Document:

<PAGE>

                                                                     EXHIBIT 4.8

                                    DDI CORP.
                            2005 STOCK INCENTIVE PLAN

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

                        RESTRICTED SHARES AWARD AGREEMENT

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

                                  AWARD NO. ___
                                    DATE    ___

               You are hereby awarded Restricted Shares subject to the terms and
conditions set forth in this Restricted Shares Award Agreement ("Award
Agreement"), and in the DDi Corp. 2005 Stock Incentive Plan (the "Plan"), which
is attached hereto as Exhibit A. A summary of the Plan appears in its
Prospectus, which is attached as Exhibit B. You should carefully review these
documents, and consult with your personal financial advisor, in order to fully
understand the implications of this Award, including your tax alternatives and
their consequences.

               By executing this Award Agreement, you agree to be bound by all
of the Plan's terms and conditions as if they had been set out verbatim in this
Award Agreement. In addition, you recognize and agree that all determinations,
interpretations, or other actions respecting the Plan and this Award Agreement
will be made by the Board of Directors (the "Board") of DDi Corp. (the
"Company") or the Committee pursuant to Section 4(c) of the Plan, and that such
determinations, interpretations or other actions are (in the absence of manifest
bad faith or fraud) final, conclusive and binding upon all parties, including
you, your heirs, and representatives. Capitalized terms are defined in the Plan
or in this Award Agreement.

1. SPECIFIC TERMS. Your Restricted Shares have the following terms:

Name of Participant

Number of Shares
Subject to Award
Agreement

Purchase Price per
Share (if applicable)    Not applicable.

Award Date

Vesting                  Your Restricted Shares under this Award Agreement shall
                         vest at the rate of _____ on _____ __, 20__ , _____ on
                         ______ ___, 20___and the remaining _____ on _____ __,
                         20__; subject in each case to acceleration as provided
                         in the Plan, to the shareholder approval condition set
                         forth in Section 7 below, and to your Continuous
                         Service with the Company not ending before the vesting
                         date

Lifetime Transfer        Allowed.

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Restricted Shares Award Agreement
DDi Corp.
2005 Stock Incentive Plan
Page 2

2. DIVIDENDS. Any cash dividends on your Restricted Shares will be held by the
Company (unsegregated as part of its general assets) until the period of
forfeiture lapses (and forfeited if the underlying Shares are forfeited), and
paid over to you as soon as practicable after such period lapses (if not
forfeited).

3. INVESTMENT PURPOSES. You acknowledge that you are acquiring your Restricted
Shares for investment purposes only and without any present intention of selling
or distributing them.

4. ISSUANCE OF RESTRICTED SHARES. Until all vesting restrictions lapse, any
certificates that you receive for Restricted Shares will include a legend
stating that they are subject to the restrictions set forth in the Plan and this
Award Agreement.

5. LAPSE OF VESTING RESTRICTIONS. As vesting restrictions lapse, the Company
shall cause certificates for Shares to be issued and delivered to you, with such
legends and restrictions that the Committee determines to be appropriate.
Certificates shall not be delivered to you unless you have made arrangements
satisfactory to the Committee to satisfy tax-withholding obligations.

6. LONG-TERM CONSIDERATION FOR AWARD. The Participant recognizes and agrees that
the Company's key consideration in granting this Option is securing the
long-term commitment of the Participant to serve as a trusted executive officer
who will advance and promote the Company's business interests and objectives.
Accordingly, the Participant agrees to the following as material and indivisible
consideration for this Award:

        (a) Fiduciary Duty. During his or her employment with the Company the
Participant shall devote his or her full energies, abilities, attention and
business time to the performance of his or her job responsibilities and shall
not engage in any activity which conflicts or interferes with, or in any way
compromises, his or her performance of such responsibilities.

        (b) Confidential Information. The Participant recognizes that by virtue
of his or her employment with the Company, he or she will be granted otherwise
prohibited access to confidential information and proprietary data which are not
known to the Company's competitors. This information (the "Confidential
Information") includes, but is not limited to, current and prospective
customers; the identity of key contacts at such customers; customers'
particularized preferences and needs; marketing strategies and plans; financial
data; personnel data; compensation data; proprietary procedures and processes;
and other unique and specialized practices, programs and plans of the Company
and its customers and prospective customers. The Participant recognizes that
this Confidential Information constitutes a valuable property of the Company,
developed over a significant period of time and at substantial expense.
Accordingly, the Participant agrees that he or she shall not, at any time during
or after his or her employment with the Company, divulge such Confidential
Information or make use of it for his or her own purposes or the purposes of any
person or entity other than the Company.

        (c) Non-Solicitation of Customers. The Participant recognizes that by
virtue of his or her employment with the Company he or she will be introduced to
and involved in the solicitation and servicing of existing customers of the
Company and new customers obtained by the Company during his or her employment.
The Participant understands and agrees that all efforts expended in

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Restricted Shares Award Agreement
DDi Corp.
2005 Stock Incentive Plan
Page 3

soliciting and servicing such customers shall be for the permanent benefit of
the Company. The Participant further agrees that during his or her employment
with the Company the Participant will not engage in any conduct which could in
any way jeopardize or disturb any of the Company's customer relationships. The
Participant also recognizes the Company's legitimate interest in protecting, for
a reasonable period of time after his or her employment with the Company, the
Company's customers. Accordingly, the Participant agrees that, for a period
beginning on the date hereof and ending one (1) year after termination of
Participant's employment with the Company, regardless of the reason for such
termination, the Participant shall not, directly or indirectly, without the
prior written consent of the Chairman of the Company, market, offer, sell or
otherwise furnish any products or services similar to, or otherwise competitive
with, those offered by the Company to any customer of the Company.

        (d) Non-Solicitation of Employees. The Participant recognizes the
substantial expenditure of time and effort which the Company devotes to the
recruitment, hiring, orientation, training and retention of its employees.
Accordingly, the Participant agrees that, for a period beginning on the date
hereof and ending two (2) years after termination of Participant's employment
with the Company, regardless of the reason for such termination, the Participant
shall not, directly or indirectly, for himself or herself or on behalf of any
other person or entity, solicit, offer employment to, hire or otherwise retain
the services of any employee of the Company.

        (e) Survival of Commitments; Potential Recapture of Award and Proceeds.
The Participant acknowledges and agrees that the terms and conditions of this
Section 6 regarding confidentiality and non-solicitation shall survive both (i)
the termination of Participant's employment with the Company for any reason, and
(ii) the termination of the Plan, for any reason. The Participant acknowledges
and agrees that the grant of Restricted Shares in this Award Agreement is just
and adequate consideration for the survival of the restrictions set forth
herein, and that the Company may pursue any or all of the following remedies if
the Participant either violates the terms of this Section or succeeds for any
reason in invalidating any part of it (it being understood that the invalidity
of any term hereof would result in a failure of consideration for the Award):

            (i)   declaration that the Award is null and void and of no further
                  force or effect;

            (ii)  recapture of any cash paid or Shares issued to the
                  Participant, or any designee or beneficiary of the
                  Participant, pursuant to the Award;

            (iii) recapture of the proceeds, plus reasonable interest, with
                  respect to any Shares that are both issued pursuant to this
                  Award and sold or otherwise disposed of by the Participant, or
                  any designee or beneficiary of the Participant.

The remedies provided above are not intended to be exclusive, and the Company
may seek such other remedies as are provided by law, including equitable relief.

        (f) Acknowledgement. The Participant acknowledges and agrees that his or
her adherence to the foregoing requirements will not prevent him or her from
engaging in his or her

<PAGE>

Restricted Shares Award Agreement
DDi Corp.
2005 Stock Incentive Plan
Page 4

chosen occupation and earning a satisfactory livelihood following the
termination of his or her employment with the Company.

7. SECTION 83(B) ELECTION NOTICE. If you make an election under Section 83(b) of
the Internal Revenue Code of 1986, as amended, with respect to the Shares
underlying your Restricted Shares (a "Section 83(b) election"), you agree to
provide a copy of such election to the Company within 10 days after filing that
election with the Internal Revenue Service. Exhibit C contains a suggested form
of Section 83(b) election.

8. SHAREHOLDER APPROVAL CONDITION. Notwithstanding anything to the contrary
contained herein or in the Plan and pursuant to Section 20 of the Plan, this
Award Agreement is expressly conditioned on the Plan being approved by the
shareholders of the Company. Accordingly, no Shares shall be delivered hereunder
until such approval has been obtained, and this Award Agreement shall become
null, void, and of no force or effect if such approval is not received within
the period set forth in Section 20 of the Plan.

9. TRANSFER. This Award Agreement may not be sold, pledged, or otherwise
transferred without the prior written consent of the Committee.

10. DESIGNATION OF BENEFICIARY. Notwithstanding anything to the contrary
contained herein or in the Plan, following the execution of this Award
Agreement, you may expressly designate a beneficiary (the "Beneficiary") to your
interest, if any, in the Restricted Shares awarded hereby. You shall designate
the Beneficiary by completing and executing a designation of beneficiary
agreement substantially in the form attached hereto as Exhibit D (the
"Designation of Beneficiary") and delivering an executed copy of the Designation
of Beneficiary to the Company.

11. NOTICES. Any notice or communication required or permitted by any provision
of this Award Agreement to be given to you shall be in writing and shall be
delivered personally or sent by certified mail, return receipt requested,
addressed to you at the last address that the Company had for you on its
records. Each party may, from time to time, by notice to the other party hereto,
specify a new address for delivery of notices relating to this Award Agreement.
Any such notice shall be deemed to be given as of the date such notice is
personally delivered or properly mailed.

12. BINDING EFFECT. Except as otherwise provided in this Award Agreement or in
the Plan, every covenant, term, and provision of this Award Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective
heirs, legatees, legal representatives, successors, transferees, and assigns.

13. MODIFICATIONS. This Award Agreement may be modified or amended at any time
by the Committee, provided that your consent must be obtained for any
modification that adversely alters or impairs any rights or obligations under
this Award Agreement, unless there is an express Plan provision permitting the
Committee to act unilaterally to make the modification.

14. HEADINGS. Headings shall be ignored in interpreting this Award Agreement.

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Restricted Shares Award Agreement
DDi Corp.
2005 Stock Incentive Plan
Page 5

15. SEVERABILITY. Every provision of this Award Agreement and the Plan is
intended to be severable, and any illegal or invalid term shall not affect the
validity or legality of the remaining terms.

16. GOVERNING LAW. This Award Agreement shall be interpreted, administered and
otherwise subject to the laws of the State of Montana (disregarding any
choice-of-law provisions).

17. COUNTERPARTS. This Award Agreement may be executed by the parties hereto in
separate counterparts, each of which when so executed and delivered shall be an
original, but all such counterparts shall together constitute the same
instrument.

18. RESTRICTIONS ON TRANSFER. This Award Agreement may not be sold, pledged, or
otherwise transferred without the prior written consent of the Committee.
Notwithstanding the foregoing, the Participant may transfer this Award (i) by
instrument to an inter vivos or testamentary trust (or other entity) in which
each beneficiary is a permissible gift recipient, as such is set forth in
subsection (ii) of this Section 16, or (ii) by gift to charitable institutions
or by gift or transfer for consideration to any of the following relatives of
the Participant (or to an inter vivos trust, testamentary trust or other entity
primarily for the benefit of the following relatives of the Participant): any
child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former
spouse, domestic partner, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law, and shall include
adoptive relationships. Any transferee of the Participant's rights shall succeed
and be subject to all of the terms of this Award Agreement and the Plan.

           BY YOUR SIGNATURE BELOW, along with the signature of the Company's
representative, you and the Company agree that the Restricted Shares are awarded
under and governed by the terms and conditions of this Award Agreement and the
Plan.

                                 DDI CORP.

                                 By: ____________________________________
                                     Name:
                                     Title:

                                 PARTICIPANT

                                 The undersigned Participant hereby accepts the
                                 terms of this Award Agreement and the Plan.

                                 By: ____________________________________

                                     Name of Participant: ___________________exv10w8xay

 

CONFORMED COPY

Exhibit 10.8(a)

1
September 2005

AGREEMENT FOR THE SALE AND PURCHASE OF THE ENTIRE ISSUED SHARE CAPITAL OF
TRAVELEX ATMS LIMITED

TRM

	(1)	 	TRAVELEX UK LIMITED AND SNAX 24 CORPORATION LIMITED
	 
	(2)	 	TRM SERVICES LIMITED
	 
	(3)	 	TRM CORPORATION

 

 

Contents

	 	 	 	 	 
	Clause	 	Page	 
	1. DEFINITIONS AND INTERPRETATION
	 	 	1	 
	 
	 	 	 	 
	2. AGREEMENT FOR SALE
	 	 	12	 
	 
	 	 	 	 
	3. CONDITIONS
	 	 	13	 
	 
	 	 	 	 
	4. BETWEEN EXCHANGE AND COMPLETION
	 	 	14	 
	 
	 	 	 	 
	5. BANK OF AMERICA UNDERTAKING AND ESCROW ARRANGEMENTS
	 	 	16	 
	 
	 	 	 	 
	6. CONSIDERATION
	 	 	17	 
	 
	 	 	 	 
	7. COMPLETION ACCOUNTS
	 	 	19	 
	 
	 	 	 	 
	8. APPOINTMENT OF INDEPENDENT ACCOUNTANTs
	 	 	20	 
	 
	 	 	 	 
	9. COMPLETION
	 	 	22	 
	 
	 	 	 	 
	10. GUARANTEES AND INDEBTEDNESS
	 	 	25	 
	 
	 	 	 	 
	11. WARRANTIES
	 	 	28	 
	 
	 	 	 	 
	12. TAX
	 	 	31	 
	 
	 	 	 	 
	13. PROTECTION OF THE INTERESTS OF THE BUYER
	 	 	31	 
	 
	 	 	 	 
	14. GUARANTEE
	 	 	34	 
	 
	 	 	 	 
	15. PAYMENTS AND INTEREST
	 	 	36	 
	 
	 	 	 	 
	16. BOOKS AND RECORDS
	 	 	37	 
	 
	 	 	 	 
	17. ASSIGNMENT
	 	 	37	 
	 
	 	 	 	 
	18. ANNOUNCEMENTS AND CONFIDENTIALITY
	 	 	38	 
	 
	 	 	 	 
	19. COSTS
	 	 	38	 
	 
	 	 	 	 
	20. NOTICES
	 	 	38	 
	 
	 	 	 	 
	21. THIRD PARTY RIGHTS
	 	 	39	 
	 
	 	 	 	 
	22. OBLIGATIONS AFTER COMPLETION AND FURTHER ASSURANCE
	 	 	40	 
	 
	 	 	 	 
	23. NO MERGER
	 	 	40	 
	 
	 	 	 	 
	24. COUNTERPARTS
	 	 	40	 

 

 

	 	 	 	 	 
	Clause	 	Page	 
	25. ENTIRE AGREEMENT
	 	 	41	 
	 
	 	 	 	 
	26. GOVERNING LAW AND JURISDICTION
	 	 	41	 
	 
	 	 	 	 
	SCHEDULE 1
	 	 	 	 
	Details of the Company
	 	 	42	 
	 
	 	 	 	 
	SCHEDULE 2
	 	 	 	 
	Warranties
	 	 	 	 
	Part 1: General
	 	 	43	 
	Part 2: Accounts, Financial, Banking and Current Trading
	 	 	45	 
	Part 3: Compliance and Litigation
	 	 	48	 
	Part 4: Contracts
	 	 	52	 
	Part 5: Assets
	 	 	55	 
	Part 6: Sites and Environment
	 	 	57	 
	Part 7: Pensions
	 	 	58	 
	Part 8: Employment
	 	 	60	 
	Part 9: Intellectual Property
	 	 	62	 
	Part 10: Information Technology
	 	 	64	 
	 
	 	 	 	 
	SCHEDULE 3
	 	 	 	 
	Tax
	 	 	 	 
	Part 1: Tax definitions and interpretation
	 	 	66	 
	Part 2: Tax Warranties
	 	 	73	 
	Part 3: Tax Covenant
	 	 	77	 
	Part 4: Miscellaneous, including exclusions and limitations, conduct of claims and payments
	 	 	80	 
	 
	 	 	 	 
	SCHEDULE 4
	 	 	 	 
	Limitations on Sellers’ Liability
	 	 	90	 
	 
	 	 	 	 
	SCHEDULE 5
	 	 	 	 
	Conduct of Business Pending Completion
	 	 	97	 
	 
	 	 	 	 
	SCHEDULE 6
	 	 	 	 
	Confidential
Treatment
	 	 	100	 
	 
	 	 	 	 
	SCHEDULE 7
	 	 	 	 
	Confidential
Treatment
	 	 	100	 
	 
	 	 	 	 
	SCHEDULE 8
	 	 	 	 
	Confidential
Treatment
	 	 	100	 
	 
	 	 	 	 
	SCHEDULE 9
	 	 	 	 
	Confidential
Treatment
	 	 	100	 

 

 

Agreed Form Documents

Bank of America Undertaking

Business Sale Agreement

Disclosure Letter

Escrow Agreement

Indemnity for missing share certificates

Minutes of the Buyer

Minutes of the Seller

Resignation of directors and secretary

Termination Agreement

Transitional Services Agreement

 

 

THIS AGREEMENT is made on 1 September 2005

BETWEEN:

	(1)	 	TRAVELEX UK LIMITED, a company incorporated in England and Wales (registered number 1985596)
whose registered office is at 65 Kingsway, London WC2B 6TB and SNAX 24 CORPORATION LIMITED, a
company incorporated in England and Wales (registered number 2787267) whose registered office
is at 110 Cannon Street, London EC4N 6AR (together, the “Sellers”);
	 
	(2)	 	TRM SERVICES LIMITED, a company incorporated in England and Wales (registered number 5542372)
whose registered office is at 30 Old Burlington Street, London W1S 3NL (the “Buyer”); and
	 
	(3)	 	TRM CORPORPATION, a corporation organised and existing under the laws of the state of Oregon,
United States of America whose principal place of business is at 5208 NE 122nd
Avenue, Portland, Oregon 97230, USA (the “Guarantor”).

RECITALS:

	(A)	 	The Company (as defined below) is a private company limited by shares. Further details about
the Company are set out in schedule 1.
	 
	(B)	 	The Sellers wish to sell and the Buyer wishes to buy all of the issued share capital of the
Company on the terms and conditions of this Agreement.
	 
	(C)	 	The Guarantor has agreed to guarantee the obligations of the Buyer on the terms and
conditions of this Agreement.

