Document:

SLH Exhibit - 10.2 CAP Purchase Agreement

	
		
	 

	Dated  20 November 2014

	CAP GROUP S.À R.L.
and
THE MANAGEMENT SELLERS
and
THE INSTITUTIONAL INVESTORS
and
HPI HOLDING LIMITED

	SALE AND PURCHASE AGREEMENT 
relating to the sale and purchase of the whole of the issued share capital of 
PM Guernsey Limited

 

	 
	 

	 
	 

	Linklaters LLP
One Silk Street
London EC2Y 8HQ
	 

	Telephone (+44) 20 7456 2000
	 

	Facsimile (+44) 20 7456 2222
	 

	 
	 

	Ref: L-227342
	 

Table of Contents
Contents    Page
1    Interpretation    1
2    Sale and Purchase of the Shares    9
3    Consideration    10
4    Closing    11
5    Leakage    13
6    The Sellers’ and Institutional Investors’ Warranties    15
7    Limitation of Sellers’ Liability    17
8    Purchaser’s Warranties    19
9    Restrictive Covenant    20
10    Confidentiality and Announcements    22
11    Termination of Existing Agreements    24
12    Appointment of Management Sellers’ Representative    24
13    Other Provisions    25
Schedule 1 Part A: Disclosed Transaction Costs    32
Schedule 2 The Management Sellers    34
Schedule 3 Closing Obligations    35

    
    

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This Agreement is made on 20 November 2014 
between:
		
	(1)
	CAP Group S.à r.l., a société à responsibilitée limitée incorporated in Luxembourg and registered with the Luxembourg Register of Commerce and Companies with registered number B163128 and whose registered office is at 12, rue Guillaume Kroll, L-1882 Luxembourg, (the “Institutional Seller”);

		
	(2)
	the persons set out in Schedule 2(together referred to as the “Management Sellers” and individually as a “Management Seller”); 

		
	(3)
	Montagu IV LP, Montagu IV (B) LP, Montagu IV (Non-US) LP and Montagu IV (US) LP (together referred to as the “Institutional Investors” and individually as an “Institutional Investor”); and

		
	(4)
	HPI Holding Limited, a company incorporated in England and Wales with registered number 06765994 and whose registered office is at Dolphin House, New Street, Salisbury, Wiltshire, SP1 2PH (the “Purchaser”), 

each a “party” and together the “parties”.
Whereas:
		
	(A)
	Each Seller is, at the date of this Agreement, the beneficial owner and registered holder of that number of Shares as is set out in his respective Sale Schedule.

		
	(B)
	Each of the Sellers has agreed to sell all of its Shares on and subject to the terms of this Agreement and to assume the obligations imposed on it under this Agreement.

		
	(C)
	The Purchaser has agreed to purchase all of the Shares on and subject to the terms of this Agreement and to assume the obligations imposed on the Purchaser under this Agreement.

		
	(D)
	A portion of the Consideration payable to the Management Sellers will be satisfied by the issue by the Purchaser of Consideration Securities.

		
	(E)
	The Institutional Investors are parties to this Agreement solely for the purposes of Clauses 5.2, 6.2, 7 and 9.

It is agreed as follows:
		
	1
	Interpretation

In this Agreement, unless the context otherwise requires, the provisions in this Clause 1 apply:
		
	1.1
	Definitions

“A Ordinary Shares” means the A ordinary shares of £0.10 each in the capital of the Company;
“A Preference Shares” means the A preference shares of £0.00002 each in the capital of the Company;
“Affiliate” of any person means any natural person or legal entity who or which, directly or indirectly, controls, or is controlled by, or is under common control with such person or entity, and “control” (together with its correlative meanings, “controlled by” and “under common control with”) means with respect to any other person or entity, the possession, directly or indirectly, of power to direct or cause the direction of management or policies of such person 

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or entity (whether through ownership of voting securities or partnership or other ownership interests, by contract or otherwise) and, for the avoidance of doubt, includes, in respect of the Institutional Seller, those entities doing business as ‘Montagu’;
“Announcement” means the announcement in agreed form relating to the Transaction; 
“Articles” means the articles of association of the Company as in force as at the date of this Agreement;
“B Ordinary Shares” means the B ordinary shares of £1.00 each in the capital of the Company;
“Bank Pay-Off Amount” means £84,048,304.34, being the amount required to discharge all amounts owed by the Company and any other Group Company at Closing (including all amounts of principal, interest and any break fees) under the Existing Facilities and to release all security in relation to the Existing Facilities (inclusive of any prepayment costs and any advisory fees of the lenders thereunder);
“Books and Records” means the statutory books, certificates of incorporation and other records (including, for the avoidance of doubt, all Tax records required to be maintained by law or which are reasonably required for the purposes of complying with any reporting, filing or other obligation relating to Tax), for each Group Company;
“Business Day” means a day which is not a Saturday, a Sunday or a public holiday in England, Zurich (Switzerland) or Texas (USA);
“CAP Bank Account” means the bank account in the name of CAP Automotive Limited with Lloyds Bank Plc, account number 01723613, sort code 300002 and IBAN GB18 LOYD30000201723613; 
“Client Account” means the Sellers’ Lawyers’ client account with Lloyds Bank Plc, account number 00667153, sort code 309574 and IBAN GB30LOYD30957400667153 quoting reference L-227342;
“Claimant” has the meaning given to it in Clause 13.8.3;
“Closing” means the completion of the sale and purchase of the Shares pursuant to Clause 4;
“Closing Date” means the date of this Agreement or such other date on which Closing occurs as may be agreed in writing between the Purchaser and the Institutional Seller; 
“Chairman Consideration” means the proportion of the Ordinary Share Consideration set out in Martin McCourt’s Sale Schedule;  
“Company” means PM Guernsey Limited, a non-cellular company limited by shares incorporated in the island of Guernsey with registered number 54995 and whose registered office is at P.O. Box 25 Regency Court, Glategny Esplanade, St Peter Port, Guernsey GY1 3AP;
“Confidentiality Agreement” means the confidentiality agreement dated 8 July 2014 between Solera Holdings, Inc. and Montagu Private Equity LLP and pursuant to which Montagu Private Equity LLP and the Company made available certain confidential information relating to the Group Companies; 

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“Connected Person” has the meaning given in section 993 of the Income Tax Act 2007 and, in respect of any Seller that is an individual person (or a trustee, nominee or otherwise holds Shares on behalf of an individual person), also includes any corporate entity of which that Seller or any of that Seller’s Connected Persons is a director (other than any Group Company) and/or any partnership or corporate entity in which that Seller or any of his Connected Persons has a direct or indirect economic interest other than (a) a company listed on any recognised stock exchange in which such Seller or Connected Persons holds or is interested in no more than 5 per cent. of the issued share capital and (b) any Group Company; 
“Consideration” has the meaning given to it in Clause 3.1;
“Consideration Securities” means, in respect of each Management Seller (other than Martin McCourt) the number of loan notes in the capital of the Purchaser constituted by the Management Loan Note Instrument or the Leaver Loan Note Instrument, as applicable, in each case as set out in the relevant Management Seller’s Sale Schedule; 
“Data Room” has the meaning given to it in the Management Warranty Deed;
“Disclosed” has the meaning given to it in the Management Warranty Deed;
“Disclosed Transaction Costs” means the Transaction Costs detailed in Part A of Schedule 1;
“EBT” means the CAP Automotive Ltd Employee Benefit Trust; 
“Encumbrance” means any claim, charge, mortgage, lien, option, equitable right, power of sale, pledge, hypothecation, retention of title, right of pre-emption, right of first refusal or other third party right or security interest of any kind or an agreement, arrangement or obligation to create any of the foregoing or having similar effect;
“Existing Facilities” means the facilities agreement dated 9 July 2012 and amended and restated on 8 September 2014 and entered into by, inter alios, CAP Midco Limited as Parent and Borrower, CAP Automotive Limited as the Company and HSBC Bank plc as the Agent; 
“Group Companies” means the Company and each of its subsidiaries and “Group Company” means any one of them;
“HMRC” means Her Majesty’s Revenue & Customs; 
“Institutional Investor’s Group” means, in relation to an Institutional Investor, any Affiliate of such Institutional Investor, or any fund managed and/or advised by any adviser or manager of such Institutional Investor and/or any of its Affiliates or any director, employee or partner of any of them, but shall exclude any portfolio company of any such person;
“Institutional Investors’ Warranties” means those warranties set out in Clause 6.2;
“Institutional Seller’s Account” means the bank account in the name of CAP Group with ING Luxembourg S.A. of 52, route d’Esch, L2965- Luxembourg with IBAN LU20 0141 1426 0970 3030, BIC: CELL LULL; 
“Institutional Seller’s Group” means, in relation to the Institutional Seller:
		
	(a)
	the Institutional Investors;

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	(b)
	any Affiliate of the Institutional Seller or the Institutional Investors, or any fund managed and/or advised by any adviser or manager of the Institutional Seller and/or the Institutional Investors and/or any of their respective Affiliates or any investor in or director, employee or partner of any of them;

		
	(c)
	any general partner, limited partner, trustee, nominee, operator, arranger of, manager of, or investment adviser to, the Institutional Seller and/or the Institutional Investors and/or of or to any Affiliate of the Institutional Seller and/or the Institutional Investors, or of or to any fund managed and/or advised by any investment adviser or manager of the Institutional Seller and/or the Institutional Investors and/or any of their respective Affiliates;

		
	(d)
	any scheme under which certain officers, employees or partners of the Institutional Seller, the Institutional Investors or of any of their respective investment advisers or managers, or of any Affiliates of such investment advisers or managers, are entitled (as individuals or through a body corporate or any other vehicle) to acquire shares in companies in which the Institutional Seller or the Institutional Investors also invests, or any person holding shares or other interests under such a scheme or entitled to the benefits of shares or other interests under such a scheme; and

		
	(e)
	any person or entity for whom the Institutional Seller and/or the Institutional Investors holds Shares as trustee or nominee or in any other capacity whatsoever,

but shall not include any portfolio company of the Institutional Seller, the Institutional Investors and/or of any fund managed by and/or advised by any investment adviser or manager of such Institutional Seller or Institutional Investor or any of their respective Affiliates;
“Investment Agreement” means the investment agreement dated 18 May 2012 between, inter alios, the Institutional Seller, the Company, CAP Automotive (Holdings) Limited, CAP Midco Limited, CAP Automotive Limited, certain of the Management Sellers and the Lead Investors named therein;
“Investor Consideration” means, in respect of the Institutional Seller, the aggregate amount of the Preference Share Consideration and its proportion of the Ordinary Share Consideration as set out in the Institutional Seller’s Sale Schedule; 
“Leakage” means: 
		
	(a)
	any dividend or distribution or other return of capital declared (whether in cash or in kind), paid or made (directly or indirectly), by any Group Company to the Institutional Seller, any member of the Institutional Seller’s Group, any Management Seller or any Connected Person of any Management Seller;

		
	(b)
	any payments made or liabilities incurred (including bonuses, loan repayments, redemption of debt or equity securities, management fees, monitoring fees, service 

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interest actually paid in respect of any Loan Notes, advisory or professional fees and expenses or other payment of any nature) or any assets transferred by or on behalf of any Group Company to or for the benefit of the Institutional Seller, any member of the Institutional Seller’s Group, any Management Seller or any Connected Person of any Management Seller; 
		
	(c)
	any liabilities assumed, indemnified, incurred or increased (including under any guarantee, indemnity or other security) by or on behalf of any Group Company for the benefit of the Institutional Seller, any member of the Institutional Seller’s Group, any Management Seller or any Connected Person of any Management Seller; 

		
	(d)
	the waiver of, by or on behalf of any Group Company, any amount owed to that Group Company by the Institutional Seller, any member of the Institutional Seller’s Group, any Management Seller or any Connected Person of any Management Seller;

		
	(e)
	any Transaction Costs; 

		
	(f)
	any agreement, arrangement or vote in favour to do any of the items referred to in paragraphs (a) to (e) above; and

		
	(g)
	any Tax paid or payable by any Group Company as a consequence of any of the matters referred to in paragraphs (a) to (f) above, 

in each case net of any Tax relief actually obtained by any Group Company in respect of any matter giving rise to Leakage and any amount in respect of VAT which is recoverable by any Group Company (as determined by such Group Company, acting in good faith), but “Leakage” does not include any Permitted Leakage;
“Leaver Loan Note Instrument” means the instrument in agreed form constituting certain of the Consideration Securities; 
“Leaver Loan Notes” means the loan notes constituted by the Leaver Loan Note Instrument;
“Loan Note Amount” means £113,663,307.85;
“Loan Note Instrument” means the loan note instrument dated 18 May 2012 constituting the Loan Notes (as amended and/or restated from time to time);
“Loan Note Issuer” means CAP Automotive (Holdings) Limited, a company incorporated in England and Wales with registered number 08032451;
“Loan Notes” means the 12 per cent. fixed rate ‘Series 1 Unsecured PIK Notes 2061’ issued by the Loan Note Issuer in accordance with, and subject to the terms of, the Loan Note Instrument;
“Locked Box Accounts” has the meaning given to it in the Management Warranty Deed; 
 “Locked Box Date” means 30 September 2014; 

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“Losses” means all losses, liabilities, costs (including legal costs and experts’ and consultants’ fees), charges, expenses, actions, proceedings, claims and demands; 
“Management Cash Consideration” means the aggregate of the amounts set out in the column entitled ‘Management Cash Consideration’ in each of the Management Sellers’ respective Sale Schedules; 
“Management Client Account” means the Addleshaw Goddard LLP client account with Barclays Bank Plc, account number 00037230, sort code 200000 and IBAN GB59 BARC 2000 0000 0372 30 quoting reference WHELT/PONDA/335204-11;
“Management Deferred Consideration” has the meaning given to it in Part B of Schedule 1; 
 “Management Deferred Consideration Amount” means, in respect of each Management Seller (other than Martin McCourt), the amount set out in the column entitled ‘Management Deferred Consideration Amount’ in their respective Sale Schedules;
“Management Legal Costs” means an aggregate amount equal to £120,000 (inclusive of VAT) incurred by certain of the Management Sellers in connection with legal advice provided by Addleshaw Goddard LLP in respect of the transactions contemplated by this Agreement and payable by CAP Automotive Limited;  
 “Management Loan Note Instrument” means the instrument in agreed form constituting certain of the Consideration Securities;
“Management Loan Notes” means the loan notes constituted by the Management Loan Note Instrument;
“Management Sellers’ Representative” means the representative of the Management Sellers appointed pursuant to Clause 12.1;
“Management Warranty Deed” means the deed dated on or about the date of this Agreement setting out warranties to be given by certain of the Management Sellers and limitations thereon;
 “Ordinary Shares” means the A Ordinary Shares and the B Ordinary Shares;
“Ordinary Shares Consideration” has the meaning set out in Clause 3.3.2;
“Payer” has the meaning set out in Clause 13.8.3;
“Permitted Leakage” has the meaning given to it in Part B of Schedule1; 
 “Preference Shares Consideration” has the meaning set out in Clause 3.3.1;
“Proceedings” means any claim, proceeding, suit or action arising out of or in connection with this Agreement and/or any other Transaction Document;
“Pro Rata Share” has the meaning set out in Clause 5.2.2;
“Purchaser’s Closing Documents” has the meaning set out in Clause 8.1.2;
“Purchaser’s Group” means the Purchaser and each of its Affiliates from time to time (including, for the avoidance of doubt, the Group with effect from Closing); 
“Purchaser’s Lawyers” means Kirkland & Ellis International LLP of 30 St Mary Axe, London EC3A 8AF;

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“Relevant Customer” means any person acting as principal who at any time during the period of twelve months immediately preceding Closing was a client or customer of any Group Company and from whom the relevant Group Company received aggregate revenue during that period in excess of £100,000;
“Relevant Person” has the meaning set out in Clause 8.2; 
“Relevant Products or Services” means in respect of any Relevant Customer products or services of the type supplied by any Group Company to such Relevant Customer at any time during the period of twelve months immediately preceding Closing;
“Relevant Seller” has the meaning set out in Clause 5.2.1;
“Restricted Employee” has the meaning set out in Clause 9.1; 
“Sale Schedule” means in respect of each Seller, the schedule in the agreed form setting out the number and class of Shares owned by such Seller and such Seller’s entitlement to the Consideration (in amount and form) in respect of the sale and purchase of those Shares and, where relevant, that Management Seller’s Tax Liability and proportion of the Share Price; 
“Seller Claim” means any Proceedings against the Institutional Seller, the Institutional Investors or any Management Seller;
“Sellers” means the Institutional Seller and the Management Sellers, and “Seller” means any one of them;
“Sellers’ Closing Documents” has the meaning set out in Clause 6.1.4;
“Sellers’ Lawyers” means Linklaters LLP of One Silk Street, London EC2Y 8HQ;
“Sellers’ Warranties” means those warranties set out in Clause 6.1;
“Share Price” means an amount equal to £10,000 being the aggregate consideration payable by those Management Sellers referred to in Clause 3.4.3 in respect of the issue to or acquisition by them of certain Ordinary Shares on the date of this Agreement but prior to Closing; 
“Shares” means the A Ordinary Shares, the B Ordinary Shares and the A Preference Shares, together being the whole of the issued share capital of the Company;
“Specified Disclosed Transaction Costs” means those Disclosed Transaction Costs which are set out in the column ‘Specified Disclosed Transaction Costs” in the table set out in Part A of Schedule 1; 
“Tax” means all forms of taxation (other than deferred tax) (including, for the avoidance of doubt and without limitation, any corporation, income, capital gains, stamp, customs duties, excise, withholding, employment, social security (or similar contribution), environmental, real property, personal property, transfer, registration, value added or other tax, duty, contribution or levy in each case in the nature of tax), whether levied by reference to income, profits, gains, net wealth, asset values, turnover, added value or otherwise, and whether computed on a separate, consolidated, unitary combined basis or any other manner, whether disputed or not, and shall further include payments to a Tax Authority, court or tribunal on account of Tax, in each case whether of the United Kingdom or elsewhere in the world whenever imposed and whether chargeable directly or primarily against or attributable directly or primarily to a Group Company or any other person and all penalties and interest relating thereto; 

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“Tax Authority” means an authority, body or official competent to impose any liability in respect of Tax or responsible for the administration and/or collection of Tax or enforcement of any law in relation to Tax, in each case, anywhere in the world;
“Tax Liability” means the amount of or on account of income tax and employee national insurance contributions attributable to the relevant Management Sellers and referred to in Clause 3.4.3 and which has arisen as a result of the issue, or transfer, to them of certain Ordinary Shares issued to or acquired by them on the date of this Agreement (but prior to Closing) and which is set out in their respective Sale Schedules under the column entitled ‘Tax Liability’; 
“Transaction” means the sale by the Sellers and purchase by the Purchaser of the Shares pursuant to this Agreement; 
“Transaction Costs” means any professional fees, expenses or other costs paid or agreed to be paid or incurred or owing in connection with the Transaction or the transactions contemplated by the Transaction Documents by any Group Company since the Locked Box Date, in each case including any VAT other than VAT that is recoverable by any Group Company; 
“Transaction Documents” means this Agreement, the Sale Schedules, Management Warranty Deed, each of the documents in agreed form and any other document entered into or to be entered into pursuant to this Agreement, and “Transaction Document” means any one of them; 
 “VAT” means,
(i)    any tax imposed in compliance with the Council Directive of 28 November 2006 on the common system of value added tax (EC Directive 2006/112), as amended; and
(ii)    any other tax of a similar nature, whether imposed in a member state of the European Union in substitution for, or levied in addition to, such Tax referred to in paragraph (i) or imposed elsewhere including without limitation any value added Tax which is imposed by the United Kingdom Value Added Tax Act 1994 (“VATA”); and
“Warrantor” and “Warrantors” have the meanings set out in the Management Warranty Deed.
		
