Document:

ex10_2.htm

    
      

    

    EXHIBIT 10.2

     

    
      	 	
              EXECUTION
      VERSION

            

    

     

    

      DATED
25 MARCH 2008

      

      

      

      FORD
MOTOR COMPANY

      

      TML
HOLDINGS LIMITED

      

      AND

      

      TATA
MOTORS LIMITED

      

      

      

      AGREEMENT

      

      for
the sale and purchase of Jaguar and Land Rover

      

      

      

      

       

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

      
        
          	 	
                  EXECUTION
      VERSION

                

        

      

       

      CONTENTS

      

      
        	
                1.

              	
                DEFINITIONS
      AND INTERPRETATION

              	
                1

              
	 
      	 
      	 
      
	
                2.

              	
                SALE
      AND PURCHASE

              	
                28

              
	 
      	 
      	 
      
	
                3.

              	
                CONSIDERATION

              	
                28

              
	 
      	 
      	 
      
	
                4.

              	
                CONDITIONS
      TO COMPLETION

              	
                29

              
	 
      	 
      	 
      
	
                5.

              	
                PERIOD
      BETWEEN EXCHANGE AND COMPLETION

              	
                32

              
	 
      	 
      	 
      
	
                6.

              	
                COMPLETION

              	
                40

              
	 
      	 
      	 
      
	
                7.

              	
                NSC
      REORGANISATION AND NSC STRUCTURE

              	
                43

              
	 
      	 
      	 
      
	
                8.

              	
                DELAYED
      NSCS

              	
                43

              
	 
      	 
      	 
      
	
                9.

              	
                PAYMENT
      OF IP CONSIDERATION, HALEWOOD PLANT CONSIDERATION AND REPAYMENT OF
      INTRA-GROUP BALANCES

              	
                51

              
	 
      	 
      	 
      
	
                10.

              	
                POST-COMPLETION
      ADJUSTMENTS

              	
                52

              
	 
      	 
      	 
      
	
                11.

              	
                WARRANTIES
      AND INDEMNITIES

              	
                53

              
	 
      	 
      	 
      
	
                12.

              	
                BUYER
      AND GUARANTOR WARRANTIES AND INDEMNITY

              	
                55

              
	 
      	 
      	 
      
	
                13.

              	
                CONTRACTS
      AND THIRD PARTY CONSENTS

              	
                56

              
	 
      	 
      	 
      
	
                14.

              	
                ASSUMED
      LIABILITIES

              	
                60

              
	 
      	 
      	 
      
	
                15.

              	
                ASSURANCES

              	
                62

              
	 
      	 
      	 
      
	
                16.

              	
                EMPLOYMENT
      AND SECONDMENTS

              	
                62

              
	 
      	 
      	 
      
	
                17.

              	
                NON-SOLICITATION
      UNDERTAKINGS

              	
                70

              
	 
      	 
      	 
      
	
                18.

              	
                PENSIONS

              	
                71

              
	 
      	 
      	 
      
	
                19.

              	
                INSURANCE

              	
                72

              
	 
      	 
      	 
      
	
                20.

              	
                WRONG-POCKET
      PROVISIONS

              	
                74

              
	 
      	 
      	 
      
	
                21.

              	
                RECORDS
      AND ASSISTANCE

              	
                75

              
	 
      	 
      	 
      
	
                22.

              	
                GUARANTEE

              	
                76

              
	 
      	 
      	 
      
	
                23.

              	
                MISCELLANEOUS
      PROVISIONS

              	
                78

              
	 
      	 
      	 
      
	
                24.

              	
                GOVERNING
      LAW AND DISPUTES

              	
                92

              
	 
      	 
      	 
      
	
                SCHEDULE
      1

              	
                 

              
	 
      	 
      	 
      
	
                SALE
      COMPANIES, SALE SHARES AND JLR SUBSIDIARIES

              	
                 

              
	 
      	 
      	 
      
	 
      	
                PART
      1 – SALE COMPANIES AND SALE SHARES

              	
                 

              
	 
      	
                PART
      2 - JLR SUBSIDIARIES

              	
                 

              

      

      
        
           

        

        
          i

          
            

          

        

        
           

        

      

       

      
        
          	 	
                  EXECUTION
      VERSION

                

        

      

       

      
        	
                SCHEDULE
      2

              	
                 

              
	 
      	 
      	 
      
	
                COMPLETION
      BUSINESS ASSETS

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE
      3

              	
                 

              
	 
      	 
      	 
      
	
                EXCLUDED
      ASSETS, EXCLUDED LIABILITIES AND EXCLUDED CONTRACTS

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE
      4

              	
                 

              
	 
      	 
      	 
      
	
                SELLER
      WARRANTIES

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE
      5

              	
                 

              
	 
      	 
      	 
      
	
                LIMITATIONS
      ON LIABILITY

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE
      6

              	
                 

              
	 
      	 
      	 
      
	
                COMPLETION
      OBLIGATIONS

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE
      7

              	
                 

              
	 
      	 
      	 
      
	
                RESTRICTED
      ACTIVITIES

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE
      8

              	
                 

              
	 
      	 
      	 
      
	 
      	
                PART
      1 – PRE-COMPLETION REORGANISATION

              	
                 

              
	 
      	
                PART
      2 – NSC REORGANISATION

              	
                 

              
	 
      	
                Section
      1 – Transfer of Embedded NSC to NSC Newco

              	
                 

              
	 
      	
                PART
      2 – NSC REORGANISATION

              	
                 

              
	 
      	
                Section
      2 - Transfer of Embedded NSC to Target Company (as existing/represented in
      the relevant jurisdiction/administrative region)

              	
                 

              
	 
      	
                PART
      2 – NSC REORGANISATION

              	
                 

              
	 
      	
                Section
      3 - Transfer of Embedded NSC to NSC Newco or Third Party
      Importer

              	
                 

              
	 
      	
                PART
      3 – NSC LONG STOP DATE EMPLOYMENT ARRANGEMENTS

              	
                 

              
	 
      	
                PART
      4 – WHEELS COMMON INVESTMENT FUND

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE
      9

              	
                 

              
	 
      	 
      	 
      
	
                US
      DEALER ARRANGEMENTS

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE
      10

              	
                 

              
	 
      	 
      	 
      
	
                THE
      PROPERTIES

              	
                 

              
	 
      	 
      	 
      
	 
      	
                PART
      1 - CERTIFICATED PROPERTIES

              	
                 

              
	 
      	
                PART
      2 - UNCERTIFICATED PROPERTIES

              	
                 

              
	 
      	
                PART
      3 – NSC PROPERTIES

              	
                 

              
	 
      	
                PART
      4 – SEPARATION ACTION PROVISIONS

              	
                 

              
	 
      	
                PART
      5 – SEPARATION ACTIONS MAHWAH PROPERTY AND ONTARIO
PROPERTY

              	
                 

              
	 
      	
                SUB-PART
      A TO PART 5 OF SCHEDULE 10

              	
                 

              
	 
      	
                SEPARATION
      ACTIONS FOR MAHWAH PROPERTY

              	
                 

              
	 
      	
                Exhibit
      A

              	
                 

              
	 
      	
                Legal
      Description

              	
                 

              
	 
      	
                Exhibit
      B

              	
                 

              
	 
      	
                Permitted
      Exceptions

              	
                 

              
	 
      	
                SUB-PART
      B TO PART 5 OF SCHEDULE 10

              	
                 

              
	 
      	
                SEPARATION
      ACTIONS FOR ONTARIO PROPERTY

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE
      11

              	
                 

              
	 
      	 
      	 
      
	
                PENSIONS

              	
                 

              
	 
      	 
      	 
      
	 
      	
                PART
      1 - UNITED KINGDOM

              	
                 

              
	 
      	
                PART
      2 - OTHER JURISDICTIONS

              	
                 

              
	 
      	
                PART
      3 - HALEWOOD PENSIONS INDEMNITY

              	
                 

              

      

      
        
           

        

        
          ii

          
            

          

        

        
           

        

      

       

      
        
          	 	
                  EXECUTION
      VERSION

                

        

      

       

      
        	 
      	
                APPENDIX
      1 TO SCHEDULE 11

              	
                 

              
	 
      	
                APPENDIX
      2 TO SCHEDULE 11

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE
      12

              	
                 

              
	 
      	 
      	 
      
	
                COMPLETION
      STATEMENT

              	
                 

              
	 
      	 
      	 
      
	 
      	
                PART
      1 -PREPARATION OF STATEMENT

              	
                 

              
	 
      	
                PART
      2 – COMPLETION STATEMENT

              	
                 

              
	 
      	
                PART
      3 – COMPLETION PAYMENT CERTIFICATE

              	
                 

              
	 
      	
                PART
      4 – SPECIFIC ACCOUNTING POLICIES

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE
      13

              	
                 

              
	 
      	 
      	 
      
	
                SURVIVING
      CONTRACTS

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE
      14

              	
                 

              
	 
      	 
      	 
      
	 
      	
                PART
      1 – SELLER’S KNOWLEDGE

              	
                 

              
	 
      	
                PART
      2 – BUYER’S KNOWLEDGE

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE
      15

              	
                 

              
	 
      	 
      	 
      
	
                TRANSACTION
      DOCUMENTS

              	
                 

              
	 
      	 
      	 
      
	 
      	
                PART
      1 - ACQUISITION DOCUMENTS

              	
                 

              
	 
      	
                PART
      2 – SEPARATION AGREEMENTS

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE
      16

              	
                 

              
	 
      	 
      	 
      
	
                ENVIRONMENTAL
      REPORTS

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE
      17

              	
                 

              
	 
      	 
      	 
      
	
                TRANSFER
      OF THE HALEWOOD PROPERTIES

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE
      18

              	
                 

              
	 
      	 
      	 
      
	
                MERGER
      FILINGS

              	
                 

              
	 
      	 
      	 
      
	 
      	
                PART
      A - JURISDICTIONS

              	
                 

              
	 
      	
                PART
      B - JURISDICTIONS

              	
                 

              
	 
      	
                PART
      C - JURISDICTIONS

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE
      19

              	
                 

              
	 
      	 
      	 
      
	
                LIST
      OF NSCS BY COUNTRY AND TRANSFEREE OF SHARES/

              	 
      
	 
      	 
      	 
      
	
                EMBEDDED
      NSC ASSETS

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE
      20

              	
                 

              
	 
      	 
      	 
      
	
                COMMON
      TOOLING – PERMITTED TRANSFERS

              	
                 

              
	 
      	 
      	 
      
	 
      	
                PART
      1 -NON-COMMON TOOLING TO BE TRANSFERRED FROM FORD TO JLR BETWEEN EXCHANGE
      AND COMPLETION

              	
                 

              
	 
      	
                PART
      2 – NON-COMMON TOOLING TO BE TRANSFERRED FROM JLR TO FORD BETWEEN EXCHANGE
      AND COMPLETION

              	
                 

              
	 
      	
                PART
      3 – COMMON TOOLING TO BE TRANSFERRED FROM JLR TO FORD BETWEEN EXCHANGE AND
      COMPLETION

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE
      21

              	
                 

              
	 
      	 
      	 
      
	
                LIST
      OF AGREED FORM TRANSACTION DOCUMENTS

              	
                 

              

      

      
        
           

        

        
          iii

          
            

          

        

        
           

        

      

       

      
        
          	 	
                  EXECUTION
      VERSION

                

        

      

       

      
        	
                SCHEDULE
      22

              	
                 

              
	 
      	 
      	 
      
	
                CATEGORIES
      OF THIRD PARTY IP

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE
      23

              	
                 

              
	 
      	 
      	 
      
	
                INFORMATION
      BARRIERS PROTOCOL

              	
                 

              
	 
      	 
      	 
      
	
                SCHEDULE
      24

              	
                 

              
	 
      	 
      	 
      
	
                CLEARANCE
      STATEMENTS AND ASSOCIATED DOCUMENTATION

              	
                 

              
	 
      	 
      	 
      
	 
      	
                PART
      1 - JPP

              	
                 

              
	 
      	
                PART
      2 - JEPP

              	
                 

              
	 
      	
                PART
      3 - LRPS

              	
                 

              

      

      
        
           

        

        
          iv

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

    

     

    THIS
SALE AND PURCHASE AGREEMENT is made on 25 March 2008

    

    BETWEEN:

    

    
      	
              (1)

            	
              FORD MOTOR COMPANY, a
      Delaware corporation whose principal executive office is at One American
      Road, Dearborn, Michigan 48121-1899, USA (the Seller);
  

            

    

    

    
      	
              (2)

            	
              TML HOLDINGS LIMITED a
      company incorporated under the laws of England and Wales under registered
      number 6477691, whose registered office is at 18 Grosvenor Place, London
      SW1X 7HS, England (the Buyer);
    and

            

    

    

    
      	
              (3)

            	
              TATA MOTORS LIMITED a
      company incorporated under the laws of The Republic of India under
      registered number 11-4520, whose registered office is at Bombay House, 24
      Homi Mody Street, Fort Mumbai 400 000, India (the Guarantor).

            

    

    

    WHEREAS:

    

    
      	
              (A)

            	
              The
      Seller or its subsidiaries are the owners of the Sale Shares and the JLR
      Assets;

            

    

    

    
      	
              (B)

            	
              The
      Seller has agreed to sell, or procure the sale of, and the Buyer has
      agreed to purchase, the Sale Shares and the JLR Assets for the
      consideration, and on the terms and subject to the conditions, set out in
      this Sale and Purchase Agreement;

            

    

    

    
      	
              (C)

            	
              To
      facilitate the transactions contemplated by this Sale and Purchase
      Agreement, Land Rover UK has agreed to issue, and the Buyer has agreed to
      subscribe for, or procure the subscription by a member of the Buyer’s
      Group of, the Tata Subscription
Shares.

            

    

    

    IT
IS AGREED as follows:

    

    
      	
              1.

            	
              DEFINITIONS
      AND INTERPRETATION

            

    

    

    
      	
              1.1

            	
              Definitions

            

    

    

    In this
Sale and Purchase Agreement:

    

    Accounts means the audited
financial statements of each of the Target Companies other than Jaguar Land
Rover Austria, as at, and for the financial period ended on, the Accounts
Date;

    

    Accounts Date means 31
December 2006;

    

    Affiliate means a person that
at the relevant time directly, or indirectly through one or more person,
controls, is controlled by, or is under common control with, the person
specified, where control
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management policies of a person, through the ownership of
voting securities, by contract, as trustee, executor or otherwise, it being
understood that, for the purposes of this Sale and Purchase Agreement, neither
Mazda Motor Corporation nor any of its affiliates (other than any member of the
Seller Group) shall be deemed to be an Affiliate of the Seller
Group;

    

    
      
        
           

        

        
          1

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    Agreed Form means, in relation
to a document, that its form and contents have been agreed by the Seller and the
Buyer as evidenced by the cover page having been initialled on the date of this
Sale and Purchase Agreement by the Seller and by the Buyer for the purposes of
identification, and the name of each such document being set forth in Schedule
21;

    

    Annual Incentive Compensation
Plan means the Ford Motor Company Annual Incentive Compensation Plan
(Amended and Restated as of 1 January 2000) under which participants may be
rewarded based on the achievement of established performance
objectives;

    

    Associated Person and Connected Person shall have
the meaning attributed to them by the Pensions Act 2004 and Associated and Connected shall be construed
accordingly;

    

    Assumed Liabilities means all
Liabilities of the Seller Group to the extent that they relate to Jaguar and/or
Land Rover and/or the JLR Assets, and have not been fully satisfied or
discharged at Completion, in each case other than the Excluded
Liabilities;

    

    Assurances means all
guarantees, indemnities, warranties, representations, covenants, undertakings or
commitments of any nature whatsoever:

    

    
      	
               
      

            	
              (a)

            	
              given
      to a third party by a Target Company in respect of a Liability of a member
      of the Seller Group; and/or (as the context may
  require);

            

    

    

    
      	
               
      

            	
              (b)

            	
              given
      to a third party by a member of the Seller Group in respect of a Liability
      of a Target Company or an Assumed
Liability;

            

    

    

    ATCSA means Part 12 of the UK
Anti-Terrorism Crime and Security Act 2001;

    

    Bid Price means US$
2,300,000,000;

    

    Bring-Down Warranties means
the warranties given by the Seller in Paragraphs 1.1.1, 2.1.3, 2.2.1, 2.3, and 9
of Schedule 4;

    

    Business Day means a day
(other than a Saturday and a Sunday) on which banks generally are open for
business in London and New York but excluding 24 December to 2
January;

    

    Buyer’s Group means the Buyer
and its Affiliates (other than the Target Companies and the NSC
Newcos);

    

    Buyer’s Solicitors means
Herbert Smith LLP of Exchange House, Primrose Street, London EC2A
2HS;

    

    Carve-out Cash means in
relation to any Delayed NSC, an amount equal to any cash transferred or
contributed to a NSC Newco by any member of the Seller Group in connection with
the transfer of Embedded NSC Assets to it, in the case of a NSC Newco after
deducting any amounts distributed by the relevant NSC Newco to any member of the
Seller Group after the date of Completion and prior to the Delayed Transfer Date
(and for the avoidance of doubt, does not include any NSC Cash);

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    Carve-out Date means in
relation to any Delayed NSC, the date on which the relevant Embedded NSC Assets
and NSC Transferring Employees are transferred to an NSC Newco, Target Company
or Third Party Importer, as the case may be, or, if no such transfer has taken
place prior to the NSC Long Stop Date, means the NSC Long Stop
Date;

    

    Carve-out Debt means in
relation to any Delayed NSC an amount equal to any indebtedness incurred by an
NSC Newco to fund the payment of any consideration in respect of the transfer of
Embedded NSC Assets (and for the avoidance of doubt, does not include any NSC
Debt);

    

    Carve-out Intra-Group Payables
means in relation to any Delayed NSC the aggregate amount of cash
generated in any other business of the Seller Group during the Interim Cash Flow
Period and held or otherwise utilised in the Delayed NSC at the Carve-out Date
as set out in the cash pooling statement prepared pursuant to Clause
8.3.2;

    

    Carve-out Intra-Group
Receivables means in relation to any Delayed NSC the aggregate amount of
cash generated by the Delayed NSC during the Interim Cash Flow Period and held
or otherwise utilised by any other business of the Seller Group at the Carve-out
Date as set out in the cash pooling statement prepared pursuant to Clause
8.3.2;

    

    Cash means all cash (whether
in hand or at the bank) including without limitation all uncleared lodgements,
unpresented cheques and any direct credits received before close of business on
the Completion Date and deducting any unpresented cheques, direct debits or
standing orders paid or written prior to close of business on the Completion
Date;

    

    Certificate(s) of Title means
the certificate(s) of title signed on and speaking at the date of this Sale and
Purchase Agreement to be delivered on Completion by Lovells LLP of Atlantic
House, Holborn Viaduct, London EC1A 2FG in relation to the Certificated
Properties;

    

    Certificated Properties means
the properties identified in Part 1 of Schedule 10;

    

    Claim means a claim in respect
of a breach of Warranty, a claim under the Tax Deed and any other claim against
the Seller or any member of the Seller Group under or pursuant to the terms of
this Sale and Purchase Agreement (excluding any claim by way of
indemnity);

    

    Clearance Statements means the
clearance statements dated 19 March 2008 issued by the Pensions Regulator under
sections 42 and 46 of the Pensions Act 2004 under reference CRM/TM3339 to the
Seller and the Buyer and other parties named or referred to in the applications
to which the clearance statements relate (copies of which clearance statements
and related applications, warning notices and determination notices are annexed
at Schedule 24);

    

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    Collective Consultation
Requirements means all applicable legal requirements (whether statutory
or pursuant to any relevant written agreement entered into prior to the date of
this Sale and Purchase Agreement with any Representative Body prior to such
date) in relation to information, consultation or notification with any
employees or any Representative Body in connection with the sale and purchase of
any of the Sale Shares or the JLR Assets pursuant to this Sale and Purchase
Agreement (including the NSC Reorganisation and/or any reorganisation or
internal restructuring made in contemplation of the sale and purchase of the
Sale Shares and JLR Assets);

    

    Company Applications and
Services has the meaning set forth in the Intellectual Property
Agreements;

    

    Competition Authority means
any relevant government, governmental, quasi-governmental, national,
supranational, competition or antitrust body or other authority, in any
jurisdiction, which is responsible for applying merger control or other
competition or antitrust legislation in such jurisdictions and, for the
avoidance of doubt, includes the notion of “competent authority” as that term is
used in Council Regulation (EC) 139/2004;

    

    Completion means (i)
completion of the sale and purchase of the Sale Shares (other than any shares in
NSC Newcos relating to Delayed NSCs and any Sale Shares, Embedded NSCs or JLR
Assets in jurisdictions subject to a waiver pursuant to Clause 4.3.3) and the
other matters to be transacted in accordance with Clause 6; and (ii) in respect
of any Sale Shares, Embedded NSCs or JLR Assets in a jurisdiction subject to a
waiver pursuant to Clause 4.3.3, completion of the sale and purchase of the Sale
Shares, Embedded NSCs or JLR Assets in such jurisdiction upon satisfaction of
the relevant Condition with respect to such jurisdiction and the other matters
referred to be transacted in accordance with Clause 6;

    

    Completion Business Assets
means the undertaking, rights and assets set out in Schedule
2;

    

    Completion Business Assets
Consideration means the consideration to be paid for the Completion
Business Assets by Volvo Cars Corporation immediately following Completion,
pursuant to the Swedish Sale and Buy-back Agreement for Nordic
Inventory;

    

    Completion Date means (subject
to any delay pursuant to Clause 5.8.5) the last Business Day of the calendar
month in which all of the Conditions are satisfied or waived in accordance with
Clause 4 (unless the date on which all of the Conditions are satisfied or waived
is less than five (5) Business Days prior to the end of a calendar month, in
which case Completion shall take place on the last Business Day of the following
calendar month) or such other date as the Buyer and the Seller shall agree in
writing;

    

    Condition means any of the
conditions set out in Clause 4;

    

    Continental Air Suspension
Licence means the agreement between Ford Global Technologies LLC and
Continental AG regarding an air suspension licence dated 19 January
2006;

    

    Continental AG means
Continental Aktiengesellschaft, having a place of business at Vahrenwalder
Strasse 9, 30165 Hanover, Germany;

    

    
      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    Data Room means the Intralinks
site entitled Project Color Data Room as at 12.30 pm (London time) on 21 March
2008 and containing solely copies of the documents listed in the index attached
to the Disclosure Letter;

    

    Data Protection Laws
means:

    

    
      	
               
      

            	
              (a)

            	
              all
      applicable laws, regulations, regulatory requirements and/or codes of
      practice (having the force of law) in a Territory in connection with the
      processing of personal data and privacy legislation including, but not
      limited to, the Data Protection Act 1998;
and

            

    

    

    
      	
               
      

            	
              (b)

            	
              all
      relevant European data protection and privacy laws including, but not
      limited to, Directive 95/46/EC on the processing or personal data and the
      free movement of such data;

            

    

    

    Dealer Termination Notice has
the meaning given to that term in Schedule 9;

    

    Delayed NSC means (i) an
Embedded NSC which is not the subject of a waiver pursuant to Clause 4.3.3 and
which has not been transferred in accordance with Clause 7 as at Completion; and
(ii) an Embedded NSC which is the subject of a waiver pursuant to Clause 4.3.3
in respect of the period after the Condition to which the waiver relates is met
and which has not been transferred in accordance with Clause 7;

    

    Delayed Transfer Date means
(a) in relation to any Delayed NSC in respect of which the Embedded NSC Assets
and NSC Transferring Employees have been transferred to an NSC Newco, the date
on which the shares in such NSC Newco are transferred to the transferee of such
shares as provided in Schedule 19, or, if no such transfer of shares has taken
place prior to the NSC Long Stop Date, means the NSC Long Stop Date; and (b) in
relation to any Delayed NSC in respect of which Embedded NSC Assets and NSC
Transferring Employees are to be transferred to a Target Company or a Third
Party Importer, the Carve-out Date;

    

    Delivered Reorganisation Plans
has the meaning set out in Clause 6.7;

    

    Designated Employee means
those Secondees designated as such under any Secondment Agreement and identified
in the Employee Lists and Secondee Lists referred to in the Disclosure
Letter;

    

    Disclosure Letter means the
letter dated the date of this Sale and Purchase Agreement from the Seller to the
Buyer making certain disclosures against the Warranties;

    

    Embedded NSC means in relation
to any jurisdiction or administrative region specified in Part 2 of Schedule 8,
the business carried on in that jurisdiction or administrative region by any
member of the Seller Group to the extent it relates to Jaguar and/or Land
Rover;

    

    
      
        
           

        

        
          5

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
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    Embedded NSC Assets means JLR
Assets employed in an Embedded NSC as at either (i) the date of transfer of such
Embedded NSC (a) to the relevant NSC Newco pursuant to Clauses 7.1 or 8.7 or (b)
to the relevant Target Company pursuant to Clauses 7.1 or 8.7, or (c) to the
relevant Third Party Importer pursuant to Clauses 7.1 or 8.7; or (ii) (failing
such transfer of such Embedded NSC to the relevant NSC Newco, the relevant
Target Company or Third Party Importer pursuant to Clause 7.1 or 8.7) the date
of transfer of such JLR Assets employed in an Embedded NSC to the relevant
Target Company pursuant to Clause 8.8;

    

    Encumbrance means a charge,
mortgage, pledge, lien, restriction, third party right or interest or other
encumbrance securing any obligation of any person or any other type of
preferential arrangement (including title transfer and retention arrangements)
having a similar effect;

    

    Environment means air
(including air within buildings and air within other natural or man-made
structures above or below ground), water (including territorial and coastal and
inland waters, groundwater and water in drains and sewers) and land (including
soil and sub-soil and land under any water) and any organisms and ecosystems
supported by air, water or land;

    

    Environmental Laws means each
Law relating to pollution or protection of the Environment or the generation,
transportation, storage, treatment or disposal of Waste (excluding for the
avoidance of doubt any Law to the extent that it relates to product
liability);

    

    Environmental Matters
means:

    

    
      	
               
      

            	
              (a)

            	
              the
      release, spillage, deposit, escape, discharge, leak, emission or presence
      of any substance which may harm the Environment;
  or

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      creation of noise, vibration, radiation, common law or statutory nuisance;
      or

            

    

    

    
      	
               
      

            	
              (c)

            	
              any
      other matters relating to Environmental Laws, Health and Safety Laws,
      Environmental Permits, pollution or the protection of the Environment or
      human health and safety;

            

    

    

    Environmental Permit means a
consent, permission, licence, approval or other authorisation issued, or
registration made, pursuant to an Environmental Law or a Health and Safety
Law;

    

    Environmental Reports means
the reports prepared by the Seller’s and/or Jaguar’s and/or Land Rover’s
environmental consultants listed in Schedule 16;

    

    Estimated Intra-Group Balances
means the Estimated Intra-Group Receivables less the Estimated Intra-Group
Payables;

    

    Estimated Intra-Group Payables
means the Seller’s good faith estimate of the Intra-Group Payables, estimated by
the Seller and notified to the Buyer in writing not less than ten (10) Business
Days prior to Completion;

    

    
      
        
           

        

        
          6

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
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    Estimated Intra-Group
Receivables means the Seller’s good faith estimate of the Intra-Group
Receivables, estimated by the Seller and notified to the Buyer in writing not
less than ten (10) Business Days prior to Completion;

    

    Estimated Net External
Indebtedness means the Seller’s good faith estimate of the Net External
Indebtedness plus the cash to be received from the subscription of the Ford
Subscription Shares, estimated by the Seller and notified to the Buyer in
writing not less than ten (10) Business Days prior to Completion;

    

    Exchange Rate means the pounds
sterling spot closing mid-point for US$ as published in the Financial Times on
the fifth Business Day preceding the Completion Date or if not published on that
date the last preceding date of publication;

    

    Excluded Assets means those
properties, rights and assets relating to Jaguar and/or Land Rover described in
Part 1 of Schedule 3;

    

    Excluded Contracts means those
contracts, engagements, licences, guarantees and other commitments described in
Part 3 of Schedule 3;

    

    Excluded Dealer Agreements has
the meaning given to that term in Schedule 9;

    

    Excluded Liabilities means
those Liabilities relating to Jaguar and/or Land Rover described in Part 2 of
Schedule 3;

    

    FCPA means the United States
Foreign Corrupt Practices Act of 1977, as amended;

    

    Final Completion Statement has
the meaning given to that term in Schedule 12;

    

    Ford-Caterpillar Contract
means together (i) Land Rover Japan Logistics Services Agreement between PAG
Import, Inc., and Caterpillar Logistics FT Services LLC dated 7 June 2002 (as
amended); and (ii) Land Rover Canada Logistics Services Agreement between Ford
Motor Company of Canada Limited and Caterpillar Logistics FT Services Canada Ltd
dated 1 September 2004;

    

    Ford Excess Liability (Umbrella)
Insurance Program means the following excess liability insurance
policies: AISLIC (policy number: 8122585); AIG Cat Excess (policy number:
5442715); Lexington (policy number: 0507430); AIG Cat Excess (policy number:
5442771); AIG Cat Excess (policy number: 6075416); Swiss Re (policy number:
37347); Catlin (policy number: DL461806); Magna Carta (policy number:
MCPD201923); Steadfast (policy number: AEC521452106); Hanseatic (policy number:
HIPD201339); Max Re (policy number: 183722193UMB2007); AIG Cat Excess (policy
number: 6075417); Endurance (policy number: P008072); AXIS (policy number:
1134160107EC); Scor Re (policy number: 200710F1330441); Scor Channel (policy
number: 02F0689238); ARCH (policy number: URP001913400); Catlin (policy number:
DL479306); Magna Carta (policy number: MCPD201924); AWAC (policy number:
C008672); Scor Re (policy number: 200710F1330441); Scor Channel (policy number:
02F0689239); ARCH (policy number: URP001913400); AIG Cat Excess (policy number:
5105969); Aspen (policy number: DL505607); Magna Carta (policy number:
MCPD201925);

    

    
      
        
           

        

        
          7

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
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    Ford Jaguar Supply Agreement
means the Agreed Form agreement between Ford Motor Company, Ford Motor Company
Limited, Ford Werke GmbH, Ford España S.L., Ford Motor Company of Southern
Africa (Manufacturing) (Pty) Ltd and Jaguar Cars Limited;

    

    Ford Senior Employee means any
employee of a member of  the Seller Group whose grade is at or above
Leadership Level 5 as designated in Seller’s employment policies;

    

    Ford Subscription Shares means
any and all new ordinary shares in Land Rover UK subscribed by any member of the
Seller Group pursuant to the Pre-Completion Reorganisation;

    

    Ford Subscription Shares
Consideration means US$1 (one);

    

    Ford Transition Services shall
have the meaning assigned to such term in the Information Technology
Agreement;

    

    Ford US Secondment Agreement
means the secondment agreement proposed to be entered into between the Seller
and Jaguar Land Rover North America, Inc. relating to specified employees of the
Seller in the United States in the Agreed Form;

    

    Ford US Secondment Agreement
Employee means any JLR Employee who is identified (on an anonymised
basis) in the Employee Lists referred to in the Disclosure Letter as being
included within the scope of the Ford US Secondment Agreement;

    

    Framework Agreement has the
meaning given to that term in Schedule 9;

    

    Full Title Guarantee means
with the benefit of the implied covenants set out in Part 1 of the Law of
Property (Miscellaneous Provisions) Act 1994 when a disposition is expressed to
be made with full title guarantee;

    

    GBP or £ means British
Pounds;

    

    Gemini Agreements means the
agreements between Peugeot Citroen Automobiles SA (or any of its Affiliates) and
the Seller Group relating to the design, development, manufacture, supply and
servicing of Gemini Diesel Engines (as such term is defined in the Intellectual
Property Common Terms Agreement) as amended, replaced or updated from time to
time;

    

    Getrag means Getrag
Corporation;

    

    Getrag IP Agreement means the
Technology Agreement for the development of an Electric Rear Axle Drive entered
into between Ford Motor Company and Getrag Corporation dated 9 January
2007;

    

    Getrag Lease means a lease to
be entered into between Jaguar Cars Limited and Ford Motor Company Limited in
relation to the area at the Halewood Site demised by a lease dated 18 January
2001 made between Ford Motor Company Limited and Ford-Werke AG in the Agreed
Form;

    

    
      
        
           

        

        
          8

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
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    Getrag Service Level Agreement
means an agreement relating to the occupation by Getrag Ford
Transmissions GmbH of part of the Halewood Site as a result of the Getrag Lease
in the Agreed Form;

    

    Global LSA means the Global
Logistics Services Agreement between the Seller and Caterpillar Logistics Client
Services LLC dated 6 November 2001 (as amended);

    

    Goodwill means the goodwill
relating to Jaguar and/or Land Rover, together with the exclusive right for the
Buyer to represent itself as carrying on such business in succession to the
Seller;

    

    Governance Protocol means the
protocol in Agreed Form setting out the governance structure for implementation,
management, oversight and dispute resolution relating to the JLR
separation;

    

    Governmental Entity means any
local, regional, national, supra-national or foreign administrative agency,
authority, arbitral tribunal, court, commission, department, division or other
governmental quasi-governmental or regulatory body;

    

    Halewood Assets means the
current assets and current liabilities that comprise the Working Capital Amount
that relates to the Halewood Plant;

    

    Halewood Plant means the
business of manufacturing and selling Jaguar and Land Rover vehicles and
replacement and service parts and components and assemblies for such vehicles
carried on by Ford Motor Company Limited at the Halewood Site and all of the
contracts, undertakings, rights and assets, wherever situated, which comprise
JLR Assets and which relate to such business (excluding (i) the Halewood Site
and (ii) the Halewood Assets);

    

    Halewood Plant Consideration
means the sum of US$300,000,000;

    

    Halewood Properties means
together the Halewood Site and the Halewood Sports and Social Club;

    

    Halewood Site means all those
land and buildings at Halewood motor car manufacturing facility off Speke
Boulevard, Halewood, Merseyside as identified in the Halewood Site
Transfer;

    

    Halewood Site Consideration
means the sum of US$172,000,000 being the consideration payable by the
transferee under the Halewood Site Transfer;

    

    Halewood Site Transfer means
the deed of transfer in relation to the transfer of the Halewood Site from Ford
Motor Company Limited to Jaguar Cars Limited in the Agreed Form;

    

    
      
        
           

        

        
          9

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    Halewood Sports and Social Club means the
Halewood Sports and Social Club, Cronton Lane, Widnes, Merseyside as identified
in the Halewood Sports and Social Club Transfer;

    

    Halewood Sports and Social Club
Consideration means the sum of US$3,000,000 being the total aggregate
consideration payable by the transferee under the Halewood Sports and Social
Club Transfer;

    

    Halewood Sports and Social Club
Transfer means the deed of transfer in relation to the transfer of the
Halewood Sports and Social Club from Ford Motor Company Limited to Jaguar Cars
Limited in the Agreed Form;

    

    Halewood Statutory Declaration
means the statutory declaration dated 13 March 2008 disclosed to the Buyer prior
to the date hereof;

    

    Halewood Transfers means
together the Halewood Site Transfer and the Halewood Sports and Social Club
Transfer;

    

    Heads of Agreement means the
agreements between the Seller and the respective trustees of the JPP, JEPP and
LRPS respectively dated 21 December 2007, 1 February 2008 and 21 December
2007;

    

    Health and Safety Law means
each Law relating to human health and safety at the workplace (excluding for the
avoidance of doubt any Law to the extent that it relates to product
liability);

    

    Hill Descent Control Licences
means the agreements as identified at Part C of Schedule 22;

    

    HMRC is defined in the Tax
Deed;

    

    ICTA 1988 means the Income and
Corporation Taxes Act 1988;

    

    Identified Third Party “A” IP
means Third Party IP (other than Third Party IT) that is subject to an agreement
in the name of a member of the Seller Group as identified in Part A of Schedule
22 (each a Seller Third Party
“A” Licence);

    

    Identified Third Party “A”
Licensor means the third party that grants rights in the Identified Third
Party “A” IP to a member of the Seller Group pursuant to a Seller Third Party
“A” License;

    

    Information Technology
Agreement means the Information Technology Agreement to be entered into
between certain members of the Seller Group and certain Target Companies in the
Agreed Form;

    

    
      
        
           

        

        
          10

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    Initial Purchase Price means
an amount equal to:

    

    
      	
               
      

            	
              (a)

            	
              the
      Bid Price;

            

    

    

    less

    

    
      	
               
      

            	
              (b)

            	
              the
      amount of the Estimated Net External Indebtedness, if a positive amount;
      or

            

    

    

    plus

    

    
      	
               
      

            	
              (c)

            	
              the
      amount of the Estimated Net External Indebtedness if a negative amount
      (expressed as a positive number);
and

            

    

    

    plus

    

    
      	
               
      

            	
              (d)

            	
              the
      amount of the Estimated Intra-Group Balances, if a positive amount;
      or

            

    

    

    less

    

    
      	
               
      

            	
              (e)

            	
              the
      amount of the Estimated Intra-Group Balances, if a negative amount
      (expressed as a positive number);
and

            

    

    

    less

    

    
      	
               
      

            	
              (f)

            	
              the
      sum of the Halewood Plant Consideration, the Halewood Site Consideration,
      the Halewood Sports and Social Club Consideration and the IP
      Consideration; and

            

    

    

    less

    

    
      	
               
      

            	
              (g)

            	
              the
      Ford Subscription Shares Consideration;
and

            

    

    

    less

    

    
      	
               
      

            	
              (h)

            	
              the
      Jaguar Shares Consideration;

            

    

    

    Intellectual Property
Agreements means the Intellectual Property Common Terms Agreement,
Intellectual Property Licensing Agreements and Intellectual Property Assignment
Agreements to be entered into between certain members of the Seller Group and
certain Target Companies in the Agreed Form;

    

    Intellectual Property Common Terms
Agreement means the Agreement on Common Terms relating to the
Intellectual Property Licensing and Assignment Agreements between Jaguar Cars
Limited, Land Rover UK, Ford Motor Company, Ford Motor Company Limited,
Ford-Werke GmbH, Volvo Car Corporation, Ford España S.L., Ford Motor Company
(Belgium) N.V., Ford Global Technologies, LLC and Mazda Motor
Corporation;

    

    
      
        
           

        

        
          11

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
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    Intellectual Property Licences
means all licences or agreements (other than JLR IT Contracts and Seller IT
Contracts) under which:

    

    
      	
               
      

            	
              (a)

            	
              any
      member of the Seller Group uses or exploits Intellectual Property Rights
      owned by any other party; or

            

    

    

    
      	
               
      

            	
              (b)

            	
              any
      member of the Seller Group has licensed or agreed to license Intellectual
      Property Rights to, or otherwise permit the use of any Intellectual
      Property Rights by, any other
party;

            

    

    

    Intellectual Property Rights
means rights in patents, inventions, utility models, works of authorship, data,
designs, databases, software, topography and mask works, Know-how, trade marks,
service marks, trade, business and domain names, logos, trade dress or get-up,
goodwill, copyright, moral rights and any other intellectual property or
proprietary rights along with all rights to sue or collect damages for
infringement, unfair competition or other violations thereof in each case
whether registered or unregistered and including all applications and
registrations for and renewals or extensions of such rights, and all similar or
equivalent rights or forms of protection in any part of the world;

    

    Interim Cash Flow means in
relation to any Delayed NSC, the cash flow, calculated in accordance with Clause
8.10, generated by the relevant Delayed NSC (regardless of when it becomes a
Delayed NSC) during the Interim Cash Flow Period;

    

    Interim Cash Flow Period means
the period from the Completion Date until the close of business on the last
Business Day before the Carve-out Date;

    

    Intra-Group Balances means the
Intra-Group Receivables less the Intra-Group Payables, as set out in the Final
Completion Statement;

    

    Intra-Group Balances
Adjustment means the amount by which the Intra-Group Balances exceed or
are less than the Estimated Intra-Group Balances, as set out in the Final
Completion Statement;

    

    Intra-Group Payables means the
aggregate of all amounts which are, at the Completion Date, owed by any Target
Company or NSC Newco (existing at Completion and having been acquired by a
member of the Buyer’s Group) to any member of the Seller Group including any
interest accrued thereon but excluding Intra-Group Trade Payables and external
receivables financing balances provided by Ford Motor Credit Corporation, as set
out in the Final Completion Statement;

    

    Intra-Group Receivables means
the aggregate of all amounts which are, at the Completion Date, owed by any
member of the Seller Group to any Target Company or NSC Newco (existing at
Completion and having been acquired by a member of the Buyer’s Group) including
any interest accrued thereon but excluding Intra-Group Trade Receivables as set
out in the Final Completion Statement;

    

    
      
        
           

        

        
          12

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    Intra-Group Trade Payables
means the aggregate of all amounts which are, at the Completion Date, owed
by:

    

    
      	
               
      

            	
              (a)

            	
              any
      Target Company;

            

    

    

    
      	
               
      

            	
              (b)

            	
              any
      NSC Newco (existing at Completion and having been acquired by a member of
      the Buyer’s Group); or

            

    

    

    
      	
               
      

            	
              (c)

            	
              to
      the extent relating to Jaguar and/or Land Rover, any member of the Seller
      Group,

            

    

    

    to any
member of the Seller Group in respect of goods and services provided in the
ordinary course of trading, as set out in the Final Completion
Statement;

    

