs (which shall include its predecessors,
the Inland Revenue and HM Customs and Excise).
	 
	 	 	“Independent Legal Expert” means an independent Counsel of at least ten years call
with relevant commercial expertise and nominated jointly by the Buyer and the UK Seller
or, failing such joint nomination within ten Business Days after a request by either the
Buyer or the UK Seller, such expert shall be nominated at the request of either the
Buyer or the UK Seller by the Chairman for the time being of the Bar Council of England
and Wales.
	 
	 	 	“Intellectual Property Rights” means all copyright and rights in the nature of
copyright, database rights, design rights, patents, rights in inventions, supplementary
protection certificates, petty patents, utility models, semi-conductor topography
rights, plant variety rights, the drawings, specifications and operational and
maintenance manuals relating to the Property (as referred to in 

4

 

	 	 	clause 8.11 of the Distribution Agreement), trade marks (including all goodwill in them) and domain names,
registrations and applications for registration of any of the above, moral rights,
know-how, confidential information, and any other intellectual or industrial property
rights, whether now known or in the future arising, and whether subsisting in the United
Kingdom or any other part of the world.

	 	 	“Inward IPR Licences” means the licences granted to the Sellers by a third party
for use of Intellectual Property Rights.
	 
	 	 	“IT Claim” means a claim by the Buyer under Clause 6.5.
	 
	 	 	“IT Retention” means £800,000 of the Retention.
	 
	 	 	“IT Systems” means any and all information and communications technologies used by
the Sellers in respect of the Business as at Completion including computer hardware,
software (proprietary and third party) operating systems, data, Internet and web sites,
firmware, networking, peripherals and all associated documentation or other
infrastructure equipment or systems.
	 
	 	 	“Lease” means the lease of the Property dated 27 September 2006 between (1) Glasgow
City Council, (2) Handleman UK Limited and (3) Handleman Company Inc.
	 
	 	 	“Leased Assets” means all those assets (including any vehicles) used in, or in
connection with, the Business that are the subject of leasing, rental, hire purchase,
credit or conditional sale agreements, brief particulars of which are set out in
Schedule 7 (The Leased Assets ).
	 
	 	 	“Licences” means the operating licences, permits and certificates used in the
Business which are current or in the process of renewal at Completion, being those
listed in Schedule 5 (Licences ).
	 
	 	 	“Licensed Software” means all software licensed to either Seller from a third party
which is listed in Schedule 8, Part 1 (Licensed Software ).
	 
	 	 	“Licensed Software Materials” means all copies of (if any) modifications to the
Licensed Software and all manuals, data and other materials used by the Business in
relation to the Licensed Software, in whatever format and on whatever media.
	 
	 	 	“London Stock Exchange” means the London Stock Exchange plc.
	 
	 	 	“Month” means a calendar month.
	 
	 	 	“Motor Vehicles” means the motor and commercial vehicles owned by the UK Seller and
listed in Schedule 6 (Motor Vehicles, Plant, US Assets and other assets ).
	 
	 	 	“Movables” means the computer and communication hardware (including personal
computers, laptops, networking and telecommunications equipment and all associated
peripherals), computer discs, cabling, servers, 979
mobile telephones subject to the burden of the relevant Business Contract, loose plant
and machinery, fittings, furniture and furnishings, tools, and other movable equipment
located at the Property or located at the Sellers’ premises at Warrington and used
principally or exclusively in or in connection with the Business, including items which,
although subject to reservation of title by the owners, are under the control of either
Seller, but excluding:

5

 

	 	(a)	 	the personal property of any employees or customers of the Business;
	 
	 	(b)	 	the Non-Direct Stock;
	 
	 	(c)	 	the Motor Vehicles; and
	 
	 	(d)	 	the Excluded Assets.

	 	 	“NIC System” means the system operated pursuant to Social Security Legislation and
any other system applicable outside the United Kingdom for the computation, collection
and recovery of national insurance contributions by earners, employers and others
including, without limitation, the keeping of records and the making of returns
thereunder.
	 
	 	 	“Non-Direct Stock” means all non-direct inventory (other than any non-direct
inventory already the property of the Buyer or a member of the Buyer’s Group) which is
supported by a valid purchase order from a member of the Buyer’s Group wherever held.
	 
	 	 	“Non-Transferred Assets” means the benefit of any contract or arrangement and
property, asset or other right of whatsoever nature (other than the Excluded Assets and
the Assets), whether belonging to a Seller or any other member of the Sellers’ Group,
which are required for, and are used principally or exclusively in or for the purpose of
or arise principally or exclusively in respect of the Business, but are not transferred
to the Buyer at Completion or are otherwise dealt with pursuant to Clause 7 (Business
Contracts ).
	 
	 	 	“Non-Transferring Employees” means those employees listed in Schedule 3, Part 3
(Non Transferring Employees ).
	 
	 	 	“Occupational Legislation” means:

	 	(a)	 	the Offices, Shops and Railway Premises Act 1963;
	 
	 	(b)	 	the Fire Precautions Act 1971;
	 
	 	(c)	 	the Health and Safety at Work etc Act 1974; and
	 
	 	(d)	 	the Disability Discrimination Act 1995.

	 	 	“Open Source Software” means any software used by the Business for which the source code
is made available, free of charge, to the general public. It includes any software
licensed to the Business under the terms of an open source licence agreement, including
the GNU GPL, LGPL, BSD, Apache and Mozilla licences.
	 
	 	 	“Parent Undertaking” and “Subsidiary Undertaking” have the meanings given in
section 1162 CA2006.
	 
	 	 	“Particulars of Employment” means in relation to each Employee:

	 	(a)	 	a copy of the written service agreement of the Employee or (as
appropriate) of the particulars of employment applicable and issued to such
Employee;
	 
	 	(b)	 	the age, sex and date of commencement of employment of the Employee
including any employment with a previous employer which counts as 

6

 

	 	 	 	continuous employment for the purposes of the Employment Rights Act 1996;

	 	(c)	 	particulars of any collective agreement affecting the terms of
employment of the Employee including disciplinary or grievance procedures and any
procedures to be followed in the case of redundancy or dismissal; and

	 	(d)	 	particulars of his rights (if any) under the Seller’s Pension Scheme
and all such information as may be required to determine his retirement and leaving
service benefit thereunder including (without limitation) his rate of pay current
at Completion and length of service ranking for benefit if different from his
period of continuous employment referred to in paragraph (b).

	 	 	“PAYE System” means the system operated pursuant to part II of the Income Tax
(Earnings and Pensions) Act 2003 (Assessment, collection, recovery and appeals) and any
regulations made pursuant to that part of the Income Tax (Earnings and Pensions) Act
2003 and any other system applicable outside the United Kingdom for the assessment,
charge, collection or recovery of Tax in respect of Employment Income, and the like
payable to or receivable by directors and employees (or other persons treated as
receiving Employment Income) including, without limitation, the keeping of records and
the making of returns thereunder.
	 
	 	 	“Plant” means the fixed plant and machinery located at the Property including,
without limitation, all Sortation Equipment and those items of plant listed in Schedule
6, Part 2 (Plant ).
	 
	 	 	“Pre-existing Claims” means any claim or proceedings by any Employees at
Completion.
	 
	 	 	“Property” means the property shortly described in Schedule 2, (Particulars of the
Property ) and all fixtures which are not included in the Movables.
	 
	 	 	“Proprietary Software” means those applications listed in Schedule 8, Part 2
(Proprietary Software ) and any modifications to them in both source code and object
code form and including any materials in the possession or control of the Sellers which
relate to the creation, modification or support of that software.
	 
	 	 	“Registered IPR” means the Business IPR which has been registered or for which
application for registration has been made.
	 
	 	 	“Relief” includes any relief, allowance, credit, debit, charge, expense, exemption,
set-off or deduction in computing, reducing or eliminating Tax or against profits,
income or gains of any description or from any source, or credit against or repayment or
right to repayment of Tax.
	 
	 	 	“Replacement Service Provider” means any person involved in providing services to
the Buyer or any member of the Buyer’s Group in connection with the IT services employed
in the Business.
	 
	 	 	“Retained Amount” has the meaning given in Clause 6.8.
	 
	 	 	“Retained Business Records” means all accounting and taxation records of or
relating to the Business (including the VAT records referred to in Clause 18 (VAT )) and
such of the records of or relating to the Business as relate both to the Business and to
any other activities of the Sellers insofar as it is not possible to 

7

 

	 	 	separate the records relating to the Business from the records relating to such other activities.

	 	 	“Retention” means the amount of £1,500,000.
	 
	 	 	“Retention Account” means the bank account in respect of the Retention referred to
in Clause 6.1(a).
	 
	 	 	“Retention Claim” means all General Claims, Employment Claims and IT Claims.
	 
	 	 	“Retention Release Date” means the First Retention Release Date, the Second
Retention Release Date or the Third Retention Release Date (as the case may be).
	 
	 	 	“Second Retention Release Date” means the date falling six months after Completion.
	 
	 	 	“Sellers” means the UK Seller and the US Seller or either of them.
	 
	 	 	“Sellers’ Accountants” means Grant Thornton of 4 Hardman Square Spinningfields, Manchester, M3 3EB.
	 
	 	 	“Sellers’ Group” means each Seller, the US Seller’s Parent Undertakings and the
Subsidiary Undertakings of the US Seller’s Parent Undertakings.
	 
	 	 	“Seller’s Pension Scheme” means the stakeholder pension scheme with Legal and
General.
	 
	 	 	“Sellers’ Solicitors” means Hammonds LLP of Trinity Court, 16 John Dalton Street,
Manchester M60 8HS.
	 
	 	 	“Settlement Agreement” means the agreement in the Agreed Form relating to the
termination of the Distribution Agreement.
	 
	 	 	“Silver Point Charge” means the fixed and floating security document dated 30 April
2007 created by the UK Seller in favour of Silver Point Finance, LLC and registered at
Companies House on 8 May 2007.
	 
	 	 	“Social Security Legislation” means Social Security Contributions and Benefits Act
1992 and any other enactment relating to social security (including all regulations made
thereunder).
	 
	 	 	“Sortation Equipment” means:

	 	(a)	 	the sortation plant located at the Property supplied and/or maintained
by Knapp Logistic Automation Gmbh and used in the Business, including the sorter
(comprising of one cross belt sorter, four hundred sort destinations, six error
destinations, three sorter induct lines together with all associated equipment as
outlined in schedules 6 and 10 (the “Specification Bundle”)
of the supply and installation agreement dated 1 February 2007 entered into
between Knapp Logistik Automation GmBH and the UK Seller);
	 
	 	(b)	 	the machinery, equipment, hardware and software specified in or
required to comply with the Specification Bundle; and
	 
	 	(c)	 	all spare parts for the equipment referred to in (a) and (b) above
which are either located at the Property or listed in the list at section 5.3 of
Disclosure Bundle.

8

 

	 	 	“Standard Conditions” means the Standard Conditions of Sale (Third Edition).
	 
	 	 	“Tax” or “Taxation” includes all present and future forms of tax, duties, imposts,
contributions, withholdings, deductions, charges, levies and sums payable on account of
the foregoing whatsoever and whenever imposed, charged or demanded by a Tax Authority in
the nature of tax (including without limitation any amount payable as a result of
counteraction, adjustment or set off by a Tax Authority in relation to any liability to
tax, interest on unpaid tax, repayment of tax or interest or repayment supplement in
respect of a repayment of tax), and all amounts recoverable by a Tax Authority as if
they were tax (or by any other person by virtue of any entitlement arising by operation
of law) and shall be deemed to include the cost of removing any charge over assets
imposed by any Tax Authority and in each case all charges, interest, fines, penalties
and surcharges arising from or incidental, or relating, to the same.
	 
	 	 	“Tax Authority” means HMRC and any other governmental, state, federal or other
fiscal, revenue, customs or excise authority, department, agency, body or office whether
in the United Kingdom or elsewhere in the world having authority or jurisdiction for any
Tax purpose.
	 
	 	 	“Tesco Stock” means all stock and inventory held at the Property that, immediately
before Completion, is the property of the Buyer’s Group.
	 
	 	 	“Third Retention Release Date” means the date falling 12 months after Completion.
	 
	 	 	“Trading or Competition Laws” means any or all of:

	 	(a)	 	the Trade Descriptions Act 1968;
	 
	 	(b)	 	the Consumer Protection Act 1987;
	 
	 	(c)	 	the Consumer Credit Act 1974;
	 
	 	(d)	 	the Fair Trading Act 1973;
	 
	 	(e)	 	the Enterprise Act 2002;
	 
	 	(f)	 	the Restrictive Trade Practices Acts 1976 and 1977;
	 
	 	(g)	 	the Competition Act 1988; and
	 
	 	(h)	 	Article 81 or 82 of the EC Treaty.

	 	 	“Transitional Services Agreement” means the agreement dated on or around the same
date as this Agreement in the Agreed Form setting out the scope
and basis of the transitional arrangements in respect of matters such as back office
functions necessary to support the Business and the Sellers’ retained business and
ensure continuity for the Business so far as the Buyer is concerned.
	 
	 	 	“TSA Escrow Account” means the bank account established by the Buyer’s Solicitor in
respect of the TSA Escrow Amount.
	 
	 	 	“TSA Escrow Amount” means the amount of $714,276.44.
	 
	 	 	“UK Assets” means all of the Assets other than the US Assets.

9

 

	 	 	“US Charges” means all security interests and liens of any nature whatsoever in
favour of Silver Point Finance, LLC including without limitation, any security interests
and liens created pursuant to a Credit and Guaranty Agreement, dated as of April 30,
2007 (as amended, restated, supplemented or modified from time to time) and made
between, inter alia, the US Seller and Silver Point Finance, LLC (as agent).
	 
	 	 	“UK GAAP” means generally accepted accounting principles and practices applicable
in the United Kingdom to companies which are not required or have not elected to prepare
their accounts in accordance with IFRS.
	 
	 	 	“UK Listing Authority” means the Financial Services Authority acting in its
capacity as the competent authority for listing pursuant to part VI of the Financial
Services and Markets Act 2000.
	 
	 	 	“US Assets” means the assets listed in Schedule 6, Part 3 (US Assets ).
	 
	 	 	“US Employees” means those persons employed by the US Seller in the Business as at
Completion who are listed in Schedule 3, Part 2 (US Employees ).
	 
	 	 	“VAT” means value added tax.
	 
	 	 	“VATA” means the Value Added Tax Act 1994.
	 
	 	 	“VAT Regulations” means the Value Added Tax Regulations 1995 (SI 1995/2518).
	 
	 	 	“Warranties” means the warranties of the Sellers contained in Schedule 10
(Warranties ) and Schedule 11 (Taxation Warranties ).
	 
	 	 	“2001 Stock Option Plan” means the 2001 Stock Option and Incentive Plan of the US
Seller dated 13 June 2001.
	 
	 	 	“2004 Stock Plan” means the Stock Plan of the US Seller adopted on 16 July 2004.

	1.2	 	A reference to a statutory provision includes a reference to:

	 	(a)	 	a statutory amendment, consolidation or re-enactment made before the
date of this Agreement) except to the extent that the amendment, consolidation or
re-enactment coming into force after the date of this Agreement would increase or
extend the liability of one party to this Agreement to another party;
	 
	 	(b)	 	statutory instruments or subordinate legislation (as defined in section
21(1), of the Interpretation Act 1978) or orders made under the statutory provision
before the date of the Agreement; and
	 
	 	(c)	 	statutory provisions of which the statutory provision is an amendment,
consolidation or re-enactment,
	 
	 	but does not include a substituted provision.

	1.3	 	References to a statutory provision or to a legal or accounting principle applying under
English law shall, where the context requires, be treated as including references to the
nearest corresponding provision or principle in the local jurisdiction and references to a
governmental, local governmental or 

10

 

	 	 	administrative authority or agency in the United Kingdom
shall be treated as including references to the nearest equivalent governmental, local
governmental or administrative authority or agency in that jurisdiction.

	1.4	 	Reference to:

	 	(a)	 	a person includes a legal or natural person, partnership, trust,
company, government or local authority department or other body (whether corporate
or unincorporated);
	 
	 	(b)	 	a statutory or regulatory body shall include its successors and any
substituted body;
	 
	 	(c)	 	an individual includes, where appropriate, his personal
representatives;
	 
	 	(d)	 	the singular includes the plural and vice versa; and
	 
	 	(e)	 	one gender includes all genders.

	1.5	 	Unless otherwise stated, a reference to a Clause or Schedule is a reference to a Clause of or
Schedule to, this Agreement and a reference to this Agreement includes its Schedules.
	 
	1.6	 	Clause headings in this Agreement and in the Schedules are for ease of reference only and do
not affect its construction.
	 
	1.7	 	In construing this Agreement the so-called ejusdem generis rule does not apply and
accordingly the interpretation of general words shall not be restricted by words indicating a
particular class or particular examples.
	 
	1.8	 	Use of the words “includes” or “including” or any similar expression shall not imply any
limitation.
	 
	2	 	SALE OF BUSINESS AND ASSETS INCLUDING THE PROPERTY
	 
	2.1	 	The UK Seller agrees to sell with full title guarantee free from any Encumbrances and the
Buyer agrees to purchase as at Completion the Business as a going concern and the UK Assets
(except the Property which is sold on the terms of Clause 2.2) with all attached or accrued
rights as at Completion, provided that:

	 	(a)	 	the Non-Direct Stock shall be sold subject to any title transfer and
retention arrangements relating to its purchase; and
	 
	 	(b)	 	the Business Contracts to which the UK Seller is party shall be
transferred in accordance with the provisions of Clause 7 (Business Contracts ).

	2.2	 	The Sellers agree to sell with full title guarantee to the Buyer or its nominee and the Buyer
or its nominee agrees to buy the Property as at Completion in accordance with the Standard
Conditions as varied by the terms of this agreement. The Buyer agrees that any such nominee
shall be bound by the terms applicable to the Buyer in respect of the Property, and shall
procure that such nominee will sign such acknowledgements as the Buyer deems reasonably
necessary to give effect to this Clause 2.2.
	 
	2.3	 	The US Seller agrees to sell with full title guarantee free from any Encumbrances and the
Buyer agrees to purchase as at Completion the US Assets with all attached rights as at
Completion, except that:

11

 

	 	(a)	 	the Business Contracts to which the US Seller is party shall be
transferred in accordance with the provisions of Clause 7 (Business Contracts );
	 
	 	(b)	 	the Licensed Software Materials comprised in the US Assets shall be
sold subject to the rights of the respective licensors contained in the relevant
Business Contracts set out in Schedule 8 (Software ); and
	 
	 	(c)	 	the US Seller shall procure the transfer of the Channel of Choice trade
mark from Handleman Category Management Company, a subsidiary of the US Seller.

	2.4	 	The Assets shall comprise the following assets:

	 	(a)	 	the Movables;
	 
	 	(b)	 	the Property;
	 
	 	(c)	 	the Non-Direct Stock;
	 
	 	(d)	 	the Motor Vehicles;
	 
	 	(e)	 	the Plant;
	 
	 	(f)	 	the benefit of the Business Contracts;
	 
	 	(g)	 	the Leased Assets subject to and with the benefit of the relevant
Business Contracts listed in Schedule 7 (The Leased Assets );
	 
	 	(h)	 	the Business Records;
	 
	 	(i)	 	the Business IPR owned by the Sellers (including the Channel of Choice
trade mark owned by Handleman Category Management Company), save to the extent that
that Business IPR is owned by virtue of an Excluded Business Contract;
	 
	 	(j)	 	the Proprietary Software and the Licensed Software Materials subject to
and with the benefit of the relevant Business Contracts listed in Schedule 8
(Software );
	 
	 	(k)	 	the Goodwill;
	 
	 	(l)	 	the assets listed in Schedule 13 (Fixed Assets Register); and
	 
	 	(m)	 	all other property, assets and rights belonging to the Sellers of
whatsoever nature located at the Property and Tesco Stores Limited’s premises at
Welwyn Garden City and (subject to Clause 19.4), all other property (other than
real property), assets and rights belonging to the UK Seller of whatsoever nature
used principally or exclusively in or principally or exclusively for the purposes
of or arising principally or exclusively in respect of the Business and not
specified above but excluding the Excluded Assets.

	2.5	 	Risk in the Assets shall pass to the Buyer on Completion and title shall pass on Completion
in accordance with Clause 5.1 save as otherwise provided in this Agreement. As regards any of
the Assets title to which is capable of passing by delivery, title to such Assets shall pass
by delivery in accordance with Clause 5.1. Save as otherwise specifically set out in this
Agreement, the Sellers hereby assign, 

12

 

	 	 	subject to and with effect from Completion, title to
each of the Assets that are not capable of transfer by delivery.

	2.6	 	If any materials (including promotional material bearing any name or mark of either Seller or
any other person) are sold to the Buyer under this Agreement or the Settlement Agreement the
Buyer is authorised by each Seller to sell or otherwise dispose of such materials or to use
those materials until they are exhausted.

	3	 	EXCLUDED ASSETS
	 
	 	 	There shall be expressly excluded and excepted from the sale and purchase of the
Business and nothing in this Agreement shall operate to transfer:

	 	(a)	 	the Debts;
	 
	 	(b)	 	the Excluded Business Contracts;
	 
	 	(c)	 	the Excluded Business IPR;
	 
	 	(d)	 	any amount recoverable in respect of Tax which relates to the carrying
on of the Business prior to Completion;
	 
	 	(e)	 	any interest whatsoever in the UK Seller’s premises at Warrington;
	 
	 	(f)	 	all assets of the US Seller other than the US Assets;
	 
	 	(g)	 	all assets used on a day-to-day basis exclusively by the
Non-Transferring Employees;
	 
	 	(h)	 	all other assets of any other member of the Seller’s Group other than
the UK Seller and the US Seller; and
	 
	 	(i)	 	any assets of either Seller other than the UK Assets and the US Assets.