IT IS AGREED as follows:

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	In this Agreement, the following words and expressions shall have the following meanings
unless the context requires otherwise:

	 	 	 
	“Accounts”

	 	the audited individual accounts (within the
meaning of section 226 Companies Act 1985) of
the Company for the financial year ended on the
Accounts Date, a copy of which is annexed to

1

 

	 	 	 
	 

	 	this Agreement and marked “A”;
	 
	 	 
	“Accounts Date”

	 	31 December 2004;
	 
	 	 
	“Assets”

	 	has the meaning given to it in the definitions
contained in the Business Sale Agreement;
	 
	 	 
	“ATM”

	 	a domestic currency dispensing automated teller
machine including any associated Housing and
software necessary to run the automated teller
machine;
	 
	 	 
	“Bank of America Undertaking”

	 	the letter, in the agreed form, to be issued to
the Sellers on the date of this Agreement by
Bank of America N.A.;
	 
	 	 
	“Borrowings”

	 	the amount of the borrowings of the Company by
way of bank loans, and other borrowed money,
overdrafts, finance and capital leases,
acceptance and documentary credit facilities
and factoring and other types of receivable
financing transactions including interest and
penalties thereon but excluding (i) the
Shareholder Loans and (ii) the Inter-Company
Debts;
	 
	 	 
	“Business”

	 	has the meaning given to it in the definitions
contained in the Business Sale Agreement;
	 
	 	 
	“Business Day”

	 	a day on which banks are open for business in
London, other than Saturday or Sunday;
	 
	 	 
	“Business Sale Agreement”

	 	the agreement in the agreed form between
Travelex UK Limited (1) TRM (ATM) Limited (2)
and TRM Corporation (3);
	 
	 	 
	“Buyer’s Accountants”

	 	the Buyer’s accountants for the time being;
	 
	 	 
	“Buyer’s Group”

	 	the Buyer, any ultimate parent undertaking of

2

 

	 	 	 
	 

	 	the Buyer for the time being and all direct or
indirect subsidiary undertakings for the time
being of any such parent undertaking;
	 
	“Buyer’s Solicitors”

	 	Davenport Lyons of 30 Old Burlington Street,
London W1S 3NL;
	 
	 	 
	“CAA”

	 	the Capital Allowances Act 2001;
	 
	 	 
	“Company”

	 	Travelex ATMs Limited, a private company
limited by shares incorporated in England and
Wales with registered number 4046739;
	 
	 	 
	“Companies Act 1985”

	 	the Companies Act 1985;
	 
	 	 
	“Completion”

	 	completion of the sale and purchase of the
Shares in accordance with this Agreement;
	 
	 	 
	“Completion Accounts”

	 	a pro-forma statement of certain assets and
certain liabilities of the Company as at 5.30
p.m. on the Completion Date, as listed in each
case in part 1 of schedule 9 (Completion
Accounts);
	 
	 	 
	“Completion Date”

	 	the date on which Completion takes place;
	 
	 	 
	“Conditions”

	 	the conditions listed in clause 3.1;
	 
	 	 
	“Confidential Information”

	 	all confidential information and trade secrets
relating exclusively to the business of the
Company including all financial, marketing and
technical information, ideas, concepts,
technology, processes and knowledge together
with lists or details of customers, suppliers,
prices, discounts, margins, information
relating to research and development, current
trading performance and future business
strategy and any information derived from any
of them and subsisting at the Completion Date,
but excluding any such information which is in
the public

3

 

	 	 	 
	 

	 	domain other than by reason of any
breach by any party bound thereby of any
confidentiality undertaking in each case to the
extent confidential and relating exclusively to
the business of the Company;
	 
	 	 
	“Disclosure Letter”

	 	the disclosure letter in the agreed form from
the Sellers to the Buyer, dated with the date
of this Agreement, together with the documents
attached to it;
	 
	 	 
	“Employees”

	 	the individuals employed or engaged by the
Company and/or by Travelex UK Limited at
Completion which at the date of this Agreement
are set out in schedule 8;
	 
	 	 
	“Encumbrance”

	 	a mortgage (fixed or floating), charge, pledge,
lien, option, restriction, hypothecation,
guarantee, trust, right of set-off, right of
first refusal, right of pre-emption or other
third party right (legal or equitable),
interest or claim of any kind including any
assignment by way of security, reservation of
title or other security interest of any kind,
howsoever created or other arrangement having
similar effect;
	 
	 	 
	“End Date”

	 	(i) the date falling 45 days after the date on
which the Requested Information (as defined in
clause 4.3) is
supplied to the Buyer; or (ii) (if earlier) 30
November 2005; or (iii) such later date as the
Sellers and the Buyer may in writing agree or
as is determined by clause 4.8;
	 
	 	 
	“Environment”

	 	the natural and man-made environment and all or
any of the following media, namely air
(including air within buildings and air within
other natural or man-made structures above or
below ground), water (including water under or
within

4

 

	 	 	 
	 

	 	land or in drains or sewers and inland
waters), land and any living organisms or
systems supported by those media;
	 
	 	 
	“Environmental Law”

	 	all applicable laws, regulations, directives,
statutes, subordinate legislation, common law,
civil codes and other national and local laws,
all judgments, orders, instructions or awards
of any court or competent authority and all
codes of practice, industry agreements and
guidance notes which primarily serve to protect
the Environment and includes all laws relating
to actual or threatened emissions, seepages,
discharges, escapes, releases or leaks of
pollutants, contaminants or Hazardous
Substances;
	 
	 	 
	“Escrow Account”

	 	the bank account to be opened in the joint
names of the Sellers’ Solicitors and the
Buyer’s Solicitors in accordance with the
Escrow Agreement;
	 
	 	 
	“Escrow Agreement”

	 	the agreement, in the agreed form, between the
Sellers, the Buyer, TRM (ATM) Limited, the
Sellers’ Solicitors and the Buyer’s Solicitors
to be entered into pursuant to clause 5.1;
	 
	 	 
	“Group”

	 	the Buyer’s Group or either Seller’s Group, as
the context requires;
	 
	 	 
	“Guaranteed Contracts”

	 	the Master Agreement dated 15 January 2002
between the Company (1) TotalFinaElf UK Limited
(2) and Travelex UK Limited (3) and the Master
Agreement dated 5 October 2001 between the
Company (1) United Cinemas International (2)
and Travelex UK Limited (3);

5

 

	 	 	 
	“Hazardous Substances”

	 	any substance or organism which alone or in
combination with others may cause harm or
damage to the Environment, human health and
safety, flora or fauna and includes without
limitation, any hazardous or toxic materials,
pollutants and wastes;
	 
	 	 
	“Housing”

	 	any cabinet, kiosk, acoustic hood, shelter or
booth or similar things (including any side
panels, door, signage, lighting, metal frame,
back plate or other configurations) forming the
structure of an ATM;
	 
	 	 
	“ICTA”

	 	the Income and Corporation Taxes Act 1988;
	 
	 	 
	“Independent Accountants”

	 	the independent firm of chartered accountants
to whom matters are referred in accordance with
clause 8.1;
	 
	 	 
	“Intellectual Property Rights”

	 	all Registered Intellectual Property Rights and
all inventions (whether patentable or not),
design rights, database rights, copyright,
moral rights, semiconductor topography rights,
unregistered trade and service marks, logos,
get-up and trade names and the goodwill
attaching to them, Know-How, and any rights or
forms of protection of a similar nature and
having equivalent or similar effect to any of
them which subsist anywhere in the world;
	 
	 	 
	“Inter-Company Debts”

	 	all monies owing by the Company to either
Seller or any member of either Seller’s Group,
excluding (a) the Shareholder Loans and (b) any
amounts owing to Snax 24 Corporation Limited in
relation to trading balances, which latter
amount, for the avoidance of doubt, shall not
be paid off at Completion;

6

 

	 	 	 
	“Know-How”

	 	all know-how, trade secrets and confidential
information, in any form (including paper,
electronically stored data, magnetic media,
film and microfilm) including, without
limitation, 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, mark-ups, future business strategy,
tenders, price sensitive information, market
research reports and business development and
planning reports but always excluding any
Confidential Information;
	 
	 	 
	“Losses”

	 	in relation to any matter, all liabilities,
losses, claims, damages, fines, penalties,
costs and expenses relating to that matter
(including for the avoidance of doubt all
reasonable and properly incurred legal and
professional costs);
	 
	 	 
	“Management Accounts”

	 	the unaudited management accounts of the
Company comprising a balance sheet as at 30
June 2005 a profit and loss account for the
period which began on 1 January 2005 and ended
on 30 June 2005, a copy of which is annexed to
this Agreement marked “B”;
	 
	 	 
	“Net Current Liability Statement”

	 	the statement of the Net Current Liability
Value in the format set out in part 3 of
schedule 9 (Completion Accounts);
	 
	 	 
	“Net Current Liability Value”

	 	the amount (if any) in pounds sterling by which

7

 

	 	 	 
	 

	 	the aggregate value of those liabilities of the
Company as at the Completion Date that are
listed in part 1 of schedule 9 (Completion
Accounts) exceed the aggregate value of those
assets of the Company as at the Completion Date
that are listed in part 1 of schedule 9
(Completion Accounts), as shown in the
Completion Accounts (and for the avoidance of
doubt, the amount of that excess (if any) shall
be expressed as a positive rather than as a
negative figure), and provided that (a) if the
aggregate amount of those liabilities is equal
to the aggregate amount of those assets, the
Net Current Liability Value shall be zero; and
(b) if the aggregate amount of those
liabilities is less than the aggregate amount
of those assets then the amount of that
shortfall shall be expressed as a negative
(rather than as a positive) amount, so that
(for illustrative purposes only) if the
aggregate amount of those liabilities exceeds
the aggregate value of those assets by
£100,000, the Net Current Liability Value shall
be £100,000 and if the aggregate amount of
those liabilities is less than the aggregate
value of those assets by £100,000, the Net
Current Liability Value shall be –(£100,000);
	 
	 	 
	“Pension Scheme”

	 	the scheme known as the Travelex Group Personal
Pension Plan operated by Scottish Equitable
plc;
	 
	 	 
	“Previous Accounts”

	 	the audited individual accounts (within the
meaning of section 226 Companies Act 1985) of
the Company for the two financial years
immediately preceding the financial year ended
on the Accounts Date;

8

 

	 	 	 
	“Recognised Investment Exchange”

	 	has the meaning set out at section 285 of the
Financial Services and Markets Act 2000;
	 
	 	 
	“Registered Intellectual
Property Rights”

	 	all patents, utility models, registered
designs, registered copyrights, plant variety
rights, registered trade and service marks and
the goodwill attaching to them, domain names
and applications for registration and rights to
grant of them and any rights or forms of
protection of a similar nature anywhere in the
world;
	 
	 	 
	“Relief”

	 	has the meaning given to it in part 1 of
schedule 3;
	 
	 	 
	“Repeated Warranties”

	 	the Warranties, other than those set out in
paragraph 1.4.3 of
part 2 of schedule 2, as such warranties
continue to be repeated in accordance with
clause 11.1
between the date of this Agreement and the
Completion Date (or if earlier the date on
which this Agreement terminates) provided that,
for the purposes of this definition, references
to “Employees” in the Warranties set out in
part 8 of schedule 2 shall be regarded as
references to employees of the Company on the
date of this Agreement;
	 
	 	 
	“Sellers’ Accountants”

	 	the Sellers’ accountants for the time being;
	 
	 	 
	“Seller’s Group”

	 	in relation to Travelex UK Limited, Travelex
Holdings Limited and all direct and indirect
subsidiary undertakings from time to time of
Travelex Holdings Limited and, in relation to
Snax 24 Corporation Limited, itself and all of
its direct and indirect subsidiary undertakings
from time to time;
	 
	 	 
	“Sellers’ Solicitors”

	 	Olswang of 90 High Holborn, London

9

 

	 	 	 
	 

	 	WC1V 6XX;
	 
	 	 
	“Shareholder Loans”

	 	the outstanding loans made by each Seller to
the Company, such loans being (as at the date
of this Agreement) in the amount of £281,308
due to Snax 24 Corporation Limited and £341,379
due to Travelex UK Limited, including principal
and accrued interest, fees, costs and expenses
(if any);
	 
	 	 
	“Shares”

	 	the issued shares in the capital of the Company;
	 
	 	 
	“Site Agreements”

	 	shall have the meaning given to it in paragraph
1.1 of part 6 of
schedule 2;
	 
	 	 
	“Tax”
or “Taxation”

	 	has the meaning given to it in part 1 of
schedule 3;
	 
	 	 
	“Tax Authority”

	 	has the meaning given to it in part 1 of
schedule 3;
	 
	 	 
	“Tax Claim”

	 	a claim under the Tax Covenant or for any
breach of any of the Tax Warranties;
	 
	 	 
	“Tax Covenant”

	 	the tax covenants given in favour of the Buyer
set out in part 3 of schedule 3;
	 
	 	 
	“Tax Warranties”

	 	the warranties of the Sellers relating to Tax
given under clause 11.1
which are set out in part 2 of schedule
3;
	 
	“TCGA”

	 	the Taxation of Chargeable Gains Act 1992;
	 
	 	 
	“Termination Agreement”

	 	the agreement in the agreed form to be entered
into on the date of this Agreement between
Travelex UK Limited (1) Snax 24 Corporation
Limited (2) and the Company (3) terminating the
share subscription and shareholders agreement
dated 6 March 2001 in relation to the Company;

10

 

	 	 	 
	“Transitional Services Agreement”

	 	the transitional services agreement in the
agreed form to be entered into between Travelex
UK Limited, the Buyer and the Company on the
date of this Agreement;
	 
	 	 
	“Travelex Holdings Limited”

	 	a company incorporated in England and Wales
(registered number 4090247) whose registered
office is at 65 Kingsway, London WC2B 6TB;
	 
	 	 
	“VAT”

	 	value added tax as provided for in VATA, and
any tax imposed in substitution for it;
	 
	 	 
	“VATA”

	 	the Value Added Tax Act 1994;
	 
	 	 
	“Warranties”

	 	the warranties of the Sellers given under
clause 11.1 which
are set out in schedule 2, and the Tax
Warranties; and
	 
	 	 
	“Warranty Claim”

	 	a claim for any breach of any of the Warranties
other than a Tax Warranty.

	1.2	 	In this Agreement, unless the context requires otherwise:

	 	1.2.1	 	any reference to the parties or a recital, clause or schedule is to the
parties or the relevant recital, clause or schedule of or to this Agreement, and any
reference in a schedule to a paragraph is to a paragraph of that schedule or, where
relevant, that part of that schedule;
	 
	 	1.2.2	 	the clause headings are included for convenience only and shall not affect the
interpretation of this Agreement;
	 
	 	1.2.3	 	use of the singular includes the plural and vice versa;
	 
	 	1.2.4	 	use of any gender includes the other genders;
	 
	 	1.2.5	 	“financial year”, “parent undertaking” and “subsidiary undertaking” have the
meanings given to them by sections 223 and 258 of the Companies Act 1985 respectively;

11

 

	 	1.2.6	 	any reference to a statute, statutory provision or subordinate legislation
(“legislation”) shall be construed as referring to that legislation as amended and in
force from time to time and to any legislation which re-enacts or consolidates (with or
without modification) any such legislation except to the extent that any amendment,
re-enactment or consolidation on or after the date of this Agreement would increase the
liability of any party under this Agreement;
	 
	 	1.2.7	 	any reference to a document being “in the agreed form” means a document in a
form agreed by the parties and either entered into on the date of this Agreement by the
relevant parties or initialled by the parties or on their behalf by the Sellers’
Solicitors and the Buyer’s Solicitors, in the latter case with such amendments as they
may subsequently agree;
	 
	 	1.2.8	 	if a period of time is specified and dates from a given day or the day of an
act or event, it shall be calculated exclusive of that day;
	 
	 	1.2.9	 	a person shall be deemed to be connected with another if that person is
connected with another within the meaning of section 839 of ICTA;
	 
	 	1.2.10	 	references to writing shall include any modes of reproducing words in a legible and
non-transitory form (but not email);
	 
	 	1.2.11	 	reference to a balance sheet or profit and loss account shall include a reference to
any note forming part of it; and
	 
	 	1.2.12	 	references to this Agreement include this Agreement as amended or supplemented in
accordance with its terms.

	1.3	 	The schedules and recitals form part of this Agreement and shall have effect as if set out in
full in the body of this Agreement, and any reference to this Agreement includes the schedules
and recitals.
	 
	1.4	 	Save as otherwise specifically provided, all warranties, undertakings and other obligations
of each Seller under this Agreement are several and not joint or joint and several.
	 
	2.	 	AGREEMENT FOR SALE
	 
	2.1	 	Subject to the terms of this Agreement, each Seller shall sell or cause to be sold and the
Buyer shall buy those Shares set out against that Seller’s name in schedule 1 free from all
Encumbrances and with full title guarantee.

12

 

	2.2	 	The Shares shall be sold pursuant to clause 2.1 with all rights attaching to them on or after
the date of this Agreement, including the rights to receive all dividends and other
distributions declared, paid or made on or after the date of this Agreement.
	 
	2.3	 	Each Seller hereby waives all rights of pre-emption arising on the sale of the Shares,
whether conferred by the articles of association of the Company or in any other way.
	 
	3.	 	CONDITIONS
	 
	3.1	 	Completion is subject to each of the following conditions being satisfied or (where
permitted) waived on or before 5.30 p.m. (London time) on the End Date;

	 	3.1.1	 	unconditional written consent from each counterparty to the contracts set out
in schedule 7 to a change of control of the Company or to an assignment of the relevant
contract to TRM (ATM) Limited or the Buyer (as appropriate) having been obtained (or
deemed obtained in accordance with clause 3.2);
	 
	 	3.1.2	 	the funding of the consideration for the purchase of the Shares having been
obtained on terms and conditions satisfactory to the Buyer.

	3.2	 	The Sellers shall use all reasonable endeavours to procure that the Condition set out in
clause 3.1.1 is satisfied on or before the End Date. The Buyer shall provide all reasonable
information relating to it and to the Buyer’s Group reasonably requested by any counterparty
such as is referred to in clause 3.1.1, and for the purposes of obtaining the consents
referred to in that clause, the Guarantor shall (if so, requested by any such counterparty)
offer a reasonable guarantee of the obligations of the Company or either Seller (as the case
may be) under the relevant contract. If the Guarantor fails to supply any such guarantee or
the Buyer is in material breach of its obligations under the previous sentence, then without
prejudice to the other rights of the Sellers, the consent of the relevant counterparty shall
be deemed obtained for the purposes of clause 3.1.1 if such failure is the reason for the
consent not having been obtained. The Buyer shall take all reasonable steps to obtain the
funding referred to in clause 3.1.2 on or before the End Date provided that the Buyer shall be
under no obligation to continue to raise the funding to the extent that (a) such funding
ceases to be viable because of a material adverse change affecting stock markets or interest
rates or (b) to the extent that funding on terms acceptable to
the proposed suppliers of financing would be likely to result in the share price of the
Guarantor falling by more US$1.55. The Buyer shall not be obliged to accept the offer of
any funds unless the funding is available to the Buyer on terms reasonably believed by it to
be commercially reasonable.

13

 

	3.3	 	The Buyer may by notice to the Sellers waive the Condition set out in clause 3.1.1.
	 
	3.4	 	If the Conditions have not been fulfilled, or waived where permitted by clause 3.3, on or
before the End Date, the provisions of this Agreement shall terminate and no party shall have
any further rights or obligations under this Agreement, including accrued rights and
obligations at the time of termination (other than accrued rights and obligations in respect
of breaches of clause 3.2, which accrued rights and obligations shall not be affected by
termination), save that clauses 5.2, 5.3, 5.4, 14, 17 to 20 and 25 to 26 shall remain binding
on the parties in accordance with their terms.
	 
	4.	 	BETWEEN EXCHANGE AND COMPLETION
	 
	4.1	 	During the period between the signing of this Agreement and ending at Completion or the
termination of this Agreement (whichever is the earlier) the Sellers shall comply with the
provisions set out in schedule 5.
	 
	4.2	 	The Sellers shall procure that during the period beginning on the signing of this Agreement
and ending at Completion or the termination of this Agreement (whichever is earlier) the Buyer
and any persons authorised by it shall be given reasonable access during normal business hours
and on reasonable notice to the employees, premises, plant, machinery, books of account,
records and documents of the Company and the directors and employees of the Company shall be
instructed to give as soon as reasonably practicable to the Buyer and any persons authorised
by it all information in relation to the Company that the Buyer may reasonably request.
Without limiting the previous sentence, upon receipt of the Written Request from the Buyer,
the Sellers shall provide the Buyer with the Requested Information as soon as reasonably
practicable and shall, where necessary and as soon as reasonably practicable, instruct
PricewaterhouseCoopers LLP to undertake such work as is reasonably necessary, at the Buyer’s
cost to provide the Requested Information in a timely manner.
	 
	4.3	 	Upon receipt of the Requested Information by the Buyer, the Sellers shall be deemed to have
complied with their obligation in the second sentence of clause 4.2. For the purposes of
clauses 4.2 and 4.3:

	 	4.3.1	 	“Written Request” means the request in writing that definitively lists all the
financial information and financial statements in relation to the Company and the
Business, for
acquired assets or businesses (or assets or businesses whose acquisition is
probable) that the Buyer requires in order to be able to prepare and issue:

	 	4.3.1.1	 	registration statements (including a Form S-1 or Form S-3 registration
statements);

14

 

	 	4.3.1.2	 	other filings with respect to the offer and sale of the Guarantor’s
securities for the purposes of the fundraising referred to in clause 3.1.2; or
	 
	 	4.3.1.3	 	periodic or other reports disclosing the acquisition of such assets or
businesses;

in order to raise the consideration referred to in clause 3.1.2; and

	 	4.3.2	 	“Requested Information” means the information requested by the Buyer in the
Written Request to the extent that the same is information which is necessary under
relevant law or regulations to enable the Buyer to prepare and issue the documents
referred to in clauses 4.3.1.1 to 4.3.1.3.

	4.4	 	The Sellers shall indemnify the Buyer in respect of any reduction in the value of the Shares
arising as a result of all breaches of the Repeated Warranties if (and only if) the aggregate
amount of that reduction, and the aggregate reduction in the value of the Business and the
Assets caused by all breaches of the Repeated Warranties as defined in the Business Sale
Agreement, exceeds £250,000 in which event the Sellers shall subject to clauses 4.6 and 4.8
indemnify the Buyer for the entire amount of the reduction in the value of the Shares
including any amount taken into account in reaching the £250,000 threshold.