    Intra-Group Trade Receivables
means the aggregate of all amounts which are, at the Completion Date, owed by
any member of the Seller Group to:

    

    
      	
               
      

            	
              (a)

            	
              any
      Target Company;

            

    

    

    
      	
               
      

            	
              (b)

            	
              any
      NSC Newco (existing at Completion and having been acquired by the Buyer);
      or

            

    

    

    
      	
               
      

            	
              (c)

            	
              to
      the extent relating to Jaguar and/or Land Rover, any member of the Seller
      Group

            

    

    

    in
respect of goods and services provided in the ordinary course of trading, as set
out in the Final Completion Statement;

    

    IP Consideration means the sum
of US$960,000,000;

    

    IT Infrastructure shall have
the meaning assigned to such term in the Information Technology
Agreement;

    

    IT System shall have the
meaning assigned to such term in the Information Technology
Agreement;

    

    IT Systems and Services means
all communications systems and computer systems including software, systems,
applications, tools, functionality, code, data, hardware, equipment or other
items, along with support, maintenance or other services provided for or in
connection with the foregoing;

    

    Jaguar means the business of
designing, testing, manufacturing, marketing, selling and distributing Jaguar
vehicles and replacement and service parts and components and assemblies for
such vehicles and/or for Land Rover vehicles carried on by the Target Companies,
the Embedded NSCs and the Seller Group, together with the associated activities
carried on at Gaydon, Warwickshire and Browns Lane, Coventry;

    

    Jaguar Cars Limited means a
private limited company incorporated under the laws of England and Wales under
registration number 01672070, whose registered office is at Abbey Road, Whitley,
Coventry, CV3 4LF, UK;

    

    Jaguar Shares Consideration
means US$1 (one);

    

    
      
        
           

        

        
          13

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    JEPP means the Jaguar
Executive Pension Plan governed by a Definitive Trust Deed and Rules dated 14
August 2002 made between Jaguar Cars Limited and Jaguar Executive Pension
Trustees Limited (as amended);

    

    JEPP Contribution means the
sum of £9,000,000 or such other higher or lower sum as is produced by the
application to that sum of the adjustment mechanism set out in paragraph 2(a)(i)
to (iii) of the Heads of Agreement relating to the JEPP;

    

    JLR means Jaguar and Land
Rover;

    

    JLR Assets means the JLR
Contracts, the Completion Business Assets and the property, undertaking, rights
and assets owned by the Seller Group which relate exclusively to Jaguar and/or
Land Rover, other than the Excluded Assets;

    

    JLR-Caterpillar Contract means
together (i) the Value Added Logistics Services Agreement between Land Rover UK
and Caterpillar Logistics Client Services (UK) Limited dated 1 January 2002 (as
amended); (ii) the Logistics Services Agreement between Premier Automotive Group
Australia Proprietary Limited and Caterpillar Logistics FT Services LLC dated 3
July 2002 (iii) Land Rover European Logistics Services Agreement between Land
Rover and Caterpillar Logistics Client Services (UK) Limited dated 1 January
2002 (as amended); and (iv) Land Rover United States Logistics Services
Agreement between Land Rover North America Inc. and Caterpillar Logistics Client
Services (UK) Limited dated 1 January 2002;

    

    JLR Contracts means all the
contracts, engagements, licences, guarantees and other commitments with a third
party entered into by any member of the Seller Group or assigned to or held on
trust for any member of the Seller Group which relate exclusively to Jaguar
and/or Land Rover and remain outstanding in any respect at Completion but
excluding the Excluded Contracts and the Split Contracts;

    

    JLR Employee means persons
employed by a member of the Seller Group or any Target Company wholly or mainly
in relation to Jaguar and/or Land Rover and identified (on an anonymised basis)
as JLR Employees in the Employee Lists referred to in the Disclosure
Letter;

    

    JLR Intellectual Property
Rights means the rights and benefits granted to Jaguar and/or Land Rover
pursuant to the terms of the Intellectual Property Agreements;

    

    JLR IT System and
Infrastructure shall have the meaning assigned to such term in the
Information Technology Agreement;

    

    
      
        
           

        

        
          14

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
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    JLR IT Contract means all
agreements (including all insurance policies, licence, lease, development,
maintenance, support, escrow, security, disaster recovery, website hosting,
outsourcing, facilities management, utilisation, bureau, on line services and
service agreements) under which:

    

    
      	
               
      

            	
              (a)

            	
              any
      Target Company or Embedded NSC has the right to use or otherwise exploit
      JLR IT System and Infrastructure owned or provided by any third party;
      or

            

    

    

    
      	
               
      

            	
              (b)

            	
              any
      Target Company or Embedded NSC has provided or agreed to provide JLR IT
      System and Infrastructure to any third
party;

            

    

    

    JLR Manufacturing Grants means
the industrial development grants, regional assistance awards and other grants,
awards and assistance provided to any Target Company or any member of the Seller
Group in relation to Jaguar and/or Land Rover by any Governmental Entity details
of which are provided in section 5.02 of the Data Room;

    

    JLR Records means books,
accounts, reports, returns and records (other than such information (if any)
restricted under the Vehicle Finance Separation Agreements) relating to Jaguar
and/or Land Rover maintained during the period prior to Completion (other than
data or information comprising Intellectual Property rights owned by a third
party and licensed to Jaguar and/or Land Rover pursuant to an agreement between
the third party and a member of the Seller Group);

    

    JLR Senior Employee means any
JLR Employee whose grade is at or above Leadership Level 5 and who are
identified in the Disclosure Letter;

    

    JLR Shared Services Headcount
means the number of full time equivalent headcount which JLR utilises in a
Shared Services Territory as identified in the Disclosure Letter;

    

    JLR Subsidiary means each
subsidiary of the Sale Companies, further particulars of which are set out in
Part 2 of Schedule 1;

    

    JLR Worker means any person
who is supplied by an agency to Jaguar and/or Land Rover, or any person who is a
contractor providing services to Jaguar and/or Land Rover, in either case who is
not a JLR Employee;

    

    JLR Wrong Pocket Employee
means an individual identified as such in the Employee Lists referred to
in the Disclosure Letter;

    

    JPP means the Jaguar Pension
Plan governed by a Second Definitive Trust Deed and Rules dated 13 August 2002
made between Jaguar Cars Limited and Jaguar Pension Trustees Limited (as
amended);

    

    
      
        
           

        

        
          15

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    JPP Contribution means the sum
of £120,000,000 or such other higher or lower sum as is produced by the
application to that sum of the adjustment mechanism set out in paragraph 2(a)(i)
to (iii) of the Heads of Agreement relating to the JPP;

    

    Know-how means all know-how,
trade secrets and confidential information, in any form (including paper,
electronically stored data, magnetic media, film and microfilm) including
without limitation financial and technical information, drawings, formulae, test
results or reports, project reports and testing procedures, information relating
to the working of any product, process, invention, improvement or development,
instruction and training manuals, tables of operating conditions, information
concerning intellectual property portfolio and strategy, market forecasts, lists
or particulars of customers and suppliers, sales targets, sales statistics,
prices, discounts, margins, future business strategy, tenders, price sensitive
information, market research reports, information relating to research and
development and business development and planning reports and any information
derived from any of them;

    

    Land Rover means the business
of designing, testing, manufacturing, marketing, selling and distributing Land
Rover vehicles and replacement and service parts and components and assemblies
for such vehicles and/or Jaguar vehicles carried on by the Target Companies, the
Embedded NSCs and the Seller Group, together with the associated activities
carried on at Gaydon, Warwickshire and Solihull, Birmingham;

    

    Land Rover UK means an
unlimited company incorporated under the laws of England and Wales under
registered number 04019301, whose registered office is at Banbury Road, Gaydon,
Warwick, Warwickshire CV35 ORR, UK;

    

    Land Rover (South Africa) (Pty)
Ltd means a private limited company incorporated in South Africa under
number 2001/027269/07 and wholly owned by Ford Motor Company Southern Africa
(Pty) Limited;

    

    Laws or Law means any applicable
statutes, secondary legislation, directives, regulations, resolutions, statutory
guidance, codes of practice having the force of law, civil, criminal or
administrative law, common law, notice, instruction, order, judgement, award,
ruling or other requirement of any Governmental Entity or the rules of any
recognised stock exchange in the Territory;

    

    Liabilities means all
liabilities, duties and obligations of every description, whether deriving from
contract, common law, statute or otherwise, whether present or future, actual or
contingent or ascertained or unascertained and whether owed or incurred
severally or jointly or as principal or surety;

    

    LIBOR means the British
Bankers’ Association Interest Settlement Rate for the offering of sterling
deposits for a period of six (6) months displayed on the appropriate Reuters
screen at or about 11.00 am (London time) on the first day of the relevant
interest period or, if such a day is not a Business Day, on the next succeeding
Business Day; 

    

    
      
        
           

        

        
          16

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    Long Stop Date means 29 August
2008 or such later date as the Buyer and the Seller may from time to time
agree;

    

    Long Term Incentive Plan means
the Ford Motor Company 1998 Long-Term Incentive Plan (Amended and Restated as of
1 January 2003, Subject to Shareholder Approval) under which participants may be
granted Stock Options or awarded Restricted Stock Units and Performance Stock
Rights;

    

    Losses means actions,
proceedings, losses, damages, liabilities, claims, costs and expenses including
fines, penalties, legal and other professional fees and expenses;

    

    LRPS means the Land Rover
Pension Scheme governed by a Definitive Deed dated 29 November 2000 made between
Land Rover UK, Land Rover Group Limited and Land Rover Pension Trustees Limited
(as amended);

    

    LRPS Contribution means the
sum of £120,000,000;

    

    Management Accounts means the
special purpose aggregated accounts disclosed in sections 27.115 and 27.162 of
the Data Room in respect of the operating units included therein as at and in
respect of the year ended 31 December 2007;

    

    Material Adverse Change means
any event, circumstance, effect, occurrence or state of affairs or any
combination thereof which:

    

    
      	
               
      

            	
              (a)

            	
              first
      occurs after the date of this Sale and Purchase
  Agreement;

            

    

    

    
      	
               
      

            	
              (b)

            	
              is
      materially adverse to the business, operations, assets, or financial
      condition or results of JLR taken as a whole;
  and

            

    

    

    
      	
               
      

            	
              (c)

            	
              is
      not caused by:

            

    

    

    
      	
               
      

            	
              (i)

            	
              changes
      in interest rates, exchange rates or securities or commodity
      prices;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              normal
      seasonal changes in the results of operations of
  JLR;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              changes
      (including changes in economic, financial, market or political conditions)
      also affecting businesses that compete with the JLR business (except to
      the extent that such event, circumstance, effect, occurrence or state of
      affairs that has an effect on JLR that is disproportionate to the effect
      that it has on other businesses competing with
  JLR);

            

    

    

    
      	
               
      

            	
              (iv)

            	
              changes
      in Laws, regulations or generally accepted accounting principles including
      Laws, regulations or generally accepted accounting principles specifically
      affecting the automotive industry;

            

    

    

    
      	
               
      

            	
              (v)

            	
              any
      act or omission of any Target Company or NSC Newco (to the extent it
      exists and has acquired any Embedded NSC Assets at the Completion Date) or
      any member of the Seller Group at the request or with the express consent
      of the Buyer; or

            

    

    

    
      	
               
      

            	
              (vi)

            	
              the
      announcement of the Proposed Transaction or anything required or expressly
      permitted to be done prior to the Completion Date under the terms of any
      of the Transaction Documents;

            

    

    

    
      
        
           

        

        
          17

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    Material Contract means any
contract entered into by a Target Company, any JLR Contract and any Split
Contract which involves annual revenue or expenditure in excess of US$1,000,000
per annum (attributable to Jaguar and/or Land Rover in the case of a Split
Contract) and is incapable of termination by a member of the Seller Group or a
Target Company on twelve (12) months or less notice without material
penalty;

    

    Material IT Contract means any
JLR IT Contract entered into by a Target Company which involves annual
expenditure in excess of US$200,000 per annum;

    

    Net External Indebtedness
means all borrowings and indebtedness together with any interest and fees
accrued on or in respect of such amounts owed by any Target Company or NSC Newco
(to the extent it exists at Completion), to any banking, financial, acceptance,
credit, lending or other similar institution or organisation or any
institutional investor (including VAT financing balances), minus Cash and cash
equivalents of any Target Company or NSC Newco (to the extent it exists at
Completion) together with any interest accrued on such amounts, as set out in
the Final Completion Statement and, for the avoidance of doubt, excluding any
(a) Intra-Group Payables; (b) Intra-Group Receivables; and (c) external
receivables financing balances (as referred to in the Vendor Diligence Reports)
including any interest thereon;

    

    Net External Indebtedness
Adjustment means the amount by which the Net External Indebtedness
exceeds or is less than the Estimated Net External Indebtedness, as set out in
the Final Completion Statement;

    

    NSC Cash means the amount, if
any, by which the Carve-out Intra-Group Receivables exceed the Carve-out
Intra-Group Payables;

    

    NSC Debt means the amount, if
any, by which the Carve-out Intra-Group Payables exceed the Carve-out
Intra-Group Receivables;

    

    NSC Interim Management
Agreement means the agreement relating to the management of Delayed NSCs
to be entered into between the Buyer and the Seller in the Agreed
Form;

    

    NSC Long Stop Date means the
day after the last Business Day in the calendar month that falls eighteen (18)
months after the Completion Date (unless such date is less than five (5)
Business Days prior to the end of the calendar month, in which case the NSC Long
Stop Date shall be on the day after the last Business Day of the following
calendar month), or such later date as the Buyer and the Seller may from time to
time agree;

    

    NSC Newco means, in relation
to an Embedded NSC, the transferee company identified in Sections 1 or 3 of Part
2 of Schedule 8;

    

    NSC Properties means the
properties specified in Part 3 of Schedule 10;

    

    
      
        
           

        

        
          18

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    NSC Reorganisation means,
collectively, the reorganisation in relation to each Embedded NSC contemplated
by Clauses 7 and 8;

    

    NSC Reorganisation Advice
means, with respect to each Delayed NSC, a written memorandum of the
relevant local counsel setting forth: (i) the identification of the Transfer
Conditions relating to the NSC Newco or Target Company; and (ii) the
identification of the other registrations, permits and licences (which are not
Transfer Conditions) in connection with the trading and operations of the NSC
Newco or Target Company;

    

    NSC Set Up Costs means all
reasonable costs and expenses incurred by any member of the Seller Group in
relation to the creation and setting up of the relevant NSC Newco and the
identification and satisfaction of the Transfer Conditions relating to the NSC
Newcos, Target Companies and Third Party Importers being: (i) fees and expenses
of professional advisors (including lawyers, accountants, consultants and any
independent valuers); (ii) share capital subscribed in cash of any relevant NSC
Newco; (iii) incorporation fees; (iv) title insurance, registration fees and
expenses; (v) costs of obtaining permits, licenses and Governmental Entity
approvals; and (vi) 50% of the costs and expenses incurred in physically
implementing the Separation Actions identified in Schedule 10, and shall for the
avoidance of doubt exclude (a) the costs of professional advice taken by any
member of the Seller Group unrelated to the creation and set up of a NSC Newco;
(b) internal costs of any member of the Seller Group (including any Tax
liability of a member of the Seller Group); (c) costs (such as stamp duty and
transfer fees) associated with the transfer of the Embedded NSC to a NSC Newco,
Target Company, Third Party Importer or (at the NSC Long Stop Date) the Buyer;
and (d) 50% of the costs and expenses incurred in physically implementing the
Separation Actions identified in Schedule 10;

    

    NSC Target Properties means
together those NSC Properties:

    

    
      	
               
      

            	
              (a)

            	
              specified
      in Category A of Part 3 of Schedule 10;
and

            

    

    

    
      	
               
      

            	
              (b)

            	
              located
      either in Canada or the United States and specified in Category B of Part
      3 of Schedule 10,

            

    

    

    and NSC Target Property means any
one of them;

    

    NSC Transferring Employees
means any JLR Employee who is not at the date of this Sale and Purchase
Agreement:

    

    
      	
               
      

            	
              (a)

            	
              employed
      by any Sale Company;

            

    

    

    
      	
               
      

            	
              (b)

            	
              employed
      by a JLR Subsidiary; or

            

    

    

    
      	
               
      

            	
              (c)

            	
              a
      Ford US Secondment Agreement
Employee;

            

    

    

    and who
is identified (on an anonymised basis) as a NSC Transferring Employee in the
Employee List referred to in the Disclosure Letter;

    

    Non-Transferring Dealer
Agreement has the meaning set out in Schedule 9;

    

    Patented Technologies means
inventions, utility models, products, methods, processes and other technology
falling within any valid claim of any patent or patent application along with
any continuation, continuation-in-part, divisional, foreign counterpart or
renewal or extension of any of the foregoing, provided that such patents or
patent applications have not lapsed or been withdrawn, abandoned or finally
rejected;

    

    
      
        
           

        

        
          19

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    PBCPA means the UK Public
Bodies Corrupt Practices Act of 1889;

    

    PCA means the UK Prevention of
Corruption Acts 1906 and 1916;

    

    Pensions Regulator has the
meaning set out in the Pensions Act 2004;

    

    Performance Stock Right has
the meaning set out in clause 4 (Performance Stock Rights and Final Awards) of
the Long-Term Incentive Plan;

    

    Permitted Encumbrances means
(i) security interests arising in the ordinary course of business or by
operation of Law; (ii) security interests arising under sales contracts with
title retention provisions and equipment leases with third parties; (iii)
security interests affecting the interests of the landlord or any superior
landlord in respect of any leasehold Properties where such landlord or superior
landlord is not a Target Company; (iv) licence agreements; and (v) any
Encumbrance that is to be or is released on or prior to Completion;

    

    Pre-Completion Reorganisation
means the transactions relating to certain Target Companies and certain members
of the Seller Group between the date of this Sale and Purchase Agreement and
Completion as described in Part 1 of Schedule 8;

    

    Previously Owned Land means
land located in the United Kingdom that has at any time before the date of this
Sale and Purchase Agreement been owned or occupied or used by the Target
Companies other than the UK Properties;

    

    Product Recall means a vehicle
repair campaign (whether voluntary or required by a Governmental Entity) to
address safety-related or emissions-related product defects or non-compliances,
where Jaguar and/or Land Rover, their importer, national sales company, or other
market representative has directly notified each affected customer to deliver
the vehicle in question to an authorized service provider for repair, and where
the subject repair was performed at no cost to the customer;

    

    Product Regulatory Requirement
means a mandatory legal standard, certification, or approval related to motor
vehicle safety, emissions, or the environment, that must be met or obtained by
the Target Companies or Embedded NSCs in order for Jaguar or Land Rover vehicles
to be legally sold or imported in countries where the Target Companies or
Embedded NSCs sell or import JLR vehicles;

    

    
      
        
           

        

        
          20

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    Property Owning Entity
means:

    

    
      	
               
      

            	
              (a)

            	
              in
      relation to the UK Properties the entity specified as the “registered
      proprietor/owner at the date of this Sale and Purchase Agreement” in Parts
      1 and 2 of Schedule 10; and

            

    

    

    
      	
               
      

            	
              (b)

            	
              in
      relation to the NSC Target Properties the entity specified as the “Current
      Corporate Entity” in relation to that property in Part 3 of Schedule
      10;

            

    

    

    Proposed Transaction means the
sale and purchase of the Sale Shares and the JLR Assets, and the issuance of and
subscription for the Tata Subscription Shares as contemplated by the terms of
this Sale and Purchase Agreement;

    

    Prospective Dealer/Framework
Agreement Termination Notice has the meaning given to that term in
Schedule 9;

    

    Prospective Dealer Agreement
has the meaning given to that term in Schedule 9;

    

    Purchase Price means the total
consideration payable for the Sale Shares and the JLR Assets in accordance with
Clause 3.1;

    

    Receivables means receivables
owing to any member of the Seller Group in respect of goods supplied or services
rendered prior to Completion (whether or not such goods or services have been
invoiced prior to Completion) and relating exclusively to Jaguar and/or Land
Rover;

    

    Relief is defined in the Tax
Deed;

    

    Reorganisation Plan means the
reorganisation plan (as amended from time to time in accordance with Clause 6.7)
for each jurisdiction in which there is a Delayed NSC and which details: (i)
where appropriate, the legal steps required for the establishment of the NSC
Newco in the relevant jurisdiction; (ii) the Transfer Conditions; (iii) the
other permits, consents, licences and regulatory approvals (which are not
Transfer Conditions) in connection with the trading and operations of the NSC
Newco or Target Company; (iv) the steps required to be undertaken for the
Embedded NSC Assets, applicable NSC Transferring Employees and applicable
related Assumed Liabilities of the Delayed NSC to be transferred into the
relevant NSC Newco, the relevant Target Company or the relevant Third Party
Importer; (v) where appropriate, the steps required for the sale of shares in
the NSC Newco to the Buyer; or a Target Company (vi) where appropriate, the
steps to create a list of accounts and opening balance sheet for the NSC Newco;
and (vii) which annexes a compilation of the assets by category of the Embedded
NSC Assets and the Seller’s best estimate of the Assumed Liabilities in respect
of the Delayed NSC;

    

    Replacement Dealer Agreement
has the meaning given to that term in Schedule 9;

    

    Replacement Prospective Dealer
Agreement or Framework Agreement has the meaning given to that term in
Schedule 9;

    

    
      
        
           

        

        
          21

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    Representative Body means any
association, trade union, works council or any person elected or appointed to
represent any employees of the Target Companies or any NSC Transferring
Employees;

    

    Reserved Territory means
France;

    

    Restricted Stock Units has the
meaning set out in clause 6 (Stock and Other Stock-Based and Combination Awards)
of the Long-Term Incentive Plan;

    

    Sale and Purchase Agreement
means this Sale and Purchase Agreement;

    

    Sale Companies means the
companies listed in Part 1 of Schedule 1;

    

    Sale Shares means all of the
issued shares in the Sale Companies owned by the Seller Group, details of which
as at the date hereof are set out in Part 1 of Schedule 1, any Ford Subscription
Shares, and the whole of the issued share capital of each NSC Newco to the
extent that the shares of such NSC Newco are transferred at the Completion Date
to the transferee indicated in Schedule 19;

    

    Secondee means those
individuals identified in the Employee Lists and Secondee Lists in the
Disclosure Letter who are to be seconded under any of the Secondment
Agreements;

    

    Secondment Agreements means
the agreements (excluding the Ford US Secondment Agreement) to be entered into
between relevant members of the Seller Group and the Buyer’s Group which provide
for the secondment of certain individuals between them on specified terms in the
Agreed Form or (subject to the agreement of the parties) with such amendments as
may be necessary in order to comply with local law in a particular
jurisdiction;

    

    Seller Group means the Seller
together with its Affiliates from time to time but excluding the Target
Companies and (to the extent they exist and have acquired any Embedded NSC
Assets at the relevant time) NSC Newcos;

    

    Seller Group Shared Services
Headcount means the number of full time equivalent headcount which the
relevant Seller Group Company utilises in a Shared Services Territory as
identified in the Disclosure Letter;

    

    
      
        
           

        

        
          22

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    Seller IT Contract means all
agreements (including all insurance policies, licence, lease, development,
maintenance, support, escrow, security, disaster recovery, website hosting,
outsourcing, facilities management, utilisation, bureau, on line services and
service agreements) under which:

    

    
      	
               
      

            	
              (a)

            	
              any
      member of the Seller Group has the right to use or otherwise exploit the
      IT System and IT Infrastructure owned or provided by any third party;
      or

            

    

    

    
      	
               
      

            	
              (b)

            	
              any
      member of the Seller Group has provided or agreed to provide the IT System
      and IT Infrastructure to any third
party;

            

    

    

    Seller Third Party “B” Licence
means an agreement in the name of a member of the Seller Group as
identified in Part B of Schedule 22;

    

    Seller’s Relief has the same
meaning as Covenantor’s Relief in the Tax Deed;

    

    Seller’s Solicitors means
Hogan & Hartson of Juxon House, 100 St Paul’s Churchyard, London, EC4M
8BU;

    

    Seller Wrong Pocket Employee
means an individual identified as such in the Employee Lists referred to in the
Disclosure Letter;

    

    Separation Agreements means
documents listed in Part 2 of Schedule 15;

    

    Separation Product Supply
Agreements means each of the supply agreements listed in Part 2 of
Schedule 15 (under section C and numbered 1, 2, 3, 4, 5 and 7);

    

    Shared Services Employee means
a JLR Employee who occupies a role which involves performing work for Jaguar
and/or Land Rover and another Seller Group brand;

    

    Shared Services Territory
means Australia, Brazil, China, Japan, Korea and Norway;

    

    Specified Working Capital
Amount means the negative amount of US$600,000,000;

    

    Split Contract means any
contract, engagement, licence, guarantee and other commitment with a third party
entered into by, or held on trust for or assigned to, any member of the Seller
Group and/or a Target Company which relates partly to Jaguar and/or Land Rover
and partly to any other business carried on by the Seller Group other than the
Excluded Contracts;

    

    Stock means raw materials,
unfinished goods, parts and work in progress relating exclusively to Jaguar
and/or Land Rover;

    

    Stock Option has the meaning
set out in clause 5 (Options and Stock Appreciation Rights) of the Long-Term
Incentive Plan;

    

    Surviving Contracts means the
agreements identified in Schedule 13;

    

    
      
        
           

        

        
          23

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    Target Companies
means:

    

    
      	
               
      

            	
              (a)

            	
              the
      Sale Companies;

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      JLR Subsidiaries; and

            

    

    

    
      	
               
      

            	
              (c)

            	
              Land
      Rover (South Africa) (Pty) Ltd,

            

    

    

    and Target Company means any of
them;

    

    Tata Subscription Shares means
new ordinary shares in Land Rover UK subscribed by the Buyer or a member of the
Buyer’s Group at Completion;

    

    Tax is defined in the Tax
Deed;

    

    Tax Authority is defined in
the Tax Deed;

    

    Tax Deed means the indemnity
relating to Tax to be entered into on Completion between the Seller and the
Buyer in the Agreed Form;

    

    Taxes Act 1988 is defined in
the Tax Deed;

    

    TCGA is defined in the Tax
Deed;

    

    Territory means any territory
in which any Target Company, NSC Newco (to the extent it exists at the relevant
time) or, in relation to Jaguar and/or Land Rover, any member of the Seller
Group carries on business;

    

    Third Party Agreement has the
meaning set out in Paragraph 10.1.5 of Schedule 4;

    

    Third Party Importer means a
person or entity unrelated to the Buyer’s Group, the Target Companies or the
Seller Group to which an Embedded NSC is to be transferred as contemplated by
Section 3 Part 2 of Schedule 8;

    

    Third Party IP means
Intellectual Property Rights owned by a third party;

    

    Third Party IT means aspects
of the IT System or of Company Applications and Services that are owned by a
third party;

    

    TOPS Lease means a lease to be
entered into between Jaguar Cars Limited and Ford Motor Company Limited of an
area comprising site for trailer parking spaces and a building comprising
offices and canteen forming part of the Halewood Site;

    

    TOPS Service Level Agreement
means an agreement relating to the occupation by Ford Motor Company
Limited of part of the Halewood Site as a result of the TOPS Lease in the Agreed
Form;

    

    
      
        
           

        

        
          24

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    Transfer Conditions means in
relation to an Embedded NSC;

    

    
      	
               
      

            	
              (a)

            	
              the
      conditions set out in Part 2 of Schedule 8, being the registrations,
      permits and licences which the Seller is advised by local counsel are
      required for the NSC Newco to operate and trade lawfully (save where any
      Law prevents such registrations, permits and licenses from being obtained
      before the Embedded NSC has been transferred to the NSC Newco);
      and

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      occurrence of the separation actions with respect to such Embedded NSC
      specified in relation to the NSC Properties set out in category B of Part
      3 of Schedule 10 (such actions to be carried out in accordance with Part 4
      of Schedule 10);

            

    

    

    Transferring Dealer Agreement
has the meaning given to that term in Schedule 9;

    

    Transaction Documents means
this Sale and Purchase Agreement and any other documents entered into pursuant
hereto, being each of the documents referred to in Schedule 15;

    

    Treaty means the double
taxation agreement between the United Kingdom and the jurisdiction in which the
Treaty Seller is resident for tax purposes;

    

    Treaty Seller means a licensor
or assignor of United Kingdom Patents resident in a Treaty State and which is
entitled, in respect of the payment of IP Consideration relating to United
Kingdom Patents, to the benefit of the provision of the relevant Treaty which
makes provision for full exemption from the Tax that would otherwise be imposed
under section 524(3) of ICTA 1988 and/or section 910 of the Income Tax Act
2007;

    

    Treaty State means a
jurisdiction having a Treaty with the United Kingdom which makes provision for
full exemption from any Tax imposed under section 524(3) of ICTA 1988 and/or
section 910 of the Income Tax Act 2007;

    

    UK Pension Schemes means the
JPP, JEPP and the LRPS;

    

    UK Properties means together
the Certificated Properties and the Uncertificated Properties, and UK Property means any one of
them;

    

    UK Seller means a licensor or
assignor of United Kingdom Patents resident in the United Kingdom for Tax
purposes;

    

    Uncertificated Properties
means the properties identified in Part 2 of Schedule 10;

    

    United Kingdom Patents means
“United Kingdom patents” as defined at section 533 of ICTA 1988;

    

    US$ means United States
Dollars;

    

    US Dealer Agreement has the
meaning given to that term in Schedule 9;

    

    
      
        
           

        

        
          25

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    US Dealer Wrongful Termination Claim
has the meaning given to that term in Schedule 9;

    

    US GAAP means United States
Generally Accepted Accounting Principles;

    

    VAT means value added tax
chargeable under or pursuant to VATA 1994 or the EC Council Directive
2006/112/EC on the common system of value added tax or any similar sales,
purchase or turnover tax chargeable outside the European Union;

    

    VATA 1994 means the Value
Added Tax Act 1994;

    

    Vehicle Finance Separation
Agreements means (i) the Vehicle Finance Separation Agreement between
Ford Motor Credit Company LLC and Land Rover UK in the Agreed Form; and (ii) the
Vehicle Finance Separation Agreement between Ford Motor Credit Company LLC and
Jaguar Cars Limited in the Agreed Form;

    

    Vendor Diligence Reports means
the vendor diligence reports dated 5 July 2007 and 15 June 2007 prepared for the
Buyer at the request of the Seller by KPMG LLP and Bain & Company Inc.,
respectively;

    

    Visteon means Visteon Global
Technologies, Inc.;

    

    Visteon Intellectual Property
Agreement means the Intellectual Property Agreement entered into by and
between Visteon Global Technologies, Inc., and Ford Global Technologies, Inc.,
dated 31 March 2000;

    

    Voluntary Termination Agreement
has the meaning given to that term in Schedule 9;

    

    Warranties means the
warranties given by the Seller in Clause 11.1 and Schedule 4 (including, for
avoidance of doubt, the Bring-Down Warranties) and any warranties given by any
member of the Seller Group in the Intellectual Property Agreements or the
Information Technology Agreement;

    

    Waste means any discarded
substance, material or article and includes any waste as defined in the
Environmental Protection Act 1990;

    

    Working Capital Adjustment
means the amount, if any, payable by the Buyer to the Seller or by the Seller to
the Buyer pursuant to Clause ‎10.2.4;
and

    

    Working Capital Amount means
the Working Capital Amount as at Completion, as set out in the Final Completion
Statement.

    

    
      	
              1.2

            	
              Interpretation

            

    

    

    
      	
              1.2.1

            	
              In
      this Sale and Purchase Agreement, subject to any express contrary
      indication:

            

    

    

    
      	
               
      

            	
              (a)

            	
              words
      (including the definitions in Clause 1.1) importing the singular shall
      include the plural and vice versa;

            

    

    

    
      
        
           

        

        
          26

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    
      	
               
      

            	
              (b)

            	
              any
      reference to any gender shall include the other
  genders;

            

    

    

    
      	
               
      

            	
              (c)

            	
              any
      reference to a person shall be
      construed as including:

            

    

    

    
      	
               
      

            	
              (i)

            	
              any
      person, firm, company, corporation, society, trust, foundation,
      government, state or agency of a state or any association or partnership
      (in each case whether or not having separate legal personality) of two or
      more of these;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              a
      reference to the successors, permitted transferees and permitted assignees
      of any of the persons referred to in Paragraph ‎(i)
      above;

            

    

    

    
      	
               
      

            	
              (d)

            	
              any
      reference to this Sale and Purchase Agreement or any other agreement or
      document shall be construed as a reference to that agreement or document
      as it may have been, or may from time to time be, amended, varied,
      novated, replaced or supplemented;

            

    

    

    
      	
               
      

            	
              (e)

            	
              any
      reference to a Clause shall be
      construed as a reference to a clause of this Sale and Purchase
      Agreement;

            

    

    

    
      	
               
      

            	
              (f)

            	
              the
      rule known as the ejusdem generis rule shall not apply and
      accordingly:

            

    

    

    
      	
               
      

            	
              (i)

            	
              general
      words introduced by the word other shall not be given
      a restrictive meaning by reason of the fact that they are preceded by
      words indicating a particular class of acts, matters or things;
      and

            

    

    

    
      	
               
      

            	
              (ii)

            	
              any
      phrase introduced by the words include, including or
      in particular or
      any similar words or expression shall be construed as illustrative and
      shall not be given a restrictive meaning by reason of the fact that they
      are followed by particular examples intended to be embraced by the general
      words;

            

    

    

    
      	
               
      

            	
              (g)

            	
              any
      references to in
      writing shall include any modes of reproducing words in a legible
      and non-transitory form but shall not include
  e-mail;

            

    

    

    
      	
               
      

            	
              (h)

            	
              any
      reference to a Paragraph shall be
      construed as a reference to a paragraph of the Schedule in which such
      reference appears;

            

    

    

    
      	
               
      

            	
              (i)

            	
              any
      reference to a Part shall be construed
      as a reference to a part of the Schedule in which such reference
      appears;

            

    

    

    
      	
               
      

            	
              (j)

            	
              any
      reference to a Schedule shall be
      construed as a reference to a schedule to this Sale and Purchase
      Agreement;

            

    

    

    
      	
               
      

            	
              (k)

            	
              any
      reference to a Law shall be construed as a reference to it as it may have
      been, or may from time to time be, (with or without modification) amended
      or re-enacted except that, as between the parties, no such amendment or
      modification shall apply for the purposes of this Sale and Purchase
      Agreement other than Clauses 8, 23.8 and 23.9 to the extent that it would
      impose any new or extended obligation, liability or restriction on, or
      otherwise adversely affect the rights of, any
  party;

            

    

    

    
      	
               
      

            	
              (l)

            	
              any
      reference to any English statutory reference or legal term for any action,
      remedy, method of judicial proceeding, legal document, legal status,
      court, official, or any legal concept or thing shall in respect of any
      jurisdiction (other than England) be deemed to include what most nearly
      approximates in that jurisdiction to the English legal term or Tax issue
      covered by that statutory reference or legal term;
  and

            

    

    

    
      	
               
      

            	
              (m)

            	
              holding company and
      subsidiary shall
      have the meaning ascribed thereto in Section 736 of the Companies Act
      1985, as amended; and

            

    

    

    
      
        
           

        

        
          27

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
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              (n)

            	
              material means material
      in the context of JLR taken as a whole, unless the context otherwise
      specifies, and when assessing such materiality for the purposes of
      Schedule 4 to this Sale and Purchase Agreement the parties shall have
      regard to the amount agreed by the parties and set out in Paragraph
      1.1.1(a) of Schedule 5.

            

    

    

    
      	
              1.2.2

            	
              The
      table of contents and all headings in this Sale and Purchase Agreement are
      for ease of reference only and shall not affect the interpretation of this
      Sale and Purchase Agreement.

            

    

    

    
      	
              2.

            	
              SALE
      AND PURCHASE

            

    

    

    
      	
              2.1

            	
              Sale
      and Purchase

            

    

    

    Upon the
terms and subject to the conditions of this Sale and Purchase Agreement, the
Seller agrees to sell or procure the sale of, and the Buyer agrees to buy or
procure the purchase by a member of the Buyer’s Group (or, to the extent
permitted by this Sale and Purchase Agreement, a Target Company) of, the Sale
Shares, the JLR Assets (including the Embedded NSC Assets, the Halewood Plant,
the Halewood Assets and the Halewood Properties), the JLR Intellectual Property
Rights and the shares in NSC Newcos not transferred at Completion.

    

    
      	
              2.2

            	
              Sale
      Shares and JLR Assets

            

    

    

    The Sale
Shares shall be sold free from all Encumbrances with Full Title Guarantee and
together with all rights attaching thereto including the right to dividends and
distributions declared, made or paid thereon after Completion, and, subject to
the terms of the Separation Agreements and other Transaction Documents, the JLR
Assets (other than the Halewood Properties to be transferred in accordance with
provisions of Schedule 17 and the Halewood Plant) shall be sold free from all
Encumbrances, other than Permitted Encumbrances, and, subject thereto, with Full
Title Guarantee.

    

    
      	
              3.

            	
              CONSIDERATION

            

    

    

    
      	
              3.1

            	
              Amount

            

    

    

    The total
consideration payable by the Buyer to the Seller for the Sale Shares and, for
and on behalf of the relevant member of the Buyer’s Group or relevant Target
Company (as applicable), for the JLR Assets (other than the Ford Subscription
Shares Consideration, the Jaguar Shares Consideration, the Halewood Plant
Consideration, the Halewood Site Consideration, the Halewood Sports and Social
Club Consideration and the IP Consideration) to be transferred to the Buyer or
the relevant member of the Buyer’s Group or relevant Target Company (as
applicable) hereunder (the Purchase Price) shall be an
amount equal to the Initial Purchase Price as adjusted (in accordance with
Clause 10) by:

    

    
      	
               
      

            	
              (a)

            	
              the
      Intra-Group Balances Adjustment;

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      Net External Indebtedness Adjustment;
and

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      Working Capital Adjustment.

            

    

    

    
      
        
           

        

        
          28

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
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              3.2

            	
              Adjustment
      to the Consideration

            

    

    

    Any
consideration received by the Seller in connection with the transactions
described in this Sale and Purchase Agreement shall be received by the Seller as
agent for and on behalf of the relevant member of the Seller
Group.  Any payment made by the Seller to the Buyer (or by the Buyer
to the Seller) in respect of any Warranty or any claim for any breach of this
Sale and Purchase Agreement or pursuant to any covenant, undertaking or
indemnity contained in this Sale and Purchase Agreement (including the post
Completion adjustments in Clause 10) or the Tax Deed, shall to the extent
possible be made by way of adjustment to the consideration paid under this Sale
and Purchase Agreement.  The Seller shall receive or make such payment
as agent for and on behalf of the relevant member of the Seller Group and such
consideration shall be deemed to have been reduced (or increased, if the payment
is from the Buyer to the Seller) by the amount of that payment.

    

    
      	
              4.

            	
              CONDITIONS
      TO COMPLETION

            

    

    

    
      	
              4.1

            	
              Completion
      shall be conditional upon the satisfaction of the following
      Conditions:

            

    

    

    
      	
              4.1.1

            	
              the
      European Commission (Commission) issuing a
      decision pursuant to Council Regulation (EC) 139/2004 (the EC Merger Regulation)
      that:

            

    

    

    
      	
               
      

            	
              (a)

            	
              the
      Proposed Transaction falls outside the scope of the EC Merger Regulation
      under Article 6.1(a); or

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      Proposed Transaction is compatible with the Common Market under Article
      6.1(b) EC Merger Regulation without attaching to its decision any
      condition or obligation; or

            

    

    

    
      	
               
      

            	
              (c)

            	
              after
      initiating proceedings under Article 6.1(c) EC Merger Regulation, the
      Proposed Transaction is compatible with the Common Market without
      attaching to its decision any condition or obligation;
  or

            

    

    

    
      	
               
      

            	
              (d)

            	
              either
      pursuant to Article 6.1(b) EC Merger Regulation, or after initiating
      proceedings under Article 6.1(c) EC Merger Regulation pursuant to Article
      8(2) EC Merger Regulation, the Proposed Transaction is compatible with the
      Common Market subject to the fulfilment of one or more conditions or
      obligations which the Buyer is obliged to accept in accordance with Clause
      4.2.4 below; or

            

    

    

    
      	
               
      

            	
              (e)

            	
              a
      derogation is granted in accordance with Article 7(3) EC Merger
      Regulation.

            

    

    

    
      	
              4.1.2

            	
              any
      applicable waiting period (including extensions of such periods) which may
      be required under the Hart-Scott Rodino Antitrust Improvements Act 1976
      (as amended) (HSR
      Act) and the regulations made under the HSR Act having expired,
      lapsed or been terminated in respect of the Proposed Transaction provided
      that the Buyer and the Seller shall each promptly make an appropriate
      filing of the notification and report form under the HSR Act in respect of
      the Proposed Transaction and promptly provide any additional information
      and documentary material requested pursuant to the HSR
  Act;

            

    

    

    
      	
              4.1.3

            	
              except
      to the extent waived pursuant to Clauses 4.3.1, 4.3.2 or 4.3.3, all other
      mandatory merger control filings in respect of the Proposed Transaction in
      the jurisdictions listed in Schedule 18 having been made and all approvals
      necessary for the Proposed Transaction having been obtained from each
      relevant Competition Authority in such jurisdiction, in each case whether
      by lapse of time or by express confirmation of the relevant Competition
      Authority; and

            

    

    

    
      
        
           

        

        
          29

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
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              4.1.4

            	
              each
      of the Seller, the Buyer and all other parties named or referred to as an
      applicant in the applications for the Clearance Statements having not
      received any written notice from the Pensions Regulator that any of the
      Clearance Statements have ceased to bind the Pensions Regulator, any such
      notice being in effect immediately before the last of the Conditions in
      Clauses 4.1.1, 4.1.2 and 4.1.3 has either been satisfied or duly
      waived.