	4	 	CONSIDERATION
	 
	4.1	 	The consideration payable for the Business and the Assets shall, subject to adjustment in
accordance with the provisions of Clause 9 (Apportionments ), be the sum of £9,235,588, being
£9,400,000 as adjusted to take account of the Anticipated Apportionments and the Agreed
Adjustments, which shall be paid or satisfied:

	 	(a)	 	as to the sum of £7,735,588 in cash at Completion; and
	 
	 	(b)	 	as to the sum of £1,500,000, by payment of the Retention into the
Retention Account.

	4.2	 	The Consideration shall be apportioned in the manner listed in Schedule 1, Part 3
(Apportionment of Consideration ) save that any adjustment to the Consideration resulting from
the operation of Clause 9 (Apportionments ) shall be attributed to the Assets in respect of
which such adjustment is made (or as the Sellers and the Buyer shall otherwise agree).
	 
	4.3	 	Notwithstanding that the Consideration is apportioned between the Business and the Assets as
provided by Schedule 1 (Business, Excluded Business and Consideration ), it is nevertheless
agreed between the Sellers and the Buyer that 

13

 

	 	 	the Consideration is a single price and that, in
the event of there being any breach of the Warranties, the compensation payable to the Buyer
shall not be limited on account of the value attributed to any individual Asset.

	4.4	 	The Consideration shall be exclusive of any VAT, or any other applicable sales or transfer
tax which will be payable (where applicable) in respect of each sum at the same time that such
sum falls due for payment upon production of a valid VAT invoice (or other sales or transfer
tax document).
	 
	5	 	COMPLETION
	 
	5.1	 	Completion shall take place at the offices of the Buyer’s Solicitors at which point the
Sellers shall deliver or procure the delivery (or procure that such will be available at the
Property or other relevant location) to the Buyer or if it so requests the Buyer’s Solicitors
of the following:

	 	(a)	 	the Disclosure Letter;
	 
	 	(b)	 	the TR1 in the Agreed Form and all documents of title to the Property;
	 
	 	(c)	 	the Settlement Agreement;
	 
	 	(d)	 	the deed of assignment of the Collateral Warranties in the Agreed Form
duly executed as a deed by the UK Seller;
	 
	 	(e)	 	releases in respect of the UK Assets in the Agreed Form from the Silver
Point Charge, from the GEC Charge and a release in respect of the US Assets in the
Agreed Form from the US Charges;
	 
	 	(f)	 	certificates of non-crystallisation of floating charges or releases of
any other charges over any of the Assets;
	 
	 	(g)	 	deeds of assignment of the Registered IPR in the Agreed Form;
	 
	 	(h)	 	each of:

	 	(i)	 	duly executed transfers of registration documents
(Forms V5) for the Motor Vehicles together with all current test
certificates and road fund licences;
	 
	 	(ii)	 	the Business Records;
	 
	 	(iii)	 	its records of National Insurance and PAYE relating to
all the Employees duly completed up to the last salary payment day prior to
Completion; and
	 
	 	(iv)	 	all other property agreed to be sold pursuant to this
Agreement which is capable of transfer by delivery:

	 	 	 	and insofar as the Buyer agrees that it is not practical for such assets to be
physically delivered at Completion they shall be made available for collection
by or on behalf of the Buyer and such assets shall be deemed to be delivered
and each Seller shall do such other things as the Buyer may reasonably require
to enable the Buyer to take possession or control of them; and

14

 

	 	(i)	 	a notice in relation to HMRC’s optional practice under VAT Notice
700/9/02 in the Agreed Form.

	5.2	 	At Completion, the US Seller shall pay by means of electronic funds transfer to the TSA
Escrow Account the sum of $714,276.44 (being the amount to be paid into the TSA Escrow
Account).

	5.3	 	Upon completion of the matters referred to in Clause 5.1, the Buyer shall:

	 	(a)	 	pay by means of electronic funds transfer to the account of the
Sellers’ Solicitors with Royal Bank of Scotland, 38 Mosely Street, Manchester, Sort
Code 16-00-01, and account number 12680829 or as the Sellers may otherwise direct
the sum of £7,735,588;
	 
	 	(b)	 	pay by means of electronic funds transfer to the Retention Account the
sum of £1,500,000 (being the amount to be paid into the Retention Account).

	5.4	 	The Buyer shall not be obliged to complete the purchase of any of the Assets or the Property
unless the purchase of all the Assets and the Property is completed in accordance with this
Agreement.
	 
	5.5	 	Subject to Clause 7 (Business Contracts ), if certain Assets are not delivered or transferred
to the Buyer on Completion due to the absence of any required licence or consent from a third
party such Assets shall be held by the relevant Seller on trust for the Buyer absolutely as
from Completion and shall be delivered or transferred to the Buyer as soon as the requisite
licence or consent is obtained (which for the avoidance of doubt shall not include any
requirement on either of the Sellers to pay any fee to a third party to obtain such licence or
consent). The parties will use all reasonable endeavours to ensure that any such licence or
consent is granted as soon as possible after Completion. Pending the delivery or transfer of
any such Assets to the Buyer the relevant Seller shall take all reasonable steps at the
Buyer’s cost to preserve the same and to preserve and enforce its rights relating to any of
such Assets as the Buyer shall reasonably require and the relevant Seller shall promptly
deliver to the Buyer any communication received by it concerning any of such Assets.
	 
	6	 	RETENTIONS AND RETENTION ACCOUNTS
	 
	6.1	 	The Buyer and the Sellers have, as applicable and in each case before Completion, instructed
as follows:

	 	(a)	 	Buyer’s Solicitors and Sellers Solicitors to establish a UK Sterling
joint account in the names of the Sellers’ Solicitors and the Buyer’s Solicitors at
Barclays Bank PLC, 50 Pall Mall East, London SW1Y 1QA, sort code 20-65-82, account
number 73268640 on terms that no instruction may be accepted by the bank in
relation to the account except on the joint written instructions of the Sellers’
Solicitors and the Buyer’s Solicitors;
	 
	 	(b)	 	Buyer’s Solicitors to establish a US dollar account with Barclays Bank
PLC, 50 Pall Mall East, London SW1Y 1QA, Sort Code 20-65-82 to be operated by the
Escrow Agent on terms that no instruction may be accepted by the Escrow Agent
except in accordance with the terms of the Escrow Agreement;
	 
	 	(c)	 	Buyer’s Solicitors to transfer the funds paid in accordance with Clause
5.3(b) to the Retention Account as soon as practicable;

15

 

	 	(d)	 	Buyer’s Solicitors to transfer the funds paid in accordance with Clause
5.2 to the TSA Escrow Account as soon as practicable; and
	 
	 	(e)	 	Buyer’s Solicitors and Sellers Solicitors to procure compliance with
the remaining provisions of this Clause 6 (Retentions and Retention Account ).

	6.2	 	Subject to the following provisions of this Clause 6 (Retentions and Retention Account ), the
Sellers’ Solicitors and the Buyer’s Solicitors shall, on the relevant Retention Release Date,
pay to the Sellers (jointly) the relevant portion of the money held in the Retention Account
(less accrued unpaid bank charges and any amount retained in accordance with this Clause 6
(Retentions and Retention Account )) in accordance with the following table:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Maximum amount of	 	Maximum amount of	 	Maximum amount of
	 	 	General Retention	 	Employment Retention	 	IT Retention to be
	Date	 	to be released	 	to be released	 	released
	First Retention
Release Date
	 	£	175,000	 	 	£	100,000	 	 	£	400,000	 
	Second Retention
Release Date
	 	£	175,000	 	 	£	250,000	 	 	 	0	 
	Third Retention
Release Date
	 	 	N/A	 	 	 	N/A	 	 	£	400,000	 

	6.3	 	Subject to Clause 6.4, Clause 6.5 and Clause 6.6, if before the relevant Retention Release
Date the Buyer makes a claim under this Agreement or the Transitional Services Agreement which
has not been satisfied by that date, and which is not an Employment Claim or an IT Claim, any
such claim shall be deemed a General Claim and the Sellers’ Solicitors and the Buyer’s
Solicitors shall on the relevant Retention Release Date release from the Retention Account the
lesser of:

	 	(a)	 	an amount equal to that part of the General Retention that is due to be
released on the relevant Retention Release Date ; and
	 
	 	(b)	 	an amount equal to the General Retention that is due to be released on
the relevant Retention Release Date plus, where applicable, any amount withheld on
the previous Retention Release Date less the Retained
Amount (as defined below) in respect of all General Claims then outstanding.

	6.4	 	If before the relevant Retention Release Date the Buyer makes a claim under Clause 12.3,
Clause 12.5 or Clause 13.7(a)(ii) or in respect of a breach of any of the Warranties at
Schedule 10 (Warranties ) paragraph 27 (Employees and terms of employment ) to paragraph 33
(Share option schemes, etc ) of this Agreement or under Clause 14 (Guarantee ) of this
Agreement to the extent that such claims relates to one of these other Clauses or paragraphs,
which has not been satisfied by that date, any such claim shall be deemed an Employment Claim
and the Sellers’ Solicitors and the Buyer’s Solicitors shall on the relevant Retention Release
Date release from the Retention Account the lesser of:

	 	(a)	 	an amount equal to that part of the Employment Retention that is due to
be released on the relevant Retention Release Date; and

16

 

	 	(b)	 	an amount equal to the Employment Retention that is due to be released
on the relevant Retention Release Date, plus where applicable, any amount withheld
on the previous Retention Release Date less the Retained Amount (as defined below)
in respect of all Employment Claims then outstanding.

	6.5	 	If before the relevant Retention Release Date the Buyer makes a claim under Clause 13.7(a)(i)
of this Agreement or Schedule 10 (Warranties ), paragraph 26 (Information Technology ) (or
under Clause 14 (Guarantee ) of this Agreement to the extent that such claim relates to Clause
13.7(a)(i) or Schedule 10 (Warranties ), paragraph 26 (Information Technology ) which has not
been satisfied by that date, any such claim shall be deemed an IT Claim and the Sellers’
Solicitors and the Buyer’s Solicitors shall on the relevant Retention Release Date release
from the Retention Account the lesser of:

	 	(a)	 	an amount equal to that part of the IT Retention that is due to be
released on the relevant Retention Release Date; and
	 
	 	(b)	 	an amount equal to the IT Retention that is due to be released on the
relevant Retention Release Date, plus where applicable, any amount withheld on the
previous Retention Release Date less the Retained Amount (as defined below) in
respect of all IT Claims then outstanding.

	6.6	 	For the avoidance of doubt, no part of the Retention that is not (as at the relevant
Retention Release Date) due for release or which is otherwise subject to a Retention Claim
that is then outstanding shall be released before the relevant Retention Release Date.
	 
	6.7	 	Without prejudice to the Buyer’s right to bring a claim under any provision of this
Agreement, no amount of the General Retention shall be withheld in relation to any matter or
circumstance pursuant to which an amount is being held against the Employment Retention or the
IT Retention.
	 
	6.8	 	If requested in writing by the Sellers, the Buyer and the Sellers shall, in accordance with
Clauses 6.9 to 6.12 below obtain an opinion from an Independent Legal Expert stating whether,
on a balance of probabilities, any Retention Claim(s) is/are more likely to be successful than
not successful (“Opinion”).
	 
	6.9	 	The Buyer and the UK Seller shall each, within:
	 
	6.9.1	 	14 days of the appointment of an Independent Legal Expert, provide the Independent Legal
Expert and the other party with their written submissions and any evidence regarding the
Retention Claim (“Written Submissions”).
	 
	6.9.2	 	7 days of receipt of the other party’s Written Submissions provide the Independent Legal
Expert and the other party with their response to the other party’s Written Submissions and
any further evidence regarding the Retention Claim (“Responses to Written Submissions”).

17

 

	6.10	 	Each of the Buyer and the UK Seller shall respond promptly to and comply with (at their own
expense) all reasonable requests for information and other assistance that the Independent
Legal Expert makes in connection with the Retention Claim. There will be no formal hearing.
	 
	6.11	 	The parties shall request that the Independent Legal Expert use his reasonable endeavours to
provide a copy of the Opinion to each Party within 14 days of receiving the Responses to
Written Submissions.
	 
	6.12	 	The costs of the Independent Legal Expert shall be shared equally between the Buyer and the
Sellers.
	 
	6.13	 	The Independent Legal Expert shall act as an expert and not as an arbitrator, and the
Independent Legal Expert’s opinion shall, in the absence of manifest error or fraud, be final
and binding on the parties in relation to the Retention Account but shall not affect the
parties’ ability to argue the substantive dispute for the purpose of the Final Determination.
	 
	6.14	 	The “Retained Amount” shall be the aggregate of:

	 	(a)	 	the amount recommended or certified by the Independent Legal Expert as
being the aggregate of all sums claimed in respect of Retention Claims where, in
the Independent Legal Expert’s opinion on the balance of probabilities such
Retention Claim(s) is/are more likely to be successful than not successful;
	 
	 	(b)	 	all sums claimed in respect of any Retention Claims which have been
referred to a Independent Legal Expert pursuant to Clause 6.8 and an Opinion has
yet to be delivered to the parties in accordance with Clause 6.11 (provided that
once an Opinion is delivered, if the Independent Legal Expert’s opinion is that on
the balance of probabilities such Retention Claim(s) is/are more likely to be
unsuccessful than successful, the relevant sum will be released to the Sellers
unless the Buyer brings a new claim in which case the sums claimed may be withheld
in respect of such new claim); and
	 
	 	(c)	 	all sums claimed in respect of Retention Claims where the Sellers have
not requested the Buyer to obtain an Opinion.

	6.15	 	Following the Relevant Release Date, to the extent that the Buyer does not pursue a Retention
Claim, for any reason whatsoever, in respect of which any sums have been retained in the
Retention Account, such sums less the amount of any new Retention Claims shall be released
immediately to the Sellers.
	 
	6.16	 	The Retained Amount shall be applied (together with accrued interest and provided that bank
charges shall be paid from funds in the Retention Account) in or towards settlement of
Retention Claims upon a liability of either Seller being Finally Determined. The Sellers’
Solicitors and the Buyer’s Solicitors shall otherwise continue to hold the amount or the
remaining amount in the Retention Account pending settlement or resolution of all outstanding
Retention Claims. Within ten Business Days all Retention Claims which are outstanding at or
after the relevant Retention Release Date having been Finally Determined, the Sellers’
Solicitors and the Buyer’s Solicitors shall pay:

	 	(a)	 	to the Buyer: the outstanding amount payable to the Buyer in respect of
Retention Claims out of the Retention Account (insofar as there is

18

 

	 	 	 	sufficient standing to the credit of the Retention Account, after deducting
accrued unpaid bank charges); and
	 
	 	(b)	 	to the Sellers (jointly): any amount left standing to the credit of the
Retention Account (after payment of bank charges).

	6.17	 	The payment of an amount to the Buyer in accordance with Clause 6.16(a) in or towards
satisfaction of a Retention Claim shall not prejudice the other rights and remedies of the
Buyer for the purpose of recovering amounts due from either Seller and not satisfied by
payments made out of the Retention Account.
	 
	6.18	 	A payment out of the Retention Account to the Sellers may be made to the Sellers’ Solicitors,
and to the Buyer may be paid to the Buyer’s Solicitors.
	 
	6.19	 	Interest shall follow principal on all sums paid out of the Retention Account to the Buyer or
the Sellers.
	 
	7	 	BUSINESS CONTRACTS
	 
	7.1	 	Subject to Clause 7.2 with effect from Completion:

	 	(a)	 	the Buyer shall carry out and perform for its own account all of the
Sellers’ obligations under each of the Business Contracts arising or in respect of
the period after Completion in accordance with the terms of the Business Contract;
	 
	 	(b)	 	the Sellers shall indemnify and keep indemnified the Buyer from and
against all Losses suffered or incurred by the Buyer under any of the Business
Contracts which arise or are in respect of any period on or before Completion; and
	 
	 	(c)	 	the Buyer shall indemnify and keep indemnified the Seller from and
against all Losses suffered or incurred by the Sellers under any of the Business
Contracts which arises as a result of the Buyer’s acts or omissions in respect of
any period after Completion.

	7.2	 	Insofar as the benefit of any of the Business Contracts cannot be assigned to the Buyer
except with the consent of one or more third parties or by novation the following provisions
shall apply:

	 	(a)	 	nothing contained in this Agreement shall constitute an assignment or
an attempted assignment of such Business Contract if the assignment or attempted
assignment would constitute a breach of the Business Contract;
	 
	 	(b)	 	the parties shall use all reasonable endeavours to obtain such consent
or novation as aforesaid and the Sellers shall notify the Buyer as soon as any such
consent or novation is obtained or refused or is the subject of any other
communication from the relevant third party;
	 
	 	(c)	 	unless and until any such Business Contract shall be assigned or
novated the Sellers will hold the benefit on trust for the Buyer and will give all
reasonable assistance (at the Buyer’s expense) after Completion to the Buyer to
enable the Buyer to enforce the rights of the relevant Seller under such Business
Contract and the Buyer shall (subject to Clause 7.2(e), perform the obligations of
the relevant Seller under such Business Contract;

19

 

	 	(d)	 	if any requisite consent is refused or not obtained by 1 November 2008
(or such longer period as the parties may agree in writing) after Completion then
in any case where the provisions of this Clause 7 (Business Contracts ) do not
enable the full benefit of a Business Contract to be enjoyed by the Buyer after
Completion, the Sellers and the Buyer shall consult and shall use all reasonable
endeavours to achieve an alternative solution under which the Buyer shall both
receive the full benefit of that Business Contract and assume the associated
obligations or to procure that the Business Contract is terminated without any
liability to either of them, pending which the parties shall comply with their
obligations under Clause 7.2(c); and
	 
	 	(e)	 	nothing in this Agreement shall:

	 	(i)	 	require the Buyer to perform any obligations or
discharge any liabilities created by or arising under any Business
Contracts insofar as such obligations or liabilities fell due to be
performed or related to a period before Completion;
	 
	 	(ii)	 	make the Buyer liable for any act, neglect, default or
omission in respect of any Business Contracts committed by either Seller or
occurring before Completion; or
	 
	 	(iii)	 	subject to Clause 7.4, make any party liable for any
claim, expense, loss or damage arising from any failure to obtain any third
party consent to this Agreement or from any breach of any Business Contract
caused by the execution, completion or performance of this Agreement
provided, in the case of a Seller, such Seller has complied with its
obligations in relation to the Business Contracts under this Agreement.

	7.3	 	Following Completion the Buyer may give notice to a Seller at any time after any relevant
third party consent or agreement to novate is obtained requiring that Seller to execute an
assignment or a novation (in terms reasonably required by the Buyer) of a Business Contract to
or in favour of the Buyer, and the relevant Seller will arrange for the execution of such
assignment or novation and its delivery to the Buyer not later than five Business Days after
the receipt either of such notice or of the engrossment of such assignment or novation by the
relevant Seller (or the Sellers’ Solicitors) whichever is the later.
	 
	7.4	 	The Sellers shall indemnify the Buyer against all losses, costs, expenses suffered or
incurred by the Buyer by reason of any claim for breach of contract made by any counterparty
to a Business Contract by reason of the fact that it is held on trust for the Buyer as
contemplated under Clause 7.2(c).
	 
	7.5	 	The Buyer shall be responsible for paying any fees payable to a counterparty under a Business
Contract to that counterparty in return for or as part of the arrangements in respect of its
consent or performance in assigning or novating a Business Contract to the Buyer.
	 
	8	 	LIABILITIES
	 
	8.1	 	Except as otherwise provided, the Buyer undertakes to each Seller that it will duly and
properly perform, assume and pay and discharge when due all Assumed Liabilities.

20

 

	8.2	 	In this Agreement, “Assumed Liabilities” means, subject to Clause 7.2(e), all obligations and
liabilities of each Seller under the Business Contracts arising after Completion and all other
obligations expressly assumed by the Buyer under this Agreement or in any agreement entered
into pursuant to this Agreement or obligations transferred to the Buyer pursuant to the
Employment Regulations but shall in any event exclude the following liabilities (“Excluded
Liabilities”):

	 	(a)	 	any liabilities of either Seller incurred otherwise than in relation to
the Business or the Assets;
	 
	 	(b)	 	any liabilities incurred in relation to any of the Excluded Assets or
the Non-Transferring Employees;
	 
	 	(c)	 	any liabilities or obligations expressly stated in this Agreement to be
borne by either Seller or in respect of which either Seller has agreed to indemnify
the Buyer whether under this Agreement or otherwise;
	 
	 	(d)	 	tax of any kind in respect of any income, profits or gains of either
Seller or for which either Seller is liable; and
	 
	 	(e)	 	without prejudice to the generality of the foregoing, any other
liabilities or obligations incurred in connection with the Business arising before
or referable to the period prior to Completion.

	8.3	 	Nothing in this Agreement shall be construed as an acceptance or assumption by the Buyer of
any liability or obligation which is not expressly assumed by the Buyer under this Agreement
or under the Employment Regulations.
	 
	8.4	 	The Sellers undertake to the Buyer to indemnify the Buyer on an after tax basis and keep it
fully indemnified from and against the Excluded Liabilities and against all costs, claims,
actions, proceedings, losses, damages and expenses in respect thereof.
	 
	8.5	 	The Buyer undertakes to each Seller to indemnify it on an after tax basis and keep it fully
indemnified from and against the Assumed Liabilities and against all costs, claims, actions,
proceedings, losses, damages and expenses in respect thereof.
	 
	9	 	APPORTIONMENTS
	 
	9.1	 	The Buyer and the Seller have agreed that the Consideration as adjusted to take account of
the Anticipated Apportionments shall be further adjusted (if necessary) on the basis set out
in this Clause 9 (Apportionments ).
	 