	4.5	 	If following the date of this Agreement, but before Completion, or any termination of this
Agreement the Buyer becomes aware of any breach of the Repeated Warranties entitling it to be
indemnified under clause 4.4, then subject to clause 4.6 the Buyer shall within five Business
Days of becoming aware of the relevant breach give notice to the Sellers giving its best
estimate of the diminution in the value of the Shares caused by the breach or breaches in
question, and requiring that the amount of the specified diminution in value shall at
Completion be deducted from the purchase price payable in accordance with clause 9 and shall
instead be deposited into the Escrow Account and only be released from such account in
accordance with the terms of the Escrow Agreement.

	4.6	 	The Buyer shall have no rights to be indemnified under clause 4.4 or otherwise in respect of
any breach of the Repeated Warranties resulting from:

	 	4.6.1	 	any fact or matter disclosed in the Disclosure Letter on the basis set out in
clause 11.1 or any claim made or proceedings threatened by any third party arising out
of any fact or matter disclosed in the Disclosure Letter on such basis; or

15

 

	 	4.6.2	 	any change in stock markets, interest rates, exchange rates, commodity prices
or other general economic conditions generally affecting the industry in which the
business carried on by the Company operates.

	4.7	 	The liability of the Sellers under this clause 4 shall be joint and several.

	4.8	 	The Sellers shall not be liable in respect of a breach of a Repeated Warranty if, on or
before the date falling 10 Business Days after the date on which notice of that breach is
received by the Sellers under clause 4.5, the Sellers have remedied the relevant breach or
prevented the Buyer from suffering any potential loss in respect of the subject matter of that
breach or caused any loss which could be so suffered by the Buyer to be made good. The Buyer
shall comply with all reasonable requests made by the Sellers at the Sellers’ cost during that
period for the purposes of so remedying any such breach or preventing any such loss. If any
period of time is used by the Sellers to remedy the breach or remedy any breach under clause
5.6 of the Business Sale Agreement the End Date shall be extended by the same period of time.

5. BANK OF AMERICA UNDERTAKING AND ESCROW ARRANGEMENTS

	5.1	 	On the date of this Agreement the Buyer shall procure that the Bank of America Undertaking is
issued to the Sellers signed on behalf of the Bank of America N.A. and the Buyer and the
Sellers shall procure that the Escrow Agreement is executed.

	5.2	 	If:

	 	5.2.1	 	at any time on or after 8 October 2005 and before the End Date Completion has
not occurred and the Condition set out in 3.1.1 has been satisfied or waived; or
	 
	 	5.2.2	 	the End Date is extended to a date after 30 November 2005, then
notwithstanding the fact that the Condition set out in clause 3.1.1 has not been
satisfied or waived;

the parties agree that the sum of £1.5 million referred to in the Bank of America
Undertaking is to be paid to the Buyer’s Solicitors in accordance with the terms of the
Escrow Agreement. If Completion has not occurred by the End Date and the Condition set out
in clause 3.1.1 has been satisfied or waived then subject to clause 5.3.3 such amount shall
be paid to the Sellers in accordance with the terms of the Escrow Agreement.

	5.3	 	If:

	 	5.3.1	 	Completion occurs on or before the End Date; or

16

 

	 	5.3.2	 	the Condition set out in clause 3.1.1 has not been satisfied or waived by the End Date; or
	 
	 	5.3.3	 	the Condition set out in clause 3.1.2 has not been satisfied by the End Date
by reason of a breach by the Sellers of the second sentence of clause 4.2;

then the Sellers shall not be entitled to receive £1.5 million from the Buyer and the sum of
£1.5 million referred to in the Bank of America Undertaking shall be paid to the Buyer in
accordance with the terms of the Escrow Agreement.

	5.4	 	The parties shall promptly give appropriate instructions to the Escrow Agents (as defined in
the Escrow Agreement) to ensure that payments are made out of the Escrow Account either to
give effect to clause 5.2 or clause 5.3 or (in the case that money is deposited into the
Escrow Account under clause 4.5) to ensure that the money in question is paid to the
appropriate person(s) having regard to the outcome of the Buyer’s claim to be indemnified
under clause 4.4 by reason of breach of the Repeated Warranties.

6. CONSIDERATION

	6.1	 	The aggregate purchase price for the Shares shall be the sum of £16,251,000 (subject to
adjustment (if appropriate) under clause 10.8) which sum shall be payable to the Sellers in
cash on Completion, plus any sum payable by the Buyer and minus any sum payable to the Buyer
in accordance with clauses 6.2, 6.5 and 10.9.

	6.2	 	On the date falling five Business Days after the calculation of the Net Current Liability
Value becomes final and binding on the parties in accordance with clause 7 of this Agreement:

	 	6.2.1	 	if the Net Current Liability Value is greater than £(X+C) the Sellers shall
pay to the Buyer an amount equal to the amount by which the Net Current Liability Value
exceeds £(X+C); or
	 
	 	6.2.2	 	if the Net Current Liability Value is less than £(X-C), the Buyer shall pay to
the Sellers an amount equal to the amount by which the Net Current Liability Value is
less than £(X-C);

where:

	 	 	 	 	 	 	 
	 

	 	X =
	 	£1,000,560
	 	x  B
	 

	 	 	 	 	 	 
	 

	 	 	 	A	 	 

17

 

A = 743

B = the number of ATMs in operation as at the Completion Date

C = £25,000

together in either case with interest accruing from day to day, both before and after
judgment, from the Completion Date until the date of payment at a rate of two per cent.
above the base rate for the time being of Barclays Bank plc. All payments pursuant to this
clause shall be made by telegraphic transfer of immediately available funds to the bank
accounts specified in clause 15. The liability of the Sellers under this clause 6.2 shall be
joint and several.

	6.3	 	After 17 October 2005 but before 31 October 2005, the Sellers shall deliver to the Buyer a
list (“ATM List”) confirming the total number of ATMs of the Company and the Business which
were installed as at 17 October 2005 (the “Installed ATMs”) and highlighting any such ATMs
which were not operational as at such date. The ATM List shall be, in relation to the
operational ATMs, derived from the LINK Daily Download Report as at 5.30 pm on 17 October 2005
and as regards such operational ATMs shall be final and binding.

	6.4	 	To the extent that the ATM List identifies any non-operational ATMs, the Sellers will provide
to the Buyer on or before 2 November 2005 a copy of the LINK Daily Download Report (which
confirmation shall be final and binding) confirming which of the non-operational ATMs on the
ATM List have, by 31 October 2005 become operational, such ATMs, together with those
operational ATMs on the ATM List provided under clause 6.3 above, being together the “Total
Operational ATMs Number”.

	6.5	 	At Completion, or if later, on 7 November 2005:

	 	6.5.1	 	to the extent that the Total Operational ATMs Number is less than 1182 (“ATM
Shortfall Number”) there shall be deducted from the purchase price payable in
accordance with clause 6.1 an amount equal to the ATM Shortfall Number x £16,750 or,
(if Completion has occurred), the Sellers shall pay to the Buyer, an amount equal to
the ATM Shortfall Number x £16,750; and
	 
	 	6.5.2	 	to the extent that the Total Operational ATMs Number is more than 1182 (“ATM
Excess Number”) then the purchase price payable in accordance with clause 6.1 shall be
increased by an amount equal to the ATM Excess Number x £16,750, or (if
Completion has already occurred) the Buyer shall pay to the Sellers, an amount
equal to the ATM Excess Number x £16,750.

18

 

The liability of the Sellers to make the payment under clause 6.5.1 shall be joint and
several.

	7.	 	COMPLETION ACCOUNTS

	7.1	 	The Sellers shall use their reasonable endeavours to ensure that a draft of the Completion
Accounts is prepared as soon as possible after Completion and delivered to the Buyer on or
before the date falling 20 Business Days after Completion, together with the Net Current
Liability Statement signed by the Sellers.

	7.2	 	The Completion Accounts shall be drawn up in accordance with the accounting bases, methods
and policies set out in part 2 of schedule 9.

	7.3	 	The draft Completion Accounts and the calculation of the Net Current Liability Value set out
in the Net Current Liability Statement shall be deemed agreed by the Buyer on the date falling
10 Business Days after the date on which those documents are first delivered to the Buyer and
shall be final and binding on the parties for all purposes (and shall respectively constitute
the Completion Accounts for the purposes of this Agreement and the Net Current Liability Value
for the purposes of clause 6), unless during that period the Buyer gives notice to the Sellers
that it disagrees with the calculation of the Net Current Liability included in the Net
Current Liability Statement. Any notice so given shall include reasonable details (so far as
practicable) of the reasons for any disagreement and any suggested adjustment, together with
reasonable supporting evidence for each adjustment, including any relevant working papers.

	7.4	 	If any notice is so served by the Buyer during such 10 Business Day period, the Buyer and the
Sellers shall attempt in good faith to resolve any matters in dispute and agree a final form
of Completion Accounts and the calculation of the Net Current Liability Value on or before the
date falling 10 Business Days after the date on which the Sellers receive that notice. The
Completion Accounts and the calculation of the Net Current Liability Value so agreed by them
shall be final and binding on the parties for all purposes (and shall respectively constitute
the Completion Accounts for the purposes of this Agreement and the Net Current Liability Value
for the purposes of clause 6). In the absence of agreement between the Buyer and the Sellers
within that time period, the Independent Accountants shall be instructed to deliver a
determination of the matters in dispute and a calculation of the amount of the Net Current
Liability Value and revised Completion Accounts adjusted only to take account of the matters
determined by them. As so revised, the Completion Accounts shall then constitute the
Completion Accounts for the purposes of this Agreement.

19

 

	7.5	 	Each party shall promptly provide to the other or the other’s accountants or professional
advisers (and to the Independent Accountants) all such documents and information as may
reasonably be requested for the purpose of preparing or reviewing the Completion Accounts and
the Net Current Liability Statement. The parties’ obligations under this clause shall, without
limitation, extend to providing access to or copies of all working papers in their possession
or under their control (other than those created by their respective accountants) created in
the course of the preparation and/or review of the Completion Accounts and/or Net Current
Liability Statement, together (in the case of the Buyer) with extracts from the Company’s and
the Business’s accounting records to which the working papers relate or from which the working
papers have drawn information, and access upon reasonable notice and during normal working
hours to relevant personnel, and to relevant records and information within the possession or
under the control, of the relevant party.

	8.	 	APPOINTMENT OF INDEPENDENT ACCOUNTANTS

	8.1	 	Any matters which this Agreement provides are to be determined by the Independent Accountants
may be referred for determination by either the Sellers or the Buyer to:

	 	8.1.1	 	KPMG or (if they refuse to accept instructions) Deloitte or (if they refuse to
accept instructions) any other independent firm of chartered accountants whose identity
is agreed between the Sellers and the Buyer and whose terms of engagement are agreed to
and signed by the accountants, the Sellers and the Buyer; or
	 
	 	8.1.2	 	if no such firm is agreed or no such terms of engagement are signed on or
before the date falling 20 Business Days after the date on which a firm accepts
instructions (in the case of KPMG or Deloitte) or in any other case is first proposed
by either party to the other for the purpose, such independent firm of chartered
accountants on such terms of engagement as shall be chosen or (as the case may be)
specified on the application of either party by the President for the time being of the
Institute of Chartered Accountants in England and Wales. If any of the Sellers or the
Buyer fails to sign such terms of engagement on or before the date falling five
Business Days after the date on which such choice or (as the case may be) specification
is made, Independent Accountants shall be deemed to have been appointed and to have
determined the matter or matters to be referred to the Independent Accountants under
this clause in favour of the party who has signed the terms of engagement.

	8.2	 	The Independent Accountants:

20

 

	 	8.2.1	 	shall act as experts and not as arbitrators;
	 
	 	8.2.2	 	shall decide on the procedure (subject to clause 8.2.3) and timetable to be
followed in the determination (provided that, in any event, they shall give the Sellers
and the Buyer the opportunity of making such representations as they may reasonably
require); and
	 
	 	8.2.3	 	shall be required only to determine those matters that this Agreement provides
should be determined by them (and not any additional or separate issues subsequently
raised by the parties) and deliver such determination and any calculation, statement or
accounts required to be provided by them by this Agreement in writing to the parties on
or before the date falling 20 Business Days after the date of the appointment of the
Independent Accountants.

	8.3	 	In the absence of fraud or manifest error, the decision of the Independent Accountants and
any determination and any calculation, statement or accounts required to be provided by them
by this Agreement shall be final and binding on the parties for all purposes. The fees and
expenses of the Independent Accountants shall be paid by such party or parties as the
Independent Accountants shall determine to be appropriate in their sole discretion, having
regard to the relative merits of the arguments of each of the parties. In default of a
determination by the Independent Accountants as to fees and expenses, they shall be borne as
to 50 per cent. by the Buyer and 50 per cent. by the Sellers.

	8.4	 	The Sellers and the Buyer shall each use all reasonable endeavours to co-operate with the
Independent Accountants and to enable them to reach their determination within the time period
set by this Agreement including by co-operating with any timetable and procedure set by the
Independent Accountants. In particular, the Sellers and the Buyer shall each provide each
other and the Independent Accountants with or with access to all such documents and
information as are in their possession or under their control, and access to all relevant
personnel upon reasonable prior notice and during normal working hours, as may from time to
time be requested by the Independent Accountants in their absolute discretion. In the event
that any of the Sellers or the Buyer does not co-operate with or grant access to or supply any
document or information so requested within any time specified by the Independent Accountants,
the Independent Accountants shall be entitled to make such assumptions for the purposes of
making their determination (including any determination as to costs) as a result of that
failure to co-operate, grant access or supply such document or information as they shall in
their absolute discretion determine to be appropriate.

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	9.	 	COMPLETION

	9.1	 	Subject to clauses 9.5 to 9.8 (inclusive) Completion shall take place at the offices of the
Sellers’ Solicitors within two Business Days after all of the Conditions have been satisfied
or waived in accordance with clause 3 (or such later date as the Buyer and the Sellers shall
agree).

	9.2	 	At Completion, the Sellers shall deliver or make available to the Buyer:

	 	9.2.1	 	transfers of the Shares in favour of the Buyer or its nominee, duly executed
by the Sellers or any other registered holders;
	 
	 	9.2.2	 	the share certificates representing the Shares or an indemnity in the agreed
form for any missing share certificates;
	 
	 	9.2.3	 	the resignation from their respective offices of each of the directors and the
secretary of the Company, in the agreed form, executed as a deed;
	 
	 	9.2.4	 	details of the amounts, in each case as at Completion, of the Shareholder
Loans, the Inter-Company Debts and the Borrowings;
	 
	 	9.2.5	 	a deed of release in a form reasonably acceptable to the Buyer executed by
Barclays Bank plc with regard to the Shares held by Travelex UK Limited and a deed of
release in a form reasonably acceptable to the Buyer executed by National Westminster
Bank plc with regard to the Shares held by Snax 24 Corporation Limited;
	 
	 	9.2.6	 	all consents required for the sale of the Shares from Apax Partners Europe
Managers Limited and agents of senior and mezzanine financiers under certain financing
arrangements;
	 
	 	9.2.7	 	the seal (if any), statutory books and certificate of incorporation (and any
certificate of incorporation on change of name) of the Company;
	 
	 	9.2.8	 	a certified copy of the Termination Agreement executed by each Seller and the
Company;
	 
	 	9.2.9	 	the Transitional Services Agreement executed by Travelex UK Limited;
	 
	 	9.2.10	 	a list of all Site Agreements falling within paragraph 1.6.6 of part 4 of schedule 2;
	 
	 	9.2.11	 	a list of all ATMs for which planning permission has been obtained as described in
paragraph 1.6 of part 6 of schedule 2;

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	 	9.2.12	 	a certified copy of the minutes of a meeting of the directors of each Seller in the
agreed form resolving that the relevant Seller should enter into this Agreement, and
each other document to be signed by it at Completion, and authorising the execution of
those documents by each person signing on behalf of that Seller; and
	 
	 	9.2.13	 	confirmation, in a form reasonably acceptable to the Buyer, that the master agreement
between Travelex UK Limited, TotalFinaElf UK Limited and the Company has not been
terminated and continues in force.

	9.3	 	The Sellers shall ensure that a board meeting of the Company is held at Completion at which:

	 	9.3.1	 	the people nominated by the Buyer are appointed as the directors and secretary
(as the case may be) of the Company with immediate effect;
	 
	 	9.3.2	 	the resignations referred to in clause 9.2.3 are accepted with effect from the
close of the meeting;
	 
	 	9.3.3	 	the registered office of the Company is changed to that named by the Buyer;
	 
	 	9.3.4	 	the transfers referred to in clause 9.2.1 are (subject only to their being
duly stamped) approved for registration; and
	 
	 	9.3.5	 	the Transitional Services Agreement is approved for signature.

	9.4	 	At Completion, the Buyer shall deliver to the Sellers:

	 	9.4.1	 	a certified copy of the minutes of a meeting of the directors of the Buyer in
the agreed form resolving that the Buyer should enter into this Agreement, and each
other document to be signed by it at Completion, and authorising the execution of those
documents by each person signing on behalf of the Buyer;
	 
	 	9.4.2	 	a certified copy of the minutes of a meeting of the directors of the Guarantor
in the agreed form resolving that the Guarantor should enter into this Agreement and
give the guarantee in clause 14, and authorising the execution of this Agreement by
each of the persons signing for the Guarantor;
	 
	 	9.4.3	 	the Transitional Services Agreement, executed by the Buyer and the Company;

and shall:

23

 

	 	9.4.4	 	pay the aggregate sum of £16,251,000 as adjusted pursuant to clauses 6.5 and
10.8 (less any amount which is to be paid into the Escrow Account in accordance with
clause 4.5) to the Sellers in accordance with clause 15.1;
	 
	 	9.4.5	 	pay any amount due to be paid into the Escrow Account pursuant to clause 4.5
into the Escrow Account; and
	 
	 	9.4.6	 	procure the repayment of the Shareholder Loans, the Inter-Company Debts and
the Borrowings as at Completion.

	9.5	 	If either of the Sellers (regarded for the purposes of this clause 9.5 as a single party) or
the Buyer does not or is unable to fulfil any material obligations under clauses 9.2, 9.3 or
clause 9.4 as the case may be at the time when Completion is due to take place under clause
9.1 (the party who does not or is unable to fulfil those obligations being referred to in this
clause 9 as the “defaulting party”), the other party (referred to in this clause 9 as the
“non-defaulting party”) may in addition to any other right or remedy it may have, by notice to
the defaulting party:

	 	9.5.1	 	postpone Completion by up to 20 Business Days; or
	 
	 	9.5.2	 	elect to proceed to Completion, in which case the defaulting party shall be
obliged to fulfil those obligations under clauses 9.2, 9.3 or clause 9.4, as the case
may be, which it is then able to fulfil and to fulfil the remaining obligations on or
before any later date specified for the purpose in the notice; or
	 
	 	9.5.3	 	if having already given notice under clause 9.5.1 and a period of not less
than 20 Business Days having elapsed without each unfulfilled obligation in question
having been fulfilled in all material respects, elect not to complete the sale and
purchase of the Shares.

	9.6	 	If Completion is postponed on any occasion under clause 9.5.1, clause 9.5 shall apply with
respect to each occasion to which it is so postponed.

	9.7	 	The parties shall not be obliged or entitled to complete the sale and purchase of any of the
Shares unless the purchase of all of the Shares is completed and unless the Business Sale
Agreement is completed simultaneously.

	9.8	 	If the non-defaulting party elects not to complete the sale and purchase of the Shares in
accordance with clause 9.5.3, or if the parties are not obliged or entitled to complete the
sale and purchase of the Shares by reason of clause 9.7 and any party so notifies the other
party, the parties shall have no further rights or obligations under this Agreement, other
than accrued rights

24

 

	 	 	and obligations at the time of that election in respect of prior breaches, including
breaches of clauses 9.2 to 9.4 save that clauses 5.2, 5.3, 5.4, 14 and 17 to 20 and 25 to 26
shall remain binding on the parties in accordance with their terms, provided that where the
Buyer is the non-defaulting party, it may demand by way of a pre-agreed estimate of its loss
the aggregate sum of £1,500,000 from the Sellers (or the aggregate sum of £750,000 if TRM
(ATM) Limited makes a similar demand under the Business Sale Agreement) which sum the
Sellers shall be liable jointly and severally to pay in full and final settlement of any
rights and remedies the Buyer might otherwise have had in respect of the breach or breaches
in question, all of whose rights and remedies shall be unconditionally waived and released
with effect from receipt by the Buyer of the sum payable under this clause.