            

    

    

    
      	
              4.2

            	
              Efforts
      to Satisfy the Conditions

            

    

    

    
      	
              4.2.1

            	
              Subject
      to Clause 4.2.4 the Seller and the Buyer shall each use all reasonable
      endeavours to ensure satisfaction of the Conditions at its own expense,
      including the payment of any fees to any Governmental Entity or
      Competition Authority associated with notifying the Proposed Transaction
      pursuant to the HSR Act and any other applicable mandatory merger
      notifications required under Clause 4.1 above, provided that the Buyer
      shall on Completion reimburse the Seller for any fees paid by the Seller
      to any Governmental Entity or Competition Authority associated with
      notifying the Proposed Transaction.

            

    

    

    
      	
              4.2.2

            	
              The
      Buyer and the Seller shall furnish to each other such necessary
      information and reasonable assistance as may be requested in order to
      determine the jurisdictions in which the approvals referred to in Clause
      4.1.3 should be obtained, and in connection with preparation of any filing
      or submission that is necessary under Clauses 4.1.1 to
    4.1.3.

            

    

    

    
      	
              4.2.3

            	
              Without
      prejudice to the generality of the Buyer’s obligations pursuant to Clause
      4.2.1, but subject to Clause 4.2.4 the Buyer shall as soon as possible
      after the date of this Sale and Purchase Agreement take all steps
      necessary to obtain all mandatory consents, approvals or authorisations of
      any Governmental Entity or Competition Authority that are required in
      order to complete the Proposed Transaction and other transactions
      contemplated by the Transaction Documents
  including:

            

    

    

    
      	
               
      

            	
              (a)

            	
              filing
      any mandatory notification and submission to all relevant Governmental
      Entities and Competition Authorities as soon as practicable and, in the
      case of the filings referred to in Clauses 4.1.1 and 4.1.2, no later than
      ten (10) Business Days following the date of this Sale and Purchase
      Agreement (or, with respect to any filings made within such period which
      the relevant Governmental Entity or Competition Authority has determined
      to be incomplete, such later date on which the relevant Governmental
      Entity or Competition Authority shall accept the relevant filing as
      complete, it being understood that the Buyer and the Seller shall use all
      reasonable endeavours to submit a complete filing as soon as practicable,
      and in any case within ten (10) Business Days of the date the Governmental
      Entity or Competition Authority has determined the filing to be
      incomplete), and the payment of any filing fees assessed by any
      Governmental Entity or Competition Authority. Any such notification and
      submission, as well as any supplemental information requested thereafter,
      shall be in substantial compliance with the requirements of the relevant
      Governmental Entities and Competition
  Authorities;

            

    

    

    
      	
               
      

            	
              (b)

            	
              providing
      the Seller with the opportunity to review and comment on any drafts of
      notifications and communications proposed to be submitted to any
      Governmental Entity or Competition
Authority;

            

    

    

    
      	
               
      

            	
              (c)

            	
              providing
      the Seller with copies of all communications (other than communications
      which are immaterial) with any Governmental Entity or Competition
      Authority (which relate to the Proposed Transaction) as soon as reasonably
      practicable after being sent or received (as the case may be);
      and

            

    

    

    
      
        
           

        

        
          30

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    
      	
               
      

            	
              (d)

            	
              consulting
      with and providing the Seller with the opportunity to participate in any
      material meetings, conference calls or other discussions with any
      Governmental Entity or Competition Authority (save to the extent such
      meetings, conference calls or other discussions relate to information
      which is confidential to the
Buyer).

            

    

    

    
      	
              4.2.4

            	
              The
      Buyer shall not be obliged to give any undertakings, whether behavioural
      or structural, to any relevant Governmental Entity or Competition
      Authority in order to secure satisfaction of the Conditions in Clauses
      4.1.1 to 4.1.3, other than such undertakings as it considers, acting
      reasonably, to be satisfactory to it, nor to accept the imposition of any
      conditions or obligations in respect of any consent or approval obtained
      in connection with the Conditions in Clauses 4.1.1 to 4.1.3, other than
      such conditions or obligations as it considers, acting reasonably, to be
      satisfactory to it.

            

    

    

    
      	
              4.2.5

            	
              If
      at any time the Buyer or the Seller becomes
  aware:

            

    

    

    
      	
               
      

            	
              (a)

            	
              of
      a fact or circumstance that might prevent any of the Conditions set out in
      Clause 4.1 being satisfied; or

            

    

    

    
      	
               
      

            	
              (b)

            	
              that
      any of the Conditions set out in Clause 4.1 has been
      satisfied,

            

    

    

    it shall
immediately inform the other in writing giving such detail as is
practicable.

    

    
      	
              4.3

            	
              Waiver
      or Failure to Satisfy the
Conditions

            

    

    

    
      	
              4.3.1

            	
              Subject
      to Clause 4.3.2, the Conditions may only be waived by written agreement of
      the Seller and the Buyer provided
that:

            

    

    

    
      	
               
      

            	
              (a)

            	
              if
      the Condition at Clause 4.1.4 (the Pensions Condition) is
      unfulfilled solely by reason of the Buyer having breached the covenant at
      Clause 5.8.1 or because the Buyer has breached its warranty and
      undertaking in Paragraph 7 of Schedule 11 the Seller alone may waive
      fulfilment of the Pensions Condition (in which case the Buyer shall be
      obliged to proceed to Completion upon satisfaction or waiver of the other
      Conditions); and

            

    

    

    
      	
               
      

            	
              (b)

            	
              if
      the Pensions Condition is unfulfilled solely by reason of the Seller
      having breached the covenant at Clause 5.8.2 or because the Seller has
      breached its warranty and undertaking in Paragraph 7 of Schedule 11 the
      Buyer alone may waive fulfilment of the Pensions Condition (in which case
      the Seller shall be obliged to proceed to Completion upon satisfaction or
      waiver of the other Conditions).

            

    

    

    
      	
              4.3.2

            	
              The
      Buyer may at any time, without the prior agreement of the Seller and
      acting in its sole discretion, waive the Conditions set forth in Clause
      4.1.3 in respect of those jurisdictions listed in Part B of Schedule 18,
      by giving notice in writing to the
Seller.

            

    

    

    
      	
              4.3.3

            	
              If
      all of the Conditions set forth in Clause 4.1 have been satisfied (or
      waived in accordance with Clauses 4.3.1 or 4.3.2), other than any merger
      control approval which remains outstanding in any jurisdiction identified
      in Part C of Schedule 18, the Buyer and the Seller agree to waive the
      Condition set forth in Clause 4.1.3 in respect of such outstanding merger
      control approval or approvals, provided that the Buyer is at that time
      satisfied, acting in its sole discretion, that implementation of any
      transaction contemplated by this Sale and Purchase Agreement on the basis
      of such a waiver (i) would not violate any local Law, (ii) would not have
      a material adverse effect upon the Guarantor or any of its Affiliates or
      any Target Company, and (iii) would not create a risk of harm to the
      business reputation of the Guarantor or any of its Affiliates or any
      Target Company, or any director, officer, employee, consultant or agent of
      any of them, and provided further that the Seller is at that time
      satisfied, acting in its sole discretion, that any such waiver (a) would
      not violate any local Law; (b) would not have a material adverse effect
      upon the Seller or any of its Affiliates, and (c) would not create a risk
      of harm to the business reputation of the Seller or any its Affiliates, or
      any director, officer, employee, consultant or agent of any of
      them.

            

    

    

    
      
        
           

        

        
          31

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
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              4.3.4

            	
              In
      the event that any Condition related to a merger control approval in any
      jurisdiction identified in  Part B or Part C of Schedule 18 is
      waived in accordance with this Clause 4.3 with respect to any
      jurisdiction, any Target Company, Embedded NSC or NSC Newco organised in
      such jurisdiction, and any JLR Assets located in such jurisdiction, shall
      not be transferred to the Buyer at Completion, but shall continue to be
      held by the Seller Group until such time as the Condition with respect to
      such jurisdiction is met, whereupon the relevant Target Company and JLR
      Assets shall be promptly transferred to the Buyer (or as the Buyer may
      direct), and/or the relevant Embedded NSC shall be transferred pursuant to
      Clauses 7 and 8.

            

    

    

    
      	
              4.3.5

            	
              If
      any of the Conditions has not been satisfied or waived by the Long Stop
      Date, this Sale and Purchase Agreement shall automatically
      terminate.

            

    

    

    
      	
              4.4

            	
              Effect
      of Termination

            

    

    

    If this
Sale and Purchase Agreement terminates pursuant to Clause 4.3.5 or Clause 6.4 to
6.6 each party’s
further rights and obligations cease immediately on termination (save for
Clauses ‎1 (Definitions
and Interpretation), 23.2 (Announcements), ‎23.3 (Confidentiality), 23.7 (Costs), ‎23.15 (Notices), 24 (Governing Law and Disputes)
and Paragraphs 9 to 11 of Schedule 9, which will continue in full force and
effect) but without prejudice to any accrued rights and obligations at the date
of termination.

    

    
      	
              5.

            	
              PERIOD
      BETWEEN EXCHANGE AND COMPLETION

            

    

    

    
      	
              5.1

            	
              Restricted
      Activities

            

    

    

    Subject
to Clause 5.2, the Seller shall procure that, between the date of this Sale and
Purchase Agreement and Completion (or with respect to an Embedded NSC which is
the subject of a waiver pursuant to Clause 4.3.3 until the Condition to which
the waiver relates is met), each Target Company, each Embedded NSC and each NSC
Newco from the date on which it acquires any Embedded NSC Assets insofar as such
date is prior to Completion shall carry on its business in the ordinary and
usual course in compliance with all Laws and as carried on prior to the date of
this Sale and Purchase Agreement, and shall not carry out any of the acts
specified in Schedule 7 without the Buyer’s prior written consent, provided that
the Seller may complete the Pre-Completion Reorganisation and the NSC
Reorganisation without obtaining such consent.  The Seller shall
notify the Buyer of any matter, circumstance or omission which could reasonably
be expected to give rise to a breach of this Clause 5.1.

    

    
      	
              5.2

            	
              Access

            

    

    

    Except as
otherwise prohibited by Law, between the date of this Sale and Purchase
Agreement and Completion, upon reasonable request in writing of the Buyer, the
Seller shall provide to representatives of the Buyer reasonable access during
normal business hours to the premises (including the Halewood Site and other
plants and offices), books, records, officers, directors and employees of the
Target Companies and the Embedded NSCs, and shall furnish representatives of the
Buyer with such financial and operating data and other information (other than
such data or other information (if any) that is restricted under the Vehicle
Finance Separation Agreements) with respect to the businesses and assets of the
Target Companies and the Embedded NSCs (and including such information and
documentation relating to the plans and arrangements specified in Part 2 of
Schedule 11 as the Buyer shall reasonably require in order to perform its
obligations under Clause 16 and Schedule 11 and as has not prior to the date of
this Sale and Purchase Agreement been provided in the Data Room), so long as
such access shall not result in an unreasonable interference with the operation
of the business of the Target Companies or the Embedded NSCs.  For the
avoidance of doubt, nothing contained in this Clause 5.2 shall give the Buyer,
directly or indirectly, rights to control or direct the operations of the Target
Companies or the Embedded NSCs prior to Completion.

    

    
      
        
           

        

        
          32

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
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              5.3

            	
              General
      Obligations

            

    

    

    Notwithstanding
the provisions of Clause 5.1 or Schedule 7 or anything else contemplated by this
Sale and Purchase Agreement, between the date of this Sale and Purchase
Agreement and Completion, the prior consent of the Buyer shall not be required
(and the provisions of Clause 5.1 and Schedule 7 shall not apply) in respect of
the following acts, matters or conduct:

    

    
      	
              5.3.1

            	
              any
      act or conduct which any Target Company or any Embedded NSC is required to
      take or omit to take as a result of, or in order not to violate, any
      Law;

            

    

    

    
      	
              5.3.2

            	
              the
      completion or performance of any obligations undertaken pursuant to any
      contract or arrangement entered into prior to the date of this Sale and
      Purchase Agreement in accordance with the terms
  thereof;

            

    

    

    
      	
              5.3.3

            	
              any
      act, matter or conduct to be taken by the Seller, any member of the Seller
      Group, any Target Company or any Embedded NSC in accordance with this Sale
      and Purchase Agreement or any other Transaction Document, including
      without limitation any act or conduct taken in accordance with the
      Pre-Completion Reorganisation or the NSC
  Reorganisation;

            

    

    

    
      	
              5.3.4

            	
              any
      act, matter or conduct reasonably undertaken in response to events or
      circumstances beyond the Seller’s control capable of having a material
      adverse effect upon Jaguar, Land Rover, any Target Company or any Embedded
      NSC, with the intention of minimising such
  effect;

            

    

    

    
      	
              5.3.5

            	
              any
      act, matter or conduct undertaken at the written request of the
      Buyer;

            

    

    

    
      	
              5.3.6

            	
              the
      capitalisation of Jaguar Cars Limited and Land Rover UK to fund the JPP
      Contribution, JEPP Contribution and LRPS
  Contribution;

            

    

    

    
      	
              5.3.7

            	
              cash
      management, treasury and other transactions among the Target Companies and
      the Seller Group undertaken with the intention of positioning the Target
      Companies toward a debt-free cash-free position at Completion, including
      but not limited to the payment of dividends by Target Companies, the
      contribution of capital to Target Companies, the issuance of shares by
      Target Companies, the granting of loans to and from Target Companies, the
      settlement or waiver of loans to or from Target Companies and the
      reorganisation of or reduction in the share capital of Target Companies,
      provided that no such transaction may constitute financial assistance
      within the meaning of sections 151 et seq of the Companies Act 1985 in
      connection with the acquisition of any Sale Shares pursuant to this Sale
      and Purchase Agreement; or

            

    

    

    
      
        
           

        

        
          33

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
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              5.4

            	
              Transfer
      of Tooling

            

    

    

    Prior to
Completion the Seller shall or shall procure the transfer of ownership on the
basis of accounting principles set out in column five of Schedule 20
of:

    

    
      	
              5.4.1

            	
              the
      Non-Common Tooling from the Seller to Jaguar or Land
  Rover;

            

    

    

    
      	
              5.4.2

            	
              the
      Non-Common Tooling from Jaguar or Land Rover to the
  Seller;

            

    

    

    
      	
              5.4.3

            	
              the
      Common Tooling from Jaguar or Land Rover to the Seller,
  and

            

    

    

    
      	
              5.4.4

            	
              the
      Common Tooling from the Seller or a member of the Seller Group to Jaguar
      or Land Rover,

            

    

    

    as set
out in Schedule 20 of this Sale and Purchase Agreement.

    

    
      	
              5.5

            	
              Request
      for Consent

            

    

    

    The Buyer
shall promptly deal with any written request for consent made by the Seller
during the period between the date of this Sale and Purchase Agreement and
Completion in relation to any matter which, to be undertaken, requires the
consent of the Buyer and the Buyer shall not unreasonably withhold or delay any
such consent.  If the Buyer fails to respond within ten (10) Business
Days to any written request made by the Seller for the purposes of this Clause
5.5, the Buyer shall be deemed to have consented in writing to all matters to
which such request relates.

    

    
      	
              5.6

            	
              Pre-Completion
      Reorganisation

            

    

    

    Between
the date of this Sale and Purchase Agreement and Completion, the Seller may
procure that the relevant members of the Seller Group and the Target Companies
shall implement any of the steps set out in the Pre-Completion Reorganisation in
accordance with Part 1 of Schedule 8.

    

    
      	
              5.7

            	
              US
      Dealers

            

    

    

    The Buyer
and the Seller shall give effect to Schedule 9 in relation to Jaguar dealers in
the United States.

    

    
      	
              5.8

            	
              Pensions
      Undertakings

            

    

    

    
      	
              5.8.1

            	
              Save
      as required by Law and subject to Paragraph 7 of Schedule 11, the Buyer
      undertakes that it shall not without the prior written consent of the
      Seller take, between the date of this Sale and Purchase Agreement and
      Completion, any action that will or could reasonably be expected by the
      Buyer acting reasonably to lead directly to any of the Clearance
      Statements ceasing to bind the Pensions Regulator or to the trustees of
      any of the JPP, JEPP and LRPS giving notice referred to in Clause
      5.8.5.

            

    

    

    
      	
              5.8.2

            	
              Save
      as required by Law and subject to Paragraph 7 of Schedule 11 Part 1, the
      Seller undertakes that it shall not without the prior written consent of
      the Buyer take, between the date of this Sale and Purchase Agreement and
      Completion, any action that will or could reasonably be expected by the
      Seller acting reasonably to lead directly to any of the Clearance
      Statements ceasing to bind the Pensions Regulator or to the trustees of
      any of the JPP, JEPP and LRPS giving notice referred to in Clause
      5.8.5.

            

    

    

    
      
        
           

        

        
          34

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    
      	
              5.8.3

            	
              The
      Seller and the Buyer each undertake to promptly notify the other of any
      fact or matter known to it which will or could reasonably be expected by
      the notifying party, acting reasonably, to lead to any of the Clearance
      Statements ceasing to bind the Pensions
  Regulator.

            

    

    

    
      	
              5.8.4

            	
              The
      Seller undertakes to use reasonable endeavours following the date of this
      Sale and Purchase Agreement (upon request in writing by, and for the
      benefit of, the Buyer and/or Jaguar Cars Limited or Land Rover UK) to
      enforce compliance with, or to restrain any actual or proposed breach of,
      the obligation of the trustees of the JPP, JEPP and LRPS under clause 2(e)
      of each of the Heads of Agreement.  The Buyer or Jaguar Cars
      Limited or Land Rover UK (as the Buyer deems appropriate) shall reimburse
      the Seller for all reasonable costs as are incurred by the Seller in any
      action requested in writing by the Buyer under this Clause
      5.8.4.

            

    

    

    
      	
              5.8.5

            	
              The
      Seller and the Buyer agree that, without prejudice to Clause 5.8.4 above,
      if during the period between the date of this Sale and Purchase Agreement
      and Completion any of the Seller, the Buyer, Jaguar Cars Limited or Land
      Rover UK receives a formal notice in writing from the trustees of any of
      the JPP, JEPP or LRPS that they do not intend to comply with, or they seek
      to vary or amend, their respective Heads of Agreement (including by
      supplement thereto or the amendment of any attachment thereto), the
      parties’ obligations (including without limitation those set forth in
      Clause 6.2) under this Sale and Purchase Agreement to proceed to
      Completion shall be suspended until such time as the formal notice
      aforesaid is withdrawn by the relevant trustees or until the Buyer and the
      Seller otherwise agree in writing. 

            

    

    

    
      	
              5.9

            	
              Information
      Technology

            

    

    

    
      	
              5.9.1

            	
              The
      Seller undertakes to provide to the Buyer at Completion an updated list of
      the JLR IT System and Infrastructure as a Schedule to the Information
      Technology Agreement, with such list to be provided and updated as
      contemplated by such agreement.

            

    

    

    
      	
              5.9.2

            	
              The
      Seller undertakes to provide to the Buyer at Completion an updated list of
      the IT System and IT Infrastructure as a Schedule to the Information
      Technology Agreement, with such list to be provided and updated as
      contemplated by such agreement.

            

    

    

    
      	
              5.9.3

            	
              The
      Seller undertakes to provide to the Buyer at Completion updated Schedules
      C-1, C-2 and F to the Information Technology Agreement with such schedules
      to be provided and updated as contemplated by such
    agreement.

            

    

    

    
      	
              5.9.4

            	
              Without
      prejudice to Jaguar Cars Limited’s and Land Rover UK’s rights and remedies
      under the Information Technology Agreement, if, between the date of this
      Sale and Purchase Agreement and Completion, the Seller proposes to
      implement an alternative means of continuing the provision of the Ford
      Transition Services because a third party has refused to provide consent
      under any relevant Seller IT Contract or JLR IT Contract prior to
      Completion, the Seller shall provide JLR and the Buyer with reasonable
      details of the proposed alternative
solution.

            

    

    

    
      
        
           

        

        
          35

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
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              5.10

            	
              IP

            

    

    

    
      	
              5.10.1

            	
              The
      Seller undertakes to provide at Completion updated versions of the
      Documented Plans (as such term is defined in the Intellectual Property
      Common Terms Agreement) existing on or immediately prior to Completion as
      a schedule to the Intellectual Property Common Terms
      Agreement.

            

    

    

    
      	
              5.10.2

            	
              The
      Seller shall, subject to the applicable terms of the Intellectual Property
      Agreements, provide to JLR immediately after Completion ownership rights
      or a right of use to all Intellectual Property Rights (other than Trade
      Marks as defined in Clause 5.10.3) owned by any member of the Seller Group
      that at Completion are used or planned for use pursuant to Documented
      Plans (as such term is defined in the Intellectual Property Common Terms
      Agreement) by JLR.

            

    

    

    
      	
              5.10.3

            	
              The
      Seller shall, subject to the applicable terms of the Intellectual Property
      Agreements, provide to JLR immediately after Completion ownership rights
      or a right of use to all trade marks, service marks, trade, business and
      domain names, logos, trade dress or get-up (collectively, Trade Marks) owned by
      any member of the Seller Group that at the date of this Sale and Purchase
      Agreement are used by JLR.

            

    

    

    
      	
              5.10.4

            	
              The
      Seller shall procure from each Identified Third Party “A” Licensor by
      Completion a written agreement to grant a licence in the respective
      Identified Third Party “A” IP, to those Target Companies licensed pursuant
      to the respective Seller Third Party “A” Licence, on terms (including
      royalties, any use restrictions and any other key commercial terms) and
      duration (a) reasonably comparable to those set forth in the respective
      Seller Third Party “A” Licence, or (b) as otherwise requested by an
      Identified Third Party “A” Licensor and approved by the Buyer (such
      approval not to be unreasonably withheld or delayed); provided
      that:

            

    

    

    
      	
               
      

            	
              (i)

            	
              the
      Buyer shall not obstruct, interfere with or otherwise frustrate the Seller
      in obtaining such agreements;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              the
      Buyer shall use reasonable endeavours, as reasonably requested by the
      Seller, to assist Seller in obtaining any such agreement where the Buyer
      or an Affiliate thereof has a relationship with an Identified Third Party
      “A” Licensor;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              if
      an Identified Third Party “A” Licensor conditions its agreement to grant a
      license on terms that are not reasonably comparable to those set forth in
      the respective Seller Third Party “A” Licence, then the Buyer may, in its
      sole discretion, decide to not require the Seller to obtain such agreement
      from the Identified Third Party “A” Licensor;
  and

            

    

    

    
      	
               
      

            	
              (iv)

            	
              if
      an Identified Third Party “A” Licensor conditions its agreement to grant a
      license upon the payment of fees, royalties or other amounts in excess of
      those attributable to the Target Companies’ use under the corresponding
      Seller Third Party “A” License, then the Seller and the Buyer shall share
      equally in the difference between any such fees, royalties or other
      amounts and those in the respective Seller Third Party “A”
      License.

            

    

    

    
      	
              5.10.5

            	
              The
      Seller shall procure by Completion an agreement from Getrag to assign
      substantially all of the Seller’s rights and obligations in the Getrag IP
      Agreement to Land Rover UK or enter into a separate agreement providing
      Land Rover UK with substantially similar rights and obligations, which
      agreement shall be executed by Getrag, subject to Volvo Car Corporation’s
      right to retain equal rights and obligations as the Seller in the Getrag
      IP Agreement.

            

    

    

    
      
        
           

        

        
          36

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    
      	
              5.10.6

            	
              The
      Seller shall grant a sublicense pursuant to the Seller Third Party “B”
      Licenses to the Target Companies, on terms and duration substantially
      similar to those set forth in the respective Seller Third Party “B”
      License; which sublicense shall be executed by the Seller and effective as
      of Completion.  With respect to the Continental Air Suspension
      Licence and Visteon Intellectual Property Agreement, the Seller shall by
      Completion provide the Target Companies with written confirmation that the
      Target Companies’ rights under the covenants not to sue on the part of
      Continental AG and Visteon shall continue after
  Completion.

            

    

    

    
      	
              5.10.7

            	
              The
      Seller shall by Completion procure that the royalties payable under the
      Hill Descent Control Licences shall be paid to Land Rover UK from
      Completion.

            

    

    

    
      	
              5.10.8

            	
              Should,
      through no fault of the Buyer or under Clause 5.10.4(ii), the Seller fail
      to procure one or more agreements, as required pursuant to Clause 5.10.4
      or 5.10.5, then the Seller agrees to indemnify JLR for any and all Losses
      incurred as a result of third party claims based on JLR’s use of the
      Identified Third Party “A” IP in the manner used at Completion or planned
      for use pursuant to Documented Plans.  In no event, however,
      shall the Seller be obligated to indemnify JLR for any such Losses to the
      extent they arise from either:

            

    

    

    
      	
               
      

            	
              (a)

            	
              use
      of any Identified Third Party “A” IP if in a manner not materially in
      accordance with JLR’s use thereof prior to Completion or planned use
      pursuant to Documented Plans; or

            

    

    

    
      	
               
      

            	
              (b)

            	
              use
      of any Identified Third Party “A” IP where the Seller obtained the
      agreement on the part of such Identified Third Party “A” Licensor prior to
      Completion to grant a license on terms reasonably comparable to those set
      forth in the respective Seller Third Party “A” Licence, and Jaguar or Land
      Rover failed to agree to such
terms.

            

    

    

    
      	
              5.10.9

            	
              Any
      on-going royalties, maintenance fees, or other payments under any licenses
      or other agreements subject to this Clause 5.10 after Completion shall be
      the sole responsibility of Jaguar and/or Land Rover, except with respect
      to any fees subject to Clause
5.10.4(iv).

            

    

    

    
      	
              5.11

            	
              Share
      Schemes

            

    

    

    
      	
              5.11.1

            	
              The
      Seller shall accelerate the conditions for the vesting of any Restricted
      Stock Units awarded to any director or employee of any Target Company or
      any Embedded NSC so that such Restricted Stock Units and Stock Options
      shall vest prior to Completion.

            

    

    

    
      	
              5.11.2

            	
              The
      Seller shall:

            

    

    

    
      	
               
      

            	
              (a)

            	
              withhold
      any Tax that is to be duly paid or accounted for to any Tax Authority in
      any relevant jurisdiction arising as a direct result of the vesting of the
      Restricted Stock Units prior to Completion;
and

            

    

    

    
      	
               
      

            	
              (b)

            	
              pay
      any liability to Tax of any Target Company that arises as a direct result
      of the vesting of the Restricted Stock Units and delivery of the shares
      subject to the Restricted Stock Units prior to
  Completion.

            

    

    

    
      	
              5.11.3

            	
              The
      Buyer or the relevant member of the Buyer’s Group, as the case may be,
      after Completion, shall procure that the relevant Target Company
      shall:

            

    

    

    
      	
               
      

            	
              (a)

            	
              reclaim
      any Tax from the relevant director or employee that is to be duly paid or
      that is to be accounted for to any Tax Authority in any relevant
      jurisdiction as a result of the Stock Options awarded to any such director
      or any employee of any Target Company or any Embedded NSC;
    and

            

    

    

    
      
        
           

        

        
          37

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    
      	
               
      

            	
              (b)

            	
              pay
      or procure the payment of any liability to Tax of any Target Company that
      arises as a result of the Stock
Options.

            

    

    

    
      	
              5.11.4

            	
              The
      Seller shall provide the Buyer with sufficient information to enable the
      Buyer or the relevant member of the Buyer’s Group to fulfil its
      obligations to the relevant Tax Authority in relation to the Stock
      Options.

            

    

    

    
      	
              5.11.5

            	
              The
      Seller shall:

            

    

    

    
      	
               
      

            	
              (a)

            	
              withhold
      any Tax that is to be duly paid or that is to be accounted for to any Tax
      Authority in any relevant jurisdiction as a result of the award of any
      Performance Stock Right;

            

    

    

    
      	
               
      

            	
              (b)

            	
              provide
      such amount withheld in Clause 5.11.5(a) above to the Buyer in a timely
      manner so that the Buyer shall account to the relevant Tax Authority in
      any relevant jurisdiction in respect thereof;
  and

            

    

    

    
      	
               
      

            	
              (c)

            	
              provide
      the Buyer with sufficient information to enable the Buyer or the relevant
      member of the Buyer’s Group to fulfil its obligations to the relevant Tax
      Authority in relation to the Performance Stock
  Rights.

            

    

    

    
      	
              5.11.6

            	
              The
      Buyer or the relevant member of the Buyer’s Group shall after Completion
      pay or shall procure that the relevant Target Company shall pay or procure
      the payment of, any Tax liability of any Target Company that arises as a
      result of the award of the Performance Stock
  Rights.

            

    

    

    
      	
              5.12

            	
              Restrictions
      on Estimated Intra Group Balances, Estimated Net External Indebtedness and
      Dividend from Land Rover UK

            

    

    

    Notwithstanding
any other provision of this Sale and Purchase Agreement:

    

    
      	
              5.12.1

            	
              the
      Seller shall procure that the aggregate of the Estimated Net External
      Indebtedness and the Estimated Intra Group Balances shall not in any
      circumstances have the effect, after taking account of all other matters
      to be deducted from the Bid Price in determining the Initial Purchase
      Price, of reducing the Initial Purchase Price to an amount less than US$1
      plus the Completion Business Asset Consideration;
  and

            

    

    

    
      	
              5.12.2

            	
              the
      aggregate amount of dividends paid by Land Rover UK between the date
      hereof and Completion shall not exceed the aggregate amount paid to Land
      Rover UK in respect of the subscription of Ford Subscription
      Shares.

            

    

    

    
      	
              5.13

            	
              Transitional
      Treasury Services

            

    

    

    As soon
as practicable after the date of this Sale and Purchase Agreement (but, in any
event, no less than fourteen (14) days prior to the scheduled Completion Date)
the Seller agrees to submit to Land Rover UK and Jaguar Cars Limited: (i)
reasonably detailed proposals relating to processes, policies and procedures
(Procedures); and (ii)
draft documentation for the provision of Services (as defined in the
transitional services agreements between the Seller and Land Rover UK and the
Seller and Jaguar Cars Limited respectively in the Agreed Form) by the Seller
under Schedule 4 (Treasury
Services) of such transitional services agreements.  The Seller
agrees to consider in good faith and in a timely manner (with an aim to
implementing the Procedures and related documentation on or prior to Completion)
any changes to the Procedures and related documentation reasonably requested by
Land Rover UK and/or Jaguar Cars Limited.  Without limiting its
obligation to act in good faith, the Seller specifically acknowledges that it
shall not be reasonable for the Seller to reject any changes requested by Land
Rover UK and/or Jaguar Cars Limited (i) which have no adverse economic or
workload effect on the Seller and/or its Affiliates; or (ii) which are required
to ensure compliance with Law.  Where the changes requested by Land
Rover UK and/or Jaguar Cars Limited are accepted by the Seller and result in the
Seller incurring an incremental adverse economic effect or increased workload,
the Seller shall be free to charge or require the reimbursement of such costs
and/or expenses by Land Rover UK and/or Jaguar Cars Limited in accordance with
the Cost Categories and Cost Allocation Principles (as defined in the relevant
Transitional Services Agreement).

    

    
      
        
           

        

        
          38

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    
      	
              5.14

            	
              Separation
      Product Supply Agreements

            

    

    

    
      	
              5.14.1

            	
              The
      Seller undertakes to provide to the Buyer at Completion a revised pricing
      appendix to each of the Separation Product Supply Agreements updated (if
      necessary) to reflect any changes in the prices stated in those appendices
      from the date of this Sale and Purchase Agreement to Completion,
      calculated in accordance with the provisions set out in the relevant
      Separation Product Supply
Agreement.

            

    

    

    
      	
              5.14.2

            	
              The
      Seller shall undertake reasonable endeavours to provide to Jaguar Cars
      Limited reasonable details of the variation giving rise to any adjustment
      pursuant to Clause 5.14.1 in relation to any product supplied to Jaguar
      Cars Limited together with, on written request by Jaguar Cars Limited,
      reasonable and appropriate information to verify these
      adjustments.

            

    

    

    
      	
              5.14.3

            	
              The
      Seller shall undertake reasonable endeavours to provide to Land Rover UK
      reasonable details of the variation giving rise to any adjustment pursuant
      to Clause 5.14.1 in relation to any product supplied to Land Rover UK
      together with, on request by Jaguar Cars Limited, reasonable and
      appropriate information to verify these
  adjustments.

            

    

    

    
      	
              5.15

            	
              Unipart
      Arrangements

            

    

    

    The
Seller Group shall continue to sell service parts to Unipart Group Limited for
servicing Destination Vehicles (as such term is defined the Ford Jaguar Supply
Agreement) on the same terms as they had been sold to Unipart Group Limited
during the Comparison Period (as defined in the Ford Jaguar Supply Agreement)
save that such service parts shall be priced in accordance with Schedule 3 of
the Ford Jaguar Supply Agreement until such time as the Seller has used all
reasonable efforts to cooperate with Jaguar Cars Limited and Unipart Group
Limited to agree a new arrangement for the supply to Unipart Group Limited of
service parts to service Destination Vehicles.

    

    
      	
              5.16

            	
              Information
      Barriers Protocol

            

    

    

    The
parties shall give effect, within ten (10) Business Days of the date of this
Sale and Purchase Agreement, to the Information Barriers Protocol set out in
Schedule 23.

    

    
      	
              5.17

            	
              Governance
      Protocol

            

    

    

    The
parties shall between the date of this Sale and Purchase Agreement and the
Completion Date nominate all the necessary persons required pursuant to the
Governance Protocol to the following: (i) the Functional Committee; (ii) the
Business Relationship Group; (iii) the JLR Relationship Board; and (iv) the
Chairman’s Meetings (each as defined in the Governance Protocol).

    

    
      
        
           

        

        
          39

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    
      	
              6.

            	
              COMPLETION

            

    

    

    
      	
              6.1

            	
              Date
      and Place of Completion

            

    

    

    Completion
shall take place on the Completion Date at the offices of the Seller’s
Solicitors.

    

    
      	
              6.2

            	
              Completion
      Matters

            

    

    

    
      	
              6.2.1

            	
              At
      Completion, the following steps shall occur in the following
      order:

            

    

    

    
      	
               
      

            	
              (a)

            	
              firstly,
      the Seller shall procure for the following payments to be
      made:

            

    

    

    
      	
               
      

            	
              (i)

            	
              payment
      by Jaguar Cars Limited of the JPP Contribution to the
  JPP;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              payment
      by Jaguar Cars Limited of the JEPP Contribution to the JEPP;
      and

            

    

    

    
      	
               
      

            	
              (iii)

            	
              payment
      by Land Rover UK of the LRPS Contribution to the
  LRPS;

            

    

    

    
      	
               
      

            	
              (b)

            	
              secondly,
      the Seller shall deliver or procure the transfer to the Buyer or a member
      of the Buyer’s Group nominated by the Buyer of any Ford Subscription
      Shares against the payment by the Buyer (for and on behalf of the relevant
      member of the Buyer’s Group, if applicable) to the Seller of the Ford
      Subscription Shares Consideration;

            

    

    

    
      	
               
      

            	
              (c)

            	
              thirdly,
      the Buyer shall, or shall procure that a member of the Buyer’s Group
      shall, subscribe for such number of Tata Subscription Shares as the Seller
      may specify to it not later than five (5) Business Days prior to
      Completion for cash at an aggregate subscription price of not more than
      the Estimated Intra Group Payables and Estimated Net External Indebtedness
      after deducting an amount equal to the aggregate subscription price paid
      prior to Completion by any member of the Seller Group in respect of any
      Ford Subscription Shares subscribed after notification to the Buyer of the
      Estimated Intra Group Payables and held in cash by Land Rover UK or which
      has been applied in paying off Intra-Group Payables or Net External
      Indebtedness;

            

    

    

    
      	
               
      

            	
              (d)

            	
              fourthly,
      the Seller shall deliver or procure delivery to the Buyer or such member
      of the Buyer’s Group as the Buyer directs the whole of the issued share
      capital of Jaguar Cars Limited against the payment by the Buyer (for and
      on behalf of the relevant member of the Buyer’s Group, if applicable) to
      the Seller of the Jaguar Shares
Consideration;

            

    

    

    
      	
               
      

            	
              (e)

            	
              fifthly,
      the Buyer shall pay to the Seller an amount equal to the Initial Purchase
      Price (for and on behalf of the relevant member of the Buyer’s Group or
      Land Rover UK or Jaguar Cars Limited (as applicable)) and the aggregate
      amount of fees to be reimbursed to the Seller pursuant to Clause 4.2.1 as
      notified by the Seller to the Buyer not later than five (5) Business Days
      prior to Completion and upon payment of the Initial Purchase Price the
      Seller shall procure the transfer of the following, in the following
      order;

            

    

    

    
      	
               
      

            	
              (i)

            	
              any
      remaining shares in Land Rover UK;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              the
      Sale Shares not already transferred pursuant to Clauses 6.2.1(a) to
      6.2.1(d) and 6.2.1(e)(i) above;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              the
      issued shares in any NSC Newcos for which the NSC Reorganisation has been
      completed prior to, or at Completion;
and

            

    

    

    
      
        
           

        

        
          40

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    
      	
               
      

            	
              (iv)

            	
              the
      JLR Assets (other than the Halewood Properties, the Halewood Plant and the
      Halewood Assets),

            

    

    

    in each
case to the Buyer or to such member of the Buyer’s Group or to Land Rover UK or
Jaguar Cars Limited or other Target Company as the Buyer directs or, with
respect to the transfer contemplated by (ii) and (iii) above, to the Target
Companies specified in Schedule 19; and

    

    
      	
               
      

            	
              (f)

            	
              sixthly,
      the Buyer shall pay to the Seller by way of an increase to the purchase
      price for the relevant NSC an amount equal to the NSC Set Up Costs for
      each of the NSC Newcos and Target Companies transferred to the Buyer at
      Completion and the NSC Set Up Costs relating to the agreements entered
      into with Third Party Importers prior to or at
  Completion;

            

    

    

    
      	
              6.2.2

            	
              At
      Completion, and in accordance with the sequence of events set out in
      Clause 6.2.1, the Buyer and the Seller shall comply with their respective
      obligations set out in Schedule 6.

            

    

    

    
      	
              6.2.3

            	
              The
      Initial Purchase Price and the fees and costs referred to in Clauses
      6.2.1(e) and 6.2.1(f) shall be paid by way of telegraphic transfer of
      funds for same day value to the account or accounts notified by the Seller
      to the Buyer at least five (5) Business Days prior to
      Completion.

            

    

    

    
      	
              6.2.4

            	
              Notwithstanding
      any other provisions of this Sale and Purchase Agreement and without
      prejudice to the application of Clause 23.8 to the Halewood Properties,
      the provisions of Schedule 17 shall apply in respect of the Halewood
      Properties.

            

    

    

    
      	
              6.3

            	
              Obligation
      to Complete

            

    

    

    Neither
the Buyer nor the Seller shall be obliged to complete this Sale and Purchase
Agreement unless the other complies in all material respects with its
obligations under Clause 6.2 and Schedule 6.

    

    
      	
              6.4

            	
              Failure
      to Complete 

            

    

    

    If the respective
obligations of the Seller and the Buyer under Clause 6.2‎ are not
complied with in all material respects on the Completion Date, the party which
is not in default may (at its absolute discretion) by written notice to the
other:

    

    
      	
              6.4.1

            	
              defer
      Completion to the earlier of the last Business Day of the following
      calendar month and the Long Stop Date, with the effect that the provisions
      of this Sale and Purchase Agreement relating to Completion shall apply as
      if such date were the Completion Date;
or

            

    

    

    
      	
              6.4.2

            	
              proceed
      to Completion so far as practicable (without prejudice to any of its
      rights under this Sale and Purchase Agreement);
  or

            

    

    

    
      	
              6.4.3

            	
              terminate
      this Sale and Purchase Agreement by written notice without prejudice to
      any other rights or remedies which it may have as at the date of
      termination.

            

    

    

    
      	
              6.5

            	
              Bring-Down
      Warranties

            

    

    

    If at the
time of Completion the Seller shall be in material breach of any of the
Bring-Down Warranties the Buyer may (at its absolute discretion) by written
notice to the Seller:

    

    
      	
              6.5.1

            	
              so
      as to provide the Seller with an opportunity to remedy the breach, defer
      Completion to the earlier of the last Business Day of the following
      calendar month and the Long Stop Date, with the effect that the provisions
      of this Sale and Purchase Agreement relating to Completion shall apply as
      if such date were the Completion Date;
or

            

    

    

    
      
        
           

        

        
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                EXECUTION
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              6.5.2

            	
              terminate
      this Sale and Purchase Agreement by written notice without prejudice to
      any other rights or remedies which it may have as at the date of
      termination.