	9.2	 	All periodical payments, outgoings, and liabilities (excluding the Assumed Liabilities and
the Excluded Liabilities) exclusively in relation to suppliers to the Business and amounts due
to Employees, including but not limited to royalties, payments under rental agreements,
salaries, wages, national insurance, pension contributions and all other payments to or in
respect of the Employees (“Outgoings”) and all periodical receivables in relation to the
Business and the Assets (“Receivables”) shall be apportioned on a time basis so that such part
of the Outgoings and Receivables as is attributable to the period prior to Completion shall be
borne by or belong to the Sellers and such part of the Outgoings and Receivables as is
attributable to the period commencing after Completion shall be borne by or belong to the
Buyer provided that:

	 	(a)	 	save for amounts arising in the four Business Days prior to Completion,
no sums due from either the Buyer to the UK Seller or vice versa under the

21

 

	 	 	 	Distribution Agreement shall be treated as an Outgoing or as a Receivable and
shall instead be dealt with on the terms of the Settlement Agreement. Amounts
arising in respect of the ownership and operation of the Business in the three
Business Days prior to Completion under the Distribution Agreement shall be
treated as an Outgoing or as a Receivable (as appropriate);
	 
	 	(b)	 	no apportionment shall be made in respect of VAT;
	 
	 	(c)	 	no adjustment shall be made to the Agreed Adjustments, which the
parties have agreed and which shall be fixed for the purposes of calculating
apportionments under this Clause 9 (Apportionments ); and
	 
	 	(d)	 	apportionment of accrued Employees’ holiday pay shall be dealt with in
accordance with clause 12.4.

	9.3	 	The Sellers shall prepare a further statement of apportionments substantially in the form set
out in Schedule 15, Part 1 (Anticipated apportionments ) and shall deliver it to the Buyer
within ten Business Days after Completion. If the Buyer disagrees with such statement it
shall notify the relevant Seller within five Business Days of the receipt of such statement.
Any disagreement regarding the statement of apportionments shall be resolved in accordance
with Clause 9.5.
	 
	9.4	 	The net amount of all amounts due from the Buyer to the Sellers or from the Sellers to the
Buyer (as the case may be) under this Clause 9 (Apportionments ) shall be:

	 	(a)	 	the difference (if any) between the amounts calculated and agreed as
being due under this Clause 9 (Apportionments ) and the Anticipated Apportionments;
and
	 
	 	(b)	 	paid by the Buyer to the Sellers or by the Sellers to the Buyer (as the
case may be) promptly (and in any event within five Business Days) following their
determination or agreement in accordance with Clause 9.5.

	9.5	 	The Sellers and the Buyer shall together endeavour to agree the payments required by this
Clause 9 (Apportionments ). If the Sellers and the Buyer are unable to reach agreement within
20 Business Days after Completion, the matter shall be referred to an independent chartered
accountant (the “Accountant”) appointed in the manner provided by Clause 9.6 who shall be
instructed to determine the relevant amounts, providing each Seller and the Buyer for this
purpose with all relevant working papers or copies. The Accountant shall act as expert and
not as arbitrator and in the absence of manifest error, his decision shall be final. His
costs shall be borne as the Accountant shall determine, or failing such determination equally
by the Sellers (jointly as to 50%) and the Buyer (as to 50%).
	 
	9.6	 	The Accountant shall be appointed by agreement in writing between the Sellers and the Buyer
or, failing agreement, within a further period of ten Business Days by the president for the
time being of the Institute of Chartered Accountants in England and Wales (or any successor
institute) upon an application made by the Sellers (jointly) or the Buyer.
	 
	10	 	DEBTS
	 
	10.1	 	The Buyer shall be under no obligation to collect the Debts (if any) on behalf of either
Seller. To the extent that the Buyer does in fact recover any Debt the

22

 

	 	 	Buyer shall remit the sum in accordance with and subject to the provisions of Clause
10.2 in respect of the same to the Sellers provided that the Buyer shall be entitled,
and for that purpose each Seller hereby authorises the Buyer, to deduct any such
reasonable third party expenses incurred in remitting any such Debt from any Debt
recovered prior to remitting the net amount to the Sellers.
	 
	10.2	 	The Buyer, as agent for each Seller, shall be entitled (at its sole discretion) to apply any
Debts collected by it, to the extent that they are sufficient, in discharge of any Outgoings
which fall to be borne by either Seller under Clause 9 (Apportionments ) and shall account for
any balance of any Debts collected in accordance with Clause 10.1 by cheque to the Sellers at
the end of each month in respect of sums collected up to the end of the previous month. The
Buyer shall at the same time provide the Sellers with particulars of any Outgoings or expenses
which it has deducted out of sums so collected.
	 
	10.3	 	Notwithstanding Clauses 10.1 and 10.2, to the extent that any or all of the uncollected
marketing/ marked down payments, as set out in Part 1 of Schedule 15, remain uncollected by
the Buyer (“Uncollected Amounts”) on the expiry of three months following Completion, the
Buyer shall be entitled to be paid a sum equal to 90% of the Uncollected Amounts immediately
from the General Retention in the Retention Account. For the avoidance of doubt, the
thresholds set out in paragraph 4 of Schedule 12 shall not apply to the Buyer’s claim for
payment under this clause 10.3.
	 
	11	 	LICENCE OF PROPRIETARY SOFTWARE
	 
	11.1	 	The Buyer grants the Sellers, for the period from Completion until 31 October 2008, a
non-exclusive, non-transferable, non-sublicensable, royalty free licence to use the Back End
Software Materials solely for the purpose of bringing the Sellers’ contractual obligations to
its existing customers (as at Completion) to an orderly conclusion.
	 
	11.2	 	At the termination of the licence granted in Clause 11.1, the Sellers shall promptly destroy
all copies of the Back End Software Materials in their possession and a director of the UK
Seller and a director of the US Seller shall certify in writing that this Clause 11.2 has been
complied with.
	 
	11.3	 	The Buyer grants the Sellers, from Completion, a non-exclusive, transferable, royalty free
licence to use, copy, modify, further develop and commercially exploit the Front End Software
Materials.
	 
	11.4	 	The Sellers may:

	 	(a)	 	grant sub-licences of the Front End Software Materials; or
	 
	 	(b)	 	use the Front End Software Materials on behalf of its customers.

	11.5	 	The Sellers may terminate their licence to the Front End Software Materials on 30 days’
notice. The Buyer may not terminate this licence other than following a material breach of
this Clause 11 which is uncured within 14 days following written notice of such breach.
	 
	12	 	EMPLOYEES
	 
	12.1	 	The parties acknowledge and agree that pursuant to the Employment Regulations the contracts
of employment (save to the extent that they relate to rights under occupational pension
schemes excluded by regulation 10 of the Employment

23

 

	 	 	Regulations) between the UK Seller and the Employees will have effect after Completion
as if originally made between the Buyer and the Employees.
	 
	12.2	 	Upon or as soon as practicable after Completion the Sellers and the Buyer shall jointly
communicate to the Employees a notice in the Agreed Form.
	 
	12.3	 	The Sellers undertake to the Buyer (for itself and as trustee for each member of the Buyer’s
Group) to indemnify the Buyer and each member of the Buyer’s Group on an after tax basis
against each and every cost (including reasonable legal costs) claim, liability, expense, or
demand relating to or arising from:

	 	(a)	 	the employment or termination of employment of any person (other than
the Employees, plus an additional two employees who may work at the Property) who
claims that their employment transfers to the Buyer by virtue of the operation of
the Employment Regulations to the transaction contemplated by this Agreement
provided that the Buyer shall not terminate the contract of any such person without
first providing the UK Seller a period of seven days (from the date on which the
Buyer becomes aware that such person has claimed to transfer to the Buyer) within
which to procure or make an offer in writing to employ such person under a new
contract of employment with the UK Seller should it so wish;
	 
	 	(b)	 	the termination of employment of any Employee who transfers pursuant to
the Employment Regulations to the Buyer, but who indicates prior to Completion that
he or she is unwilling to relocate from Warrington to Bolton;
	 
	 	(c)	 	the transfer to the Buyer of any liability in connection with the
termination of employment of any person by the UK Seller up to and including
Completion;
	 
	 	(d)	 	any act or omission by the UK Seller or any employee or agent of the UK
Seller in respect of any Employee up to and including Completion;
	 
	 	(e)	 	any matter concerning or arising from the employment or termination of
employment of any Employee up to and including Completion;
	 
	 	(f)	 	a failure by either Seller to comply with its obligations under
regulations 13 and 14 of the Employment Regulations, including but not limited to
any liability incurred by the Buyer pursuant to regulation 15(9) of the Employment
Regulations (except to the extent that claims arise from a failure by the Buyer to
comply with its obligations under regulation 13(4) of the Employment Regulations).

	12.4	 	The Sellers shall pay to the Buyer:

	 	(a)	 	£20,000 in respect of holiday accrued by the Employees for the period
to 30 April 2008 but not taken as at Completion; and
	 
	 	(b)	 	all amounts in respect of any holiday accrued by the Employees for the
period from 1 May 2008, but not taken as at Completion provided that no payment
shall be due from the Sellers to the Buyer under this Clause 12.4(b) unless (and
then only to the extent that) the aggregate value of such payment is to exceed
£40,000, and payment shall be made at the same time as payments are made in
accordance with Clause 9 (Apportionments ).

24

 

	12.5	 	The US Seller shall be responsible for and shall make all payments due to the US Employees in
respect of any costs or liabilities in connection with the termination of the employment of
any of them and, to the extent that such payments are not made, the US Seller shall indemnify
the Buyer on an after tax basis in relation to all such costs and liabilities in order to
ensure the Buyer is in a financial position to make such payments without any net cost to the
Buyer.
	 
	13	 	WARRANTIES AND INDEMNITIES
	 
	13.1	 	Subject to the provisions of this Clause 13 (Warranties and indemnities ) and Schedule 12
(Seller’s protection provisions ), the Sellers jointly and severally warrant to the Buyer on
the terms of the statements in Schedule 10 (Warranties) and Schedule 11 (Taxation Warranties).
	 
	13.2	 	The Sellers jointly and severally warrant to the Buyer that:

	 	(a)	 	either Seller has the power to enter into and perform this Agreement
which constitutes, or when executed will constitute, binding obligations on it in
accordance with its respective terms; and
	 
	 	(b)	 	either Seller has full power and authority to sell the Assets to the
Buyer on the terms set out in this Agreement and without the consent of a third
party.

	13.3	 	The Buyer warrants to the Sellers that:

	 	(a)	 	it has the power to enter into and perform this Agreement which
constitutes, or when executed will constitute, binding obligations on it in
accordance with its respective terms; and
	 
	 	(b)	 	it has full power and authority to acquire the Business and the Assets
on the terms set out in this Agreement and without the consent of a third party.

	13.4	 	The Warranties are given subject to any matter fairly disclosed in the Disclosure Letter. A
matter shall be regarded as having been fairly disclosed in the Disclosure Letter only to the
extent that accurate information about that matter is contained in the Disclosure Letter in
sufficient detail to enable the Buyer (acting reasonably) to properly identify the nature and
scope of that matter and to evaluate the purpose and effect of the disclosure.
	 
	13.5	 	Each of the Warranties is without prejudice to the other Warranties and, except where
expressly stated otherwise, no Clause governs or limits the extent or application of the other
Clauses.
	 
	13.6	 	None of the information supplied by an Employee or his or her professional advisers to either
Seller, or their representatives or advisers, in connection with the Warranties or the
contents of the Disclosure Letter, or otherwise in connection with this Agreement shall be
deemed a representation to either Seller as to its accuracy and neither Seller shall, without
the Buyer’s prior written consent, make a claim against any Employee or his or her
professional advisers in respect of such information.
	 
	13.7	 	Without prejudice to any other rights of the Buyer, each Seller undertakes to the Buyer (for
itself and as trustee for each member of the Buyer’s Group) to indemnify the Buyer and each
member of the Buyer’s Group on an after tax basis against:

25

 

	 	(a)	 	any costs, claims, losses, actions, proceedings, liabilities or demands
suffered by the Buyer in connection with:

	 	(i)	 	any claim made against the Buyer that use of the
Proprietary Software by the Buyer or any licensee of the Buyer is in breach
of any third party’s Intellectual Property Rights (to the extent that
either Seller is, or ought reasonably to be, aware of such breach);
	 
	 	(ii)	 	accounting for any primary or secondary class 1
national insurance contributions or any tax liability (including PAYE)
which may be incurred by the Buyer or any member of the Buyer’s Group on
exercise by any of the Employees of their share options under the 2001
Stock Option Plan or the 2004 Stock Plan or under any restricted stock
awards or similar arrangements made in respect of the Employees prior to
Completion.; and
	 
	 	(iii)	 	any defect in either Seller’s title to the Assets,
subject always to Clause 2 (Sale of Business and Assets including the
Property ).

	13.8	 	Where any statement refers to the knowledge, belief or awareness of a Seller, or any
analogous expression, it shall be deemed to include an additional statement that it has been
made after full and careful enquiry of James Wilding, Martin McCormick, Amjad Hussain and
Mihir Vakil, and the knowledge, belief and awareness of the Sellers shall be deemed to be the
actual knowledge, belief and awareness of each such person.
	 
	13.9	 	Each Seller irrevocably undertakes to the Buyer and warrants that (to the extent it is within
its powers) it will not and will procure that its respective directors will not complete a
members’ voluntary winding up of the UK Seller pursuant to the Insolvency Act 1986 before the
expiry of 12 months from Completion. For the avoidance of doubt this shall not prevent the
appointment of an administrative receiver, receiver or liquidator to commence such a process.
	 
	14	 	GUARANTEE
	 
	14.1	 	Each Seller guarantees to the Buyer as primary obligor the full and punctual performance by
the other Seller of the obligations of the other Seller under and in respect of the
undertakings, Warranties and indemnities given by the other Seller under this Agreement and
the Transitional Services Agreement.
	 
	14.2	 	Each Seller undertakes with the Buyer that whenever the other Seller does not comply with an
undertaking given by it or is in breach of an obligation under this Agreement or the
Transitional Services Agreement (including having breached any Warranty or indemnity) it
shall:

	 	(a)	 	procure (so far as it is able) the compliance by the UK Seller with
such undertaking;
	 
	 	(b)	 	perform such obligation; or
	 
	 	(c)	 	pay any amount (when due) in connection with any breach of Warranty or
Indemnity or other breach of this Agreement or the Transitional Services Agreement
by the other Seller,

	 	 	in each case at the time when such undertaking or obligation was due to be complied with
or performed or payment was due to be made by the relevant Seller.

26

 

	14.3	 	Each Seller undertakes to indemnify the Buyer immediately on demand against any cost, loss or
liability suffered by the Buyer if any obligation guaranteed by it is or becomes
unenforceable, invalid or illegal. The amount of the cost, loss or liability shall be equal
to the amount which the Buyer would otherwise have been entitled to recover.
	 
	14.4	 	This guarantee is a continuing guarantee regardless of any intermediate payment, waiver,
release or discharge in whole or in part.
	 
	14.5	 	If any payment by the UK Seller is avoided or reduced as a result of insolvency or any
similar event:

	 	(a)	 	the liability of the US Seller shall continue as if the payment,
discharge, avoidance or reduction had not occurred; and
	 
	 	(b)	 	the Buyer shall be entitled to recover the value or amount in respect
of that liability from the US Seller, as if the payment, discharge, avoidance or
reduction had not occurred.

	14.6	 	Each Seller waives any right it may have of first requiring the Buyer to proceed against or
enforce any other rights or claim payment from the other Seller before claiming from that
Seller under this Clause 14 (Guarantee ).
	 
	15	 	ASSIGNMENT AND SUCCESSION
	 
	15.1	 	If the Business is transferred to an Associate of the Buyer, the benefit of the Warranties
may be assigned wholly or partly to the transferee who shall accordingly be entitled to
enforce them against each Seller as if it were named in this Agreement as the Buyer, save that
the benefit of the Warranties shall not be enforceable if the assignee ceases to be an
Associate of the Buyer unless or until (and in each case to the extent that) the assignee
transfers the Business back to an Associate of the Buyer.
	 
	15.2	 	This Agreement binds each party’s successors and permitted assigns and personal
representatives (as the case may be).
	 
	15.3	 	Except as expressly provided above, none of the rights of the parties under this Agreement
may be transferred.
	 
	16	 	POST-COMPLETION PROVISIONS
	 
	16.1	 	To assure to the Buyer the full benefits of the Business and the Goodwill, each Seller
undertakes by way of further consideration for the obligations of the Buyer under this
Agreement, as separate and independent agreements, that it will not without the Buyer’s prior
written consent:

	 	(a)	 	disclose to another person, or itself use for any purpose, information
concerning the Business or the accounts or finances of the Business, or the
transactions or affairs of the Suppliers or customers of the Business, of which it
has knowledge (other than any information which, at the time of disclosure, is in
the public domain or any information which it is compelled by law or by rules of
any regulatory authority or stock exchange to disclose, provided that, where any
such disclosure is required it shall immediately notify the Buyer of this fact and
shall take into account the Buyer’s reasonable requirements as to the timing,
content and manner of making such disclosure); and

27

 

	 	(b)	 	for two years after Completion, in relation to a business which is
substantially the same as or in direct competition with the Business or that part
of the Business which is expected following Completion, to be operated by the
Replacement Service Provider, either on its own account or for another person,
directly or indirectly, specifically solicit or entice away (other than by way of a
bona fide advertisement to the general public) any US Employee who has during the
one year preceding Completion been employed by the Seller in relation to that part
of the Business.

	16.2	 	The Sellers shall de-activate the domain names listed in Schedule 9, Part 2 (Excluded
Business IPR ) from all servers connected to the Property within three months of Completion.
	 
	17	 	ANNOUNCEMENTS
	 
	 	 	Except as required by law, the UK Listing Authority, the US Securities and Exchange
Commission, the London Stock Exchange or the Panel on Takeovers and Mergers, no
announcement or statement shall be made in relation to this Agreement except for the
announcement in the Agreed Form or otherwise as specifically agreed between the parties.
An announcement by any party shall in any event be issued only after reasonable prior
consultation with the other parties.
	 
	18	 	VAT
	 
	18.1	 	The sale of the Business and Assets
	 
	18.1.1	 	The Sellers and the Buyer acknowledge that, in mutual reliance on each other’s warranties in
this Clause 18 (VAT ), the sale and purchase of the Business and Assets will constitute the
transfer of a business (or part of a business) as a going concern (“TOGC”) for the purposes of
article 5 of the Value Added Tax (Special Provisions) Order 1995 (the “Order”).
	 
	18.1.2	 	The UK Seller and the Buyer shall use all reasonable endeavours to ensure that the sale of
the Business and Assets is treated as a TOGC.
	 
	18.2	 	Seller’s obligations
	 
	18.2.1	 	The UK Seller warrants that it is registered for the purposes of VAT under registration
number 534452749 and that neither it, nor any relevant associate, has opted to tax the
Property and the Sellers undertake that neither the Sellers nor any relevant associate shall
exercise the option to tax the Property with effect from any date on or before Completion.
	 
	18.2.2	 	The Buyer and the UK Seller do not intend to make a joint application to HMRC under
Regulation 6(1)(b) of the VAT Regulations 1995 for the Buyer to be registered for VAT under
the UK Seller’s VAT registration number.
	 
	18.2.3	 	The Buyer and the UK Seller acknowledge that section 49(5) VATA applies to the TOGC and that
the UK Seller shall comply with its obligations under that section.
	 
	18.3	 	Buyer’s obligations
	 
	18.3.1	 	The Buyer warrants that:

	 	(a)	 	it is registered for the purposes of VAT under registration number
220430231;

28

 

	 	(b)	 	it is not party to this Agreement as a trustee or nominee or agent for
any other person; and
	 
	 	(c)	 	it (or a relevant associate or relevant group member) intends to use
the Business and Assets after Completion in carrying on the same kind of business
as the UK Seller has carried on before Completion for the purposes of VAT.

	18.4	 	VAT chargeable after Completion
	 
	18.4.1	 	If HMRC determine, in writing after Completion, that the sale and purchase of the Business
and Assets is not to be treated as a TOGC, the UK Seller will following the determination of
HMRC provide the Buyer with a copy of HMRC’s determination and issue a valid VAT invoice to
the Buyer for the price and the VAT chargeable on it and the Buyer will pay such amount of VAT
on the later of:

	 	(a)	 	two Business Days before the date upon which the UK Seller is due to
account for such VAT to HMRC; or
	 
	 	(b)	 	five Business Days after the date on which the UK Seller provides the
Buyer with a valid VAT invoice.

	18.4.2	 	References in this Clause 18 (VAT ) to option to tax and to a person or relevant associate
exercising the option to tax are to be construed in accordance with Schedule 10 VATA.
	 
	18.4.3	 	If a Tax Authority in the United States determines, in writing, after Completion that United
States sales tax should have been applied in respect of the sale of the US Assets by the US
Seller, the US Seller will provide the Buyer with a copy of such determination as soon as
reasonably practicable. The Buyer shall only be liable to pay an amount of US sales tax to
the US Seller at such time and to the extent that the Buyer has recovered or obtained credit
for the sales tax from a Tax Authority in respect of such sales tax.
	 
	19	 	INFORMATION AND FURTHER ASSURANCE
	 
	19.1	 	Except as required by law or any regulatory body, the Sellers and the Buyer shall keep
confidential this Agreement and its terms and conditions and shall not disclose the same to
any third party without the prior written consent of the other party.
	 
	19.2	 	The Sellers shall use all reasonable endeavours to procure that the Buyer, its agents,
representatives, accountants and solicitors are given promptly on request on and after
Completion all such information regarding the Business and the Assets as the Buyer reasonably
requires.
	 
	19.3	 	Each party will at its own expense and following a request by the other:

	 	(a)	 	execute any document and do any thing; and
	 
	 	(b)	 	use reasonable endeavours to procure that a third party executes any
document and does any thing,

	 	 	reasonably necessary to give the relevant party the full benefit of this Agreement and
to perfect the transaction intended to be effected pursuant to this Agreement (save that
this shall not include the payment by either of the Sellers for any fees payable to a
counter party to a Business Contract required by that counter party.