	1.2
	In this Agreement, unless the context otherwise requires:

		
	1.2.1
	references to any document (including this Agreement), or to a provision in a document, shall be construed as a reference to such document or provision as amended, supplemented, modified, restated or novated from time to time;

		
	1.2.2
	references to this Agreement include its recitals and schedules, and references to Recitals, Clauses, paragraphs and Schedules are to recitals, clauses and paragraphs of, and schedules to, this Agreement (unless the context otherwise requires);

		
	1.2.3
	references to a statute or statutory provision include:

		
	(i)
	that statute or provision as from time to time modified or re-enacted whether before or (except as specifically provided otherwise) after the date of this Agreement;

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

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

except to the extent that any statute, statutory provision or subordinate legislation made or enacted after the date of this Agreement would create or increase the liability of any party under this Agreement;
		
	1.2.4
	references to:

		
	(i)
	a person include any individual, company, corporation, body corporate, firm, joint venture, partnership, unincorporated association, organisation, institution, trust or agency (whether or not having separate legal personality); and

		
	(ii)
	a company include any company, corporation or body corporate, wherever incorporated;

		
	1.2.5
	the singular shall include the plural and vice versa. Words denoting any gender shall include any other gender and words denoting natural persons shall include any other persons;

		
	1.2.6
	headings shall be ignored in construing this Agreement;

		
	1.2.7
	the words “including”, “include”, “in particular” and words of similar effect shall not be deemed to limit the general effect of the words that precede them; 

		
	1.2.8
	the words “company”, “holding company”, “subsidiary”, “parent undertaking” and “subsidiary undertaking” shall have the same meaning in this Agreement as their respective definitions in the Companies Act 2006 (provided that where a holding company creates security over the shares of a subsidiary, that subsidiary shall be deemed not to cease being a subsidiary of the holding company solely as a result of the creation of that security); and

		
	1.2.9
	references to times of day are to London time unless otherwise stated.

		
	1.3
	Any reference in this Agreement to a document being “in the agreed terms” or “in the agreed form” is to a document in the terms agreed between the parties and for identification purposes only signed or initialled by them or on their behalf on or before the date of this Agreement.

		
	1.4
	Any provision of this Agreement which is expressed to bind the Sellers shall bind each of them severally (and thus not jointly) and any reference to “the Sellers” in this Agreement shall be construed as a reference to each Seller individually and severally (and thus not jointly) unless otherwise expressly provided.

		
	1.5
	Obligations to procure

Unless otherwise expressly provided, the expression “procure” where used in the context of the Sellers, means undertaking to exercise the relevant Seller’s voting rights and to use any and all other powers vested in it from time to time as a shareholder in the Company and, in the case of a Management Seller who is a director of any Group Company, his voting rights 

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in his capacity as a director (subject to his fiduciary duties as a director) of the Group Company in question.
		
	2
	Sale and Purchase of the Shares

		
	2.1
	On and subject to the terms and conditions of this Agreement, each Seller shall sell the Shares set out in his respective Sale Schedule to the Purchaser and the Purchaser shall purchase all such Shares.

		
	2.2
	The Shares shall be sold by the Sellers on and with effect from Closing with full title guarantee, free from Encumbrances and together with all rights and advantages attaching to them as at the Closing Date (including the right to receive all dividends or distributions declared, made or paid and interest declared, made, accrued or paid, in each case at any time on or after Closing). 

		
	2.3
	Each of the Sellers hereby waives any and all rights which may have been conferred on it under the Articles, the Investment Agreement or otherwise as may affect the transactions contemplated by this Agreement (other than its rights pursuant to this Agreement) including, without limitation: 

		
	2.3.1
	any rights of redemption, pre-emption, first refusal or transfer it may have with respect to the Shares; and

		
	2.3.2
	any rights to acquire any Shares.

		
	2.4
	Each of the Sellers irrevocably waives any right it may have to any additional consideration for the sale of its Shares as contemplated by this Agreement other than the Consideration whether pursuant to the terms of the Articles, the Investment Agreement or under any other agreement. For the avoidance of doubt, the foregoing sentence shall not preclude payment of any interest to which the holders of the Consideration Securities may be entitled to in accordance with the terms of the Consideration Securities.

		
	2.5
	The Purchaser shall not be obliged to complete the acquisition of the Shares unless the purchase of all of the Shares is completed simultaneously.

		
	3
	Consideration

		
	3.1
	Amount

The consideration for the purchase of the Shares under this Agreement (the “Consideration”) shall be £90,661,082.04.
		
	3.2
	Discharge of Consideration

The Consideration shall be paid or discharged (as appropriate) by way of cash payments and the issue of Consideration Securities pursuant to Clauses 3.4 and 4 and Schedule 3.
		
	3.3
	Apportionment of Consideration

The Consideration shall be apportioned as between the Ordinary Shares and the A Preference Shares as follows:
		
	3.3.1
	£818,843.70, being the aggregate principal amount of A Preference Shares and all dividends accrued and outstanding on such shares in accordance with the articles of 

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association of the Company to (but excluding) the Closing Date shall be payable to the Institutional Seller for the A Preference Shares (the “Preference Shares Consideration”); and 
		
	3.3.2
	£89,842,238.34 shall be payable, in aggregate, to the Sellers for the Ordinary Shares (the “Ordinary Shares Consideration”).

		
	3.4
	Satisfaction of Consideration

The Consideration shall be satisfied as follows:
		
	3.4.1
	an amount equal to the Consideration less the Management Deferred Consideration shall be paid in cash on Closing pursuant to Clauses  4.3.1(i) to 4.3.1 (iii) inclusive), to be allocated among the Sellers in accordance with each of their respective Sale Schedules;

		
	3.4.2
	an amount of Consideration equal to the Management Deferred Consideration Amount (in aggregate) shall be satisfied by the issuance of Consideration Securities pursuant to Clause 4.3.1(vi) to be allocated among the Management Sellers (other than Martin McCourt) on a pro-rata basis and in accordance with their respective Sale Schedules;

		
	3.4.3
	Ian Rendle, Ajay Handa, Matthew Thompson, Adrian Rushmore and Andrew Fellows each agree to a deduction from their proportion of the Management Cash Consideration of an amount equal to their respective Tax Liability and their proportion of the Share Price in the amounts set out in their respective Sale Schedules and direct the Purchaser to make such deduction and pay such monies to the CAP Bank Account subject always to the Purchaser complying with its obligations set out in Clause 4.3.1(viii). 

		
	3.5
	Treatment of Payments

If any payment is made by a Seller to the Purchaser in respect of any claim for Leakage or any breach of this Agreement or any other Transaction Document or under any indemnity in this Agreement or in any other Transaction Document, the adjustment and/or payment shall, to the extent possible, be treated as an adjustment of the consideration paid by the Purchaser under this Agreement to such Seller and, in such circumstances, the Ordinary Shares Consideration shall be deemed to have been reduced by the amount of such payment with any excess applied first to reduce the Preference Shares Consideration and then the Loan Note Amount.
		
	4
	Closing

		
	4.1
	Date and Place

Closing shall take place at the offices of the Sellers’ Lawyers on the Closing Date, immediately following execution of this Agreement.
		
	4.2
	Closing Events

On Closing: 
		
	4.2.3
	each of the Sellers shall comply with its respective obligations as specified in paragraph 1 of Schedule 3; and

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	4.2.4
	the Purchaser shall comply with its obligations as specified in paragraph 2 of Schedule 3.

		
	4.3
	Payments on Closing

		
	4.3.4
	On Closing, the Purchaser shall: 

		
	(i)
	pay the Investor Consideration to the Institutional Seller by transfer to the Institutional Seller’s Account;

		
	(ii)
	pay the Chairman Consideration to Martin McCourt by transfer of immediately available funds to the Client Account;  

		
	(iii)
	pay the aggregate of (A) Management Cash Consideration (less the deductions on account of each relevant Management Seller’s Tax Liability and Share Price) to the Management Sellers (other than Martin McCourt); and (B) the Management Legal Costs by transfer of immediately available funds to the Management Client Account;

		
	(iv)
	issue and allot to each Management Seller (other than Martin McCourt) the relevant number and class of Consideration Securities set out in his respective Sale Schedule, and procure that each Management Seller (other than Martin McCourt) is entered as owner of such Consideration Securities in the relevant register of the Purchaser; 

		
	(v)
	procure that the relevant Group Company repays the Bank Pay-Off Amount to the providers of finance under the Existing Facilities or as they may direct, such Bank Pay-Off Amount to be repaid in the same currency as the original drawdown; 

		
	(vi)
	procure that the Loan Note Issuer pays the Loan Note Amount to the Institutional Seller in full and final satisfaction of the outstanding principal and accrued interest on the Loan Notes as at the Closing Date by transfer of immediately available funds to the Institutional Seller’s Account; 

		
	(vii)
	procure, the payment by the Company of the Specified Disclosed Transaction Costs (in each case, including any VAT or other Tax payable in the ordinary course by any member of the Group in respect of payment of such fees) subject to receipt of valid VAT invoices; and

		
	(viii)
	pay to the CAP Bank Account, on behalf of the relevant Management Sellers, an amount equal to the aggregate of each Tax Liability and the Share Price which has been deducted from the Management Cash Consideration pursuant to Clause 3.4.3. 

		
	4.3.5
	All amounts expressed to be payable pursuant to any provision of this Agreement to:

		
	(i)
	the Institutional Seller shall be paid to the Institutional Seller’s Account receipt of each such amount in the Institutional Seller’s Account shall be an absolute discharge by the Purchaser of the obligation to pay such amount and the Purchaser shall not be concerned to see to the application of any such amount thereafter; 

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	(ii)
	Martin McCourt shall be paid to the Client Account which shall be received by the Sellers’ Lawyers on behalf of Martin McCourt, and the receipt of each such amount in the Client Account shall be an absolute discharge by the Purchaser of the obligation to pay such amount and the Purchaser shall not be concerned to see to the application of any such amount thereafter; or

		
	(iii)
	the Management Sellers (other than Martin McCourt) shall be paid to the Management Client Account, which shall be received by Addleshaw Goddard LLP on behalf of the relevant Management Seller and the receipt of each such amount in the Management Client Account shall be an absolute discharge by the Purchaser of the obligation to pay such amount and the Purchaser shall not be concerned to see to the application of any such amount thereafter.

		
	4.4
	Breach of Closing Obligations

If the obligations of (i) the Purchaser or (ii) any of the Sellers under Clauses 4.2 and 4.3 and Schedule 3 are not complied with on the Closing Date in any material respect, the Purchaser (in the case of a default by any of the Sellers) or the Sellers (in the case of a default by the Purchaser) shall be entitled (in addition to and without prejudice to all other rights or remedies available, including the right to claim damages) to terminate this Agreement by notice in writing to the Purchaser or the Sellers as the case may be.
		
	4.5
	Effect of Termination 

If this Agreement is terminated in accordance with Clause 4.4 (and without limiting any party’s rights and remedies, including the right to claim damages) all obligations of the parties under this Agreement shall and (except for the provisions of Clauses 1, 4.5, 11 and 13.4, 13.6 to 13.18 (inclusive)) but for the avoidance of doubt, all rights and liabilities of the parties which have accrued before termination shall continue to exist.  Save for the termination provisions set out in Clause 4.4, there are no other circumstances in which a party shall be entitled to terminate this agreement.
		
	5
	Leakage

		
	5.1
	Warranty and Undertaking

		
	5.1.5
	Each of the Sellers severally:

		
	(ix)
	warrants to the Purchaser that, from (but excluding) the Locked Box Date to (and including) the date of this Agreement, there has been; and

		
	(x)
	undertakes to the Purchaser to procure that, from (but excluding) the date of this Agreement to (and including) the Closing Date, there will be,

no Leakage to it or for its benefit (or, in the case of the Institutional Seller, to or for the benefit of a member of the Institutional Seller’s Group or, in the case of the Management Sellers, to or for the benefit of any of such Management Seller’s Connected Persons), provided that the Sellers shall have no liability to the Purchaser under this Clause 5.1 or Clause 5.2 if Closing does not occur.
		
	5.1.6
	Clause 1.5 shall not apply to this Clause 5.

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	5.2
	Post-Closing Adjustment for Leakage

		
	5.2.6
	In the event of any Leakage from (but excluding) the Locked Box Date to (and including) the Closing Date, the relevant Seller (the “Relevant Seller”) who receives or benefits from (or whose Institutional Seller’s Group member, in the case of the Institutional Seller, or whose Connected Persons, in the case of a Management Seller, receives or benefits from) the Leakage (or, in the case of Leakage under limb (g), to the extent that it is attributable to such Leakage) shall, with effect from Closing, on demand by the Purchaser, pay to the Purchaser on a pound-for-pound basis by way of adjustment to the amount of the Consideration received by the Relevant Seller an amount in cash equal to the amount of such Leakage together with interest on such sum from, and including, the date of the Leakage to the date of payment at 3% per annum, such interest to accrue on a daily basis.

		
	5.2.7
	In the event of any Leakage falling under limb (e) of the definition of Leakage in Clause 1.1 (together with any consequent Leakage under limb (g)), each Seller (other than Alastair Cotton) shall be deemed for the purposes of this Clause 5.2 to have received its Pro Rata Share of the Leakage. For the purposes of this Clause 5.2.2, “Pro Rata Share” shall mean, in relation to any Seller, that Seller’s pro rata share based on the proportion that the Ordinary Shares Consideration receivable by such Seller pursuant to this Agreement (as specifically stated in each of the respective Sale Schedules) bears to the aggregate amount of Ordinary Shares Consideration receivable by all Sellers pursuant to this Agreement (as specifically stated in the respective Sale Schedules) (disregarding the Ordinary Shares and Ordinary Share Consideration held and received by Alastair Cotton for such purposes).

		
	5.2.8
	If there is a breach of Clause 5.2.1 by the Institutional Seller and an amount equal to the Leakage (or any part of it) (and interest thereon) is not paid by the Institutional Seller or on its behalf pursuant to Clause 5.2.1 within 20 Business Days of (a) such amount becoming properly due for payment by the Institutional Seller pursuant to this Clause 5 and (b) the Institutional Seller having received written notice of such Leakage (and interest thereon) in accordance with this Clause 5, each Institutional Investor hereby severally undertakes to pay to the Purchaser (or any member of the Group as the Purchaser directs) on demand (to the extent not paid by the Institutional Seller pursuant to Clause 5.2.1) such Institutional Investor’s pro rata share of such Leakage (and interest thereon), where “pro rata share” is calculated based on the proportion that such Institutional Investor’s holding of shares in the Institutional Seller bears to the aggregate amount of all shares in the Institutional Seller held by the Institutional Investors, in each case, as such shares are in issue at the date of this Agreement.

		
	5.3
	Notification of Leakage

Each Seller severally undertakes to the Purchaser to notify the Purchaser in writing as soon as reasonably practicable after Closing upon becoming aware of any receipt of the benefit of Leakage by it or, in the case of the Institutional Seller, any member of the Institutional Seller’s Group and, in the case of any Management Seller, any Connected Person of such Management Seller from (but excluding) the Locked Box Date to (and including) the Closing Date.
		
	5.4
	Limitations on Leakage Claims

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	5.4.1
	The aggregate liability of each Seller in respect of any Leakage pursuant to this Clause 5 shall not exceed an amount equal to the Leakage received by or benefitted to such Seller or, in the case of the Institutional Seller, by or to any member of the Institutional Seller’s Group, or, in the case of a Management Seller, by or to any Connected Person of that Management Seller.

		
	5.4.2
	The Sellers shall not be liable in respect of any Leakage pursuant to this Clause 5 unless the Purchaser has given to the relevant Seller written notice of such claim specifying (in reasonable detail) the matter(s) which give(s) rise to the claim, the nature of the claim, the legal and factual basis of the claim and the evidence on which the Purchaser relies, and the amount claimed in respect thereof, as soon as reasonably practicable after the Purchaser becomes aware of the Leakage and, in any event, within six months following Closing.

		
	5.5
	Leakage and Corresponding Savings

		
	5.5.1
	To the extent that any Leakage in respect of which a Seller has made a payment to the Purchaser in accordance with Clause 5.2 gives rise to any repayment, refund, credit or saving of or other relief from Tax for the Purchaser’s Group (including a Group Company) and the Purchaser’s Group has actually obtained the benefit of the same, the Purchaser shall promptly notify the Sellers of the amount of such repayment, refund, credit,  saving or relief so obtained and such amount (less any costs reasonably incurred by the Purchaser or the Purchaser’s Group in obtaining the same) shall be treated as follows:

		
	(xi)
	first, the relevant amount shall be set off against any outstanding liability of the relevant Seller(s) to make any payment to the Purchaser pursuant to this Agreement or any other Transaction Documents;

		
	(xii)
	second, to the extent there is any excess, the Purchaser shall refund to the relevant Seller(s) any previous payments made by them pursuant to this Agreement or any other Transaction Documents (to the extent such payments have not been previously refunded) up to an amount equal to the lower of (A) the excess and (B) the previous payments made pursuant to this Agreement or any other Transaction Documents; and

		
	(xiii)
	third, to the extent that any excess is not exhausted, the remainder of such excess shall be retained by the Purchaser and set against any future liability of the Sellers to make any payment to the Purchaser pursuant to this Agreement or any other Transaction Documents.

		
	6
	The Sellers’ and Institutional Investors’ Warranties

		
	6.1
	The Sellers’ Warranties

Each Seller individually and severally (and thus not jointly) warrants to the Purchaser that the statements set out below are true and accurate as at the date of this Agreement and will be true and accurate at Closing as if they had been repeated at Closing: 
		
	6.1.9
	it is the sole legal and beneficial owner of, and has the right to exercise all voting and other rights over, the Shares listed opposite its name in Schedule 1;

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	6.1.10
	there is no Encumbrance, option, right of pre-emption, right or obligation to acquire, redeem or convert on, over or affecting any of the Shares being sold by it;

		
	6.1.11
	in the case of the Institutional Seller, it is validly existing and is duly incorporated under the law of its jurisdiction of incorporation;

		
	6.1.12
	it has the legal right and full power and authority to execute, deliver and perform this Agreement and the Transaction Documents to which it is a party (the “Sellers’ Closing Documents”);

		
	6.1.13
	in the case of the Institutional Seller, it has taken all corporate action required by it to authorise it to enter into and perform the Sellers’ Closing Documents;

		
	6.1.14
	the Sellers’ Closing Documents to which it is a party will, when executed, constitute valid and binding obligations of that Seller in accordance with their respective terms; and

		
	6.1.15
	the execution and the performance by that Seller of its obligations under this Agreement and the Sellers’ Closing Documents will not:

		
	(i)
	in the case of the Institutional Seller, result in a breach of any provision of that Seller’s memorandum or articles of association, by-laws or equivalent constitutional documents;

		
	(ii)
	result in a breach of, or constitute a default under, any instrument to which that Seller is a party or by which it is bound and which is material in the context of the Transaction; 

		
	(iii)
	so far as it is aware, result in a breach of any order, judgment or decree of any court or governmental agency to which that Seller is respectively a party or by which it is respectively bound and which is material in the context of the Transaction; or

		
	(iv)
	so far as it is aware, require that Seller to obtain any consent or approval of, or give any notice to or make any registration with, any governmental or other authority which has not been obtained or made at the date hereof both on an unconditional basis and on a basis which cannot be revoked. 