            

    

    

    
      	
              6.6

            	
              Material
      Adverse Change

            

    

    

    The Buyer
shall be entitled by written notice to the Seller at any time prior to
Completion to terminate this Sale and Purchase Agreement without liability to
the Seller or any member of the Seller Group following the occurrence of any
Material Adverse Change on or prior to Completion and the provisions of Clause
4.4 shall apply.

    

    
      	
              6.7

            	
              Post-Completion

            

    

    

    
      	
              6.7.1

            	
              Within
      ten (10) Business Days of Completion, the Seller shall procure that
      Reorganisation Plans for each jurisdiction in which there is a Delayed NSC
      shall be provided to the Buyer in writing and in a form which has been
      developed in consultation with the local JLR management and in relation to
      which the Seller (acting reasonably and in good faith) has considered for
      incorporation the comments of local JLR management in the relevant Delayed
      NSC jurisdiction (the Delivered Reorganisation
      Plans).  The Seller shall procure that: (a) any changes
      to the Delivered Reorganisation Plans are undertaken in consultation with
      local JLR management; (b) that the Seller (acting reasonably and in good
      faith) shall consider for incorporation the comments of local JLR
      management in the relevant Delayed NSC jurisdiction regarding such
      changes; and (c) none of the changes to the Delivered Reorganisation Plans
      are undertaken unless they have first been provided in writing to the
      Buyer.  Provisions of the Delivered Reorganisation Plan shall
      not be deemed to amend or modify the Transfer Conditions unless the
      parties otherwise agree.

            

    

    

    
      	
              6.7.2

            	
              Prior
      to Completion, the Seller shall request in writing that each relevant
      local counsel prepare the NSC Reorganisation Advice, addressed on a
      reliance basis to the relevant NSC Newco or Target Company, and provide
      the NSC Reorganisation Advice to such NSC Newco or Target Company no later
      than twenty (20) Business Days after the Delayed Transfer
      Date.  The Seller and the Buyer agree and accept that neither
      the Seller nor any member of the Seller Group shall have any
      responsibility for any Loss or Liability suffered by the Buyer, any Target
      Company or any NSC Newco arising out of: (i) the failure of any local
      counsel to provide the NSC Reorganisation Advice; (ii) any inaccuracy or
      incompleteness thereof or omission therefrom; or (iii) the reliance (or
      manner of implementation pursued) by the Seller on or pursuant to the NSC
      Reorganisation Advice.

            

    

    

    
      	
              6.8

            	
              Retained
      Companies Name Changes

            

    

    

    The
Seller undertakes to procure that all necessary steps are taken to change the
names of any companies or other entities in the Seller’s Group and which are not
Target Companies or NSC Newcos which contain the words “Jaguar”, “Land Rover” or
“JLR” so as to remove any references to any such words, such name changes to be
effective as soon as reasonably practicable following the Completion
Date.

    

    
      
        
           

        

        
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              7.

            	
              NSC
      REORGANISATION AND NSC STRUCTURE 

            

    

    

    
      	
              7.1

            	
              Following
      signing of this Sale and Purchase Agreement, the Seller shall in relation
      to each Embedded NSC, undertake all reasonable endeavours to procure as
      soon as reasonably practicable and subject to Clause
  16.4:

            

    

    

    
      	
              7.1.1

            	
              the
      satisfaction of all Transfer
Conditions;

            

    

    

    
      	
              7.1.2

            	
              the
      transfer of all Embedded NSC Assets
to:

            

    

    

    
      	
               
      

            	
              (i)

            	
              the
      relevant NSC Newco identified in Part 2, Section 1 or Section 3, of
      Schedule 8;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              the
      relevant Target Company identified in Part 2, Section 2, of Schedule 8; or
      in Part 3 of Schedule 10; or

            

    

    

    
      	
               
      

            	
              (iii)

            	
              the
      relevant Third Party Importer identified in Part 2, Section 3, of Schedule
      8;

            

    

    

    
      	
              7.1.3

            	
              the
      transfer of all NSC Transferring Employees to the relevant NSC Newco or to
      the relevant Target Company or to the relevant Third Party Importer (if
      applicable); and

            

    

    

    
      	
              7.1.4

            	
              the
      assumption by the relevant NSC Newco or (if applicable) the relevant
      Target Company of all Assumed Liabilities (if applicable) which relate to
      the relevant Embedded NSC, provided that the Seller shall be under no
      obligation to provide any Assurance in respect of the relevant NSC Newco
      or the relevant Target Company in relation to any period following
      Completion for the purpose of satisfying any Transfer
      Condition.

            

    

    

    
      	
              7.2

            	
              The
      Buyer shall provide the Seller with all information and assistance
      reasonably required by the Seller to enable it to fulfil its obligations
      pursuant to Clauses ‎7.1 and 8.7,
      and the Buyer shall provide any reasonable Assurance in respect of a NSC
      Newco or Target Company in relation to any period following Completion
      which is required for the purpose of satisfying any Transfer Condition
      relating to such NSC Newco or Target Company or in order to facilitate the
      assumption by such NSC Newco or Target Company of any Assumed Liabilities
      (if applicable) relating to such NSC Newco or Target
    Company.

            

    

    

    
      	
              7.3

            	
              The
      Buyer shall at all times in good faith cooperate with the Seller in
      relation to the fulfilment of the objectives set out in Clauses 7.1 and
      8.7, and the Seller shall keep the Buyer fully informed (and respond to
      any enquiries as the Buyer from time to time may reasonably make) on a
      regular basis of progress in this regard in respect of the NSC
      Reorganisation (in the period between the date of this Sale and Purchase
      Agreement and Completion and the Delayed Transfer
  Date).

            

    

    

    
      	
              7.4

            	
              Any
      Target Company, NSC Newco or Embedded NSC Assets shall at the relevant
      time as set out in this Sale and Purchase Agreement be transferred to the
      appropriate Target Company as shown on Schedule
  19.

            

    

    

    
      	
              8.

            	
              DELAYED
      NSCS

            

    

    

    
      	
              8.1

            	
              Without
      prejudice to the remaining provisions of the Clause 8 or any other
      provision of this Sale and Purchase Agreement or any other Transaction
      Document, the parties acknowledge that their intention is that the
      economic risk and reward of any Delayed NSC shall pass to the Buyer at
      Completion, so that in particular:

            

    

    

    
      	
              8.1.1

            	
              the
      Buyer takes the economic benefit of profits and suffers the economic costs
      arising to a Delayed NSC with effect from Completion as provided by this
      Clause 8; and

            

    

    

    
      
        
           

        

        
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                EXECUTION
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              8.1.2

            	
              the
      Embedded NSC Assets and Assumed Liabilities relating to the Delayed NSC
      are transferred to or assumed by or at the direction of the Buyer taking
      into account movements in value after Completion as provided by this
      Clause 8.

            

    

    

    
      	
              8.2

            	
              The
      business of each Delayed NSC shall be operated in accordance with the NSC
      Interim Management Agreement with effect from Completion until the Delayed
      Transfer Date.  The balance sheets referred to in Clause 8.5
      shall be prepared and the Interim Cash Flow reconciliation shall be
      prepared, and for such purpose references to any financial measure shall
      be interpreted, and all relevant amounts shall be determined in accordance
      with the principles applying to the preparation of the Final Completion
      Statement set out in Schedule 12, save that to the extent of any conflict
      between the principles in Schedule 12 and the provisions of this Clause 8,
      Clause 8 shall prevail.

            

    

    

    
      	
              8.3

            	
              For
      each Delayed NSC, with respect to the Interim Cash Flow Period, the Seller
      will:

            

    

    

    
      	
              8.3.1

            	
              prepare
      and provide each month to the Buyer an Interim Cash Flow reconciliation
      within twenty (20) Business Days following the close of each
      month.  The reconciliation will be prepared consistently with
      the requirements of Clause 8.10 and will include a copy of the relevant
      balance sheet and income statement used in its preparation which shall be
      drawn up in accordance with the accounting practices historically utilised
      by the relevant Embedded NSC (or the entity of which the Embedded NSC
      forms part) in its reporting to the Seller for group reporting purposes
      for consolidating its financial statements;
and

            

    

    

    
      	
              8.3.2

            	
              prepare
      a cash pooling statement showing the aggregate amount of cash generated by
      each Delayed NSC to be transferred to a NSC Newco during the Interim Cash
      Flow Period and held or otherwise utilised in any other business of the
      Seller Group at the Carve-out Date and the aggregate amount of cash
      generated in any other business of the Seller Group during the Interim
      Cash Flow period and held or otherwise utilised in the Delayed NSC at the
      Carve-out Date.

            

    

    

    
      	
              8.4

            	
              for
      each Delayed NSC, the Seller will provide the Buyer and its
      representatives (and procure that the Buyer and its representatives are
      provided) with such access and additional information in respect of such
      monthly financial information as the Buyer reasonably requires for the
      purposes of its statutory audit and other legal
    compliances.

            

    

    

    
      	
              8.5

            	
              In
      respect of each Delayed NSC the Seller
shall:

            

    

    

    
      	
              8.5.1

            	
              prepare
      (taking relevant amounts directly from the column of the Final Completion
      Statement relating to Delayed NSCs including the workings underlying the
      said column with a view to extracting the information relating to the
      relevant Delayed NSC from the Final Completion Statement) a balance sheet
      for the business of each Delayed NSC as at close of business on the
      Completion Date in the form of Part 2 of Schedule 12 to the extent that it
      relates to Delayed NSCs; and

            

    

    

    
      	
              8.5.2

            	
              prepare
      a balance sheet substantially in the form of Part 2 of Schedule 12 to the
      extent it relates to Delayed NSCs as at close of business on the last
      Business Day immediately preceding the Carve-out Date, for the avoidance
      of doubt prepared excluding any NSC Cash or NSC
  Debt.

            

    

    

    
      	
              8.6

            	
              Any
      disagreement regarding the balance sheets prepared pursuant to Clause 8.5
      shall be resolved in accordance with Clause
  8.20.

            

    

    

    
      
        
           

        

        
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              8.7

            	
              The
      Buyer and the Seller may, by mutual agreement waive any of the Transfer
      Conditions in whole or in part at any time on or before the Delayed
      Transfer Date.  Subject to Clause 8.8, upon satisfaction in full
      (or upon agreement of the Buyer and the Seller, waiver) of the Transfer
      Conditions applicable to a Delayed NSC, the Seller shall undertake all
      reasonable endeavours to:

            

    

    

    
      	
              8.7.1

            	
              notify
      the Buyer of the satisfaction of the Transfer Conditions (which have not
      been waived by agreement of the Buyer and the Seller) in respect of the
      relevant Delayed NSC and provide the Buyer with not less than five (5)
      Business Days notice of the Delayed Transfer Date of such Delayed
      NSC;

            

    

    

    
      	
              8.7.2

            	
              unless
      the relevant Delayed NSC is to be transferred to a Target Company or a
      Third Party Importer, procure as soon as reasonably practicable following
      the satisfaction of the Transfer Conditions (or waiver by agreement of the
      Buyer and the Seller) the transfer to the relevant NSC Newco of all
      Embedded NSC Assets, an amount equal to any NSC Cash and the NSC
      Transferring Employees in consideration
for:

            

    

    

    
      	
               
      

            	
              (a)

            	
              (unless
      the Buyer agrees otherwise) the issue of new shares in the capital of the
      relevant NSC Newco credited as fully paid at the value of the Embedded NSC
      Assets less the value of the relevant Assumed Liabilities in each case
      determined pursuant to Clause 8.5.1;
and

            

    

    

    
      	
               
      

            	
              (b)

            	
              (without
      prejudice to Clause 14) the assumption of the Assumed Liabilities related
      to the Delayed NSC; and

            

    

    

    
      	
               
      

            	
              (c)

            	
              an
      amount (left outstanding as a debt of the NSC Newco) equal to any NSC Debt
      relating to the Delayed NSC;

            

    

    

    and for
the avoidance of doubt and without prejudice to Clauses 8.12 to 8.16 for no
other consideration;

    

    
      	
              8.7.3

            	
              if
      the relevant Delayed NSC is to be transferred to a Target Company, procure
      as soon as reasonably practicable following the satisfaction of the
      Transfer Conditions (or waiver by agreement of the Buyer and the Seller)
      the transfer to the relevant Target Company, of the Embedded NSC Assets
      and the NSC Transferring Employees relating to the relevant Delayed NSC in
      consideration for (without prejudice to Clause 14) the assumption by the
      relevant Target Company of the related Assumed Liabilities (and for the
      avoidance of doubt and without prejudice to Clauses 8.12 to 8.16 for no
      other additional consideration);

            

    

    

    
      	
              8.7.4

            	
              if
      the relevant Delayed NSC is to be transferred to a Third Party Importer,
      procure as soon as reasonably practicable following the satisfaction of
      the Transfer Conditions (or waiver by agreement of the Buyer and the
      Seller):

            

    

    

    
      	
               
      

            	
              (a)

            	
              the
      transfer to the relevant Third Party Importer of such of the Embedded NSC
      Assets and NSC Transferring Employees (subject to Clauses 16.17 and 16.18)
      as are to be transferred to that Third Party
  Importer;

            

    

    

    
      	
               
      

            	
              (b)

            	
              (without
      prejudice to Clause 14) the assumption by the relevant Third Party
      Importer of such of the related Assumed Liabilities as are to be assumed
      by the Third Party Importer; and

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      transfer to the Buyer or as the Buyer shall direct of any remaining
      Embedded NSC Assets and NSC Transferring Employees relating to the Delayed
      NSC which are not transferred pursuant to paragraph (a) above, it being
      understood that, with respect to the transfer of any remaining NSC
      Transferring Employees, the Seller shall afford the Buyer a reasonable
      opportunity to extend an offer of employment to any such employee on terms
      and conditions of employment that are no less favourable in aggregate than
      those in effect at the date of this Sale and Purchase Agreement (including
      but without limitation any current terms and conditions relating to
      membership of pensions arrangements and the benefit structure thereunder)
      prior to the Seller terminating the employment of such employee in
      accordance with Clauses 16.17 and 16.18, and it being further understood
      that the Buyer shall not make any such offer of employment to any employee
      the employment of whom the Seller has confirmed that the Seller wishes to
      retain in accordance with Clause
16.17;

            

    

    

    
      
        
           

        

        
          45

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
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    for the
avoidance of doubt and without prejudice to Clauses 8.12 to 8.16 for no other
additional consideration.

    

    
      	
              8.7.5

            	
              procure
      as soon as reasonably practicable following the transfer of Embedded NSC
      Assets and NSC Transferring Employees and any NSC Cash to, and assumption
      of Assumed Liabilities and the incurring of any NSC Debt by, a NSC Newco
      pursuant to Clause 8.7.2, the transfer to the transferee of such shares as
      provided in Schedule 19, of the whole of the issued share capital of the
      relevant NSC Newco (including any shares issued pursuant to Clause 8.7.2)
      together with the relevant share certificates or equivalent documents in
      the relevant jurisdiction (and the shares in the NSC Newcos shall be so
      transferred free from all Encumbrances with Full Title Guarantee and
      together with all rights attaching thereto as at the Delayed Transfer Date
      including the right to dividends, distributions declared, made or paid
      thereon after Completion), for the avoidance of doubt and without
      prejudice to Clauses 8.12 to 8.16 for no further additional
      consideration;

            

    

    

    
      	
              8.7.6

            	
              as
      soon as reasonably practicable procure delivery to the Buyer of the
      certificate of incorporation, statutory books (including registers and
      minute books), common seals (if any), deeds and documents and all books of
      account and other records (written up to date) of any NSC Newco in respect
      of which the shares have been transferred pursuant to Clause 8.7.5;
      and

            

    

    

    
      	
              8.7.7

            	
              deliver
      as soon as reasonably practicable to the Buyer (to the extent requested by
      the Buyer not later than two (2) Business Days prior to the Delayed
      Transfer Date) letters of resignation of the auditors the directors and
      the company secretary of any NSC Newco in respect of which the shares have
      been transferred pursuant to Clause
8.7.5.

            

    

    

    
      	
              8.8

            	
              If
      any of the transfers provided for in Clause 8.7 shall not have taken place
      by the NSC Long Stop Date, the relevant Embedded NSC Assets shall be
      transferred to the appropriate Target Company as provided in Schedule 19
      (for the avoidance of doubt and without prejudice to Clauses 8.12 to 8.16,
      for no additional consideration) with effect from the NSC Long Stop Date,
      and the procedures provided in Part 3 of Schedule 8 shall be followed with
      respect to the relevant NSC Transferring Employees.  Upon any
      such transfer, the Transfer Conditions related to such Delayed NSC shall
      (to the extent not already satisfied or waived by the Buyer and the
      Seller) be deemed satisfied and the procedures provided in this Clause 8
      shall be followed with respect to such Delayed NSC, including without
      limitation, as they relate to the determination and payment of Interim
      Cash Flow.  Upon the transfer of such Embedded NSC Assets to the
      appropriate Target Company as provided in Schedule 19 the obligations of
      the parties with respect to such Embedded NSC Assets pursuant to Clauses 7
      and 8 shall terminate without prejudice to any accrued rights and
      obligations.

            

    

    

    
      
        
           

        

        
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              8.9

            	
              The
      Buyer and the Seller hereby agree in good faith to negotiate the
      apportionment of the Purchase Price in respect of all transfers pursuant
      to this Clause 8 to the extent such apportionment has not already been
      provided for or agreed and is required for the purposes of the related
      transfer documentation and/or for the accounts of any member of the
      Buyer’s Group, the NSC Newcos and/or the Target
  Companies.

            

    

    

    
      	
              8.10

            	
              The
      Interim Cash Flow in relation to any Delayed NSC shall be determined as
      follows:

            

    

    

    Interim
Cash Flow =A – B + C +/– D + E + F +/– G

    

    Where:

    

    A = Operating Profit or
Loss;

    

    B = (i) the Net Assets of the
relevant Delayed NSC at close of business on the last Business Day prior to the
Carve-out Date (where (i) is derived from the balance sheet prepared under
Clause 8.5.2) less; (ii) the Net Assets of the relevant Delayed NSC as at close
of business on the Completion Date (where (ii) is derived from the balance sheet
prepared under Clause 8.5.1);

    

    C = any charge to the
Operating Profit or Loss for the relevant Delayed NSC during the Interim Cash
Flow Period to the extent that any amounts in respect of such charge have been
indemnified pursuant to Clause 14;

    

    D = a positive amount equal to
any addition to, or a negative amount equal to any release made directly from,
equity reserves in respect of the Delayed NSC during the Interim Cash Flow
Period that has not impacted the Operating Profit or Loss for the relevant
Delayed NSC during the same period;

    

    E = to the extent not adjusted
under item C above, any costs charged pursuant to the Separation Agreements to
the Operating Profit or Loss of the Delayed NSC during the Interim Cash Flow
Period other than any costs paid on behalf of the relevant Delayed NSC by any
member of the Seller Group and not otherwise compensated for by a movement in
another element of the Interim Cash Flow;

    

    F = a positive amount (to the
extent borne by the Delayed NSC or related NSC Newco) equal to (a) the costs of
professional advice taken by any member of the Seller Group unrelated to the
creation and set up of a NSC Newco, (b) internal costs of any member of the
Seller Group (including any Tax Liability of a member of the Seller Group), and
(c) costs (such as stamp duty and transfer fees) associated with the transfer of
the Delayed NSC to the related NSC Newco, and (d) 50% of the costs and expenses
incurred in physically implementing the Separation Actions identified in
Schedule 10; and

    

    G = a positive amount equal to
any NSC Debt incurred by a NSC Newco or a negative amount equal to any NSC Cash
transferred to a NSC Newco.

    

    
      	
              8.11

            	
              For
      the purpose of Clause 8.10:

            

    

    

    Operating Profit or Loss means
the profit or loss after interest and before tax of the Delayed NSC for the
Interim Cash Flow Period measured by the production of an income statement for
the said period drawn up in accordance with the accounting practices
historically utilised by the relevant Embedded NSC (or the entity of which that
Embedded NSC forms part) in its reporting to the Seller for group reporting
purposes which income statement shall be subject to finalisation following the
process referred to in Clause 8.20.

    

    
      
        
           

        

        
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              8.12

            	
              The
      Seller shall prepare a statement showing the calculation of the Interim
      Cash Flow (the Interim
      Cash Flow statement), and shall submit the statement to the Buyer,
      within twenty (20) Business Days of the Delayed Transfer
      Date.  The Interim Cash Flow statement shall also show (a) any
      Carve-out Cash or Carve-out Debt in relation to the relevant Delayed NSC
      and in the case of a NSC Newco the balance, if any, of any indebtedness
      owed by the relevant NSC Newco to any member of the Seller Group as at
      close of business on the Delayed Transfer Date; and (b) the NSC Set Up
      Costs for the relevant Delayed NSC.

            

    

    

    
      	
              8.13

            	
              If
      the Interim Cash Flow is a positive number the Seller shall procure that
      the member of the Seller Group previously holding the Delayed NSC shall
      pay within five (5) Business Days of the issue to the Buyer of the Interim
      Cash Flow statement the amount of the Interim Cash Flow by way of
      telegraphic transfer of funds for same day value to the account of the
      Delayed NSC or such other account notified by the Buyer by close of
      business two (2) Business Days after the issue to the Buyer of the Interim
      Cash Flow statement. Any such payment shall be subject to finalisation
      following the process referred to in Clause 8.20, and shall not be subject
      to the provisions of Clause 23.9.

            

    

    

    
      	
              8.14

            	
              If
      the amount of the Interim Cash Flow is a negative number the Buyer shall
      procure that the Delayed NSC shall pay within five (5) Business Days of
      the issue to the Buyer of the Interim Cash Flow statement the amount of
      the Interim Cash Flow by way of telegraphic transfer of funds for same day
      value to the account of the Seller Group entity previously holding the
      Delayed NSC notified by the Seller to the Buyer by close of business two
      (2) Business Days after the issue to the Buyer of the Interim Cash Flow
      statement. Any such payment shall be subject to finalisation following the
      process referred to in Clause 8.20, and shall not be subject to the
      provisions of Clause 23.9.

            

    

    

    
      	
              8.15

            	
              If
      there is any indebtedness owed by a NSC Newco as at close of business on
      the Delayed Transfer Date to a member of the Seller Group, then the amount
      of such indebtedness as set out in the Interim Cash Flow statement will
      (subject to such amount being finalised following the process referred to
      in Clause 8.20) be paid by the Buyer (for and on behalf of the NSC Newco)
      within five (5) Business Days of the issue to the Buyer of the Interim
      Cash Flow statement by way of telegraphic transfer of funds for same day
      value to the account notified by the Seller to the Buyer by close of
      business two (2) Business Days after the issue to the Buyer of the Interim
      Cash Flow statement in full and final settlement of the indebtedness owed
      by the relevant NSC Newco to the relevant member of the Seller
      Group.

            

    

    

    
      	
              8.16

            	
              Within
      five (5) Business Days of the issue to the Buyer of the Interim Cash Flow
      statement the Buyer shall pay or procure the payment to the Seller of the
      NSC Set Up Costs for the relevant Delayed NSC, and pay or procure the
      payment of an amount equal to any Carve-out Cash in each case by way of
      increase in the Purchase Price, and shall procure that any amount owed in
      respect of NSC Debt is promptly settled, and the Seller shall pay to the
      Buyer an amount equal to any Carve-out Debt by way of reduction in the
      Purchase Price in every case by way of telegraphic transfer of funds for
      same day value by close of business two (2) Business Days after the issue
      to the Buyer of the Interim Cash Flow Statement to the account notified to
      the payer.  Any such payments shall be subject to finalisation
      following the procedures referred to in Clause
  8.20.

            

    

    

    
      	
              8.17

            	
              In
      relation to any Delayed NSC transferred to a relevant NSC Newco which is
      itself transferred to the Buyer, or where a Delayed NSC is transferred to
      the Buyer, a Target Company or to a Third Party Importer the parties agree
      that the terms of this Clause 8 are based on the following assumptions
      (which for the avoidance of doubt do not refer to or include
      VAT):

            

    

    

    
      
        
           

        

        
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              8.17.1

            	
              any
      payment of Interim Cash Flow to a Delayed NSC or otherwise at the
      direction of the Buyer pursuant to this Clause 8 or to or otherwise at the
      direction of the Seller shall be paid by the payer without any withholding
      or deduction on account of any Tax;

            

    

    

    
      	
              8.17.2

            	
              any
      payment of Interim Cash Flow to or otherwise at the direction of the
      Seller shall not be subject to Tax in the hands of the
      recipient;

            

    

    

    
      	
              8.17.3

            	
              the
      Operating Profit or Loss shall not be included in the financial statements
      or Tax returns of any Seller Group member and shall instead be included in
      the financial statements and Tax returns of the NSC Newco, Target Company
      or other member of the Buyer’s Group, as
  appropriate;

            

    

    

    
      	
              8.17.4

            	
              the
      Operating Profit or Loss shall be taxed in (if a profit) or give rise to
      reliefs in (if a loss) the NSC Newco, Target Company or the Buyer (as the
      case may be) as if it were a profit or a loss generated by the NSC Newco,
      Target Company or other member of the Buyer’s Group from its own
      operations;

            

    

    

    
      	
              8.17.5

            	
              the
      Operating Profit or Loss shall not be taxed in (if a profit) or give rise
      to reliefs in (if a loss) a member of the Seller
  Group.

            

    

    

    
      	
              8.18

            	
              To
      the extent any deduction or withholding on account of any Tax referred to
      in Clause 8.17.1 or an amount of tax referred to under Clause 8.17.2 would
      give rise to any actual economic cost to the payee after taking into
      account any credit, refund or remission from any Tax arising in respect of
      the Interim Cash Flow, then the parties shall use their best endeavours
      and cooperate to explore ways to restructure or otherwise recharacterise
      the payment of the Interim Cash Flow to avoid such deduction or
      withholding on account of Tax or amount of Tax, or to secure that there is
      no economic cost in respect of such deduction, withholding or amount
      suffered by the payee. For the avoidance of doubt if the parties do not
      reach an alternative solution, the withholding or deduction on account of
      Tax shall be dealt with under Clause
8.19.

            

    

    

    
      	
              8.19

            	
              In
      the event that the assumptions referred to in paragraph 8.17 are
      incorrect:

            

    

    

    
      	
               
      

            	
              (a)

            	
              if
      the Buyer’s Group has a Net After Tax Benefit and the Seller Group has a
      Net After Tax Deficit, the Buyer shall make a payment or procure that a
      payment is made to the Seller or such party as the Seller directs equal to
      the lower of the Buyer’s Group’s Net After Tax Benefit and the Seller
      Group’s Net After Tax Deficit, subject to a minimum reimbursement equal to
      50% of the Seller Group’s Net After Tax
Deficit;

            

    

    

    
      	
               
      

            	
              (b)

            	
              if
      the Seller Group has a Net After Tax Benefit and the Buyer’s Group has a
      Net After Tax Deficit, the Seller shall make a payment or procure that a
      payment is made to the Buyer or such party as the Buyer directs equal to
      the lower of the Seller Group’s Net After Tax Benefit and the Buyer’s
      Group’s Net After Tax Deficit, subject to a minimum reimbursement equal to
      50% of the Buyer’s Group’s Net After Tax
  Deficit;

            

    

    

    
      	
               
      

            	
              (c)

            	
              where
      neither party has a Net After Tax Benefit, the aggregate Net After Tax
      Deficit for the Buyer’s Group and the Seller Group shall be borne
      equally,

            

    

    

    and for
the purposes of this Clause 8.19:

    

    
      
        
           

        

        
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              (d)

            	
              the
      Buyer’s Group’s “Net After Tax Deficit” is the amount (if any) by which,
      after aggregating the position of each relevant Buyer’s Group member and
      Target Company and the relevant NSC Newco and after taking into account
      all relevant Tax liabilities arising to or reasonably expected to arise to
      those entities, the Buyer’s Group is worse off, as a result of the
      assumptions referred to in Clause 8.17 being incorrect compared to the
      position which the Buyer’ Group would have been in had those assumptions
      been correct; and

            

    

    

    
      	
               
      

            	
              (e)

            	
              the
      Seller Group’s “Net After Tax Deficit” is the amount (if any) by which,
      after aggregating the position of each relevant Seller Group member and
      after taking into account all relevant Tax liabilities arising to or
      reasonably expected to arise to those entities, the Seller Group is worse
      off, as a result of the assumptions referred to in Clause 8.17 being
      incorrect compared to the position which the Seller Group would have been
      in had those assumptions been correct;
and

            

    

    

    
      	
               
      

            	
              (f)

            	
              the
      Buyer’s Group’s “Net After Tax Benefit” is the amount (if any) by which,
      after aggregating the position of each relevant Buyer’s Group member and
      Target Company and the relevant NSC Newco and after taking into account
      all relevant Tax liabilities arising to or reasonably expected to arise to
      those entities, the Buyer’s Group is better off, as a result of any of the
      assumptions referred to in Clause 8.17 being incorrect compared to the
      position which the Buyer’s Group would have been in, had those assumptions
      been correct; and

            

    

    

    
      	
               
      

            	
              (g)

            	
              the
      Seller Group’s “Net After Tax Benefit” is the amount (if any) by which,
      after aggregating the position of each relevant Seller Group member and
      after taking into account all relevant Tax liabilities arising to or
      reasonably expected to arise to those entities, the Seller Group is better
      off, as a result of any of the assumptions referred to in Clause 8.17
      being incorrect compared to the position which the Seller Group would have
      been in, had those assumptions been
correct.

            

    

    

    
      	
              8.20

            	
              Resolution
      of Disputes

            

    

    

    
      	
              8.20.1

            	
              If
      the Buyer disagrees with the draft Interim Cash Flow statement or relevant
      balance sheet and income statement used in its preparation, the Buyer
      shall within twenty (20) Business Days following receipt of the draft
      Interim Cash Flow statement from the Seller give written notice (the NSC Dispute Notice)
      setting out the basis and the reason(s)
  therefor.

            

    

    

    
      	
              8.20.2

            	
              If
      the Buyer shall deliver a NSC Dispute Notice, then the Seller and the
      Buyer shall endeavour in good faith to agree the matters in dispute set
      out in the NSC Dispute Notice during a period of sixty (60) days after
      receipt of such notice.  Each party will make available to the
      other all information in such party’s possession that is reasonably
      required in order to reach resolution on all disputed matters set out in
      the NSC Dispute Notice.

            

    

    

    
      	
              8.20.3

            	
              If
      resolution of all disagreements specified in a NSC Dispute Notice is not
      reached between the Buyer and the Seller within such sixty (60) day
      period, the matters set out in the NSC Dispute Notice remaining in
      dispute, may be referred by either the Seller or the Buyer to a partner of
      at least ten (10) years’ experience based in the London office of a firm
      of internationally recognised independent chartered accountants jointly
      agreed upon between the Seller and the Buyer or (failing such agreement)
      appointed, at the request of either of the Seller or the Buyer at any
      time, by the President from time to time of the Institute of Chartered
      Accountants in England and Wales which firm (the Delayed NSC Independent Accountants)
      shall then determine the matters in dispute.  The fees and
      expenses of the Delayed NSC Independent Accountants in connection with any
      such determination, which shall be final and binding in the absence of
      manifest error, shall be borne between the Seller and the Buyer in such
      proportions as the Delayed NSC Independent Accountants shall in their
      discretion determine.

            

    

    

    
      
        
           

        

        
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              8.20.4

            	
              Upon
      resolution of all disagreements with respect to a NSC Dispute Notice any
      payments required to implement such resolution shall be made within five
      (5) Business Days.  Any such payments shall not be subject to
      the provisions of Clause 23.9.

            

    

    

    
      	
              9.

            	
              PAYMENT
      OF IP CONSIDERATION, HALEWOOD PLANT CONSIDERATION AND REPAYMENT OF
      INTRA-GROUP BALANCES

            

    

    

    
      	
              9.1

            	
              Immediately
      following Completion and on the Completion
Date:

            

    

    

    
      	
              9.1.1

            	
              the
      Buyer shall:

            

    

    

    
      	
               
      

            	
              (a)

            	
              deliver
      to the Seller a counterpart of the Intellectual Property Agreements duly
      executed on behalf of the relevant Target Companies together with a duly
      certified copy of minutes of a duly held meeting of the directors of each
      such company authorising the execution of each such document;
      and

            

    

    

    
      	
               
      

            	
              (b)

            	
              by
      transfer of funds for same day value to such accounts as shall have been
      notified to the Buyer by the Seller at least three (3) Business Days prior
      to Completion, pay on its own behalf or as appropriate for and on behalf
      of the relevant Target Company the IP Consideration to Ford Global
      Technologies, LLC and pay, for and on behalf of the Buyer, member of the
      Buyer’s Group or relevant Target Company as the Buyer directs, the
      Halewood Plant Consideration to the Seller or its designee;
      and

            

    

    

    
      	
              9.1.2

            	
              against
      receipt of the Halewood Plant Consideration and the IP Consideration, the
      Seller shall:

            

    

    

    
      	
               
      

            	
              (a)

            	
              procure
      the delivery to the Buyer of a counterpart of the Intellectual Property
      Agreements, duly executed on behalf of the relevant members of the Seller
      Group party thereto; and

            

    

    

    
      	
               
      

            	
              (b)

            	
              concurrently
      with the transfer of the Halewood Properties to Jaguar Cars Limited in
      accordance with Schedule 17, let or procure that Jaguar Cars Limited is
      let into possession of the Halewood Plant and deliver or procure the
      delivery to Jaguar Cars Limited of such assets forming part of the
      Halewood Plant as are transferable by delivery and transfer or procure the
      transfer to Jaguar Cars Limited of the remainder of the Halewood Plant;
      and

            

    

    

    
      	
              9.1.3

            	
              the
      Seller shall transfer or procure the transfer to Jaguar Cars Limited of
      the Halewood Assets.

            

    

    

    
      	
              9.2

            	
              Immediately
      following Completion and on the Completion
Date:

            

    

    

    
      	
              9.2.1

            	
              the
      Buyer shall procure that the Estimated Intra-Group Payables are paid to
      the Seller (for itself or, as applicable, as agent for and on behalf of
      the relevant member of the Seller Group) by the relevant Target Company or
      NSC Newco (to the extent it exists and has acquired Embedded NSC Assets at
      Completion and has been acquired by the
Buyer);

            

    

    

    
      
        
           

        

        
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              9.2.2

            	
              the
      Seller shall procure that any Estimated Intra-Group Receivables are paid
      to the relevant Target Company or NSC Newco (to the extent it exists and
      has acquired Embedded NSC Assets at Completion and has been acquired by
      the Buyer); and

            

    

    

    
      	
              9.2.3

            	
              each
      of the Seller and the Buyer agrees on behalf of itself and each of their
      respective subsidiaries that in each case where an Estimated Intra-Group
      Receivable is payable to an entity (A) by an entity (B) and there is also
      an Estimated Intra-Group Payable payable by B to A, such amounts shall be
      set off and only the net amount shall be payable.  The Buyer and
      the Seller agree that, where net amounts are paid and/or received, the
      book entries made in the accounts of the relevant debtor and creditor
      shall reflect the gross payments being effected.  The
      information to be provided to the Buyer as contemplated by the definitions
      of Estimated Intra-Group Receivable and Intra-Group Payable will set out,
      in respect of each such obligation, the debtor, the creditor and the
      amount estimated as payable, together with a schedule of the net amounts
      to be paid pursuant to this Clause
9.2.

            

    

    

    
      	
              10.

            	
              POST-COMPLETION
      ADJUSTMENTS

            

    

    

    
      	
              10.1

            	
              Following
      Completion, the Buyer and the Seller shall give effect to Schedule
      12.

            

    

    

    
      	
              10.2

            	
              Five
      (5) Business Days following the issue of the Final Completion Statement in
      accordance with Schedule 12:

            

    

    

    
      	
              10.2.1

            	
              as
      an adjustment to the payments made pursuant to Clauses 9.2.1 and 9.2.2,
      the Buyer shall procure that the relevant Target Companies, NSC Newcos
      (existing at Completion and only after they have been acquired by the
      Buyer) or members of the Buyer’s Group pay or repay (as the case may be)
      to the relevant members of the Seller Group and/or, as appropriate, the
      Seller shall procure that the relevant members of the Seller Group pay or
      repay (as the case may be) to the relevant Target Companies, NSC Newcos
      (existing at Completion and acquired by the Buyer) or members of the
      Buyer’s Group, the difference between the amounts relating to such
      companies included in the Intra-Group Balances and in the Estimated
      Intra-Group Balances;

            

    

    

    
      	
              10.2.2

            	
              the
      Seller shall repay to the Buyer an amount equal to the amount by which the
      Estimated Intra-Group Balances exceeds the Intra-Group Balances or the
      Buyer shall pay to the Seller an amount equal to the amount by which the
      Intra-Group Balances exceeds the Estimated Intra-Group
      Balances;

            

    

    

    
      	
              10.2.3

            	
              the
      Seller shall repay to the Buyer an amount equal to the amount by which the
      Net External Indebtedness exceeds the Estimated Net External Indebtedness
      or the Buyer shall pay to the Seller an amount equal to the amount by
      which the Estimated Net External Indebtedness exceeds the Net External
      Indebtedness; and

            

    

    

    
      	
              10.2.4

            	
              the
      Seller shall repay to the Buyer an amount equal to the amount by which the
      Specified Working Capital Amount exceeds the Working Capital Amount or the
      Buyer shall, pay to the Seller an additional amount equal to the amount by
      which the Working Capital Amount exceeds the Specified Working Capital
      Amount (and, for the avoidance of doubt, for these purposes a smaller
      negative amount shall be taken to exceed a larger negative
      amount).

            

    

    

    
      
        
           

        

        
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              11.

            	
              WARRANTIES
      AND INDEMNITIES

            

    

    

    
      	
              11.1

            	
              Warranties

            

    

    

    
      	
              11.1.1

            	
              The
      Seller warrants to the Buyer that each Warranty is true and accurate as
      set forth therein and not misleading on the date of this Sale and Purchase
      Agreement.

            

    

    

    
      	
              11.1.2

            	
              The
      Seller warrants to the Buyer that as at Completion the Bring-Down
      Warranties shall be true and accurate as set forth therein and shall not
      be misleading by reference to the facts and circumstances existing as at
      Completion and for such purpose any reference in such warranties to the
      date of this Sale and Purchase Agreement shall be deemed to be a reference
      to the Completion Date.

            

    

    

    
      	
              11.2

            	
              Reliance
      and Remedies

            

    

    

    
      	
              11.2.1

            	
              The
      Buyer acknowledges that it has not relied on or been induced to enter into
      this Sale and Purchase Agreement by any representation or warranty other
      than the Warranties.

            

    

    

    
      	
              11.2.2

            	
              The
      Seller is not liable to the Buyer (in equity, contract or tort under the
      Misrepresentation Act 1967 or in any other way) for a representation which
      is not set out in this Sale and Purchase
  Agreement.

            

    

    

    
      	
              11.2.3

            	
              The
      Buyer’s sole remedy for any breach of the Warranties other than the
      Bring-Down Warranties or any other breach of this Sale and Purchase
      Agreement shall be an action for damages and the Buyer shall not be
      entitled to rescind this Sale and Purchase Agreement in any circumstances
      other than as provided in Clause 6.4, Clause
      ‎6.5 or
      Clause ‎6.6.

            

    

    

    
      	
              11.3

            	
              Seller’s
      Knowledge, Information and Belief and
Disclosure

            

    

    

    
      	
              11.3.1

            	
              A
      reference herein to the
      knowledge, information and belief of the Seller or so far as the Seller is
      aware or any similar expression, in relation to each Warranty means
      the actual knowledge of the person identified in Schedule 14 as being
      responsible for the area of expertise to which such Warranty relates (and
      no other person).

            

    

    

    
      	
              11.3.2

            	
              The
      Warranties are qualified by reference to those matters fairly disclosed in
      or under the Disclosure Letter (and any documents annexed to it), this
      Sale and Purchase Agreement, any of the Transaction Documents, and the
      contents of the Data Room and the Buyer shall not be entitled to claim
      that any such matter causes any of the Warranties to be untrue, inaccurate
      or misleading.

            

    

    

    
      	
              11.3.3

            	
              For
      convenience only certain disclosures in the Disclosure Letter refer to
      particular Warranties set out in Schedule 4 or to particular documents in
      the Data Room but any matter disclosed in the Disclosure Letter is
      disclosed for the purpose of all the Warranties which will be qualified
      accordingly.

            

    

    

    
      	
              11.4

            	
              Separate
      and Independent Warranty

            

    

    

    
      	
              11.4.1

            	
              Each
      of the Warranties shall be construed as a separate and independent
      Warranty and (except where this Sale and Purchase Agreement provides
      otherwise) shall not be limited or restricted in its scope by reference
      to, or inference from, any other term of another Warranty or any term of
      this Sale and Purchase Agreement except that the only Warranties given in
      respect of:

            

    

    

    
      
        
           

        

        
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              (a)

            	
              competition,
      anti-restrictive trade practice or anti-trust legislation matters are
      those contained in Paragraph 4 of Schedule
4;

            

    

    

    
      	
               
      

            	
              (b)

            	
              Intellectual
      Property Rights are those Warranties contained in Paragraph 10 of Schedule
      4 and the Intellectual Property
Agreements;

            

    

    

    
      	
               
      

            	
              (c)

            	
              IT
      Systems and Services are those Warranties contained in Paragraph 11 of
      Schedule 4 and the Information Technology
  Agreement;

            

    

    

    
      	
               
      

            	
              (d)

            	
              Pensions
      and related benefits matters are those Warranties contained in Paragraph
      16 of Schedule 4;

            

    

    

    
      	
               
      

            	
              (e)

            	
              Environmental
      Matters are those Warranties contained in Paragraph 18 of Schedule 4
      together with the Warranty in Paragraph 15.1.2 of Schedule 4 in so far as
      it relates to health and safety matters. For the avoidance of doubt,
      Environmental Matters for the purposes of this Clause 11.4.1(e) does not
      include Warranties in respect of product compliance including that in
      Paragraph 21 of Schedule 4 nor the Warranties in Paragraphs 17.3 and 17.5
      of that Schedule; and

            

    

    

    
      	
               
      

            	
              (f)

            	
              Tax
      are those Warranties contained in Paragraph 19 of Schedule
    4.