29

 

	19.4	 	If within nine months of Completion the Buyer becomes aware of the existence of any
Non-Transferred Assets, it may give written notice to the Seller of the same identifying, with
such detail as is then available to the Buyer, each Non-Transferred Asset. Promptly following
receipt of such written notice the Sellers shall enter into discussions with the Buyer in good
faith for the transfer of or the making available of each Non-Transferred Asset on such terms
and for a consideration of such sum as the parties may agree.
	 
	19.5	 	Without limiting Clause 19.3, each Seller shall, if so requested by the Buyer, assign to the
Buyer such manufacturers’ guarantees and warranties relating to the Assets as may be in force
at Completion insofar as the same are capable of assignment and including (for the avoidance
of doubt) the Collateral Warranties and the benefit of all other claims against third parties
relating to any of the Assets (including, without limitation, any claim for breach of warranty
or representation and return rights for Non-Direct Stock). To the extent that the same are not
capable of assignment the Sellers shall hold the benefit on trust for the Buyer and shall take
such action as the Buyer may from time to time direct at the expense of the Buyer.
	 
	19.6	 	Each party undertakes to indemnify (and the Buyer undertakes to indemnify in respect of
documents to be entered into by Tesco Stores Limited) the other parties against any loss,
expense or damage which it may suffer as a result of any transaction document to be entered
into and delivered to it pursuant to Clause 5 (Completion ) being unauthorised or for
execution and implementation pursuant to the relevant party’s articles of association or other
constitutional documents;
	 
	19.7	 	The UK Seller shall after Completion retain the Retained Business Records for a minimum of
six years and shall during such period give to the Buyer and its representatives reasonable
facilities to inspect the Retained Business Records and to take copies and extracts so far as
they relate to the Business at all reasonable times and on reasonable advance notice, save
that in the event the UK Seller is to be wound-up and dissolved, the UK Seller shall notify
the Buyer in advance and shall on request and at the Buyer’s expense, provide the Buyer with
copies of the Retained Business Records.
	 
	19.8	 	The Sellers shall procure that all notices, correspondence, information, orders or inquiries
relating to the Business or the Assets (including, without limitation, the Properties) which
are received by either Seller or any member of the Sellers’ Group on or after Completion shall
be immediately passed to the Buyer.
	 
	19.9	 	At any time after Completion and upon reasonable request from time to time the Buyer shall
provide, or procure to be provided, to the Sellers (at the Sellers’ expense), all information
relating to the Business relating to the period up to Completion and which is in its
possession or under its control.
	 
	20	 	RIGHTS AND REMEDIES OF THE BUYER
	 
	20.1	 	The rights and remedies of the Buyer shall not be affected by, and the Warranties shall not
be regarded as being qualified:

	 	(a)	 	save as specifically set out in this agreement, by any investigation
made by or on behalf of the Buyer into the Business or the affairs of either
Seller; or
	 
	 	(b)	 	by any matter within the imputed or constructive (as opposed to actual)
knowledge of the Buyer or of any of its agents or advisers; or

30

 

	 	(c)	 	by virtue of any matter contained or referred to in any draft version
of the Disclosure Letter (to the extent not included in the final Disclosure
Letter).

	20.2	 	The rights and remedies of any party shall not be affected by its failing to exercise, or
delaying in exercising, a right or remedy, or by anything else, except a specific authorised
written waiver or release. A single or partial exercise of a right or remedy provided by this
Agreement or by law does not prevent its further exercise or the exercise of another right or
remedy.
	 
	21	 	WAIVER
	 
	 	 	Waiver by any party of a breach of a term of this Agreement, or of a default under it,
does not constitute a waiver of another breach or default nor affect the other terms of
this Agreement.
	 
	22	 	NO MERGER
	 
	 	 	The obligations contained in or implied by this Agreement which have not been performed
at or prior to Completion and the warranties, representations and indemnities contained
in it and any rights or remedies available pursuant to it shall remain in full force and
effect notwithstanding, and shall not be affected by, Completion.
	 
	23	 	CUMULATIVE RIGHTS
	 
	 	 	The rights and remedies provided in this Agreement are cumulative and not exclusive of
any other rights or remedies.
	 
	24	 	CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999
	 
	24.1	 	Each of Tesco Stores Limited and the Buyer shall be entitled to enforce any provision of this
Agreement that grants or purports to grant a right in favour of the Buyer. Either Seller
shall be entitled to enforce any provision of this Agreement that grants or purports to grant
a right in favour of the other Seller. In all other cases, unless the right of enforcement is
expressly granted, it is not intended that a third party should have the right to enforce a
provision of this Agreement pursuant to the Contracts (Rights of Third Parties) Act 1999.
	 
	24.2	 	The parties may rescind or vary this Agreement without the consent of a third party
(including Tesco Stores Limited) to whom an express right to enforce any of its terms has been
provided.
	 
	25	 	COSTS
	 
	 	 	Expenses incurred by or on behalf of the parties, including the fees of agents and
advisers employed in connection with the negotiation, preparation or execution of this
Agreement, shall be borne by the party who incurred the liability.
	 
	26	 	SET-OFF
	 
	26.1	 	Save as specifically set out in this Agreement, all sums payable under or pursuant to the
terms of this Agreement shall be made free and clear of any counterclaim or set-off of any
kind.
	 
	26.2	 	The Sellers shall pay all sums payable by either of them under or pursuant to the terms of
this Agreement free and clear of all deductions or withholdings except for those required by
law. If a deduction or withholding is required by law the Sellers

31

 

	 	 	shall pay such additional amount as will ensure that the net amount the payee receives
equals the full amount which it would have received had the deduction or withholding not
been required.
	 
	26.3	 	In the event that any sum paid or payable by a Seller to the Buyer under or pursuant to this
Agreement is or will be chargeable to Tax in the hands of the payee (or would be so chargeable
but for the availability of any Relief then the Sellers shall pay such additional amount as
will ensure that the total amount received, net of Tax chargeable on such amount (or that
would be so chargeable but for such Relief), is equal to the amount that would otherwise be
payable under or pursuant to this Agreement provided that this sub-clause 26.3 shall not apply
to the extent that the amount payable becomes subject to Tax due to any voluntary act of the
Buyer after Completion which causes such amount to fall outside the scope of HMRC’s Extra
Statutory Concession D33.
	 
	27	 	INVALIDITY
	 
	27.1.1	 	Subject to Clause 27.1.2, if a provision of this Agreement is held to be illegal or
unenforceable, in whole or in part, under an enactment or rule of law, it shall to that extent
be deemed not to form part of this Agreement and the enforceability of the remainder of this
Agreement shall not be affected.
	 
	27.1.2	 	If a provision of this Agreement is, or but for this Clause 27 (Invalidity ) would be, held
to be illegal or unenforceable, in whole or part, but would be legal and enforceable if the
period of application or geographical application were reduced or if part of the provision
were deleted, the provision shall apply with the minimum modification necessary to make it
legal and enforceable.
	 
	28	 	COUNTERPARTS
	 
	28.1	 	This Agreement may be executed in a number of counterparts and by the parties on different
counterparts, but shall not be effective until each party has executed at least one
counterpart.
	 
	28.2	 	Each counterpart, when executed, shall be an original, but all the counterparts together
constitute the same document.
	 
	28.3	 	Delivery of an executed signature page of a counterpart by facsimile transmission or in
AdobeTM portable document format sent by electronic mail shall take effect as
delivery of an executed counterpart of this Agreement. If either method is adopted, without
prejudice to the validity of such agreement, each party shall provide the others with the
original of such page as soon as reasonably practicable thereafter.
	 
	29	 	COMMUNICATIONS
	 
	29.1	 	All communications between the parties with respect to this Agreement shall be in writing and
shall:

	 	(a)	 	be delivered by hand, or sent by first-class prepaid post (or airmail
if sent outside the United Kingdom) to, in the case of the Buyer, its address of
set out in this Agreement and, in the case of the UK Seller, the registered office
for the time being of the UK Seller or to another address in the United Kingdom
which the UK Seller notifies for the purpose of this Clause 29 (Communications )
and, in the case of the US Seller, to a duly appointed agent who is resident in the
UK.; or

32

 

	 	(b)	 	be sent by facsimile or email to the facsimile number or email address
stated below or as notified for the purpose of this Clause 29 (Communications ).

	29.2	 	And for the purposes of Clause 29.1(a), the US Seller irrevocably appoints the UK Seller as
its process agent to receive on its behalf any notice and/or service of process in any
proceedings. Such service shall be deemed completed on delivery to such process agent
(whether or not it is forwarded to and received by the US Seller). If for any reason such
process agent ceases to be able to act as a process agent, the US Seller irrevocably agrees to
appoint a substitute process agent acceptable to the Buyer and to deliver to the Buyer a copy
of the new process agent’s acceptance of that appointment within 30 days.
	 
	29.3	 	The US Seller irrevocably consents to any notice and/or any process in any legal action or
proceedings in connection with this Agreement being served on it in accordance with the
provisions of this Agreement relating to the service of notices.
	 
	29.4	 	In the absence of evidence of earlier receipt, communications shall be deemed to have been
received as follows:

	 	(a)	 	(if sent by post within the United Kingdom) two Business Days after
posting;
	 
	 	(b)	 	(if sent by post outside the United Kingdom) five Business Days after
posting;
	 
	 	(c)	 	(if delivered by hand) on the day of delivery, if delivered at least
two hours before the close of business hours on a Business Day, and otherwise on
the next Business Day;
	 
	 	(d)	 	(if sent by facsimile) at the time of transmission, if received at
least two hours before the close of business hours on a Business Day, and otherwise
on the next Business Day; and
	 
	 	(e)	 	(if sent by email) at the time of sending, if sent at least one hour
before the close of business hours on a Business Day, and otherwise on the next
Business Day (in each case, unless the sender receives notification that the email
has not been successfully delivered or an automated response that the recipient is
absent or is not checking emails).

	29.5	 	For the purposes of this Clause 29 (Communications ), “business hours” means between the
hours of 10.00 and 17.00 inclusive, London time.
	 
	29.6	 	In proving service it shall be sufficient to prove that personal delivery was made, or that
the envelope containing the notice was properly addressed and stamped and placed in the post
or that the facsimile transmission was transmitted to the specified number and a confirmatory
transmission report received.
	 
	29.7	 	Communications addressed to a Seller which are delivered or sent in accordance with Clause
29.1, shall be marked for the attention of Martin McCormick and communications addressed to
the Buyer shall be marked for the attention of Helen O’Keefe.
	 
	29.8	 	The facsimile numbers and email addresses referred to in Clause 29.1 are:

	 	 	for the Seller:	 	 0870 444 5944 (martin.mccormick@handleman.co.uk) in each case marked for
the attention of Martin McCormick.

33

 

	 	 	For the Buyer:	 	01992 646 721(helen.o’keefe@uk.tescoandl.com) in
each case marked for the attention of Helen O’Keefe.

	30	 	ENTIRE AGREEMENT
	 
	 	 	This Agreement and the documents referred to in it together constitute the whole
agreement between the parties and, subject as expressly provided to the contrary in this
Agreement, supersede all previous negotiations, agreements and understandings, written
or oral, between the parties relating to the subject matter of this Agreement. The
Buyer hereby waives any claim in respect of any representation, statement, covenant or
undertaking made or given by either Seller unless and to the extent a claim lies for
breach of this Agreement or any of the documents referred to in it. Nothing in this
Clause 30 (Entire agreement ) shall exclude any liability for fraud.
	 
	31	 	PROPER LAW
	 
	 	 	This Agreement shall be governed by and construed in accordance with English law and the
parties submit any dispute which may arise out of, under, or in connection with this
Agreement to the exclusive jurisdiction of the English courts.

IN WITNESS of which the parties have signed this agreement on the date set out above.

34

 

Schedule 1 : Business, Excluded Business and Consideration

Schedule 1

Business, Excluded Business and Consideration

Part 1

The Business

The operation of a centre for the sorting of CDs, DVDs and computer games and the provision of
distribution services at and from the Property, and the provision of related merchandising
functions at the Buyer’s Group’s stores in relation to the same to Tesco Stores Limited and the
provision of certain merchandising services, all on the basis set out in the Distribution
Agreement.

Part 2

The Excluded Business

Those operations of either Seller that do not relate exclusively to the provision to Tesco Stores
Limited of sorting and distribution services relating to CDs, DVDs and computer games or the
provision of merchandising services (all on the basis set out in the Distribution Agreement) and
any operations based at the Warrington premises.

Part 3

Apportionment of Consideration

	 	 	 	 	 	 	 
	 	 	 	 	£
	 
	 	 	 	 	 	 
	1
	 	Movables	 	 	742,000	 
	2
	 	Motor Vehicles	 	Nil	 
	3
	 	Plant and equipment	 	 	7,745,000	 
	4
	 	Business Contracts excluding those referred to in 5 below	 	Nil	 
	5
	 	Leased Assets and related Business Contracts	 	Nil	 
	6
	 	Claims	 	Nil	 
	7
	 	Business Records	 	Nil	 
	8
	 	Business IPR	 	Nil	 
	9
	 	Property	 	 	913,000	 
	10
	 	Goodwill	 	Nil	 
	12
	 	US Assets	 	Nil	 
	13
	 	Other (please specify)	 	Nil	 
	 
	 	TOTAL	 	 	9,400,000	 

35

 

Schedule 2 : The Property

Schedule 2

The Property

Particulars of the Property

Leasehold land at Wingates Industrial Estate, Westhoughton, Bolton registered at the Land Registry
under title number MAN68061.

36

 

Schedule 3 : Employees

Schedule 3

Part 1

Employees

Paul Callow

Neil Hamblett

John Metcalfe

Sharon Lewis

Paula Murphy

Marcin Bering

Hilary Green

Julie Halsall

Helen Willett

Paul Brylowski

Dominic Chung

James Ellison

David Hilton

Damian Sandilands

Michelle Wood

Carl Agoglia

Stuart Allen

Stephen Anders

William Astley

Susan Atherton

Nick Atkinson

Marzena Badura

Kamil Badura

David Bessell

Michael Birt

Rafal Blaszczuk

Justyna Boryn

Shaun Bottomley

Paul Brewin

Marta Bromka

Alison Burbridge

Michael Burke

Ian Bushell

Ann Chatterley

Jacek Chyzak

Linda Connolly

Michael Cooke

Wendy Crossland

Sylwia Czapara

Anthony Davies

David Davies

Pamela De’issik

Sally Dennis

Brian Doran

Colin Duncalf

Scott Duncan

Jason Durkin

Robert Dwyer

Ryan Edwards

Keiran Edwards

Samuel Egan

Gary Fairclough

Simon Farrell

David Foran

Stephen Gaskell

Andrew Goldsmith

Stephen Grant

George Green

John Greenwood

Martin Greer

Kevin Griffiths

Marcin Gryza

Magdalena Grzesiak

Jon Heathcote

Anthony Higgins

Terrence Hodgkinson

Nicholas Holden

Scott Holland

John Holton

Robert Hooton

Keith Ince

Darren Jacks

Eva James-Joimot

Marta Jankiewicz

Germain Kadima

Piotr Kalafus

Stephen Keeley

Duncan Keen

37

 

Schedule 3 : Employees

Lee Kennedy

Wayne Kent

Paul Kenwright

Sharon Kenyon

Abid Khan

Nathan Khan

Nathan Kirfoot

Jaroslaw Kuprowski

Slawomir Kuprowski

Krzysztof Kwiatkowski

Anil Ladua

Graham Latchford

Andrew Lawler

Michael Lee

Dorota Lenartowicz

Darren Lewis

Malgorzata Lipinska

Ryan Loynd

Caroline Lucas

Barry Lucas

Linda Maher

Alison Marlor

Deborah Marwick

Ashley Marwick

Jason Mccormick

Andrew Mcguffy

Matthew Meakin

Michelle Menzies

Gabriela Miedziak

Jonathan Mingham

Andrew Moden

Anne Marie Monks

Arkadiusz Mucha

Mohmed Naliya

Alexander Ndovie

Yassin Olow

Bolaji Onifade

Jeffrey Parkinson

Chandu Patel

Neil Pendlebury

Stephen Perks

Kinga Polak

David Price

Jay Priestley

Neil Richards

Emma Robinson

John Rothwell

Stephen Ryan

Rafal Safin

Arthur Schollar

Ansumania Sesay

Steven Sharples

Michael Shepherd

Jon Sherrington

Dennis Smith

Matthew Smith

Mariusz Soltysik

Michelle Soufi

Diane Stone

Ian Swettenham

Dariusz Szczucki-Stogniew

Viktoria Szebenyi

Mark Tannock

Philip Taylor

Jean Utumabahutu

Lukman Vali

Andrew Vallis

Joanne Wallace

Kenneth Watkins-Wilson

Damian Watson

Martin Whittle

David Williamson

Richard Woodward

Kathleen Young

Erika Zilinskaite

Jadvyga Zilinskiene

David Austin

Steven Bond

Neil Brisco

Matthew Fox

Martin Gore

Thomas Middling

Stephen Siddeley

Neil Smith

Victoria Speight

Danny Thompson

38

 

Schedule 3 : Employees

Mark Vardy

Michael Willcocks

Agnieszka Legowicz

Thomas Smith

Anil Ladua

Vincent Dakin

Stewart Parr

Paul Hayes

Christine Simon

Stephen Richardson

Christopher Smyth

Ann Brookman

Pauline Bennett

Yvonne Bird

Claire Brown

Paul Cannon

Maggie Curtis

Suzanne Dalton

Audrey Davidson

Frances Grant

Barry Hughes

Brett Marsh

Joy Maunder

Janette Moffett

Sally Mole

James Moore

Lynda O’Malley

Shelley Palmer

Cathryn Pell

Karen Rance

Melanie Rowe

Philip Sittlington

Justyna Tweddle

Kellie Wareing

Marilyn Lisa Webb

Alison Welham

Lorraine Westerman

John Quail

Vaughan Thomas

Wendy Seaton

Mark Cleverly

Ian Parish

Joanne Cavanagh

Peter Lawless

Fraser Paterson

Donna Alderson

Lucy Barclay

Kirsten Berini

Yvonne Chetter

Craig Embrey

Vincent Hoey

Janette Thomson

Janet Evans

Clare Oliver

Neil Burgess

Mihir Vakil

Margaret Wood

Paul Dakin

Rachel Loftus

Sophie Hoey

Benjamin Rowe

Nichola Miller

Janet Prior

Neil Richards

Robert Maxfield

John Tickle

Kuljit Padda

Kevin White

Alison Bird

Graeme Braby

Jit Vaghela

Andrew Summers

Garry Blackman

Rupal Gadhvi

Donna Stevens

Jitesh Vin

Steven Reyes

Christopher Smith

Neil Jordan

Nadia Dotsenko

Simon Barnard

Frank Ralko

Katarzyna Kotas

Paul Kumar

David Glaze

Wesley Scott

Mahatma Madhususdan

39

 

Schedule 3 : Employees

Ahmed Nabi Khan

Abdalla Azazy

Deborah Pickering

Kerry Anderson

Julie Bateman

Freda Bennett

Rosemary Bleakley

Fiona Brown

Margaret Brown

Seonaid Campbell

Kathleen Campbell

Patricia Corcoran

Sandra Craighead

Jacqueline Dearie

Elaine Dodds

Stephanie Donald

David Dunne

Patricia Erwin

Benjamin Fitzpatrick

Gail Flynn

Stanley Forbes

Irene Fulton

Julia Gaffey

Paula Gonzalez

Anne Gordon

Christopher Gore

Craig Grant

Stacey Greens

Graeme Greer

Ruth Gunn

Siobhan Heatley

Marilyn Hill

Roseleen Hurrell

Mary Jenkins

Elizabeth Jordan

Ann Kelly

Lisa Kilfedder

Elizabeth King

Isabel Kirkland

Karen Lawson

Joy Lowry

Alison Lyle

Anne Lynagh

Kirsty Macleod

Anne Marshall

Claire Martin

Elizabeth Masson

Carol McCrae

Sally McCune

Nicola McDonald

Tonia McGinley

Kerry McIntosh

Tracey McKinnon

Heather McKnight

Marion McLaughlin

Margaret McMenamin

Mary McWilliam

Helen Millar

Ronnie Miller

Jennifer Mitchell

Samuel Moffett

Dorothy Murray

James Nicol

Nicola O’Neil

Joanne Palmer

Cindy Parsley

Angela Porteous

Janice Potts

Sally Richards

Betty Rooney

James Ross

Isobel Savage

David Skinner

Linsey Smart

Shirley Smeaton

Tracey Smith

Graham Steele

Alison Stewart

Catherine Taggart

Yvonne Taylor

Joan Thompson

Anne Thomson

Diane Watson

Elisa Webber

Victoria Weir

Moira West

Hayley Wilkins

40

 

Schedule 3 : Employees

Janice Kelly

Irene McNee

Paul Armitage

Pauline Armstrong

Claire Louise Baines

Elizabeth Barrett

Simon Barson

Carol Bee

Laya Bentley

Susan Bevers

William Birkenhead

Margaret Boggs

John Botterill

Debbie Brewster

Sarah Brown

Samuel Butterworth

Stacey Cartledge

Dawn Chandler

Helena Clarke

Elaine Cotton

Annette Crofts

Patricia Curran

Vivienne Daffin

Valerie Darby

Louise Davis

Margaret Day

Brian Dill

Christine Dinsley

Katrina Dyas

Matthew Elders

Yvonne Ellwood

Lynne Everitt

Karen Falconer

Wendy Fantom

Christine Flynn

Janette Fox

Karen Fraser

Sharon Gallagher

Andrew Gallimore

Christine Gambles

Nicola Gerrett

Beverley Giles

Michelle Green

Margaret Hardman

Karen Hardman

Judith Harrison

Margarita Hartley

Joan Hartley

Colin Hodgson

Paula Holmes

Rafaqat Hussain

Janet Hutchinson

Pauline Jackson

Peter Jamieson

Doreen Kay

Nicola Langton

Samuel Ledger

Julie Lewis

Victoria Macdonald

Liyana Mansor

Mandy Marshall

Nicola Marsland

Paula Mazurke

Lena McDonagh

Beverley Moody

Tracey Morgan

Gillian Morris

Pauline Munroe

Michelle O’Reilly

June Pankhurst

Carol Parker

Charlotte Pemberton

Tracy Perry

Rosalind Plummer

Mandy Preistley

Annette Preston

Norman Purcell

Georgina Ravenscroft

Amanda Richardson

Lorraine Richardson

Anita Rimmer

Lisa Ritchie

Ann Roberts

Susan Scruton

Judy Shaw

Amanda Shields

Sandra Smith

41

 