		
	6.2
	The Institutional Investors’ Warranties

Each Institutional Investor individually and severally (and thus not jointly) warrants to the Purchaser that the statements set out below are true and accurate as at the date of this Agreement and will be true and accurate at Closing as if they had been repeated at Closing: 
		
	6.2.1
	it is validly existing and is duly incorporated under the law of its jurisdiction of incorporation;

		
	6.2.2
	it has the legal right and full power and authority to execute, deliver and perform this Agreement;

		
	6.2.3
	it has taken or will have taken by Closing all corporate action required by it to authorise it to enter into and perform this Agreement;

		
	6.2.4
	this Agreement will, when executed, constitute valid and binding obligations of that Seller in accordance with its terms; and

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	6.2.5
	the execution and the performance by that Institutional Investor of its obligations under this Agreement will not:

		
	(i)
	result in a breach of any provision of that Institutional Investor’s memorandum or articles of association, by-laws or equivalent constitutional documents;

		
	(ii)
	result in a breach of, or constitute a default under, any instrument to which that Institutional Investor is a party or by which it is bound and which is material in the context of the Transaction; 

		
	(iii)
	so far as it is aware, result in a breach of any order, judgment or decree of any court or governmental agency to which that Institutional Investor is respectively a party or by which it is respectively bound and which is material in the context of the Transaction; or

		
	(iv)
	so far as it is aware, require that Institutional Investor to obtain any consent or approval of, or give any notice to or make any registration with, any governmental or other authority which has not been obtained or made at the date hereof both on an unconditional basis and on a basis which cannot be revoked.

		
	6.2.6
	each of the Institutional Seller’s warranties set forth in Clause 6.1 is true and accurate.

		
	6.3
	Separate Warranties

Unless expressly provided in this Agreement, each of the Sellers’ Warranties and the Institutional Investors’ Warranties shall be separate and independent and shall not be limited by reference to any other clause or anything in this Agreement.
		
	6.4
	The Sellers’ Waiver of Rights against the Group

Save in the case of fraud, each Seller (in the case of the Institutional Seller for itself and on behalf of each member of the Institutional Seller’s Group) undertakes to the Purchaser and each of the Group Companies and their respective directors, officers, employees and agents to waive any rights, remedies or claims which it (or in the case of the Institutional Seller, any member of the Institutional Seller’s Group) may have against such directors, officers, employees and agents of the Purchaser or any Group Company, including but not limited to rights, remedies or claims in respect of any misrepresentation, inaccuracy or omission in or from any information or advice supplied or given by a Group Company or its directors, officers, employees or agents in connection with the entering into of the Transaction Documents.
		
	7
	Limitation of Sellers’ Liability 

The liability of each person under or in respect of any Seller Claim or otherwise (which for the avoidance of doubt, shall be on a several basis, and thus not a joint basis) shall be subject to the limitations and further provisions set out in this Clause 7.
		
	7.1
	Maximum Liability

		
	7.1.7
	The maximum aggregate liability of each Seller in respect of all Seller Claim(s) (other than, subject to Clause 5.4, any Seller Claim in respect of Leakage) shall not exceed an amount equal to the Consideration actually received in cash by such Seller at the relevant time. 

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	7.1.8
	The maximum aggregate liability of each Institutional Investor in respect of any claim against such Institutional Investor pursuant to this Agreement or any Transaction Document (other than, subject to Clause 5.4, any claim in respect of Leakage) shall not exceed an amount equal to the amount of the Consideration which such Institutional Investor has indirectly received in cash on or following Completion by virtue of such Institutional Investor’s holding of shares in the Institutional Seller. 

		
	7.1.9
	The Consideration Securities shall only be considered an amount received in cash under this Clause 7.1 to the extent that they have been sold, redeemed, repurchased or repaid in cash.

		
	7.1.10
	Notwithstanding anything else contained in this Agreement, the Institutional Investors shall have no liability under or in connection with this Agreement or the Transaction Documents except as expressly provided under Clause 5 or arising under Clause 6.2 or Clause 9.

		
	7.2
	Time Limitation 

		
	7.2.3
	No person shall be liable in respect of any Seller Claim unless the Purchaser has given to the relevant person written notice of such Seller Claim specifying (in reasonable detail) the matter(s) which give(s) rise to the Seller Claim, the nature of the claim and (if reasonably practicable) the amount claimed in respect thereof as soon as reasonably practicable after the Purchaser becomes aware of the Seller Claim and in any event (other than: (i) subject to Clause 5.4.2, any Seller Claim in respect of Leakage pursuant to Clause 5; (ii) any Seller Claim in respect of breach of Clause 9 (which must be so notified within 30 months of Closing); (iii) any Seller Claim in respect of breach of Clause 10.2 (which must be so notified within 30 months of Closing); (iv) any Seller Claim in respect of breach of Clause 2 or Clause 6 (which must be so notified within the six years of Closing); and (v) any Seller Claim under the Management Warranty Deed (which must be notified within the time limits specified in the Management Warranty Deed)), within two years following Closing. 

		
	7.2.4
	Any Seller Claim notified pursuant to Clause 7.2.1 shall (if it has not been previously satisfied, settled or withdrawn) be deemed to be irrevocably withdrawn six months after the relevant notice has been given by the Purchaser (or, in the case of a contingent liability, three months after the contingent liability becomes an actual liability), unless at such time legal proceedings in respect of the relevant Seller Claim (i) have been commenced by being both issued and served and (ii) are being and continue to be pursued with reasonable diligence. 

		
	7.3
	Contingent Liabilities

No person shall be liable in respect of any Seller Claim liability which is contingent unless and until such contingent liability becomes an actual liability and is due and payable, but this Clause 7.3 shall not operate to avoid a claim made in respect of a contingent liability within the time limit specified in, and specifying the matters set out in, Clause 7.2.
		
	7.4
	Remedy

The Purchaser agrees that it shall not be entitled to make any Seller Claim (whether for damages or otherwise) in respect of any breach of any of the Transaction Documents unless the Purchaser has given written notice to the relevant Seller of such breach in accordance 

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with Clause 7.2.1 and, where such breach is capable of remedy, such breach is not remedied within 30 days after service of such written notice.
		
	7.5
	Waiver of Rights of Rescission

Notwithstanding that a party becomes aware at any time:
		
	7.5.1
	that there has been a breach of any provision of this Agreement; or

		
	7.5.2
	that there may be a claim against a Seller in connection with this Agreement or any other Transaction Document,

the Purchaser shall not be entitled to rescind this Agreement or treat this Agreement as terminated (other than pursuant to the rights set out in Clause 4.4), and shall only be entitled to claim damages in respect of such matter, and, accordingly, the Purchaser waives all and any rights of rescission it may have in respect of any such matter (howsoever arising or deemed to arise), other than any such rights arising in respect of fraud of any Seller.
		
	7.6
	Double Claims

The Purchaser shall neither be entitled to recover from (i) any person under any Seller Claim more than once in respect of the same losses suffered; nor (ii) any Institutional Investor in respect of any losses recovered from the Institutional Seller and vice versa.
		
	7.7
	Mitigation of Losses

Nothing in the Transaction Documents shall or shall be deemed to relieve or abrogate the Purchaser or, as the case may be, the Sellers, of any common law or other duty to mitigate any loss or damage. 
		
	7.8
	Interpretation

Each provision of this Clause 7 shall be read and construed without prejudice to each of the other provisions of this Clause 7.
		
	7.9
	Fraud

None of the limitations contained in this Clause 7 shall apply to any claim under this Agreement or the Transaction Documents for breach of any of the Sellers’ Warranties which arises or is increased, or to the extent to which it arises or is increased, as the consequence of, or which is delayed as a result of, fraud by any Seller. 
		
	8
	Purchaser’s Warranties

		
	8.1
	The Purchaser’s Warranties

The Purchaser hereby warrants to each of the Sellers that the statements set out below are true and accurate as at the date of this Agreement and will be true and accurate at Closing as if they had been repeated at Closing:
		
	8.1.5
	the Purchaser is a company validly and duly incorporated and existing under the laws of its jurisdiction of incorporation;

		
	8.1.6
	the Purchaser has the legal right and full power and authority to execute and perform the Transaction Documents to which it is a party (the “Purchaser’s Closing Documents”);

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	8.1.7
	the Purchaser’s Closing Documents will, when executed, constitute valid and binding obligations on the Purchaser in accordance with their respective terms;

		
	8.1.8
	the Purchaser has taken all corporate action required by it to authorise it to enter into and perform the Purchaser’s Closing Documents; 

		
	8.1.9
	the execution and performance by the Purchaser of its obligations under this Agreement and the Purchaser’s Closing Documents will not:

		
	(i)
	result in a breach of any provision of the memorandum or articles of association, by-laws or equivalent constitutional documents of the Purchaser;

		
	(ii)
	result in a breach of, or constitute a default under, any instrument to which the Purchaser is a party or by which the Purchaser is bound and which is material in the context of the Transaction;

		
	(iii)
	so far as it is aware, result in a breach of any order, judgment or decree of any court or governmental agency to which the Purchaser is a party or by which the Purchaser is bound and which is material in the context of the Transaction; or

		
	(iv)
	so far as it is aware, require the Purchaser to obtain any consent or approval of, or give any notice to or make any registration with, any governmental or other authority which has not been obtained or made at the date of this Agreement both on an unconditional basis and on a basis which cannot be revoked; and

		
	8.1.10
	the Purchaser is acting as principal and not as agent or broker for any other person and no person other than the Purchaser will be interested in the Shares. For the purposes of this Clause 8.1.6 the word “interested” shall bear the same meaning as in Part 22 of the Companies Act 2006. 

		
	8.2
	Waiver of Rights

The Purchaser hereby warrants and undertakes to each of the Sellers for itself and as agent and trustee for each employee, director, agent, officer of, or adviser to, any member of the Institutional Seller’s Group and/or any Group Company (each a “Relevant Person”) that, other than with respect to the terms of any Transaction Document or any other direct contractual obligation existing between the Purchaser and the Relevant Person, and in the absence of fraud, the Purchaser:
		
	8.2.2
	has no rights against (and waives any rights it may have against); and

		
	8.2.3
	will not make a claim against (and waives any claim it may have against),

any Relevant Person, provided that nothing in this Clause 8.2 shall limit the ability of the Purchaser to bring any claim against any adviser to the Group Companies or the Sellers, to the extent it has prepared a report or other documentation for the specific benefit of the Purchaser or a Group Company in connection with the Transaction (subject always to the terms of any reliance letter entered into between the Purchaser and the relevant adviser and/or the terms of engagement of such adviser).
		
	9
	Restrictive Covenant

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	9.1
	In this Clause 9 “Restricted Employee” means any Warrantor or Vicky Idle, employed or retained by any Group Company in each case as employed or retained at the date hereof and/or at the Closing Date.

		
	9.2
	Each Institutional Investor individually and severally (and thus not jointly) (on behalf of itself and each member of such Institutional Investor’s Group) hereby undertakes to the Purchaser (for itself and as agent and trustee for each Group Company) that it shall not, and shall procure that each member of such Institutional Investor’s Group shall not, and undertakes that it will not (i) cause; (ii) actively encourage; or (iii) grant its consent to (to the extent it has express veto rights), any of its portfolio companies to, for a period of two years after the Closing Date, either on its own behalf or jointly with or as an agent for any other person directly or indirectly, except with the Purchaser’s prior written consent, solicit or entice away or knowingly encourage a Restricted Employee to leave the employment of a Group Company (whether or not the employee would by reason of so leaving commit a breach of his or her employment contract).

		
	9.3
	This undertaking shall not prohibit or restrict the Institutional Investors or any member of the Institutional Investor’s Group from advertising generally for staff provided that such advertisement is not targeted at the Group Companies or any Group Company or any Restricted Employee.

		
	9.4
	Each of the Management Sellers (other than Martin McCourt) severally (and thus not jointly) undertakes to the Purchaser and each Group Company that he will not (in each case, whether alone or in conjunction with, or on behalf of, another person and whether directly or indirectly), without the prior written consent of the Purchaser:

		
	9.4.1
	for a period of two years immediately following Closing, canvass, solicit or approach, or cause to be canvassed, solicited or approached, any Relevant Customer for the sale or supply of Relevant Products or Services;

		
	9.4.2
	for a period of two years immediately following Closing, deal or contract with any Relevant Customer in relation to the sale or supply of Relevant Products or Services;

		
	9.4.3
	for a period of two years immediately following Closing, interfere, or seek to interfere, with the continuance of supplies to any Group Company from any supplier who has been supplying goods or services to that Group Company at any time during the 12 months immediately preceding Closing;

		
	9.4.4
	for a period of two years immediately following Closing, solicit or entice away, or endeavour to solicit or entice away, from any Group Company, or employ, any person employed in a managerial, supervisory, technical engineering or sales capacity by, or who is or was a consultant to, any Group Company at Closing or at any time during the period of 12 months immediately preceding Closing where the person in question either has Confidential Information or would be in a position to exploit a Group Company's trade connections;

		
	9.4.5
	for a period of two years immediately following Closing, be engaged, concerned, connected with or interested in (except as the owner for investment of securities in a company dealt in on a recognised stock exchange and which confer not more than 3 per cent of the votes which could be cast at a general meeting), any other business which supplies Relevant Products or Services in competition with any Group Company;

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	9.4.6
	without prejudice to any rights relating to passing off or trade mark infringement (or similar rights in any territory), at any time following Closing use in connection with any business which is competitive with the business of any Group Company any name (in whatever form) which includes the name of any Group Company or any trading style or get up which is confusingly similar to that used by any Group Company as at Closing; or

		
	9.4.7
	make any material disparaging statements about the Purchaser or any of its Connected Persons, or any of its or their respective directors, officers or employees in connection with their conduct in respect of the Transaction.

		
	9.5
	Each of the undertakings set out in this Clause 9 is separate and severable and enforceable accordingly, and if any one or more of such undertakings or part of an undertaking is held to be against the public interest or unlawful or in any way an unreasonable restraint of trade, the remaining undertakings or remaining part of the undertakings will continue in full force and effect.

		
	9.6
	Each Seller and each Institutional Investor agrees that the restrictions contained in this Clause 9 are no greater than is reasonable and necessary for the protection of the interests of the Purchaser and the Group Companies but if any such restriction shall be held to be void but would be valid if deleted in part or reduced in application, such restriction shall apply with such deletion or modification as may be necessary to make it valid and enforceable.

		
	10
	Confidentiality and Announcements

		
	10.1
	Announcements

With the exception of the Announcement, which shall be made on the date hereof (or on such other date as may be agreed), each of the parties undertakes to the other parties (and, in the case of the Purchaser, for itself and as agent and trustee for each member of the Purchaser’s Group) that no announcement, communication or circular concerning the existence or provisions of this Agreement or any other Transaction Document shall be made or issued by or on behalf of any party or any member of the Institutional Seller’s Group or the Purchaser’s Group (as applicable) without the prior written approval of the Purchaser, the Institutional Seller and the Management Sellers’ Representative (such consent not to be unreasonably withheld or delayed). This shall not affect any announcement, communication or circular required by law or any governmental or regulatory body, court order or the rules of any relevant stock exchange, but then only to the extent so required and the party with an obligation to make an announcement or communication or issue a circular shall consult with the Purchaser, the Institutional Seller and the Management Sellers’ Representative insofar as is reasonably practicable before complying with such an obligation.
		
	10.2
	Confidentiality

		
	10.2.3
	The Confidentiality Agreement shall cease to have any force or effect from the Closing Date, but without prejudice to any prior breaches of the Confidentiality Agreement. 

		
	10.2.4
	Subject to Clauses 10.1 and 10.2.3, from the date of this Agreement to the date falling two years following the date hereof:

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	(i)
	each of the Sellers and the Purchaser shall treat as strictly confidential and not disclose or use any information received or obtained as a result of entering into this Agreement (or any Transaction Document) which relates to:

		
	(a)
	the existence and the provisions of this Agreement and of any Transaction Document; and/or 

		
	(b)
	the negotiations relating to this Agreement and any Transaction Document;

		
	(ii)
	the Institutional Seller shall, and shall use reasonable endeavours to procure that each member of the Institutional Seller’s Group shall, following Closing, treat as strictly confidential and not disclose or use any information relating to the Group Companies following Closing and any other information relating to the business, financial or other affairs (including future plans and targets) of the Purchaser’s Group; and

		
	(iii)
	the Purchaser shall treat as strictly confidential and not disclose or use any information relating to the business, financial or other affairs (including future plans and targets) of the Institutional Seller or the Institutional Seller’s Group.

		
	10.2.5
	Clause 10.2.2 shall not prohibit disclosure or use of any information if and to the extent:

		
	(i)
	the disclosure or use is required to vest the full benefit of this Agreement in a party;

		
	(ii)
	the disclosure or use is required by law, any governmental or regulatory body or any recognised stock exchange on which the shares of any party or any member of the Institutional Seller’s Group or the Purchaser’s Group are listed (including where this is required as part of any actual or potential offering, placing and/or sale of securities of that party or any member of the Institutional Seller’s Group or the Purchaser’s Group);

		
	(iii)
	the disclosure or use is required by any Management Seller in the ordinary course of their employment by any Group Company;

		
	(iv)
	the disclosure or use is required for the purpose of any judicial or arbitral proceedings arising out of this Agreement or any Transaction Document;

		
	(v)
	the Purchaser, the Institutional Seller and the Management Sellers’ Representative have given prior written approval to the disclosure or use;

		
	(vi)
	the disclosure is made to a Tax Authority in connection with the Tax affairs of the disclosing party;

		
	(vii)
	the disclosure is made to a party to whom assignment is permitted under Clause 13.5 on terms that such assignee undertakes to comply with the provisions of Clause 10.2.2 in respect of such information as if it were a party to this Agreement; 

		
	(viii)
	the disclosure is made (a) by the Institutional Seller to any member of the Institutional Seller’s Group or (b) to professional advisers or to debt or equity financiers of any party or of any member of the Institutional Seller’s Group on 

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a need to know basis, provided such person is under a duty of confidentiality in respect of such information;
		
	(ix)
	the disclosure is made by the Purchaser to any depositary or custodian appointed under the Alternative Investment Fund Managers Directive (2011/61/EU), EU Regulation 231/2013 and any legislation or rule implementing Directive 2011/61/EU in any member state of the European Union;

		
	(x)
	the information is or becomes publicly available (other than by breach of the Confidentiality Agreement or of this Agreement); or

		
	(xi)
	the information is independently developed after Closing,

provided that prior to disclosure or use of any information pursuant to paragraphs 10.2.3(i), (ii) or (iv) of this Clause 10.2.3 (except in the case of disclosure to a Tax Authority), the party concerned shall promptly notify (to the extent permitted by any applicable law or regulation) the other parties of such requirement with a view to providing (if reasonably practicable to do so) the other parties with the opportunity to contest such disclosure or use or otherwise to agree the timing and content of such disclosure or use.
		
	11
	Termination of Existing Agreements

Effective as of and conditional upon Closing, each of the parties which is a party to the Investment Agreement hereby terminates the Investment Agreement and irrevocably waives any and all claims any such person may have under the Investment Agreement in its capacity as shareholder, director or employee (as applicable) against any Group Company or any other direct or indirect party to the Investment Agreement.
		
	12
	Appointment of Management Sellers’ Representative

		
	12.1
	The Management Sellers (other than Martin McCourt and Alastair Cotton) hereby appoint Ian Rendle as their representative who may, acting alone, authorise the making of any request, election, proposal or consent expressed to be made on behalf of the Management Sellers (in their capacity as Management Sellers) to the Purchaser. 

		
	12.2
	The Management Sellers (other than Martin McCourt and Alastair Cotton) may appoint a replacement Management Sellers’ Representative by decision taken by Management Sellers representing a two-thirds majority of the aggregate number of Ordinary Shares held by such Management Sellers as at the date of this Agreement, provided that 10 Business Days’ prior written notice of such appointment has been given to the Institutional Seller and the Purchaser. 

		
	12.3
	The Purchaser shall be entitled at its sole discretion to have regard only to, and to rely absolutely upon and act in accordance with, without any liability to any party for having relied or acted thereon, notices, including requests, elections or proposals, issued by the Management Sellers’ Representative. Service of any notice or other communication on the Management Sellers’ Representative shall be deemed to constitute valid service thereof on all the Management Sellers. 

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	12.4
	The Management Sellers’ Representative shall pass any notices received pursuant to this Agreement on behalf of a Management Seller to such Management Seller without undue delay. 