            

    

    

    
      	
              11.5

            	
              Limitations

            

    

    

    
      	
              11.5.1

            	
              Notwithstanding
      the provisions of this Clause 11, the provisions of Schedule 5 shall
      operate to limit the liability of the Seller and the members of the Seller
      Group in respect of any Claim.

            

    

    

    
      	
              11.5.2

            	
              The
      Seller undertakes not to make any claim against any Target Company, NSC
      Newco or any director, officer or employee of any Target Company, NSC
      Newco in respect of any misrepresentation, inaccuracy or omission in or
      from information or advice provided by such Target Company, NSC Newco,
      director, officer or employee for the purpose of assisting, or in
      connection with, the Seller making a representation, giving a Warranty or
      preparing the Disclosure Letter.

            

    

    

    
      	
              11.6

            	
              Exceptions
      to Limitations

            

    

    

    Nothing
in this Sale and Purchase Agreement, including the Schedules hereto or the Tax
Deed, shall exclude or limit the liability of any party in relation to fraud,
wilful misconduct or deliberate concealment or the remedies available to any
other party in relation thereto.

    

    
      	
              11.7

            	
              Buyer’s
      Liability to Seller in Respect of Delayed
NSCs

            

    

    

    The Buyer
shall not be liable to the Seller for a breach of this Sale and Purchase
Agreement in respect of any obligation on the Buyer in relation to a Delayed NSC
to the extent such breach arises solely due to the fact that:

    

    
      	
               
      

            	
              (a)

            	
              the
      Buyer has not been given control over the operational management of the
      relevant Delayed NSC as contemplated by the NSC Interim Management
      Agreement;

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      Buyer has given a written instruction to the Seller (and/or its Related
      Persons other than the JLR Group (each as defined in the NSC Interim
      Management Agreement)) pursuant to the NSC Interim Management Agreement
      where, in relation to such obligation on the Buyer under this Sale and
      Purchase Agreement, the Seller (and/or its Related Persons other than the
      JLR Group (each as defined in the NSC Interim Management Agreement)) has
      failed to undertake an action, with such failure to act (including a
      failure to act that is the consequence of a determination by the Board of
      Directors of the relevant Delayed NSC (or similar governance body that
      exercises control over the management of the Delayed NSC) that the
      performance of the action instructed in writing by the Buyer would
      constitute a breach of the Board’s fiduciary duties under Law)
      constituting a violation of the NSC Interim Management Agreement;
      or

            

    

    

    
      
        
           

        

        
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              (c)

            	
              the
      Seller (and/or its Related Persons (other than the JLR Group (each as
      defined in the NSC Interim Management Agreement)) has directed the
      operational management of the relevant Delayed NSC in such a way as
      prevents the Buyer complying with its obligations in relation to such
      matter pursuant to this Sale and Purchase
  Agreement.

            

    

    

    
      	
              12.

            	
              BUYER
      AND GUARANTOR WARRANTIES AND
INDEMNITY

            

    

    

    
      	
              12.1

            	
              Buyer
      and Guarantor Warranties

            

    

    

    
      	
              12.1.1

            	
              The
      Buyer and the Guarantor jointly and severally warrant to the Seller that
      each of the following warranties is true and accurate in all respects on
      the date of this Sale and Purchase
Agreement:

            

    

    

    
      	
               
      

            	
              (a)

            	
              each
      of the Buyer and the Guarantor is duly organised, validly existing and in
      good standing under the laws of its jurisdiction of
      incorporation;

            

    

    

    
      	
               
      

            	
              (b)

            	
              each
      of the Buyer and the Guarantor has full corporate power and authority to
      enter into and perform its obligations under this Sale and Purchase
      Agreement and any other document required to be executed by it pursuant
      to, or in connection with, this Sale and Purchase Agreement, which when
      executed by it shall constitute valid, legal and binding obligations of
      the Buyer and the Guarantor (as the case may be) in accordance with their
      respective terms and all actions have been taken by it which are necessary
      for it to execute and perform its obligations under this Sale and Purchase
      Agreement;

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      execution of and performance by each of the Buyer and the Guarantor of its
      obligations under this Sale and Purchase Agreement have been duly
      authorised by its board of directors and by all other necessary corporate
      action;

            

    

    

    
      	
               
      

            	
              (d)

            	
              the
      obligations of the Buyer and the Guarantor under this Sale and Purchase
      Agreement and each document to be executed by each of them at, or before
      Completion are, or when the relevant document is executed, will be valid
      and binding in accordance with its
terms;

            

    

    

    
      	
               
      

            	
              (e)

            	
              except
      as provided herein, neither entry into this Sale and Purchase Agreement
      nor entry into, and implementation of, the transactions referred to in
      this Sale and Purchase Agreement shall require the Buyer or the Guarantor
      to obtain any consent or approval, or to give any notice or to make any
      registration with any governmental, regulatory or other authority, which
      has not been obtained or made as at the date of this Sale and Purchase
      Agreement;

            

    

    

    
      	
               
      

            	
              (f)

            	
              no
      order has been made and no resolution has been passed for the winding up
      of the Buyer or the Guarantor or for a provisional liquidator, manager
      administrator or administrative receiver (or such equivalent in its
      jurisdiction of incorporation) to be appointed in respect of the Buyer or
      the Guarantor, no petition has been presented and no meeting has been
      convened for the purposes of the winding up of the Buyer or the Guarantor
      and no other process whereby the business of the Buyer or the Guarantor is
      terminated and its assets are distributed amongst its creditors and/or
      shareholders or any other proceedings under any applicable insolvency,
      reorganisation or similar laws in any relevant jurisdiction have taken
      place, and no events or circumstances analogous to any of the above
      referred to in this Paragraph have occurred in or outside
      England;

            

    

    

    
      
        
           

        

        
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              (g)

            	
              neither
      the Buyer nor the Guarantor is:

            

    

    

    
      	
               
      

            	
              (i)

            	
              subject
      to any order, judgment, decree, investigation or proceedings by any
      governmental agency or authority;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              a
      party to any litigation, arbitration or administrative proceedings which
      are in progress or threatened or pending by or against or concerning it or
      any of its assets; or

            

    

    

    
      	
               
      

            	
              (iii)

            	
              the
      subject of any governmental, regulatory or official investigation or
      enquiry which is outstanding or
threatened,

            

    

    

    
      	
               
      

            	
              which
      in each case are likely to result in any of the Conditions not being
      fulfilled or in the ability of the Buyer or the Guarantor to execute,
      deliver and perform its obligations under this Sale and Purchase
      Agreement;

            

    

    

    
      	
               
      

            	
              (h)

            	
              the
      Buyer has (and at Completion will have) all necessary cash resources in
      immediately available funds or committed credit facilities to pay the
      Initial Purchase Price and the Subscription Price and to satisfy its other
      payment obligations under this Sale and Purchase Agreement and, in the
      case of such credit facilities, the Buyer shall be able to satisfy all
      conditions to drawdown to such loan facilities at or prior to Completion;
      and

            

    

    

    
      	
               
      

            	
              (i)

            	
              as
      at the date of this Sale and Purchase Agreement, the Buyer is not actually
      aware of any  matter that constitutes or is likely to constitute
      a Claim.

            

    

    

    
      	
              12.2

            	
              Separate
      and Independent Warranty

            

    

    

    Each of
the warranties set out in Clause 12.1 shall be construed as a separate and
independent warranty and (except where this Sale and Purchase Agreement provides
otherwise), shall not be limited or restricted in its scope by reference to, or
inference from, any other term of another such warranty or any term of this Sale
and Purchase Agreement.

    

    
      	
              12.3

            	
              Buyer’s
      Knowledge, Information and Belief

            

    

    

    A
reference herein to the awareness of the Buyer, the best knowledge, information and belief of the
Buyer or so far as the
Buyer is aware or any similar expression, in relation to each warranty
set out in Clause 12.1 means the actual knowledge of the person identified in
Part 2 of Schedule 14 as being responsible for the area of expertise to which
such warranty relates (and no other person).

    

    
      	
              13.

            	
              CONTRACTS
      AND THIRD PARTY CONSENTS

            

    

    

    
      	
              13.1

            	
              JLR
      Contracts and Split Contracts

            

    

    

    
      	
              13.1.1

            	
              With
      effect from Completion, the Buyer:

            

    

    

    
      	
               
      

            	
              (a)

            	
              shall,
      until such JLR Contracts are novated, assigned or transferred in
      accordance with this Clause 13, carry out, perform and discharge all
      Liabilities created by or arising under any JLR Contracts, or shall
      procure that all such Liabilities are carried out, performed and
      discharged; and

            

    

    

    
      
        
           

        

        
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              (b)

            	
              undertakes
      to indemnify the Seller and each member of the Seller Group against all
      Losses and Liabilities incurred by any of them as a result of any failure
      by the Buyer to perform its obligations under Clause
      13.1.1(a).

            

    

    

    
      	
              13.1.2

            	
              Insofar
      as the benefit or burden of any of the JLR Contracts cannot effectively be
      assigned or transferred to the Buyer, a Target Company or a NSC Newco
      except by novation or consent from a third
  party:

            

    

    

    
      	
               
      

            	
              (a)

            	
              each
      of the Buyer and the Seller shall use all reasonable endeavours to procure
      such novation or consent with effect from Completion and for such
      purpose:

            

    

    

    
      	
               
      

            	
              (i)

            	
              the
      Buyer shall provide any information, guarantees or other assurances
      reasonably requested by the relevant third
  party;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              the
      Seller shall not be obliged to incur any financial commitment;
      and

            

    

    

    
      	
               
      

            	
              (iii)

            	
              neither
      party shall be obliged to become involved in or threaten any form of legal
      action.

            

    

    

    
      	
               
      

            	
              (b)

            	
              until
      the benefit and burden of the relevant JLR Contract is novated or
      assigned:

            

    

    

    
      	
               
      

            	
              (i)

            	
              the
      Seller shall, to the extent not prohibited under the relevant contract,
      procure that the relevant member of the Seller Group shall hold it on
      trust for the Buyer from Completion (and accordingly on receipt of the
      same account for and pay or deliver to the Buyer or as it may direct any
      moneys or goods received
thereunder);

            

    

    

    
      	
               
      

            	
              (ii)

            	
              the
      Buyer shall, as sub-contractor (to the extent permitted, in the reasonable
      opinion of the Seller, under such contract), failing which, as agent, of
      the relevant member of the Seller Group, perform all of the obligations
      under the relevant contract following Completion provided that the Buyer
      is given reasonable notice of such obligations by the Seller;
      and

            

    

    

    
      	
               
      

            	
              (iii)

            	
              the
      Seller shall procure that the relevant member of the Seller Group shall on
      request and with effect from Completion (so far as it lawfully may, in the
      reasonable opinion of the Seller and at the Buyer’s sole expense) give all
      reasonable assistance to enable the Buyer to enforce its rights under the
      relevant contract provided that the Buyer shall indemnify each member of
      the Seller Group against all Losses and Liabilities thereby incurred and
      no member of the Seller Group shall be obliged to make any payment unless
      it has first been paid the amount concerned by the
  Buyer.

            

    

    

    
      	
              13.1.3

            	
              In
      relation to any Split Contract entered into by a member of the Seller
      Group:

            

    

    

    
      	
               
      

            	
              (a)

            	
              prior
      to splitting any such Split Contract pursuant to Clause 13.1.5 and for so
      long as any member of the Seller Group retains any benefit pursuant to the
      terms of such Split Contract, the Seller shall, with effect from
      Completion, procure that the relevant member(s) of the Seller Group
      shall:

            

    

    

    
      	
               
      

            	
              (i)

            	
              (to
      the extent not prohibited under such contract) hold any payments, goods or
      other services received under the relevant Split Contract (to the extent
      related to Jaguar or Land Rover) as trustee for the Buyer and as soon as
      reasonably practicable following receipt forward such payments, goods and
      other services to the Buyer (or as it may
  direct);

            

    

    

    
      
        
           

        

        
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              (ii)

            	
              exercise
      all rights, powers and benefits under the relevant Split Contract (to the
      extent relating to Jaguar or Land Rover) in accordance with the Buyer’s
      reasonable requirements but without incurring any financial commitment for
      its own account or becoming involved in or threatening any form of legal
      action; and

            

    

    

    
      	
               
      

            	
              (iii)

            	
              insofar
      as the Split Contract relates to any business carried on by the Seller
      Group, use all reasonable endeavours to carry out or perform its
      obligations under the Split Contract;
and

            

    

    

    
      	
               
      

            	
              (b)

            	
              provided
      it is given reasonable notice of the same by the Seller, the Buyer shall
      with effect from Completion perform, or procure the performance, of all
      such Split Contracts (to the extent related to Jaguar or Land Rover) in
      accordance with their terms and conditions as sub-contractor of the
      relevant member of the Seller Group provided that such sub-contracting is
      (in the reasonable opinion of the Seller) permitted under the terms of the
      relevant Split Contract, and where sub-contracting is not permissible,
      undertakes to perform, or procure performance, as agent of the relevant
      member of the Seller Group and the Buyer shall indemnify the Seller and
      each member of the Seller Group against all and any Losses or Liabilities
      resulting from any failure on the part of the Buyer to perform or procure
      performance of those obligations.

            

    

    

    
      	
              13.1.4

            	
              In
      relation to any Split Contract entered into by a Target
      Company:

            

    

    

    
      	
               
      

            	
              (a)

            	
              prior
      to splitting any such Split Contract pursuant to Clause 13.1.5 and for so
      long as any Target Company retains any benefit pursuant to the terms of
      such Split Contract, the Buyer shall, with effect from Completion, procure
      that the relevant Target Company
shall:

            

    

    

    
      	
               
      

            	
              (i)

            	
              hold
      any payments, goods or other services received under the relevant Split
      Contract (to the extent related to any business carried on by the Seller
      Group) as trustee for the Seller and as soon as reasonably practicable
      following receipt forward such payments, goods and other services to the
      Seller (or as it may direct);

            

    

    

    
      	
               
      

            	
              (ii)

            	
              exercise
      all rights, powers and benefits under the relevant Split Contract (to the
      extent relating to any business carried on by the Seller Group) in
      accordance with the Seller’s reasonable requirements but without incurring
      any financial commitment or for its own account or becoming involved in or
      threatening any form of legal action;
and

            

    

    

    
      	
               
      

            	
              (iii)

            	
              insofar
      as the Split Contract relates to Jaguar or Land Rover, use all reasonable
      endeavours to carry out or perform all relevant obligations under the
      Split Contract; and

            

    

    

    
      	
               
      

            	
              (b)

            	
              provided
      it is given reasonable notice of the same by the Buyer, the Seller shall
      with effect from Completion perform, or procure the performance, of all
      such Split Contracts (to the extent related to any business carried on by
      the Seller Group) in accordance with their terms and conditions as
      sub-contractor of the relevant Target Company provided that
      sub-contracting is (in the reasonable opinion of the Buyer) permitted
      under the terms of the relevant Split Contract, and where sub-contracting
      is not permissible, undertakes to perform, or procure the performance, as
      agent of the relevant Target Company and the Seller shall indemnify the
      Buyer and its Affiliates (including for the avoidance of doubt each Target
      Company or NSC Newco) against all and any Losses or Liabilities resulting
      from any failure on the part of a member of the Seller Group to perform or
      procure performance of those
obligations.

            

    

    

    
      
        
           

        

        
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              13.1.5

            	
              If
      the Buyer or the Seller so requests in writing, the Seller or the Buyer
      (respectively) shall with effect from Completion take all reasonable
      action, or procure that a member of the Seller Group (in the case of the
      Seller) or Target Company (in the case of the Buyer), takes all reasonable
      action as is reasonably necessary to agree to an arrangement with the
      counterparty or counterparties to any Split Contract whereby the Split
      Contract is terminated and replaced by two or more contracts (including
      one with a member of the Seller Group and one with a Target Company)
      reflecting the reasonable requirements of the Seller and the
      Buyer.

            

    

    

    
      	
              13.1.6

            	
              The
      Seller and the Buyer acknowledge and agree that a committee (the Contracts Committee)
      shall be established at Completion to act as a forum within which the
      Buyer and the Seller shall discuss such matters as may from time to time
      arise in relation to Split Contracts.  The Contracts Committee
      shall consist of up to six (6) members, a maximum of three (3) of whom
      shall be appointed by each of the Buyer and the Seller by way of notice
      served upon the other.  The first appointees of the Buyer shall
      be Mr S Proctor (Director of FM & SP Europe, Ford Werke GmbH) and Ms S
      Slaughter (Director of Purchasing Business Office, Ford Motor Company
      Limited) and the first appointees of the Seller shall be Mr B B Parekh
      (TML Holdings Limited) and Mr D Smith (JLR).  The party which
      has appointed any member of the Contracts Committee shall be free, upon
      giving to the other party which is entitled to appoint members of the
      Contracts Committee not less than ten (10) Business Days’ notice, to
      terminate the appointment of such member and appoint a
      replacement.

            

    

    

    
      	
              13.1.7

            	
              Either
      the Buyer or the Seller may convene a meeting of the Contracts Committee
      by giving not less than ten (10) Business Days’ notice by facsimile (the
      Meeting Request)
      to the other specifying the proposed date and time for the meeting (which
      shall be between 9.00 am and 5.00 pm (London time) on a Business Day) and
      specifying in reasonable detail the topics to be discussed at such
      meeting.  The Seller and the Buyer acknowledge and agree that
      there shall be no more than one meeting of the Contracts Committee in any
      given month unless otherwise agreed in writing by the
    parties.

            

    

    

    
      	
              13.1.8

            	
              The
      recipient of any Meeting Request shall use its reasonable endeavours to
      make the appropriate arrangements so as to enable the meeting to take
      place at the proposed date and time and shall, within three (3) Business
      Days of receipt of the Meeting Request, notify the sender by facsimile
      whether the recipient agrees with the proposed date and time for the
      meeting and offering, if the proposed time is not agreed, an alternative
      proposed meeting time (which shall be between 9.00 am and 5.00 pm (London
      time) on a Business Day) (such notice being the Meeting
      Response).  If the proposed date and time for the meeting
      is agreed the Contracts Committee shall be deemed to have been duly
      convened to meeting at such time.  If any Meeting Response
      proposes an alternative meeting date and time, the recipient shall use its
      reasonable endeavours to make the appropriate arrangements so as to enable
      the meeting to take place at the proposed alternative date and time and
      shall within three (3) Business Days of receipt of the Meeting Response
      give notice to the sender by facsimile specifying the date and time for
      the meeting of the Contracts Committee (which shall, if reasonably
      practicable, be at the proposed alternative date and time or otherwise at
      the such other date and time (which shall be between 9.00 am and 5.00 pm
      (London time) on a Business Day and shall not be the time proposed in the
      Meeting Request) as the recipient may
specify).

            

    

    

    
      	
              13.1.9

            	
              Each
      of the Buyer and the Seller shall use its reasonable endeavours to procure
      that at least two of its appointees to the Contracts Committee shall
      attend any meeting of the Contracts Committee and unless at least two
      appointees of each of the Buyer and the Seller are in attendance the
      meeting shall be deemed to be inquorate and shall be
      cancelled.  If any meeting of the Contracts Committee should be
      cancelled, the party which proposed the relevant Meeting Request shall as
      soon as reasonably practicable submit a further Meeting Request, which
      shall specify that it has been submitted as a result of such
      cancellation.  Each of the Buyer and the Seller shall procure
      that at least two of its appointees to the Contracts Committee shall
      attend any meeting the Contracts Committee convened pursuant to such a
      Meeting Request.  Meetings of the Contracts Committee may take
      place by teleconference or in person and the Contracts Committee shall,
      subject to this Clause 13.1 be free to determine its own
      procedures.

            

    

    

    
      
        
           

        

        
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              13.1.10

            	
              The
      Seller and the Buyer acknowledge and agree that any determination by the
      Contracts Committee shall not be binding with respect to a Split Contract
      unless and to the extent any such Split Contract is formally amended in a
      written agreement that is executed by each of the parties
      thereto.

            

    

    

    
      	
              13.2

            	
              Caterpillar
      Arrangements

            

    

    

    Subject
to Clause 13.1, each of the Seller and the Buyer shall use all reasonable
endeavours to ensure that following Completion, the Global LSA, the
Ford-Caterpillar Contracts and the JLR-Caterpillar Contracts continue to operate
in a manner as closely adjacent as is reasonably and commercially practicable to
the manner in which they operate at the date of this Sale and Purchase
Agreement, and without limitation to the generality of the foregoing the Seller
shall (or as the case may be shall procure that any other relevant member of the
Seller Group shall):

    

    
      	
               
      

            	
              (a)

            	
              provide
      to the JLR parties (including Embedded NSCs) to the JLR-Caterpillar
      Contracts and Ford-Caterpillar Contracts access to the IT Systems and
      Services of the Seller Group that are being used by JLR at Completion
      under or in connection with the JLR-Caterpillar Contracts and the
      Ford-Caterpillar Contracts, and related services, in accordance with the
      terms of the Information Technology
Agreement;

            

    

    

    
      	
               
      

            	
              (b)

            	
              not
      take any action (or as the case may be omit to take any action) which is
      within the Seller’s reasonable control that could reasonably be expected
      to give rise to the termination of (to the extent attributable to any
      matter arising under or in connection with  the Global LSA or
      any Ford-Caterpillar Contract) the JLR-Caterpillar Contracts (or the right
      of the non-JLR party thereto to effect such
  termination);

            

    

    

    
      	
               
      

            	
              (c)

            	
              not
      without the prior written consent of the Buyer (such consent not to be
      unreasonably withheld or delayed) agree to amend the Global LSA to the
      extent that such amendment would directly or indirectly adversely and
      materially affect any of the Ford-Caterpillar Contracts or the
      JLR-Caterpillar Contracts; and

            

    

    

    
      	
               
      

            	
              (d)

            	
              not
      without the prior written consent of the Buyer (such consent not to be
      unreasonably withheld or delayed) amend the Ford-Caterpillar
      Contracts.

            

    

    

    
      	
              14.

            	
              ASSUMED
      LIABILITIES 

            

    

    

    
      	
              14.1

            	
              The
      Buyer hereby undertakes to the Seller (for itself and on behalf of each
      member of the Seller Group) that it will with effect from Completion duly
      and properly perform, assume and pay and discharge when due, and indemnify
      and hold harmless the Seller and each member of the Seller Group against,
      any Assumed Liabilities and any and all Losses or Liabilities incurred or
      suffered as a result of or relating to any such Assumed Liabilities, it
      being understood that, with respect to any Assumed Liabilities and any
      associated Losses or Liabilities that arise in connection with a
      jurisdiction listed in Part C of Schedule 18 with respect to which the
      Condition set forth in Clause 4.1.3 is waived as permitted by Clause
      4.3.3, any such Liabilities and any such indemnification shall be, for the
      avoidance of doubt, for the account of the Buyer notwithstanding
      circumstances where, as required by Law, the performance, assumption,
      payment and discharge of any such Liabilities and any such indemnification
      by the Buyer may occur only at such time as the waived Condition is
      satisfied.  The Seller agrees that, as between the Buyer and the
      Seller and to the greatest extent permitted by Law, the Assumed
      Liabilities shall be assumed by the Buyer or the relevant entity with the
      intention that it shall have the benefit of the same rights, powers,
      remedies, claims, defences (including without limitation, rights of
      set-off and counter claim) enjoyed by the relevant member of the Seller
      Group.

            

    

    

    
      
        
           

        

        
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              14.2

            	
              The
      Buyer undertakes to the Seller that at any time and from time to time on
      or after Completion, it will at the cost of the Buyer execute and deliver
      all such further instruments of assumption and acknowledgements or take
      such other action as the Seller may reasonably request (provided that,
      without prejudice to the provisions of Clause 14.1, the Seller
      acknowledges and agrees that no such request may be regarded as reasonable
      to the extent it is made before the relevant Delayed Transfer Date with
      respect to Assumed Liabilities of the relevant Delayed NSC) in order to
      effect the release and discharge in full of the relevant member of the
      Seller Group in respect of any Assumed Liabilities, or the assumption by
      the Buyer, a member of the Buyer’s Group, a Target Company or a NSC Newco
      of the Assumed Liabilities and the substitution of the Buyer, a Target
      Company or a NSC Newco as the primary obligor in respect of the Assumed
      Liabilities, in each case on a non-recourse basis to any member of the
      Seller Group.

            

    

    

    
      	
              14.3

            	
              JLR
      Manufacturing Grants

            

    

    

    
      	
              14.3.1

            	
              The
      Buyer and the Seller agree that any Liability arising after Completion for
      repayment of any JLR Manufacturing Grant shall be borne between them
      equally and, accordingly, the Buyer shall indemnify the Seller against one
      half of all Losses and Liabilities incurred by any member of the Seller
      Group resulting from any claim or demand made after Completion for
      repayment of any amount in respect of a JLR Manufacturing Grant and the
      Seller shall indemnify the Buyer against one half of all Losses and
      Liabilities incurred by any Target Company resulting from any claim or
      demand made after Completion for repayment of any amount in respect of a
      JLR Manufacturing Grant.

            

    

    

    
      	
              14.3.2

            	
              After
      Completion, the Buyer shall not, and shall procure that no Target Company
      or NSC Newco shall, engage in any conduct, take any step or course of
      action or fail to take any step or course of action which shall cause any
      claim or demand to be made for repayment of any amount in respect of a JLR
      Manufacturing Grant.

            

    

    

    
      	
              14.4

            	
              US
      Dealer Claims

            

    

    

    The Buyer
and the Seller agree that any Losses and Liabilities arising after the date of
this Sale and Purchase Agreement with respect to any US Dealer Wrongful
Termination Claim (as such term is defined in Schedule 9) shall be borne
two-thirds by the Seller and one-third by the Buyer, and, accordingly the Buyer
shall indemnify the Seller against one-third of all Losses and Liabilities
incurred by any member of the Seller Group resulting from any claim or demand
made in respect of a US Dealer Wrongful Termination Claim, and the Seller shall
indemnify the Buyer against two-thirds of all Losses and Liabilities incurred by
any Target Company resulting from any claim or demand made in respect of a US
Dealer Wrongful Termination Claim.

    

    
      
        
           

        

        
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              15.

            	
              ASSURANCES

            

    

    

    
      	
              15.1

            	
              With
      effect from Completion, the Buyer
shall:

            

    

    

    
      	
              15.1.1

            	
              use
      reasonable endeavours to procure that each relevant member of the Seller
      Group shall be released in full from all Assurances listed in Section 5.03
      of the Data Room (other than any Assurances listed in Appendix 7 of the
      Vehicle Finance Separation Agreements between Ford Motor Credit Company
      LLC and Land Rover UK and/or Ford Motor Credit Company LLC and Jaguar Cars
      Limited in the Agreed Form);

            

    

    

    
      	
              15.1.2

            	
              use
      reasonable endeavours to procure the release of every relevant member of
      the Seller Group from all other Assurances relating to any Liability of a
      Target Company or any Assumed Liability as soon as reasonably practicable
      after becoming aware of such Assurance (other than any Assurances listed
      in Appendix 7 of the Vehicle Finance Separation Agreements between Ford
      Motor Credit Company LLC and Land Rover UK and/or Ford Motor Credit
      Company LLC and Jaguar Cars Limited in the Agreed Form);
    and

            

    

    

    
      	
              15.1.3

            	
              pending
      release in accordance with this Clause 15, indemnify each member of the
      Seller Group against all Losses and Liabilities incurred in respect of any
      such Assurance (including, without limitation, any liability of a member
      of the Seller Group to pay any sum to an insurer in respect of any claim
      made under an insurance policy by any of the Target Companies or, in so
      far as such claim relates to Jaguar and/or Land Rover, by any member of
      the Seller Group).

            

    

    

    
      	
              15.2

            	
              With
      effect from Completion, the Seller
shall:

            

    

    

    
      	
              15.2.1

            	
              procure
      that each relevant Target Company shall be released in full from any
      Assurances relating to any Liability of a member of the Seller Group
      (other than any Assumed Liability);
and

            

    

    

    
      	
              15.2.2

            	
              pending
      release in accordance with this Clause 15, indemnify each Target Company
      against all Losses and Liabilities incurred in respect of any such
      Assurance.

            

    

    

    
      	
              16.

            	
              EMPLOYMENT
      AND SECONDMENTS

            

    

    

    
      	
              16.1

            	
              In
      the event that an individual who is employed by a member of the Seller
      Group and who works wholly for JLR (excluding any Shared Services
      Employee, any Secondee, any Designated Employee or any individual who is
      within the scope of the Ford US Secondment Agreement arrangements in
      Clause 16.12 below):

            

    

    

    
      	
               
      

            	
              (a)

            	
              is
      wrongly identified in the Employee Lists referred to in the Disclosure
      Letter as an employee of a Target Company, he/she shall where secondments
      are lawful under the Laws of the relevant Territory be treated as a
      Secondee (in accordance with the arrangements referenced in Clause 16.11
      below).  Where secondments are not lawful under the Laws of the
      relevant Territory the Seller and the Buyer shall in good faith seek to
      agree appropriate contractual arrangements whereby the individual is
      treated as a JLR Wrong Pocket Employee;
or

            

    

    

    
      
        
           

        

        
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              (b)

            	
              is
      not identified in the Employee Lists referred to in the Disclosure Letter
      as a NSC Transferring Employee the Seller shall treat that individual as a
      NSC Transferring Employee for the purposes of this Clause
    16.

            

    

    

    
      	
              16.2

            	
              The
      Seller shall procure that the Seller Group and the Target Companies comply
      with all of their respective Collective Consultation Requirements and the
      Buyer shall procure that all of the Buyer’s Group comply with all of their
      respective Collective Consultation
Requirements.

            

    

    

    
      	
              16.3

            	
              To
      the extent reasonable, the Seller and the Buyer shall seek to adopt a
      collaborative approach to the Collective Consultation
      Requirements.  The Seller shall procure that no information,
      consultation or notification with any employee or Representative Body is
      carried out by or on behalf of the Seller, any Target Company or any
      company within the Seller Group in connection with the intentions of the
      Buyer in relation to the business of JLR, without obtaining the prior
      written approval of the Buyer.

            

    

    

    
      	
              16.4

            	
              It
      is agreed by the Buyer and the Seller that the Seller shall comply with
      its obligations pursuant to Clauses 7 and 8 of this Sale and Purchase
      Agreement in respect of the Reserved Territory in relation to: (i) the
      transfer of employment of JLR Employees; (ii) the establishment of a NSC
      Newco; (iii) the sale of the NSC Newco to the Buyer; and (iv) Clause 8.5
      in respect of the transfer of the Embedded NSC Assets and Assumed
      Liabilities on the NSC Long Stop Date, in each case after the relevant
      member of the Seller Group and/or the relevant Target Company and/or NSC
      Newco (as the case may be) have complied with all Collective Consultation
      Requirements in respect of such
obligations.

            

    

    

    
      	
              16.5

            	
              Subject
      to Clause 16.4 of this Sale and Purchase Agreement (in respect of the
      Reserved Territory), the Seller shall use reasonable endeavours in
      collaboration with the Buyer to procure that each NSC Transferring
      Employee is employed by the NSC Newco (or, as the case may be, a Target
      Company) in the relevant jurisdiction on or before the later of the
      Completion Date (or in respect of a Delayed NSC, the Delayed Transfer
      Date) on terms and conditions of employment as the Buyer may reasonably
      stipulate which shall in any event be no less favourable in aggregate than
      their current terms and conditions (including but without limitation any
      current terms and conditions relating to membership of pension
      arrangements and the benefit structure thereunder) as have been disclosed
      to the Buyer prior to 30 April 2008 (such terms to be provided by the
      Buyer in writing in a timely fashion sufficiently in advance of the
      Completion Date or Delayed Transfer Date but in any event in any
      jurisdiction not before the earlier of 30 April 2008 and such time that
      the Seller has confirmed to the Buyer that it has provided the Buyer with
      complete and accurate details of the current terms and conditions of the
      NSC Transferring Employees in that jurisdiction) or, in default of any
      such terms and conditions being stipulated by the Buyer, the Seller shall
      use reasonable endeavours to ensure that the NSC Transferring Employees
      are employed by the NSC Newco (or, as the case may be, a Target Company)
      on terms and conditions which are the same as or no less favourable than
      their current terms and conditions (including but without limitation any
      current terms and conditions relating to membership of pension
      arrangements and the benefit structure thereunder) as disclosed to the
      Buyer prior to 30 April 2008.  The parties acknowledge the
      Seller is under no obligation to offer financial incentives in order to
      comply with this Clause.  The Seller may at its discretion
      require any NSC Transferring Employee to waive (in a manner in which the
      Seller is reasonably satisfied is legally effective) any entitlement to
      redundancy or severance payments which would otherwise be payable on the
      termination of his employment with the relevant member of the Seller Group
      or any legal claims arising out of such termination.  In respect
      of any Delayed NSC the Buyer shall, to the extent that the relevant Target
      Company or NSC Newco is under the ultimate ownership or operational
      control of the Buyer, use all reasonable endeavours to assist the Seller
      in procuring that such NSC Transferring Employees are employed by the NSC
      Newco or Target Company on or before the Delayed Transfer Date, including
      where necessary by procuring that the NSC Newco or Target Company makes
      offers of employment to the NSC Transferring Employees in accordance with
      the terms of this Clause 16.5, in collaboration with the
      Seller.

            

    

    

    
      
        
           

        

        
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              16.6

            	
              If
      a NSC Transferring Employee:

            

    

    

    
      	
              16.6.1

            	
              objects
      to the transfer of his/her employment to a NSC Newco (or, as the case may
      be, a Target Company);

            

    

    

    
      	
              16.6.2

            	
              declines
      an offer of employment from a NSC Newco (or, as the case may be, a Target
      Company) made pursuant to the Seller Group’s obligations under Clause
      16.5;

            

    

    

    
      	
              16.6.3

            	
              fails
      to accept before the Completion Date or Delayed Transfer Date (as
      applicable) an offer of employment from a NSC Newco (or, as the case may
      be, a Target Company) made pursuant to the Seller Group’s obligations
      under Clause 16.5; or

            

    

    

    
      	
              16.6.4

            	
              resigns
      in circumstances where their employment ends prior to Completion or, if
      later, any Delayed Transfer Date;

            

    

    

    the
Seller will notify the Buyer forthwith and, upon the written request of the
Buyer, use all reasonable endeavours to persuade the NSC Transferring Employee
to become employed by the NSC Newco (or, as the case may be, a Target Company),
but the Seller shall not otherwise be required to take any further steps to
comply with its obligation under Clause 16.5.

    

    
      	
              16.7

            	
              Subject
      to the Clauses 16.1, 16.14, 16.15 and 16.16, the Seller shall procure that
      no NSC Newco shall prior to the Completion Date (or, if later, the Delayed
      Transfer Date) offer employment to any person other than a NSC
      Transferring Employee without the prior approval of the Buyer, such
      approval not to be unreasonably withheld (save to the extent that ultimate
      ownership or operational control of the NSC Newco has passed to the
      Buyer).

            

    

    

    
      	
              16.8

            	
              In
      the event that any of the circumstances set out in Clause 16.6 applies or
      where a NSC Transferring Employee accepts an offer of employment made by
      (or the transfer of his employment to) the NSC Newco (or, as the case may
      be, a Target Company), the relevant member of the Seller Group may
      terminate the employment of such person, and all Losses and Liabilities
      incurred by any member of the Seller Group in connection with the
      termination of such person’s employment, including any Severance Payments
      (subject to the conditions and limitations in Clauses 16.8.1 to 16.8.5)
      which are payable on the termination of his or her employment with the
      relevant member of the Seller Group, shall be borne in equal shares by the
      Seller and the Buyer.  The Buyer agrees to indemnify the Seller
      in respect of its share of any such Losses and Liabilities (subject to the
      Seller providing the Buyer with such information as the Buyer may
      reasonably request verifying the amount of such Losses and Liabilities in
      respect of each relevant employee, including copies of any relevant
      termination agreements and information showing the basis for calculating
      the amount payable to each relevant employee) and the Seller agrees to
      indemnify the Buyer in respect of its share of any such Losses and
      Liabilities.  The relevant member of the Seller Group shall use
      all reasonable endeavours to minimise any such Losses and Liabilities (but
      having regard to Clauses 16.8.3 and 16.8.5). In this Clause 16.8 Severance
      Payment shall mean:

            

    

    

    
      
        
           

        

        
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              16.8.1

            	
              any
      payments made by a member of the Seller Group which are (i) contractually
      due, or (ii) due pursuant to the Laws of the Territory in which the NSC
      Transferring Employee is employed, in either case to any NSC Transferring
      Employee by reason of the termination of their employment (including
      without limitation any notice or payment in lieu of notice but subject to
      Clause 16.8.3 excluding any payments in respect of any remuneration or
      other benefits in relation to the employment of any NSC Transferring
      Employee in respect of the period up to the termination of any NSC
      Transferring Employee’s employment). For the avoidance of doubt, Severance
      Payments includes (as applicable) any retirement allowance payments due on
      termination in Japan;

            

    

    

    
      	
              16.8.2

            	
              any
      damages, awards, penalties or other Losses or Liabilities (including
      reasonable legal costs and expenses) arising out of or in connection with
      any claim brought by or on behalf of any NSC Transferring Employee
      relating to the termination of his or her employment by a member of the
      Seller Group;

            

    

    

    
      	
              16.8.3

            	
              subject
      to the consent of the Buyer (such consent not to be unreasonably withheld
      or delayed) any payment made (where reasonably necessary) to settle or
      compromise a claim or liability (or potential claim or liability) arising
      out of or in connection with the termination of employment of any NSC
      Transferring Employee by a member of the Seller
  Group;

            

    

    

    
      	
              16.8.4

            	
              any
      current salary or other benefit costs payable to a NSC Transferring
      Employee following Completion (or, in respect of a Delayed NSC, following
      the Delayed Transfer Date) where the relevant member of the Seller Group
      is delayed or prevented from terminating the NSC Transferring Employee’s
      employment by Law (or where such delay is otherwise agreed in writing
      between the parties); and

            

    

    

    
      	
              16.8.5

            	
              subject
      to the consent of the Buyer (such consent not to be unreasonably withheld
      or delayed) any enhanced terms or payments (in excess of the terms or
      payments referred to at Clauses 16.8.1 to 16.8.4) which the Seller
      reasonably determines in good faith are necessary to bring the total
      severance package for the NSC Transferring Employee into line with (but
      not in excess of) market practice in that
  Territory.

            

    

    

    For the
avoidance of doubt the Buyer shall not be required to contribute to any
ex-gratia payment offered by the Seller to any NSC Transferring Employee on the
termination of their employment (save as required in Clauses 16.8.3 and 16.8.5)
unless it has given its prior written consent.

    

    
      	
              16.9

            	
              The
      Buyer shall indemnify the Seller for any Losses or Liabilities directly or
      indirectly caused by the Buyer or any member of the Buyer’s Group as a
      result of the Buyer failing to provide the Seller with details of proposed
      terms and conditions of employment in accordance with Clause 16.5 above or
      any Losses or Liabilities occasioned by or arising out of an offer of
      employment being made on terms stipulated by the
  Buyer.

            

    

    

    
      	
              16.10

            	
              In
      the event a NSC Transferring Employee has not transferred to the relevant
      NSC Newco (or as the case may be a Target Company) by the Long Stop Date,
      the provisions in Part 3 of Schedule 8 will
  apply.

            

    

    

    
      	
              16.11

            	
              The
      Buyer and the Seller shall give effect to the provisions of the Secondment
      Agreements by procuring that the relevant members of the Seller Group and
      Buyer’s Group enter into Secondment Agreements in respect of all Secondees
      and Designated Employees and any individual treated as a Secondee pursuant
      to Clause 16.1 above, except where the existing secondment arrangements
      for such Secondee or Designated Employee come to an end before Completion
      (or in the case of a Delayed NSC, the Delayed Transfer Date) on the
      “Planned Completion” date identified in the Secondee Lists (as referenced
      in the Disclosure Letter) or on such other date as may be mutually agreed
      in writing between the parties.

            

    

    

    
      
        
           

        

        
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              16.12

            	
              The
      Buyer and the Seller shall give effect to the provisions of the Ford US
      Secondment Agreement with respect to those persons employed by members of
      the Seller Group in the business of Jaguar and/or Land Rover specified
      therein.  None of the provisions of Clause 16 of this Sale and
      Purchase Agreement shall apply to any individuals with respect to their
      secondment and transfer of employment in the US under the provisions of
      the US Secondment Agreement (other than Clauses 16.11, 16.12 and
      16.13).