Schedule 3 : Employees

Lynne Sneidelback

Margaret Stephenson

Jill Stones

Sharon Thain

Barbara Thompson

David Tindale

Susan Tomlinson

Richard Towers

Joan Tweddle

Mark Wakefield

Sharon Walker

Felicity Walker

Marjorie Ward

Peter Wilby

Diane Williams

Elizabeth Williams

Karl Arndt

Terrie Austin

Kiran Bajwa

Penelope Baker

Maria Barber

Janette Bartram

Tracey Batchelor

John Bence

Paula Beniston

Sue Bennett

Heather Boyd

Sarah Bradbury

Regina Bradley

Donna Burnett

Joan Burrows

Emma Cannon

Darren Chadwick

Julie Chapman

Anthony Charlesworth

Julie Cherry

Janine Clague

Stephen Collins

Chris Connolly

Dawn Cooke

Julia Cross

Ann Dixon

Melissa Fermoyle

Derrick Fleming

Marion Ford

Lesley Ford

Sally Foster

Deborah Gates

Alison Greaves

Alison Hall

Joanne Hall

Lorraine Harris

Lorraine Helm

Keith Horner

Karen Hounslow

Helen Hughes

Debra Ives

Catherine Jackson

Alex Jones

Yvonne Jones

Diane Kirwan

Shiju Korah

Neena Kotadia

Ali Koyes

Lynda Latham

Ann Lawrence

Dianne Leach

Andrew Lodziak

Gillian Longshaw

Christine Lovesey

Sandra Lowry

Patricia Lucas

John Macmenemey

Rita Manfredi

Zena May

Michael Mchugh

Sharon Mcmullen

Alison Miller

Nicola Morgan

Noraini Nelson

Judith Newman

Richard Nunes

Tracey Oliver

Michael Owen

Lesley Parry

Sharon Penny

Sally Phillips

42

 

Schedule 3 : Employees

Louise Poole

Carol Porter

Thomas Prince

Sonia Richardson

Deborah Richardson

Kathleen Shaw

Robert Sherrington

Lynn Simons

Parminder Singh

Lynda Smith

Yvonne Southgate

Adrian Southwell

Carl Stokes

Sheila Styles

Kaille Sullivan

Patricia Swallow

Deborah Taylor

Janet Tiffany

Dawn Tromans

Yvonne Twigger

Carol Wagstaff

Sandra Waite

Catherine Young

Pamela Bolam

Yvonne Mudd

Gillian Lonie

Debra Styles

Susan Millns

Clara Allfrey

Lesley Badger

Claire Barnes

Robin Benjamin

Kerri Bradley

Deborah Bridger

Jo Britt

Pauline Caddy

Susan Cawse

Jackie Chapman

Karen Chapple

Laura Davis

Natalie Davis

Claire Dayment

Lorna Dighton

Tracy Dinnicombe

Maureen Dixon

Martina Donnelly

Elaine Downie

Beverley Eden

Linda Elms

Samantha Evans

Karen Evans

Laura Francis

Laura Franklin

Valerie Frost

Margaret Fuller

John Fussell

Suzanne Gibson

Neisha Harding

Derek Higgs

Denise Hooper

Maureen Hore

Nuala Howard

James Jackson

Edwina Jackson

Janette John

Janet Jones

Gwynfor Jones

Eileen Jones

Patrick Knowles

Mary Lewis

Charlotte Matthews

Gillian May

Jacqueline Mccormack

Paul Mellonby

Jill Moon

Christine Moore

Nina Morgan

Brian Muckleston

Dianne Murray

Leanne Open

Toni Payne

Nicola Pipe

Jackie Pittwood

Maureen Poole

Roy Pooley

Maxine Reasons

Juliet Rees

43

 

Schedule 3 : Employees

Alexander Ross

Cherry Rowland

Christopher Sabine

Teresa Salvidge

Mark Sarginson

Nicole Sasse

Vicki Searle

Shirley Senior

Ann Shanahan

Alison Snook

Caroline Sparks

Iris Stead

Andrew Stokes

Sheryl Taylor

Janet Thomas

Linda Thomas

Joanne Traverse

Margaret Turnbull

Madeline Twelftree

Bronwen Vigar

Susan Warren

Caroline Weed

Christabel White

Sandra Wilkins

Susan Williams

Gaynor Williams

Mourveen Wilson

Sylvia Wright

Julie Alcock

Susan Argyle

Melanie Ashby

Karam Bains

James Baker

Rachael Batson

Susan Beacham

Elizabeth Betty

Brenda Bone

Sarah Bowden

Mandy Bruce

Kathleen Cheung

Carol Church

Nicholas Connorton

Paula Crayford

Natalee Crichlow

Samantha Douglas

Paula Dufour

Lesley Dumigan

Gemma Edwards

Sarah Everard

Alassan George

Deirdre Gerrard

Clare Harden

Sarah Harper

Jennifer Harris

Rosemarie Hitches

Jacqueline Honey

Zia Hornby

Derek Iles

Kim Jackson

Jackie Jones

Lynnette Kenich

Huma Khalid

Juned Laliwala

Ellen Lane

Jim Lock

June Lynskey

Alison Malcolm

Jeet Malhotra

Mandy Manganiello

Danish Mansurie

Clair Marshall

Dawn Meadows

Kim Miles

Emma Millman

Sarah Mitten

Brandon Motloung

Lynn Mulley

Kay Mutch

Karen O’donnell

Lynda Osbourn

Michelle Parish

Lisa Penn

Margaret Poulton

Maureen Price

Jacqueline Reneaux

Victoria Roberts

Frances Rose

44

 

Schedule 3 : Employees

Alison Sinfield

Janet Stone

Faisal Taj

Kiran Taj

Fiona Tull

Jasbir Varaitch

Alan Wallis

Jacqueline Walsh

Joyce Webster

Jayne Whatmore

Trudy Williams

Rhonda Williams

Jane Wilson

Sheila Wyatt

Grace Xerri

Farzana Zaman

Sandra Abbas

Melvyn Adams

Joanne Adams

Oluwarotimi Albert

Karen Allen

Rosemary Armah

Sheila Ash

Ali Ashraf

Kim Barker

Regina Begum

Nicholas Bigg

Gillian Bird

Paula Bowers

Lauren Burke

Margaret Carter

Margaret Carter

Kim Cashman

Lynne Clarke

Julie Collison

Christopher Connolly

Janet Constance

Eileen Cotton

Brenda Cruise

Julie Cupidon

Cheryl Davie

Rosa Dipiazza

Susan Elbourne

Jose Ferreira

Dawn Ferris

Angela Flanagan

Lynda Ford

Carol Foster

Sean Fraser

Beverley Friend

Ralph Gibbons

Robert Gillan

Lesley Goodban

Rosemary Gowlett

Jacqueline Green

Trudy Green

Natasha Green

Debra Gunning

Abdul Hamid

Vincent Harper

Julia Harper

Catherine Harrington

Christine Hartshorn

Jane Hayward

Lisa Hounsell

Christine Huggett

Janet Hunt

Gloria Hurman

Muhammad Iqbal

Michelle Irwin

Katherine Jackson

Marie Joseph

Geraldine Keys

Debbie Knell

Angelina Kudolo

Amanda Lacey-Ward

Rachel Laurenson

Mary Lee

Stephon Litchmore

Denise Lowe

Jacqueline May

Dawn Morgan

Anita Morrison

Mary Ndow

Stephanie Norris

Samuel Olamiko

Amenze Olotu

45

 

Schedule 3 : Employees

Priscilla O’nwere

Manisha Pandey

Eileen Parsons

Ian Peach

Dilip Popat

Emma Pugmire

Mamoon Rashid

Rafal Rewt

Lisa Richards

Margaret Rickard

Kate Rook

Kerry Rudge

Nicola Shackleford

Ashfaq Shaikh

Susan Smithson

Izabella Sowe

Rosalind Sparks

Debbie Steward

Judith Stratton

Susan Summers

Chanelle Thompson

Martin Turrell

Daksha Umeria

Adrian Walton

Ramsen Warda

Sarah Wheeler

Stella Wild

Andrew Wilkinson

Susan Willcocks

Deborah Williams

Debbie York

Laura Lockwood

Ann Conmy

Sharon Eade

Angela Earl

Sandra Hardy

Victoria Prior

Brenda Robertson

Armani nikhil Akbar-roy

Michelle Bradnick

Esther Bradshaw

Yvonne Richings

Amarpal Sohal

Darren Callaby

Pooja Shah

Saeed Khan

Julie Uden

Stephen Webb

Foysal Muhammed

David Gentry

Annabel Ashalley-Anthony

Carol Nicholson

Chloe Harris

Donna Macdonald

Florence Webb

Hazel Ann Harris

Jalpa Pravinchandra

Janet Susan Keen

Jennifer Denise Metcalf

Jonathan David Jones

Julia Ingham

Julie Mallabar

Linda Ann Odborne

Marie May

Michelle Linton

Andrew Mulholland

Kirkham Paul

Roseline Bornah

Samantha Jayne Howard

Sandra Denise Mulhern

Satish Pokala

Sophie Guest

Sunny Ochuko Musa

Tejas Ganatra

Tim Barclay

Treasure Diana Kipping

Vanessa Bateson

Aaron Edwards

Victoria Jennifer Russell

Tuti Fraser

Jacqueline Ashton

Rosemary Furber

Richard McGuire

Eileen McGawn

Marian Mckeever

Kirsten Brown

46

 

Schedule 3 : Employees

Caroline Lyndon

Denise Talac

Rebecca Keeble

Stephanie Short

Nasiru Huseini

Lisa Wingham

Sean Rogers

Scott Barker

Joyce Pieri

Michael Barry

Phillipa Parkin

Louise Feller

Connor Hoskins

Douglas Lowe

Tabitha Herriot

Pauline Bromhall

Daniel Pullen

Joanne Burrows

Stacey Will

Kathyn Yare

Alison Richards

Elizabeth Millard

Ruta Kavaliauskiene

Shelagh Callaghan

Hillary Kerr

Jade Spence

Iain Kaye

Deborah Andrew

Michael Barry

Rose Fletcher

Scott Simpson

David Evans

Christine Storey

Tracey Brentnall

Elizabeth Harry

Kathryn Caveney

Christine Freeman

Senga Priestly

Jackie Muir

Jonathan Ravenscroft

Nicholas Brice

Sue Hodgson

Martin Hickling

Carne Beverley Jayne

Helen Taylor

Paul Graham

Agnieszka Gierek

Monica Cichoka

Valerie Butler

Keith Longworth

Faizal Patel

Ian Brace

Jennie McHugh

Kimberley Gough

Sinthujah Sirvamohan

Mary Bell

Kaye Wood

Carol Spencer

Rita Lewis

Julie Osborne

Corrina Aitchinson

Part 2

US Employees

Ranjitha Dusa

Graeme Fawcett

Tammy Stark Kennedy

Sanjay Kulkarni

Mark McInnes

Adam Moy

47

 

Schedule 3 : Employees

Jennifer Moy

Katie Williams

Amjad Hussain

Part 3

Non Transferring Employees

Judith McGrath

Ian Brady

Corrie McLellan

Laura Cullen

Andrew Dean

Gaynor Connell

Leah Graham

Jane Haworth

Sarah Lawson

Robert Grant

Sian Lee

Joanne Owen

Martin McCormick

Joanne Bonney

48

 

Schedule 4 : Contracts

Schedule 4

Contracts

Part 1

Business Contracts

	1	 	Supply and installation agreement relating to Knapp sortation system between Knapp Logistik
Automation GmbH and the UK Seller
	 
	2	 	Service agreement between Knapp Logistik Automation GmbH and the UK Seller
	 
	3	 	Agreement between Parceline and the UK Seller
	 
	4	 	Rental contract between Atlet Finance Limited and the UK Seller
	 
	5	 	Supply Agreement between Ribble Packing Limited and the UK Seller
	 
	6	 	Agreement between Cleaning Northwest and the UK Seller
	 
	7	 	Operating agreement between Phoenix Vending North West and the UK Seller
	 
	8	 	Supply agreement between Greencare Environmental Limited and the UK Seller
	 
	9	 	Agreement between KONE Bolton Brady Limited and the UK Seller
	 
	10	 	Agreement between Castle Fire Limited and the UK Seller
	 
	11	 	Agreement between Select Air Services Limited and the UK Seller
	 
	12	 	Agreement between Trees Are Green Limited and the UK Seller
	 
	13	 	Maintenance contract between the UK Seller and Schindler Limited
	 
	14	 	Maintenance agreement between Zoom CCTV and the UK Seller
	 
	15	 	Service/rental agreement between Shorrock Trichem Limited and the UK Seller
	 
	16	 	Agreement between Evergreen Landscape Services and the UK Seller
	 
	17	 	Agreement between Cannon Pest Control and the UK Seller
	 
	18	 	Agreement between Arval UK Limited and the UK Seller
	 
	19	 	Agreement between ECS Recruitment Group Limited and the UK Seller
	 
	20	 	Agreement between Greenham and the UK Seller
	 
	21	 	Agreement between Konica Minolta and the UK Seller
	 
	22	 	Agreement for the short-term vehicle rental between Lombard and the UK Seller
	 
	23	 	Agreement between Npower Limited and the UK Seller
	 
	24	 	Agreement between Office Angels Limited and the UK Seller
	 
	25	 	Agreement between Sealock Limited and the UK Seller

49

 

Schedule 4 : Contracts

	26	 	Agreement between Tanto UK Limited and the UK Seller
	 
	27	 	Licence between The Official UK Charts Company and the UK Seller
	 
	28	 	Agreement between Top Gear Recruitment Limited and the UK Seller
	 
	29	 	Agreement between UKOS Plc and the UK Seller
	 
	30	 	Agreement between Network Technology Systems Limited and the UK Seller
	 
	31	 	Agreement between BTiNet and the UK Seller
	 
	32	 	Agreement between the UK Seller and NTL Business Limited
	 
	33	 	Hire Agreement between A+A Time and the UK Seller
	 
	34	 	Agreement between BT and the UK Seller relating to BT Business One Plan
	 
	35	 	Agreement between Sameday UK Limited and the UK Seller
	 
	36	 	Agreement between ISIS and the UK Seller
	 
	37	 	All open purchase orders for Non-Direct Stock, and the benefit of rights and privileges under
completed purchase orders for Non-Direct Stock
	 
	38	 	Agreement between Computer Business Forms and the Sellers for the supply of toners and
cartridges
	 
	39	 	The lease agreements between the US Seller and Forsythe / McArthur Inc with the following
references: AN, AE2, AEX and TX.
	 
	40	 	Agreement between Computer Power Protection and the Sellers for supply of, and support
services relating to, UPS equipment.
	 
	41	 	Hardware support agreement between European Electronique and the Sellers
	 
	42	 	Maintenance agreement between F5 Networks and the Sellers
	 
	43	 	Mobile rental agreement between Orange and the Sellers to the extent they relate to 979
contracts and mobile handsets.
	 
	44	 	IT maintenance agreement between Paxar Limited and the Sellers
	 
	45	 	Support and maintenance agreement between Zetes Limited and the Sellers
	 
	46	 	Hosting services agreement between Rackspace and the Sellers
	 
	47	 	ADSL, Internet and OOS agreements between the Sellers and various suppliers
	 
	48	 	Agreement between Verizon and the Sellers for local dial access
	 
	49	 	Insurance policy from Allianz Insurance Plc
	 
	50	 	Maintenance agreement between Bibby Factors Yorkshire and the Sellers
	 
	51	 	Agreement between British Gas Trading and the Sellers

50

 

Schedule 4 : Contracts

	52	 	Agreement between Calor Gas and the Sellers
	 
	53	 	Agreement between Contact Packaging and the Sellers
	 
	54	 	Maintenance agreement between Delta Environmental and the Sellers
	 
	55	 	Agreement between Dialcard and the Sellers
	 
	56	 	Agreement between DPD and the UK Seller
	 
	57	 	Agreement between Eon and the Sellers
	 
	58	 	IT consultancy agreement between Fast Corporate Services and the Sellers
	 
	59	 	IT consultancy agreement between ITMCS Limited and the Sellers
	 
	60	 	Agreement between Jobwise and the Sellers for supply of temporary staff
	 
	61	 	Hire agreement between Jungheinrich and the Sellers for fork lift trucks and stacker trucks
	 
	62	 	Supply agreement between LISB Commercial Finance and the Sellers
	 
	63	 	Agreement between United Utilities and the Sellers
	 
	64	 	All Software licence contracts and associated support agreements which are listed in Schedule
8, Part 1 of this Agreement
	 
	65	 	Software support agreement between Wisegrove and the Sellers

Part 2

Excluded Business Contracts

	1	 	Network Service Agreement and support agreements between Thawte Inc and the UK Seller.
	 
	2	 	Licence agreement between Axicon Auto ID Limited and the UK Seller.
	 
	3	 	Information Services agreement between Global eXchange Services Inc and the US Seller and all
amendments thereto.
	 
	4	 	All agreements between the US Seller and Meridian Leasing Corporation, including the Master
Lease Agreement dated 15 August 2007 and all supplements thereto.
	 
	5	 	All service and leasing agreements between the US Seller and International Business Machines
Corporation.
	 
	6	 	Agreement between Business Mobiles.Com Limited and the UK Seller in relation to mobile phones
not transferring to the Buyer.
	 
	7	 	All agreements between Qwest and the UK Seller.
	 
	8	 	Licences between Microsoft eOpen and the UK Seller

51

 

Schedule 4 : Contracts

	9	 	All software licence and support agreements between Sanderson Limited and the Sellers.
	 
	10	 	The lease agreements between the US Seller and Forsythe/McArthur Associates Inc, with the
following references: AR, AP AP2, AR1, and any other agreements between the US Seller and
Forsythe/McArthur Associates save to the extent referred to in Part 1 of Schedule 4.
	 
	11	 	Managed Storage Residency Agreement between the US Seller and EMC Corporations, dated the 30
March.
	 
	12	 	Agreement between IT Management and Consulting Services Limited and the Sellers.
	 
	13	 	Software Distribution Agreement and software support agreements between Adobe Systems Inc and
the Sellers.
	 
	14	 	All software support agreement between Axicon and the Sellers.
	 
	15	 	All software licence and support agreements between D3 and the Sellers.
	 
	16	 	All software licence and support agreements between Digibuy and the Sellers.
	 
	17	 	Agreement between Frontier and the Sellers.
	 
	18	 	Agreement between GXS and the Sellers.
	 
	19	 	Lease agreement between IBM and the Sellers.
	 
	20	 	Hosting agreement between IBM and the Sellers.
	 
	21	 	ISP agreement between NTL Telewest and the Sellers
	 
	22	 	All software licence and support agreements between RegSoft.com and the Sellers.
	 
	23	 	All software licence and support agreements between RippleTech and the Sellers
	 
	24	 	Software support agreement Sanderson Limited and the Sellers.
	 
	25	 	All software licence and support agreements between Sato International Pte Limited and the
Sellers.
	 
	26	 	All software licence and support agreements between SDI and the Sellers.
	 
	27	 	All software licence and support agreements between SoftAsset and the Sellers.
	 
	28	 	All software licence and support agreements between Sophos and the Sellers.
	 
	29	 	Software licence between Star Internet and the Sellers.
	 
	30	 	All software licence and support agreements between Voitech and the Sellers.
	 
	31	 	All software licence and support agreements between WatchGuard and the Sellers.
	 
	32	 	All software licence and support agreements between WW Key Centers and the Sellers.

52

 

Schedule 4 : Contracts

	33	 	Any contracts between the Sellers and Orange save to the extent they are referred to in Part
1 of Schedule 4.
	 
	34	 	All contracts between the Sellers and Nokia in relation to mobile phones.
	 
	35	 	Maintenance agreement between CE Services and the Sellers for computer equipment
	 
	36	 	Maintenance agreement between Kingston and the Sellers
	 
	37	 	Infrastructure support agreement between b2net and the Sellers
	 
	38	 	Telecommunications agreement between Yes Telecom and the Sellers
	 
	39	 	The Sellers’ licence agreements relating to Backbone Plug-In software
	 
	40	 	The Sellers’ licence agreements relating to Click Yes Pro software
	 
	41	 	The Sellers’ licence agreements relating to Symantec Ghost software
	 
	42	 	Software support agreement between Star Internet and the Sellers
	 
	43	 	All software licences and support service agreements between the Sellers and Oracle
Corporation save for those listed in Schedule 8, Part 1.

53

 

Schedule 5 : Licences

Schedule 5

Licences

Producer Responsibility Obligations (Packaging Waste) Regulations 2007 certificate of compliance
issued by TagPack Limited dated 31 January 2008

54

 

Schedule 6 : Motor Vehicles, Plant, US Assets and other assets

Schedule 6

Motor Vehicles, Plant, US Assets and other assets

Part 1

Motor Vehicles

None other than as listed in Schedule 7 (The Leased Assets ).