		
	12.5
	The Management Sellers’ Representative shall not be liable to any of the Management Sellers for any claims whatsoever arising from any act or omission undertaken by him in his capacity as the Management Sellers’ Representative, save in the case of fraud or wilful default.

		
	13
	Other Provisions

		
	13.1
	Further Assurances

		
	13.1.1
	Each Seller severally undertakes to execute and deliver (at its own cost) all such instruments and other documents and take all such actions as the Purchaser may from time to time reasonably require and as are reasonable and necessary in order to effect the transfer of the Shares to the Purchaser and otherwise to secure to the Purchaser the full benefit of this Agreement.

		
	13.1.2
	Each of the parties severally undertakes to take all reasonable steps within their power as any other party may from time to time reasonably require in order to secure to the other parties the full benefit of this Agreement.

		
	13.2
	Access to Information for Sellers

For a period of seven years following Closing, the Purchaser shall, and shall procure that the relevant Group Companies shall, if reasonably requested by a Seller, allow such Seller, or, in the case of the Institutional Seller, such other member of the Institutional Seller’s Group as it shall nominate, access (including the right to take copies at the Seller’s expense) to the Books and Records of each Group Company which are reasonably required by any Seller or such other member of the Institutional Seller’s Group for the purpose of dealing with its Tax and accounting affairs (including such information as is reasonably required by any Seller in order to negotiate, refute, settle, compromise or otherwise deal with any claim, investigation or enquiry by a Tax Authority regarding a Seller or an Institutional Seller’s Group member relating to income, profits or gains earned, accrued or received (or treated for Tax purposes as earned, accrued or received) or any event occurring (or treated for Tax purposes as occurring) on or before Closing).
		
	13.3
	Satisfaction of Tax Liabilities

		
	13.3.1
	The Purchaser agrees to procure that from the funds received pursuant to Clause 4.3.1(viii) CAP Automotive Limited (i) accounts for the Tax Liabilities to HMRC on behalf of those Management Sellers referred to in Clause 3.4.3 in its next payroll run following the Closing Date or as otherwise required by law; and (ii) applies, as soon as is reasonably practicable, £8,500 from the Share Price in full and final satisfaction from the loan owed by the EBT to it (as it has been authorised to do pursuant to a letter of recommendation from CAP Automotive Limited dated on the date of this Agreement and countersigned by Appleby Trust (Jersey) Ltd in its capacity as trustee of the EBT); and £1,500 from the Share Price to satisfy the amount owed by Adrian Fellows to PM Guernsey Limited in respect of his subscription of 1,500 A Ordinary Shares on the date of this Agreement. 

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	13.3.2
	Where a Management Seller’s Tax Liability and their proportion of the Share Price have been deducted and withheld from their Management Cash Consideration, the Purchaser hereby releases that Seller from any claim it, or any Group Company, may have in respect of such sums, whether under this Agreement or any of the Transaction Documents or otherwise. 

		
	13.4
	Whole Agreement, Inconsistency and Variation

		
	13.4.1
	This Agreement and the Transaction Documents contain the whole agreement between the parties relating to the subject matter of this Agreement at the date of this Agreement and the Transaction Documents to the exclusion of any terms implied by law which may be excluded by contract, and supersedes any previous written or oral agreement between the parties in relation to the matters dealt with in this Agreement.

		
	13.4.2
	Each party acknowledges that, in entering into this Agreement, it is not relying on any representation, warranty or undertaking not expressly incorporated into it other than in respect of the Management Warranty Deed.

		
	13.4.3
	Each party agrees and acknowledges that its only right and remedy in relation to any representation, warranty or undertaking made or given in connection with this Agreement shall be for breach of the terms of this Agreement, and each of the parties waives all other rights and remedies (including those in tort or arising under statute) in relation to any such representation, warranty or undertaking.

		
	13.4.4
	Nothing in this Clause 13.4 excludes or limits any liability for fraud.

		
	13.5
	Assignment

Except as otherwise expressly provided in this Agreement, no party may assign, grant any security interest over, hold on trust or otherwise transfer the benefit of the whole or any part of this Agreement, save that:
		
	13.5.1
	the Institutional Seller may assign (in whole or in part) the benefit of this Agreement to any member of the Institutional Seller’s Group, provided that if such assignee ceases to be a member of the Institutional Seller’s Group, all benefits relating to this Agreement assigned to such assignee shall be deemed automatically by that fact to be re-assigned to the Institutional Seller immediately before such cessation; 

		
	13.5.2
	the Purchaser may assign (in whole or in part) the benefit of the whole or any part of this Agreement to any other member of the Purchaser’s Group, provided that if such assignee ceases to be a member of the Purchaser’s Group, all benefits relating to this Agreement assigned to such assignee shall be deemed automatically by that fact to be re-assigned to the Purchaser immediately before such cessation; and 

		
	13.5.3
	the Purchaser or any member of the Purchaser’s Group may charge and/or assign the benefit of this Agreement to any bank or financial institution or other person by way of security for the purposes of or in connection with the financing or refinancing (whether in whole or in part) by the Purchaser of the acquisition of the Shares,

provided that any such assignee shall not be entitled to receive under this Agreement any greater amount than that to which the assignor would have been entitled and neither the Purchaser nor any Seller, as applicable, shall be under any greater obligation or liability than if such assignment had never occurred.

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	13.6
	Third Party Rights

		
	13.6.1
	A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of, or enjoy any benefit under, this Agreement, except to the extent set out in this Clause 13.6.

		
	13.6.2
	The third parties referred to in Clauses 6.4, 8.2, 9, 11, 13.3 and 13.10 may directly enforce only those Clauses in which they are referred to.

		
	13.6.3
	This Agreement may be terminated and any term may be amended or waived without the consent of the persons referred to in Clause 13.6.2.

		
	13.7
	Variation

No variation of this Agreement shall be effective unless in writing and signed by or on behalf of each of the Purchaser, the Institutional Seller and the Management Sellers’ Representative.
		
	13.8
	Method of Payment and Set Off

		
	13.8.1
	Any payments pursuant to this Agreement shall be made in full, without any set off (other than pursuant to Clause 3.4.3), counterclaim, restriction or condition and without any deduction or withholding (save for any withholding or deduction required by law). To the extent that any deduction or withholding is required by law on any payment or such payment is subject to a charge to Tax in the hands of the recipient (other than any deduction or withholding or Tax attributable to the payment of the Consideration), then the party making such payment shall pay such additional amount as shall be required to ensure that the net amount received and retained by the recipient (after any deduction, withholding or Tax, and after giving credit for any Tax relief obtained by the recipient attributable to such withholding, deduction, Tax, or in respect of the matter giving rise to the payment) is equal to the full amount which would have been received and retained by the recipient if no such deduction or withholding had been required or if the relevant payment had not been subject to a charge to Tax; provided that no additional amount shall be payable in respect of a charge to Tax in the hands of the recipient to the extent that the charge to Tax has already been taken into account in calculating the amount of the relevant payment.

		
	13.8.2
	To the extent that a party has satisfied any liability to make an increased payment pursuant to Clause 13.8.1 and the recipient has (in the reasonable determination of the recipient) actually obtained the benefit of any repayment, refund, credit or saving of or relief from Tax as a result of the deduction or withholding or Tax in respect of which such increased payment was made, then, save to the extent already taken into account in calculating the amount of the increased payment, the recipient shall reimburse to the paying party such part of the additional amount paid to it under this Clause 13.8 as the recipient shall determine, acting reasonably, will leave the recipient (after such reimbursement) in no better and no worse position than the recipient would have been in if the paying party had not been required to make such deduction or withholding.

		
	13.8.3
	Where any sum constituting an indemnity, compensation, reimbursement or a payment in respect of a Seller Claim by any party (the “Claimant”) to this Agreement is paid to a person other than the  Claimant but is treated as taxable in the hands of the Claimant, the payer (the “Payer”) shall promptly pay to the Claimant such sum as 

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shall reimburse the Claimant for all Tax suffered by it in respect of the payment (after giving credit for any Tax relief actually obtained by the Claimant (or any affiliate of or person with an interest in the Claimant) in respect of the matter giving rise to the payment), provided that if the Claimant (or any affiliate of or person with an interest in the Claimant) shall have changed after the date of this Agreement (i) its Tax residence or (ii) the permanent establishment to which the rights under this Agreement are allocated, then the liability of the Payer under this Clause 13.8.3 shall be limited to that (if any) which it would have been had no such change as referred to in (i) or (ii) above taken place.
		
	13.8.4
	Any payments pursuant to this Agreement shall be effected by crediting for same day value the account specified by the relevant Seller or the Purchaser (as the case may be) on behalf of the party entitled to the payment (reasonably in advance and in sufficient detail to enable payment by telegraphic or other electronic means to be effected) on or before the due date for payment.

		
	13.8.5
	Payment of a sum in accordance with this Clause 13.8 shall constitute a payment in full of the sum payable and shall be a good discharge to the payer (and those on whose behalf such payment is made) of the payer’s obligation to make such payment, and the payer (and those on whose behalf such payment is made) shall not be obliged to see to the application of the payment as between those on whose behalf the payment is received.

		
	13.9
	Costs 

Except where this Agreement provides otherwise, each party shall pay its own costs and expenses in relation to the negotiation, preparation and implementation of this Agreement and the Transaction Documents or otherwise incurred in relation to them with a view to the sale and purchase hereunder.
		
	13.10
	Stamp Duty, Fees and Taxes

The Purchaser shall bear the cost of all stamp duty, stamp duty reserve tax, stamp duty land tax, any notarial fees and all registration and transfer taxes and duties or their equivalents in all jurisdictions where such fees, taxes and duties are payable as a result of the transactions contemplated by this Agreement. The Purchaser shall be responsible for arranging the payment of such stamp duty, stamp duty reserve tax, stamp duty land tax and all other such fees, taxes and duties, including fulfilling any administrative or reporting obligation imposed by the jurisdiction in question in connection with such payment.
		
	13.11
	VAT

		
	13.11.1
	If any payment under this Agreement constitutes the consideration for a taxable supply for VAT purposes, then (i) the recipient shall provide to the payer a valid VAT invoice, and (ii) except where the reverse charge procedure applies, and subject to the provision of a valid VAT invoice in accordance with (i), in addition to that payment, the payer shall pay to the recipient any VAT due.

		
	13.11.2
	Where, under the terms of this Agreement, a party is liable to indemnify, compensate or reimburse another party or their Affiliate, in respect of any costs, charges or expenses (including, for the avoidance of doubt, in respect of a Seller Claim), the payment shall include an amount equal to any VAT properly incurred but not otherwise 

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recoverable by such person or any of their Affiliates (as applicable) (as determined by the person being indemnified, compensated or reimbursed (as applicable), acting reasonably and subject to that person and any relevant Affiliate using all reasonable endeavours to recover such amount of VAT as may be practicable).
		
	13.12
	Notices 

		
	13.12.1
	Any notice or other communication in connection with this Agreement (each, a “Notice”) shall be:

		
	(i)
	in writing;

		
	(ii)
	in English; and

		
	(iii)
	delivered by hand, fax (but only if a fax number has been provided for such purpose), pre-paid recorded delivery, pre-paid special delivery or courier using an internationally recognised courier company. 

		
	13.12.2
	A Notice to the Institutional Seller shall be sent to the Institutional Seller at the following address, or such other person or address as the Institutional Seller may notify to the other parties from time to time. Notice of any change shall be effective 10 Business Days after it is served.

CAP Group S.à r.l.,
12, rue Guillaume Kroll, L-1882, Luxembourg
Fax: +352 28 37 11 71
Attention: The Managers and Fantine Jeannon    
		
	13.12.3
	A Notice to the Management Sellers shall be sent to the Management Sellers’ Representative at the following address, or such other person or address as the Management Sellers’ Representative may notify to the other parties from time to time. Notice of any change shall be effective 10 Business Days after it is served.

Ian Rendle
6 Hamilton House, 1 Trafalgar Street, Leeds LS2 7BF
		
	13.12.4
	A Notice to any of the Institutional Investors shall be sent to Montagu Private Equity LLP at the following address, or such other person or address as any of the Institutional Investors may notify to the other parties from time to time. Notice of any change shall be effective 10 Business Days after it is served.

Montagu Private Equity LLP
2 More London Riverside, London SE1 2AP
Fax: +44 207 336 9961
Attention: Edward Shuckburgh and Wiet Stokhuyzen
		
	13.12.5
	A Notice to the Purchaser shall be sent to the following address, or such other person or address as the Purchaser may notify to the other parties from time to time. Notice of any change shall be effective 10 Business Days after it is served.

HPI Holding Limited

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Dolphin House 
New Street 
Salisbury 
Wiltshire 
SP1 2PH
Attention: Company Solicitor                
		
	13.12.6
	A Notice to Martin McCourt shall be sent to the address set out in Schedule 2 opposite his name or such other address as he may notify to the other parties from time to time. Notice of any change shall be effective 10 Business Days after it is served.

		
	13.12.7
	A Notice to Alastair Cotton shall be sent to the address set out in Schedule 2 opposite his name or such other address as he may notify to the other parties from time to time. Notice of any change shall be effective 10 Business Days after it is served.

		
	13.12.8
	A Notice shall be effective upon receipt and shall be deemed to have been received:

		
	(i)
	at 9.00 am on the second Business Day after posting, if sent by pre-paid post, or at the time recorded by the delivery service, if sent recorded delivery;

		
	(ii)
	at the time of delivery, if delivered by hand or courier; or

		
	(iii)
	if, applicable, at the time of receipt by the sender of a facsimile transmission report (or other appropriate evidence) that the fax has been transmitted to the addressee, if delivered by fax. 

		
	13.13
	Invalidity

		
	13.13.1
	If any provision in this Agreement shall be held to be illegal, invalid or unenforceable, in whole or in part, the provision shall apply with whatever deletion or modification is necessary so that the provision is legal, valid and enforceable and gives effect to the commercial intention of the parties.

		
	13.13.2
	To the extent it is not possible to delete or modify the provision, in whole or in part, under Clause 13.13.1, then such provision or part of it shall, to the extent that it is illegal, invalid or unenforceable, be deemed not to form part of this Agreement and the legality, validity and enforceability of the remainder of this Agreement shall not, subject to any deletion or modification made under Clause 13.13.1, be affected.

		
	13.14
	Counterparts

This Agreement may be entered into in any number of counterparts, all of which taken together shall constitute one and the same instrument. The Sellers and the Purchaser may enter into this Agreement by executing any such counterpart.
		
	13.15
	Continuing Obligations 

Except as otherwise expressly provided in this Agreement, each of the obligations, warranties and undertakings accepted or given by each Seller or the Purchaser or any of them under this Agreement or any document referred to herein (excluding any obligation which is fully performed on Closing) shall continue in full force and effect notwithstanding Closing taking place. 

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	13.16
	Agreement Prevails

If there is any inconsistency between the provisions of this Agreement and those of any other Transaction Document, then the provisions of this Agreement shall prevail. 
		
	13.17
	No Waiver

		
	13.17.1
	No failure or delay by any party in exercising any right or remedy provided under this Agreement shall operate as a waiver of it, nor shall any single or partial exercise of any right or remedy preclude any other or further exercise of it or the exercise of any other right or remedy. 

		
	13.17.2
	Any waiver of a breach of this Agreement shall not constitute a waiver of any subsequent breach.

		
	13.18
	Governing Law and Submission to Jurisdiction

		
	13.18.1
	This Agreement (and the other Transaction Documents which are not expressed to be governed by another law) and any non-contractual obligations arising out of or in connection with it shall be governed by, construed and take effect in accordance with English law.

		
	13.18.2
	Each of the parties irrevocably agrees that the courts of England shall have exclusive jurisdiction to settle any dispute which may arise out of or in connection with this Agreement and the other Transaction Documents, and that accordingly, any proceedings arising out of or in connection with this Agreement and the other Transaction Documents shall be brought in such courts. Each of the parties irrevocably submits to the jurisdiction of such courts and waives any objection to proceedings in any such court on the ground of venue or on the ground that the proceedings have been brought in an inconvenient forum. 

		
	13.18.3
	Each of the parties agrees that in the event of any action between any of the parties being commenced in respect of this Agreement or any matters arising under it, the process by which it is commenced (where consistent with the applicable court rules) may be served on them in accordance with Clause 13.12.

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Schedule 1 
Part A: Disclosed Transaction Costs 
	
				
	Entity
	Amount (Net of VAT)
(£)
	VAT (£)
	Specified Disclosed Transaction Costs (inclusive of VAT) 
(£)

	Linklaters LLP
	[Amount Disclosed therein]
	[Amount Disclosed therein]
	[Amount Disclosed therein]

	Ernst & Young LLP
	[Amount Disclosed therein]
	[Amount Disclosed therein]
	[Amount Disclosed therein]

	Merrill Communications LLC
	[Amount Disclosed therein]
	[Amount Disclosed therein]
	[Amount Disclosed therein]

PART B: Specific Definitions

For the purposes of this Agreement: 
“Permitted Leakage” means:
		
	(a)
	the allotment and issue of up to 1,500 A Ordinary Shares to Andrew Fellows and the transfer of up to 6,100 A Ordinary Shares and 2,400 B Ordinary Shares from Appleby Trust (Jersey) Ltd (as Trustee of the EBT) to certain of the Management Sellers, in each case prior to Closing;

		
	(b)
	the repayment, repurchase or redemption of, or payment of interest on, Loan Notes up to an aggregate amount (including principal and interest) not exceeding £5,005,814 (plus any bank transfer charges incurred in respect of such payment); 

		
	(c)
	any amounts accrued or incurred, or liability, cost or expense incurred (but not, for the avoidance of doubt, paid otherwise than in accordance with this Agreement) pursuant to and in accordance with the terms of the Loan Notes and/or the A Preference Shares;

		
	(d)
	any amounts or liability incurred or paid or agreed to be paid or payable in connection with any matter undertaken by or on behalf of any Group Company at the written request or with the written agreement of the Purchaser;

		
	(e)
	any payment made or agreed to be made by or on behalf of any Group Company pursuant to this Agreement or any Transaction Document;

		
	(f)
	any Disclosed Transaction Costs or the Management Legal Costs incurred or paid or agreed to be paid or payable; 

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	(g)
	any fees and/or expenses incurred or paid or agreed to be paid or payable to the Institutional Seller or a member of the Institutional Seller’s Group (up to a maximum aggregate amount of £66,685.00 (inclusive of VAT), together with any other reasonable and properly documented third party out of pocket expenses incurred by the Institutional Seller (in each case, whether in respect of any director appointed to any Group Company by an Institutional Seller pursuant to the terms of the Investment Agreement or otherwise);

		
	(h)
	any directors’ fees (including expenses) and/or consultancy fees incurred or paid or agreed to be paid or payable to the Management Sellers pursuant to their current director and/or consulting agreements with any Group Company, in each case, as such agreements have been disclosed in the Data Room;

		
	(i)
	the salaries and other remuneration (including expenses) and bonuses, emoluments and other entitlements incurred or paid or agreed to be paid or payable to the Management Sellers in all cases without the exercise of discretion and in accordance with their current employment agreements with any Group Company, in each case, as such agreements have been disclosed in the Data Room;

		
	(j)
	a gross amount of £[Amount disclosed therein] paid or agreed to be paid to Alastair Cotton and an amount not exceeding £5,000 (excluding VAT) paid or agreed to be paid to his legal advisers, in each case by a Group Company pursuant to a compromise agreement dated 14 November 2014;

		
	(k)
	any payment made or agreed to paid to the Sellers’ Lawyers up to an amount not exceeding £15,000 (excluding VAT) by a Group Company in connection with legal advice provided to a Group Company in respect of the compromise agreement referred to in limb (j) above; 

		
	(l)
	adviser fees in the amount of £100,000 (excluding VAT) for Ernst & Young and £75,000 (excluding VAT) for Sellers’ Lawyers paid or payable by a Group Company;

		
	(m)
	the transaction bonuses payable to Vicky Idle, Will Porter, Lorraine Young and Ross Caldwell amounting to (gross) £[Amount disclosed therein] in aggregate;

		
	(n)
	any agreement, arrangement or vote in favour to do any of the items referred to in paragraphs (a) to (m) above; and

		
	(o)
	any Tax paid or payable by any Group Company as a consequence of any of the matters referred to in paragraphs (a) to (n) above; and

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“Management Deferred Consideration” means an aggregate amount of Consideration equal to £[Amount disclosed therein] and to be apportioned among the Management Sellers (other than Martin McCourt) in accordance with their respective Sale Schedules.