	10.	 	GUARANTEES AND INDEBTEDNESS

	10.1	 	The Buyer shall use all reasonable endeavours to ensure that as soon as reasonably
practicable after Completion each member of each of the Seller’s Groups is released from any
and all subsisting guarantees, security interests and indemnities given by it in relation to
the obligations of the Company given by Travelex UK Limited under the Guaranteed Contracts.
The Sellers shall co-operate with the Buyer in obtaining such releases and neither the Buyer
nor the Guarantor shall be obliged to pay any monies or assume any additional obligations over
and above those in the existing guarantees. Pending each such release, the Buyer shall
indemnify each relevant member of each of the Seller’s Groups on demand against all Losses
actually incurred by that member arising on or after Completion from or in connection with any
such guarantee, security interest or indemnity.

	10.2	 	The Sellers shall ensure that at or before Completion the Company is released from any and
all guarantees, security interests and indemnities given by it in favour of either of the
Sellers or any member of either Seller’s Group and the Buyer’s Group shall have no liability
in respect thereof and the Sellers shall indemnify each member of the Buyer’s Group on demand
and against all Losses actually incurred by that member arising from or in connection with any
such guarantee, security or indemnity.

	10.3	 	To the extent that the same is not included in the Actual Exchange Debt (as defined in clause
10.5 below) the Sellers shall procure that the Company discharges all trade creditors of, and
amounts accrued by, the Company as at the date of this Agreement relating to the acquisition
and installation of fixed assets (together with any interest and penalties thereon) and shall
indemnify the Buyer in respect of all Losses incurred by it as a result of any failure so to
do.

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	10.4	 	The purchase price set out in clause 6.1 is calculated on the basis that the aggregate amount
of the Borrowings, Inter-Company Debts and Shareholder Loans as at the date of this Agreement
(“Estimated Exchange Debt”) is £15,594,000.

	10.5	 	The Sellers shall, prior to Completion, notify the Buyer of:

	 	10.5.1	 	the actual aggregate amount of the Borrowings, Shareholder Loans and Inter-Company
Debts as at the date of this Agreement (“Actual Exchange Debt”);
	 
	 	10.5.2	 	the amount (if any) by which the aggregate amount of the Borrowings, Shareholder
Loans and Inter-Company Debts as at Completion exceeds the Actual Exchange Debt
(“Excess Debt”); and
	 
	 	10.5.3	 	the amount of the Excess Debt which is not attributable to ATM Capital Expenditure
(as defined below) (“Non-ATM Excess Debt”).

For the purposes of this clause 10.5, “ATM Capital Expenditure” shall mean expenditure on
the acquisition, installation and upgrade of any ATMs attributable to any ATMs acquired,
installed or upgraded in excess of the Total Operational ATMs Number (as defined in clause
6.3) and any further expenditure as agreed between the Buyer and the Sellers.

	10.6	 	The Sellers’ calculation of the Actual Exchange Debt, the Excess Debt and the amount of the
Non-ATM Excess Debt shall be deemed agreed by the Buyer on the date falling 10 Business Days
after the date on which those documents are first delivered to the Buyer and shall be final
and binding on the parties for all purposes unless during that period the Buyer gives notice
to the Sellers that it disagrees with such amounts. Any such notice shall give reasonable
details (so far as is practicable) of the reasons for any disagreement and any suggested
adjustment, together with reasonably supporting evidence.

	10.7	 	If any notice is served by the Buyer during such 10 Business Day period, the Sellers and the
Buyer shall attempt in good faith to resolve any matters in dispute and agree the amounts of
the Actual Exchange Debt, the Excess Debt and the amount of the Non-ATM Excess Debt on or
before the date falling 10 Business Days after the date on which the Sellers receive that
notice. Such amounts as agreed will be final and binding on the parties for all purposes. In
the absence of agreement between the Buyer and the Sellers within that time period, the
Independent Accountants shall be instructed to deliver a determination of the matters in
dispute in accordance with clause 8 and confirm the amounts of the Actual Exchange Debt, the
Excess Debt and the amount of the Non-ATM Excess Debt. Each party shall promptly provide to
the other or the other’s accountants or professional advisers (and to the Independent
Accountants) all such

26

 

	 	 	documents and information as may reasonably be requested for the purpose
of preparing or
reviewing the calculations of Actual Exchange Debt, Excess Debt and Non-ATM Debt. The
parties’ obligations under this clause shall, without limitation, extend to providing access
to or copies of all working papers in their possession or under their control (other than
those created by their respective accountants) created in the course of the preparation
and/or review of such calculations, together (in the case of the Buyer) with extracts from
the Company’s and the Business’s accounting records to which the working papers relate or
from which the working papers have drawn information, and access upon reasonable notice and
during normal working hours to relevant personnel, and to relevant records and information
within the possession or under the control, of the relevant party.

	10.8	 	If prior to Completion, the amount of the Actual Exchange Debt, the Excess Debt and the
Non-ATM Excess Debt is agreed or determined in accordance with clauses 10.6 and 10.7, then:

	 	10.8.1	 	the amount (if any) of the Non-ATM Excess Debt shall be deducted from; and/or
	 
	 	10.8.2	 	the amount (if any) by which the Actual Exchange Debt exceeds the Estimated Exchange
Debt shall be deducted from; or
	 
	 	10.8.3	 	the amount (if any) by which the Actual Exchange Debt is less than the Estimated
Exchange Debt shall be added to;

the amount payable for the Shares pursuant to clause 6.1. For the avoidance of doubt,
notwithstanding the foregoing provisions of this clause 10.8, the Buyer shall procure that
the aggregate of the Borrowings, Shareholder Loans and Inter-Company Debts is repaid at
Completion in accordance with clause 9.4.6.

	10.9	 	In the event that the Buyer and the Sellers fail to agree the calculation of the Actual
Exchange Debt, the Excess Debt and the Non-ATM Excess Debt, prior to Completion, then:

	 	10.9.1	 	the Sellers shall indemnify the Buyer for the amount (if any) of the Non-ATM Excess
Debt;
	 
	 	10.9.2	 	the Sellers shall indemnify the Buyer for the amount (if any) by which the Actual
Exchange Debt exceeds the Estimated Exchange Debt; or
	 
	 	10.9.3	 	the Buyer shall indemnify the Sellers for the amount (if any) by which the Actual
Exchange Debt is less than the Estimated Exchange Debt;

27

 

together in each case with interest accruing from day to day, both before and after judgment
from the Completion Date on the date of payment at a rate of two per cent above the base
rate for the time being of Barclays Bank Plc.

	10.10	 	The Liability of the Sellers pursuant to clause 10.9 shall be joint and several.

	10.11	 	For the avoidance of doubt, all cash in hand and at bank of the Company at Completion shall
be for the account of the Sellers.

	11.	 	WARRANTIES

	11.1	 	The Sellers jointly and severally warrant to the Buyer that except as disclosed in the
Disclosure Letter in sufficient detail to enable the Buyer to have a reasonable understanding
of the nature and scope of the matter disclosed, each of the Warranties is true and accurate
at the date of this Agreement and subject to clause 4.6 the Repeated Warranties will continue
to be so up to Completion with reference to the facts and circumstances from time to time
applying.

	11.2	 	Each of the Warranties is separate and is to be construed independently of the other
Warranties, subject to clause 11.3.

	11.3	 	The only Warranties given:

	 	11.3.1	 	in respect of the Environment are those set out in paragraph 2 of part 6 of schedule
2 and the other Warranties shall be deemed not to be given in relation to the
Environment;
	 
	 	11.3.2	 	in respect of pension matters are those set out in part 7 of schedule 2 and the other
Warranties shall be deemed not to be given in relation to pension matters;
	 
	 	11.3.3	 	in respect of the employees of the Company and other employment matters are those set
out in part 8 of schedule 2 and the other Warranties shall be deemed not to be given in
relation to such employees and other employment matters;
	 
	 	11.3.4	 	in respect of Intellectual Property Rights are those set out in part 9 of schedule 2,
and the other Warranties shall be deemed not to be given in relation to Intellectual
Property Rights;
	 
	 	11.3.5	 	in respect of matters relating to the information technology of the Company and other
information technology matters are those set out in part 10 of schedule 2, and the
other Warranties shall be deemed not to be given in relation to information technology;
and

28

 

	 	11.3.6	 	in respect of Taxation are the Tax Warranties, and the other Warranties shall be
deemed not to be given in relation to Taxation.

	11.4	 	Except in the case of fraud by any director or employee of the Company, the Sellers waive and
hereby release the Company from any rights they may have in connection with any error in or
omission from the Disclosure Letter against the Company or any director or employee of the
Company on whom the Sellers have relied in connection with preparing the Disclosure Letter.

	11.5	 	The Buyer shall be entitled to claim both before and after Completion that any of the
Warranties has or had been breached even if the Buyer discovered or could have discovered on
or before Completion that the Warranty in question was or was likely to be breached and
Completion shall not in any way constitute a waiver of any of the Buyer’s rights. The Buyer
warrants to the Sellers that it has no actual knowledge of any fact, matter or circumstance
which would give rise to a breach of the Warranties at the date of this Agreement, and for
these purposes, the Buyer’s actual knowledge shall be limited to the actual knowledge of Tom
Mann, Ashley Dean, Rhys Edwards and Ian Strang at the date of this Agreement.

	11.6	 	Subject to paragraph 4.1 of schedule 4, the rights and remedies of the Buyer in respect of a
breach of any of the Warranties shall not be affected by Completion, by any investigation made
by or on behalf of the Buyer into the affairs of the Company, by the giving of any time or
other indulgence by the Buyer to any person, or by any other cause whatsoever except a
specific waiver or release by the Buyer in writing and any such waiver or release shall not
prejudice or affect any remaining rights or remedies of the Buyer.

	11.7	 	Schedule 4 (Limitations on Sellers’ Liability) shall (save as otherwise provided) apply to
limit or exclude, in accordance with its terms, any liability of the Sellers in respect of a
breach of the Warranties (other than the Warranties given in paragraphs 1 and 6 of part 1 of
schedule 2) and part 4 of schedule 3 (Miscellaneous, including exclusions and limitations,
conduct of claims and payments) shall apply to limit or exclude, in accordance with its terms,
any liability of the Sellers in respect of a breach of the Tax Warranties, other than in
either case any such liability as is referred to in paragraph 4.5 of schedule 4. This clause
shall not prevent either Seller from claiming against the other Seller by virtue of any right
of contribution or indemnity to which it may be entitled.

	11.8	 	Any amount paid by or on behalf of either Seller in respect of a breach of the Warranties
and/or under a claim made under the Tax Covenant shall be deemed to reduce the purchase price
payable to that Seller for the Shares registered in its name by, and be a repayment of, that
amount.

29

 

	11.9	 	Where any Warranty refers to the awareness, knowledge or belief of the Sellers or any
analogous expression, that Warranty shall be deemed to include an additional statement that it
has been made after diligent and careful enquiry by the Sellers of the following persons in
relation to the Warranties set against their respective names, and the awareness, knowledge or
belief of both the Sellers shall be limited to the actual awareness, knowledge or belief of
such individuals:

	 	 	 	 
	 	Clive Kahn, Clive Nation, Nick

Cockett, Kylie-Ann Tremlett, Sylvain

Pignet, James Birch

	 	all Warranties
	 
	 	 
	 	Bill Ahearn

	 	paragraphs 4.1, 4.2, 4.3 and 4.4 of
part 3 of schedule 2 (Compliance
and Litigation) and paragraphs 1.3
and 1.4 of part of schedule 2
(Contracts) and paragraphs 1.4 and
1.5 of part 6 of schedule 2 (Site
Agreements)
	 
	 	 
	 	Jackie Manley

	 	paragraph 4 of part 3 of schedule 2
(Compliance and Litigation)
	 
	 	 
	 	Geoff Baldock and Emma Turner

	 	part 2 of schedule 2 (Accounts,
Financial, Banking and Current
Trading)
	 
	 	 
	 	Lynette Mapp

	 	part 3 of schedule 2 (Compliance
and Litigation) and part 4 of
schedule 2 (Contracts)
	 
	 	 
	 	David Burgin

	 	part 5 of schedule 2 (Assets)
	 
	 	 
	 	Ann Colley

	 	part 7 of schedule 2 (Pensions) and
part 8 of schedule 2 (Employment)
	 
	 	 
	 	Gareth Richards

	 	part 10 of schedule 2 (Information
Technology)
	 
	 	 
	 	Martyn Emmerson and Lisa Westerman

	 	Tax Warranties

The Sellers jointly and severally warrant to the Buyer that the individuals listed above are
the appropriate people to review the relevant Warranties for the purposes of confirming
their

30

 

accuracy and that there are no other persons of whom it would be reasonable for the Sellers
to make enquiry.

	11.10	 	The Sellers shall disclose to the Buyer as soon as is reasonably practicable following their
becoming aware of the same, any matter which becomes known to them prior to Completion which
constitutes a breach of the Repeated Warranties.

	12.	 	TAX
	 
	 	 	The provisions of part 3 of schedule 3 shall have effect on Completion.

	13.	 	PROTECTION OF THE INTERESTS OF THE BUYER

	13.1	 	Each Seller agrees that it shall not, directly or indirectly, alone or jointly with any other
person, and whether as shareholder, partner, director, principal, consultant or agent:

	 	13.1.1	 	for a period of 12 months starting on the Completion Date, employ any employee of the
Company as at Completion, or solicit, canvass or induce or endeavour to induce any such
employee to leave his position, whether or not that person would commit a breach of his
contract by so leaving or offer employment to any such person;
	 
	 	13.1.2	 	for a period of two years starting on the Completion Date, solicit or induce any
material supplier to the Company or any party to a Site Agreement to cease to do
business with the Company or (in the case of a material supplier) to reduce the amount
of supplies to or transactions with the Company or adversely to vary the terms on which
they so do business, or (in the case of a party to a Site Agreement) seek to induce
that party to permit the Seller in question to install and operate an ATM at the
relevant site; and
	 
	 	13.1.3	 	for a period of two years starting on the Completion Date, carry on or be engaged,
interested or concerned in any business which within the United Kingdom carries on a
Restricted Activity.

	13.2	 	Nothing in clause 13 shall prohibit either Seller from directly or indirectly:

	 	13.2.1	 	acquiring and holding any interest in any business which carries on a Restricted
Activity, provided that the turnover of that business attributable to the Restricted
Activity in each of the last two financial years preceding the completion of the
acquisition does not exceed five per cent. of the aggregate turnover of all entities
which are the subject of the acquisition in question in those financial years, as
derived from any relevant

31

 

	 	 	 	annual audited accounts (or in their absence any relevant management accounts) for
those two financial years; or
	 
	 	13.2.2	 	holding any interest in any securities listed or dealt in on any securities exchange
if that Seller and all other members of that Seller’s Group are together interested in
securities which amount to less than five per cent of the issued securities of that
class and which carry less than five per cent of the voting rights (if any) attaching
to the issues securities of that class; or
	 
	 	13.2.3	 	publishing or causing to be published any advertisement not intended to induce any
employee of the Company (as opposed to any equivalent employee of another company) as
at Completion to leave his position; or
	 
	 	13.2.3	 	instructing an employment agency to recruit any individual if the Seller in question
does not encourage that agency to approach any employee of the Company as at
Completion.

	13.3	 	Neither Seller shall after Completion disclose or use any Confidential Information or trade
secrets relating to the Company. This clause shall not prohibit disclosure of:

	 	13.3.1	 	Confidential Information under a legal obligation involuntarily incurred or if
required by the law of any relevant jurisdiction or by any competent regulatory or
governmental body or securities exchange in any relevant jurisdiction;
	 
	 	13.3.2	 	any Confidential Information which is or becomes part of the public domain without
breach of this clause or clause 13.4; or
	 
	 	13.3.3	 	Confidential Information to any other member of that Seller’s Group or to any
professional advisers of that Seller or of any other member of that Seller’s Group.

	13.4	 	Each Seller shall use its reasonable endeavours to ensure that no member of that Seller’s
Group from time to time takes or omits to take any action which, if taken or omitted by that
Seller, would constitute a breach of clause 13.1 or 13.3.

	13.5	 	Each of the restrictions in clauses 13.1 and 13.3 shall be enforceable by the Buyer
independently of each of the others and its validity shall not be affected if any of the
others is invalid.

	13.6	 	If any of the restrictions in clauses 13.1 and 13.3 is void but would be valid if some part
of the restrictions were deleted, the restriction in question shall apply with such deletion
as may be necessary to make it valid.

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	13.7	 	Each Seller acknowledges that the above provisions of this clause are no more extensive than
is reasonable to protect the Buyer as the acquirer of the Shares.

	13.8	 	In this clause 13, “Restricted Activity” means the operation of any ATM in the United Kingdom
which dispenses the national currency for the time being of the United Kingdom, but excludes:

	 	13.8.1	 	acting as “landlord” (and carrying out maintenance activities) in relation to a site
on which an ATM is installed, where that ATM is operated by a third party paying a fee
to the relevant Seller (whether that fee is fixed or calculated by turnover or
determined in any other way) provided that no Seller shall be in any way otherwise
involved in the operation of the ATM in question or the processing of transactions in
relation to that ATM;
	 
	 	13.8.2	 	operating any ATM installed at any site (including for example but without limitation
an airport terminal) at which Travelex UK Limited or any member of its Seller’s Group
carries on any foreign exchange business, whether or not the ATM in question is located
in the bureau at which that foreign exchange business is carried on; and
	 
	 	13.8.3	 	operating any ATM which utilises so-called “Dynamic Currency Conversion” technology;

provided that for a period of two years following Completion, before carrying on any
activity falling within the scope of clauses 13.8.1 and 13.8.2 in relation to any ATM
installed after the date of Completion or in respect of which the existing contract
terminates after Completion, or before carrying on any activity falling with the scope of
clause 13.8.3, Travelex UK Limited shall (where relevant, to the extent permitted by any
relevant landlord or superior landlord) first offer the Buyer a right of first refusal with
regard to the financial and operational terms on which the ATM in question is to be operated
as set out in clauses 13.9 to 13.13 below.

	13.9	 	The Buyer shall within five Business Days after being notified pursuant to clause 13.8 advise
Travelex UK Limited that it wishes to enter into negotiations for the operation of the ATM(s)
in question. If no such notice is received within such a period the Buyer shall be deemed to
have declined the offer of first refusal made by Travelex UK Limited and Travelex UK Limited
shall then be free to enter into a contract with any third party for the operation of the
ATM(s) in question.

	13.10	 	If the Buyer advises Travelex UK Limited pursuant to clause 13.9 that it wishes to enter
into negotiations, Travelex UK Limited agrees to enter into good faith negotiations with the
Buyer for a period of 10 Business Days from the date of receipt of the notification pursuant
to clause 13.9 (the “Exclusivity Period”) for the operation of the ATM(s) in question and
during the Exclusivity

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	 	 	Period Travelex UK Limited agrees not to enter into any contract with any third party in
respect of the operation of such ATM(s).
	 
	13.11	 	If, after the Buyer has given notice in accordance with clause 13.9 but before the end of
the Exclusivity Period, the Buyer does not wish to proceed with negotiations with Travelex UK
Limited, the Buyer shall notify Travelex UK Limited in writing of that fact and on receipt of
such notification Travelex UK Limited shall be entitled to enter into any contract with any
third party for the operation of the ATM(s) in question.
	 
	13.12	 	If following expiry of the Exclusivity Period, Travelex UK Limited and the Buyer have failed
to agree on the terms of an agreement in relation to the operation of the ATMs in question and
Travelex UK Limited subsequently agrees terms with a third party in relation to the operation
of the same ATMs, then before entering into any agreement with such third party Travelex UK
Limited shall first give the Buyer the opportunity to enter into such agreement, on the same
terms as those agreed to by the third party. If the Buyer fails to enter into such agreement
within 5 Business Days of receipt of Travelex UK Limited’s offer, then such offer shall be
deemed to have been declined by the Buyer and Travelex UK Limited shall be entitled to enter
into such agreement with the third party in question.
	 
	13.13	 	If the Buyer and Travelex UK Limited fail to agree on the terms of an agreement in relation
to the operation of the ATM(s) within the Exclusivity Period and any offer made by Travelex UK
Limited in accordance with clause 13.12 is not accepted or is deemed to have been declined,
then Travelex UK Limited shall then be entitled to enter into a contract with any third party
for the operation of the ATM(s) in question.
	 