Part 2

Plant

Sortation Equipment

Pallet racking

6 pump trucks

Automated CD Dispenser modules

Plastic shredder and cardboard compactor

Granulator, compactor baler

20 Hand Pallet Trucks

PEEM parts for A-Frames

Steel Shelving Bays

Hand pallet truck

1 UAV star sorter

Racking at Big Sam

Compressor Equipment for Big Sam

Pallet Wrapper

Reach Truck

20 x Pump Truck

979 mobile handsets

Part 3

US Assets

Roch — ECC1

HDLLH003

55

 

Schedule 6 : Motor Vehicles, Plant, US Assets and other assets

Storage — Troy File 3

Troy — File 3

Blade Centre

PHDL005

PHDL007

HDLLH002

Roch-DC1

Roch-VC1

Cisco 4506 Switch, Cisco 3745 & 2811 Router

Cisco 6509 Switch, Cisco 7204 Router

Cisco 3560 Switch, Cisco 3745 Router

All Business Contracts to the extent that they relate to the US Seller as listed in Schedule 4
(Contracts)

All Proprietary Software to the extent that it relates to the US Seller as listed in Schedule 8
(Software)

56

 

Schedule 7 : The Leased Assets

Schedule 7

The Leased Assets

	 	 	 
	Vehicle Description	 	Vehicle Registration Number
	 
	Volkswagen Passat 1.9 TDI Sport

	 	VN56 NXF
	Saab 9-3 1.9 TDI Sport

	 	OE56 WGA
	BMW 116i 5dr

	 	LA56 VRC
	Audi A3 2.0 TDI Sporttronic

	 	YA56 GJY
	Audi A3 1.9 TDI Special Edition

	 	YD07 WFB
	VW Passat 2.0 TDI SE

	 	VN07 CXZ
	VW Golf 2.0 SDI S

	 	VN07 CZF
	Audi A3 1.6 Special Edition

	 	YD07 XFL
	VW Golf 2.0 SDI S

	 	VN07 CXA
	VW Passat 2.0 TDI SE

	 	VN07 LHY
	VW Golf 2.0 SDI S

	 	VN07 LLP
	VW Golf 2.0 SDI S

	 	VN07 LGX
	VW Golf 2.0 SDI S

	 	VN07 LJV
	VW Golf 2.0 SDI S

	 	VN07 LGL
	VW Golf 2.0 SDI S

	 	VN07 LGK
	VW Passat 2.0 TDI SE

	 	VN07 LKL
	VW Golf 2.0 SDI S

	 	VN07 LGO
	Audi A3 1.9 TDI Special Edition

	 	YG07 WRC
	VW Passat 2.0 TDI SE

	 	VN07 CZX
	VW Golf 2.0 SDI S

	 	VN07 LLD
	VW Golf 2.0 SDI S

	 	VN07 LLC
	VW Golf 2.0 SDI S

	 	VN07 LJA
	VW Golf 2.0 SDI S

	 	VE07 XLO
	VW Golf 2.0 SDI S

	 	VE07 XLH
	VW Golf 2.0 SDI S

	 	VE07 XMS

57

 

Schedule 7 : The Leased Assets

	 	 	 
	Vehicle Description	 	Vehicle Registration Number
	 
	VW Passat 2.0 TDI SE

	 	VE07 XKZ
	VW Golf 2.0 SDI S

	 	VE07 XMW
	VW Golf 2.0 SDI S

	 	VE07 XMG
	VW Passat 2.0 TDI SE

	 	VE07 XLS
	VW Golf 2.0 SDI S

	 	VN07 XPE
	Mini Cooper S

	 	LC07 XAK
	VW Golf 2.0 SDI S

	 	MEZ 9639
	Audi A3 1.9 TDI Special Edition

	 	BT07 VVX
	Audi A3 1.6 MPI Special Edition

	 	DE06 HSU
	Audi A3 2.0 TDI S-line

	 	AJ06 WCV
	Mercedes Benz C220 CDI Sport Auto

	 	YE55 WUA
	Mercedes Benz CLK 220 CDI Avantgarde

	 	DU55 UBK
	Volkswagen Golf 1.0 TDI SE

	 	YR06 YXC
	Honda CR-V 2.2 CDTI Sport

	 	HN06 HPF
	Saab 9-3 Estate 1.9 TID Vector Sport

	 	OV06 XXA
	Volkswagen Golf 1.9 TDI Sport

	 	YM06 FDA
	Peugeot 407 2.0 HDI

	 	NH06 JTZ
	Volkswagen Golf 1.9 SDI

	 	VE54 VAM

Trucks and equipment supplied under the rental contract agreement between Atlet Finance Limited and
the UK Seller

Water coolers and boilers supplied under the supply agreement between Greencare Environmental
Limited and the UK Seller

Balers supplied under the rental order agreement between Trees are Green Limited and the UK Seller

Hygiene services supplied under the rental agreement between Shorrock Trichem Limited and the UK
Seller

Clock machines and clock cards supplied under the supply agreement between A + A Time and the UK
Seller

B2 Business Systems: 3 xerox 4110 production copier/printers, high capacity paper feeds and staple
finishers including assed maintenance, toner and staples.

58

 

Schedule 8 : Software

Schedule 8

Software

Part 1

Licensed Software

	1	 	Software licence agreement between Aldon Computer Group and the Sellers
	 
	2	 	All software licence and support agreements between Autologik and the Sellers
	 
	3	 	All software licence and support agreements between Citrix Software and the Sellers
	 
	4	 	Software licence agreement between Creative Breakthrough and the Sellers
	 
	5	 	All software licence and support agreements between Teradata and the Sellers
	 
	6	 	All software licence and support agreements between HR Timeware and the Sellers
	 
	7	 	All software licence and support agreements between IBM and the Sellers
	 
	8	 	Software licence agreement between Insevo aka Bordeaux Acquisition Corp and the Sellers
	 
	9	 	All software licence and support agreements between Knapp and the Sellers
	 
	10	 	Software licence agreement between Merant/Serena and the Sellers
	 
	11	 	All software licence and support agreements between Peem and the Sellers
	 
	12	 	All software licence and support agreements between Qwest and the Sellers
	 
	13	 	All software licence and support agreements between Sage and the Sellers
	 
	14	 	TN 3270 Plus software licence agreement between SDI and the Sellers
	 
	15	 	Software licence agreement between Syncsort/Rocket and the Sellers
	 
	16	 	Software licence agreement between T.L. Ashford and Associates and the Sellers
	 
	17	 	All software licence and support agreements between Tidal and the Sellers
	 
	18	 	The Sellers’ licence agreements relating to Bethnic Golden software
	 
	19	 	The Sellers’ licence agreements relating to Paxton Net2 software
	 
	20	 	The Sellers’ licence agreements relating to Taviz Integration Studio software
	 
	21	 	Software licence and software support agreements between the Sellers and Micro Focus Limited
	 
	22	 	The Sellers’ software licence and support agreements with Oracle Corporation to the extent
they relate to the following applications/technology and number of licences:

59

 

Schedule 8 : Software

	 	 	 	 	 
	Product Name / License Type	 	Quantity
	Warehouse Management — Application User Perpetual
	 	 	75	 
	Enterprise Integration Gateways — Computer Perpetual
	 	 	2	 
	Oracle Applications Adapter — Processor Perpetual
	 	 	1	 
	Data Integrator — Source Database — Processor Perpetual
	 	 	4	 
	Data Integrator — Target Database — Processor Perpetual
	 	 	4	 
	Internet Developer Suite — Named User Plus Perpetual
	 	 	8	 
	Discoverer Desktop Edition — Named User Plus Perpetual
	 	 	20	 
	Change Management Pack — Named User Plus Perpetual
	 	 	175	 
	Advanced Pricing — Electronic Order Line Perpetual
	 	 	30,000,000	 
	Logical Apps Apps Form — Operating Unit Perpetual
	 	 	1	 

Part 2

Proprietary Software

	1	 	All interfaces between:
	 
	(a)	 	Demand Change Management and Channel of Choice
	 
	(b)	 	Channel of Choice and Oracle
	 
	(c)	 	Oracle and the Automation Control Systems
	 
	2	 	Any proprietary components that interface with Oracle’s 11i eBiz suite made by or on behalf
of the Sellers.
	 
	3	 	Supply Chain Planning application (including Portal, PL-SQL and Schedule Modules)
	 
	4	 	Wave Management application.
	 
	5	 	Any configurations or modifications made by the Sellers to software licensed by Tidal
Software, which are owned by the Sellers.
	 
	6	 	The “Seeker” and “Vignette” applications.
	 
	7	 	Store Inventory application (including Vendor Managed Inventory Module)
	 
	8	 	Order Generation and Management system, including:

	 	i.	 	Channel of Choice
	 
	 	ii.	 	New Release Benchmark
	 
	 	iii.	 	Re-alignment
	 
	 	iv.	 	Manual Order Import

60

 

Schedule 8 : Software

	 	v.	 	AD Promo
	 
	 	vi.	 	Order management Console
	 
	 	vii.	 	Rapid Replenishment
	 
	 	viii.	 	Re-assortment

	9	 	BIS:

	 	i.	 	Business Intelligence
	 
	 	ii.	 	SLA reports
	 
	 	iii.	 	Discoverer
	 
	 	iv.	 	POS Sales

	10	 	Replenishment Demand Chain Management

61

 

Schedule 9

Schedule 9

Part 1

Business Intellectual Property Rights

The “Channel of Choice” trademark registered in the USA:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	MARK	 	 	SERIAL NUMBER	 	 	 	REGISTRATION NUMBER	 	 	FILING DATE	 
	CHANNEL OF CHOICE
	 	 	75917087	 	 	 	2481825	 	 	February 11, 2000

The following unregistered trademarks:

	•	 	Seeker
	 
	•	 	Vignette

Part 2

Excluded Business IPR

The following domain names:

	•	 	www.handleman.co.uk/ www.handleman.com
	 
	•	 	www.handlelynx.co.uk / www.handlelynx.com
	 
	•	 	www.workplace.handleman.co.uk / www.workplace.handleman.com
	 
	•	 	www.mobile.handleman.co.uk/ www.mobile.handleman.com

All rights vesting in the Handleman name and any of the Sellers’ name logos

All rights arising from the D3 application used by the Sellers

62

 

Schedule 10 : Warranties

Schedule 10

Warranties

		 	CAPACITY OF SELLERS
	 
	1	 	Consents
	 
	 	 	Each Seller has taken all corporate and
other actions necessary to enable it to
enter into and perform this Agreement, and
the Seller has secured all approvals and
consents (governmental or otherwise)
required for the performance of the
transactions contemplated by this Agreement.
	 
	2	 	Breaches
	 
	 	 	Neither the execution and delivery of this Agreement by the Sellers nor the transactions
contemplated by this Agreement are prohibited by, or violate any provision of and will
not result in a breach of:
	 
	(a)	 	any applicable law, rule, regulation, judgment, decree, order or other requirements of any
government, quasi-government, statutory, administrative or regulatory body, court or agency;
or
	 
	(b)	 	the memorandum or articles of association of the UK Seller or articles of incorporation of
the US Seller.
	 
	3	 	Accelerated default
	 
	 	 	Completion of the transactions contemplated by this Agreement by the Sellers will not
constitute a default or an event which, with the lapse of time or action by a third
party, could, so far as the Sellers are aware result in the creation of any Encumbrance
on any of the Assets.
	 
	 	 	CORPORATE MATTERS
	 
	4	 	Sellers’ Group
	 
	 	 	The UK Seller is a wholly owned subsidiary of the US Seller.
	 
	5	 	Possession of documents
	 
	 	 	All material deeds, agreements and other documents relating to the Assets or the
Business to which either Seller is a party or is entitled to enforce are in the
possession of the relevant Seller and have been registered with any applicable authority
with which such documents are registrable under any applicable law.
	 
	6	 	Investigations
	 
	 	 	So far as the Sellers are aware, no investigations or enquiries, by or on behalf of, a
governmental or other body in respect of any aspect of the Business are taking place or
pending.
	 
	7	 	Information disclosed to the Buyer
	 
	(a)	 	All information attached to the Disclosure Letter relating to the Business or the Assets was,
when given, and remains accurate in all material respects.

63

 

Schedule 10 : Warranties

	(b)	 	The information contained in Schedule 2 (The Property ), Schedule 3 (Employees ), Schedule
4 (Contracts ), Schedule 5 (Licences ), Schedule 6 (Motor Vehicles, Plant, US Assets and other
assets ), Schedule 7 (The Leased Assets ), Schedule 8 (Software ), Schedule 9 and Schedule
14 (Collateral Warranties ) is true, accurate and complete in all material respects.
	 
	 	 	BORROWINGS AND LENDING
	 
	(c)	 	No floating charge created by either Seller has crystallised and there are no circumstances
likely to cause such a floating charge to crystallise.
	 
	(d)	 	Neither Seller has received notice (whether formal or informal) from a lender of money,
requiring repayment or intimating the enforcement of a security which it may hold over any of
the Assets and, so far as each Seller is a aware, there is nothing likely to give rise to such
a notice.
	 
	(e)	 	The only persons holding any security over the Assets are those fairly disclosed in the
Disclosure Letter.
	 
	8	 	Creditors
	 
	 	 	Neither Seller has received any notice demanding payment or threatening to withhold
services or supplies and the aged creditor list attached to the Disclosure Letter as
document 1.8 is, as at the date of such list, complete and accurate in all material
respects.
	 
	 	 	TRADING
	 
	9	 	Changes since Accounts Date
	 
	 	 	Since the Accounts Date:
	 
	(a)	 	the Business has been continued in the usual course; and
	 
	(b)	 	neither Seller has, in relation to the Business, disposed of any Assets or assumed or
incurred any outstanding capital commitment or any material liabilities (whether actual or
contingent) otherwise than in the ordinary course of business.
	 
	10	 	Effect of sale of the Business
	 
	(a)	 	Since the Accounts Date, neither Seller has received notification that the Business will lose
the benefit of any material right which it enjoys.
	 
	(b)	 	So far as each Seller is aware, the transactions contemplated by this Agreement will not
result in loss of business with any of the Business’ present sources of supply.
	 
	11	 	Conduct of the Business
	 
	(a)	 	The US Seller has no interest in the Business save by virtue of its ownership of shares in
the UK Seller and of the US Assets.
	 
	(b)	 	The UK Seller has carried on the Business in accordance with its memorandum and articles of
association.

64

 

Schedule 10 : Warranties

	12	 	Joint ventures and partnerships
	 
	 	 	Neither Seller:
	 
	(a)	 	is , and nor has it been, a party to a joint venture or consortium or partnership, or to an
agreement or arrangement for sharing commissions or other income relating to the Business;
	 
	(b)	 	conducts, and nor has it conducted, a part of the Business through a branch, agency or
permanent establishment outside the United Kingdom; and
	 
	(c)	 	is a member of a partnership, trade association, society or other group, whether formal or
informal and whether or not having a separate legal identity, in connection with the Business,
and no such body is relevant to or has a material influence over the Business.
	 
	13	 	Agreements concerning the Business
	 
	(a)	 	Save as referred to in this Agreement, there are no agreements or arrangements between either
Seller and a person who is a shareholder, or the beneficial owner of an interest, in it, or in
a company in which either Seller is interested, relating to:

	 	(i)	 	the management of the Business;
	 
	 	(ii)	 	the ownership, transfer of ownership or letting of the Assets;
	 
	 	(iii)	 	the provision, supply or purchase of finance, goods, services or other
facilities to, by or from the Seller; or
	 
	 	(iv)	 	otherwise relating to the Business or the Assets.

	(b)	 	Save for the Distribution Agreement, neither Seller is a party to an agency, distributorship,
marketing, purchasing, manufacturing or licensing agreement or arrangement, or a restrictive
agreement or arrangement which restricts its freedom to carry on the Business or to use or
exploit the Assets.
	 
	14	 	Trading and competition law issues
	 
	(a)	 	In relation to the Business, so far as the Sellers are aware the Sellers are not (nor has
either of them been) a party to an agreement or business practice which contravenes or so far
as the Sellers are aware would, result in enforcement action being taken under applicable
Trading or Competition Laws (provided that no such warranty is given in respect of any action
taken at the direction of the Buyer).
	 
	15	 	Litigation, disputes and winding up
	 
	(a)	 	Neither Seller is engaged in any dispute or litigation or arbitration proceedings and so far
as the Sellers are aware there are no such proceedings pending or threatened, either by or
against either Seller affecting the Business; and so far as the Sellers are aware there is
nothing which is likely to give rise to litigation or arbitration.
	 
	(b)	 	No receiver or administrative receiver has been appointed over the whole or any part of the
Assets or the Business, nor is either Seller the subject of an application to the court for an
administration order, a notice of appointment of an administrator, a notice of intention to
appoint an administrator or has an administrator appointed over it.

65

 

Schedule 10 : Warranties

	(c)	 	No petition has been presented, no order has been made and no resolution has been passed for
the winding up of either Seller or for the appointment of a liquidator or provisional
liquidator of either Seller.
	 
	(d)	 	No voluntary arrangement has been proposed or is in force under part 1 of the Insolvency Act
1986 in respect of the UK Seller or any analogous provisions in respect of the US Seller.
	 
	(e)	 	No compromise or arrangement has been proposed, agreed to or sanctioned in respect of either
Seller.
	 
	(f)	 	Neither Seller has stopped payment of its creditors generally nor is the UK Seller insolvent
or unable to pay its debts as and when they fall due within the meaning of section 123 of the
Insolvency Act 1986 nor is the US Seller so unable under any analogous provisions in US law.
	 
	(g)	 	The UK Seller confirms that it will not be unable to pay its debts (within the meaning of
section 123 of the Insolvency Act 1986) immediately after or as a consequence of Completion
and the US Seller confirms that it will not, as a result of Completion, be so unable under any
analogous provisions in US law.
	 
	16	 	Licences and consents
	 
	(a)	 	The Sellers have disclosed to the Buyer copies of all of the licences and consents obtained
by the Sellers and they have all such licences and consents as are required to carry on the
Business and so far as the Sellers are aware:

	 	(i)	 	all the licences and consents are valid and subsisting;
	 
	 	(ii)	 	neither Seller is in breach of any of them; and
	 
	 	(iii)	 	there is nothing that might prejudice their continuation or renewal in
the places and in the manner in which the Business is now carried on.

	 	 	This warranty 16 does not refer to licences with regard to Intellectual Property Rights.
	 
	17	 	Data Protection
	 
	(a)	 	So far as the UK Seller is aware, it is compliant in all material respects with all
applicable UK data protection laws and it has taken relevant steps to achieve compliance with
the Data Protection Act 1998 and the UK Seller has not received a notice or allegation from
either the Information Commissioner or a data subject alleging non-compliance with applicable
UK data protection legislation.
	 
	 	 	CONTRACTS AND ARRANGEMENTS
	 
	18	 	General
	 
	(a)	 	The Business Contracts are valid and subsisting and so far as the Sellers are aware
enforceable in accordance with their terms and, together with the Excluded Business Contracts,
constitute all the contracts and other engagements, whether written or oral, referable to the
Business to which either Seller is a party (other than contracts of the Employees) and the
Business Contracts (copies of which have been fairly disclosed to the Buyer) are true,
accurate and complete in all respects and full particulars of any material amendments to them,
whether written or oral, have been notified to the Buyer in writing.

66

 

Schedule 10 : Warranties

	(b)	 	So far as the Sellers are aware, no party to any of the Business Contracts will or is likely
to terminate or will not or is unlikely to be willing to renew any such Business Contract with
the Buyer after Completion.
	 
	19	 	Subsisting contracts

	 	(a)	 	None of the Business Contracts, to the extent not in writing and
attached to the Disclosure Letter, is of an unusual nature or outside the normal
course of the Business.
	 
	 	(b)	 	During the 12 months prior to Completion:

	 	(i)	 	there has been no material and/or persistent
interruption to the Business caused by defaults under the contract between
Parceline (a division of GeoPost UK Limited) (“Parceline”) and the UK
Seller; and
	 
	 	(ii)	 	such contract has been sufficient for the Business’
needs for parcel delivery and collection services during that period.

	20	 	Defaults under agreements
	 
	(a)	 	Neither Seller is in material default under any of the Business Contracts or, so far as
either Seller is aware, in respect of other material obligations and restrictions binding upon
it in relation to the Business, and it has not waived rights or privileges under any of them.
	 
	(b)	 	So far as the Sellers are aware no threat or claim of default under the Business Contracts
has been made and is outstanding and there is no outstanding default pursuant to which any of
the Business Contracts, may be prematurely terminated by another party, or by which the terms
may be extended without consent or worsened as against a Seller or the Buyer, or the Business
or the Assets prejudiced.
	 
	(c)	 	In relation to the Supply and Installation Agreement entered into between the UK Seller and
Knapp Logistic Automation GmbH on 1 February 2007 and any amendments thereto (the “Knapp
Supply Agreement”):

	 	(i)	 	the UK Seller is not in material default and it has not waived any
rights in relation to the Knapp Supply Agreement;
	 
	 	(ii)	 	the Acceptance Date (as defined in that agreement) has been achieved in
accordance with the Knapp Supply Agreement;
	 
	 	(iii)	 	there are no amounts outstanding or materially overdue between the UK
Seller and Knapp Logistic Automation GmbH in relation to the Knapp Supply
Agreement.

	21	 	Other party’s defaults
	 
	 	 	So far as the Sellers are aware, no party to a Business Contract is in default under it,
being a default which is material in the context of the Business; and there is nothing
likely to give rise to such a default.

67

 

Schedule 10 : Warranties

	22	 	Environmental and health and safety matters
	 
	 	 	The Business and the Sellers have, so far as the Sellers are aware, complied in all
material respects with all legislation (both primary and secondary) relating to the
protection of the environment and health and safety in the workplace (including the
Occupational Legislation).
	 
	 	 	ASSETS
	 
	23	 	Ownership
	 
	(a)	 	The Sellers own and have good and marketable title to all the Assets and none of them are
subject to any Encumbrance or third party interest, other than, in relation to the Licensed
Software Materials, the terms the licence agreements disclosed to the Buyer.
	 
	(b)	 	The Movables, Motor Vehicles and the Plant,:

	 	(i)	 	so far as the Sellers are aware, have been regularly and properly
maintained in accordance with the applicable maintenance contract and have not had
any material breakdowns in the six months prior to Completion; and
	 
	 	(ii)	 	are in the UK Seller’s possession and control and are its absolute
property, except for the Leased Assets, or in respect of which the outstanding
payments do not exceed £1,000.