    

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Schedule 2 
The Management Sellers
	
		
	Management Seller
	Address

	Ian Rendle
	[Address disclosed therein]

	Martin McCourt
	[Address disclosed therein]

	Ajay Handa
	[Address disclosed therein]

	Matthew Thompson
	[Address disclosed therein]

	Adrian Rushmore
	[Address disclosed therein]

	Andrew Fellows
	[Address disclosed therein]

	Keith Darby
	[Address disclosed therein]

	Alastair Cotton
	[Address disclosed therein]

]

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Schedule 3 
Closing Obligations 

		
	1
	Sellers’ Obligations

		
	1.1
	General Obligations

On Closing, each of the Sellers shall, severally, deliver or make available to the Purchaser transfers of the Shares set out in his/its respective Sale Schedule duly executed by the registered holders in favour of the Purchaser accompanied by the relative share certificates (or an express indemnity in the agreed form in the case of any certificate found to be missing).
		
	1.2
	Board Resolutions of the Group Companies

On Closing, each Seller shall use all rights available to him to procure the passing of board resolutions of each Group Company:
		
	1.2.1
	approving the registration of the share transfers referred to in paragraph 1.1 of this Schedule;

		
	1.2.2
	accepting the resignations referred to in paragraphs 1.3 and 1.5 of this Schedule.

		
	1.3
	Institutional Seller’s Obligations

On Closing the Institutional Seller shall deliver to the Purchaser:
		
	1.3.1
	the written resignations of each of Edward Shuckburgh and Wiet Stokhuyzen from his office as a director of any Group Company to which they are appointed as directors in the agreed form to take effect on the Closing Date;

		
	1.3.2
	evidence that it is authorised to execute this Agreement and each of the Transaction Documents to which it is a party. 

		
	1.4
	Management Sellers’ Obligations

On Closing, the Management Sellers shall each:
		
	1.4.1
	deliver or make available to the Purchaser the certificates of incorporation, corporate seals (if any), cheque books, statutory and other books of each Group Company (duly written up to (but excluding Closing) and which in the case of the members’ register of Derwent Associates (France) Limited does not record the registration of the transfer of 49 ordinary shares of £1.00 from Bernard Coste Consulting to Derwent Holding Company Limited which is pending the return of the stamped stock transfer form from HMRC’s stamp office), the share certificates in respect of each of the Company’s subsidiaries (or an express indemnity in the agreed form in the case of any certificate found to be missing); and 

		
	1.4.2
	deliver (or procure the delivery of) to the Purchaser evidence that, subject to payment of the Bank Pay-Off Amount, all security provided by any Group Company under the Existing Facilities will be released on Closing.

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	1.5
	Martin McCourt’s Obligations

Martin McCourt shall deliver his written resignation from his office as a director of CAP Automotive (Holdings) Limited in the agreed form to take effect on the Closing Date.
		
	2
	Purchaser’s Obligations

		
	2.1
	On Closing, the Purchaser shall:

		
	2.1.3
	make the payments (or procure that the relevant payments are made) as specified in Clause 4.3;

		
	2.1.4
	deliver or make available to the Sellers evidence that the Purchaser is authorised to execute this Agreement and the Purchaser’s Closing Documents;

		
	2.1.5
	issue the Consideration Securities to the Management Sellers and deliver their certificates in respect of the Consideration Securities and procure that their names are entered into the relevant registers of the Purchaser as the holders thereof; and

		
	2.1.6
	deliver or make available to the Management Sellers a legal opinion in a form agreed by Addleshaw Goddard LLP acting for the Management Sellers and the Purchaser’s Lawyers in respect of Audatex (Schweiz) GmbH.

A18786646/12.0a/20 Nov 2014

37

This Agreement has been entered into on the date first stated above.
Executed by the parties:

	
			
	Signed by                       
for and on behalf of
HPI Holding Limited
	 
	/s/ Jason Brady

	

	 
	 

	 
	 
	 

	
			
	Signed by                       
for and on behalf of
CAP Group S.à r.l.
	 
	/s/ Fantine Jeannon

	
			
	Signed 
by Ian Rendle

	 
	/s/ Ian Rendle

	
			
	Signed 
by Ajay Handa

	 
	/s/ Ajay Handa

A18786646/12.0a/20 Nov 2014

38

	
			
	Signed 
by Ian Rendle acting in his capacity as attorney for and on behalf of Matthew Vincent Thompson

	 
	/s/ Ian Rendle

	
			
	Signed 
by Ian Rendle acting in his capacity as attorney for and on behalf of Andrew Fellows

	 
	/s/ Ian Rendle

	
			
	Signed 
by Ian Rendle acting in his capacity as attorney for and on behalf of Adrian Rushmore

	 
	/s/ Ian Rendle

	
			
	Signed 
by Martin McCourt

	 
	/s/ Martin McCourt

	
			
	Signed 
by Ian Rendle acting in his capacity as attorney for and on behalf of Keith John Darby

	 
	/s/ Ian Rendle

A18786646/12.0a/20 Nov 2014

39

	
			
	Signed 
by Ian Rendle acting in his capacity as attorney for and on behalf of Alastair Hugh Cotton

	 
	/s/ Ian Rendle

	
			
	Signed by Montagu IV LP acting by its manager Montagu Private Equity LLP acting by two authorised signatories.
	 
	/s/ Graham Hislop
/s/ Authorized Person

	
			
	Signed by Montagu IV (B) LP acting by its manager Montagu Private Equity LLP acting by two authorised signatories.
	 
	/s/ Graham Hislop
/s/ Authorized Person

	
			
	Signed by Montagu IV (Non-US) LP acting by its manager Montagu Private Equity LLP acting by two authorised signatories.
	 
	/s/ Graham Hislop
/s/ Authorized Person

	
			
	Signed by Montagu IV (US) LP acting by its manager Montagu Private Equity LLP acting by two authorised signatories.
	 
	/s/ Graham Hislop
/s/ Authorized Person

A18786646/12.0a/20 Nov 2014

40SLH Exhibit - 10.3 Management Warranty Deed

	
		
	 

	Dated    20 November 2014

	HPI HOLDING LIMITED
and
THE WARRANTORS

	WARRANTY DEED
with respect to the sale and purchase of  
PM Guernsey Limited

	 
	 

	 
	 

	Linklaters LLP
One Silk Street
London EC2Y 8HQ
	 

	Telephone (+44) 20 7456 2000
	 

	Facsimile (+44) 20 7456 2222
	 

	 
	 

	Ref L-227342
	 

 

Table of Contents
1    Interpretation    1
2    Warranties    5
3    Assignment    5
4    Effect of Closing    6
5    Counterparts    6
6    Third Party Rights    6
7    Notices    6
8    Invalidity    7
9    General Provisions    7
10    Governing Law and Submission to Jurisdiction    8
Schedule 1 Warrantors    12
Schedule 2 Warranties    13
1    Accounts    13
2    Business Since the Locked Box Date    13
3    Share Capital and Constitution of the Company and the Group    14
4    Commercial Agreements    15
5    Assets    16
6    Compliance and Litigation    16
7    Anti-corruption and Sanctions    17
8    Data Protection    18
9    Employees    18
10    Pensions    19

//

2

11    Properties    19
12    Environmental    19
13    Intellectual Property    20
14    Data Security    20
15    Information Technology    21
16    Insurance    21
17    Financing    22
18    Tax    22
19    Insolvency    23
Schedule 3 Limitations on Liability    25
1    Time Limitation for Claims    25
2    Minimum Claims    25
3    Maximum Liability    25
4    Contingent Liabilities    26
5    Mitigation of Losses    26
6    Other Compensation    26
7    Remedies    26
8    Fraud    26
9    Other Limitations    26
10    Conduct of Third Party Claims    28
11    Miscellaneous    29
12    Purchaser's awareness    29
Schedule 4 The Company and the Subsidiaries    31

//

3

THIS DEED is made on  20 November 2014
BETWEEN:
		
	(1)
	HPI Holdings Limited, a company registered in England and Wales under number 06765994, whose registered office is at Dolphin House, New Street, Salisbury, Wiltshire, SP1 2PH (the “Purchaser”); and

		
	(2)
	the individuals whose names and addresses are set out in Schedule 1 hereto (together, the “Warrantors” and, each, a “Warrantor”).

Recitals:
		
	(A)
	Each of the Warrantors is, at the date of this Deed, the beneficial owner and registered holder of certain of the Shares.

		
	(B)
	Each of the Warrantors has agreed to give the warranties set out in this Deed in connection with the sale of the Shares, in each case subject to the limitations and other terms set out herein.

It is agreed:
		
	1
	Interpretation

		
	1.1
	Words and expressions defined in clause 1 of the Sale and Purchase Agreement shall (unless defined in this Deed) have the same meanings in this Deed.

		
	1.2
	In this Deed, unless the context otherwise requires:

“Anti-Corruption Laws” has the meaning given to it in Schedule 2;
“Accounts Date” means 31 December 2013;
“Audited Accounts” means the audited consolidated accounts of the CAP Automotive (Holdings) Limited for the twelve month period ended on the Accounts Date (including the notes and reports thereto);
“Company” means PM Guernsey Limited, a private limited company incorporated in Guernsey with registered number 54995 and whose registered office is at 11 New Street, St Peter Port, Guernsey GY1 3EG;
“Company Pension Scheme” means the CAP Automotive Group Personal Pension scheme administered by Scottish Widows;
“Data Protection Authority” means any body responsible for the enforcement of Data Protection Legislation;
“Data Protection Legislation” means any legislation in force from time to time which implements the European Community’s Directive 95/46/EC,Directive 2002/58/EC or any other legal act of the European Community concerning the protection and processing of personal data; 
“Data Room” means the ‘Pacific VDR’ virtual data room made available by Merrill Corporation to the Purchaser setting out the Data Room Information;
“Data Room Information” means the contents of the Data Room made available to the Purchaser as at 17 November 2014;

1

“Data Security Requirements” means, collectively, all of the following to the extent relating to Data Treatment or otherwise relating to privacy, security, or security breach notification requirements and applicable to the Group, to the conduct of the Group’s business, or to any of the Group Systems or any Group Data:  (i) the Group’s own rules, policies, and procedures (whether physical or technical in nature, or otherwise); (ii) all applicable laws; (iii) industry standards applicable to the industry in which the Group operates (including, if applicable, the Payment Card Industry Data Security Standard (PCI DSS)); and (iv) agreements, contracts, and other arrangements into which a Group Company has entered or by which it is otherwise bound;
“Data Treatment” shall mean the access, collection, use, processing, storage, sharing, distribution, transfer, disclosure, security, destruction, or disposal of any personal, sensitive, or confidential information or data (whether in electronic or any other form or medium);
“Disclosed” means fairly disclosed in or by the Disclosed Information with sufficient detail to identify the nature and scope of the matter disclosed;
“Disclosed Information” means the contents of the Disclosure Letter and the Disclosure Documents;
“Disclosure Documents” means the documents in the Data Room referred to in the specific disclosure schedule to the Disclosure Letter;
“Disclosure Letter” means the letter on or about the date of this Deed from the Warrantors to the Purchaser disclosing certain matters relating to certain of the Warranties;
"Environment" means the natural and man-made environment including all or any of the following media: air (including air within buildings and other natural or man-made structures above or below the ground), water, land, and any ecological systems and living organisms supported by those media; 
"Environmental Laws" means all applicable laws, statutes, regulations, subordinate legislation, bye-laws, common law and other national, international, federal, European Union, state and local laws, judgments, decisions and injunctions of any court or tribunal and legally binding codes of practice and guidance notes to the extent that they relate to or apply to the Environment or to the health and safety of any person;
"Environmental Licences" means any permit, licence, authorisation, approval, consent, registration or exemption required under or in relation to Environmental Law relating to either the use of the Properties or the carrying on of the Group's business;
“Group” means the Company and the Subsidiaries;
“Group Data” shall mean all business information and all personally-identifying information and data (whether of employees, contractors, consultants, customers, consumers, or other persons and whether in electronic or any other form or medium) that is accessed, collected, used, processed, stored, shared, distributed, transferred, disclosed, destroyed, or disposed of by any of the Group Systems;
“Group Systems” means all Software, computer hardware (whether general or special purpose), electronic data processing, information, record keeping, communications, telecommunications, networks, interfaces, platforms, servers, peripherals, and computer systems, including any outsourced systems and processes that are owned or used by or for the Group in the conduct of its business;

2

“Included Information” has the meaning given to it in Schedule 2;
“Intellectual Property Rights” means trade marks, service marks, rights in trade names, business names, logos or get-up, patents, petty patents, utility models, supplementary protection certificates, rights in inventions, registered and unregistered design rights, copyright (including copyright in data), semiconductor topography rights, data and database rights, rights in domain names and URLs, rights to sue for passing off, know-how, trade secrets and rights in confidential information, rights in opposition proceedings and all other rights of the same or similar effect or nature as any of the foregoing in any part of the world , whether registered or not, and  , where such rights are obtained or enhanced by registration, any registration or extension of such rights and applications and rights to apply for such registrations and extensions;
“Locked Box Accounts” means the consolidated balance sheet of the Group as at the Locked Box Date in the agreed form;
“Omitted Information” has the meaning given to it in Schedule 2;
“Owned IPR” means all Intellectual Property Rights which are owned by any Group Company;
"Properties" means:
		
	(a)
	premises known as the office suites on the 2nd Floor West, 4th Floor, Basement Store 4, Basement Store 9 and Basement Store 11 Capitol House, Bond Court Leeds; and

		
	(b)
	Unit 3 Echo Business Park, Sheet Road, Ludlow,

and "Property" shall be construed accordingly;
"Relevant Benefits" means any pension (including an annuity) allowance, lump sum, gratuity or other like benefit payable on retirement or death or by virtue of a pension sharing order or provision or in anticipation of retirement, or in connection with past service, after retirement or death for or in respect of any Relevant Person; and
"Relevant Person" means:-
any employee of the Group; 
any former employee of the Group; and
any dependant of an employee or a former employee of the Group.
“Sale and Purchase Agreement” means the agreement entered into (or to be entered into) on or about the date of this Deed between, amongst others, the Warrantors and the Purchaser relating to the acquisition by the Purchaser of the Shares;
“Sanctions” means any U.S. sanctions administered by U.S. Treasury Department’s Office of Foreign Assets Control or any equivalent sanctions or measures imposed by the United Nations and/or the European Union and/or Her Majesty’s Treasury;
“Software” means all computer software, including source code, firmware, systems, tools, data, databases and other collections of data, and all information and documentation (including manuals) related to any of the foregoing;
“Subsidiaries” means the subsidiaries and subsidiary undertakings in respect of which the Company is a parent company; 

3

“Tax Return” means any notice, return, registration, computation, report or other document required to be made or filed with any Tax Authority with respect to Tax;
“Warranties” means those warranties contained in Schedule 2; 
“Warrantors’ Representative” has the meaning given to it in Clause 7.4; 
“Warrantors’ Solicitors” means Addleshaw Goddard LLP; and
“Warranty Claim” means any claim against any or all of the Warrantors under this Deed.
		
	1.3
	In this Deed unless the context otherwise requires:

1.3.1    reference to this Deed or any other document in the agreed form includes this Deed or such other document as varied, modified or supplemented in accordance with the terms hereof;
1.3.2    references to recitals, paragraphs, clauses and schedules and sub-divisions of them, unless the context otherwise requires, are references to the Recitals, paragraphs and Clauses of, and Schedules to, this Deed and sub-divisions of them respectively;
1.3.3    references to any enactment includes references to such enactment as re-enacted, amended or extended on or before the date of this Deed and any subordinate legislation made under it on or before the date of this Deed;
1.3.4    references to a “person” include any individual, company, corporation, body corporate, firm, partnership, joint venture, association, organisation, institution, trust or agency, whether or not having a separate legal personality;
1.3.5    references to the one gender include all genders, and references to the singular include the plural and vice versa;
1.3.6    headings are inserted for convenience only and shall be ignored in construing this Deed;
1.3.7    the words “including”, “include”, “in particular” and words of similar effect shall not be deemed to limit the general effect of the words that precede them; 
1.3.8    the words “company”, “holding company”, “subsidiary” and “subsidiary undertaking” have the meanings given to them by the Companies Act 2006;
1.3.9    references to a “company” shall also be construed to include any other corporation or body corporate wherever and however incorporated or established;
1.3.10    reference to a document being “in the agreed form” is to a document in the terms agreed between the parties and for identification purposes only signed or initialled by them or on their behalf on or before the date of this Deed. and
1.3.11    references to time of the day are to London time.
		
	1.4
	In interpreting this Deed, should there be any conflict between the provisions of the Sale and Purchase Agreement and this Deed, the provisions of this Deed will take precedence over the conflicting provisions of the Sale and Purchase Agreement. 

		
	2
	Warranties

		
	2.1
	Each Warrantor individually and severally (and therefore not jointly) warrants to the Purchaser in the terms of the Warranties as at the date hereof.  

4

		
	2.2
	Each of the Warranties is given subject to:

		
	(a)
	any fact, event, circumstance or matter Disclosed; and

		
	(b)
	any limitations, exceptions or exclusions expressly provided for in this Deed (including those set out in Schedule 3).

		
	2.3
	Unless otherwise specified, where any Warranty refers to the Warrantors’ knowledge, awareness or belief (or similar expression including "so far as the Warrantors are aware"), such Warranty shall be deemed to be made in respect of each Warrantor subject to the knowledge and belief of such Warrantor, which knowledge and belief shall be interpreted to mean only those facts, matters and circumstances of which such Warrantor is actually aware (which, for the avoidance of doubt, shall exclude any implied or constructive awareness) at the date of this Deed, having made due and proper enquiry of the other Warrantors and William Porter, Victoria Idle and Ross Caldwell.

		
	2.4
	Each of the Warranties shall be construed as separate and independent and (unless expressly provided to the contrary) shall not be limited by the terms of or by reference to any of the other Warranties.

		
	2.5
	Except in the case of fraud, the Purchaser acknowledges that it does not rely on and has not been induced to enter into this Deed or any of the Transaction Documents on the basis of any warranties, representations, covenants, undertakings, indemnities or other statements whatsoever made by or on behalf of any of the Warrantors, other than the Warranties and the other provisions of this Deed and the other Transaction Documents and acknowledges that none of the Warrantors have given any such warranties, representations, covenants, undertakings, indemnities or other statements.

		
	3
	Assignment

		
	3.1
	None of the parties may assign, grant any security interest over, hold on trust or otherwise transfer any of their rights under this Deed without the prior consent in writing of the other party.  

		
	3.2
	Notwithstanding Clause 3.1:

3.2.1    the Purchaser may assign (in whole or in part) the benefit of this Deed to any other member of the Purchaser's Group provided that if such assignee ceases to be a member of the Purchaser's Group all benefits relating to this Deed assigned to such assignee shall be deemed automatically re-assigned to the Purchaser immediately before such cessation; 
3.2.2    the Purchaser or any member of the Purchaser's Group may charge and/or assign the benefit of this Deed to any bank, financial institution or security agent or other person by way of security for the purposes of or in connection with the financing or refinancing (whether in whole or in part) of any transaction contemplated by this Deed (including any additional facilities and hedging made available in connection with such financing or refinancing) and such benefit as may further be assigned to any other bank, financial institution, security agent or other person by way of security for the borrowings of the Purchaser resulting from any refinancing of the borrowings made under such financing or refinancing or to any person entitled to enforce such security or to any transferee under a valid enforcement of such security; and

5

3.2.3    the Purchaser may  assign (in whole or in part) the benefit of this Deed to any insurer providing warranties and indemnities insurance to the Purchaser’s Group in connection with this Deed,
provided that the Warrantors shall be under no greater obligation or liability thereby than if such assignment had never occurred and that the amount of loss or damage recoverable by the assignee shall be calculated as if that person had been originally named as the Purchaser in this Deed (and, in particular, shall not exceed the sum which would, but for such assignment, have been recoverable hereunder by the Purchaser in respect of the relevant fact, matter or circumstance).
		