            

    

    

    
      	
              16.13

            	
              The
      Seller and the Buyer agree that this Clause 16 and the Ford US Secondment
      Agreement and other Secondment Agreements shall be subject to the
      requirements of Schedule 11 in any case where Schedule 11 imposes
      additional obligations on either party in respect of pensions and related
      benefits.

            

    

    

    
      	
              16.14

            	
              Nothing
      in Schedule 7 or Clause 17 shall prevent any member of the Seller Group
      from making an offer of employment to each Seller Wrong Pocket Employee,
      with any such offer to commence with effect from the Completion
      Date.  If such offer is accepted by a Seller Wrong Pocket
      Employee, that person shall cease to be a JLR
  Employee.

            

    

    

    
      	
              16.15

            	
              Nothing
      in Schedule 7 or Clause 17 shall prevent a Target Company or JLR
      Subsidiary from making an offer of employment to each JLR Wrong Pocket
      Employee, with any such offer to commence with effect from the Completion
      Date.  If such offer is accepted by a JLR Wrong Pocket Employee,
      that person shall become a JLR Employee in the relevant
      Territory.

            

    

    

    
      	
              16.16

            	
              The
      Seller and the Buyer have agreed the following terms in relation to Shared
      Services Employees:

            

    

    

    
      	
              16.16.1

            	
              the
      Seller and the Buyer shall procure that as soon as reasonably practicable
      following the date of this Sale and Purchase Agreement, a duly authorised
      member of the Seller Group and JLR shall each identify for each Shared
      Services Territory how many of the Shared Services Employees they will
      require from Completion and produce a description of the positions
      available within their respective organisational structures for which the
      Shared Services Employees shall be eligible to
  apply;

            

    

    

    
      	
              16.16.2

            	
              once
      the duly authorised member of each of the Seller Group and JLR have
      completed the steps envisaged in Clause 16.16.1, the Seller and the Buyer
      shall procure that on an agreed date the lists of available positions are
      then made available to the Shared Services Employees in the relevant
      Shared Services Territory and that such Shared Services Employees are
      invited by the relevant member of the Seller Group and JLR to apply for
      any of those positions for which such Shared Services Employees would like
      to be considered, provided that if one party is not ready to publish its
      list of available positions by sixty (60) days prior to the anticipated
      date of Completion (or in the case of a Delayed NSC sixty (60) days before
      the anticipated Delayed Transfer Date) the other party may proceed to
      unilaterally publish its list and to make offers in accordance with Clause
      16.16.3, save for any Territory where Completion is anticipated to take
      place on or before 1 June 2008 in which case the relevant date shall be
      forty-five (45) days prior to the anticipated date of Completion (or, in
      the case of a Delayed NSC, forty-five (45) days prior to the Delayed
      Transfer Date);

            

    

    

    
      	
              16.16.3

            	
              the
      Seller and the Buyer shall procure that the relevant member of the Seller
      Group and JLR select those Shared Services Employees to whom they wish to
      make offers from those who have applied and shall make offers of
      employment to commence with effect from the Completion Date (or in the
      case of a Delayed NSC, with effect from the Delayed Transfer Date) giving
      the Shared Services Employee a reasonable period of time in which to
      accept the offer of employment.  Where the job offered is the
      same as or substantially similar to that person’s current job or is on the
      same grade (or any comparable grade if the grading system used is
      different) the terms of the offer must be no less favourable in aggregate
      than the person’s current terms and conditions (including but without
      limitation any current terms and conditions relating to membership of
      pension arrangements and the benefit structure thereunder) as have been
      disclosed to the Buyer prior to 30 April 2008.  All offers of
      employment shall be made as early as possible in the process and ideally
      at least forty-five (45) days before the anticipated date of Completion
      (or in the case of a Delayed NSC, at least forty-five (45) days before the
      Delayed Transfer Date), but in any event must be made no later than
      fifteen (15) days before the anticipated date of Completion (or in the
      case of a Delayed NSC, no later than fifteen (15) days before the Delayed
      Transfer Date).  The Shared Services Employee shall be given
      fifteen (15) days in which to accept any offer
  made;

            

    

    

    
      
        
           

        

        
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              16.16.4

            	
              the
      Seller and the Buyer shall procure that the relevant member of the Seller
      Group and JLR identify to each other those Shared Services Employees who
      have accepted offers;

            

    

    

    
      	
              16.16.5

            	
              the
      Seller and the Buyer shall procure that any Shared Services Employee who
      accepts an offer made under this process shall be released from his/her
      notice obligations and post-termination restrictions applicable to such
      Shared Service Employee (to the extent necessary to enable such Shared
      Service Employee to be employed by the Seller Group or JLR as the case may
      be in accordance with the terms of the job offer made to them) under their
      current contract with effect from the Completion Date (or, in the case of
      a Delayed NSC, with effect from the Delayed Transfer Date).  The
      Seller and the Buyer shall procure that the relevant member of the Seller
      Group and JLR shall encourage the Shared Services Employees to give as
      much advance notice of termination as possible to their current employer
      in the event that they accept a new job offer from a member of the Seller
      Group or JLR pursuant to this Clause
16.16;

            

    

    

    
      	
              16.16.6

            	
              the
      Seller and the Buyer shall each be responsible for their respective shares
      of any Losses and Liabilities including any Aggregate Severance Costs
      (subject to the conditions and limitations in Clauses 16.16.8(a) to
      16.16.8(e)) incurred as a result of the Seller or relevant member of the
      Seller Group terminating the employment of any Shared Services Employee
      who has not:

            

    

    

    
      	
               
      

            	
              (a)

            	
              accepted
      an offer of employment from a member of the Seller Group or JLR;
      or

            

    

    

    
      	
               
      

            	
              (b)

            	
              received
      and offer of employment from a member of the Seller Group or
      JLR;

            

    

    

    or where
such Shared Services Employee’s employment is terminated as a result of having
accepted an offer from a member of the Seller Group or JLR;

    

    
      	
              16.16.7

            	
              the
      Buyer shall promptly reimburse the Seller on demand for the Buyer’s share
      of the Aggregate Severance Costs for each Shared Services Employee subject
      to receiving reasonable evidence of the
same;

            

    

    

    
      	
              16.16.8

            	
              the
      relevant member of the Seller Group shall use reasonable endeavours to
      ensure that any Aggregate Severance Costs are kept to a minimum (but
      having regard to Clauses 16.16.8(c) and (e)) and to terminate any such
      person’s employment as soon as reasonably practicable after
      Completion.  The term “Aggregate Severance Costs” shall
      mean:

            

    

    

    
      
        
           

        

        
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              (a)

            	
              any
      payments made by a member of the Seller Group which are: (i) contractually
      due; or (ii) due pursuant to the Laws of the Territory in which the Shared
      Service Employee is employed, in either case to any Shared Service
      Employee by reason of the termination of their employment (including
      without limitation any notice or payment in lieu of notice but subject to
      Clause 16.16.8(c) below excluding any payments in respect of any
      remuneration or other benefits in relation to the employment of any Shared
      Service Employee in respect of the period up to the termination of any
      Shared Service Employee’s employment).  For the avoidance of
      doubt, the term Aggregate Severance Costs includes (as applicable) any
      retirement allowance payments due on termination in
  Japan;

            

    

    

    
      	
               
      

            	
              (b)

            	
              any
      damages, awards, penalties or other Losses or Liabilities (including
      reasonable legal costs and expenses) arising out of or in connection with
      any claim brought by or on behalf of any Shared Services Employee relating
      to the termination of his employment by a member of the Seller
      Group;

            

    

    

    
      	
               
      

            	
              (c)

            	
              subject
      to the consent of the Buyer (such consent not to be unreasonably withheld
      or delayed) any payment made (where reasonably necessary) to settle or
      compromise a claim or liability (or potential claim or liability) arising
      out of or in connection with the termination of employment of any Shared
      Services Employee by a member of the Seller
  Group;

            

    

    

    
      	
               
      

            	
              (d)

            	
              any
      current salary or other benefit costs payable to a Shared Services
      Employee following Completion (or, in respect of a Delayed NSC, following
      the Delayed Transfer Date) where the relevant member of the Seller Group
      is delayed or prevented from terminating the Shared Services Employee’s
      employment by Law (or where such delay is otherwise agreed in writing
      between the parties); and

            

    

    

    
      	
               
      

            	
              (e)

            	
              subject
      to the consent of the Buyer (such consent not to be unreasonably withheld
      or delayed) any enhanced terms or payments (in excess of the terms or
      payments referred to in this sub-clause 16.16.8) which the Seller
      reasonably determines in good faith are necessary to bring the total
      severance package for the Shared Services Employee into line with (but not
      in excess of) market practice in that
Territory;

            

    

    

    For the
avoidance of doubt the Buyer shall not be required to contribute to any
ex-gratia payment offered by the Seller to any Shared Services Employee on the
termination of their employment (save as required in Clauses 16.16.8(c) and (e))
unless it has given its prior written consent.

    

    
      	
              16.16.9

            	
              the
      Seller and Buyer’s respective shares of the Aggregate Severance Costs in
      each Shared Services Territory shall be calculated by reference to the
      following formula:

            

    

    

    X  =
(A - C)

    

    Y  =
(B - D)

    

    Z  =
(X + Y)

    

    Buyer share = (X / Z) x
Aggregate Severance Costs

    

    Seller share = (Y / Z) x
Aggregate Severance Costs

    

    Where:

    

    “A” means
the JLR Shared Services Headcount for that Shared Services
Territory;

    

    
      
        
           

        

        
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    “B” means
the member of the Seller Group Shared Services Headcount for that Shared
Services Territory;

    

    “C” means
the number of job offers made by JLR and accepted by Shared Services Employees
in that Shared Services Territory; and

    

    “D” means
the number of job offers made by the relevant member of the Seller Group and
accepted by Shared Services Employees in that Shared Services
Territory.

    

    
      	
              16.17

            	
              If
      the Seller transfers the Embedded NSC Assets of an Embedded NSC to a Third
      Party Importer in accordance with Clause 7.1.2(iii), the Seller may, at
      its discretion, either:

            

    

    

    
      	
              16.17.1

            	
              procure
      that the NSC Transferring Employees employed in such Embedded NSC (or any
      of them) remain employed by the relevant member of the Seller Group;
      or

            

    

    

    
      	
              16.17.2

            	
              seek
      to arrange for the relevant Third Party Importer to make offers of
      employment to the NSC Transferring Employees employed in such Embedded NSC
      (or any of them) or otherwise seek to arrange for their employment to
      transfer to the relevant Third Party Importer;
  or

            

    

    

    
      	
              16.17.3

            	
              terminate
      the employment of the NSC Transferring Employees employed in such Embedded
      NSC (or any of them) either (i) where the NSC Transferring Employee has
      agreed to transfer to, or has accepted an offer of employment from, the
      Third Party Importer or (ii) in circumstances where the NSC Transferring
      Employee has not received an offer or has not accepted an offer of
      employment from the Third Party
Importer.

            

    

    

    
      	
              16.18

            	
              If
      the Seller transfers the Embedded NSC Assets of an Embedded NSC to a Third
      Party Importer in accordance with Clause 7.1.2 (iii), the Seller and Buyer
      shall be responsible in equal shares for any Losses or Liabilities
      including any Severance Costs (subject to the conditions and limitations
      in Clauses 16.19.1 to 16.19.5) arising out of any of the following
      circumstances or events:

            

    

    

    
      	
              16.18.1

            	
              where
      the Seller terminates the employment of a NSC Transferring Employee in
      that Territory where such NSC Transferring Employee has agreed to transfer
      to or accepted an offer of employment from the Third Party Importer;
      or

            

    

    

    
      	
              16.18.2

            	
              where
      the Third Party Importer refuses to make an offer of employment to a NSC
      Transferring Employee in that Territory or to accept the transfer of any
      such NSC Transferring Employee; or

            

    

    

    
      	
              16.18.3

            	
              where
      a NSC Transferring Employee in that Territory does not accept (within a
      reasonable timeframe) an offer of employment made by the Third Party
      Importer.

            

    

    

    The Buyer
agrees to indemnify the Seller in respect of its shares of such Losses,
Liabilities and Severance Costs and the Seller agrees to indemnify the Buyer in
respect of its share of such Losses, Liabilities and Severance Costs (subject to
each Party providing the other with such information as the other may reasonably
request verifying the amount of such Losses and Liabilities in respect of each
relevant employee, including copies of any relevant termination agreements and
information showing the basis for the amount payable to each relevant employee).
The relevant member of the Seller Group shall use all reasonable endeavours to
ensure that any Severance Costs are kept to a minimum (but having regard to
Clauses 16.19.3 and 16.19.5).

    

    
      
        
           

        

        
          69

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    
      	
              16.19

            	
              In
      Clause 16.18 “Severance Costs” shall
mean:

            

    

    

    
      	
              16.19.1

            	
              any
      payments made by a member of the Seller Group which are (i) contractually
      due or (ii) due pursuant to the Laws of the Territory in which the NSC
      Transferring Employee is employed in either case to any NSC Transferring
      Employee by reason of the termination of their employment (including
      without limitation any notice or payment in lieu of notice but subject to
      Clause 16.19.3 excluding any payments in respect of any remuneration or
      other benefits in relation to the employment of any NSC Transferring
      Employee in respect of the period up to the termination of any NSC
      Transferring Employee’s
employment);

            

    

    

    
      	
              16.19.2

            	
              any
      damages, awards, penalties or other Losses or Liabilities (including legal
      costs and expenses) arising out of or in connection with any claim brought
      by or on behalf of any NSC Transferring Employee relating to the
      termination of his employment by a member of the Seller
    Group;

            

    

    

    
      	
              16.19.3

            	
              subject
      to the consent of the Buyer (such consent not to be unreasonably withheld
      or delayed) any payment made (where reasonably necessary) to settle or
      compromise a claim or liability (or potential claim or liability) arising
      out of or in connection with the termination of employment of any NSC
      Transferring Employee by a member of the Seller
  Group;

            

    

    

    
      	
              16.19.4

            	
              any
      current salary or other benefit costs payable to a NSC Transferring
      Employee following the transfer  of the Embedded NSC Assets to
      the Third Party Importer where the relevant member of the Seller Group is
      delayed or prevented from terminating the NSC Transferring Employee’s
      employment by Law (or where such delay is otherwise in writing between the
      parties); and

            

    

    

    
      	
              16.19.5

            	
              subject
      to the consent of the Buyer (such consent not to be unreasonably withheld
      or delayed) any enhanced terms or payments (in excess of the terms or
      payments referred to at Clauses 16.19.1 to 16.19.5) which the Seller
      reasonably determines in good faith are necessary to bring the total
      severance package for the NSC Transferring Employee into line with (but
      not in excess of) market practice in that
  Territory.

            

    

    

    For the
avoidance of doubt the Buyer shall not be required to contribute to any
ex-gratia payment offered by the Seller to any NSC Transferring Employee on the
termination of their employment (save as required in Clauses 16.19.3 and
16.19.5) unless it has given its prior written consent.

    

    
      	
              17.

            	
              NON-SOLICITATION
      UNDERTAKINGS

            

    

    

    
      	
              17.1

            	
              The
      Buyer covenants with the Seller and separately with each member of the
      Seller Group that it shall not and shall procure that no member of the
      Buyer’s Group or, after Completion any Target Company, NSC Newco (after it
      has been acquired by the Buyer) or Embedded NSC shall, in each case
      whether alone or jointly with any other person, firm or company and
      whether directly or indirectly, within the period of twelve (12) months
      from the date of this Sale and Purchase Agreement in the case of members
      of the Buyer’s Group but only from Completion in respect of Target
      Companies, NSC Newcos (after they have been acquired by the Buyer) and
      Embedded NSCs, solicit or endeavour to entice away from, or discourage
      from being employed by or providing services to, any member of the Seller
      Group any person who was at the date of this Sale and Purchase Agreement a
      Ford Senior Employee whether or not such person would commit a breach of
      contract by reason of leaving service other
  than:

            

    

    

    
      
        
           

        

        
          70

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    
      	
              17.1.1

            	
              any
      Ford Senior Employee whose employment with the relevant member of the
      Seller Group has then ceased or who has given (or received) notice
      terminating such employment;

            

    

    

    
      	
              17.1.2

            	
              any
      Ford Senior Employee who responds to any public recruitment advertisement
      placed by or on behalf of Target Company, Embedded NSC or any member of
      the Buyer’s Group; or

            

    

    

    
      	
              17.1.3

            	
              to
      the extent expressly permitted pursuant to a Secondment Agreement or
      pursuant to this Sale and Purchase
Agreement.

            

    

    

    
      	
              17.2

            	
              The
      Seller covenants with the Buyer and separately with each member of Buyer’s
      Group that it shall not and shall procure that no member of the Seller
      Group shall, in each case whether alone or jointly with any other person,
      firm or company, and whether directly or indirectly, within the period of
      twelve (12) months from the date of this Sale and Purchase Agreement,
      solicit or endeavour to entice away from, or discourage from being
      employed by or providing services to, any Target Company, NSC Newco,
      Embedded NSC any person who was at the date of this Sale and Purchase
      Agreement a JLR Senior Employee whether or not such person would commit a
      breach of contract by reason of leaving service other
  than:

            

    

    

    
      	
              17.2.1

            	
              any
      JLR Senior Employee whose employment with the relevant Target Company or
      the relevant Embedded NSC has then ceased or who has given (or received)
      notice terminating such employment;

            

    

    

    
      	
              17.2.2

            	
              any
      JLR Senior Employee who responds to any public recruitment advertisement
      placed by or on behalf of any member of the Seller Group;
    or

            

    

    

    
      	
              17.2.3

            	
              to
      the extent expressly permitted pursuant to a Secondment Agreement or
      pursuant to this Sale and Purchase Agreement or in respect of offers to be
      made to certain individuals in Spain who are identified in the Employee
      Lists referred to in the Disclosure
Letter.

            

    

    

    
      	
              18.

            	
              PENSIONS

            

    

    

    
      	
              18.1

            	
              The
      parties shall give effect to Schedule
11.

            

    

    

    
      	
              18.2

            	
              The
      Buyer undertakes to pay forthwith on demand to the Seller a sum equal to
      the amount of any actual liability and reasonable costs arising after
      Completion which the Seller or any Associated Persons or Connected Persons
      of the Seller (other than a Target Company or a Delayed NSC) may after
      Completion sustain, incur or pay to the extent such liability is the
      result of any inaccurate, misleading or incomplete information provided by
      or on behalf of the Buyer or any Associated Persons or Connected Persons
      of the Buyer at the time of applying for, and for the purposes of
      obtaining and maintaining up to Completion the Clearance Statements (save
      to the extent that the liability relates to an act or omission of the
      Seller or any Associated Person or Connected Person of the Seller as set
      out in Clause
      ‎18.3 or to any breach by the Buyer which has been the subject of a
      waiver by the Seller under Clause 4.3.1(a)) in respect of any order,
      direction or notice made by the Pensions Regulator from time to time
      (including a contribution notice or financial support direction under the
      Pensions Act 2004 but limited to contribution notices and financial
      support directions issued within six (6) years and one (1) year
      respectively after Completion) that requires the Seller or any Associated
      Persons or Connected Persons (other than a Target Company or a Delayed
      NSC) of the Seller to:

            

    

    

    
      	
              18.2.1

            	
              contribute
      to any of the UK Pension Schemes;

            

    

    

    
      
        
           

        

        
          71

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    
      	
              18.2.2

            	
              make
      a payment to the Board of the Pension Protection Fund in relation to the
      UK Pension Schemes; or

            

    

    

    
      	
              18.2.3

            	
              provide
      financial support in relation to the UK Pension
  Schemes.

            

    

    

    
      	
              18.3

            	
              The
      Seller undertakes to pay forthwith on demand to the Buyer a sum equal to
      the amount of actual liability and reasonable costs arising after
      Completion which the Buyer or any Associated Persons or Connected Persons
      of the Buyer may after Completion sustain, incur or pay to the extent such
      liability is the result of any inaccurate, misleading or incomplete
      information provided by or on behalf of the Seller or any Associated
      Persons or Connected Persons of the Seller at the time of applying for,
      and for the purposes of obtaining and maintaining up to Completion the
      Clearance Statements (save to the extent that the liability relates to an
      act or omission of the Buyer or any Associated Person or Connected Person of the
      Buyer as set out in Clause ‎18.2 or to any breach by the Seller
      which has been the subject of a waiver by the Buyer under Clause 4.3.1(b))
      in respect of any order, direction or notice made by the Pensions
      Regulator from time to time (including a contribution notice or financial
      support direction under the Pensions Act 2004 but limited to contribution
      notices and financial support directions issued within six (6) years and
      one (1) respectively after Completion) that requires the Buyer, any Target
      Company, any Delayed NSC or any Associated Persons or Connected Persons
      (other than the Seller) of the Buyer or any Target Company or any Delayed
      NSC to:

            

    

    

    
      	
              18.3.1

            	
              contribute
      to any of the UK Pension Schemes;

            

    

    

    
      	
              18.3.2

            	
              make
      a payment to the Board of the Pension Protection Fund in relation to the
      UK Pension Scheme; or

            

    

    

    
      	
              18.3.3

            	
              provide
      financial support in relation to the UK Pension
  Schemes.

            

    

    

    
      	
              19.

            	
              INSURANCE

            

    

    

    
      	
              19.1

            	
              Claims
      Based Claims

            

    

    

    The
Seller undertakes that the Target Companies, the NSC Newcos and the Delayed NSCs
shall, subject to the applicable terms and conditions of the policy (including
data requirements), be insured under the Ford Excess Liability (Umbrella)
Insurance Program in respect of liability caused by any Occurrence (as that term
is defined in the Ford Excess Liability (Umbrella) Insurance Program) which
occurred prior to the Completion Date and which is notified to insurers in
accordance with the terms of the said policy prior to 15 December
2008.  The Seller shall maintain a Ford Excess Liability (Umbrella)
Insurance Program through 15 December 2008, with such limits and coverage as the
Seller in its sole discretion determines prudent in light of its business and
market conditions and the Target Companies, the NSC Newcos  and the
Delayed NSCs shall enjoy the same level of coverage as the Seller under the Ford
Excess Liability (Umbrella) Insurance Program through 15 December 2008 in
respect of liability caused by any Occurrence which occurred prior to the
Completion Date.  It shall be the responsibility of the Target
Companies, the NSC Newcos (as and when the relevant NSC Newco has been
transferred in accordance with Clause 7 or 8 (as appropriate)) and the Delayed
NSCs to submit to insurers, through the Seller’s corporate insurance function in
Dearborn, Michigan, USA any claims relating to such liability, and the Seller
shall give all reasonable assistance to the Buyer to enable it to do so (but
without incurring any financial commitment or becoming involved in or
threatening any form of legal action).

    

    
      
        
           

        

        
          72

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    
      	
              19.2

            	
              Occurrence
      Based Claims

            

    

    

    In
respect of any policy of insurance (including, but in no way limited to,
employer’s liability insurance) of any member of the Seller Group that provides
cover to any of the Target Companies and/or any NSC Newcos and/or any Embedded
NSC and/or provides cover in relation to the Halewood Plant:

    

    
      	
               
      

            	
              (a)

            	
              on
      or before the Completion Date; and

            

    

    

    
      	
               
      

            	
              (b)

            	
              other
      than on a claims-made basis (such being a policy under which the date on
      which the claim is made against the insured determines whether the loss is
      recoverable) (such a policy of insurance, an Occurrence Based
      Policy),

            

    

    

    the
Target Companies, the NSC Newcos and the Delayed NSCs shall remain insured and
entitled to recover (and all claims in relation to the Halewood Plant shall be
insured and recoverable) under and subject to the terms and conditions of such
policy of insurance in respect of any loss or liability relating to occurrences,
events or circumstances prior to the Completion Date, notwithstanding that the
claim by the Target Company, the NSC Newco or the Delayed NSC or the claim in
relation to the Halewood Plant may first be made to the insurer subsequent to
the Completion Date.

    

    
      	
              19.3

            	
              No
      Right or Interest in Insurance
Policies

            

    

    

    The Buyer
acknowledges and agrees that, save as provided in Clauses 19.1, 19.2 and 19.4
with effect from the Completion Date (but without prejudice to any accrued
claims of the Target Companies, the Delayed NSCs or, insofar as they relate to
Jaguar and/or Land Rover, any member of the Seller Group, and subject to the
terms of the applicable policies), neither it nor any Target Company nor any
Delayed NSC shall have any right or interest in any policies of insurance
maintained by the Seller or any member of the Seller Group in relation to the
Target Companies, the Delayed NSCs or the JLR Assets prior to the Completion
Date.

    

    
      	
              19.4

            	
              Coverage
      of Delayed NSCs

            

    

    

    
      	
              19.4.1

            	
              With
      respect to the Delayed NSCs and their respective NSC Newcos, the Seller
      Group shall provide cover, until the Delayed Transfer Date, for any such
      Delayed NSC that is to be established in a jurisdiction where (and to the
      extent) such insurance (i) is required by local law and (ii) can be
      procured only by an entity organised under the Law of such
      jurisdiction.  The Buyer shall reimburse the Seller for the cost
      of such insurance.

            

    

    

    
      	
              19.4.2

            	
              Any
      and all rights and/or recoveries relating to or arising from any claim
      referred to in Clause 19.4.1 shall inure to the benefit of the Buyer or
      such entity as is nominated by the Buyer and/or any Related Person
      nominated by the Buyer.  For the purpose of this Clause 19.4.2,
      the term Related
      Person shall have the meaning given to it in the NSC Interim
      Management Agreement.

            

    

    

    
      	
              19.5

            	
              Seller’s
      Rights in Insurance Policies

            

    

    

    For the
avoidance of doubt:

    

    
      	
               
      

            	
              (a)

            	
              nothing
      contained in this Sale and Purchase Agreement shall extinguish, limit or
      otherwise affect or be deemed to affect any obligation on the part of any
      insurer under any policy of insurance that provides cover to any member of
      the Seller Group, any Target Company, any Embedded NSC and/or any NSC
      Newco on or before the Completion
Date;

            

    

    

    
      
        
           

        

        
          73

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    
      	
               
      

            	
              (b)

            	
              any
      claim, request or demand under Clause 14 shall be reduced by the amount
      recovered by a member of the Seller Group under an Occurrence Based Policy
      that is applicable to such claim, request or demand, it being understood
      that the Buyer shall first pay to the member of the Seller Group the full
      amount of any claim successfully asserted against such member of the
      Seller Group for any Assumed Liability prior to receiving the benefit (if
      any) of such reduction.

            

    

    

    
      	
              20.

            	
              WRONG-POCKET
      PROVISIONS

            

    

    

    
      	
              20.1

            	
              If
      within twelve (12) months of Completion it becomes apparent that during
      the six (6) months prior to the date of this Sale and Purchase Agreement a
      Target Company used any asset which is owned by a member of the Seller
      Group and which:

            

    

    

    
      	
              20.1.1

            	
              is
      not the subject of a Separation
Agreement;

            

    

    

    
      	
              20.1.2

            	
              is
      not expressly contemplated not to be available to the Buyer or the Target
      Companies after Completion pursuant to the terms of this Sale and Purchase
      Agreement, the Disclosure Letter or any other Transaction Document;
      and

            

    

    

    
      	
              20.1.3

            	
              is
      required to enable Jaguar and/or Land Rover to operate after Completion in
      substantially the same manner as during the six (6) month period prior to
      Completion, the Seller shall in the case of an asset exclusively used by
      the Target Companies during the six (6) month period to the date of this
      Sale and Purchase Agreement, procure the transfer of all rights, title and
      interest of the Seller Group in such asset to such Target Company or as
      the Buyer may direct together with any Environmental Permits held by the
      Seller and relating to that asset.

            

    

    

    
      	
              20.2

            	
              If
      within twelve (12) months of Completion it becomes apparent that during
      the six (6) months prior to the date of this Sale and Purchase Agreement
      an asset which is owned by a Delayed NSC was used exclusively by a Target
      Company, the Seller shall as soon as reasonably practicable following the
      written request of the Buyer procure the transfer of all right, title and
      interest of the Delayed NSC in such asset to such Target Company or as the
      Buyer may direct together with any Environmental Permits held by the
      Delayed NSC and relating to that
asset.

            

    

    

    
      	
              20.3

            	
              If
      within twelve (12) months of Completion it becomes apparent that during
      the six (6) months prior to the date of this Sale and Purchase Agreement
      an asset was used exclusively by a Delayed NSC which is owned after
      Completion by a Target Company, the Seller shall as soon as reasonably
      practicable following the written request of the Buyer procure that the
      Delayed NSC takes such reasonable action as may be necessary to accept a
      transfer of all rights, title and interest of such Target Company in such
      asset to the Delayed NSC together with any Environmental Permits held by
      the Target Company and relating to that
asset.

            

    

    

    
      	
              20.4

            	
              If
      within twelve (12) months of Completion it becomes apparent that during
      the six (6) months prior to the date of this Sale and Purchase Agreement
      the relevant Delayed NSC used any asset which is owned by a member of the
      Seller Group and which:

            

    

    

    
      	
              20.4.1

            	
              is
      not the subject of a Separation
Agreement;

            

    

    

    
      
        
           

        

        
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                EXECUTION
      VERSION

              

      

       

    

    
      	
              20.4.2

            	
              is
      not expressly contemplated not to be available to the Buyer or the
      relevant Delayed NSC after Completion pursuant to the terms of this Sale
      and Purchase Agreement, the Disclosure Letter or any other Transaction
      Document; and

            

    

    

    
      	
              20.4.3

            	
              is
      required to enable Jaguar and/or Land Rover to operate after Completion in
      substantially the same manner as during the six (6) month period prior to
      Completion, the Seller shall in the case of an asset exclusively used by
      the relevant Delayed NSC during the six (6) month period to the date of
      this Sale and Purchase Agreement, procure the transfer of all rights,
      title and interest of the Seller Group in such asset to such Delayed NSC
      or as the Buyer may direct together with any Environmental Permits held by
      the Seller and relating to that
asset.

            

    

    

    
      	
              20.5

            	
              If
      within twelve (12) months of Completion it becomes apparent that during
      the six (6) months prior to this Sale and Purchase Agreement a member of
      the Seller Group used, other than in relation to Jaguar and/or Land Rover,
      an asset which is owned by a Target Company and
  which:

            

    

    

    
      	
              20.5.1

            	
              is
      not the subject of a Separation
Agreement;

            

    

    

    
      	
              20.5.2

            	
              is
      not expressly contemplated not to be available to the Seller Group after
      Completion pursuant to the terms of any Transaction Document;
      and

            

    

    

    
      	
              20.5.3

            	
              is
      required to enable the operation of any business carried on by the Seller
      Group after Completion in substantially the same manner in which it has
      been carried on in the six (6) month period prior to Completion, the Buyer
      shall in the case of an asset used exclusively by the Seller Group in
      relation to businesses other than Jaguar and/or Land Rover during the six
      (6) month period prior to the date of this Sale and Purchase Agreement,
      procure the transfer of all rights, title and interest of the Target
      Companies in such asset to such member of the Seller Group as the Seller
      may direct.

            

    

    

    
      	
              20.6

            	
              If
      within twelve (12) months of Completion it becomes apparent that during
      the six (6) months prior to Completion a member of the Seller Group used,
      other than in relation to Jaguar and/or Land Rover, an asset which is
      owned by a Delayed NSC and which:

            

    

    

    
      	
              20.6.1

            	
              is
      not the subject of a Separation
Agreement;

            

    

    

    
      	
              20.6.2

            	
              is
      not expressly contemplated not to be available to the Seller Group after
      Completion pursuant to the terms of any Transaction Documents;
      and

            

    

    

    
      	
              20.6.3

            	
              is
      required to enable the operation of any business carried on by the Seller
      Group after Completion in substantially the same manner in which it has
      been carried on in the six (6) month period prior to the date of this Sale
      and Purchase Agreement, the Buyer shall in the case of an asset used
      exclusively by the Seller Group in relation to businesses other than
      Jaguar and/or Land Rover during the six (6) month period prior to the date
      of this Sale and Purchase Agreement, procure the transfer of all rights,
      title and interest of the relevant Delayed NSC in such asset to such
      member of the Seller Group as the Seller may
  direct.

            

    

    

    
      	
              21.

            	
              RECORDS
      AND ASSISTANCE

            

    

    

    
      	
              21.1

            	
              For
      a period of seven (7) years following Completion, neither party shall
      dispose of or destroy any of the JLR Records in its possession or control
      without first giving the other at least one (1) month’s notice and the
      opportunity to review and (at its own cost) copy any of the relevant
      materials.

            

    

    

    
      
        
           

        

        
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                EXECUTION
      VERSION

              

      

       

    

    
      	
              21.2

            	
              Save
      to the extent such access is restricted by Law or the terms of any
      confidentiality agreement or such materials are subject to legal
      professional privilege, for a period of two (2) years following Completion
      the Buyer shall procure that on request the Seller shall be provided with
      such access (including the right to take copies at its own cost) to all
      JLR Records within the possession or control of any Target Company, NSC
      Newco (after the Buyer has acquired it) and Delayed NSC or any member of
      the Buyer’s Group and to its employees, offices and premises as may
      reasonably be required by any member of the Seller Group in connection
      with any financial, Tax or other report, return, statement, audit, filing
      or other requirement in each case under Law or in connection with any
      document that the Seller is required to prepare, or on which it is
      required or entitled to comment, under the Tax
  Deed.

            

    

    

    
      	
              21.3

            	
              Save
      to the extent such access is restricted by Law or the terms of any
      confidentiality agreement or such materials are subject to legal
      professional privilege and subject to any specific provisions contained in
      the Transaction Documents, for a period of two (2) years following
      Completion the Seller shall procure that on request the Buyer shall be
      provided with such access (including the right to take copies at its own
      cost) to all JLR Records within the possession or control of any member of
      the Seller Group and to its employees, offices and premises as may
      reasonably be required by the Buyer or its Affiliates (including for the
      avoidance of doubt any Target Company, NSC Newco or Delayed NSC) in
      connection with any financial, Tax or other report, return, statement,
      audit, filing or other requirement in each case under Law or in connection
      with any document that the Buyer is required to prepare, or on which it is
      required or entitled to comment, under the Tax Deed or, to the extent
      required for the purposes of preparing the Completion Statement and
      subject to the consent of the Seller (with such consent not to be
      unreasonably withheld or delayed), this Sale and Purchase
      Agreement.

            

    

    

    
      	
              21.4

            	
              The
      Buyer shall, and shall procure that each Target Company and/or each NSC
      Newco and/or each Delayed NSC shall, at the Seller’s sole expense and on
      reasonable notice at any time following Completion, give such assistance
      to any member of the Seller Group (including, without limitation, access
      to its employees, offices and premises and any JLR Records within its
      possession or control) as the Seller may reasonably request in relation to
      any proceedings by or against any member of the Seller
    Group.

            

    

    

    
      	
              22.

            	
              GUARANTEE

            

    

    

    
      	
              22.1

            	
              In
      consideration of the Seller entering into this Sale and Purchase
      Agreement, the Guarantor unconditionally and irrevocably guarantees to the
      Seller the due and punctual performance of all the obligations and
      Liabilities of the Buyer under or otherwise pursuant to the provisions of
      this Sale and Purchase Agreement (as any of such obligations and
      liabilities may from time to time be varied, extended, increased or
      replaced) that are to be satisfied, performed or discharged prior to or
      upon the Completion Date (the Guaranteed Obligations)
      and undertakes to keep the Seller fully indemnified against all
      Liabilities and Losses, which it may suffer or incur as result of any
      failure or delay by the Buyer in the performance of the Guaranteed
      Obligations.

            

    

    

    
      	
              22.2

            	
              If
      any Guaranteed Obligations is not or ceases to be valid or enforceable
      against the Buyer (in whole or in part) on any ground whatsoever
      (including, but not limited to, any defect in or want of powers of the
      Buyer or irregular exercise of such powers, or any lack of authority on
      the part of any person purporting to act on behalf of the Buyer, or any
      legal or other limitation, disability or incapacity, or any change in the
      constitution of, or any amalgamation or reconstruction of, or the
      liquidation, administration or insolvency of, the Buyer), the Guarantor
      shall nevertheless be liable to the Seller in respect of that purported
      obligation or liability as if the same were fully valid and enforceable
      and the Guarantor were the principal debtor in respect
      thereof.

            

    

    

    
      
        
           

        

        
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              22.3

            	
              The
      liability of the Guarantor under this guarantee shall not be discharged or
      affected in any way by:

            

    

    

    
      	
              22.3.1

            	
              the
      Seller compounding or entering into any compromise, settlement or
      arrangement with the Buyer, any co-guarantor or any other person;
      or

            

    

    

    
      	
              22.3.2

            	
              any
      variation, extension, increase, renewal, determination, release or
      replacement of this Sale and Purchase Agreement, whether or not made with
      the consent or knowledge of the Guarantor;
or

            

    

    

    
      	
              22.3.3

            	
              the
      Seller granting any time, indulgence, concession, relief, discharge or
      release to the Buyer, any co-guarantor or any other person or releasing,
      giving up, agreeing to any variation, renewal or replacement of,
      releasing, abstaining from or delaying in taking advantage of or otherwise
      dealing with any securities from or other rights or remedies which it may
      have against the Buyer, any co-guarantor or any other person;
      or

            

    

    

    
      	
              22.3.4

            	
              any
      other matter or thing which, but for this provision, might exonerate or
      affect the liability of the
Guarantor.

            

    

    

    
      	
              22.4

            	
              The
      Seller shall not be obliged to take any steps to enforce any rights or
      remedy against the Buyer or any other person before enforcing this
      guarantee.

            

    

    

    
      	
              22.5

            	
              This
      guarantee is in addition to any other security or right now or hereafter
      available to the Seller and is a continuing security notwithstanding any
      liquidation, administration, insolvency or other incapacity of the Buyer
      or the Guarantor.

            

    

    

    
      	
              22.6

            	
              Until
      the full and final discharge of the Guaranteed Obligations, the
      Guarantor:

            

    

    

    
      	
              22.6.1

            	
              waives
      all of its rights of subrogation, reimbursement and indemnity against the
      Buyer and all rights of contribution against any co-guarantor and agrees
      not to demand or accept any security from the Buyer or any co-guarantor in
      respect of any such rights and not to prove in competition with the Seller
      in the bankruptcy, liquidation or insolvency of the Buyer or any such
      co-guarantor; and

            

    

    

    
      	
              22.6.2

            	
              agrees
      that it will not claim or enforce payment (whether directly or by set-off,
      counterclaim or otherwise) of any amount which may be or has become due to
      the Guarantor by the Buyer, any co-guarantor or any other person liable to
      the Seller in respect of the obligations hereby guaranteed if and so long
      as the Buyer is in default under this Sale and Purchase
      Agreement.

            

    

    

    
      	
              22.7

            	
              If
      this guarantee is discharged or released in consequence of any performance
      by the Buyer of any Guaranteed Obligations which is set aside for any
      reason, this guarantee shall be automatically reinstated in respect of the
      relevant obligations. Subject only thereto, this guarantee shall for all
      purposes automatically terminate upon the performance and discharge of the
      Guaranteed Obligations on the Completion
Date.

            

    

    

    
      
        
           

        

        
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              23.

            	
              MISCELLANEOUS
      PROVISIONS

            

    

    

    
      	
              23.1

            	
              Further
      Assurance

            

    

    

    The
Seller shall after Completion execute or procure the execution of all such deeds
and documents and do all such things as the Buyer may reasonably require for
perfecting the transactions intended to be effected under or pursuant to this
Sale and Purchase Agreement or the Transaction Documents and for vesting in the
Buyer the full benefit of the Sale Shares and the JLR Assets including the
Goodwill attaching thereto.

    

    
      	
              23.2

            	
              Announcements

            

    

    

    
      	
              23.2.1

            	
              Except
      as provided in Clause 23.2.2, no party may make or send a public
      announcement, communication or circular concerning this Sale and Purchase
      Agreement or the Proposed Transaction unless it has first obtained the
      other parties’ written consent (not to be unreasonably withheld,
      conditioned or delayed).

            

    

    

    
      	
              23.2.2

            	
              The
      restrictions in Clause 23.2.1 shall not apply to a public announcement,
      communication or circular which is required by any Law or pursuant to an
      order of any court of competent jurisdiction provided that the party
      subject to such obligation shall (unless legally prevented from doing so)
      consult with the other as to timing and
content.

            

    

    

    
      	
              23.3

            	
              Confidentiality

            

    

    

    
      	
              23.3.1

            	
              Subject
      to Clause 23.3.2, each party shall treat as confidential all information
      received or obtained as a result of negotiating, entering into or
      performing this Sale and Purchase Agreement (including the Disclosure
      Letter) which memorializes or relates
to:

            

    

    

    
      	
               
      

            	
              (a)

            	
              the
      provisions of this Sale and Purchase Agreement, the Disclosure Letter or
      any other Transaction Documents;

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      negotiations relating to this Sale and Purchase Agreement, the Disclosure
      Letter and the other Transaction
Documents;

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      business, financial or other affairs (including future plans and targets)
      of any other party to this Sale and Purchase Agreement or other
      Transaction Documents,

            

    

    

    (Confidential Information) and
shall use its reasonable endeavours to prevent the unauthorised use or
disclosure of such Confidential Information.