	(c)	 	The Sellers have not acquired or agreed to acquire any asset on terms that the property in
such asset does not pass until full payment is made or until all indebtedness incurred in
connection with that or any other acquisition is discharged.
	 
	(d)	 	Details of all material outgoings in relation to and of any defects, breakdowns or
interruptions in the use of the Plant material to the ongoing operation of the Business in the
three months before the date of this Agreement are fairly disclosed in the Disclosure Letter.
	 
	(e)	 	No circumstance has arisen or is likely to arise in relation to any of the Leased Assets as a
result of which the rental payable has been, or is likely to be, increased and, in particular,
all the Leased Assets have at all relevant times been used for a qualifying purpose within the
meaning of section 122 of the Capital Allowances Act 2001.
	 
	(f)	 	The Assets comprise all the material assets necessary for the continuation of the Business as
presently carried on and no assets of any third party are used in the Business (other than the
Leased Assets and the Licensed Software Materials).
	 
	(g)	 	Schedule 13 (Fixed Assets Register ) contains a complete and accurate copy of the register
listing all the fixed assets used in the Business.
	 
	(h)	 	All material consents and agreements of third parties which are required for the transfer of
the Assets (other than the Business Contracts) to the Buyer have been obtained in writing and
are attached to the Disclosure Letter.

68

 

Schedule 10 : Warranties

	 	 	INSURANCES
	 
	24	 	General
	 
	(a)	 	The Business is and has at all material times been, covered in respect of employer’s
liability insurance on terms reasonably considered by the Sellers to be adequate and details
of relevant policies have been fairly disclosed to the Buyer.
	 
	(b)	 	All insurance relating to the Employees, Business or the Assets is in full force, and nothing
has been done or omitted to be done which could make any policy of insurance void or voidable,
or which is likely to result in an increase in premium.
	 
	(c)	 	No claim is outstanding under any insurance policy relating to the Business or the Assets.
	 
	 	 	INTELLECTUAL PROPERTY RIGHTS
	 
	25	 	Intellectual Property Rights
	 
	(a)	 	The Disclosure Letter lists particulars of all:

	 	(i)	 	Registered IPR owned by the Sellers; and
	 
	 	(ii)	 	Business IPR (other than Registered IPR) which is material in relation
to the Business. 

	(b)	 	The Sellers are the sole legal and beneficial owner of all the Business IPR except for
Business IPR used under licence under Inward IPR Licences. 
	 
	(c)	 	The Business IPR comprises all the Intellectual Property Rights which are necessary to enable
the Sellers to carry on the Business in the same manner and to the same extent as it has been
carried out at or prior to Completion.
	 
	(d)	 	None of the Business IPR listed in Schedule 9, Part 1 (Business Intellectual Property
Rights ), nor the rights of the Sellers in any Business IPR, will be adversely affected by
this Agreement save as fairly disclosed in the Business Contracts. The use of such Business
IPR by the Sellers is not subject to any form of royalty or other payment (including but not
limited to any form of deferred or contingent payment, but excluding any payments due under
any maintenance or support agreement in relation to such Business IPR) and so far as the
Sellers are aware there are no facts or matters under which such payments may (or will) become
payable by the Sellers save as fairly disclosed in the Business Contracts.
	 
	(e)	 	The Sellers know no reason why the “Channel of Choice” trademark listed in Schedule 9, Part
1 (Business Intellectual Property Rights ), is not valid, subsisting and enforceable. No
actions, claims, counterclaims, applications or allegations contesting the validity or
enforceability of any such Business IPR or its ownership by the Sellers have been brought or
made or so far as the Sellers are aware are pending or anticipated.
	 
	(f)	 	So far as the Sellers are aware the operation of the Business by the Sellers, have not
infringed and do not currently infringe the Intellectual Property Rights of another person.
	 
	(g)	 	There have been no actions, claims or allegations by the Sellers against any third party
alleging infringement of any Business IPR and there are and there have

69

 

Schedule 10 : Warranties

	 	 	been, as far as the Sellers are aware, no facts, matters or circumstances which could give or
which might have given rise to any such action claim or allegation.
	 
	(h)	 	The Sellers have not (otherwise than in the normal course of its business or to a prospective
bona fide purchaser subject to written obligations of confidentiality) disclosed, or permitted
to be disclosed, or undertaken or arranged to disclose, to a person other than the Buyer any
of its know-how, technical information, trade secrets, price lists or lists of customers or
suppliers or any other confidential information which relates to the Business.
	 
	(i)	 	The Disclosure Letter identifies all documents which contain all Inward IPR Licences (whether
formal or informal). In respect of each such licence:

	 	(i)	 	the licence is in full force and effect; and
	 
	 	(ii)	 	neither the Sellers nor the other party to an Inward IPR Licence has
been in breach of any material terms of the licence as far as the Sellers are
aware.

	(j)	 	The Sellers have not sold or transferred (by way of assignment or otherwise), licensed or
otherwise disposed of any Business IPR.
	 
	26	 	Information Technology
	 
	(a)	 	The material particulars of all the material contracts or arrangements in the Sellers
possession under which the IT Systems are supplied, acquired, maintained and used by the
Sellers have been disclosed to the Buyer and all such contracts or arrangements have been
complied with in all material respects (including as to payment) by the relevant Seller.
	 
	(b)	 	The IT Systems:

	 	(i)	 	have not been affected by any defects or other faults that have caused
any material interruption to the Business at any time during the 12 months prior to
the date of this Agreement; and
	 
	 	(ii)	 	are not operated or otherwise wholly dependent on, or held by, any
means which are not under the exclusive ownership or direction of the Sellers
(including all means of access); and
	 
	 	(iii)	 	are not outsourced to or otherwise administered or controlled by,
shared with, any third party.

	(c)	 	Without prejudice to any other warranty, insofar as the IT Systems, which form part of the
Assets, contain computer software that is material to the Business, all such software is
subject to fully enforceable, as at Completion, maintenance agreements.
	 
	(d)	 	All Proprietary Software is supplied with copies of the relevant source code.
	 
	(e)	 	To the extent the Sellers are aware that the IT Systems comprise Open Source Software,
details of that Open Source Software, its use in the Business and the licence under which that
Open Source Software is licensed to the Sellers are provided in the Disclosure Letter.

70

 

Schedule 10 : Warranties

	(f)	 	There have not been any material projects in relation to the IT Systems, including the
development or implementation of any material hardware or software in the last 12 months prior
to this Agreement.
	 
	(g)	 	All Internet domain names used exclusively by the Business are listed in the Disclosure
Letter.
	 
	(h)	 	There are no components of the IT Systems that are material to the Business that are not
contained within the Assets, those of the Excluded Business Contracts listed in Schedule
4, Part 2 (Excluded Business Contracts ) and the Excluded Business IPR.
	 
	(i)	 	All confidential information which does not relate to the Business which is residing on any
computer hardware or storage media which is to be transferred to the Buyer under this
Agreement, or to which the Buyer is provided access under the Transitional Services Agreement,
will prior to such transfer, be removed.
	 
	(j)	 	The Proprietary Software:

	 	(i)	 	as delivered to the Buyer by the US Seller on or shortly after
Completion (and thus excluding any changes made to the Proprietary Software by the
Buyer subsequent to Completion);
	 
	 	(ii)	 	when operated on materially the same infrastructure as it was operated
by the Sellers prior to Completion (as documented in documentation handed over to
the Buyer on Completion); and
	 
	 	(iii)	 	subject to it being maintained in materially the same manner as it has
been by the Sellers prior to Completion (as documented in documentation handed over
to the Buyer on Completion),
	 
	 	shall function in a manner that is materially the same as the operation of the
Proprietary Software by the Sellers during the six months prior to Completion. This
warranty shall not be breached to the extent any failure of operation is due to hardware
failure, data migration or the Buyer’s failure to exercise reasonable prudence in
accordance with information technology industry standards in relation to the operation
of the Proprietary Software. Furthermore, in relation to each individual line item
listed in Schedule 8Part 2, this warranty shall cease to have effect immediately upon
the Buyer undertaking any changes to the software listed in that line item subsequent to
its delivery to the Buyer. However, those changes shall not, in themselves, prejudice
this warranty in relation to any other line item listed in Schedule 8Part 2.

	 	 	EMPLOYEES
	 
	27	 	Employees and terms of employment
	 
	(a)	 	The Disclosure Letter contains the Particulars of Employment which were true, complete and
accurate in all material respects as at the date two Business Days prior to Completion.
	 
	(b)	 	The Disclosure Letter contains all material details of all private medical insurance
(including private medical insurance family cover), permanent health insurance and critical
illness and life assurance of the Sellers held since the Accounts Date.
	 
	(c)	 	There are no agreements or arrangements between either Seller or the Business and a trade
union or other body representing the Employees.

71

 

Schedule 10 : Warranties

	28	 	Bonus schemes
	 
	 	 	There are no schemes in operating entitling an Employee to a commission or remuneration
calculated by reference to the turnover or profits of the Business or either Seller or
part of the Business.
	 
	29	 	Changes in remuneration
	 
	(a)	 	Since 28 April 2008 or, where employment or holding of office began after the Accounts Date,
since the start of the employment or holding of office:

	 	(i)	 	no change has been made to the rate of remuneration, emoluments or
pension benefits of an Employee; and
	 
	 	(ii)	 	no material change has been made in the other terms of employment of an
Employee.

	(b)	 	Neither Seller is obliged or accustomed to pay anything, other than in respect of
remuneration or pension benefits, to or for the benefit of an Employee.
	 
	(c)	 	There are no negotiations for an increase in the remuneration or benefits of an Employee
which are current or pending and none are likely to begin within six months after Completion.
	 
	30	 	Termination of contracts of employment
	 
	(a)	 	The contracts of employment of the Employees to which the Business or either Seller is a
party are determinable at any time on three months’ notice or less without compensation (other
than compensation in accordance with the Employment Rights Act 1996).
	 
	(b)	 	No Employee:

	 	(i)	 	has given or been given notice terminating his employment; or
	 
	 	(ii)	 	is entitled to leave his employment or office prematurely without
giving the requisite period of notice pursuant to their contract of employment as a
result of the sale of the Business.

	31	 	Claims and liabilities
	 
	 	 	Since the Accounts Date no gratuitous payment has been made or promised by either Seller
in connection with the actual or proposed termination or suspension of employment or
variation of any contract of employment of any present or former Employee nor will any
such payment be made or promised prior to Completion.
	 
	32	 	Compliance
	 
	(a)	 	The Sellers have, so far as each of them is aware, in relation to each of the Employees
complied with:

	 	(i)	 	all material obligations imposed on it by all statutes, regulations and
codes of conduct and practice relating to or affecting the employment of the
Employees or in relation to any trade union and has maintained current, adequate
and suitable records regarding the service and terms and conditions of employment
of each of the Employees;

72

 

Schedule 10 : Warranties

	 	(ii)	 	all material customs and practices for the time being dealing with such
relations or the conditions of service of the Employees; and
	 
	 	(iii)	 	all relevant and material orders, awards and recommendations made
under any relevant statute, regulation or code of conduct and practice affecting
the conditions of service or otherwise in relation to the Employees.

	(b)	 	The Seller has complied with all relevant immigration requirements in relation to all
Employees. No Employee has limited leave to remain in the United Kingdom or is subject to any
other form of immigration control.
	 
	33	 	Share option schemes, etc
	 
	 	 	Apart from the 2001 Stock Option Plan and the 2004 Stock Plan there are no other
arrangements in existence and there are no proposals for any of the following:
	 
	(a)	 	profit sharing schemes;
	 
	(b)	 	share option schemes;
	 
	(c)	 	“phantom” share option schemes;
	 
	(d)	 	profit related pay schemes;
	 
	(e)	 	in relation to the Employees, employee share ownership trusts under the Finance Act 1989; and
	 
	(f)	 	employee benefit trusts.
	 
	 	 	PENSIONS
	 
	34	 	Pensions
	 
	(a)	 	Apart from:

	 	(i)	 	the Seller’s Pension Scheme;
	 
	 	(ii)	 	the Groupama private medical insurance; and
	 
	 	(iii)	 	the Unum Life Assurance scheme,
	 
	 	(together the “Disclosed Schemes”), neither Seller is under any legal or moral
obligation or a party to an ex-gratia arrangement, to pay pensions, gratuities,
superannuation allowances, life assurance benefits, medical or disability benefits or
the like, to or for any of the Employees or any dependant of any of them. No proposal
has been announced or promise made to establish any schemes, arrangement or practice for
the provision of such benefits.

	(b)	 	Material details of the Disclosed Schemes are attached to the Disclosure Letter.
	 
	(c)	 	All contributions and expenses due to the Disclosed Schemes from either Seller or an Employee
were paid when they fell due.
	 
	(d)	 	No undertaking or assurance has been given to any Employee or any dependant or any other
person as to the introduction, improvement or increase of any benefit under the Disclosed
Schemes.

73

 

Schedule 10 : Warranties

	(e)	 	In respect of the Disclosed Schemes there are no civil, criminal or arbitration proceedings,
claims or disputes in progress, pending or threatened relating to Employees or any person
claiming through them against either Seller, the trustees or administrators of the Disclosed
Schemes.
	 
	(f)	 	No Employee has any rights under or in connection with an occupational pension scheme which
will transfer to the Buyer pursuant to the Transfer of Undertakings (Protection of Employment)
Regulations 1981 or the Employment Regulations.
	 
	(g)	 	The amount of benefits payable to and in respect of Employees under the Disclosed Schemes
(other than insured lump sum death in service benefits) is based solely on the amount of the
accumulated contributions made by and in respect of the member and the investment returns on
them.
	 
	 	 	THE PROPERTY
	 
	35	 	Title
	 
	(a)	 	The information contained in Schedule 2, (Particulars of the Property ) is true and accurate
and is complete in all material respects.
	 
	(b)	 	The Sellers are the sole legal and beneficial owners of the Property.
	 
	(c)	 	The Sellers occupy the Property for the purposes of the Business.
	 
	36	 	Planning matters
	 
	(a)	 	The Sellers have not received any notice of breach and are not aware of any breach by either
Seller of any of the following matters:

	 	(i)	 	the terms of any planning permissions relating to the Property;
	 
	 	(ii)	 	the provisions of any legal agreement relating to the Property which is
entered into pursuant to:

	 	(A)	 	the Planning Acts;
	 
	 	(B)	 	the Highways Act 1980;
	 
	 	(C)	 	the Water Industry Act 1991;
	 
	 	(D)	 	the Local Government Act 1972; or
	 
	 	(E)	 	or any predecessor statute to any of them.

	(b)	 	The Sellers have not received any notice of breach and is not aware of any breach of the
either Seller of building regulations in relation to the Property.
	 
	(c)	 	All claims and liabilities under the Planning Acts or other legislation have been discharged,
and no claim or liability, contingent or otherwise, is outstanding.

74

 

Schedule 11 : Taxation Warranties

Schedule 11

Taxation Warranties

	1	 	Tax returns, disputes, records and claims
	 
	(a)	 	There is no dispute or disagreement outstanding nor is any contemplated at the date of this
Agreement with any Tax Authority regarding the proper method of computing the profits of the
Business (or any part of it) for Tax purposes or the proper treatment for VAT purposes of any
supplies of goods or services made (or treated as made) in the course of the Business and
there are no circumstances which make it likely that any such dispute or disagreement will
arise.
	 
	(b)	 	The Tax treatment of the Business has not, to any material extent, depended on any concession
by a Tax Authority (other than a formal published extra statutory concession generally
available to taxpayers), agreement, or, other formal or informal arrangement with any Tax
Authority.
	 
	(c)	 	The UK Seller has duly deducted all amounts which it has been obliged to deduct under the
PAYE System and the NIC System and has duly accounted for all such amounts and has made all
such deductions as required from all payments made, or treated as made, to its Employees or
former employees (including persons treated as receiving emoluments of office or employment)
and has duly accounted to the relevant Tax Authority for all amounts required to be deducted
from all payments to and benefits provided for, all such persons and has complied in all other
respects with the PAYE system and the NIC system.
	 
	(d)	 	The US Seller has duly deducted all amounts which it has been obliged to deduct under the
applicable taxation system in the US and has duly accounted for all such amounts and has made
all such deductions as required from all payments made, or treated as made, to the US
Employees or former employees (including persons treated as receiving emoluments of office or
employment) and has duly accounted to the relevant Tax Authority for all amounts required to
be deducted from all payments to and benefits provided for, all such persons.
	 
	(e)	 	All customs and excise duties in respect of any or any part of the Assets for which either
Seller is or has been liable have been paid in full and none of the Assets is liable to
confiscation or forfeiture by virtue of non-payment or under-payment of any customs duty or
excise duty or any failure to comply with any legislation or regulation relating to any such
duty.
	 
	2	 	Tax Authorities
	 
	 	 	The United Kingdom is the only country whose Tax Authorities seek to charge tax on the
profits or gains of either Seller in respect of the Business and neither Seller has ever
paid or been liable to pay Tax on income profits or gains in respect of the Business to
any Tax Authority in any other country.
	 
	3	 	Stamp duties
	 
	(a)	 	All documents which affect the right, title or interest of either Seller to the Business or
the Assets or to which either Seller is a party or in the enforcement of which it is otherwise
interested, are or have been duly stamped within the requisite period for stamping.
	 
	(b)	 	Paragraph 11 and 12 of schedule 17A of the Finance Act 2003 do not apply to the assignment of
the lease of the Property pursuant to this Agreement.

75

 

Schedule 11 : Taxation Warranties

	4	 	VAT
	 
	(a)	 	The UK Seller has complied in all respects with the statutory requirements, orders,
provisions, directions and conditions relating to VAT, and maintains complete, correct and
up-to-date records for the purposes of the relevant legislation.
	 
	(b)	 	None of the Assets fall within the provisions of part XV of the VAT Regulations.
	 
	5	 	Capital allowances
	 
	(a)	 	None of the Assets which is or which includes items of machinery or plant which are the
subject of the sale pursuant to this Agreement has been the subject of a sale and finance
leaseback within the meaning of section 221 of the Capital Allowances Act 2001 prior to the
date of this Agreement.
	 
	(b)	 	None of the Assets qualifies as a long-life asset for the purposes of chapter 10 part 2 of
the Capital Allowance Act 2001.

76

 

Schedule 12 : Seller’s protection provisions

Schedule 12

Seller’s protection provisions

	1	 	Definitions
	 
	 	 	In addition to the definitions in Clause 1 (Definitions and interpretation ), in this
Schedule 12 (Seller’s protection provisions ):
	 
	 	 	“Expiry Date” means 12 months after Completion.
	 
	 	 	“Warranty Claim” means a claim by the Buyer under Clause 13.1.
	 
	2	 	Introduction
	 
	 	 	Nothing in this Schedule 12 (Seller’s protection provisions ) limits the liability of
either Seller in the case of fraud or wilful or dishonest concealment or non-disclosure
by that Seller prior to Completion.
	 
	3	 	Limitations
	 
	(a)	 	A Seller shall not be liable in respect of a Warranty Claim to the extent that:

	 	(i)	 	it occurs or is increased as a result of legislation not in force at
the date of this Agreement or any change after the date of this Agreement to
legislation in force at the date of this Agreement, in either case whether or not
the same takes effect retrospectively;
	 
	 	(ii)	 	it occurs or is increased as a result of a change in generally accepted
accounting practices after Completion whether or not the same takes effect
retrospectively; or
	 
	 	(iii)	 	it would not have arisen but for a breach by the Buyer of its
obligations under this Agreement or any document entered into pursuant to it.

	(b)	 	Payment of any Warranty Claim shall to the extent of such payment satisfy and preclude any
further or other claim which is capable of being made in respect of the same subject matter
whether under the Warranties or any other provisions of this Agreement.
	 
	4	 	Threshold for Claims
	 
	(a)	 	Subject to paragraph 4(b) below, the Sellers shall not be liable in respect of any claims
until the aggregate amount exceeds £250,000, in which case the Sellers shall be liable for the
whole amount of all claims and not merely the excess over £250,000.
	 
	(b)	 	Notwithstanding paragraph 4(a) above, the Sellers shall be liable for:

	 	(i)	 	a claim under this Agreement or the Transitional Services Agreement if
that claim by itself exceeds £75,000; and
	 
	 	(ii)	 	any claims under this Agreement and the Transitional Services Agreement
which arise as a result of the same or similar circumstances when the aggregate of
those claims exceed £75,000,

77

 

Schedule 12 : Seller’s protection provisions

	in which case the Sellers will be liable for the full amount of any such claim or claims  and such
claims shall be deemed to count towards the aggregate amount referred to in clause 4(a).
	 
	5	 	Ceiling on Warranty Claims
	 
	 	 	The aggregate liability of the Sellers to make payment to the Buyer in respect of all
claims under this Agreement and the Transitional Services Agreement shall not exceed
£4,700,000.
	 
	6	 	Time limits
	 
	(a)	 	Subject to paragraph 6(c) proceedings in relation to any claim under this Agreement or the
Transitional Services Agreement shall not be brought against a Seller unless written notice of
the claim, giving reasonable details of the claim is given to that Seller before the Expiry
Date.
	 
	(b)	 	Subject to paragraph 6(c) if a claim under this agreement has not been resolved on or before
six months from the date of receipt of written notice of the claim in accordance with
paragraph 6(a) and the Buyer has not by then issued and served legal proceedings in respect of
the claim, the claim shall be deemed withdrawn by the Buyer.
	 
	(c)	 	The provisions of paragraph 6(a) and paragraph 6(b) do not apply in respect of claims to the
extent that delay in recovery or process is the consequence of fraud or wilful or dishonest
concealment by either Seller.
	 
	7	 	Protection of goodwill
	 
	 	 	Nothing in this Schedule 12 (Seller’s protection provisions ) imposes an obligation on a
member of the Buyer’s Group to do anything which in the Buyer’s reasonable opinion is
likely to be detrimental on the prospects, reputation or goodwill of the Buyer or a
member of the Buyer’s Group or the Business or would have a material adverse effect on
the Buyer or a member of the Buyer’s Group or the Business.
	 