	3.3
	Subject to clauses 3.1 and 3.2, this Deed will be binding upon and enure for the benefit of and be enforceable by the successors in title and permitted assigns of each of the parties and references to the parties will be construed accordingly.

		
	4
	Effect of Closing

The terms of this Deed (subject as specifically otherwise provided in this Deed) shall continue in force after and notwithstanding Closing and the remedies of the Purchaser in respect of any breach of any of the Warranties shall continue to subsist notwithstanding Closing, subject to any limitations, exceptions and exclusions expressly provided for in this Deed including those contained in Schedule 3.
		
	5
	Counterparts

This Deed may be entered into in any number of counterparts, all of which taken together shall constitute one and the same instrument. The parties may enter into this Deed by signing any such counterpart.
		
	6
	Third Party Rights

A person who is not a party to this Deed has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Deed but this does not affect any right or remedy of a third party which exists or is available apart from that Act. The parties may rescind, vary or terminate this Deed in accordance with its terms without the consent of or notice to any person on whom such rights are conferred.
		
	7
	Notices

		
	7.1
	Any notice or other communication in connection with this Deed (each, a “Notice”) shall be:

7.1.1    in writing; and
7.1.2    delivered by hand, fax, pre-paid recorded delivery, pre-paid special delivery or courier using an internationally recognised courier company.
		
	7.2
	For the purposes of this Clause 7, the authorised address of:

7.2.1    each of the Warrantors shall be as set out in Schedule 1, and will be copied to (i) the Warrantors’ Representative; and (ii) Warrantor’s Solicitors, marked for the urgent attention of Tim Wheldon (such copies not in themselves constituting valid service of such notice on the Warrantors); and
7.2.2    the Purchaser shall be Dolphin House, New Street, Salisbury, Wiltshire, SP1 2PH, marked “Attention: General Counsel” and will be copied to the Purchaser’s Solicitor, marked 

6

for the urgent attention of David Arnold (such copies not in themselves constituting valid service of such notice on the Purchaser),
or such other address as that party may notify to the others in writing from time to time in accordance with the requirements of this Clause 7. Notice of any change shall be effective ten Business Days after it is served.
		
	7.3
	A Notice shall be effective upon receipt and shall be deemed to have been received:

7.3.1    at 9.00 am on the second Business Day after posting or at the time recorded by the delivery service;
7.3.2    at the time of delivery, if delivered by hand or courier; or
7.3.3    at the time of transmission in legible form, if delivered by fax.
		
	7.4
	The Warrantors hereby appoint Ian Rendle as their representative (the “Warrantors’ Representative”) who may authorise the making of any request, election, proposal or consent expressed to be made on behalf of the Warrantors to the Purchaser. The Purchaser shall be entitled at its sole discretion to have regard only to, and to rely absolutely upon and act in accordance with, without any liability to any party for having relied or acted thereon, notices, including requests, elections or proposals, issued by the Warrantors’ Representative. Service of any notice or other communication on the Warrantors’ Representative shall be deemed to constitute valid service thereof on all the Warrantors. The Warrantors may by unanimous decision appoint one or more replacement Warrantors’ Representatives, provided that ten Business Days’ prior written notice of such appointment has been given to the Purchaser. The Warrantors' Representative shall not be liable to any of the Warrantors for any claims whatsoever arising from any act or omission undertaken by him in his capacity as the Warrantors' Representative, save in the case of fraud or wilful default.

		
	8
	Invalidity

		
	8.1
	If any provision in this Deed shall be held to be illegal, invalid or unenforceable, in whole or in part, the provision shall apply with whatever deletion or modification is necessary so that the provision is legal, valid and enforceable and gives effect to the commercial intention of the parties.

		
	8.2
	To the extent it is not possible to delete or modify the provision, in whole or in part, under Clause 8.1, then such provision or part of it shall, to the extent that it is illegal, invalid or unenforceable, be deemed not to form part of this Deed and the legality, validity and enforceability of the remainder of this Deed shall, subject to any deletion or modification made under Clause 8.1, not be affected.

		
	9
	General Provisions

		
	9.1
	The Purchaser may release or compromise the liability of any of the Warrantors hereunder or grant to any Warrantor time or other indulgence without affecting the liability of any other Warrantor hereunder.

		
	9.2
	Any waiver of a breach of any of the terms of this Deed or of any default hereunder shall not be deemed to be a waiver of any subsequent breach or default and shall in no way affect the other terms of this Deed.

7

		
	9.3
	Notwithstanding any provision in this Deed to the contrary, any and all obligations of the Warrantors under this Deed are several and each Warrantor shall only be responsible for fulfilling its own obligations hereunder and shall not be liable or responsible for the failure of any party to fulfil its respective obligations.

		
	9.4
	Except as otherwise expressly provided in this Deed or expressly agreed by the parties in writing, no failure to exercise and no delay on the part of any party in exercising any right, remedy, power or privilege of that party under this Deed and no course of dealing between the parties shall be construed or operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights and remedies provided by this Deed are cumulative and are not exclusive of any rights or remedies provided by law.

		
	9.5
	This Deed may be varied only by a document signed by the Purchaser and by the Warrantors’ Representative on behalf of the Warrantors.

		
	10
	Governing Law and Submission to Jurisdiction

		
	10.1
	This Deed and any non-contractual obligations arising out of or in connection with it shall be governed by and construed in accordance with the laws of England and Wales.

		
	10.2
	Each of the parties irrevocably agrees that the courts of England and Wales are to have exclusive jurisdiction to settle any dispute which may arise out of or in connection with this Deed and that accordingly any proceedings arising out of or in connection with this Deed shall be brought in such courts.

		
	10.3
	Each of the parties hereto agrees that in the event of any action between any of the parties hereto being commenced in respect of this Deed or any matters arising under it, the process by which it is commenced, (where consistent with the applicable court rules) may be served on them in accordance with Clause 7.

8

IN WITNESS whereof this Deed has been executed and delivered as a deed on the date first above written.

The Purchaser
	
			
	EXECUTED as a DEED by  
HPI HOLDING LIMITED  
acting by:
	 
	/s/ Jason Brady
/s/ Renato Giger

 
Name 
Address 

Occupation

9

The Warrantors

	
			
	EXECUTED as a DEED by  
Ajay Kumar Handa 
as a Warrantor
	 
	/s/ Ajay Kumar Handa

	/s/ Witness 
Name 
Address 

Occupation
	 
	 

	 
	 
	/s/ Ajay Kumar Handa, as attorney

	EXECUTED as a DEED by  
Adrian Ingram Rushmore 
as a Warrantor
	 
	 

	/s/ Witness  
Name 
Address 

Occupation
	 
	 

	
			
	EXECUTED as a DEED by  
Andrew Fellows 
as a Warrantor
	 
	/s/ Ajay Kumar Handa, as attorney

	/s/ Witness 
Name 
Address 

Occupation
	 
	 

10

	
			
	EXECUTED as a DEED by  
Ian Leslie Rendle 
as a Warrantor
	 
	/s/ Ian Rendle

	/s/ Witness
Name 
Address 

Occupation
	 
	 

	
			
	EXECUTED as a DEED by  
Keith John Darby 
as a Warrantor
	 
	/s/ Ajay Kumar Handa, as attorney

	/s/ Witness 
Name 
Address 

Occupation
	 
	 

	
			
	EXECUTED as a DEED by  
Matthew Vincent Thompson 
as a Warrantor
	 
	/s/ Ajay Kumar Handa, as attorney

	/s/ Witness 
Name 
Address 

Occupation
	 
	 

11

Schedule 1 
Warrantors
	
		
	(1)
Name
	(2)
Address

	Ajay Kumar Handa
	[Address set forth therein]

	Adrian Ingram Rushmore
	[Address set forth therein]

	Andrew Fellows
	[Address set forth therein]

	Ian Leslie Rendle
	[Address set forth therein]

	Keith John Darby
	[Address set forth therein]

	Matthew Vincent Thompson
	[Address set forth therein]

12

Schedule 2 
Warranties
Except where the context otherwise requires, the Warranties shall apply not only to the Company but also to each of the Subsidiaries as if they had been expressly repeated with respect to each such Subsidiary, naming each one of them in place of the Company throughout. 
		
	1
	Accounts

		
	1.5
	The Audited Accounts

The Audited Accounts have been prepared: 
1.5.1    in accordance with applicable law and with the accounting principles, standards and practices generally accepted at the Accounts Date in the United Kingdom; and
1.5.2    subject to sub-paragraph (1.1.1), on a basis consistent with that adopted in preparing the audited accounts of CAP Automotive (Holdings) Limited for the previous two financial years, so as to give a true and fair view of the assets, liabilities and state of affairs of CAP Automotive (Holdings) Limited and its subsidiaries at the Accounts Date and of the profits or losses for the period concerned and are not affected by any unusual, exceptional or non-recurring items or by any other factors rendering such profits and losses abnormally high or low.
1.5.3    Neither the profits nor the financial position of any Group Company during the two years ending on the date of this Agreement have been affected by any contract or arrangement that was not on arm's length terms and, in particular, no Group Company is, liable under applicable law to transfer or return any asset held by it to another person or to compensate another person in respect of that asset.
		
	1.6
	The Locked Box Accounts

The Locked Box Accounts:
1.6.1    other than in respect of Tax (for which see the Warranty at paragraph 18 of this Schedule) do not materially misstate the assets and liabilities of [the Group] as at the Locked Box Date and the profit and cashflows of [the Group] for the period in respect of which they have been prepared; and
1.6.2    have been prepared on bases consistent with those adopted in preparing the management accounts of CAP Automotive (Holdings) Limited. 
		
	2
	Business Since the Locked Box Date 

		
	2.6
	Since the Locked Box Date:

2.6.3    the Group has carried on its business in the ordinary and usual course and so as to maintain the same as a going concern and without any material alteration in the nature or scope of such business;
2.6.4    there has been no material adverse change in the financial or trading position of any Group Company and, to the best of the Warrantors' knowledge, information and belief, no circumstance has arisen or is likely to arise that will, or is likely to, give rise to any such change;

13

2.6.5    no Group Company has offered or agreed to offer price reductions, discounts or allowances on sales of goods or services in a manner which is materially inconsistent with its past practice, nor provided them or agreed to provide them at a cost that may materially affect the profitability of the Group;
2.6.6    no Group Company has acquired or disposed of or agreed to acquire or dispose of any material assets or assumed or incurred or agreed to assume or incur any material liabilities (including contingent liabilities) otherwise than in the ordinary course of its business and then not for an amount of more than £150,000;
2.6.7    no Group Company has entered into, or agreed to enter into, any commitment involving capital expenditure other than in the ordinary course of business;
2.6.8    other than pursuant to the Existing Facilities, intra-group transactions or credit incurred in the normal course of trading, no Group Company has borrowed or lent or agreed to borrow or lend any money and no share or loan capital has been issued or agreed to be issued by a Group Company and no loan or loan capital or share capital of a Group Company has been repaid in whole or part or has become liable to be repaid; 
2.6.9    no resolution of a Group Company has been passed, save for those representing the ordinary business of an annual general meeting, and no dividend or other distribution has been declared, made or paid by a Group Company;
2.6.10    each Group Company has paid its creditors within the times agreed with such creditors, and there has been no change in the manner or time of issue of invoices or the collection of debts.
		
	3
	Share Capital and Constitution of the Company and the Group

		
	3.4
	The information set out in Schedule 4 (The Company and the Subsidiaries) is true, accurate and not misleading in all respects.

		
	3.5
	The Shares listed in Schedule 1 to the Sale and Purchase Agreement comprise all the debt and equity securities in issue in the capital of the Company.

		
	3.6
	Save in each case for any Encumbrances which are to be discharged on or prior to Closing, there is no option, right of pre-emption, right or obligation to acquire, redeem or convert or Encumbrance on, over or affecting the share capital (whether issued or unissued and whether or not authorised capital) of any Group Company and neither the Warrantors nor any Group Company has agreed to give or create any of the foregoing and no person has claimed to be entitled to any of the foregoing.

		
	3.7
	No Group Company has redeemed or purchased or agreed to redeem or purchase any of its share capital.

		
	3.8
	Save in each case for any Encumbrances which are to be discharged on or prior to Closing, the Company directly or indirectly owns free from Encumbrances the whole of the issued share capital of the Subsidiaries. 

		
	3.9
	The Company validly exists under the laws of the country in which it is incorporated and has all requisite corporate powers and authority to own property and carry on its business as presently conducted. 

14

		
	3.10
	The Company is not the holder or beneficial owner of any shares or securities of any other person (other than the Subsidiaries) and has not agreed to acquire any such shares or securities.

		
	3.11
	No Group Company has issued any security or instrument in the nature of debt or borrowings to any person (other than another Group Company) other than: 

3.11.1    the Loan Notes; and
3.11.2    the Existing Facilities;
3.11.3    borrowings in the ordinary and normal course of trading of the Group's business.
		
	4
	Commercial Agreements 

		
	4.1
	The Data Room contains copies of the following contracts (the "Material Contracts"):

4.1.4    all subsisting contracts relating to the acquisition or disposal of any shares, property or other material assets (in excess of £150,000 in respect of each individual contract) between any Group Company and a third party in the last three years;
4.1.5    contracts with the 50 largest customers of the Group for the 12 month period preceding the date of this Deed;
4.1.6    all distribution, agency and marketing agreements or arrangements to which any Group Company is a party which are material to the business of the Group; and
4.1.7    contracts with the 50 largest suppliers to the Group for the 12 month period preceding the date of this Deed. 
		
	4.2
	There are no material outstanding liabilities or commitments of any Group Company arising from any arrangements for the acquisition or disposal of any shares, property or other assets, other than in the ordinary course of trading by any Group Company.

		
	4.3
	No Group Company is in breach of a Material Contract and no notice of termination has been served by any party to a Material Contract in respect of a Material Contract.

		
	4.4
	The Material Contracts constitute valid, binding and enforceable obligations of the relevant Group Company.

		
	4.5
	No Group Company is a party to or subject to any contract, transaction, obligation, arrangement or understanding that:

4.5.3    is not in the ordinary and usual course of business; or
4.5.4    is not wholly on arm's length terms; or
4.5.5    requires it to pay any commission, finder's fee, royalty or similar.
		
	4.6
	Save for contracts which are normal course of business and which have been sent to customers for signature and acceptance, there is no offer, tender or similar outstanding that is capable of being converted into an obligation of any Group Company by an acceptance or other act of some other person.

		
	4.7
	No Group Company is or has entered into a legally binding agreement to become a member of any joint venture, consortium, partnership or unincorporated association (other than a recognised trade association in relation to which that Group Company has no liability or obligation other than to pay annual subscription or membership fees).

15

		
	4.8
	No Group Company has given a power of attorney or any other authority (express, implied or ostensible) to any person to enter into any contract or commitment or to do anything on its behalf that is still outstanding or effective, other than to appropriate employees.

		
	4.9
	Neither entering into, nor compliance with, nor completion of the Sale and Purchase Agreement will, or is likely to result in a material breach of, or give any third party a right to terminate or vary, or result in any Encumbrance under, any contract or arrangement to which any Group Company is a party which is material to the business of the Group.

		
	4.10
	Except for any guarantee or warranty implied by law or contained in its standard terms of business, no Group Company has given any guarantee, indemnity or warranty, or made any representation, in respect of goods or services supplied or contracted to be supplied by it, nor accepted any liability or obligation that would apply after the supply of such goods or services.

		
	5
	Assets

		
	5.1
	All the assets owned or otherwise used by each Group Company in the course of its business, except for current assets acquired since the Accounts Date in the normal course of trading, are included in the Accounts.

		
	5.2
	All assets included in the Accounts and all assets acquired by any Group Company or otherwise arising since the Accounts Date (other than any assets disposed of or realised in the normal course of trading):

5.2.3    are legally and beneficially owned by the relevant Group Company;
5.2.4    are, where capable of possession, in the possession or under the control of the relevant Group Company; and
5.2.5    are free from Encumbrances (excepting rights and retention of title arrangements arising by operation of law in the ordinary and usual course of business).
		
	5.3
	Where any asset referred to in paragraph 5.1 with a value of more than £50,000 is the subject of any agreement for lease, hire or hire purchase, factoring arrangement, conditional sale or credit agreement, complete and accurate details of such agreements or arrangements are set out in the Data Room, and there has been no default in the performance or observance of any provisions of such agreements or arrangements.

		
	6
	Compliance and Litigation

		
	6.1
	Each Group Company has conducted its business in all material respects in accordance with all applicable laws and regulations (including all financial conduct and prudential regulation to which the relevant Group Company is subject) and there is no order, decree or judgment of any court or any governmental agency outstanding against any Group Company.

		
	6.2
	All necessary licences, registrations, consents, permits and authorisations (public and private) have been obtained by each Group Company to enable it to carry on its business in the places and in the manner in which such business is now carried on and all such material licences, registrations, consents, permits and authorisations are valid and subsisting.

		
	6.3
	Save as claimant in proceedings for the collection of debts arising in the ordinary course of its business: 

6.3.6    no Group Company is now engaged in any litigation or arbitration proceedings; 

16

6.3.7    to the best of the Warrantors' knowledge, there are no litigation or arbitration proceedings pending or threatened by or against any Group Company; 
6.3.8    no injunction has been granted against any Group Company; and 
6.3.9    no Group Company has given any undertaking to any court or to any third party arising out of any legal proceedings, 
in each case, which are material to the business of the Group.
		
	7
	Anti-corruption and Sanctions

		
	7.5
	 No Group Company, and to the best of the Warrantors' knowledge, no director, officer, employee, consultant, agent or other person associated with any Group Company, has engaged at any time in any activity, practice or conduct which would constitute an offence under the OECD Anti-Bribery Convention or similar applicable legislation in England and Wales, including the Bribery Act 2010 (together, the "Anti-Corruption Laws").

		
	7.6
	No Group Company, and to the best of the Warrantors' knowledge, no director, officer, employee, consultant, agent or other person associated with a Group Company is currently subject to, or has engaged in any activity or conduct that has resulted or will result in a violation of, any Sanctions.

		
	7.7
	No Group Company has been notified of any breach of applicable laws, regulations and guidance relating to Sanctions.

		
	7.8
	No Group Company, and to the best of the Warrantors' knowledge, no director, officer, employee, consultant, agent or other person associated with any Group Company is or has been the subject of any investigation, inquiry or enforcement proceedings by any governmental, administrative or regulatory body or any customer regarding any offence or alleged offence under Anti-Corruption Laws or laws and/or regulations relating to Sanctions, and, no such investigation, inquiry or proceedings have been threatened or are pending and there are no circumstances likely to give rise to any such investigation, inquiry or proceedings.

		
	7.9
	No Group Company has been excluded from participation in a public contract as a result of being convicted of bribery or corruption, including (without limitation) any exclusion under section 23 of the Public Contracts Regulations 2006 (SI 2006/5) or section 26 of the Utilities Contracts Regulations 2006 (SI 2006/6). 

		
	7.10
	To the best of the Warrantors' knowledge:

		
	7.10.1
	no Group Company's assets include any criminal property (as defined in section 340(3) of the Proceeds of Crime Act 2002, but disregarding paragraph (b) of that section); and

		
	7.10.2
	no Group Company, nor any of their respective directors or officers, have committed any offence pursuant to Part 7 of the Proceeds of Crime Act 2002.