	14.	 	GUARANTEE
	 
	14.1	 	In consideration of the Sellers entering into this Agreement the Guarantor as primary obligor
irrevocably and unconditionally:

	 	14.1.1	 	undertakes to ensure the Buyer’s performance of all its obligations under this
Agreement in accordance with its terms and the Company’s performance of all of its
obligations under the Guaranteed Contracts in accordance with their terms (“Guarantee
Obligations”);
	 
	 	14.1.2	 	guarantees as a continuing guarantee to the Sellers the performance and observance by
the Buyer and the Company of the Guaranteed Obligations or arising in consequence of
any breach of the Guaranteed Obligations;

34

 

	 	14.1.3	 	agrees that if and each time that the Buyer fails to make any payment to the Sellers
when it is due under this Agreement, the Guarantor shall on demand (without requiring
the Sellers first to take steps against the Buyer or any other person) pay that amount
to the Sellers .

	14.2	 	The liability of the Guarantor under this clause shall not be released or diminished in whole
or in part by anything which, but for this provision, might operate to affect its liability,
including without limitation:

	 	14.2.1	 	any variation of the terms of this Agreement;
	 
	 	14.2.2	 	any forbearance or neglect or delay in seeking the performance of any obligations
under this Agreement or the Guaranteed Contracts or any granting of time for the
performance of those obligations or any other arrangement between the Sellers (or
either of them), the Buyer and the Company or any other person; or
	 
	 	14.2.3	 	any unenforceability or invalidity of any obligation of the Buyer or the Company, so
that this clause shall be construed as if there were no such unenforceability or
invalidity.

	14.3	 	The guarantee in clause 14.1 is a continuing guarantee and accordingly shall remain in force
until all of the obligations of the Buyer under this Agreement and all of the obligations of
the Company under the Guaranteed Contracts have been fully performed or fully satisfied.
	 
	14.4	 	The guarantee in clause 14.1 shall be in addition to and without prejudice to and not in
substitution for, the performance and observance of the Buyer’s obligations under this
Agreement and the Company’s performance and observance of its obligations under the Guaranteed
Contracts.
	 
	14.5	 	The Guarantor warrants and represents to the Sellers that:

	 	14.5.1	 	the Guarantor is a company duly incorporated and validly existing under the laws of
Oregon;
	 
	 	14.5.2	 	the Guarantor has all necessary power and authority to enter into and perform its
obligations under this Agreement;
	 
	 	14.5.3	 	this Agreement constitutes (or will when executed constitute) valid and binding
obligations on the Guarantor in accordance with their respective terms;

35

 

	 	14.5.4	 	the entering into and performance by the Guarantor of its obligations under this
Agreement:

	 	14.5.4.1	 	will not result in a breach of any provision of the memorandum or articles
of association or analogous constitutional documentation of the Guarantor;
	 
	 	14.5.4.2	 	will not result in a breach of any order, judgment or decree of any court
or governmental, administrative or regulatory body or agency to which the
Guarantor is party or by which it is bound; and
	 
	 	14.5.4.3	 	does not require the consent of any third party.

	14.6	 	If any monies paid to the Sellers (or either of them) under this Agreement have to be repaid
by the Sellers to the Buyer by virtue of any provision or enactment relating to bankruptcy,
insolvency or liquidation for the time being in force or on any other ground, the liability of
the Guarantor shall be computed as if those monies had never been paid to the Sellers at all.
	 
	14.7	 	For the avoidance of doubt, nothing under clause 14 shall require the Guarantor to complete
the acquisition of the Shares if the Condition set out in clause 3.1.2 has not been satisfied
by the End Date.
	 
	15.	 	PAYMENTS AND INTEREST
	 
	15.1	 	Payments to be made to the Sellers under this Agreement shall be made in pounds sterling by
telegraphic transfer of immediately available funds to the following account of the Sellers’
Solicitors:

	 	 	 	 	 
	 

	 	CONFIDENTIAL
	 	 

or to any other account of which the Sellers give the Buyer at least three Business Days’
notice from time to time.

36

 

	15.2	 	Payment to be made to the Buyer under this Agreement shall be made in pounds sterling by
telegraphic transfer of immediately available funds to the following account of the Buyer’s
Solicitors:

	 	 	 	 	 
	 

	 	CONFIDENTIAL
	 	 

	15.3	 	Payment of any sum to a party’s solicitors will discharge the obligations of the relevant
party to pay the sum in question, and that party shall not be concerned to see the application
of the monies so paid.
	 
	16.	 	BOOKS AND RECORDS
	 
	 	 	The Buyer shall ensure that all records (whether in electronic or in any other form) of the
Buyer relating to the business of the Company which are relevant in connection with any
Warranty Claim or other claim against the Sellers under this Agreement are retained for so
long as any actual or threatened Warranty Claim or other claim remains outstanding. The
Buyer shall ensure that the Sellers are provided as soon as reasonably practicable after
request with access to those records and is permitted at the Sellers’ expense to make copies
of them.
	 
	17.	 	ASSIGNMENT
	 
	17.1	 	Subject to clause 17.2, no party and no third party referred to in clause 21.1 may assign or
otherwise dispose of any rights under this Agreement, at law or in equity, including by way of
security or declaration of trust. Any purported assignment in breach of this clause shall be
void and confer no rights on the purported assignee.
	 
	17.2	 	The Buyer may assign its rights under this Agreement to any member of the Buyer’s Group
provided (a) that the terms of any such assignment shall provide for the rights to be
re-assigned to the Buyer in the event that the assignee ceases to be a member of the Buyer’s
Group, and in default of any such re-assignment, those rights shall lapse and (b) any
liability of the Sellers to the assignee shall not exceed the liability of the Sellers to the
Buyer in the absence of that assignment.

37

 

	18.	 	ANNOUNCEMENTS AND CONFIDENTIALITY
	 
	18.1	 	No party may make any press release or other public announcement about this Agreement or the
transactions contemplated by it, or disclose any of the terms of this Agreement, except with
the consent of the other party.
	 
	18.2	 	Clause 18.1 shall not apply to any disclosure made by a party to a member of its Group or to
its professional advisers, or to any announcement or disclosure required by the laws of any
relevant jurisdiction or by any competent regulatory or governmental body or securities
exchange in any relevant jurisdiction, provided that the party required to make such an
announcement or disclosure shall first take all such steps as may be reasonable and
practicable in the circumstances to consult with the other party, and shall take into account
its reasonable comments.
	 
	18.3	 	Each party shall ensure that any member of its Group or professional adviser to which it
discloses information under clause 18.2 is made aware of the obligations of confidentiality
contained in this clause and complies with this clause as if binding on it directly.
	 
	19.	 	COSTS
	 
	 	 	Each party shall bear its own costs and expenses in connection with the preparation,
negotiation, execution and performance of this Agreement and the documents referred to in
it.
	 
	20.	 	NOTICES
	 
	20.1	 	Any notice, consent or other communication given under this Agreement shall be in writing and
in English, and signed by or on behalf of the party giving it, and shall be delivered by hand
or sent by prepaid recorded or special delivery post (or prepaid international recorded
airmail if sent internationally) or by fax as follows (and, for the avoidance of doubt, may
not be given by email):
	 
	 	 	to the Buyer:

	 	 	 	 	 
	 

	 	For the attention of:
	 	Ashley Dean, Managing Director
	 
	 	 	 	 
	 

	 	Address:
	 	TRM (ATM) Limited, 1A Meadowbrook, Maxwell Way, Crawley, West Sussex RH10 9SA
	 
	 	 	 	 
	 

	 	Facsimile number:
	 	01293 585091

38

 

	 	 	with a copy (which shall not constitute notice) to Amy Krallman, Esq., Senior Vice President
and General Counsel, TRM Corporation at Team Headquarters, 5208 NE 122nd Avenue,
Portland, Oregon 97230 USA; and
	 
	 	 	to the Sellers:

	 	 	 	 	 
	 

	 	For the attention of:
	 	the Company Secretary
	 
	 	 	 	 
	 

	 	Address:
	 	Travelex Limited, 65 Kingsway, London WC2B 6TB
	 
	 	 	 	 
	 

	 	Facsimile number:
	 	020 7400 4001
	 
	 	 	 	 
	 

	 	and	 	 
	 
	 	 	 	 
	 

	 	For the attention of:
	 	the Company Secretary
	 
	 	 	 	 
	 

	 	Address
	 	Snax 24 Corporation Limited, Archway House, 105a High Street,
	 

	 	 	 	Berkhamsted, Hertfordshire HP4 2DG
	 
	 	 	 	 
	 

	 	Facsimile number:
	 	01442 873 420

	 	 	with a copy (which shall not constitute notice) to the Sellers’ Solicitors (Reference: SJH).
	 
	20.2	 	Any party may from time to time notify the others of any other person, address or fax number
for the receipt of notices or copy notices. Any such change shall take effect five Business
Days after notice of the change is received or (if later) on the date (if any) specified in
the notice as the date on which the change is to take place.
	 
	20.3	 	Any notice, consent or other communication given in accordance with clause 20.1 and received
after 5.30 p.m. on a Business Day, or on any day which is not a Business Day, shall for the
purposes of this Agreement be regarded as received on the next Business Day.
	 
	20.4	 	The provisions of clause 20.1 shall not apply in relation to the service of process in any
legal proceedings arising out of or in connection with this Agreement.
	 
	21.	 	THIRD PARTY RIGHTS
	 
	21.1	 	Members of either Seller’s Group may rely upon and enforce the terms of clauses 10.1 and 10.8
(guarantees and indebtedness), the Company may rely upon and enforce the terms of clauses 10.2
and 10.8 (guarantees and indebtedness) and the directors and employees of the Company may rely
upon and enforce the terms of clause 11.4 (waiver of rights in relation to warranties).

39

 

	21.2	 	Notwithstanding any other provision of this Agreement, the Sellers and the Buyer may by
agreement in writing rescind or vary any of the provisions of this Agreement without the
consent of any third party, and accordingly section 2(1) of the Contracts (Rights of Third
Parties) Act 1999 shall not apply.
	 
	21.3	 	Except as otherwise stated in this Agreement, a person who is not a party to this Agreement
has no right under the Contracts (Rights of Third Parties) Act 1999 to rely upon or enforce
any term of this Agreement. This clause shall not affect any right or remedy of a third party
which exists or is available apart from that Act.
	 
	22.	 	OBLIGATIONS AFTER COMPLETION AND FURTHER ASSURANCE
	 
	22.1	 	At or after Completion, the Sellers shall execute all such documents and do or cause to be
done all such other things as the Buyer may from time to time reasonably require in order to
vest in the Buyer legal title to and the benefit of the Shares. Nothing in this clause 22.1
or under this Agreement shall require either Seller to pay any stamp duty or stamp duty
reserve tax in relation to the sale of the Shares.
	 
	22.2	 	After Completion, the Buyer shall use all reasonable endeavours to make available to the
Sellers the assistance of those of the employees employed by the Company who were so employed
at or before Completion as the Sellers may from time to time reasonably require in connection
with any proceedings against the Sellers of which the relevant employees have particular
knowledge, whether by virtue of their involvement in the matters giving rise to the
proceedings or otherwise.
	 
	22.3	 	Save as permitted under the Transitional Services Agreement, the Buyer shall not at any time
after Completion use in the course of any business the name Travelex, the phrase “Travelex
Worldwide Money” and the Travelex Worldwide Money logo or any confusingly similar names or
logos.
	 
	23.	 	NO MERGER
	 
	 	 	The provisions of this Agreement shall remain in full force and effect notwithstanding
Completion.
	 
	24.	 	COUNTERPARTS
	 
	 	 	This Agreement may be executed in any number of counterparts and by the parties to it on
separate counterparts, each of which shall be an original but all of which together shall
constitute one and the same instrument, and shall not be effective until each of the parties
has executed at least one counterpart.

40

 

	25.	 	ENTIRE AGREEMENT
	 
	25.1	 	This Agreement and the documents referred to in it together constitute the entire agreement
and understanding of the parties and supersede any previous agreement between the parties
relating to the subject matter of this Agreement.
	 
	25.2	 	The Buyer acknowledges that no provisions are to be regarded as implied into this Agreement,
save for those implied by law and which are not lawfully capable of being excluded. All
implied provisions lawfully capable of being excluded are excluded for all purposes.
	 
	25.3	 	In entering into this Agreement, and subject to schedule 4, each party accepts that it is not
relying on any representation, warranty or on any other information or statement of opinion or
belief, including, without limitation, replies to due diligence enquiries, whether written or
oral, express or implied, and whether made or given by another party or by any of their
respective advisers, which is not expressly comprised within or the subject of any of the
Warranties.
	 
	25.4	 	So far as it remains to be performed this Agreement shall continue in full force and effect
notwithstanding Completion.
	 
	25.5	 	No exercise or failure to exercise a right under this Agreement or otherwise or to invoke a
remedy shall constitute a waiver of that or any other right or remedy.
	 
	25.6	 	Nothing in this clause 25 shall limit any liability of either of the Sellers for fraud.
	 
	26.	 	GOVERNING LAW AND JURISDICTION
	 
	26.1	 	This Agreement shall be governed by and construed in accordance with the law of England and
Wales. Each party irrevocably submits to the exclusive jurisdiction of the courts of England
and Wales over any claim, dispute or matter arising under or in connection with this
Agreement.
	 
	26.2	 	Each party irrevocably waives any objection which it may have now or later to proceedings
being brought in the courts of England and Wales and any claim that proceedings have been
brought in an inconvenient forum. Each party further irrevocably agrees that a judgment in
any proceedings brought in the courts of England and Wales shall be conclusive and binding
upon each party and may be enforced in the courts of any other jurisdiction.
	 
	26.3	 	Nothing in this Agreement shall affect the right to serve process in any manner permitted by
law.

THIS AGREEMENT has been executed by or on behalf of the parties on the date at the top of page 1.

41

 

SCHEDULE 1

Details of the Company

	 	 	 
	Date and place of incorporation:

	 	3 August 2000, England and Wales
	 
	 	 
	Registered number:

	 	4046739
	 
	 	 
	Registered office:

	 	65 Kingsway, London WC2B 6TD
	 
	 	 
	Share capital:
	 	 
	 
	 	 
	               Authorised:

	 	£1,000 divided into 500 A ordinary shares of £1 each and 500 B
ordinary Shares of £1 each
	 
	 	 
	               Issued:

	 	£1,000 divided into 500 A ordinary shares of £1 each and 500 B
ordinary Shares of £1 each
	 
	 	 
	Directors:

	 	William Aherne
	 

	 	Nicholas Cockett
	 

	 	Lloyd Dorfman
	 

	 	Alan Goldman
	 

	 	Clive Kahn
	 

	 	Clive Nation
	 

	 	Gerald Ronson
	 

	 	Lisa Ronson
	 
	 	 
	Secretary:

	 	Sylvain Pignet
	 
	 	 
	Shareholders:

	 	Travelex UK Limited (500 A ordinary shares of £1 each)
	 
	 

	 	Snax 24 Corporation Limited (500 B ordinary shares of £1 each)
	 
	 	 
	Auditors:

	 	PricewaterhouseCoopers LLP
	 
	 	 
	Accounting reference date:

	 	31 December
	 
	 	 
	Charges:

	 	None

42

 

Part
1 — General

SCHEDULE 2

Warranties

Part 1: General

	1.	 	SHARES AND OTHER SECURITIES OF THE COMPANY
	 
	1.1	 	The Shares represent the entire issued share capital of the Company.
	 
	1.2	 	Each Seller is the legal and beneficial owner of the Shares set out against that Seller’s
name in schedule 1, save that Snax 24 Corporation Limited holds 25 of the Shares registered in
its name on trust for Alan Goldman, but no consent is required for the sale of such Shares
from Mr Goldman.
	 
	1.3	 	The Company has no debentures or other securities in issue.
	 
	1.4	 	No person has the right (whether exercisable now or at a future date and whether contingent
or not) to subscribe for, or to convert any security into, any shares, debentures, loan
capital or other securities of the Company.
	 
	2.	 	SHADOW DIRECTORS
	 
	 	 	No person who is not named in schedule 1 is a shadow director (within the meaning of section
741(2) Companies Act 1985) of the Company.
	 
	3.	 	SUBSIDIARIES AND BRANCHES
	 
	3.1	 	The Company has no interest in nor is it under a subsisting obligation to acquire any
interest in any shares, debentures or other securities of any other body corporate.
	 
	3.2	 	The Company has no branch or other place of business or permanent establishment outside the
United Kingdom.
	 
	4.	 	COMMISSION
	 
	 	 	No person is entitled to receive from the Company any finder’s fee or brokerage or other
commission in connection with the sale of the Shares to the Buyer.

43

 

Part
1 — General

	5.	 	INSOLVENCY
	 
	5.1	 	In this Part 1, “Insolvency Proceedings” means any formal insolvency proceedings, whether in
or out of court, including liquidation, administration, administrative receivership,
receivership, scheme of arrangement with creditors, moratorium, interim or provisional
supervision by a court or court appointee, winding-up or striking-off.
	 
	5.2	 	The Company is able to pay its debts as they fall due and has not stopped payment of its
debts.
	 
	5.3	 	The Company has not taken any steps to commence any Insolvency Proceedings, nor has it
received notice that any third party has commenced any Insolvency Proceedings, in either case
whether in relation to the Company or any part of its assets or undertaking.
	 
	6.	 	AUTHORITY AND CAPACITY OF THE SELLERS
	 
	6.1	 	Each Seller has all necessary power and authority to enter into and perform its obligations
under this Agreement and all agreements to be entered into by such Seller pursuant to this
Agreement and when executed will constitute valid and binding obligations on such Seller in
accordance with their terms.
	 
	6.2	 	The sale of the Shares by each Seller under this Agreement:

	 	6.2.1	 	will not result in a breach of any provision of the memorandum or articles of
association of that Seller;
	 
	 	6.2.2	 	will not result in a breach of any order, judgment or decree of any court or
governmental, administrative or regulatory body or agency to which either Seller is
party or by which that Seller is bound; and
	 
	 	6.2.3	 	does not require the consent of any third party which will not have been
obtained by Completion.

	6.3	 	All corporate action required by each Seller validly and duly to authorise the execution and
delivery of, and to exercise its rights and perform its obligations under, this Agreement and
any other documents to be executed by it pursuant to or in connection with this Agreement has
been duly taken.

44

 

Part
2 — Accounts, Financial, Banking and Current Trading

Part
2 : Accounts, Financial, Banking and Current Trading

	1.	 	THE ACCOUNTS
	 
	1.1	 	The Accounts were prepared under the historical cost convention and in accordance with
applicable Statements of Standard Accounting Practice, Financial Reporting Standards,
statements from the Urgent Issues Task Force, other generally accepted accounting practices in
the United Kingdom and the Companies Act 1985.
	 
	1.2	 	The Accounts give a true and fair view of the state of affairs of the Company as at the end
of the financial year to which they relate and of its loss for the period ended on that date.
	 
	1.3	 	The Accounts have been prepared applying accounting policies consistently with those used in
the previous financial year of the Company.
	 
	1.4	 	Since the Accounts Date, other than as disclosed in the Management Accounts or in the
document attached to this Agreement and marked “C”:

	 	1.4.1	 	no dividend or other distribution (as defined for the purposes of section 209
or 210 of ICTA) has been declared, paid or made by the Company;
	 
	 	1.4.2	 	the business of the Company has been carried on in the ordinary course and so
as to maintain it as a going concern;
	 
	 	1.4.3	 	there has been no material adverse change in the financial or trading position
of the Company;
	 
	 	1.4.4	 	the Company has not acquired or disposed of or agreed to acquire or dispose of
any business or any material asset;
	 
	 	1.4.5	 	no debtor has been released by the Company on terms that he pays less than the
book value of any debt (subject to settlement discounts on the usual terms which have
been disclosed to the Buyer in the Disclosure Letter) and no debt has been written off
or has proved to be irrecoverable to any extent; and
	 
	 	1.4.6	 	the Company has not paid any service, management or similar charges or any
interest or amount in the nature of interest to any other person or incurred any
liability to make such a payment.

45

 

Part
2 — Accounts, Financial, Banking and Current Trading

	2.	 	MANAGEMENT ACCOUNTS
	 
	 	 	The Management Accounts:
	 
	2.1	 	have been prepared in good faith and with due care and so far as the Sellers are aware, are
not misleading; and
	 
	2.2	 	fairly reflect the profits and losses, assets and liabilities of the Company during the
period to which they relate.
	 