    

    
      	
              23.3.2

            	
              The
      provisions of this Clause shall not apply
to:

            

    

    

    
      	
               
      

            	
              (a)

            	
              any
      Confidential Information in the public domain otherwise than by breach of
      this Sale and Purchase Agreement or of
Law;

            

    

    

    
      	
               
      

            	
              (b)

            	
              Confidential
      Information in the possession of either the Seller or the Buyer (as the
      case may be) before such Confidential Information was disclosed to it by
      or on behalf of the other and which was not obtained under any obligation
      of confidentiality; or

            

    

    

    
      	
               
      

            	
              (c)

            	
              Confidential
      Information obtained from a third party who is free to disclose it, and
      which is not obtained under any obligation of
    confidentiality.

            

    

    

    
      	
              23.3.3

            	
              Either
      party shall be entitled to disclose Confidential Information without the
      consent of the other, to the extent required by Law or pursuant to an
      order of any court of competent jurisdiction provided that the party
      subject to the disclosure obligation shall first have consulted and taken
      into account the reasonable requirements of the other unless legally
      prevented from doing so.

            

    

    

    
      
        
           

        

        
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                EXECUTION
      VERSION

              

      

       

    

    
      	
              23.3.4

            	
              Notwithstanding
      anything in this Sale and Purchase Agreement to the contrary, any party
      (and each employee, representative, or other agent of such party) may
      disclose to any and all persons, without limitation of any kind, the Tax
      treatment and Tax structure of the transaction pursuant to this Sale and
      Purchase Agreement and all materials of any kind (including opinions and
      other Tax analyses) that are provided to such party relating to such Tax
      treatment and Tax structure.

            

    

    

    
      	
              23.3.5

            	
              Notwithstanding
      anything in this Sale and Purchase Agreement to the contrary, the Buyer
      may disclose, with the consent of the Seller (such consent not to be
      unreasonably withheld or delayed) the contents of this Sale and Purchase
      Agreement, the Disclosure Letter and the Transaction Documents insofar as
      is reasonably required to enable the Buyer to negotiate and agree third
      party financing arrangements including, but not limited to, vehicle
      financing, accessories financing, consumer financing and acquisition
      financing provided that the Buyer shall procure that all such third
      parties comply with the same obligations of confidentiality as the Buyer
      under this Sale and Purchase
Agreement.

            

    

    

    
      	
              23.3.6

            	
              The
      restrictions contained in this Clause 23.3 shall continue to apply after
      the date of this Sale and Purchase Agreement without limit in
      time.

            

    

    

    
      	
              23.3.7

            	
              The
      Seller hereby assigns, with effect from Completion, to the Buyer the
      benefit of the confidentiality agreement and undertakings given by any
      other potential buyer of the Sale Shares and JLR Assets to the extent that
      such provisions apply to information relating to Jaguar and/or Land Rover
      and to the extent assignment is not prevented by the terms of such
      confidentiality agreements.

            

    

    

    
      	
              23.3.8

            	
              The
      Seller shall (and shall procure that each other member of the Seller Group
      shall) for a period of twenty-four (24) months from the date of this Sale
      and Purchase Agreement undertake reasonable endeavours consistent with the
      Seller Group’s policies regarding confidential information of the Seller
      Group to treat as confidential all information in existence on or prior to
      Completion in respect of Jaguar and/or Land Rover and/or the JLR Assets to
      the extent that such information is of a kind which the Seller has prior
      to the date of this Sale and Purchase Agreement treated as confidential
      (including, without limitation, those business and commercial secrets
      which the Seller has prior to the date of this Sale and Purchase Agreement
      treated as confidential), save to the extent required by
    Law.

            

    

    

    
      	
              23.4

            	
              Termination
      of Arrangements

            

    

    

    
      	
              23.4.1

            	
              The
      Buyer and the Seller shall procure that, save as provided in this Sale and
      Purchase Agreement or any of the Transaction Documents, all contracts,
      agreements, courses of dealing, business practices and arrangements in
      place between any member of the Seller Group and any Target Company prior
      to Completion, other than the Surviving Contracts, shall terminate with
      effect from Completion without cost or Liability to any Target
      Company.

            

    

    

    
      	
              23.4.2

            	
              The
      Buyer shall procure that, save in relation to Intra-Group Trade
      Receivables or rights or Liabilities arising under this Sale and Purchase
      Agreement or any of the Transaction Documents, following Completion
      neither the Buyer, any member of the Buyer’s Group, any Target Company nor
      any NSC Newco shall make any claim against any member of the Seller Group
      in respect of any matter or event which occurred prior to Completion and
      the Seller shall procure that, save in relation to Intra-Group Trade
      Payables or rights or Liabilities arising under this Sale and Purchase
      Agreement or any of the Transaction Documents, following Completion no
      member of the Seller Group shall make any claim against any Target Company
      in respect to any matter or event which occurred prior to
      Completion.

            

    

    

    
      
        
           

        

        
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                EXECUTION
      VERSION

              

      

       

    

    
      	
              23.4.3

            	
              Nothing
      in this Clause 23.4 shall prevent any Claim being made by or against any
      member of the Seller Group or the Buyer’s Group or any Target Company in
      respect of any matter or event which occurred prior to Completion in the
      event of fraud.

            

    

    

    
      	
              23.4.4

            	
              For
      the avoidance of doubt, nothing in this Sale and Purchase Agreement shall
      terminate or modify in any respect any agreements between the Seller and
      Peugeot Citroen Automobiles SA relating to engine supply or between any
      Target Company and Getrag Ford Transmissions GmbH relating to the supply
      of transmissions.

            

    

    

    
      	
              23.5

            	
              Late
      Payments and Default Interest

            

    

    

    If any
party fails to pay any amount payable by it under this Sale and Purchase
Agreement, it shall immediately on demand by the party to whom the payment was
due to be made, pay interest on the overdue amount from the due date up to the
date of actual payment, after as well as before judgment, at a rate equal to
LIBOR plus one hundred (100) basis points.  Such interest shall accrue
on a daily basis.  The interest rate shall be calculated based on the
six-month LIBOR rate for GBP published on the Reuters screen at 11.00am London
time on the first Business Day of the relevant interest period plus one hundred
(100) basis points.  The amount of interest payable by the defaulting
party shall be calculated as follows:

    

    
      	
               
      

            	
              (a)

            	
              the
      annualised interest rate multiplied by the outstanding principal amount
      due;

            

    

    

    
      	
               
      

            	
              (b)

            	
              which
      shall then be divided by 365
(days/year);

            

    

    

    
      	
               
      

            	
              (c)

            	
              which
      shall then be multiplied by the number of calendar days outstanding from
      the due date of payment.

            

    

    

    
      	
              23.6

            	
              Assignment

            

    

    

    
      	
              23.6.1

            	
              Each
      party is entering into this Sale and Purchase Agreement for its own
      benefit and not for the benefit of another
  person.

            

    

    

    
      	
              23.6.2

            	
              The
      Buyer shall not be entitled to assign, transfer, create any Encumbrance in
      or over, or deal in any other manner (or purport to do any of these
      things) with this Sale and Purchase Agreement or a right or obligation
      under this Sale and Purchase Agreement without having first obtained the
      written consent of the Seller save that the Buyer (but not for the
      avoidance of doubt any such assignee) may assign any of its rights and
      interests under this Sale and Purchase Agreement by way of security to any
      lender in connection with the financing or re-financing of the Proposed
      Transaction or any financing to be used in connection with the business of
      Jaguar and/or Land Rover provided that such assignment shall be on terms
      that it shall not result in any increased Liability, or any reduction in
      the rights, of the Seller or any member of the Seller Group and, without
      prejudice to the generality thereof, each such party shall continue
      following assignment to have all such rights of set-off and counter-claim
      against the assignee that would be available to it against the
      Buyer.

            

    

    

    
      	
              23.6.3

            	
              If
      the Buyer purports to assign, transfer, create any Encumbrance in or over,
      or deal in any other manner (or purport to do any of these things) with
      this Sale and Purchase Agreement or a right or obligation under this Sale
      and Purchase Agreement in breach of Clause 23.6.2, then the Buyer agrees
      that no trust (constructive or otherwise) shall arise as a consequence and
      the assignor shall not be deemed to hold the benefit of this Sale and
      Purchase Agreement, or any right under this Sale and Purchase Agreement,
      for the purported assignee, transferee or any other person as a
      result.

            

    

    

    
      
        
           

        

        
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                EXECUTION
      VERSION

              

      

       

    

    
      	
              23.6.4

            	
              This
      Sale and Purchase Agreement shall be binding upon, and enure to the
      benefit of the parties and their respective successors and their permitted
      assignees.  Subject to and upon any succession or assignment
      permitted by this Sale and Purchase Agreement, any successor or permitted
      assignee shall in its own right be able to enforce any term of this Sale
      and Purchase Agreement in accordance with its terms as if it were in all
      respects a party, but until such time, any such successor or permitted
      assignee shall have no rights whether as a third party or
      otherwise.

            

    

    

    
      	
              23.7

            	
              Costs

            

    

    

    Except
where this Sale and Purchase Agreement or any document referred to in it
provides otherwise, each party shall pay its own costs relating to the
negotiation, preparation, execution and implementation by it of this Sale and
Purchase Agreement and of each document referred to in it.

    

    
      	
              23.8

            	
              Value
      Added Tax

            

    

    

    
      	
              23.8.1

            	
              In
      this Sale and Purchase Agreement, except as otherwise provided, the amount
      of any payment for a supply of goods or services or the value of any
      supply made or deemed to be made by the Seller (or a member of the Seller
      Group) to the Buyer (or a member of the Buyer’s Group), or vice versa,
      pursuant to this Sale and Purchase Agreement shall be taken to be
      exclusive of VAT properly chargeable on the supply and the amount of such
      VAT shall be paid, subject to Clause 23.8.11, within five (5) Business
      Days following the time the supply is made or a proper VAT invoice is
      issued, whichever is the later.

            

    

    

    
      	
              23.8.2

            	
              The
      Buyer and the Seller intend that the sale of the Halewood Plant or the
      Halewood Properties, or the supply of the Embedded NSCs (whether to a NSC
      Newco, a Target Company or any member of the Buyer’s Group) shall,
      wherever possible, take effect as a going concern and agree to use all
      reasonable endeavours to ensure that any applicable conditions are
      fulfilled so that each such transfer is treated neither as a supply of
      goods nor a supply of services for the purpose of VAT where the
      jurisdiction in which the relevant assets are located has given effect to
      Article 19 of the EC Council Directive 2006/112/EC on the common system of
      value added tax or to ensure that any similar or analogous Tax neutral
      treatment or Relief is obtained in any other relevant jurisdiction (a
      TOGC).

            

    

    

    
      	
              23.8.3

            	
              If,
      notwithstanding Clause 23.8.2, VAT is chargeable in respect of the sale of
      the Halewood Plant or all or part of the Halewood Properties, or the
      supply of the Embedded NSC to any Target Company after Completion or to
      the Buyer (for the purposes of this Clause 23.8, the Relevant Supplies), the
      Buyer shall within five (5) Business Days following the date on which the
      Seller notifies the Buyer that VAT is so chargeable and issues to the
      Buyer a proper VAT invoice in respect thereof, pay or procure payment by
      the relevant transferee to the Seller the amount of any VAT in addition to
      the relevant part of the consideration attributed to such Relevant
      Supply.

            

    

    

    
      	
              23.8.4

            	
              The
      Buyer shall indemnify the Seller for any interest and penalties imposed by
      any Tax Authority arising out of the treatment by the Seller and the Buyer
      of the Relevant Supplies as a TOGC, provided that the Buyer shall not be
      required to indemnify the Seller to the extent that any such interest or
      penalties arise wholly as a result
of:

            

    

    

    
      
        
           

        

        
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                EXECUTION
      VERSION

              

      

       

    

    
      	
               
      

            	
              (a)

            	
              the
      Seller failing to comply with its obligations under Clause
      23.8.2;

            

    

    

    
      	
               
      

            	
              (b)

            	
              a
      breach by the Seller of any of the warranties at Clause 23.8.6;
      or

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      voluntary act or omission of the Seller (excluding the making of the
      supply itself) which could reasonably have been avoided provided that an
      act or omission:

            

    

    

    
      	
               
      

            	
              (i)

            	
              required
      by Law;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              carried
      out in the ordinary course of business of the Seller consistent with past
      practice;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              carried
      out pursuant to the written request or with the written approval of the
      Buyer; or

            

    

    

    
      	
               
      

            	
              (iv)

            	
              whereby
      the Seller discloses to a Tax Authority that the transfer has been or will
      be treated as a TOGC,

            

    

    

    shall not
constitute a voluntary act or omission for the purposes of this sub-clause
(c),

    

    and
provided that this Clause 23.8.4 shall not apply where there is no provision in
the jurisdiction in question for the supply of assets to be treated as a
TOGC.

    

    
      	
              23.8.5

            	
              With
      a view to procuring that the relevant Supplies shall take effect as a
      TOGC, the Buyer:

            

    

    

    
      	
               
      

            	
              (a)

            	
              shall
      ensure that, not later than the date on which the Relevant Supply is made,
      the entity receiving the Relevant Supply or Relevant Supplies is
      registered for VAT in:

            

    

    

    
      	
               
      

            	
              (i)

            	
              the
      UK, in the case of the supply of the Halewood Properties and the Halewood
      Plant; and

            

    

    

    
      	
               
      

            	
              (ii)

            	
              the
      jurisdiction in which the Embedded NSC is located (being the jurisdiction
      specified in Part 2 of Schedule 8 against the relevant Embedded NSC),
      provided that the Buyer shall only be obliged to ensure registration in
      accordance with this sub-clause where such registration is a necessary
      condition for obtaining TOGC
treatment;

            

    

    

    
      	
               
      

            	
              (b)

            	
              warrants
      that the assets that are the subject of the Relevant Supplies are intended
      to be used by the Buyer or the relevant Target Company or member of the
      Buyer’s Group (from the date that such assets are acquired) in carrying on
      the same kind of business as that carried on by the Seller or relevant
      member of the Seller’s Group (as appropriate);
  and

            

    

    

    
      	
               
      

            	
              (c)

            	
              in
      respect of the Halewood Properties:

            

    

    

    
      	
               
      

            	
              (i)

            	
              warrants
      that Jaguar Cars Limited or the group for VAT purposes (if any) of which
      Jaguar Cars Limited may form part from Completion, will have put in place
      an election to waive exemption in relation to that part of the Halewood
      Properties described as the Supply Park (as more
      fully described in the Disclosure Letter) under paragraph 2 of Schedule 10
      to VATA 1994 with effect from no later than
  Completion;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              warrants
      that written notification of the election given under Sub-clause (i) will
      before Completion have been provided to
HMRC;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              shall,
      on or before Completion, give to the Seller a copy of such written
      notification as is mentioned under sub-clause
  (ii);

            

    

    

    
      
        
           

        

        
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                EXECUTION
      VERSION

              

      

       

    

    
      	
               
      

            	
              (iv)

            	
              acknowledges
      that, if the Buyer shall not have given to the Seller a copy of the
      written notification in accordance with (iii), then the Seller shall
      assume that notification of an election made in accordance with sub-clause
      (i) has not been given in accordance with sub-clause (ii) and,
      notwithstanding Clause 23.8.2, the Buyer shall in accordance with Clause
      23.8.1 pay VAT in addition to that part of the Halewood Site Consideration
      that relates to the Supply Park, provided
that:

            

    

    

    
      	
               
      

            	
              (1)

            	
              the
      parties acknowledge that value of the Supply Park is not a material part
      of the value of Halewood Site Consideration;
and

            

    

    

    
      	
               
      

            	
              (2)

            	
              in
      the event that VAT is charged in respect of the transfer of the Supply
      Park, and HMRC later accept that this transfer was a TOGC, the Seller
      shall use all reasonable endeavours or shall procure that all reasonable
      endeavours are used to obtain a refund from HMRC of the VAT so charged,
      and shall pay to the Buyer (for and on behalf of Jaguar Cars Limited) the
      amount of any refund of VAT credit received from HMRC less any reasonable
      costs and expenses of the Seller or relevant member of the Seller Group;
      and

            

    

    

    
      	
               
      

            	
              (v)

            	
              acknowledges
      that it has received from the Seller a copy of the written notification of
      the election made in respect of the Supply Park given by the Seller to
      HMRC in accordance with paragraph 3 of Schedule 10 to VATA 1994 together
      with a copy of the acknowledgement received by the Seller from HMRC
      confirming receipt of such
notification.

            

    

    

    
      	
              23.8.6

            	
              With
      a view to procuring that the relevant Supplies shall take effect as a
      TOGC, the Seller:

            

    

    

    
      	
               
      

            	
              (a)

            	
              warrants
      that the Warranty at Paragraph 19.8.5 of Schedule 4 remains true as at
      Completion, and that no disclosure has been made against this Warranty,
      other than the provision of details as to the extent of the area described
      as the Supply Park;

            

    

    

    
      	
               
      

            	
              (b)

            	
              warrants
      that the copy of the written notification of the election made in respect
      of the Supply Park given by the Seller to HMRC in accordance with
      paragraph 3 of Schedule 10 to VATA 1994, as supplied to the Buyer and
      acknowledged at Clause 23.8.5(c)(v) above, is the election in respect of
      the Supply Park, as referred to the Warranty at Paragraph 19.8.5 of
      Schedule 4;

            

    

    

    
      	
               
      

            	
              (c)

            	
              warrants
      that it accurately disclosed to HMRC in the correspondence sent to HMRC as
      disclosed to the Buyer (being the letters dated 31 January 2008 and 15
      February 2008) and any other related discussions with HMRC all matters
      relevant to the treatment as a TOGC of the transfers of the Halewood
      Properties and the Halewood Plant provided that the Seller’s warranty so
      far as it relates to the accuracy of statements made in respect of the
      Buyer’s intention is made to the best of the Seller’s
      knowledge;

            

    

    

    
      	
               
      

            	
              (d)

            	
              shall
      or shall procure that within thirty (30) days of Completion written notice
      is given to HMRC of the sale of the Halewood Properties and Halewood Plant
      and that such sale has been treated as a
TOGC;

            

    

    

    
      	
               
      

            	
              (e)

            	
              shall,
      where the transfer of an Embedded NSC is treated as a TOGC, give within
      thirty (30) days of completion of the sale of any Embedded NSC to a Target
      Company, NSC Newco or member of the Buyer’s Group, written notice to the
      relevant Tax Authority of its sale of Embedded NSC and that such sale has
      been treated as a TOGC, or shall procure that such notice shall be given;
      and

            

    

    

    
      	
               
      

            	
              (f)

            	
              shall,
      in relation to the Halewood Properties and the Halewood
    Plant:

            

    

    

    
      
        
           

        

        
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              (i)

            	
              preserve
      or procure the preservation of the records referred to in section 49 of
      VATA 1994 for such period as may be required by law and during that period
      to permit the Buyer, Jaguar Cars Limited or their agents during reasonable
      hours on Business Days to inspect such records and make copies of them;
      and

            

    

    

    
      	
               
      

            	
              (ii)

            	
              not
      cease to retain such records without first giving the Buyer or Jaguar Cars
      Limited a reasonable opportunity to inspect and remove such of them as the
      Buyer or Jaguar Cars Limited
wishes.

            

    

    

    
      	
              23.8.7

            	
              The
      Buyer and the Seller acknowledge that the Halewood Transfers contain a
      notification from Jaguar Cars Limited to the transferor of the Halewood
      Properties that paragraph 5(2B) of the Value Added Tax (Special
      Provisions) Order 1995 does not apply to Jaguar Cars
    Limited.

            

    

    

    
      	
              23.8.8

            	
              The
      Seller and the Buyer intend that, following the transfer of any Embedded
      NSC to a Target Company, NSC Newco or to the Buyer or to a member of the
      Buyer’s Group, the Buyer shall, to the maximum extent permitted by Law,
      maintain or procure the maintenance by a Target Company, NSC Newco or
      member of the Buyer’s Group of proper VAT records in respect of such
      Embedded NSC and accordingly:

            

    

    

    
      	
               
      

            	
              (a)

            	
              the
      Seller shall, to the extent permitted by Law, deliver to the Buyer on the
      transfer of such Embedded NSC all records relating to VAT with regard to
      such Embedded NSC;

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      Seller shall not make any request to any Tax Authority for such records to
      be preserved by the Seller rather than the
  Buyer;

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      Buyer shall, to the extent that records are transferred to the Buyer,
      preserve or procure the preservation of such records in the jurisdiction
      in which the relevant Embedded NSC is situated for such period as may be
      required by law and during that period permit the Seller reasonable access
      to them to inspect or make copies of them, provided that the Seller shall
      only be entitled to access to records relating to any period commencing
      before Completion;

            

    

    

    
      	
               
      

            	
              (d)

            	
              the
      Buyer shall not cease to retain such records without first giving the
      Seller a reasonable opportunity to inspect and remove such of them as the
      Seller wishes;

            

    

    

    
      	
               
      

            	
              (e)

            	
              the
      Seller (or any person for the time being nominated under this sub-clause
      (e)) may by written notice to the Buyer nominate another person for the
      purpose of sub-clause (d), in which case the reference in that sub-clause
      to the Seller shall be read as a reference to the person nominated;
      and

            

    

    

    
      	
               
      

            	
              (f)

            	
              where
      records are required by law to be retained by the Seller and are in fact
      so retained, sub-clauses (c), (d) and (e) shall apply but with the phrase
      “to the extent that records are transferred to the Buyer” replaced by “to
      the extent that records are not transferred to the Buyer” and the
      references to “Seller” replaced by “Buyer” and the references, other than
      that in the phrase set out in this Sub-clause, to “Buyer” replaced by
      “Seller”.

            

    

    

    
      	
              23.8.9

            	
              Except
      to the extent that this Sale and Purchase Agreement provides otherwise, if
      one party (Party
      A) is required by the terms of this Sale and Purchase Agreement to
      reimburse the other party (Party B) for any cost or
      expense, Party A shall reimburse Party B for the full amount of such cost
      or expense, including any part of it which represents amounts in respect
      of VAT, save to the extent that Party B (or its Affiliate) is entitled to
      credit or repayment in respect of that VAT from any Tax
      Authority.

            

    

    

    
      
        
           

        

        
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              23.8.10

            	
              Without
      prejudice to the rights of the parties under this Sale and Purchase
      Agreement or any of the other Transaction Documents, the Buyer and the
      Seller acknowledge that their understanding is that the IP Consideration
      is to be paid for and on behalf of UK resident Target Companies to a US
      resident entity or entities in respect of Intellectual Property Rights
      held by those US resident entity or entities, and that therefore no UK VAT
      should be charged by the Seller or the Seller Group in addition to the IP
      Consideration by the transferor of such Intellectual Property
      Rights.  If and to the extent that, in respect of the IP
      Consideration, any VAT is required to be paid under the “reverse charge”
      mechanism provided for by section 8 of VATA 1994 or any analogous
      provision of the Laws of any jurisdiction, the Buyer shall, at the Buyer’s
      expense, comply or procure compliance with any such requirement and the
      Buyer acknowledges that no VAT so chargeable shall give rise to any
      liability of the Seller under any of the Transaction Documents, provided
      that this Clause 23.8.10 shall in no way limit any claim that the Buyer
      may have under the Warranties or the Tax
Deed.

            

    

    

    
      	
              23.8.11

            	
              If
      the Seller or any member of the Seller’s Group determine that they should
      properly and correctly charge VAT in respect of any supplies made by the
      Seller (or any member of the Seller Group) made at or immediately
      following Completion under or pursuant to this Sale and Purchase Agreement
      including, but not limited, the supply of Intellectual Property Rights
      (for the purposes of this Clause 23.8.11 only, the Completion Supplies)
      then:

            

    

    

    
      	
               
      

            	
              (a)

            	
              the
      Seller shall use all reasonable endeavours to notify the Buyer in writing
      at least ten (10) Business Days before Completion that VAT will be charged
      in respect of any Completion Supplies, such notification to include a
      breakdown of which Completion Supplies in respect of which the Seller or a
      member of the Seller Group intends to charge VAT and the amount of VAT
      that the Seller or a member of the Seller Group intends to charge;
      and

            

    

    

    
      	
               
      

            	
              (b)

            	
              if
      the Seller’s notification (in the form described in (a) above) is given
      less than ten (10) Business Days before Completion, Clause 23.8.1 shall be
      amended so that “five (5)” is substituted by “five (5) plus x”, in respect
      of Completion Supplies only.  For these purposes “x” shall be a
      number equal to 10 less the number of Business Days’ notice prior to
      Completion actually given to the Buyer, and if no such notification is
      given before Completion x shall be ten (10);
and

            

    

    

    
      	
               
      

            	
              (c)

            	
              in
      each case, the parties shall co-operate and discuss in good faith in order
      to identify that part of the payment given for the Completion Supplies
      that should be allocated to those Completion Supplies in respect of which
      VAT is due.

            

    

    

    
      	
              23.8.12

            	
              Without
      prejudice to the generality of Clause 5.2, the Seller shall, between the
      date of this Sale and Purchase Agreement and Completion, provide in a
      timely manner the Buyer with such information as is reasonably requested
      in writing in relation to:

            

    

    

    
      	
               
      

            	
              (a)

            	
              the
      ongoing efforts to register various Target Companies for VAT in various
      jurisdictions, as detailed in the Data Room and the Disclosure
      Letter;

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      ability of each Target Company to recover VAT input tax (on the assumption
      that the Target Companies were not members of a group for VAT
      purposes);

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      application of the provisions of Part XV Value Added Tax Regulations 1995
      (the Capital Goods Scheme) to any assets held at Completion by any Target
      Company, and to the Halewood Properties;
and

            

    

    

    
      
        
           

        

        
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              (d)

            	
              the
      VAT registration status (including confirmation of whether part of a VAT
      group) of each Target Company,

            

    

    

    in each
case so as to facilitate the Buyer in its VAT planning for the period from
Completion, and, for the avoidance of doubt, nothing contained in this Clause
23.8.11 shall give the Buyer, directly or indirectly, rights to control or
direct the operations of the Target Companies prior to Completion.

    

    
      	
            	
              23.8.13

            	
              If
      VAT is paid in respect of the payment for any supply of goods or services
      made or deemed to be made by the Seller (or a member of the Seller Group)
      to the Buyer (or a member of the Buyer’s Group), or vice versa, under this
      Sale and Purchase Agreement, and the relevant Tax Authority later accepts
      that no VAT was due in respect of such supply, the Seller (in the case of
      a supply made by the Seller or member of the Seller Group) or the Buyer
      (in the case of a supply made by the Buyer or member of the Buyer’s Group)
      shall and shall procure that all reasonable endeavours are used to obtain
      a refund or credit from the relevant Tax Authority of or for the VAT in
      question, and shall pay or procure the payment of any resulting VAT refund
      or an amount equal to any resulting VAT credit (less the reasonable costs
      and expenses of the recovering party) to that other party within five (5)
      Business Days of receipt of such VAT refund or VAT
  credit.

            

    

    

    
      	
              23.9

            	
              Deductions
      from Payments

            

    

    

    
      	
            	
              23.9.1

            	
              Except
      to the extent otherwise set out in this Sale and Purchase Agreement, any
      payment to be made by any party (including for these purposes any member
      of the Seller Group, Target Company, NSC Newco or member of the Buyer’s
      Group) under this Sale and Purchase Agreement (the Payer) to any other
      party to this Sale and Purchase Agreement, member of the Seller Group,
      Target Company, NSC Newco or member of the Buyer’s Group (the Payee) shall be made in
      full without any set-off, restriction or condition (whether for or on
      account of any counterclaim or otherwise) and without, and free and clear
      of, any deduction or withholding whatsoever (save only as required by
      Law).

            

    

    

    
      	
            	
              23.9.2

            	
              If
      a Payer makes a deduction or withholding required by Law from a payment
      under this Sale and Purchase Agreement (other than the payment of the
      Purchase Price or interest or any payment made by the Buyer, a member of
      the Buyer’s Group or any Target Company or NSC Newco for the acquisition
      of shares or assets from the Seller or a member of the Seller Group,
      including but not limited to the IP Consideration, the Halewood Plant
      Consideration, the Halewood Site Consideration and the Halewood Sports and
      Social Club Consideration), the sum due from the Payer shall be increased
      to the extent necessary to ensure that, after the making of any such
      deduction or withholding, the Payee receives a sum equal to the sum it
      would have received had no deduction or withholding been
    made.

            

    

    

    
      	
            	
              23.9.3

            	
              If
      a payment under this Sale and Purchase Agreement (other than the payment
      of the Purchase Price or interest or any payment made by the Buyer, a
      member of the Buyer’s Group or any Target Company or NSC Newco for the
      acquisition of shares or assets from the Seller or a member of the Seller
      Group, including but not limited to the IP Consideration, the Halewood
      Plant Consideration, the Halewood Site Consideration and the Halewood
      Sports and Social Club Consideration) is subject to Tax in the hands of
      the Payee or would have been subject to Tax but for the utilisation of a
      Relief then, subject to Clause 23.9.4, the sum due shall be increased to
      the extent necessary to ensure that after payment of the Tax the Payee
      receives and retains a net sum equal to the sum it would have received had
      the payment not been subject to
Tax.

            

    

    

    
      
        
           

        

        
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              23.9.4

            	
              The
      Seller shall have no liability to increase any payment under this Sale and
      Purchase Agreement under Clause 23.9.3 to the extent that any Tax in the
      hands of the Payee may be extinguished, satisfied, eliminated or mitigated
      by the Buyer, any Target Company, or any NSC Newco, whether by way of
      Group Relief or otherwise, as the result of the utilisation of any
      Seller’s Relief.

            

    

    

    
      	
              23.9.5

            	
              At
      the Seller’s written direction, the Buyer shall procure that each Target
      Company, NSC Newco and member of the Buyer’s Group shall take all such
      steps as are reasonably necessary to utilise any Seller’s Relief including
      effecting any capital allowances claim (by way of use of the Covenantor’s
      Pool (as defined in the Tax Deed) in accordance with clause 8.21 of the
      Tax Deed) for Group Relief purposes in accordance with Clause
      23.9.4.

            

    

    

    
      	
              23.9.6

            	
              If
      any deduction or withholding is required by Law as referred to in Clause
      23.9.1, the Payer shall:

            

    

    

    
      	
               
      

            	
              (a)

            	
              make
      such deduction or withholding; and

            

    

    

    
      	
               
      

            	
              (b)

            	
              pay
      the full amount deducted or withheld to the relevant Tax Authority, in
      accordance with Law,

            

    

    

    and it is
acknowledged, for the avoidance of doubt, that where there is a deduction or
withholding required by Law from a payment under this Sale and Purchase
Agreement and no increased payment is required under Clause 23.9.2, the Payee
shall be deemed to have received the gross amount (before any such deduction or
withholding).

    

    
      	
              23.9.7

            	
              If,
      at any time after any increased payment is made as a consequence of the
      application of Clause 23.9.2 or 23.9.3‎ or, the
      Payee receives or is granted credit against, refund of, or remission from
      any Tax payable but which it would not otherwise have received or been
      granted, the Payee shall to the extent that it can do so without
      prejudicing the retention of the amount of such credit or remission,
      reimburse the Payer such amount as, acting reasonably, the Payee
      determines will leave it in no worse a position than it would have been in
      had the circumstances giving rise to the increased payment not in fact
      arisen.  Such reimbursement shall be made not later than ten
      (10) Business Days after the Payee receives or is granted such
      credit.

            

    

    

    
      	
              23.9.8

            	
              If
      the Payee’s right to receive any amount subject to any deduction or
      withholding under Clause 23.9.2 or to any Tax in the hands of the Payee
      under Clause 23.9.3‎ has been assigned
      to it or novated then the liability of the Payer under Clauses
      ‎23.9.2 and
      ‎23.9.3‎ shall be
      limited to the amount (if any) for which it would have been liable in the
      absence of such assignment or
novation.

            

    

    

    
      	
              23.9.9

            	
              For
      the avoidance of doubt nothing in this Clause 23.9 shall cause the Payer
      in any event to be required to increase any payment by an amount greater
      than that which would result in the Payee receiving an amount equal to
      that which it would have received had no withholding or deduction (in the
      case of an increase under Clause 23.9.2) or Tax in the hands of the Payee
      (in the case of an increase under Clause 23.9.3‎) been
      suffered.

            

    

    

    
      	
              23.9.10

            	
              The
      Seller warrants and represents to the Buyer that each of the United
      Kingdom Patents to be assigned to or licensed to Jaguar Cars Limited
      and/or Land Rover UK pursuant to the Intellectual Property Agreements and
      on payment of the IP Consideration is beneficially owned by a UK Seller or
      a Treaty Seller, and that the part of the IP Consideration properly
      attributable to such United Kingdom Patents will be owned beneficially by
      such UK Seller or Treaty Seller, as
appropriate.

            

    

    

    
      
        
           

        

        
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              23.9.11

            	
              The
      Buyer acknowledges that, in reliance on the representation given by the
      Seller in Clause 23.9.10, it believes that section 911(1)(c) of the Income
      Tax Act 2007 applies in relation to the Treaty Sellers and, accordingly,
      pursuant to section 911(2) of the Income Tax Act 2007, save to the extent
      required:

            

    

    

    
      	
               
      

            	
              (a)

            	
              pursuant
      to any change in law (whether in the form of statute, case law, guidance
      or interpretation by a Tax Authority or otherwise) coming into effect on
      or before payment of the IP Consideration;
or

            

    

    

    
      	
               
      

            	
              (b)

            	
              under
      any notice issued by HMRC under section 912 of the Income Tax Act 2007;
      or

            

    

    

    
      	
               
      

            	
              (c)

            	
              as
      a result of the Buyer on or before payment of the IP Consideration forming
      the reasonable belief that the representation at Clause 23.9.10 is in
      whole or part incorrect,

            

    

    

    the Buyer
shall (for and on behalf of the relevant Target Company, in accordance with the
terms of this Sale and Purchase Agreement) or shall procure that such part of
the IP Consideration as is required to be paid as is properly attributable to
the United Kingdom Patents, is paid without any withholding or deduction under
section 910 Income Taxes Act 2007 whatsoever.

    

    
      	
              23.9.12

            	
              The
      Seller shall indemnify the Buyer against any liability for Tax of the
      Buyer arising as a result of HMRC determining that section 910 of the
      Income Tax Act 2007 applied in respect of all or part of payment the IP
      Consideration (including, but not limited to, by virtue of the operation
      of section 911(3) of the Income Tax Act 2007). Notwithstanding any other
      provisions of this Sale and Purchase Agreement, any payment made under
      this Clause 23.9.12 or the indemnity at Clause 23.9.13(b) shall not be
      subject to any financial limitations (whether in this Sale and Purchase
      Agreement or otherwise) provided that the Seller shall not be required to
      compensate the Buyer, and Land Rover UK and Jaguar Cars Limited (under the
      terms of the Intellectual Property Common Terms Agreement), in aggregate,
      more than once in respect of the same liability for
  Tax.

            

    

    

    
      	
              23.9.13

            	
              The
      Buyer shall cooperate with the Seller and shall, as requested in writing
      by the Seller, use all reasonable endeavours (i) to contest any
      determination of HMRC that any payment comprising part of the IP
      Consideration properly attributable to the United Kingdom Patents should
      have been subject to any withholding or deduction of United Kingdom Tax,
      and (ii) to procure the recovery from HMRC of any Tax associated with such
      determination, provided that the Buyer shall not be required to take any
      action:

            

    

    

    
      	
               
      

            	
              (a)

            	
              if
      there is reasonable evidence to suggest that an act or failure to act in
      relation to the determination in question constitutes fraud by the Seller
      or any Affiliate of the Seller; or

            

    

    

    
      	
               
      

            	
              (b)

            	
              unless
      the Seller has indemnified the Buyer (to its reasonable satisfaction)
      against any costs or expenses or liabilities (including any Tax) which it
      may suffer as a result of taking such action as requested by the Seller
      under this Clause 23.9.13; or

            

    

    

    
      	
               
      

            	
              (c)

            	
              in
      the context only of an appeal to a court (including for the avoidance of
      doubt the Special Commissioners or the Value Added Tax and Duties Tribunal
      but excluding requests for local re-consideration to HMRC) unless the
      Seller has been advised by leading independent Tax Counsel acceptable to
      the Buyer in its reasonable discretion, after disclosure of all relevant
      information and documents, that it is reasonable to take the action
      requested by the Seller and that any appeal against the determination in
      question will, on the balance of probabilities, succeed, and a copy of
      such advice has been furnished to the
Buyer.

            

    

    

    
      
        
           

        

        
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              23.9.14

            	
              In
      the event that the Buyer is entitled to recover any Tax from HMRC in
      accordance with and having complied with Clause 23.9.13, the Buyer shall
      pay to the Seller the sum equal to the lesser
  of:

            

    

    

    
      	
               
      

            	
              (a)

            	
              any
      amount so recovered by the Buyer (together with an amount equal to any
      interest payment or repayment supplement received by the Buyer in
      connection with the recovery); and

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      amount already paid by the Seller in respect of such Tax under the
      indemnity at Clause 23.9.12,

            

    

    

    in each
case less all costs and expenses reasonably incurred by the Buyer in making such
recovery (to the extent not already paid to the Buyer under the indemnity
referred to at Clause 23.9.13(b)) and less any Tax chargeable on the Buyer in
respect of any sum received.

    

    
      	
              23.10

            	
              Amendments

            

    

    

    This Sale
and Purchase Agreement, the documents in the Agreed Form and any of the
documents referred to in this Sale and Purchase Agreement may not be amended
except by written agreement between the parties and no other purported amendment
shall be effective.

    

    
      	
              23.11

            	
              No
      Waiver

            

    

    

    
      	
              23.11.1

            	
              No
      waiver by any party of any default by the other party in the performance
      of any of the provisions of this Sale and Purchase
    Agreement:

            

    

    

    
      	
               
      

            	
              (a)

            	
              shall
      operate or be construed as a waiver of any other or further default
      whether of a like or different character;
or

            

    

    

    
      	
               
      

            	
              (b)

            	
              shall
      be effective unless in writing duly executed by a duly authorised
      representative of such party.

            

    

    

    
      	
              23.11.2

            	
              Neither
      the failure by any party to insist on any occasion upon the performance of
      the terms, conditions, and provisions of this Sale and Purchase Agreement,
      nor time or other indulgence granted by one party to the other shall act
      as a waiver of such breach or acceptance of any variation or the
      relinquishment of any such right or any other right under this Sale and
      Purchase Agreement, which shall remain in full force and
      effect.

            

    

    

    
      	
              23.12

            	
              Entirety

            

    

    

    
      	
              23.12.1

            	
              This
      Sale and Purchase Agreement and the Transaction Documents are intended by
      the parties as the final expression of their agreement and are intended
      also as a complete and exclusive statement of the terms of that
      agreement.

            

    

    

    
      	
              23.12.2

            	
              All
      prior written or oral understandings, offers or other communications of
      every kind pertaining to this Sale and Purchase Agreement are abrogated
      and withdrawn.

            

    

    

    
      	
              23.13

            	
              Third
      Party Rights

            

    

    

    Except as
provided expressly in this Sale and Purchase Agreement, the parties do not
intend any term of this Sale and Purchase Agreement to be enforceable pursuant
to the Contracts (Rights of Third Parties) Act 1999 by any person who is not a
party.

    

    
      
        
           

        

        
          89

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    
      	
              23.14

            	
              Severance

            

    

    

    If any
provision of this Sale and Purchase Agreement is held by any court or
administrative body of competent jurisdiction to be illegal or unenforceable,
wholly or partly, under any Law, such provision, or, as the case may be, part of
such provision, shall to that extent be deemed not to form part of this Sale and
Purchase Agreement.  The enforceability of the remainder of this Sale
and Purchase Agreement, however, shall not be affected.

    

    
      	
              23.15

            	
              Notices

            

    

    

    
      	
              23.15.1

            	
              Save
      as otherwise provided in this Sale and Purchase Agreement, all notices or
      other communications which are required or permitted under this Sale and
      Purchase Agreement shall:

            

    

    

    
      	
               
      

            	
              (a)

            	
              be
      in writing;

            

    

    

    
      	
               
      

            	
              (b)

            	
              be
      in the English language; and

            

    

    

    
      	
               
      

            	
              (c)

            	
              be
      delivered personally or sent by first class post or pre-paid recorded
      delivery (or international courier if overseas) or fax, addressed as
      follows:

            

    

    

    
      	
              If
      to the Seller:

            	
              Ford
      Motor Company

            
	 
      	 
      
	 
      	
              One
      American Road – Suite 1134

              Dearborn,
      Michigan 48126

              USA

            
	 
      	 
      
	
              Attention:

            	
              Corporate
      Secretary

            
	 
      	 
      
	
              Fax:

            	
              +1
      313 248 8713

            
	 
      	 
      
	
              With
      a copy to:

            	
              Hogan
      & Hartson

              Juxon
      House

              100
      St Paul’s Churchyard

              London
      EC4M 8BU

              Attention:
      Mr William J Curtin III

              Fax:
      +44 (0)20 7367 0220

            
	 
      	 
      
	 
      	 
      
	
              If
      to the Buyer:

            	
              TML
      Holdings Limited

            
	 
      	 
      
	 
      	
              18
      Grosvenor Place

              London

              SW1X
      7HS

            
	 
      	 
      
	
              Attention:

            	
              Company
      Secretary

            
	 
      	 
      
	
              Fax:

            	
              +44
      (0)20 7235 8727

            
	 
      	 
      
	
              With
      a copy to:

            	
              Herbert
      Smith LLP

              Exchange
      House

              Primrose
      Street

              London
      EC2A 2HS

              Attention:
      Ms Nimi Patel

              Fax:
      +44 (0)20 7374 0888

            

    

    

    
      
        
           

        

        
          90

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    
      	
              If
      to the Guarantor:

            	
              Tata
      Motors Limited

            
	 
      	 
      
	 
      	
              Bombay
      House

              24
      Homi Mody Street

              Fort
      Mumbai 400 000

              India

            
	 
      	 
      
	
              Attention:

            	
              Company
      Secretary

            
	 
      	 
      
	
              Fax

            	
              +91
      22 6665 8060

            
	 
      	 
      
	
              With
      a copy to:

            	
              Herbert
      Smith LLP

              Exchange
      House

              Primrose
      Street

              London
      EC2A 2HS

              Attention:
      Ms Nimi Patel

              Fax:
      +44 (0)20 7374 0888

            

    

    
    

     

    
      	
              23.15.2

            	
              In the absence of
      evidence of earlier receipt, and subject to Clauses ‎23.15.3 and
      23.15.4, a notice or other communication shall be deemed given and
      received:

            

    

    

    
      	
               
      

            	
              (a)

            	
              if
      delivered personally, when left at the address referred to
      above;

            

    

    

    
      	
               
      

            	
              (b)

            	
              if
      sent by post (except by international courier), two (2) Business Days
      after posting it;

            

    

    

    
      	
               
      

            	
              (c)

            	
              if
      sent by international courier, five (5) Business Days after it is
      collected by such courier from the Buyer;
and

            

    

    

    
      	
               
      

            	
              (d)

            	
              if
      sent by facsimile, at the time of successful completion of the
      transmission (as per a transmission report from the machine from which the
      facsimile was sent).