		
	7.11
	Complete and accurate details of the anti-bribery policies and procedures adopted by the Group are set out in or attached to the Disclosure Letter.

		
	8
	Data Protection

		
	8.3
	Each Group Company has complied in all material respects with all applicable requirements (including notification requirements) of the Data Protection Legislation.

17

		
	8.4
	No notice alleging non-compliance with Data Protection Legislation (including any enforcement notice, deregistration notice or transfer prohibition notice) has been received by any Group Company from any Data Protection Authority.

		
	8.5
	No Group Company is or has been the subject of any complaint, investigation, inquiry or enforcement proceedings by any governmental, administrative or regulatory body or any customer regarding any offence or alleged offence under Data Protection Legislation, and, no such complaint, investigation, inquiry or proceedings have been threatened or are pending and, to the best of the Warrantors' knowledge, there are no circumstances likely to give rise to any such complaint, investigation, inquiry or proceedings.

		
	9
	Employees

		
	9.6
	The Data Room contains a correct and up to date schedule of (i) all of the employees and workers employed or engaged by the Group and (ii) the material terms and conditions of of such persons, as at the date on which is was uploaded to the Data Room. 

		
	9.7
	Save for increases in the normal course of business, the basis of the remuneration payable to any persons employed or engaged by the Group at the date hereof whether under a contract of service, a contract for services or otherwise is the same as that in force at the Locked Box Date, and the Company is under no legal obligation to modify the terms and conditions of, increase the rates of remuneration of, or make any bonus or incentive or other similar payment to, any of such persons at any future date. 

		
	9.8
	There are no amounts owing to any employee or worker from the Group (whether in accordance with UK or European law) other than remuneration accrued in the month prior to the Closing Date, holiday pay for the current holiday year or reimbursement of business expenses.

		
	9.9
	Copies of the employment contracts of all of the Warrantors are contained in the Disclosure Documents.

		
	9.10
	None of the employees or workers of the Group are members of any trade union, all works councils or employee representative bodies which by law or any collective bargaining agreement have the right to be informed and consulted on matters which affect the employees of the Group.

		
	9.11
	There are no terms of employment for the Warrantors which provide that a change in control of the Company (however change in control may be defined in the said document, if at all) shall entitle the said Warrantor to treat the change in control as amounting to a breach of the contract or entitling him to any payment or benefit whatsoever or entitling him to treat himself as redundant or dismissed or released from any obligation.

		
	9.12
	No Group Company is involved in any material dispute or negotiation with any employees or workers (or groups or representatives of the same) and there is nothing likely to give rise to such a dispute or claim.

		
	9.13
	To the best of the Warrantors' knowledge, every Employee or Worker of the Group who requires permission to work in the United Kingdom has current and appropriate permission to work in the United Kingdom.

		
	10
	Pensions

18

		
	10.4
	Other than the  Company Pension Scheme there is not and has not been in operation and no proposal has been announced to enter into or establish or contribute towards any arrangements, agreement, custom or practice (whether enforceable or not) for the Group to make provision for Relevant Benefits to or in respect of any Relevant Person and the Group is not under any obligation, contingent obligation or commitment (whether enforceable or not) to enter into or establish or contribute to any such agreement, arrangement, custom or practice and the Group has not provided or agreed to provide or contribute towards any Relevant Benefits for any Relevant Person on an ex-gratia basis.

		
	10.5
	The Group has at all times complied with all applicable legal and administrative requirements or obligations in respect of the provision of Relevant Benefits and as far as the Warrantors are aware, the Company Pension Scheme has been administered materially in accordance with all applicable legal and administrative requirements and in compliance with the governing documents of the Company Pension Scheme. 

		
	11
	Properties

		
	11.1
	The Properties comprise all of the premises and land owned, occupied or otherwise used in connection with the business of the Group and they are the legal and beneficial owner of such Properties.

		
	11.2
	To the best of the Warrantors' knowledge, no Group Company has any actual or contingent material liability in respect of previously-owned or previously-occupied land or buildings, any continuing liability in respect of any other property formerly owned or occupied by Group Company either as an original contracting party or by virtue of any direct covenant or Authorised Guarantee Agreement (as defined by section 16 of the Landlord and Tenant (Covenants) Act 1995) having been given on a sale or assignment to the Company or as a surety for the obligations of any other person in relation to that property.

		
	11.3
	All licences, consents and approvals required from the landlords and any superior landlords under any lease of the Properties and from their respective mortgagees (if any) have been obtained and the covenants contained in those licences, consents and approvals have been duly performed and observed.

		
	11.4
	In respect of each Property, the Company has paid the rents and observed and performed the covenants on the part of tenant and the conditions contained in any leases under which such Property is held.

		
	12
	Environmental

		
	12.1
	There is and has been in relation to the Group's business no actual pending or threatened civil criminal or administrative action communication notice or order relating to the presence in or discharge emission or migration to or from the Properties of any Hazardous Substance or any failure to comply with any Environmental Laws and the Warrantors are unaware of any circumstance which may lead to any event referred to in this clause.

		
	12.2
	The Group has obtained all requisite Environmental Licences to enable it to carry on its business. Those Environmental Licences are in full force and effect to enable the Group to carry on the same and the Group is compliant in all material respects with the terms and conditions of such Environmental Licences. There are no conditions, facts or circumstances which could result in any Environmental Licence being revoked, suspended, amended, varied, withdrawn or not renewed.

19

		
	12.3
	All environmental audits and other assessments reviews and reports conducted by or on behalf of the Group or the Warrantors or which are in the possession of the Group or the Warrantors in relation to any Properties or any of the activities of the Group are contained in the Data Room and all such statements, reports, records, correspondence and other information are complete and accurate and are not misleading. 

		
	13
	Intellectual Property

		
	13.1
	The Data Room contains complete and accurate details of: (i) all Owned IPR that is registered or the subject of applications for registration; and (ii) all material unregistered Owned IPR, and a Group Company is the sole legal and beneficial owner of the Owned IPR free from all Encumbrances.

		
	13.2
	The Group owns, or has a licence to use, all Intellectual Property Rights necessary for the Group to carry on its business in the manner and to the extent in which it is presently conducted.

		
	13.3
	All renewal, application and other official registry fees have been paid in full and steps required for the maintenance, protection and enforcement of the Owned IPR that is registered or the subject of applications for registration have been taken, and nothing has been done or omitted to be done and no circumstances exist by which a person is or will be able to seek cancellation of a registration or application of any such Owned IPR.

		
	13.4
	All confidential business information of the Group is properly and adequately documented to enable the Purchaser to acquire and retain its full benefit.

		
	13.5
	No Group Company has granted, nor is obliged to grant any licence, consent, undertaking, Encumbrance or other right in respect of any Intellectual Property Rights that it owns or licenses.

		
	13.6
	To the best of the Warrantors' knowledge, no Group Company is infringing or making unauthorised use of, or has infringed or made unauthorised use of, the Intellectual Property Rights of a third party. 

		
	13.7
	To the best of the Warrantors' knowledge, no third party is infringing or making unauthorised use of, or has infringed or made unauthorised use of, the Owned IPR.

		
	13.8
	All material licences granted to or by any Group Company in respect of Intellectual Property Rights which are either owned by a Group Company or used in relation to the business of the Group are disclosed in the Data Room, and no Group Company or, to the best of the Warrantors' knowledge, relevant third party is in breach of any such licence.

		
	14
	Data Security

		
	14.1
	Each Group Company has implemented, is in compliance with, and has been in compliance with, such Data Security Requirements as are necessary to ensure the integrity and security of, and to prevent the unauthorised access to or use of, any of the Group Systems, transactions executed thereby, and of all Group Data.

		
	14.2
	No notices have been received by, and no claims, charges or complaints have been made against, the Group by any governmental authority or other person alleging a violation of any Data Security Requirements.

		
	14.3
	To the best of the Warrantors' knowledge, there have not been any actual or alleged incidents of data security breaches, unauthorised access or use of any of the Group Systems, or 

20

unauthorised acquisition, destruction, damage, disclosure, loss, corruption, alteration, or use of any Group Data.
		
	15
	Information Technology

		
	15.1
	The Group owns, or has a licence to use, all Group Systems necessary for the Group to carry on its business in the manner and to the extent in which it is presently conducted, and all such Group Systems shall be owned or available for use by the Group immediately after Closing on terms and conditions identical to those under which the Group owned or used such Group Systems immediately before Closing.

		
	15.2
	All Group Systems are in good working order and function materially in accordance with the specifications applicable to them.

		
	15.3
	The Group has taken all steps deemed necessary by it to ensure that the business can continue in all material respects in the event of a failure of the Group Systems and has up to date disaster recovery plans.

		
	15.4
	In the three year period prior to Closing, there have been no bugs in or failures of the Group Systems that have: (i) caused the material interruption in or use of such Group Systems; (ii) resulted in the loss or corruption of customer data; or (iii) caused any Group Company to breach service level agreements or warranties with customers.

		
	15.5
	Each Group Company is compliant in all respects with the terms of all licences in respect of any third party Software, including open source Software, used in the business of the Group, and all software licences are disclosed in the Data Room.

		
	15.6
	None of the Software owned or developed by the Group is used, distributed, licensed or hosted in such a way as to subject such Software to the GNU general public licence (GPL), limited general public licence (LGPL) or other licence that would require such Software to be: (i) disclosed in source code form; (ii) licensed for the purpose of making derivative works, or (iii) redistributable at no charge.

		
	16
	Insurance

		
	16.1
	Complete and accurate details of the insurance policies in respect of which any Group Company has an interest are contained in the Data Room.

		
	16.2
	In respect of the insurance policies referred to in paragraph 16.1:

		
	16.3
	all policies are in full force and effect;

		
	16.4
	all premiums and any related insurance premium taxes have been duly paid to date, the premiums payable are not in excess of normal rates and no circumstances exist which are likely to give rise to any increase in premiums; and

		
	16.5
	no circumstances have arisen that would render any of the policies void, voidable or unenforceable for illegality or otherwise. 

		
	16.6
	Details of all insurance claims made during the past three years are contained in the Disclosure Letter.

		
	16.7
	No insurance claim is outstanding and no circumstances exist which are likely to give rise to any insurance claim.

		
	17
	Financing

21

		
	17.1
	The Company has not discounted or factored its debts or entered into any off-balance sheet financing arrangements.

		
	17.2
	The Company does not own the benefit of any debt (whether present or future) other than debts accrued to it in the ordinary course of its business.

		
	17.3
	Other than in respect of the Existing Facilities or in the ordinary course of trading, the Group has not created or agreed to create any Encumbrance or entered into or agreed to give or enter into any guarantee, suretyship, indemnity or similar commitment or agreement for the postponement or subordination of debt.

		
	18
	Tax

		
	18.1
	The Locked Box Accounts include proper and sufficient provision or reserve (as appropriate) for Tax liable to be assessed on the Group or for which a Group Company is accountable in respect of profits earned, accrued or received on or before the Locked Box Date, and in respect of any event occurring or deemed to have occurred on or before the Locked Box Date. Proper and sufficient provision has been made and shown in the Locked Box Accounts for deferred Tax.

		
	18.2
	Each Group Company has timely and correctly submitted all claims for reliefs and disclaimers relating to Tax which are reflected in or have been assumed for the purposes of the Locked Box Accounts.

		
	18.3
	All payments which have fallen due for payment by or on behalf of each Group Company with respect to Tax before the date of hereof have been duly and timely made, and no Tax Authority is asserting any claim against any Group Company or any other person with respect to any such payment.

		
	18.4
	All Tax Returns that are or have been required by applicable law to be filed on or before the date hereof by each Group Company have been timely filed within the requisite period and on a proper basis and such Tax Returns were (when filed) true and correct in all material respects and none of them is, the subject of any dispute with or investigation by any Tax Authority.

		
	18.5
	All such withholdings and deductions relating to Tax as are required by applicable law to be made by each Group Company (including, for the avoidance of doubt, all amounts in respect of Tax which each Group Company is required to deduct and account for with respect to its lenders, officers, employees, consultants or contractors) on or before the date hereof have in all material respects been made properly and in a timely manner and have been duly accounted for and delivered to the relevant authorities.

		
	18.6
	None of the assets which are owned by any Group Company are the subject of any charge, power of sale or mortgage in favour of any Tax Authority.

		
	18.7
	No Group Company is or has been, during the three year period prior to the date hereof, subject to any non-routine audit, investigation, discovery, dispute or litigation involving any Tax Authority nor are there any circumstances in existence which could reasonably be expected to result in any such investigation, dispute or litigation. 

		
	18.8
	The amount of Tax chargeable on each Group Company during the three year period prior to the date hereof has not depended to any material extent on any unpublished or informal concessions, agreements or other informal arrangements with any Tax Authority.

22

		
	18.9
	Each Group Company is and always has been resident for Tax purposes only in the jurisdiction in which it is incorporated, and no Group Company has or has ever had asserted against it by any Tax Authority any liability to Tax in any other jurisdiction by virtue of having or trading through a permanent establishment, branch or agency in such other jurisdiction.

		
	18.10
	Each Group Company has kept and maintained complete and accurate records, invoices and other information in relation to Tax as enable the tax liabilities of each Group Company to be calculated accurately in all material respects.

		
	18.11
	No Group Company has, during the three year period prior to the date hereof, paid or had demanded from it any Tax to which it is liable in a representative capacity or which is not its primary liability and there are no circumstances in existence which could reasonably be expected to result in any such secondary liability arising.

		
	18.12
	Neither the execution nor completion of this agreement will result in any Group Company becoming liable to any Tax, losing the benefit of any relief from Tax or suffering any clawback or disallowance with respect to any previously applicable relief or exemption for any Tax purpose, in each case by reference to any prior transaction entered into by that Group Company with any person with which it formed a group or was otherwise related to or connected with for any relevant Tax purpose.

		
	18.13
	Each Group Company is, where applicable, duly registered and is a taxable person for the purposes of VAT and each Group Company and any other company which has been treated as a member of the same group of companies as a Group Company for the purposes of VAT has complied in all material respects with all statutory requirements, orders, provisions, directions or conditions relating to such value added tax or equivalent (including as regards the maintenance of correct and up-to-date records and the terms of any written agreement reached with any appropriate Tax Authority).

		
	18.14
	All material documents to which each Group Company is a party which establish or are necessary to establish the title of that Group Company to any asset, or to enforce any rights and which attract (or would at the time have attracted) stamp duty, stamp duty land tax or any other applicable stamp, transfer, registration or documentary taxes (other than those documents which have ceased to have any legal effect) have been properly stamped.

		
	19
	Insolvency

		
	19.1
	The Company is not insolvent under the laws of its jurisdiction of incorporation or unable to pay its debts, including its future and prospective debts.

		
	19.2
	The Company has not proposed any arrangement of any type with its creditors or any group of creditors whether by court process or otherwise under which such creditors shall receive or be paid less than the amounts contractually or otherwise due to them.

		
	19.3
	Neither the Company nor any director or creditor of the Company has presented any petition, application or other proceedings for any administration order, creditors' voluntary arrangement or similar relief by which the affairs, business or assets of the company concerned are managed by a person appointed for the purpose by a court, governmental agency or similar body, or by any director or creditor or by the company itself, nor has any such order or relief been granted or appointment made.

23

		
	19.4
	No order has been made, petition or application presented, resolution passed or meeting convened for the purpose of winding-up the Company or whereby the assets of the Company are to be distributed to creditors or shareholders or other contributories of the Company.

		
	19.5
	No receiver (including administrative receiver), liquidator, trustee, administrator, supervisor, nominee, custodian or similar official has been appointed in respect of the whole or any part of the business or assets of the Company nor has any event taken place or is likely to take place as a consequence of which such an appointment might be made.

		
	19.6
	No creditor of the Company has taken, or is entitled to take any steps to enforce, or has enforced any security over any assets of the Company or is likely to do so in the immediate future.

24

Schedule 3 
Limitations on Liability
		
	1
	Time Limitation for Claims

		
	1.7
	No Warrantor shall be liable in respect of any Warranty Claim, and any such Warranty Claim shall be wholly barred and unenforceable, unless the Purchaser has given to the Warrantors written notice of such Warranty Claim specifying (in reasonable detail) the matter(s) which gives rise to the Warranty Claim, the nature of the claim and (if practicable) the amount claimed in respect thereof as soon as reasonably practicable after the Purchaser becomes aware of the Warranty Claim and in any event by not later than 5.00 pm on the date falling:

1.7.11    in respect of any Warranty Claim pursuant to paragraph 18 (Tax) of Schedule 2, 18 months after the date of this Deed; and
1.7.12    in respect of any other Warranty Claim, 12 months after the date of this Deed. 
		
	1.8
	Any Warranty Claim notified pursuant to paragraph 1.1 shall (if it has not been previously satisfied, settled or withdrawn) be deemed to be irrevocably withdrawn, unless legal proceedings in respect of the relevant Warranty Claim (i) have been commenced by being both issued and served and (ii) are being and continue to be pursued with reasonable diligence within six months of the relevant time limit specified in Paragraph 1.1 above (or, in the case of a contingent liability, six months after the contingent liability (written notice of which has been provided to the Warrantors in the time limits required to serve notice of any Warranty Claim) becomes an actual liability). 

		
	2
	Minimum Claims

		
	2.7
	The Warrantors shall not be liable in respect of any individual claim (or a series of claims arising from substantially identical facts, matters or circumstances) where the liability agreed or determined (disregarding the provisions of this paragraph 2) in respect of any such claim or series of claims does not exceed £25,000.

		
	2.8
	The Warrantors shall not be liable in respect of any claim unless and until the aggregate amount that would otherwise be recoverable from the Warrantors in respect of all claims (but for this paragraph and after giving due effect to paragraph 2.1 above in relation to any individual claim) exceeds £325,000.

		
	2.9
	Where the aggregate amount claimed in respect of any such claim or series of claims exceeds £325,000 the relevant Warrantors shall be liable for the full amount of such claim or series of claims and not simply the excess.

		
	3
	Maximum Liability

		
	3.12
	The liability of each Warrantor in respect of any Warranty Claim will not exceed the proportion of the liability under the Warranty Claim which is equal to that percentage that each Warrantor’s holding of Ordinary Shares in the Company represents all of the Ordinary Shares held by the Warrantors, subject always to the maximum limit on liability of that Warrantor set out in paragraph 3.2 below, whichever is the lesser.

		
	3.13
	The aggregate liability of each Warrantor in respect of all Warranty Claims shall not exceed an amount equal to 20% of the aggregate of the Management Cash Consideration and the Management Deferred Consideration actually received by each Warrantor net of Tax.

25

		
	3.14
	Notwithstanding the foregoing, the maximum aggregate liability of each Warrantor in respect of all Seller Claim(s) (other than, subject to Clause 5.4 of the Sale and Purchase Agreement, any Seller Claim in respect of Leakage) shall not exceed an amount equal to the Consideration (net of Tax) actually received in cash by such Seller at the relevant time. 

		
	4
	Warrantor's Knowledge

		
	4.11
	No Warrantor shall be liable in respect of any Warranty Claim unless, and then to the extent only that, at the date of this Deed he had actual knowledge of the facts, matters, circumstances or events giving rise to the Warranty Claim. For such purposes actual knowledge shall be interpreted to include only those facts, matters and circumstances of which each Warrantor is actually aware (which, for the avoidance of doubt, shall exclude any implied or constructive awareness) at the date of this Deed, having made due and proper enquiry of the other Warrantors and William Porter, Victoria Idle and Ross Caldwell. For the avoidance of doubt, the parties acknowledge that to the extent that this paragraph 4 is sought to be relied upon as a defence to any Warranty Claim, the burden of proof shall reside with the Purchaser.