	3.	 	DEBTORS
	 
	3.1	 	There are no debts owing to the Company (whether or not due for payment) other than trade
debts incurred in the ordinary and proper course of business.
	 
	3.2	 	The Company has not factored or discounted any debt arising to it as at Completion.
	 
	4.	 	CREDITORS AND LIABILITIES
	 
	4.1	 	The Company has no creditors or any other liabilities other than those incurred in the
ordinary course of business.
	 
	4.2	 	The Sellers have disclosed to the Buyer full details of the amount of the Shareholder Loans
and the Inter-Company Debts and the Borrowings (in the latter two cases as at the date of this
Agreement).
	 
	4.3	 	Annexed to the Disclosure Letter is a list of the trade creditors as at 24 August 2005 of the
Company to whom sums in excess of £10,000 each remain unpaid at 30 days after invoice.
	 
	5.	 	GOVERNMENT GRANTS
	 
	 	 	The Company has not applied for, or received, any grant, investment, subsidy or financial
assistance from any government department or agency or any local or other authority.
	 
	6.	 	BANK ACCOUNTS
	 
	 	 	The Disclosure Letter contains the account details of all bank accounts of the Company as at
the date of this Agreement.

46

 

Part
2 — Accounts, Financial, Banking and Current Trading

	7.	 	FACILITIES
	 
	 	 	There are no financial facilities available to the Company from any person other than the
Sellers or members of either Seller’s Group nor are there any loans outstanding from the
Company to any person other than the Sellers or members of either Seller’s Group.
	 
	8.	 	LOANS TO DIRECTORS AND CONNECTED PERSONS
	 
	 	 	There will not be outstanding immediately after Completion:
	 
	8.1	 	any loan made by the Company to, or debt owing to the Company by, either Seller or any
director of the Company or any person connected with any of them;
	 
	8.2	 	any agreement or arrangement to which the Company is a party and in which either Seller or
any director of the Company or any person connected with any of them is interested;
	 
	8.3	 	any agreement or arrangement between the Company and any company of which it is a subsidiary
or another subsidiary of any such company (including but not limited to any such agreement or
arrangement under which the Company is, or may in the future become, liable to pay any
service, management or similar charge or to make any payment of interest or in the nature of
interest).

47

 

Part
3 — Compliance and Litigation

Part
3 : Compliance and Litigation

	1.	 	CONDUCT OF BUSINESS
	 
	 	 	So far as the Sellers are aware neither the Company nor any of its officers (during the
course of their duties) has done or omitted to do any act or thing which is in material
contravention of any legislation in the United Kingdom to which the Company is subject and
has, so far as the Sellers are aware, dealt with its assets in all material respects in
accordance with all applicable law and administrative requirements.
	 
	2.	 	COMPETITION LAW
	 
	2.1	 	So far as the Sellers are aware, the Company is not nor has it been during the period of the
Sellers’ ownership, a party to or concerned in any agreement, concerted practice or course of
conduct which in whole or part infringes the competition, monopolies, mergers or anti-trust
law of any country in which it has assets or carries on business.
	 
	2.2	 	So far as the Sellers are aware, in relation to competition or anti-trust matters, the Company:

	 	2.2.1	 	has not given any undertaking or assurance which is still binding on it, to; or
	 
	 	2.2.2	 	is not subject to any order of or any investigation by; or
	 
	 	2.2.3	 	has not received any process, notice, request for information or other written
communication from,

	 	 	any court or the European Commission, the EFTA Surveillance Authority, the Office of Fair
Trading, the Competition Commission, the Secretary of State for Trade and Industry or any
other competition, monopolies, mergers or other authority having jurisdiction in competition
or anti-trust matters under any competition or anti-trust legislation in any country in
which the Company has assets or carries on business.
	 
	3.	 	BOOKS, RECORDS, RETURNS AND CORPORATE ORGANISATION
	 
	3.1	 	The register of members of the Company is in the possession and ownership or under the
control of the Company and is complete, accurate and up to date.
	 
	3.2	 	No claim has been made in writing to the Company that the register of members is incorrect or
should be rectified.

48

 

Part
3 — Compliance and Litigation

	3.3	 	All returns, particulars, resolutions and other documents required to be given or delivered
by the Company to the registrar of companies have been correctly made up in all material
respects and duly given or delivered.
	 
	3.4	 	All material records and material information belonging to the Company (whether or not held
in written form) are in its exclusive possession, under its direct control and subject to
unrestricted access by it.
	 
	3.5	 	The copies of the memorandum and articles of association of the Company annexed to the
Disclosure Letter are true and complete copies, having attached to them copies of all
resolutions and agreements referred to in section 380(2) of the Companies Act, and the Company
has complied in all material respects with all the provisions of its memorandum and articles
of association and, in particular, has not entered into any ultra vires transaction.
	 
	3.6	 	The Company has not at any time:

	 	3.6.1	 	repaid or redeemed or agreed to repay or redeem any shares of any class of its
share capital or otherwise reduced or agreed to reduce any class of its issued share
capital or purchased any of its own shares;
	 
	 	3.6.2	 	made or resolved or agreed to make any issue of shares or other securities by
way of capitalisation of profits or reserves; or
	 
	 	3.6.3	 	given any financial assistance in contravention of section 151 of the
Companies Act.

	3.7	 	All material licences, permissions and consents required for the carrying on of the business
of the Company have been obtained by it and are in full force and effect and the Sellers are
not aware of any circumstances which would be likely to result in any of those licences,
permissions or consents being revoked or not renewed in the ordinary course.
	 
	4.	 	LITIGATION
	 
	4.1	 	The Company is not currently engaged, nor has it during the period of two years ending on the
date of this Agreement been engaged, in any litigation, prosecution, arbitration, mediation,
conciliation or expert determination whether as claimant or defendant or in any other capacity
where the amount claimed, contested or in dispute was in excess of £15,000.
	 
	4.2	 	The Company has not received notice that it is subject to any investigation, inquiry or
enforcement proceedings or other process by any governmental, administrative or quasi-

49

 

Part
3 — Compliance and Litigation

	 	 	governmental regulatory body or agency nor is the Company in dispute with any such body or
agency.
	 
	4.3	 	So far as the Sellers are aware there are no dispute resolution processes, proceedings and
other processes or disputes such as are referred to in paragraphs 4.1 and 4.2 of this part 3
pending or threatened by or against the Company.
	 
	4.4	 	So far as the Sellers are aware, neither the Company nor any person for whose acts or
defaults the Company may be vicariously liable has:

	 	4.4.1	 	induced a person to enter into an agreement or arrangement with the Company by
means of an unlawful payment, contribution, gift or other inducement;
	 
	 	4.4.2	 	offered or made an unlawful payment, contribution, gift or inducement to a
government official or employee; or
	 
	 	4.4.3	 	directly or indirectly made an unlawful contribution to a political activity.

	4.5	 	There is not, nor during the last three years has there been, any agreement or arrangement
(legally enforceable or not) to which the Company is or was a party and in which either of the
Sellers, any director or former director of the Company or any person connected with any of
them is or was interested in any way.
	 
	4.6	 	No person is entitled to receive from the Company a finder’s fee, brokerage or commission in
connection with this Agreement or anything contained in it.
	 
	5.	 	DATA PROTECTION
	 
	5.1	 	In this paragraph 5 of part 3 of schedule 2, “Personal Data” has the meaning given to it in
the Data Protection Act 1998.
	 
	5.2	 	As far as the Sellers are aware, the Company is in material compliance with all relevant
requirements of:

	 	5.2.1	 	the Data Protection Act 1998; and
	 
	 	5.2.2	 	the Privacy and Electronic Communications (EC Directive) Regulations 2003.

	5.3	 	The Company is duly registered as a data controller under the Data Protection Act 1998 for
all purposes for which registration is required in respect of the processing of Personal Data
by or on

50

 

Part
3 — Compliance and Litigation

	 	 	behalf of the Company and all due and requisite fees in respect of such registration have been paid.
	 
	5.4	 	The Company has not received an Enforcement Notice under the Data Protection Act 1998.

51

 

Part
4 — Contracts

Part
4 : Contracts

	1.	 	MATERIAL CONTRACTS
	 
	1.1	 	A copy of each agreement under which the Company enjoys rights or by which the Company is
bound at the date of this Agreement and which is material for the purposes of paragraph 1.2 of
this part 4, is annexed to the Disclosure Letter (or, where any such agreement is not in
writing, details of the key terms of that agreement is contained in the Disclosure Letter).
	 
	1.2	 	The following agreements shall be regarded as material for the purposes of this paragraph
1.2, namely any agreement for:

	 	1.2.1	 	the purchase, sale or leasing (including rental) of any ATM and related
security equipment;
	 
	 	1.2.2	 	the use of software on or in connection with an ATM;
	 
	 	1.2.3	 	the installation and/or de-installation of ATMs;
	 
	 	1.2.4	 	the identification of sites at which the Company might wish to install and/or
operate an ATM;
	 
	 	1.2.5	 	the borrowing of cash for installation in an ATM;
	 
	 	1.2.6	 	the transportation of cash and/or the installation of cash in an ATM;
	 
	 	1.2.7	 	the maintenance of an ATM including cleaning (distinguishing between first
line maintenance and second line maintenance);
	 
	 	1.2.8	 	connectivity between any ATM and the shared network operated by LINK
Interchange Network Limited established for the purpose, inter alia, of serving the
ATMs of network members and others and of permitting the customers of such members to
withdraw cash from their accounts mechanically and electronically;
	 
	 	1.2.9	 	the provision of any processing, settlement or transaction services or the
provision of telecommunications services in relation to an ATM;
	 
	 	1.2.10	 	mobile phone top up and/or on screen advertising; and
	 
	 	1.2.11	 	the provision of telecommunications hardware and communications lines and associated
maintenance services.

52

 

Part 4 — Contracts

	1.3	 	So far as the Sellers are aware, the Company has not materially breached and no counterparty
is in material breach of any of the agreements referred to in paragraph 1.1 of this part 4,
and the Company has not received notice from any counterparty alleging any such material
breach by the Company.
	 
	1.4	 	There is no subsisting dispute of a material nature between the Company and any other person
in relation to any of the agreements referred to in paragraph 1.1 of this part 4, and there
are no circumstances which the Sellers believe to be likely to give rise to any such dispute.
For the purposes of this paragraph, “material nature” shall mean involving an amount in excess
of £15,000.
	 
	1.5	 	The Company has not given notice or received any written notice terminating any of the
agreements referred to in paragraph 1.1 of this part 4.
	 
	1.6	 	The Company is not a party to any subsisting agreement:
1.6.1 which is not in the ordinary course of business or which is not on arm’s length terms;

	 	1.6.2	 	pursuant to which the Company has disposed of any shares or business and
remains subject to any actual or contingent liability;
	 
	 	1.6.3	 	which involves obligations of the Company which the Sellers believe the
Company is unlikely to be able to perform;
	 
	 	1.6.4	 	which is any contract of guarantee, indemnity or suretyship or any contract to
secure any obligation of any person;
	 
	 	1.6.5	 	under which the Company has granted any third party the right to buy any
assets owned or used by the Company; or
	 
	 	1.6.6	 	(being an agreement for the supply of goods or services to the Company for an
annual consideration in excess of £50,000 plus VAT (if applicable)) and save as
disclosed in the list referred to in clause 9.2.10 in relation to any Site Agreement,
which may be terminated pursuant to its terms as a result of this Agreement (or
Completion) or which contains a provision entitling the counterparty to terminate the
contract on a change of control of the management or shareholders of the Company.

	1.7	 	The Company is not, nor has it agreed to become, a member of any partnership, joint venture
or consortium or a party to any other arrangement for sharing income, profits, losses or
expenses.

53

 

Part 4 — Contracts

	2.	 	POWERS OF ATTORNEY AND AUTHORITIES
	 
	 	 	There are no subsisting powers of attorney given by the Company and no other subsisting
written authorities by which any person may execute any document, enter into any agreement
or do or agree to do anything on behalf of the Company.

	3.	 	 SUPPLIERS
	 
	 	 	During the last 12 months, no party to a Site Agreement and no party to an agreement for the
supply of goods or services to the Company for an annual consideration in excess of £50,000
(plus VAT if applicable) has stopped trading with or supplying the Company or reduced, or
indicated in writing an intention to reduce, substantially the terms on which it is prepared
to trade with or supply the Company (other than normal price and quota changes).

54

 

Part 5 — Assets

Part 5: Assets

	1.	 	ASSETS SUFFICIENT FOR THE BUSINESS
	 
	1.1	 	The assets and rights owned by or licensed to the Company, together with assets held under
any finance lease, hire purchase and rental or credit sale agreements referred to in the
Disclosure Letter, comprise all of the assets and rights necessary for the continuation of the
business of the Company as carried on at the date of this Agreement.
	 
	1.2	 	The business of the Company as carried on at the date of this Agreement does not require the
use of any material assets or rights owned by, or any material services supplied by, either
Seller or any member of either Seller’s Group.
	 
	1.3	 	The 3 DES/EMV upgrade has been successfully completed on all of the Company’s ATMs.
	 
	2.	 	OWNERSHIP AND POSSESSION OF ASSETS
	 
	2.1	 	All assets used by the Company in the course of its business as carried on at the date of
this Agreement or which are necessary for the continuation of its business, other than any
asset held under a finance lease, hire purchase and rental or credit sale agreement referred
to in the Disclosure Letter are legally and beneficially owned by the Company free from
Encumbrances, and so far as the Sellers are aware, no person has claimed to be entitled to an
Encumbrance or title in respect of any such asset.
	 
	2.2	 	All of the material tangible assets owned by the Company, or which the Company has the right
to use, are in the possession and ownership or under the control of the Company.
	 
	3.	 	INSURANCE
	 
	3.1	 	Annexed to the Disclosure Letter is a summary of the level of cover and insured risks under
the insurance policies maintained by or on behalf of the Company.
	 
	3.2	 	All premiums due on the subsisting insurance policies of or covering the Company have been
duly paid, all other material conditions of those policies have been performed and observed,
and so far as the Sellers are aware, there are no circumstances which might result in any such
insurance policy becoming void or voidable.
	 
	3.3	 	No subsisting insurance policy of or covering the Company is subject to any special or
unusual terms or restrictions.

55

 

Part
5 — Assets

	3.4	 	The Disclosure Letter contains complete and accurate details of all insurance claims in
excess of £15,000 made by the Company during the period of two years ending on the date of
this Agreement. So far as the Sellers are aware, there are no circumstances which would
entitle the Company to make a claim in excess of £25,000 or which would be required under any
of its subsisting insurance policies to be notified to the insurers.
	 
	3.5	 	The Company has, and at all material times has had, valid insurance cover in respect of its
business and assets
	 
	4.	 	CONDITION AND MAINTENANCE OF PLANT
	 
	 	 	All ATMs and all other plant, machinery, vehicles and office and other equipment owned or
used by the Company in the course of its business are in reasonable repair and condition
subject to fair wear and tear and having regard to age and usage and are regularly
maintained.
	 
	5.	 	LEASED ASSETS
	 
	 	 	Details of all material assets held by the Company under a finance lease or a hire purchase,
rental, credit sale or other similar agreement as set out in the Disclosure Letter.
	 
	6.	 	CHARGES
	 
	 	 	All charges in favour of the Company and which require registration under the Companies Act
1985 have been duly registered.

56

 

Part 6 — Sites and Environment

Part 6: Sites and Environment

	1.	 	SITES
	 
	 	 	For the purposes of the Warranties in paragraphs 1.1 and 1.2 of this schedule, agreements
for sites entered into without breach of schedule 5 shall not be regarded as Site Agreements
when those Warranties become Repeated Warranties.
	 
	1.1	 	The Company has no interest in real property other than those sites listed in schedule 6
which relate to the business of the Company (as opposed to those sites which relate to the
Business) and the agreements in respect of such sites being referred to in this Agreement as
“Site Agreements”.
	 
	1.2	 	All Site Agreements are attached to the Disclosure Letter.
	 
	1.3	 	The information set out in schedule 6 and in the Disclosure Letter with respect to the number
of ATMs which are the subject of each Site Agreement is accurate in all respects.
	 
	1.4	 	The Company has observed and performed the material covenants and conditions contained in the
Site Agreements in all material respects and has received no complaint regarding any alleged
breach of covenant or conditions under any Site Agreement.
	 
	1.5	 	The Company has not received any notice to terminate a Site Agreement and the Sellers are not
aware of any intention or circumstance that may give rise to such termination.
	 
	1.6	 	So far as the Sellers are aware, the Company has only obtained planning permission for those
specific ATMs listed in the schedule to be provided by the Sellers on Completion in accordance
with clause 9.2.11.
	 
	1.7	 	So far as the Sellers are aware, in relation to those ATMs where planning permission has been
obtained (as listed in the Disclosure Letter), such planning permission has been complied with
by the Company.
	 
	1.8	 	No interest of the Company under any Site Agreement has been registered at HM Land Registry.
	 
	2.	 	ENVIRONMENT
	 
	 	 	So far as the Sellers are aware, the Company has complied with Environmental Law in all
material respects.

57

 

Part 7 — Pensions

Part 7: Pensions

	1.	 	NO OTHER ARRANGEMENTS
	 
	 	 	Except for the Pension Scheme, the Company does not participate in or contribute to any
personal pension schemes or any occupational pension schemes (whether or not legally
binding) the main or only purpose of which is to provide pension, retirement or death
benefits for any of its employees or for the widow, widower, child or dependant of any such
employee (the “Pensionable Employees”).
	 
	2.	 	NO ASSURANCES ETC
	 
	 	 	The Company has not given any undertaking as to the introduction, continuance, improvement
or increase of any benefit of kind described in paragraph 1 of this part 7 and is neither
paying nor has in the last two years paid any such benefit to any employee.
	 
	3.	 	CONTRIBUTIONS
	 
	 	 	The Company has paid all contributions, expenses and insurance premiums which have fallen
due for payment by it to the Pension Scheme.
	 
	4.	 	MORAL HAZARD
	 
	 	 	No contribution notice or financial support direction under the Pensions Act 2004 has been
issued to the Company or to any other person in respect of the Pension Scheme and there is
no fact or circumstances likely to give rise to any such notice or direction.
	 
	5.	 	STAKEHOLDER
	 
	 	 	The Company has facilitated access for its Pensionable Employees who are not members of the
Pension Scheme to a designated stakeholder scheme as required by Section 3 of the Welfare
Reform and Pensions Act 1999.
	 
	6.	 	LITIGATION
	 
	 	 	No claims or complaints have been made or are pending or threatened in relation to the
Pension Scheme or in respect of the provision of (or failure to provide) pension, lump sum
or death benefits in relation to any of the Pensionable Employees and so far as the Sellers
are aware there is no fact or circumstance likely to give rise to such claims or complaints.

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Part 7 — Pensions

	7.	 	DEFINED BENEFIT PROMISE
	 
	 	 	No written undertaking or written assurance (whether or not legally enforceable) has been
given to any person that any benefits under the Pension Scheme (other than lump sum benefits
on death in service) will be calculated by reference to any person’s remuneration or length
of service or will be approximately or exactly any amount.
	 
	8.	 	OTHER
	 
	8.1	 	All material documentation relating to the Pension Scheme is annexed to the Disclosure
Letter.
	 
	8.2	 	So far as the Sellers are aware no discrimination on grounds of sex, disability, marital
status, hours of work, fixed-term or temporary agency workers, sexual orientation, religion or
belief is, or has at any stage, been made in the provision of pension, lump sum or death
benefits by the Company in relation to any of the Pensionable Employees.
	 
	8.3	 	The liability for all lump sum death benefits which may become payable under the Pension
Scheme to any member is fully insured with a reputable insurance company on normal terms and
at normal rates with all lives assured being treated as enjoying good health. The Sellers
have not been notified of any action or omission which would enable any insurance company
which has issued or has undertaken to issue any policy for the purpose of any of the schemes
to avoid making payment under such policy.

59

 

Part 8 — Employment

Part
8 : Employment

For the purposes of the Warranties in paragraphs 1.1, 1.2, 1.3, 1.4 and 1.13, persons who
become Employees after the date of this Agreement or offers of employment made after the
date of this Agreement in either case without breach of schedule 5 shall not be regarded as
Employees or the subject of any such offer when those Warranties become Repeated Warranties.