	8	 	Third Party Recoveries
	 
	(a)	 	The Sellers shall not be liable under the Warranties in respect of any Warranty Claim:

	 	(i)	 	to the extent that recovery is actually made by the Buyer or any member
of the Buyer’s Group under any policy of insurance in which case the Buyer may
claim any excess and any increase in the premium in the following year of
insurance; or
	 
	 	(ii)	 	to the extent that the Buyer or any member of the Buyer’s Group or
those deriving title from the Buyer have already obtained reimbursement or
restitution in respect of such claim from any third party.

	(b)	 	If either of the Sellers pay to the Buyer an amount in respect of any Warranty Claim and the
Buyer or any member of the Buyer’s Group subsequently recovers from a third party (including,
without limitation, any insurer or any tax authority) a sum which is referable to that claim,
the Buyer shall repay to the relevant Seller so much of the amount originally paid by that
Seller as does not exceed the sum recovered from the third party after deduction of all
reasonable costs and expenses of recovery and after deducting a sum equal to any excess
payable and any increase in the relevant insurance premium in the following year of insurance.

78

 

Schedule 12 : Seller’s protection provisions

	9	 	Acts of the Buyer
	 
	 	 	The Sellers shall not be liable in respect of any Warranty Claim:
	 
	(a)	 	to the extent that the Buyer had actual knowledge of the facts, matters or circumstances
giving rise to such claim at or before Completion;
	 
	(b)	 	to the extent that such claim would not have arisen but for any transaction, arrangement, act
or omission (or any combination of the same) carried out or effected at any time after
Completion by the Buyer or any member of the Buyer’s Group:

	 	(i)	 	outside the ordinary course of its business; or
	 
	 	(ii)	 	in any other case, if the Buyer or relevant member of the Buyer’s
Group, as the case may be, knew or should reasonably have known that it would give
rise to such a claim; or

	(c)	 	to the extent that such Warranty Claim is attributable to or is increased by any voluntary
act, omission, transaction or arrangement carried out by, at the request of or with the prior
written consent of, the Buyer before Completion.
	 
	10	 	Accounting
	 
	 	 	The Sellers shall not be liable in respect of any Warranty Claim:
	 
	(a)	 	to the extent that full and proper provision for the matter giving rise to the Warranty Claim
has been made and specifically noted in the Audited Accounts or to the extent adjustment is
made to the Consideration pursuant to Clause 9 (Apportionments ); or
	 
	(b)	 	to the extent that the Warranty Claim would not have arisen but for any changes in accounting
policy or practice of or affecting the Business where such changes are introduced after
Completion.
	 
	11	 	General Limitations
	 
	(a)	 	The Sellers shall not be liable in respect of any claim:

	 	(i)	 	which is based upon a liability which, at the time such claim is
notified to the relevant Seller, is contingent only or otherwise not capable of
being quantified unless and until such liability ceases to be contingent or becomes
capable of being quantified. Subject to such claim being notified to the relevant
Seller within the time limits specified in paragraph 6(a), the time limit for
issuing and serving proceedings for the purposes of paragraph 6(b) shall begin on
the date on which such liability ceases to be contingent or becomes capable of
being quantified;
	 
	 	(ii)	 	which is capable of remedy, unless and until the Buyer has given the
relevant Seller not less than 20 Business Days’ written notice within which to
remedy such breach and the Seller has failed to do so within such period;
	 
	 	(iii)	 	to the extent that the subject matter of the claim relates to the fact
that the Business has lost goodwill or possible business after Completion.

79

 

Schedule 12 : Seller’s protection provisions

	12	 	Mitigation by the Buyer
	 
	 	 	Nothing in this agreement shall relieve the Buyer of any common law or other duty to
mitigate any loss, liability or damage suffered or incurred by it.
	 
	13	 	Conduct of Claims
	 
	(a)	 	If the Buyer becomes aware of any fact, matter or circumstance which in its opinion will give
rise to a claim under this Agreement, the Buyer shall:

	 	(i)	 	give notice of such fact, matter or circumstance to the relevant Seller
as soon as reasonably practicable and in any event within ten Business Days of
becoming aware of any such fact, matter or circumstance and that such fact, matter
or circumstance will give rise to a claim;
	 
	 	(ii)	 	keep the Seller regularly informed as to the progress of any such
claim;
	 
	 	(iii)	 	subject to the Buyer and the relevant member of the Buyer’s Group
being entitled to employ its own legal advisers and being indemnified and secured
to its reasonable satisfaction by the relevant Seller against all liabilities,
costs, expenses, damages and losses suffered or incurred in connection with any
such claim, take, and shall procure (to the extent that it is reasonably able to)
that each member of the Buyer’s Group shall take, all reasonable steps so as to
recover or minimise or resolve such liability or dispute;
	 
	 	not (and shall procure that no member of the Buyer’s Group shall) accept or pay or
compromise any such liability or claim without prior consultation with the relevant
Seller. Tesco shall act reasonably in regard to the Sellers submissions during any
consultation relating to third party claims.

80

 

Schedule 13 : Fixed Assets Register

Schedule 13

Fixed Assets Register

Part 1

	1	 	Computers

IBM Query Manager and SQL development Kit

Intelligent Patch Cord, cable ties, cable tidy, fused plug-top Metre angle power lead

Shielded Patchleads

191 x Nokia Handsets

Exchange Server Ent 2007

Exchange Standard CAL

SYMC Ghost Solutions Suite

HP DC7600 x 50 Hanns 17” monitors x 95, Hanns 19” monitors x 5

Telephone switch and networking Equipment

HP10642 G1/G2 Front Door

Direct Patch 12.2m Patch Cord

Telephone switch and networking Equipment

Wireless Switches, hardware

4 bay Battery charger

HP Tape Library

USB Barcode Scanner Kit and 5 x N70 handsets HP Laser printer & 3 year onsite warranty

23 HP Laptops, batteries, cables, modem and printer

Telephone switch and networking Equipment

HP Colour Laser

2 x HP nx6325 Laptop

Vault on line client/back bone open file manager

HP DC7700 desktop and 17” L1706 monitor

HP DC7700 desktop and 17” L1706 monitor

HP DC7700 desktop and 17” L1706 monitor

81

 

Schedule 13 : Fixed Assets Register

HP DC7700 desktop and 17” L1706 monitor

40 x Symbol Scanners

14 X 1266 Laser BT Wireless Scanner & Power supplies

100 x System Mgmt Config Lic 2003 & Svr Ent Ed 2003

Printer Photocopier

Printer Photocopier

Printer Photocopier

Printer Photocopier

Printer Photocopier

Printer Photocopier

HP Laptop

Laptop, Ram and Battery

HP 1022N Printer

HP 1022N Printer

HP 1022N Printer

HP 1022N Printer

HP 1022N Printer

10 HP Smart AdaptoroCable, adaptor, Msoft Windows

Server rack and memory

7 x HP Desktop, Monitor and Nortel Phone

15 x Sim free Nokia N70

5 x Laptop, printer, charger kit and IPAQ

Microsoft Office various

HP U320 SCSI

HP 470ON Colour Laser

7 Windows 2003 Std Server Licence

3 Microsoft Office XP Standard

Kingston 1GB DDR-RAM for HP

Back-up recovery and media services. Media and storage extensions

82

 

Schedule 13 : Fixed Assets Register

5 x HP Laserjet 1022N & 3 year NBD Carepaq

Asset marking labels

Thermal labels various

4 x HP Laserjet 1022N Printer and scanner

3 x Sato 408e printer and serial interface

Wristrnount terminals, batteries and chargers

Payslip Printer

Oracle Hardware

60 x DELL AXIM PDA’S

60 Socket scan guns

GB LT02 Tape Drive

3 yr Warranty on 217 PDAs

3 Yr Warranty on 217 Printers

HP DL3804 Rck Server X3.4

1266 Laser BT Wireless Scanner with Charger (BT60CR)

213 Cannon IP Printers + Batt + Bluetooth Adaptors + warranty

4 Cannon IP Printers

90 PSA IPAQ HX2190 Batteries, 2 HP IPAQ Car Chargers

35 PSA IPAQ HX2190 Batteries, 217 Memory cards, 215 HP IPAQ Car Chargers,

DL380 G4 Rack Server, processors, power supply, fan kit

Tally T6212 Printer 1200 Lines Per Minute

15 LS2208 USB Scanners, 9 HP 1022 A4 USB Printers, 2 HP Printer/Fax/Scanner

25 HP NC6120 Laptops, Cases, Printers & Bluetooth adaptors

Fluke Etherscope S2 Pro

IBM System, memory, maintenance

100 Canon BU-10 bluetooth adaptor units

1 x Riello MDT3000 30kVA UPS and ancillaries

217 Laser BT Wireless Scanner with Charger & power supp

30 Nokia N79 Sim Free Mobile phones

83

 

Schedule 13 : Fixed Assets Register

770 Nokia 6630 Sim Free Mobile phones

90 Sony LT03 tapes, licenses and ancillaries

HP Equipment re: TESCO IT Infrastructure

HP Equipment re: TESCO IT Infrastructure

13 Cables re: TESCO IT infrastructure

10 Cat5E X/over Booted — Black

HP 1280 Deskjet A3/A4 Printer

HP Equipment re: TESCO IT Infrastructure

HP Equipment re: TESCO IT Infrastructure

F5 Firepass 4110 Failover Unit

Bakbone Plugin licenses and support

IBM equipment

5 x HP PC’s and monitors

15 x HP DC5100 SFF PC, monitor & carepack

Meter angle power lead

Installation of IT infrastructure

Supply and installation of power and network services to Tesco-off-line shipping

Supply and installation of power and network for Tesco-off-line shipping

Installation of additional sockets

	2	 	Fixtures and Fittings

Flooring in canteen

2 x shelving, 2 x Filing cabinet & 4 x chairs

15 x White boards

66 x Lockers

5 x Tub chairs

Desks, Drawers, cupboards, chairs

20 x 4 seater diner unit

Filing Cabinets, desks and chairs

Desk screen, Reception chair & table

84

 

Schedule 13 : Fixed Assets Register

Coffee Table

Fire extinguishers, signs and blankets

2 x Key Cabintes

3 x Filing cabinets

3 x Leather Face Chair

3 x Deluxe FS Screen Straight Screen

3 x Annandale HL Rect Desk, 1 4 shelf cupboard

Security Fence around lockers

Electricity supply upgrade

	3	 	Tenants Additions

Fit Out Big Sam Warehouse

Installation of network infrastructure

Additional network and containment requirements electricity supply upgrade

Fit Out Big Sam Warehouse amenities block construction

Safety barriers and fencing

Fire sprinkler protection system

Installation of air conditioning unit

Daikin Wall mount air conditioning unit

Fire Suppression system

Airedale Close Cont System

Electricity supply upgrade

	4	 	Plant and Machinery

Pallet racking

6 pump trucks

Automated CD Dispenser modules

Plastic shredder and cardboard compactor

Granulator, compactor baler

20 Hand Pallet Trucks

PEEM parts for A-Frames

85

 

Schedule 13 : Fixed Assets Register

Steel Shelving Bays 50%

Steel shelving bays 50%

Hand pallet truck

1 UAV star sorter

Racking at Big Sam

Compressor Equipment for Big Sam

Pallet Wrapper

Reach Truck

20 x Pump Truck

Automated Sorter

20 x Dell PDA

20 x bar code laser scanner and socket card

33 x Canon portable laptop printer 4800DPI

37 x Targus Rolling Laptop Cases

75 x Nokia Mobile Phones

1 x Nokia 6330 Phone

45 x Nokia 6630 Mobile Phones

10 x Nokia 6630 mobile phones

149 x Nokia 6630

37 x Compaq Laptop Centrino 1.6

COMPAQ G3 HOT PLUGGABLE POWER SUPPLY MODULE

6 X 145.6GB PLUGGABLE ULTRA320 SCSI 10000 PRM

SMART ARRAY RAID CONTROLLER

INTERGRATED LIGHTS OUT ADVANCED PACK

HP PROLIANT ML370 G3 RO3/XE

1GB DDR RAM FOR DL380

6 X 145.6GB PLUGGABLE ULTRA320

PROCESSOR UPGRADE 1X INTEL XEON 3.2GHZ

COMPAQ SMART ARRAY 6402 RAID CONTROLLER

86

 

Schedule 13 : Fixed Assets Register

HP REDUNDANT NC7771 10/100/1000T NIC

COMPAQ REDUNDANT FAN

REDUNDANT POWER SUPPLY

INTERGRATED LIGHTS OUT ADVANCED PACK

1GB DDR RAM FOR DL380

HP REDUNDANT NC7771 10/100/1000T NIC

REDUNDANT POWER SUPPLY

COMPAQ REDUNDANT FAN

4X145.6GB PLUGGABLE ULTRA320SCSI 1000 PRIM

COMPAQ SMRT ARREY 6402 RIAD CONTROLLER

F5 Firepass Remote Access Appliance (100 users)

6 x HP DC7600 workstation

HP PROLIANT ML370 G3 R03

2 x HP Proliant ML370

DL380 RACK VERSION 2.8GHZ INTEL XEON

COMPAQ BATTERY BACKED WRITE CACHE KIT

PROLIANT DL380 G3 HOT PLUG REDUNDANT FAN KIT

COMPAQ G3 HOT PLUGGABLE POWER SUPPLY MODULE

ADDITIONAL 512MB RAM

INTERGRATED LIGHTS OUT ADVANCED PACK

2X 18 2GB PLUGGABLE ULTRA320 SCSI

3X 36.4 GB PLUGGABLE ULTRA320 SCSI

	5	 	Servers

US

HDLLH002

Roch-DC1

Roch-VC1

Cisco-4506 Switch

Cisco-6509 Switch

87

 

Schedule 13 : Fixed Assets Register

Cisco-3560 Switch

Cisco-3745 Router

Cisco-2811 Router

Cisco-7204 Router

Cisco 3745 Router

UKWLRS1L02 (ProLiant ML370 G5) — SQL Server

UKWLRSQL01 (ProLiant ML370 G3) — SQL Server

UKWLRSTS01 (Proliant ML380 G3) — Terminal Server

UKBWGSTS01 (ProLiant ML370 G3) — Standby Terminal Server

UKBWGSES02 — Exchange Server

F5 Remote Access Network Appliances

WatchGuard Firewall Network Appliance

88

 

Schedule 14 : Collateral Warranties

Schedule 14

Collateral Warranties

	 	 	 	 	 	 	 
	No	 	Date	 	Description	 	Parties
	 
	 	 	 	 	 	 
	 	 	Collateral warranty of contractor
	 
	 	 	 	 	 	 
	1

	 	11/10/2006
	 	Warranty of contractor to
tenant collateral to a
building contract
	 	Bowmer & Kirkland Limited (1)

Handleman UK Limited (2)
	 
	 	 	 	 	 	 
	 	 	Collateral warranties of consultants
	 
	 	 	 	 	 	 
	2

	 	11/10/2006
	 	Warranty of architect to tenant
	 	Burks Green & Partners Limited (1)

Handleman UK Limited (2)
	 
	 	 	 	 	 	 
	3

	 	11/10/2006
	 	Warranty of consulting
engineer to tenant
	 	Burks Green & Partners Limited (1)

Handleman UK Limited (2)
	 
	 	 	 	 	 	 
	4

	 	11/10/2006
	 	Warranty of building services
engineer to tenant
	 	Couch Perry & Wilkes LLP (1)

Handleman UK Limited (2)
	 
	 	 	 	 	 	 
	5

	 	11/10/2006
	 	Warranty of employer’s agent
to tenant
	 	Manly Project Services Limited (1)

Handleman UK Limited (2)
	 
	 	 	 	 	 	 
	6

	 	11/10/2006
	 	Deed collateral to terms of
engagement of environmental
and geotechnical consultant
	 	Environ UK Limited (1)

Handleman UK Limited (2)
	 
	 	 	 	 	 	 
	 	 	Collateral warranties of sub-contractors
	 
	 	 	 	 	 	 
	7

	 	11/10/2006
	 	Warranty of roof and wall
cladding sub-contractor to
tenant
	 	Yorkshire Sheeting and Insulation
Services Limited (1) 

Handleman UK Limited (2)
	 
	 	 	 	 	 	 
	8

	 	11/10/2006
	 	Warranty of structural
steelwork sub-contractor to
tenant
	 	Atlas Ward Structures Limited (1)

Handleman UK Limited (2)
	 
	 	 	 	 	 	 
	9

	 	11/10/2006
	 	Warranty of mechanical and
electrical sub-contractor to
tenant
	 	W H Good Limited (1)

Handleman UK Limited (2)
	 
	 	 	 	 	 	 
	10

	 	11/10/2006
	 	Warranty of pre-cast concrete
floor sub-contractor to tenant
	 	Bison Concrete Products Limited (1)

Handleman UK Limited (2)

89

 

Schedule 14 : Collateral Warranties

	 	 	 	 	 	 	 
	No	 	Date	 	Description	 	Parties
	 
	 	 	 	 	 	 
	11

	 	11/10/2006
	 	Warranty of windows and
curtain walling sub-contractor
to tenant
	 	Dortech Architectural Systems Limited (1)

Handleman UK Limited (2)
	 
	 	 	 	 	 	 
	12

	 	11/10/2006
	 	Warranty of pre-cast concrete
ground beams sub-contractor to
tenant
	 	Roger Bullivant Limited (1)

Handleman UK Limited (2)
	 
	 	 	 	 	 	 
	13

	 	11/10/2006
	 	Warranty of piling and ground
improvement works
sub-contractor to tenant
	 	Roger Bullivant Limited (1)

Handleman UK Limited (2)
	 
	 	 	 	 	 	 
	14

	 	11/10/2006
	 	Warranty of symphonic drainage
sub-contractor to tenant
	 	Aquaphonix Limited(1)

Handleman UK Limited (2)
	 
	 	 	 	 	 	 
	15

	 	11/10/2006
	 	Warranty of smoke vents
sub-contractor to tenant
	 	Cosaf Environments Limited (1)

Handleman UK Limited (2)
	 
	 	 	 	 	 	 
	16

	 	11/10/2006
	 	Warranty of floor slab
sub-contractor to tenant
	 	Snowden Flooring Limited (1)

Handleman UK Limited (2)
	 
	 	 	 	 	 	 
	17

	 	18/10/2006
	 	Warranty of lift installation
sub-contractor to tenant
	 	Schindler Limited (1)

Handleman UK Limited (2)
	 
	 	 	 	 	 	 
	 	 	Collateral warranty of sub-contractor’s sub-consultant
	 
	 	 	 	 	 	 
	18

	 	11/10/2006
	 	Warranty of floor slab
designer (appointed by Snowden
Flooring Limited) to tenant
	 	George Hutchison Associates Limited (1)

Handleman UK Limited (2)

90

 

Schedule 15 : Schedule 15

Schedule 15

Apportionments and adjustments

Part 1

Anticipated apportionments

	 	 	 	 	 	 	 	 	 
	Description	 	Amount due 
from Sellers (£)	 	Amount due 
from Buyer (£)
	Holiday Pay Accrual
	 	 	0 for post-May 2008	 	 	 	Nil	 
	Rent on Property
	 	 	Nil	 	 	 	66,923	 
	Rates and services
	 	 	Nil	 	 	 	Nil	 
	Royalties
	 	 	Nil	 	 	 	Nil	 
	Payments under
rental agreements
	 	 	Nil	 	 	 	1,879	 
	Salaries/Wages
	 	 	Nil	 	 	 	Nil	 
	National Insurance
	 	 	Nil	 	 	 	Nil	 
	Pension Contributions
	 	 	Nil	 	 	 	Nil	 
	Prepayments
	 	 	Nil	 	 	 	89,605	 
	Non-Directs
	 	 	490,686	 	 	 	Nil	 
	US prepaid IT
Hardware Lease
rentals
	 	 	Nil	 	 	 	116,202	 
	Uncollected
marketing/ marked
down payments
	 	 	Nil	 	 	 	72,367	 
	Net Anticipated
Apportionment
	 	 	143,710	 	 	 	Nil	 

91

 

Schedule 15:

Apportionments and adjustments

Schedule 15

Part 2

Agreed adjustments

	 	 	 	 	 	 	 	 	 
	Description	 	Amount due 
from Sellers (£)	 	Amount due 
from Buyer (£)
	Holiday Pay Accrual
	 	 	20,000 for pre-May 2008	 	 	 	Nil	 
	Retention bonuses
	 	 	65,680	 	 	 	Nil	 
	Spares for Sortation
Equipment
	 	 	Nil	 	 	 	40,000	 
	Redundancy costs
	 	 	8,175	 	 	 	Nil	 
	Marketing/ marked
down repayments
	 	 	Nil	 	 	 	33,155	 
	Net Agreed Adjustments
	 	 	20,700	 	 	 	Nil	 

92

 

EXECUTION PAGE

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	)	 	 	 
	 

	 	 	 	 	)	 	 	 
	Signed by

	 	 
	 	 	)	 	 	 
	 

	 	(PLEASE PRINT NAME)
	 	 	)	 	 	 
	 

	 	 	 	 	)	 	 	 
	on behalf of Handleman UK Limited	 	 	)	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Director
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	)	 	 	 
	 

	 	 	 	 	)	 	 	 
	Signed by

	 	 
	 	 	)	 	 	 
	 

	 	(PLEASE PRINT NAME)
	 	 	)	 	 	 
	 

	 	 	 	 	)	 	 	 
	on behalf of Handleman Company Inc	 	 	)	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Director
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	)	 	 	 
	 

	 	 	 	 	)	 	 	 
	Signed by

	 	 	 	 	 	 	 	 
	 

	 	(PLEASE PRINT NAME)	 	 	 	 	 	 
	on behalf of Oakwood Distribution Limited	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Director
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Director/Secretary

93

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]