		
	5
	Contingent Liabilities

The Warrantors shall not be liable in respect of any Warranty Claim liability which is contingent or is not otherwise capable of being quantified unless and until such contingent liability becomes an actual liability and is due and payable or (as the case may be) such liability becomes capable of being quantified but this Clause shall not operate to avoid a claim made in respect of a contingent liability within the time limit specified in, and specifying the matters set out in, paragraph 1.1.
		
	6
	Mitigation of Losses

Nothing in this Deed shall relieve or abrogate the Purchaser of any common law or other duty to mitigate any loss or damage in respect of a Warranty Claim.
		
	7
	Other Compensation

		
	7.12
	No Warrantor shall be liable in respect of any Warranty Claim to the extent that:

7.12.1    the loss or damage giving rise to the Warranty Claim is recovered by the Purchaser’s Group (i) under the acquisition agreements for the acquisition of Derwent Holding Company Limited (contained at 6.16.3 of the Data Room) (and the Purchaser acknowledges that it shall be required to bring any such claim first under such agreement before seeking to recover from any Warrantor)  or (ii) from any third party or under any policy of insurance or would have been so recoverable but for the Purchaser’s Group failing to maintain insurance substantially in the form held by any Group Company as at the date of Closing; or
7.12.2    the fact, matter, event or circumstance giving rise to such Warranty Claim is remediable and is remedied (at no cost to the Purchaser’s Group or the Group) within 60 Business Days of the date on which written notice of such Warranty Claim is served on the Warrantors; or
7.12.3    there are any corresponding savings by or net quantifiable financial benefit to any member of the Purchaser’s Group arising from losses or the facts giving rise to such losses (for example where the amount (if any) by which any Tax for which any member of the Purchaser’s Group would otherwise have been accountable or liable to be assessed is actually reduced or extinguished as a result of the matter giving rise to such liability).

26

		
	8
	Remedies

The sole remedy of the Purchaser for any breach of the Warranties will be an action for damages for breach of this Deed.
		
	9
	Fraud

None of the limitations contained in this Schedule 3 shall apply to any Warranty Claim against a Warrantor which arises or is increased, or to the extent to which it arises or is increased, as the consequence of, or which is delayed as a result of, fraud by such Warrantor.
		
	10
	Other Limitations

No Warrantors shall be liable in respect of any Warranty Claim to the extent that: 
		
	10.6
	the Warranty Claim or the events giving rise to the Warranty Claim would not have arisen but for any act, omission or transaction of the Purchaser’s Group after Closing, otherwise than in the ordinary course of business;

		
	10.7
	clear and specific provision in respect of the matter giving rise to the Warranty Claim has been made in the Locked Box Accounts;

		
	10.8
	the Warranty Claim occurs wholly or partly out of or the amount thereof is increased as a result of: 

10.8.1    any change in the accounting principles or practices of the Group (including the length of any accounting period for tax purposes) introduced after Closing; or 
10.8.2    any increase in the rates of Tax made after the date if this Deed;
10.8.3    any change in law or regulation or in its interpretation or administration by any court with jurisdiction, by a Tax Authority or by any other fiscal monetary or regulatory authority after the date hereof; or
10.8.4    the liability giving rise to the Warranty Claim occurs or arises or is increased as a result of any act, transaction, arrangement or omission carried out by or at the request of or with the approval of the Purchaser or any member of the Purchaser's Group or their respective directors, employees or agents on or after the date of this Deed otherwise than (i) in the ordinary course of business as carried out at the date of this Deed or (ii) pursuant to a legally binding agreement entered into by any Group Company prior to the date of this Deed; or
10.8.5    the Warranty Claim relates to a claim or liability for Tax which arises as a result of or by reference to actual (and not deemed) profits, income or gains accruing, or any other event occurring, in the ordinary course of business of the relevant Group Company after the Locked Box Date; 
10.8.6    the Warranty Claim relates to a claim or liability for Tax which arises as a result of or by reference to income, profits or gains actually earned or received by, or which accrued to, any Group Company on or before the Locked Box Date and not reflected in the Locked Box Accounts; or
10.8.7    to the extent that the Warranty Claim relates to a claim or liability for Tax which would not have arisen or would have been reduced or eliminated but for a failure on the part of any Group Company to make any claim, election, surrender or disclaimer or give any notice or 

27

consent or do anything after Closing the making, giving or doing of which was taken into account in computing the provision for Tax in the Locked Box Accounts; or
10.8.8    the Warranty Claim relates to a claim or liability to Tax which arises by virtue of a voluntary disclaimer of or revision of a valid claim for any Tax relief after Closing which has the effect of increasing the Tax Liability of any Group Company; or
10.8.9    the liability giving rise to the Warranty Claim arises or is increased or extended as a result of any change in the accounting reference date of the Purchaser, any member of the Purchaser's Group, or any Group Company made on and/or after Closing; or
10.8.10    the Warranty Claim relates to any interest or penalties to the extent that such interest or penalties are attributable to unreasonable delay by any Purchaser’s Group Company after Closing; or
10.8.11    the liability giving rise to the Warranty Claim arises or is increased or extended as a result of any change in the accounting basis, policy or practice or approach of, or applicable to any Group Company or the Purchaser or any member of the Purchaser's Group, or any change in the way an accounting basis is adapted for Tax purposes, in each case, made on and/or after Closing save where such change is required to conform such policy or practice with generally accepted policies or practices or where such change is necessary to correct an improper policy or practice; 
10.8.12    the liability giving rise to the Warranty Claim arises or is increased or extended as a result of any cessation of, or any change in the nature or conduct of any business carried on by any Group Company or any increase in capital of any Group Company occurring on and/or after Closing; or
10.8.13    the liability giving rise to the Warranty Claim arises in implementing the terms of this Deed, the Sale and Purchase Agreement or any document or agreement to be entered into pursuant to this Deed or the Sale and Purchase Agreement.
		
	11
	Conduct of Third Party Claims

		
	11.5
	Paragraph 10 shall apply in circumstances (save for any circumstances in which a Warranty Claim (excluding a Warranty Claim pursuant to paragraph 18 of Schedule 2) which could, in the reasonable opinion of the Purchaser, reasonably result in criminal liability or reputational damage to the Purchaser or any member of the Purchaser’s Group) where:

11.5.1    any claim is made against the Purchaser’s Group which may give rise to a Warranty Claim by the Purchaser against any Warrantor;
11.5.2    the Purchaser’s Group is or may be entitled to make recovery from some other person of any sum in respect of any facts or circumstances by reference to which the Purchaser has or may have a Warranty Claim against the Warrantors; or
11.5.3    the relevant Warrantors shall have paid to the Purchaser (or, as appropriate, a Purchaser’s Group Company) an amount in respect of a Warranty Claim and subsequent to the making of such payment the Purchaser becomes or shall become entitled to recover from some other person a sum which is referable to that payment.
		
	11.6
	The Purchaser shall and shall procure that each relevant member of the Purchaser’s Group shall, prior to taking any action against the relevant Warrantors under the Warranties in the 

28

case of paragraphs 11.1.1 and 11.1.2 above save to notify the potential Warranty Claim under paragraph 1 above:
11.6.3    promptly and diligently take all such action as the relevant Warrantors may reasonably request (including the institution of proceedings and the instruction of professional advisers approved by the Warrantors to act on behalf of the Purchaser and/or each relevant member of the Purchaser’s Group) to avoid, dispute, resist, compromise, defend or appeal against any such claim against the Purchaser as is referred to in paragraph 11.1.1 or to make such recovery by the Purchaser as is referred to in paragraph 11.1.2 or paragraph 11.1.3, as the case may be, in accordance with the reasonable instructions of the relevant Warrantors to the extent that such action shall be delegated entirely to the relevant Warrantors in each case on the basis that the Warrantors will indemnify the Purchaser and any member of the Purchaser’s Group for all reasonable costs properly incurred as a result of a request by any Warrantor;
11.6.4    not settle or compromise any liability or claim to which such action is referable without the prior written consent of the relevant Warrantors (not to be unreasonably withheld or delayed); 
		
	11.7
	Notwithstanding paragraph 11.2 above, neither the Purchaser nor any Purchaser’s Group Company shall be required to take any action or refrain from taking any action, if the Purchaser nor any Purchaser’s Group Company concerned, reasonably considers such action or omission would be unduly onerous or materially prejudicial to it or to the Purchaser’s or any Purchaser Group Company’s business.

		
	11.8
	In the case of paragraph 11.1.1 and 11.1.2 and in the event that the Purchaser or a member of the Purchaser’s Group recovers any amount from any person pursuant to paragraph 11.2, then the amount of any Warranty Claim in respect of the same loss against the Warrantors shall be reduced by the amount recovered.

		
	11.9
	In the case of paragraph 11.1.3 only, promptly repay to the relevant Warrantors an amount equal to the amount so recovered (less reasonable costs incurred in effecting such recovery) or, if lower, the amount paid by the relevant Warrantors to the Purchaser (or, as appropriate, the Purchaser’s Group).

		
	11.10
	The Purchaser shall as soon as reasonably practicable:

11.10.1    inform the relevant Warrantors in writing upon it becoming aware of any claim against the Purchaser’s Group which may give rise to a Warranty Claim by the Purchaser against the relevant Warrantors or of any fact or circumstance which gives rise or may give rise to an entitlement to make recovery from some other person as set out in paragraphs 11.1.2 or 11.1.3
11.10.2    thereafter keep the relevant Warrantors reasonably informed of all developments in relation thereto; and
11.10.3    provide all such information and documentation (no matter how it is recorded or stored) as the relevant Warrantors shall reasonably request in connection therewith.
		
	12
	Miscellaneous

		
	12.4
	Any payment to the Purchaser, the Purchaser’s Group or the Company or any of the Group Companies under the Warranties shall be deemed to be a reduction of the total Consideration 

29

(as defined in the Sale and Purchase Agreement) received by the relevant Warrantor who has made such payment.
		
	12.5
	Payment of any amount pursuant to a Warranty Claim shall pro tanto satisfy and discharge any other Warranty Claim or other claim pursuant to the Sale and Purchase Agreement against the Warrantors which is capable of being made in respect of the same loss and the Purchaser shall at all times procure that there is no duplication of any Warranty Claim under the Warranties relating to the same loss.

		
	12.6
	The sole remedy of the Purchase for any breach of the Warranties will be an action for damages.

		
	13
	Purchaser's awareness

The Warrantors shall not be liable for any Warranty Claim if and to the extent the Purchaser is actually aware at the date of this Deed of the facts, matters or circumstances which give rise to such Warranty Claim. For the purposes of this Deed the Purchaser’s awareness shall be deemed to be the actual awareness of Gordon Metz and David Dixon. For the avoidance of doubt, the parties acknowledge that to the extent that this paragraph 13 is sought to be relied upon as a defence to any Warranty Claim brought by the Purchaser, the burden of proof shall reside with the Warrantors.

30

Schedule 4 
The Company and the Subsidiaries
		
	1
	UNITED KINGDOM

		
	1.1
	CAP Automotive (Holdings) Limited

	
		
	COMPANY DETAILS

	Current Name of Company
	CAP Automotive (Holdings) Limited

	Type of Company
	Private Limited Company

	Company Number
	8032451

	Date and Place of Incorporation
	16/04/2012, United Kingdom

	Original Name of Incorporation
	PM Debtco Limited

	Registered Office
	Capitol House
Bond Court
Leeds
LS1 5EZ

	Names of Directors
	Ajay Kumar Handa
Ian Leslie Rendle
Martin McCourt
Edward Jonathan Tymms Shuckburgh
Wiet Austin Stokhuyzen

	Company Secretary
	None

	Number of Shares in Issue (and class of shares)
	327,234 Ordinary Shares of £1

	Names of Shareholders (and details of their shareholding)
	PM Guernsey Ltd:
327,234 Ordinary Shares

31

		
	1.2
	CAP Midco Limited

	
		
	COMPANY DETAILS

	Current Name of Company
	CAP Midco Limited

	Type of Company
	Private Limited Company

	Company Number
	8033124

	Date and Place of Incorporation
	17/04/2012, United Kingdom

	Original Name of Incorporation
	PM Midco Limited

	Registered Office
	Capitol House
Bond Court
Leeds
LS1 5EZ

	Names of Directors
	Ajay Kumar Handa
Ian Leslie Rendle

	Company Secretary
	None

	Number of Shares in Issue (and class of shares)
	327,234 Ordinary Shares of £1

	Names of Shareholders (and details of their shareholding)
	CAP Automotive (Holdings) Ltd:
327,234 Ordinary Shares

32

		
	1.3
	CAP Automotive Limited

	
		
	COMPANY DETAILS

	Current Name of Company
	CAP Automotive Limited

	Type of Company
	Private Limited Company

	Company Number
	8033745

	Date and Place of Incorporation
	17/04/2012, United Kingdom

	Original Name of Incorporation
	PM Bidco Limited

	Registered Office
	Capitol House
Bond Court
Leeds
LS1 5EZ

	Names of Directors
	Ajay Kumar Handa
Ian Leslie Rendle

	Company Secretary
	None

	Number of Shares in Issue (and class of shares)
	327,234 Ordinary Shares of £1

	Names of Shareholders (and details of their shareholding)
	CAP Midco Ltd:
327,234 Ordinary Shares

33

		
	1.4
	Derwent Holding Company Limited

	
		
	COMPANY DETAILS

	Current Name of Company
	Derwent Holding Company Limited

	Type of Company
	Private Limited Company

	Company Number
	4983736

	Date and Place of Incorporation
	03/12/2003, United Kingdom

	Original Name of Incorporation
	Derwent Holding Company Limited

	Registered Office
	Capitol House
Bond Court
Leeds
LS1 5EZ

	Names of Directors
	Keith John Darby
Ajay Kumar Handa
Ian Leslie Rendle

	Company Secretary
	None

	Number of Shares in Issue (and class of shares)
	100 Ordinary Shares of £1

	Names of Shareholders (and details of their shareholding)
	CAP Automotive Ltd:
100 Ordinary Shares

34

		
	1.5
	Derwent Management Services Limited

	
		
	COMPANY DETAILS

	Current Name of Company
	Derwent Management Services Limited

	Type of Company
	Private Limited Company

	Company Number
	3206215

	Date and Place of Incorporation
	31/05/1996, United Kingdom

	Original Name of Incorporation
	Derwent Management Services Limited

	Registered Office
	Capitol House
Bond Court
Leeds
LS1 5EZ

	Names of Directors
	Keith John Darby
Ajay Kumar Handa
Ian Leslie Rendle

	Company Secretary
	None

	Number of Shares in Issue (and class of shares)
	100 Ordinary Shares of £1

	Names of Shareholders (and details of their shareholding)
	Derwent Holding Company Ltd:
100 Ordinary Shares

35

		
	1.6
	Velox Associates Limited

	
		
	COMPANY DETAILS

	Current Name of Company
	Velox Associates Limited

	Type of Company
	Private Limited Company

	Company Number
	6855579

	Date and Place of Incorporation
	23/03/2009, United Kingdom

	Original Name of Incorporation
	Velox Associates Limited

	Registered Office
	Capitol House
Bond Court
Leeds
LS1 5EZ

	Names of Directors
	Ajay Kumar Handa
Ian Leslie Rendle

	Company Secretary
	None

	Number of Shares in Issue (and class of shares)
	100 Ordinary Shares of £1

	Names of Shareholders (and details of their shareholding)
	Derwent Holding Company Ltd:
100 Ordinary Shares

36

		
	1.7
	Derwent Associates (France) Limited

	
		
	COMPANY DETAILS

	Current Name of Company
	Derwent Associates (France) Limited

	Type of Company
	Private Limited Company

	Company Number
	6071293

	Date and Place of Incorporation
	29/01/2007, United Kingdom

	Original Name of Incorporation
	Derwent Avanti Limited

	Registered Office
	Capitol House
Bond Court
Leeds
LS1 5EZ

	Names of Directors
	Ajay Kumar Handa
Ian Leslie Rendle

	Company Secretary
	None

	Number of Shares in Issue (and class of shares)
	100 Ordinary Shares of £1

	Names of Shareholders (and details of their shareholding)
	Derwent Holding Company Ltd:
51 Ordinary Shares

Bernard Coste Consulting:
49 Ordinary Shares

37

		
	1.8
	Derwent Associates (UK) Limited

	
		
	COMPANY DETAILS

	Current Name of Company
	Derwent Associates (UK) Limited

	Type of Company
	Private Limited Company

	Company Number
	6071462

	Date and Place of Incorporation
	29/01/2007, United Kingdom

	Original Name of Incorporation
	Derwent Associates (Italy) Limited

	Registered Office
	Capitol House
Bond Court
Leeds
LS1 5EZ

	Names of Directors
	Ajay Kumar Handa
Ian Leslie Rendle

	Company Secretary
	None

	Number of Shares in Issue (and class of shares)
	100 Ordinary Shares of £1

	Names of Shareholders (and details of their shareholding)
	Derwent Holding Company Ltd:
100 Ordinary Shares

38

		
	1.9
	Tangent Business Solutions Limited

	
		
	COMPANY DETAILS

	Current Name of Company
	Tangent Business Solutions Limited

	Type of Company
	Private Limited Company

	Company Number
	5834167

	Date and Place of Incorporation
	01/06/2006, United Kingdom

	Original Name of Incorporation
	Tangent Business Solutions Limited

	Registered Office
	Capitol House
Bond Court
Leeds
LS1 5EZ

	Names of Directors
	Keith John Darby
Ajay Kumar Handa
Ian Leslie Rendle

	Company Secretary
	None

	Number of Shares in Issue (and class of shares)
	102 Ordinary Shares of £1

	Names of Shareholders (and details of their shareholding)
	Derwent Holding Company Ltd:
102 Ordinary Shares

39

		
	1.10
	DMS Iberia Limited

	
		
	COMPANY DETAILS

	Current Name of Company
	DMS Iberia Limited

	Type of Company
	Private Limited Company

	Company Number
	7913386

	Date and Place of Incorporation
	17/01/2012, United Kingdom

	Original Name of Incorporation
	DMS Iberia Limited

	Registered Office
	Capitol House
Bond Court
Leeds
LS1 5EZ

	Names of Directors
	Ajay Kumar Handa
Ian Leslie Rendle

	Company Secretary
	None

	Number of Shares in Issue (and class of shares)
	100 Ordinary Shares of £1

	Names of Shareholders (and details of their shareholding)
	Derwent Holding Company Ltd:
100 Ordinary Shares

40

		
	2
	GUERNSEY

		
	2.1
	PM Guernsey Limited

	
		
	COMPANY DETAILS

	Current Name of Company
	PM Guernsey Limited

	Type of Company
	Non-cellular company limited by shares

	Company Number
	54995

	Date and Place of Incorporation
	20/04/2012, Guernsey

	Original Name of Incorporation
	PM Guernsey Limited

	Registered Office
	P.O. Box 25
Regency Court
Glategny Esplanade
St Peter Port
Guernsey
GY1 3AP

	Names of Directors
	Ian Rendle
Wiet Stokhuyzen
Edward Shuckburgh
Ajay Handa

	Company Secretary
	Legis Secretarial Services Limited Guernsey

	Number of Shares in Issue (and class of shares)
	485,050 A Ordinary Shares of £0.10
10,950 B Ordinary Shares of £1
614,838 A Preference Shares of £0.00002

41

	
		
	Names of Shareholders (and details of their shareholding)
	PM Group S.à r.l:
440,000 A Ordinary Shares
614,838 A Preference Shares

Ian Rendle:
18,850 A Ordinary Shares
1,150 B Ordinary Shares

Ajay Handa:
6,100 A Ordinary Shares
2,400 B Ordinary Shares

Employee Benefit Trust:
6,100 A Ordinary Shares
2,400 B Ordinary Shares

Alistair Cotton:
3,600 A Ordinary Shares
2,400 B Ordinary Shares

Martin McCourt:
4,900 A Ordinary Shares
2,600 B Ordinary Shares

Matt Thompson:
2,000 A Ordinary Shares

Keith Darby:
2,500 A Ordinary Shares

Andrew Fellows:
1,000 A Ordinary Shares

42

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