	1.	 	The Sellers warrant that:
	 
	1.1	 	the Disclosure Letter contains details of the identities, dates of birth, job titles, basic
annual salaries, bonuses, commission and benefits of all the Employees;
	 
	1.2	 	copies of all of the standard contracts applying to the Employees are annexed to the
Disclosure Letter;
	 
	1.3	 	there are no persons engaged or employed by the Company except the Employees;
	 
	1.4	 	the Disclosure Letter contains details of any outstanding offer of employment made to any
individual by the Company;
	 
	1.5	 	there are no agreements between the Company and any trade union or other body representing
the Employees nor are there any works councils or staff associations or other employee
representatives in place;
	 
	1.6	 	as far as the Sellers are aware, there is no material outstanding or threatened claim or
legal proceeding against the Company where the amount claimed is in excess of £10,000 by any
Employee or any former employee of the Company in relation to his or her employment;
	 
	1.7	 	the Company has not agreed for the future any variation of any of the terms referred to in
paragraph 1.1 above;
	 
	1.8	 	the Sellers are not aware of any Employee who has been off sick for a period of 30 days or
more in the six month period ending at the date of this Agreement (whether or not consecutive)
whether or not they have received, are receiving or due to receive payment under any sickness
or disability or permanent health insurance scheme or Group Protection Insurance Scheme and so
far as the Sellers are aware, there are no claims under such schemes pending or threatened and
in any event that all such claims are fully covered by insurance;

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Part 8 — Employment

	1.9	 	there is no agreement, scheme or policy of insurance for the payment of any allowances, lump
sums or other like benefits during periods of sickness or disablement for the benefit of the
Employees, save as disclosed in the Disclosure Letter;
	 
	1.10	 	there are no agreements for the provision of consultancy services to the Company nor are
there any persons on secondment to or from the Company;
	 
	1.11	 	there are no schemes in operation by the Company under which any Employee is entitled to any
remuneration calculated by reference to the whole or part of the turnover, profits or sales of
the Company or to any other form of bonus or commission or any performance related bonus plan;
	 
	1.12	 	the Company does not in respect of any Employee operate any approved share option scheme,
share incentive scheme, approved profit sharing scheme, enterprise management incentive
scheme, employee share ownership plan or unapproved share scheme under which share benefits
are provided, in respect of any Employee. No other company provides any such scheme or plan
in respect of the Employees;
	 
	1.13	 	the Disclosure Letter sets out all material benefits to which the Employees are entitled. No
proposal or commitment has been communicated to any Employee regarding the introduction,
increase or improvement of any material benefit;
	 
	1.14	 	all subsisting contracts of service and all contracts for services with any individual to
which the Company is a party are determinable on three months’ notice or less;
	 
	1.15	 	no Employee has given or received a period of notice terminating his or her employment or
engagement which has not yet expired;
	 
	1.16	 	other than in relation to season ticket loans, the Company has not made any loan or advance,
or provided any other form of financial assistance, to any Employee which is still
outstanding; and
	 
	1.17	 	except as set out in the Disclosure Letter there are no Employees on maternity leave.

61

 

Part 9 — Intellectual Property

Part 9: Intellectual Property

	1.	 	DEFINITIONS
	 
	 	 	In this part 9:

	 	 	 	 	 
	 

	 	“Business Intellectual Property”
	 	means the Intellectual Property Rights
which the Company uses on the date of
this Agreement in connection with its
business; and
	 
	 	 	 	 
	 

	 	“Licence”
	 	means any licence, permission or consent
in respect of the use of any Intellectual
Property Rights (including, without
limitation, any unwritten and/or informal
licensing arrangement) and any
arrangement of which any licence,
permission or consent forms part.

	2.	 	OWNERSHIP
	 
	2.1	 	The Company is either the sole legal and beneficial owner of the Business Intellectual
Property, or the Company has a valid Licence to use all Business Intellectual Property which
it uses.
	 
	2.2	 	The Company does not own any domain names.
	 
	2.3	 	The Company has not granted a Licence to any person in respect of the Business Intellectual
Property.
	 
	3.	 	ADEQUACY OF RIGHTS
	 
	3.1	 	The Intellectual Property Rights owned by the Company or used by the Company pursuant to a
Licence comprises all the Intellectual Property Rights necessary to carry on the business of
the Company as at Completion.
	 
	3.2	 	The Disclosure Letter contains details of all the material Licences granted to the Company
for use of any of the Business Intellectual Property.
	 
	4.	 	INFRINGEMENTS
	 
	4.1	 	As far as the Sellers are aware, no activities of the Company infringe any Intellectual
Property Rights of a third party or involve the unlicensed use of a third party’s confidential
information or give rise to liability to pay compensation.

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Part 9 — Intellectual Property

	4.2	 	As far as the Sellers are aware, no third party has made any unauthorised use or exploitation
of any Business Intellectual Property or has infringed any Business Intellectual Property, and
no third party or competent authority has, within the 12 months prior to the date of this
Agreement, made any claim, challenge or opposition against the Company in relation to the
Business Intellectual Property.
	 
	5.	 	CONFIDENTIAL INFORMATION AND KNOW-HOW
	 
	5.1	 	The Company enforces and operates reasonable procedures to maintain the confidentiality of
its Confidential Information and Know-How. As far as the Sellers are aware, such
confidentiality has not been materially breached.
	 
	5.2	 	As far as the Sellers are aware, the Company has not disclosed (except in the ordinary course
of business or subject to a binding confidentiality agreement) any Confidential Information or
Know-How which is material to its business.
	 
	6.	 	REGISTERED INTELLECTUAL PROPERTY RIGHTS
	 
	 	 	None of the Intellectual Property Rights owned by the Company is registered, and no
application for registration of any such Intellectual Property Rights has been made by the
Company.

63

 

Part 10 — Information Technology

Part 10: Information Technology

	1.	 	DEFINITIONS
	 
	 	 	In this part 10:

	 	 	 	 	 
	 

	 	“Hardware”
	 	means all information technology,
telecommunications, network and peripheral
equipment used by the Company at Completion;
	 
	 	 	 	 
	 

	 	“IT Systems”
	 	means all Hardware and Software; and
	 
	 	 	 	 
	 

	 	“Software”
	 	means all computer programs which are used by the
Company at Completion.

	2.	 	THE HARDWARE AND SOFTWARE
	 
	2.1	 	The Company owns or is permitted under agreement to use the Hardware and owns or is licensed
to use the Software.
	 
	2.2	 	None of the Software was designed, written or developed for the Company.
	 
	3.	 	ADEQUACY OF IT SYSTEMS
	 
	3.1	 	The IT Systems are the only information technology systems (including equipment and computer
programs) required by the Company to carry on its business as at the date of this Agreement.
	 
	3.2	 	The IT Systems are in the possession of the Company.
	 
	3.3	 	No third party provides any part of the IT Systems under any outsourcing, application service
provider, hosting or similar arrangement.
	 
	4.	 	OPERATION AND MAINTENANCE OF IT SYSTEMS
	 
	4.1	 	The Disclosure Letter contains details of the material agreements for the use of equipment,
licences, maintenance and support agreements specifically relating to the IT Systems.
	 
	4.2	 	There has been no material disruption to the business of the Company in the 12 month period
ending on the date of this Agreement due to failures or breakdowns of the IT Systems or any
part of them.

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Part
10 — Information Technology

	5.	 	SECURITY OF IT SYSTEMS
	 
	 	 	The Disclosure Letter contains details of the security processes in place to protect the IT
Systems and the disaster recovery processes used by the Company to enable the Company to
continue to function without any material disruption in the event of a failure or breakdown
of any part of the IT Systems.

65

 

SCHEDULE 3

Tax

Part 1: Tax definitions and interpretation

	1.	 	TAX DEFINITIONS
	 
	 	 	In this schedule the following words and expressions shall have the following meanings
unless the context requires otherwise:

	 	 	 	 	 	 	 	 	 
	 

	 	“Buyer’s Relief”
	 	(a)
	 	any relief arising to the Company to
the extent that it either arises in
respect of an event occurring or period
commencing after Completion; or	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	(b)
	 	any relief arising to any member of
the Buyer’s Group (other than the
Company);	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	“Event”	 	any act, omission, arrangement,
transaction or other event whatsoever
including being or ceasing to be a member
of a group or partnership or any other
association, and including also the
execution of all provisions of this
agreement, and references to the results
of an event occurring or deemed to have
occurred on or before Completion and shall
include the combined result of two or more
events where one or more of those events
have taken place on or before Completion
and outside the ordinary course of
business and the other or others shall
have taken place after Completion and
within the ordinary course of business of
the Company;

66

 

	 	 	 	 	 	 	 	 	 
	 	 	“Group Relief”	 	losses and other amounts eligible for
surrender pursuant to sections 402 to 413
(inclusive) of ICTA;;
	 
	 	 	 	 	 	 	 	 
	 	 	“ITEPA”	 	the Income Tax (Earnings and Pensions) Act
2003;
	 
	 	 	 	 	 	 	 	 
	 	 	“Relief”	 	any loss, relief, exemption, allowance,
deduction, credit or set-off in respect of
Tax or relevant to the computation of
income profits or gains for the purposes
of any Tax and any right to repayment of
Tax and:
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	(a)
	 	any reference to the “use or set-off”
of a Relief shall be construed
accordingly;	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	(b)
	 	any reference to the “loss” of Relief
includes the absence, non-existence,
reduction or cancellation of any such
Relief or such Relief being wholly or
partly unavailable; and	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	(c)
	 	any reference to a “right to repayment
of Tax” includes any right to repayment
supplement or interest or other similar
payment in respect of Tax,
and cognate expressions shall be construed
accordingly;	 	 

67

 

	 	 	 	 	 	 	 	 	 
	 	 	“Saveable Amount”	 	in respect of a Sellers’ Relief, the
amount by which a Tax Liability that would
otherwise have given rise to an actual
payment of Tax, can be decreased by the
use of that Sellers’ Relief but excluding
Two Million Two Hundred Thousand Pounds
only (£2,200,000) of trading losses which
are available for carry forward;
	 
	 	 	 	 	 	 	 	 
	 	 	“SDLT”	 	Stamp duty land tax;
	 
	 	 	 	 	 	 	 	 
	 	 	“Sellers’ Relief”	 	any Relief arising to the Company pursuant
to an Event which occurred prior to
Completion, other than a Relief referred
to in paragraph 2.1.2 of this part 1;
	 
	 	 	 	 	 	 	 	 
	 	 	“Tax” or “Taxation”	 	all forms of taxation and duties imposed
in the United Kingdom or elsewhere
including but not limited to:
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	(a)
	 	in the United Kingdom, income tax to
which the Pay As You Earn system applies,
advance corporation tax, any liability
arising under section 419 or 601 ICTA,
national insurance contributions, value
added tax and input tax with the meaning
of section 24 VATA, stamp duty, stamp duty
reserve tax and SDLT;
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	(b)
	 	all penalties, surcharges, fines and
interest relating to any of the above; and
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	(c)
	 	any payment by way of settlement or
compromise of any Tax Demand or Tax
Liability of the Company in respect of any
of the above;
	 
	 	 	 	 	 	 	 	 
	 	 	“Tax Authority”	 	H.M. Revenue & Customs and any other
authority, body or official (whether in
the

68

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	United Kingdom or elsewhere) competent
to assess, demand, impose, administer or
collect Tax or make any decision or ruling
on any matter relating to Tax and in the
case of either an obligation to make a
payment, or repay (in whole or in part)
any payment, for group relief, the
surrender of advance corporation tax or a
transferred tax refund, any person to whom
such payment or repayment is required to
be made;
	 
	 	 	 	 	 	 	 	 
	 

	 	“Tax Counsel”
	 	(a)
	 	in the case of a claim relating to a
Tax Liability arising in England or Wales,
a member of the Bar of England and Wales
who has been called for and has
specialised in tax matters for a minimum
period of 10 years;
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	(b)
	 	in the case of a claim under this deed
relating to a Tax Liability arising
outside England and Wales, an equivalent
specialist adviser;
	 
	 	 	 	 	 	 	 	 
	 	 	“Tax Demand”	 	any notice, demand, assessment, letter or
other document issued or other action
taken by or on behalf of any Tax Authority
(or any return or other document prepared
or to be prepared by or on behalf of the
Company) indicating that:
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	(a) the Company or the Buyer has or may
have a liability to make a payment of or
in respect of Tax; or
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	(b) any Relief or any Buyer’s Relief is,
may be or has been (in whole or in part)
lost, set-off or used,

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	 	 	 	 	and in respect of which a Tax Claim may be
made; and
	 
	 	 	 	 	 	 	 	 
	 	 	“Tax Liability”	 	the meaning ascribed to it in paragraph
2.1 of this part 1.

	2.	 	TAX INTERPRETATION
	 
	2.1	 	In this schedule reference to a “Tax Liability” means:

	 	2.1.1	 	a liability to make any actual payment or increased payment of or in respect
of Tax (whether or not such liability is a primary liability and whether or not the
person so liable has or may have any right of indemnity or reimbursement (statutory or
otherwise) against any other person);
	 
	 	2.1.2	 	the loss of any Relief which has been taken into account in computing, or in
obviating the need for, any provision for Tax in the Accounts or which is reflected or
shown as an asset in the Accounts;
	 
	 	2.1.3	 	the use or set off of any Relief which arises in respect of an Event occurring
after Completion or the use or set off of the Two Million Two Hundred Thousand Pounds
£2,200,000 trading losses which are available for carry forward as at the Accounts Date
where the use or set off of that Relief has the effect of reducing or eliminating any
Tax Liability of the Company which would otherwise have given rise to a Tax Claim for
which the Sellers would have been liable;
	 
	 	2.1.4	 	any liability to make a payment for Group Relief or for the surrender of
advance corporation tax or for a transferred tax refund or any refund;

provided that:

	 	2.1.5	 	in cases falling within paragraph 2.1.2 of this part 1 where the Relief lost:

	 	2.1.5.1	 	is a right to a repayment of Tax, the Tax Liability shall be treated as
being equal to the amount of Tax which would have been repaid but for such
loss;
	 
	 	2.1.5.2	 	would have operated as a deduction from gross income, profits or gains, the
Tax Liability shall be treated as being an amount equal to the earliest
liability of the Company to make an actual payment of Tax which could have been
avoided by the use or set off of that Relief had it not been lost;

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	 	2.1.5.3	 	in cases falling within paragraph 2.1.3 of this part 1, the Tax Liability
shall be treated as being equal to the amount of Tax for which the Company
would have been liable had that liability not been set off or otherwise
extinguished by the use or set off of the Relief in question; and
	 
	 	2.1.5.4	 	in any case falling within paragraphs 2.1.4 of this part 1, the Tax
Liability shall be treated as being equal to the amount of the payment required
to be paid or repaid.

	2.2	 	In interpreting and applying this schedule:

	 	2.2.1	 	references to a part are references to one of parts 1 to 4 of this schedule;
	 
	 	2.2.2	 	any reference to any Event occurring or to anything being the case includes
any Event which is deemed to occur and anything which is deemed to be the case for Tax
purposes;
	 
	 	2.2.3	 	any reference to income, profits or gains earned, accrued or received or
having arisen includes income, profits or gains deemed to be or treated as being
earned, accrued or received or as having arisen for any Tax purposes;
	 
	 	2.2.4	 	any reference to an Event occurring “in the ordinary course of the Company’s
business” in this schedule shall not include:

	 	2.2.4.1	 	any transaction or arrangement or series of transactions or arrangements
which relate to or involve the acquisition or disposal of an asset or the
supply of services (including the lending of money, or the hiring or licensing
of tangible or intangible property) which is not entered into on arm’s length
terms but only (in the case of an acquisition of an asset or the receipt of
services) to the extent of the excess (if any) of the consideration actually
paid over the consideration deemed to have been paid and (in the case of a
disposal of an asset or the supply of services) to the extent of the excess
(if any) of the consideration deemed to have been received over the
consideration actually received;
	 
	 	2.2.4.2	 	any transaction or arrangement or series of transactions or arrangements
which relate to or involve any company becoming or ceasing to be treated as a
member of a group of companies or as

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	 	 	 	becoming or ceasing to be associated or connected with any other
person for Tax purposes;
	 
	 	2.2.4.3	 	anything which involves, or leads directly or indirectly to, the receipt by
a Company of any demand in respect of any Tax Liability (other than in respect
of income tax payable via the pay as you earn system, national insurance
contributions or VAT) of, or properly attributable to, another person (other
than another Company);
	 
	 	2.2.4.4	 	any transaction or arrangement or series of transactions or arrangements
which include any step or steps having no commercial or business purpose other
than the reduction, avoidance or deferral of a Tax Liability; and

	 	2.2.5	 	any reference to the last date on which a payment of Tax can be made or to the
last date on which the Company is liable to make an actual payment of Tax (and cognate
expressions) shall be interpreted as meaning the last date on which a payment in
respect of Tax can be made to the appropriate Tax Authority without incurring a
liability (contingent or otherwise) to interest or a charge or penalty in respect of
late payment of such Tax.

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Part 2: Tax Warranties

	1.	 	GENERAL
	 
	1.1	 	All returns, computations and information which are, or have been, required to be made or
given by the Company for any Taxation purpose:

	 	1.1.1	 	have been made or given within the requisite periods and on a proper basis and
were, when made and remain, true and accurate; and
	 
	 	1.1.2	 	so far as the Sellers are aware, none of them is the subject of any dispute
with any Tax Authority.

	1.2	 	Every claim or election for capital allowances which has been taken into account for the
purposes of the Accounts has been or will be duly submitted within the requisite periods and
its validity is not so far as the Sellers are aware likely to be questioned or challenged by
the relevant Tax Authority.
	 
	1.3	 	The Company is not involved in any dispute with, or investigation, audit or discovery by, any
Tax Authority and, so far as the Sellers are aware, no such dispute, investigation, audit or
discovery is pending or likely to arise.
	 
	1.4	 	No accounting period of the Company for corporation tax purposes has ended since the Accounts
Date.
	 
	1.5	 	The Company:

	 	1.5.1	 	has duly and punctually paid all Taxation which it has become liable to pay
before the date of this Agreement; and
	 
	 	1.5.2	 	has duly deducted and accounted for all Taxation due to have been deducted or
accounted for by it before the date of this Agreement.

	1.6	 	The Company is not liable to pay interest on, or penalties in respect of, any unpaid Taxation
or any default in respect of any Taxation matter.
	 
	1.7	 	No Taxation Authority has agreed to operate any special arrangement (being an arrangement not
based on a strict and detailed application of the relevant legislation) in relation to the
affairs of the Company.

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	1.8	 	The Company has complied with all the record keeping requirements of Taxation law applicable
to it in all material respects.
	 
	1.9	 	So far as the Sellers are aware, all transactions entered into by the Company after 1 January
2004 have been entered into on an arm’s length basis and the consideration (if any) charged,
received or paid by the Company on all transactions entered into by it has been equal to the
consideration which might have been expected to be charged, received or paid (as appropriate)
between independent persons dealing at arm’s length and no notice or enquiry has been made
pursuant to Schedule 28 AA ICTA in connection with any such transaction.
	 
	1.10	 	The Company has at no time been a member of a group of companies as defined in section 170
TCGA.
	 
	1.11	 	So far as the Sellers are aware, the Company is not nor is it likely to become liable to pay,
or make reimbursement or indemnity in respect of any Taxation (or amounts corresponding to
Taxation) in consequence of the failure by any other person to discharge that Taxation.
	 
	1.12	 	So far as the Sellers are aware, there has been no major change in nature or conduct of the
Company’s trade in the three years preceding Completion.
	 
	1.13	 	The amount of provision for deferred tax contained in the Accounts was at the date of the
Accounts were prepared adequate and fully in accordance with UK GAAP.
	 
	1.14	 	So far as the Sellers are aware, no circumstance or event has occurred which will or may
cause the disallowance of any trading losses claimed prior to Completion or be the object of
any dispute with any Tax Authority and the Company is not aware of any reason why such losses
might cease to be available or might become restricted (including by virtue of section 768 or
768A ICTA.
	 
	1.15	 	The Sellers warrant that so far as the Sellers are aware Two Million Two Hundred Thousand
Pounds (£2,200,000) of trading losses are available for carry forward as at the Accounts Date.
	 
	2.	 	EMPLOYMENT
	 
	2.1	 	The Company has complied with all regulations relating to PAYE and the payment of national
insurance contributions that are applicable to it and, in particular:

	 	2.1.1	 	has deducted Tax as required by law from all payments made to its employees or
former employees;

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	 	2.1.2	 	has accounted to the appropriate Tax Authority for all Tax so deducted and for
all Tax chargeable in respect of benefits provided to its employees or former employees
for which the Company is liable to account; and
	 
	 	2.1.3	 	has kept and used complete, accurate and up-to-date (in all material respects)
records and other documents as appropriate or required for those purposes, and has made
in due time correct and proper returns to the appropriate Tax Authority in respect of
all relevant employees.