            

    

    

    
      	
              23.15.3

            	
              If
      receipt or deemed receipt of a notice or other communication occurs before
      9.00 am (in the country of receipt) on a Business Day, the notice or other
      communication shall be deemed to have been received at 9.00 am (in the
      country of receipt) on that day, and if deemed receipt occurs after 5.00
      pm (in the country of receipt) on a Business Day, or on a day which is not
      a Business Day, the notice or other communication shall be deemed to have
      been received at 9.00 am (in the country of receipt) on the next Business
      Day.

            

    

    

    
      	
              23.15.4

            	
              The
      deemed service provisions in Clause 23.15.2 shall not apply
      to:

            

    

    

    
      	
               
      

            	
              (a)

            	
              a
      notice or other communication served by post, if there is a national or
      local suspension, curtailment or disruption of postal services which
      affects the collection or the notice or other communication or is such
      that the notice cannot reasonably be expected to be delivered within two
      (2) Business Days after posting or, if sent by international courier, five
      (5) Business Days after it is collected by such courier from the Buyer;
      and

            

    

    

    
      	
               
      

            	
              (b)

            	
              a
      notice or other communication served by facsimile, if, before the time at
      which the notice or other communication would otherwise be deemed to have
      been served, the recipient informs the sender that the notice or other
      communication has been received in a form which is unclear in any material
      respect and, if it informs the sender by telephone or email, it also
      despatches a confirmatory facsimile within two (2)
  hours.

            

    

    

    
      	
              23.15.5

            	
              In
      proving service, it shall be sufficient to prove
  that:

            

    

    

    
      	
               
      

            	
              (a)

            	
              the
      envelope containing the notice or other communication was addressed to the
      address of the relevant party set out in Clause 23.15.1 (or as otherwise
      notified by that party pursuant to Clause ‎23.15.6) and delivered
      either to that address or into the custody of the postal authorities as a
      pre-paid recorded delivery or registered post letter or letter sent by
      international courier; or

            

    

    

    
      
        
           

        

        
          91

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    
      	
               
      

            	
              (b)

            	
              the
      notice or other communication was transmitted in full by facsimile to the
      facsimile number of the relevant party set out in Clause 23.15.1‎ (or as otherwise
      notified by that party pursuant to Clause ‎23.15.6) (as evidenced
      by a machine generated confirmation of full
  receipt).

            

    

    

    
      	
              23.15.6

            	
              A
      party may by notice of at least five (5) Business Days to the other party
      change the address or facsimile number to which such notices and
      communications to it are to be
delivered.

            

    

    

    
      	
              23.15.7

            	
              No
      notice or other communication given under this Sale and Purchase Agreement
      shall be validly served if sent by
e-mail.

            

    

    

    
      	
              23.16

            	
              Execution

            

    

    

    
      	
              23.16.1

            	
              To
      facilitate execution, this Sale and Purchase Agreement may be executed in
      any number of counterparts, each of which when executed and delivered is
      an original, but all the counterparts together constitute the same
      document.  It shall not be necessary that the signature of, or
      on behalf of, each party appears on each counterpart, but it shall be
      sufficient that the signature of, or on behalf of, each party appears on
      one or more of the counterparts.

            

    

    

    
      	
              23.16.2

            	
              To
      facilitate execution, this Sale and Purchase Agreement may be executed
      through the use of facsimile transmission, and a counterpart of this Sale
      and Purchase Agreement that contains the facsimile signature of a party,
      which counterpart has been transmitted by facsimile transmission to the
      other party at its facsimile number set out in Clause 23.15 or at such
      other facsimile number as such other party shall request, shall constitute
      an executed counterpart of this Sale and Purchase
    Agreement.

            

    

    

    
      	
              24.

            	
              GOVERNING
      LAW AND DISPUTES

            

    

    

    
      	
              24.1

            	
              Governing
      Law

            

    

    

    This Sale
and Purchase Agreement and the documents to be entered into pursuant to it and
all matters arising from or connected with it are governed by, and shall be
construed in accordance with, the laws of England.

    

    
      	
              24.2

            	
              Dispute
      Resolution

            

    

    

    
      	
              24.2.1

            	
              The
      parties hereby submit to the exclusive jurisdiction of the High Court of
      Justice in England.

            

    

    

    
      	
              24.2.2

            	
              The
      Seller hereby agrees that process in connection with proceedings will be
      validly served on it if served upon Ford Motor Company Limited (Attention:
      Company Secretary), a private limited company registered in England and
      Wales under registration number 235446, whose registered office is at Room
      1/447, Eagle Way, Brentwood, Essex CM13 3BW, England or such other person
      resident in England and Wales as the Seller shall notify to the Buyer from
      time to time.  If, for any reason, such person shall cease to be
      such agent for service of process, the Seller shall forthwith appoint
      another agent resident in England and Wales for service of process and
      deliver to each of the other parties a copy of the new agent’s acceptance
      of that appointment within thirty (30)
days.

            

    

    

    
      
        
           

        

        
          92

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    
      	
              24.2.3

            	
              The
      Guarantor hereby agrees that process in connection with proceedings will
      be validly served on it if served upon the Buyer at the address specified
      in Clause 23.15.1 or such other person resident in England and Wales as
      the Buyer shall notify to the Seller from time to time.  If, for
      any reason, such person shall cease to be such agent for service of
      process and deliver to each of the other parties a copy of the new agent’s
      acceptance of that appointment within thirty (30)
  days.

            

    

    

    
      	
              24.2.4

            	
              Nothing
      in this Agreement shall affect the right to serve process in any other
      manner permitted by Law.

            

    

    

    
      
        
           

        

        
          93

          
            

          

        

        
           

        

      

    

     

    
      
        	 	
                EXECUTION
      VERSION

              

      

       

    

    IN WITNESS WHEREOF this Sale
and Purchase Agreement has been executed by the parties hereto on the day and
year first above written:

    

    

    

    
      
        	
                Signed
      by

              	
                )

              	
                /s/ Mr Don
      Leclair

              
	 
      	 
      	 
      
	
                duly
      authorised representative of /

                for
      and on behalf of

              	
                )

                )

              	 
      
	 
      	 
      	 
      
	
                FORD
      MOTOR COMPANY

              	
                )

              	
                /s/
      Mr Lewis
      Booth

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                Signed
      by

              	
                )

              	
                /s/ Mr C
      Ramakrishnan

              
	 
      	 
      	 
      
	
                duly
      authorised representative of /

                for
      and on behalf of

              	
                )

                )

              	 
      
	 
      	
                 
      

              	 
      
	
                TML
      HOLDINGS LIMITED

              	
                )

              	 
      
	
                 
      

              	 
      	 
      
	 
      	 
      	 
      
	
                Signed
      by

              	
                )

              	
                /s/
      Mr Ravi
      Kant

              
	 
      	 
      	 
      
	
                duly
      authorised representative of /

                for
      and on behalf of

              	
                )

                )

              	
                /s/ Mr C
      Ramakrishnan

              
	 
      	 
      	 
      
	
                TATA
      MOTORS LIMITED

              	
                )

              	 
      

      

    

    

     

    94ex10_1.htm

    
      

    

    Exhibit
10.1

     

    EXECUTIVE
EMPLOYMENT AGREEMENT

     

    THIS
AGREEMENT, effective as of May 5, 2008, by and between LAPOLLA INDUSTRIES, INC. a
Delaware corporation (the “Company”) and DOUGLAS J. KRAMER (the
“Executive”).

     

    WHEREAS,
Executive is currently employed as President and Chief Executive Officer of the
Company; and

     

    WHEREAS,
Company and Executive previously entered into an Executive Employment Agreement
effective as of July 25, 2005 (the “Prior Agreement”); and

     

    WHEREAS,
Company and Executive have determined that it would be in each of their best
interests to amend certain provision of the Prior Agreement and to enter into a
new agreement subject to the terms and conditions hereinafter set forth in place
of the Prior Agreement; and

     

    WHEREAS,
the Company has determined to provide the Executive with compensation and other
benefits on the terms and conditions set forth in this Agreement (the
“Agreement”), and the Executive is willing to accept such terms and conditions
and to continue to perform services for the Company on the terms and conditions
hereinafter set forth.

     

    NOW
THEREFORE, in consideration of the respective agreements of the parties
contained herein, it is agreed as follows:

     

    1.      EMPLOYMENT
TERM.  Subject to the provisions of Section 4 hereof, this
agreement shall be effective commencing on May 5, 2008 and ending on December
31, 2010 (the “Term”).

     

    2.      POSITIONS;
DUTIES.

     

    2.1.           The
Company agrees to employ the Executive, and the Executive agrees to serve during
the term hereof, as President and Chief Executive Officer of the
Company.

    

    2.2           While
employed, the Executive agrees to devote all of his working time and efforts
(excluding any periods of vacation and sick leave and any other permitted
absences), using his ability, experience and talent, to the performance of
services, duties and responsibilities in connection with the positions named
above. The Executive shall perform such duties and exercise such powers,
commensurate with his position, and shall be subject to such restrictions, as
the Chairman of the Board and Board of Directors of the Company shall from time
to time assign to him or impose.  Provided, however, Executive’s
duties, powers and responsibilities shall at all times be consistent with the
duties, powers and responsibilities of a President and Chief Executive
Officer.

    

    2.3           Nothing
in this Agreement shall preclude the Executive from (a) engaging in charitable
and community affairs (including serving on the board of any not-for-profit
organization) so long as, in the reasonable determination of the Board of
Directors, such activities do not interfere with his duties and responsibilities
hereunder; (b) managing any passive investment made by him in publicly traded
equity securities or other property (provided that no such investment may exceed
5% of the equity of any entity without the prior approval of the Board of
Directors); or (c) serving, subject to the prior approval of the Board of
Directors, as a member of corporate boards of directors or as a trustee of any
other corporation, association or entity.

     

    3.      COMPENSATION AND RELATED
MATTERS.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.1           Base
Compensation.  The Company shall pay the Executive a base
salary (“Base Salary”) calculated at an annual rate of $350,000. The Base Salary
may be increased in the discretion of the Board during the Employment Term and,
as so increased, shall not be decreased and shall constitute “Base Salary”
hereunder.

     

    3.2           Annual
Bonus.  As determined by the Compensation Committee of the
Board of Directors, Executive shall be eligible for bonus consideration
(“Bonus”) as and if bonuses are paid to other Executives on an annual
basis.

     

    3.3           Transaction
Bonus.  In addition to his Base Salary, provided Executive is
still employed by the Company upon the consummation of a Change in Control (as
defined in Section 4.7 below), or in the event Executive’s employment is
terminated within one year immediately preceding the consummation of a Change in
Control (other than by the Company for “Cause” as defined below or by Executive
without “Good Reason” as defined below), the Executive shall be entitled to
receive a bonus (the “Transaction Bonus”) in addition to any other payments or
benefits applicable thereto under this Agreement. The Transaction Bonus shall be
in an amount equal to six percent (6%) of the “Transaction Value”, which means
the total amount of consideration paid in respect of the transaction that
resulted in the Change in Control.  The Transaction Bonus shall be
paid at the same time and in the same form of consideration (e.g., cash, stock
in the acquiring company, promissory note or a combination thereof) as is the
consideration received by the holders of the majority of the outstanding voting
securities of the Company who participate in the transaction.  In the
Company’s sole and absolute discretion, it may pay in cash all or any portion of
the Transaction Bonus that would otherwise be paid in a form of consideration
other than cash pursuant to this Section.  Upon request and at his
sole expense, Executive shall be entitled to have the Company’s outside auditors
prepare a full and complete accounting of the calculation of the Transaction
Value and the Transaction Bonus.

     

    3.4           Automobile.  During
the Employment Term, Executive shall be entitled to the use of an automobile and
the Company shall reimburse the Executive for all reasonable automobile expenses
incurred by him.

     

    3.5           Employee Benefit Programs,
Plans and Practices.  During the Term, the Executive shall be
entitled to participate in all employee pension, welfare and fringe benefit
programs, plans and practices (including, without limitation, the Company’s
vacation plan under which Executive is entitled to three (3) weeks of paid
vacation time per year, up to seven (7) days of which may be carried over to the
following year without the written consent of the Company), and any incentive
compensation plans, all in accordance with the terms thereof and subject to the
changes that may be made to them during the Term, which the Company makes
available to its executives.

     

    3.6            Expenses.  The
Executive is authorized to incur reasonable expenses in carrying out his duties
and responsibilities under this Agreement, including, without limitation,
expenses for travel and similar items related to such duties and
responsibilities. The Company will reimburse the Executive for all such expenses
upon presentation by the Executive from time to time of appropriately itemized
and approved (consistent with the Company’s policy) accounts of such
expenditures.

     

    3.7            Withholding
Taxes.  The Company shall have the right to deduct or withhold
from all payments due to Executive hereunder any and all sums required for any
and all federal, social security, state and local taxes, assessments or charges
now applicable or that may be enacted and become applicable in the
future.

     

    4.      TERMINATION OF
EMPLOYMENT.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    4.1           Termination by Company
Without Cause or by Executive with Good Reason During the
Term.  If this Agreement and the Executive’s employment
hereunder are terminated during its term by the Company without “Cause” (as
defined below) or by the Executive with “Good Reason” (as defined below), the
Executive shall be entitled to the following compensation and
benefits:

     

    (a)    A
severance amount equal to the lesser of (i) twenty-four (24) months Base Salary;
or (ii) Base Salary for the remainder of the Term, paid in equal monthly
installments.  The amount of any severance otherwise payable to
Executive shall be reduced by the amount of earned income to which Executive
shall be entitled for services performed during the severance payment period for
other than the Company;

     

    (b)    The
product of (i) the Value (as defined below), as of the last day of the calendar
year containing the Termination Date, of any equity or equity based awards
granted under any plans or other arrangements, if any, they may be adopted or
implemented by Company after May 5, 2008, which Executive can show that he
reasonably would have received had he remained employed by the Company through
the end of the calendar year containing the Termination Date, or four (4) months
after the Termination Date, whichever is greater, multiplied by (ii) a fraction,
the numerator of which is the number of days in the calendar year in which the
Date of Termination occurs through the Termination Date and the denominator of
which is 365, but only to the extent not previously vested, exercised and/or
paid.  For purposes of this paragraph, the Value of any equity or
equity based awards shall be determined by the Company’s independent
accountants, whose determination shall be final; and

     

    (c)    Reimbursement
for reasonable and necessary expenses incurred by the Executive on behalf of the
Company during the period ending on the Termination Date;

     

    (d)    To
the extent not theretofore paid or otherwise provided for under this Agreement,
Company shall timely pay or provide to Executive, any other amounts or benefits
which Executive is then entitled to receive through the Termination Date under
any plan, program, policy or practice or contract or agreement maintained by the
Company for the benefit of Executive, including any unused vacation that is
accrued and unpaid as of the Termination Date; and

     

    (e)    Health
benefits.  For twelve (12) months from the Termination Date, continued
participation in any plan(s) providing medical, hospitalization and dental
coverage for Executive as of the Termination Date, subject to the same terms and
conditions, including but not limited to those requiring contributions by
Executive, as were applicable to Executive immediately prior to the Termination
Date.  Any coverage to be provided for Executive under this paragraph
shall be conditioned upon his timely election of COBRA or any other laws
providing for continuation of coverage upon employment termination, effective as
of the Termination Date.  If, for any reason, Company’s plan(s) do not
permit such coverage subsequent to termination of employment, Company will, to
the extent it is able to do so, provide Executive with similar coverage (with
the same after tax effect) outside of such plan(s).

     

    4.2           Except
as otherwise provided in this Agreement, all payments required to be paid by the
Company to the Executive pursuant to Section 4.1 are payable on the Termination
Date or as soon thereafter as is practical based upon the nature of the
payment.

     

    4.3           Termination by Company For
Cause or  by Executive Without Good Reason.  If the
Company hereunder terminates Executive’s employment at any time for Cause (as
defined below) or Executive terminates his employment without Good Reason,
Executive shall have no right to any bonuses, salaries, benefits or other
compensation other than those accrued through the date of employment termination
or required by law to be provided.

     

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

    

    4.4           Termination On Account of
Death or Disability.   Company shall treat termination of
Executive’s employment on account of his Death or Disability as a Termination
without Cause for purposes of this Agreement.  In the event of
Executive’s Death, the Termination Date shall be his date of
death.  In the event of Executive’s Disability, the Termination Date
shall be the date that is five (5) days after the date on which Company gives
Executive written notice of termination of employment on account of his
Disability.  Such written notice may be given by Company at any time
after Executive has suffered a physical or mental illness that renders him
incapable of fulfilling his obligations under this Agreement, and such physical
or mental illness existed and rendered him incapable of fulfilling his
obligations for a period of at least ninety (90) days within a consecutive one
hundred and eighty (180) day period.  The Company’s determination that
Executive is incapable of fulfilling his obligations under this Agreement shall
be final and binding in the absence of fraud.

     

    4.5           As
used herein, the term “Cause” shall mean (i) willful malfeasance or willful
misconduct by Executive in connection with his employment, (ii) continuing
refusal by Executive to perform his duties hereunder or follow any lawful
direction of the Board, (iii) any material breach of the provisions of Sections
12 or 13 of this Agreement by Executive, (iv) engaging in conduct detrimental to
the interest or reputation of the Company, without regard to whether such
conduct was in connection with the Executive’s employment, or (v) the
Executive’s conviction of, or plea of nolo contendere to, a felony (other than a
traffic violation), which, in each event in (i), (ii) or (iii), actually has a
material effect on the Company and its business. The cessation of employment of
the Executive shall not be deemed to be for Cause unless and until there shall
have been delivered to the Executive a copy of a resolution duly adopted by the
affirmative vote of the Board at a meeting of the Board called and held for such
purpose (after reasonable notice is provided to the Executive and the Executive
is given an opportunity, together with counsel, to be heard before the Board),
finding that, based upon a reasonable good faith determination of the Board, the
Executive is guilty of the conduct described above, and specifying the
particulars thereof in detail. The Executive shall have ten (10) days after the
date that such written notice has been given to the Executive in which to cure
such conduct, to the extent such cure is possible.

     

    4.6           As
used herein, the term “Good Reason” shall mean (i) a reduction in the
Executive’s Base Salary; (ii) a substantial diminution of the Executive’s duties
and responsibilities; or (iii) a relocation of the Executive’s primary workplace
that is not agreed to by him and is to a location that is greater than fifty
(50) miles from Executive’s primary workplace as of the date of this
Agreement.   The Company’s employment of another officer in a
newly created position or otherwise, at a position beneath that of the
Executive, shall not be deemed to constitute, or result in, a substantial
diminution of the Executive’s duties or responsibilities for purposes of this
Agreement.

     

    4.7           Termination following a
Change in Control.  If the Company or any successor terminates
this Agreement at any time during the Term following a “Change in Control” (as
defined below) of the Company:  (i) Executive shall be entitled to an
amount equal to the Base Salary which would otherwise be payable over the
remaining term of this Agreement, payable in a lump sum; and (ii) any
outstanding Awards (including substituted shares of the acquiring or surviving
Company in the case of a merger or acquisition) held by Executive or other
benefits under any Company plan or program, which have not vested in accordance
with their terms will become fully vested and exercisable at the time of such
termination.  “Change in Control” means an Ownership Change Event or
series of related Ownership Change Events (collectively, a “Transaction”) in which the
stockholders of the Company immediately before the Transaction do not retain
immediately after the Transaction, direct or indirect beneficial ownership of
more than fifty percent (50%) of the total combined voting power of the
outstanding voting securities of the Company, or in the event of an ownership
Change Event, the entity to which the assets of the Company were
transferred.  An “Ownership Change Event”
shall be deemed to have occurred if any of the following occurs with respect to
the Company: (i) the direct or indirect sale or exchange by the stockholders of
the Company of all or substantially all of the voting stock of the Company; (ii)
a merger or consolidation in which the Company is a party; (iii) the sale,
exchange, or transfer of all or substantially all of the assets of the Company
(other than a sale, exchange or transfer to one or more subsidiaries of the
Company); or (iv) a liquidation or dissolution of the Company.  The
sole exception to Change in Control and Ownership Change Event as described
above shall be any Change in Control or Ownership Change Event that may result
from the death or incapacity of Richard J. Kurtz wherein his interest is
transferred to his heirs only.  In such event for the purposes hereof,
no Change in Control or Ownership Change Event shall be deemed to have
occurred.

     

    
      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

    

    4.8           Release of
Claims.  Upon good and valuable consideration, the receipt of
which the Executive and the Company each hereby acknowledge, upon termination of
the Executive’s employment for any reason set forth in Section 4, with the
exception of the reasons for termination provided under Section 4.3, the Company
and the Executive agree to execute a release of claims, substantially in the
form attached hereto as Exhibit A, with
respect to claims that arise on or prior to the date of the execution of the
release. The Executive’s execution of such release shall be a condition
precedent to the payment of any of the compensation and benefits referred to in
this Section 4.

     

    4.9           NOTICE OF
TERMINATION.  Any purported termination by the Company or by
the Executive shall be communicated by written notice of termination to the
Executive or the Company, respectively, delivered on or prior to the effective
date of such termination.

     

    5.      TERMINATION
DATE.  “Termination Date” shall mean, in the case of the
Executive’s death, his date of death and, in all other cases, the last day of
the Executive’s employment with the Company hereunder.

     

    6.      SUCCESSORS; BINDING
AGREEMENT.

     

    6.1           This
Agreement shall be binding upon and shall inure to the benefit of the Company,
its successors and assigns and, at the time of any such succession or
assignment, the Company shall require any successor or assign to expressly
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession or
assignment had taken place. The term the “Company” as used herein shall include
such successors and assigns. The term “successors and assigns” as used herein
shall mean a corporation or other entity acquiring ownership, directly or
indirectly, of all or substantially all the assets and business of the Company
(including this Agreement) whether by operation of law or
otherwise.

     

    6.2           Neither
this Agreement nor any right or interest hereunder shall be assignable or
transferable by the Executive, his beneficiaries or legal representatives,
except by will or by the laws of descent and distribution. This Agreement shall
inure to the benefit of and be enforceable by the Executive’s legal personal
representative.

     

    7.      NOTICE.  For
the purpose of this Agreement, notices and all other communications provided for
in the Agreement (including a notice of termination of employment) shall be in
writing and shall be deemed to have been duly given when personally delivered or
sent by certified mail, return receipt requested, postage prepaid, addressed to
the respective addresses last given by each party to the other, provided that
all notices to the Company shall be directed to the attention of the Board with
a copy to the secretary of the Company. All notices and communications shall be
deemed to have been received on the date of delivery thereof or on the third
business day after the mailing thereof, except that notice of change of address
shall be effective only upon receipt.

     

    8.      NON-EXCLUSIVITY OF
RIGHTS.  Nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in any benefit, bonus, incentive
or other plan or program provided by the Company and for which the Executive may
qualify, nor shall anything herein limit or reduce such rights as the Executive
may have under any other agreements with the Company.  Amounts which
are vested benefits or which the Executive is otherwise entitled to receive
under any plan or program of the Company shall be payable in accordance with
such plan or program.

    
      
        
           

        

        
          5

          
            

          

        

        
           

        

      

    

    

    9.      MISCELLANEOUS.  No
provision of this Agreement may be modified, waived or discharged unless such
waiver, modification or discharge is agreed to in writing and signed by the
Executive and the Company.  No waiver by either party hereto at any
time of any breach by the other party hereto of, or compliance with, any
condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at
the same or at any prior or subsequent time. No agreement or representations,
oral or otherwise, express or implied, with respect to the subject matter hereof
have been made by either party which are not expressly set forth in this
Agreement. No additional compensation provided under any benefit or compensation
plans to the Executive shall be deemed to modify or otherwise affect the terms
of this Agreement or any of the Executive’s entitlements hereunder.

     

    10.    GOVERNING
LAW.  This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Delaware, without reference
to principles of conflicts of laws.

     

    11.    SEVERABILITY.  The
provisions of this Agreement shall be deemed severable and the invalidity or
unenforceability of any provision shall not affect the validity or
enforceability of the other provisions hereof.

     

    12.    NONSOLICITATION;
NONCOMPETITION

     

    12.1          The
Executive hereby covenants and agrees that at all times during the period of his
employment with the Company and for two years thereafter (the “Restriction
Period”), he shall not, either directly or indirectly, for himself or for or
through any third-party, without the prior written consent of the Board, (i)
solicit or take any action to willfully or intentionally cause the solicitation
of any person who as of the Termination Date, or at any time during the two year
period immediately preceding the Termination Date, is a “Client” of the Company
(as hereinafter defined) to transact any business with a “Competitive
Enterprise” (as hereinafter defined) or discontinue business, in whole or in
part with the Company; (ii) willfully or intentionally interfere with or damage
any relationship between a Client and the Company, or (iii) solicit any person
employed by, or performing services in any other capacity, including but not
limited to as an independent contractor or distributor, on the Termination Date
or at any time within the immediately preceding two year period, for the Company
or any of its subsidiaries, to apply for or accept employment with, or perform
services in any other capacity for, a Competitive Enterprise or otherwise
encourage or entice such person to leave is position with the Company or any of
its subsidiaries.

     

    12.2          The
Executive hereby covenants and agrees that during the Restriction Period, the
Executive shall not, either directly or indirectly, for himself or for or
through any third party, (a) accept business which is substantially similar to
the business of the Company from any individual or entity that obtained the
goods or services of, or purchased goods or services from, the Company during
the two (2) year period immediately prior to the Termination Date; (b) accept
business from any Client of the Company (the identity of and information
concerning which constitute trade secrets and Confidential Information of the
Company) on behalf of any individual or entity in connection with any business
substantially similar to the business of the Company, or (c) make known the
names and addresses of such customers or any information relating in any manner
to the Company’s trade or business relationships with such customers, other than
in connection with the performance of Executive’s employment with
Company.

     

    12.3          The
Executive hereby covenants and agrees that, except as otherwise provided in this
section, at all times during the Restriction Period, he shall not, without the
prior written consent of the Board, be engaged in or have a financial interest
in any business that is a Competitive Enterprise, or otherwise engage in any
activity that is a Competitive Enterprise.  Notwithstanding the
foregoing, in the event the Executive is terminated without Cause or resigns for
Good Reason, the restrictions on competition contained in this Section 12.3
shall only apply during the period for which he is entitled to severance
payments under Section 4.1 hereof.

    
      
        
           

        

        
          6

          
            

          

        

        
           

        

      

    

    

    Upon the
expiration of the term of this Agreement or any renewal thereof, the
restrictions on competition contained in this Section 12.3 shall not apply if
the Company, in its discretion, elects not to offer Executive continued
employment upon terms and conditions substantially equivalent to those that were
in effect immediately prior to the expiration of the term of this Agreement or
any renewal thereof.

     

    12.4.         For
purposes of this Agreement, the term “Competitive Enterprise” shall mean any
business which is in competition with a business engaged in by the Company or
any of its subsidiaries or affiliates in any state of the United States or in
any foreign country in which any of them are engaged in business at the time of
such termination of employment for as long as they carry on a business therein.
Notwithstanding the preceding sentence, the Executive shall not be prohibited
from owning less than five (5%) percent of any publicly traded
corporation.

     

    12.5.         For
purposes of this Agreement, “Client” shall mean (a) an existing client or
customer of the Company or any of its subsidiaries; or (b) an intended client or
customer of the Company or any of its subsidiaries with whom the Company has
devoted a substantive amount of resources pursuing, and as a direct result there
from has a reasonable belief that there will be an imminent purchase order or
other agreement to purchase Company’s goods and/or services.

     

    12.6          The
Executive acknowledges, agrees and confirms that the restrictions contained in
this Section are necessary to protect the legitimate business interests of the
Company and shall be enforceable to the fullest extent permitted by applicable
law.  Therefore, to the extent any court of competent jurisdiction
shall determine that any portion of the foregoing restrictions is excessive,
such provision shall not be entirely void, but rather shall be limited or
revised only to the extent necessary to make it enforceable. Specifically, if
any court of competent jurisdiction should hold that any portion of the
foregoing description is overly broad as to one or more states of the United
States or one or more foreign jurisdictions, then that state or states or
foreign jurisdiction or jurisdictions shall be eliminated from the territory to
which the restrictions of this Section 12 applies and the restrictions shall
remain applicable in all other states of the United States and foreign
jurisdictions.

     

    13.           CONFIDENTIAL
INFORMATION.  The Executive agrees to keep secret and retain in
the strictest confidence all confidential matters which relate to the Company,
its subsidiaries and affiliates, including without limitation, customer lists,
client lists, trade secrets, pricing policies and other business affairs of the
Company, its subsidiaries and affiliates learned by him from the Company or any
such subsidiary or affiliate or otherwise before or after the date of this
Agreement, and not to disclose any such confidential matter to anyone outside of
the Company or any of its subsidiaries or affiliates, whether during or after
his period of service with the Company, except (i) as such disclosure may be
required or appropriate in connection with his work as an employee of the
Company or (ii) when required to do so by a court of law, by any governmental
agency having supervisory authority over the business of the Company or by any
administrative or legislative body (including a committee thereof) with apparent
jurisdiction to order him to divulge, disclose or make accessible such
information. The Executive agrees to give the Company advance written notice of
any disclosure pursuant to clause (ii) of the preceding sentence and to
cooperate with any efforts by the Company to limit the extent of such
disclosure. Upon request by the Company, the Executive agrees to deliver
promptly to the Company upon termination of his services for the Company, or at
any time thereafter as the Company may request, all Company, subsidiary or
affiliate memoranda, notes, records, reports, manuals, drawings, designs,
computer files in any media and other documents (and all copies thereof)
relating to the Company’s or any subsidiary’s or affiliate’s business and all
property of the Company or any subsidiary or affiliate associated therewith,
which he may then possess or have under his direct control, other than personal
notes, diaries, rolodexes and correspondence.

     

    
      
        
           

        

        
          7

          
            

          

        

        
           

        

      

    

    

    14.           OWNERSHIP OF DEVELOPMENTS
AND OTHER RIGHTS.  All copyrights, patents, trade secrets, or
other intellectual property rights associated with any ideas, concepts,
techniques, inventions, formulations, processes or works of authorship, or other
property or rights of a similar nature, developed or created by Executive during
the Term or at any other time while performing services for on or behalf of the
Company, directly or indirectly, shall belong exclusively to the
Company.

    

    15.           REMEDY.  Should
the Executive engage in or perform, either directly or indirectly, any of the
acts prohibited by Sections 12 or 13 hereof, or treats as his own any
developments belonging to Company pursuant to Section 14 hereof, it is agreed
that the Company shall be entitled to full injunctive relief, to be issued by
any competent court of equity, enjoining and restraining the Executive and each
and every other person, firm, organization, association, or corporation
concerned therein, from the continuance of such violative acts. The foregoing
remedy available to the Company shall not be deemed to limit or prevent the
exercise by the Company of any or all further rights and remedies, which may be
available to the Company hereunder or at law or in equity.

    

    16.           ENTIRE AGREEMENT; WAIVER OF
CLAIMS.  This Agreement constitutes the entire agreement
between the parties hereto with respect to the terms of the Executive’s
employment with the Company and supersedes the Prior Agreement and all other
prior agreements, if any, understandings and arrangements, oral or written,
between the parties hereto with respect to such subject matter, and the terms
and conditions of the Executive’s employment with the Company shall be governed
solely pursuant to the terms of this Agreement (which shall include the plans or
programs referred to in this Agreement).

    

    17.           COUNTERPARTS.  This
Agreement may be executed in counterparts, each of which shall be an original,
with the same effect as if the signatures thereto and hereto were upon the same
instrument.

    

    18.           CONSULTATION AND REVIEW BY
INDEPENDENT COUNSEL.  Executive represents to Company that he
has consulted with and been advised by independent counsel of his own choosing
in connection with the negotiation of the form and substance of this Agreement
prior to its execution.

    

    19.           INDEMNIFICATION.  The
Company shall indemnify the Executive against all lawsuits, losses, claims,
expenses, or other liabilities of any nature by reason of the fact that he (a)
is or was an officer, director, employee, or agent of the Company or any of its
subsidiaries or affiliates, or (b) while he is or was a director, officer,
employee or agent of the Company, the Company or any of their subsidiaries or
affiliates, is or was servicing at the request of the Company as a director,
officer, partner, venture, proprietor, trustee, employee, agent or similar
functionary of another corporation, partnership, joint venture, trust, employee
benefit plan or other entity.

    

    20.           NON-BINDING
MEDIATION.  In the event of a dispute under this Agreement,
each Party agrees to submit to non-binding mediation prior to the commencement
of any legal or administrative proceeding against the other for any alleged
violation of the Agreement.  If the parties are unable to agree upon
an individual to serve as mediator, they shall each select an attorney or other
individual recognized as an approved mediator, and those two individuals
selected shall jointly agree upon the selection of a third individual who shall
alone serve as mediator.  If such parties are also unable to agree
upon an individual to serve as mediator, the requirement of each party to submit
to non-binding mediation under this Agreement shall be waived.

    

    IN
WITNESS WHEREOF, the Company has caused this Agreement to be executed by its
duly authorized representative and the Executive has executed this Agreement as
of the day and year first above written.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    
      	 
      	
              LAPOLLA
      INDUSTRIES, INC.

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              By:

            	
                /s/  Richard J.
      Kurtz

            
	 
      	 
      	
              Richard
      J. Kurtz, Chairman of the Board

            
	 
      	 
      	 
      
	 
      	
              EXECUTIVE:

            
	 
      	 
      	 
      
	 
      	 
      	
                /s/  Douglas J.
      Kramer

            
	 
      	 
      	
              Douglas
      J. Kramer

            

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    EXHIBIT
A

     

    MUTUAL RELEASE

     

    

    (a)
Douglas J. Kramer (the “Releasor”), for and
in consideration of benefits provided pursuant to the Employment and Severance
Agreement (the “Agreement”), dated as
of May 5, 2008, by and between the Releasor and LaPolla Industries, Inc. (the
“Company”),
does for himself and his, heirs, executors, administrators, successors and
assigns, hereby now and forever, voluntarily, knowingly and willingly release
and discharge the Company and its parents, subsidiaries and affiliates
(collectively, the “Company Group”),
together with their respective present and former partners, officers, directors,
employees and agents, and each of their predecessors, heirs, executors,
administrators, successors and assigns (but as to any partner, officer,
director, employee or agent, only in connection with, or in relationship to, his
or its capacity as a partner, officer, director, employee or agent of the
Company and its subsidiaries or affiliates and not in connection with, or in
relationship to, his or its personal capacity unrelated to the Company or its
subsidiaries or affiliates) (collectively, the “Company Releasees”)
from any and all charges, complaints, claims, promises, agreements,
controversies, causes of action and demands of any nature whatsoever, known or
unknown, suspected or unsuspected, which against the Company Releasees, jointly
or severally, Releasor or Releasor’s heirs, executors, administrators,
successors or assigns ever had or now have by reason of any matter, cause or
thing whatsoever arising from the beginning of time to the time Releasor
executes this release arising out of or relating in any way to Releasor’s
employment relationship with the Company, including but not limited to, any
rights or claims arising under any statute or regulation, including the Age
Discrimination in Employment Act of 1967, Title VII of the Civil
Rights Act of 1964, the Civil Rights Act of 1991, the Americans with
Disabilities Act of 1990, or the Family and Medical Leave Act of 1993, each as
amended, or any other federal, state or local law, regulation, ordinance or
common law, or under any policy, agreement, understanding or promise, written or
oral, formal or informal, between any Company Releasee and
Releasor.  Releasor shall not seek or be entitled to any recovery, in
any action or proceeding that may be commenced on Releasor’s behalf in any way
arising out of or relating to the matters released under this Release.
Notwithstanding the foregoing, nothing herein shall release any Company Releasee
from any claim or damages based on (i) the Releasor’s rights under the
Agreement, (ii) any right or claim that arises after the date the Releasor
executes this release, (iii) the Releasor’s eligibility for indemnification in
accordance with applicable laws or the certificate of incorporation or by-laws
of the Company (or any affiliate or subsidiary) or any applicable insurance
policy, with respect to any liability the Releasor incurs or incurred as an
officer or employee of the Company or any affiliate or subsidiary (including as
a trustee or officer of any employee benefit plan) or (iv) any right the
Releasor may have to obtain contribution as permitted by law in the event of
entry of judgment against the Releasor as a result of any act or failure to act
for which the Releasor and the Company or any affiliate or subsidiary are held
jointly liable.

    

    (b) The
Releasor has been advised to consult with an attorney of the Releasor’s choice
prior to signing this release, has done so and enters into this release freely
and voluntarily.

    

    (c) The
Releasor has had in excess of twenty-one (21) calendar days to consider the
terms of this release.  Once the Releasor has signed this release, the
Releasor has seven (7) additional days to revoke the Releasor’s consent and may
do so by writing to the Company.  The eighth day after the Releasor
shall have executed this release shall be referred to herein as the Revocation
Date.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    (d) The
Company, for and in consideration of the Releasor’s covenants under the
Agreement, on behalf of itself and the other members of the Company Group and
any other Company Releasee, their respective successors and assigns, and any and
all other persons claiming through any member of the Company Group or such other
Company Releasee, and each of them, does hereby now and forever, voluntarily,
knowingly and willingly release and discharge, the Releasor and dependents,
administrators, agents, executors, successors, assigns, and heirs, from any and
all charges, complaints, claims, promises, agreements, controversies, causes of
action and demands of any nature whatsoever, known or unknown, suspected or
unsuspected, which against the Releasor, jointly or severally, the Company and
each other member of the Company Group or any other Company Releasee, their
respective successors and assigns, and any and all other persons claiming
through any member of the Company Group or such other Company Releasee ever had,
now have or hereafter can, shall or may have by reason of any matter, cause or
thing whatsoever arising from the beginning of time to the time the Company
executes this release arising out of or relating to the Releasor’s employment
relationship with the Company, including, but not limited to, any claim, demand,
obligation, liability or cause of action arising under any federal, state or
local employment law or ordinance, tort, contract or breach of public policy
theory or alleged violation of any other legal
obligation.  Notwithstanding the foregoing, nothing herein shall
release the Releasor and his dependents, administrators, agents, executors,
successors, assigns, and heirs, (i) in respect of the Company’s rights under the
Agreement, including, without limitation, with respect to the Company’s rights
under Section 14 of the Agreement to enforce the Releasor’s obligations under
Section 12 and Section 13 of the Agreement, or (ii) from any claims or damages
based on any right or claim that arises after the date the Company executes this
release. This release shall not apply to any claim relating to fraud, willful
misconduct or breach of fiduciary duty by the Releasor arising from any fact
first learned by the Company, excluding the Releasor’s knowledge, subsequent to
the Company’s execution of this release.

    

    (e) The
Company’s release shall become effective on the Revocation Date, assuming that
the Releasor shall have executed this release and returned it to the Company and
has not revoked the Releasor’s consent to this release prior to the Revocation
Date.

    

     (f) 
In the event that any one or more of the provisions of this release shall be
held to be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remainder of this release shall not in any way be affected
or impaired thereby.

    

    The law
of the State of Delaware shall govern this release without reference to its
choice of law rules.

    

    

    
      	 
      	
              LAPOLLA
      INDUSTRIES, INC.

            
	 
      	 
      	 
      
	 
      	
              By:
      

            	
                /s/  Richard J. Kurtz

            
	 
      	 
      	
              Richard
      J. Kurtz, Chairman of the Board

            
	 
      	 
      	 
      
	 
      	 
      	
              Dated:    5/5/2008

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                /s/  Douglas J. Kramer

            
	 
      	 
      	
              Douglas J. Kramer

            
	 
      	 
      	 
      
	 
      	 
      	
              Dated:    5/6/2008

            

    

    

     

    11

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