	2.2	 	The Company does not participate in or operate any give as you earn scheme, any profit
related pay scheme or any share option or share incentive scheme.
	 
	2.3	 	The Disclosure Letter sets out sufficient details of all current dispensations and notices
granted by any Tax Authority relating to the Company with respect to employee taxation
procedures and collection.
	 
	3.	 	VAT
	 
	3.1	 	The Company is registered for VAT under registration number 792410039.
	 
	3.2	 	The Company is not a member of a group for VAT purposes.
	 
	3.3	 	The Company has no outstanding entitlement to make any claim for repayment supplement or
recovery of overpaid VAT under sections 78 to 80 VATA.
	 
	3.4	 	Details of the VAT partial exemption method operated by the Company has been agreed with the
appropriate Tax Authority and is set out in the Disclosure Letter.
	 
	3.5	 	The Company does not own any assets in respect of which it is required to make adjustments
pursuant to Part XV of the Value Added Tax Regulations 1995.
	 
	4.	 	FOREIGN
	 
	4.1	 	The Company:

	 	4.1.1	 	has never been resident for tax purposes in any jurisdiction other than the
country in which it was incorporated; and
	 
	 	4.1.2	 	has never been a dual resident company; and

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	 	4.1.3	 	has no branch, agency, place of business or permanent establishment outside
the country in which it was incorporated.

	5.	 	TAX AVOIDANCE
	 
	5.1	 	The Company has never entered into a transaction to which the provisions of any Tax avoidance
laws are applicable other than transactions in respect of which appropriate clearances have
been obtained on the basis of full and accurate disclosure to the appropriate Tax Authority of
all material facts and considerations material to be known to the appropriate Tax Authority.
	 
	5.2	 	Any transaction for which consent or clearance (of the nature referred to in paragraph 5.25.1
above) has previously been obtained has been carried into effect (if at all) only in
accordance with the terms of the application requesting such consent or clearance.
	 
	6.	 	STAMP TAXES
	 
	6.1	 	There are no circumstances or transactions to which the Company is, or has been, a party
which may result in the Company becoming liable to, or accountable for, unpaid stamp duty or
any penalty in respect of such unpaid stamp duty.
	 
	6.2	 	All documents to which the Company is a party and which are necessary to prove the title of
the Company to any asset owned or possessed by it and/or contain material rights on the part
of the Company have been duly stamped with stamp duty.
	 
	6.3	 	The Company has paid all amounts of SDLT for which it is liable and which have fallen due.
	 
	7.	 	CAPITAL GAINS
	 
	 	 	The Disclosure Letter sets out full particulars of all claims and elections made or to be
made insofar as they could affect the chargeable gain or allowable loss which would arise in
the event of a disposal after the Accounts Date by the Company of any of its assets, and
indicates which assets (if any) so affected would not on a disposal give rise to relief
under schedule 4 to TCGA.

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Part 3: Tax Covenant

	1.	 	SELLERS’ COVENANT
	 
	1.1	 	Subject as provided in this schedule, the Sellers covenant jointly and severally with the
Buyer to pay to the Buyer (in cleared funds) an amount equal to any Tax Liability of the
Company arising in consequence of any of the following:

	 	1.1.1	 	any Event which occurred on or before Completion;
	 
	 	1.1.2	 	any income, profits or gains earned, accrued, received or which arose on or
before Completion; or
	 
	 	1.1.3	 	the Company being or becoming liable in consequence of the failure by any
other company:

	 	1.1.3.1	 	which was, prior to Completion, a member of a group (as defined for any
relevant Tax purposes) of which the Company was, prior to Completion, a
member; or
	 
	 	1.1.3.2	 	which was, prior to Completion, under the control of any person or persons
that directly or indirectly controlled the Company prior to Completion; or

to discharge Tax within a specified period or otherwise.

	1.2	 	The Sellers specifically covenant jointly and severally to pay to the Buyer an amount equal
to any Tax Liability of the Company arising as result of any failure of the Company to
properly account for any PAYE and NIC liabilities that arose on or before Completion and any
third party reasonable costs and expenses properly incurred in connection with the current
investigation into the Company’s PAYE and NIC compliance .
	 
	1.3	 	The Sellers covenant jointly and severally to pay to the Buyer an amount equal to any Tax
Liability arising from or relating to VAT as a result of the Company being included as part of
the Travelex Holdings Limited VAT group.
	 
	1.4	 	The Sellers covenant jointly and severally to pay to the Buyer an amount equal to any Tax
Liability of the Company arising pursuant to transactions entered into by the Company after 1
January 2004 as a result of the application of Schedule 28 AA ICTA to such transactions.

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	1.5	 	The Sellers covenant jointly and severally to pay to the Buyer an amount equal to any Tax
Liability of the Company arising as a result of the Company being at any time prior to
Completion a close company within section 414 ICTA.
	 
	1.6	 	The Sellers covenant jointly and severally to pay to the Buyer an amount equal to any Tax
Liability of the Company arising as a result of the acquisition of Travelex Holdings Limited
by Trapax Payments Limited in August 2005.
	 
	1.7	 	Any payment made by the Sellers to the Buyer pursuant to this schedule shall, so far as
possible, be a reduction in or refund of the consideration payable or paid by the Buyer to the
Sellers pursuant to this Agreement to the extent permissible by law.
	 
	1.8	 	The Sellers covenant jointly and severally to pay to the Buyer all costs and expenses that
are reasonably and properly incurred or payable by the Buyer in connection with a Tax Claim
which results in a payment being required to be made by the Sellers.
	 
	2.	 	BUYER’S COVENANT
	 
	2.1	 	For the purposes of this paragraph, “Buyer’s Group” shall also include any company which is,
or has at any time been, treated for any Tax purpose as being a member of the same group of
companies as the Buyer or any member of the Buyer’s Group or as being associated with the
Buyer and references to “Relevant Company” shall mean the Company or any member or members of
the Buyer’s Group.
	 
	2.2	 	The Buyer covenants with the Sellers to pay to the Sellers an amount equal to any liability
to Tax or increased liability to Tax of the Sellers or any member or members of a Seller’s
Group which arises as a consequence of or by reference to any Relevant Company or any person
connected with it after Completion failing to pay the whole of any amount of Tax for which it
is liable provided that (and to the extent that) the liability for that Tax arises in
circumstances such that (but only to the extent that) the Buyer would not have been entitled
to make a claim against the Sellers pursuant to this schedule in respect of that Tax had it
been paid by the Relevant Company and provided further that the Sellers have not already
recovered that Tax from the Buyer or any Company (and the Sellers shall procure that no such
recovery is sought to the extent payment is made hereunder).
	 
	2.3	 	The Buyer covenants with the Sellers to pay to the relevant Seller or any member or members
of that Seller’s Group an amount equal to thirty pence for every pound by which the trading
losses of Two Million Two Hundred and Fifty Seven Thousand Seven Hundred and Ten Pounds
(£2,257,710) which are to be surrendered by way of Group Relief in respect of the accounting

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	 	 	periods ended 31 December 2003 and 31 December 2004 (“Surrendered Losses”) are reduced
PROVIDED THAT:

	 	2.3.1	 	the Sellers notify the Buyer as soon as reasonably practicable after becoming
aware that such Surrendered Losses are no longer available for surrender whether in
full or in part to the Sellers or any member or members of the Seller’s Group;
	 
	 	2.3.2	 	the amount by which the Surrendered Losses are reduced (“Reduced Losses”) is
available to be carried forward and are utilised by the Buyer within the 3 accounting
periods following the end of the accounting period in which the notice is given to
reduce a post Completion Liability to Tax of the Company and not to reduce a Liability
to Tax which would give rise to a claim pursuant to this Schedule PROVIDED THAT the
Buyer will be deemed for the purposes of this clause 2.3 to have utilised such Reduced
Losses in priority to the Two Million Two Hundred Thousand Pounds (£2,200,000) trading
losses which are available for carry forward.

	 	 	For the avoidance of doubt, the provisions of this clause will not apply where the
Surrendered Losses are reduced by reason solely of the Surrendered Losses not being
available for surrender by the Company.
	 
	 	 	The Buyer hereby further agrees to provide the Sellers with its reasonable assistance in
making any adjustments to the Group Relief which has been surrendered prior to Completion.
	 
	2.4	 	If a Seller or any member of that Seller’s Group uses a Relief so as to reduce or eliminate a
liability to Tax for which the Buyer would otherwise have been liable to make a payment
pursuant to paragraph 2.2 or 2.3 of this part 3, the Buyer shall be liable to make a payment
to the Sellers pursuant to paragraph 2.2 or 2.3 of this part 3 as if that liability to Tax had
not been so reduced or eliminated.
	 
	2.5	 	Paragraphs 5 and 6 of part 4 (due date for payment and conduct of tax litigation) shall apply
to the Buyer’s covenant contained in paragraph 2.2 and 2.3 of this part 3 replacing references
to the Seller with references to the Buyer (and vice versa) and making any other necessary
modifications.

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Part 4: Miscellaneous, including exclusions and limitations, conduct of claims and payments

	1.	 	CORRESPONDING BENEFIT
	 
	1.1	 	Where:

	 	1.1.1	 	a Tax Liability of the Company gives rise to a Relief to which the Company is
entitled and which would not otherwise have arisen (a “Relevant Relief”); and
	 
	 	1.1.2	 	the Sellers have made, or have a liability to make, a payment to the Buyer in
respect of such Tax Liability under either the Tax Covenant or the Tax Warranties,

an amount equivalent to the lesser of:

	 	1.1.3	 	the amount of Tax which the Company would have been liable to pay but for the
availability of the Relevant Relief; and
	 
	 	1.1.4	 	the amount paid, or to be paid, by the Sellers in respect of the Tax Liability
giving rise to the Relevant Relief,

	 	 	shall, where the Sellers have already made a payment to the Buyer, be refunded to the
Sellers and, where no such payment has been made, be carried forward and set off against any
liability of the Sellers to make such payment in respect of a claim for recovery of that Tax
Liability pursuant to a Tax Claim.
	 
	1.2	 	The Buyer shall procure that the Company shall use its reasonable endeavours to obtain and
maximise any Relevant Relief to which it may become entitled although the Company shall not be
obliged to use the Relevant Relief in priority to any other Relief then available to it.
	 
	1.3	 	Any amount which becomes payable pursuant to this paragraph 1 of part 4 shall be paid three
Business Days following the date on which the Relevant Relief becomes available.
	 
	1.4	 	The Sellers shall be entitled to require, and the Buyer shall procure, that the Company’s
auditors shall (at the Sellers’ cost) certify the amount of any payment due under this
paragraph 1 of part 4.
	 
	2.	 	THIRD PARTY RECOVERY
	 
	2.1	 	If the Sellers have paid, or are liable to pay, an amount to the Buyer in respect of a Tax
Liability (pursuant either to the Tax Covenant or the Tax Warranties) and the Company or the
Buyer has received a payment or obtained a reimbursement, refund, credit or set-off from any
person (other than the Buyer or the Company) in respect of the Tax Liability or has (whether
by operation of

80

 

	 	 	law, contract or otherwise) a right of reimbursement or refund against any other person or
persons (other than the Buyer or the Company) in respect of the Tax Liability, the Buyer
shall (but no later than the sixth anniversary of this agreement):

	 	2.1.1	 	notify the Sellers as soon as reasonably practicable and, in any event, within
20 Business Days; and
	 
	 	2.1.2	 	in the case of a right of reimbursement or refund and where requested by the
Sellers, procure that the Company shall (subject to the Buyer or the Company first
being fully indemnified by the Sellers against any tax liability that may be suffered
on receipt of that amount and against any reasonable costs and expenses incurred in
recovering that amount) take such action as the Sellers may reasonably request to
enforce the right, keeping the Sellers fully informed of any progress.

	2.2	 	Where the Buyer or the Company receives an amount from a third party pursuant to paragraph
2.1 of this part 4, an amount equal to the lesser of:

	 	2.2.1	 	the amount paid, or to be paid, by the Sellers pursuant to a Tax Claim in
respect of the Tax Liability in question save to the extent that such payment
constitutes a reimbursement of costs and / or expenses; and
	 
	 	2.2.2	 	the amount received by the Buyer or the Company from any third party as
contemplated in this paragraph 2 of part 4, less any costs and / or expenses reimbursed
and any Tax due on such an amount,

	 	 	shall, where the Sellers have already made a payment to the Buyer, be refunded to the
Sellers within five Business Days following the date on which the Buyer or the Company
receives the payment from the third party and, where the Sellers have not already made a
payment to the Buyer, be carried forward and set off against any liability of the Sellers in
respect of a claim for recovery of that Tax Liability pursuant to a Tax Claim.
	 
	3.	 	OVER-PROVISIONS
	 
	3.1	 	If any provision for Tax in the Accounts has proved to be an over-provision then an amount
equal to such over-provision (as determined and certified (in their opinion) by the auditors
for the time being of the Company at the request and cost of the Sellers) shall be dealt with
in accordance with the terms of paragraph 3.2 of this part 4. The Buyer shall not require the
said auditors to certify (in their opinion) such over-provision unless and until requested to
do so by the Sellers.

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	3.2	 	Where pursuant to paragraph 3.1 of this part 4 any amount (a “Relevant Amount”) is to be
dealt with in accordance with this paragraph:

	 	3.2.1	 	the Relevant Amount shall be first set-off against any payment then due from
the Sellers pursuant to any Tax Warranty Claim or Tax Claim;
	 
	 	3.2.2	 	to the extent that there is an excess, a refund shall be made to the Sellers
of any previous payment or payments made by the Sellers pursuant to any Tax Warranty
Claim or any Tax Claim and not previously refunded under this paragraph, up to the
amount of such excess; and
	 
	 	3.2.3	 	to the extent that the excess referred to in paragraph 3.2.2 of this part 4 is
not exhausted, the balance shall be carried forward and set-off against any future
payment or payments which become due from the Sellers pursuant to any Warranty Claim or
any Tax Claim.

	3.3	 	The Buyer shall notify the Sellers of any Event giving rise to a Relevant Amount as soon as
reasonably practicable after and in any case within 20 Business Days following the day on
which it became aware that there was an over-provision.
	 
	4.	 	SELLERS’ RELIEFS AND PERMITTED SURRENDERS
	 
	4.1	 	No liability shall arise for the Sellers pursuant to a Tax Claim in respect of a Tax
Liability unless, and then only to the extent that, the amount of that Tax Liability exceeds
the Saveable Amount available to mitigate that Tax Liability or which would have been so
available had it not already been used against one or more Tax Liabilities of the Company
which does not give rise to a liability for the Sellers pursuant to a Tax Claim.
	 
	4.2	 	The Buyer shall, if the Sellers shall at any time reasonably request and at the Sellers’
expense, deliver to the Sellers a report from the Company’s auditors for the time being
confirming that in their opinion all Sellers’ Reliefs have been used in accordance with
paragraph 5.1 of this part 4.
	 
	4.3	 	The Buyer shall permit the Sellers (or either of them) to discharge (in whole or in part) any
liability which the Sellers would or might otherwise have pursuant to a Tax Claim by
surrendering or procuring the surrender to the Company by a company in the Sellers’ Group of
Group Relief to the extent permitted by law without any payment being made by the Company in
consideration of such surrender or in connection with such election. The Buyer shall procure
that the Company takes all such steps as are reasonably necessary to enable the Sellers to
effect any such surrender or make any such election.

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	4.4	 	Any sum not paid by the Sellers on the due date for payment specified in paragraph 5.1 shall
bear interest (which shall accrue from day to day after as well as before any judgment for the
same) at a rate of two per cent per annum over the base rate of Lloyds TSB Bank plc from the
due date to and including the day of actual payment of such sum. Any interest due under this
paragraph shall be paid on the demand of the Buyer on or following the date of payment of such
sum.
	 
	5.	 	DUE DATE FOR PAYMENT
	 
	5.1	 	Where the Sellers become liable to make any payment pursuant to a Tax Claim, the due date for
the making of the payment shall be:

	 	5.1.1	 	where the payment relates to a liability of the Company to make an actual
payment of Tax, the later of three Business Days prior to the last date on which that
payment of Tax can be made and 10 Business Days after service of a notice of the Tax
Demand on the Sellers by the Buyer stating that the Sellers have a liability for a
quantified amount pursuant to this schedule;
	 
	 	5.1.2	 	where the payment relates to the loss of a Relief which would have operated as
a deduction from gross income, profits or gains, the later of three Business Days prior
to the last date on which the Company is liable to make the first actual payment of Tax
which could have been avoided by the use or set off of that Relief had it not been lost
and 10 Business Days after the date of service of the Tax Demand on the Sellers by the
Buyer stating that the Sellers have a liability for a quantified amount pursuant to
this schedule;
	 
	 	5.1.3	 	where the payment relates to the use or set off of a Relief or a Buyer’s
Relief, the later of three Business Days prior to the last date on which the Company
would have been liable to make a payment of Tax but for such use or set off and 10
Business Days after service of notice of the Tax Demand on the Sellers by the Buyer
stating that the Sellers have a liability for a quantified amount pursuant to this
schedule; and
	 
	 	5.1.4	 	in any other case, the date falling 10 Business Days after the date of service
of a notice of the Tax Demand on the Sellers by the Buyer stating that the Sellers have
a liability for a quantified amount pursuant to this schedule.

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	6.	 	CONDUCT OF TAX LITIGATION
	 
	6.1	 	If any Tax Demand is received by or comes to the notice of the Buyer or the Company the Buyer
shall, as soon as reasonably practicable (and, in any event within 10 Business Days of the Tax
Demand coming to its attention or, if earlier, at least 10 Business Days prior to the expiry
of any time for appeal), give or procure to be given to the Sellers written notice of the Tax
Demand provided that if the Buyer fails promptly to notify, or procure notification of, the
Sellers and, as a result of such failure, the Buyer or the Company sustains any supplemental
penalty, charge, interest or default surcharge or other loss, damage or liability which it
would not have incurred or sustained but for the Buyer’s failure to give such notice to the
Sellers, the Sellers shall not be liable under this schedule for such supplemental penalty,
charge, interest, fine or default surcharge or other loss, damage or liability.
	 
	6.2	 	If so requested in writing by the Sellers (or either of them), the Sellers shall (at their
cost) be entitled to take over the conduct of all proceedings relating to the Tax Demand in
question and, if necessary, the Buyer shall take, or shall procure that the Company takes,
such action and gives such information and assistance in connection with the affairs of the
Company as the Sellers may reasonably request to dispute, resist, appeal or compromise the Tax
Liability provided that neither the Buyer nor the Company shall be obliged to make a formal
appeal to any tribunal, court, appellate body or judicial authority unless the Sellers obtain
an opinion from Tax Counsel at the Sellers’ cost, that the appeal has a reasonable chance of
success and provided further:

	 	6.2.1	 	the Sellers shall keep the Buyer and the Company informed as to the progress
and consequences of such action; and
	 
	 	6.2.2	 	no material communication (written or otherwise) pertaining to the Tax Demand
shall be sent to the relevant Tax Authority without having first been approved by the
Buyer (such approval not to be unreasonably withheld or delayed).

	6.3	 	The Buyer or the Company shall, without reference to the Sellers, be entitled to admit,
compromise, settle, discharge or otherwise deal with a Tax Demand on such terms as it may, in
its absolute discretion, think fit and without prejudice to any right or remedy under this
schedule or this Agreement:

	 	6.3.1	 	if the Sellers have not made the request referred to in paragraph 7.2 of this
part 4 by the earlier of the following dates:
	 
	 	6.3.2	 	the date being 30 Business Days after the date on which notice of the Tax
Demand, served pursuant to paragraph 7.1 of this part 4, is received by the Sellers;
and

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	 	6.3.3	 	the date being five Business Days prior to the last date on which an appeal
may be made against the Tax Liability to which the Tax Demand relates provided that the
Sellers have had at least 10 Business Days’ notice of the Tax Demand;
	 
	 	6.3.4	 	if written notice is served on the Company or the Buyer by the Sellers to the
effect that it considers the Tax Demand should no longer be resisted; or
	 
	 	6.3.5	 	upon the expiry of any period prescribed by applicable legislation for the
making of an appeal against either the Tax Demand in question or the decision of any
court or tribunal in respect of any such Tax Demand, as the case may be.

	7.	 	FILING OF TAX RETURNS AND THE COMPANY’S TAX AFFAIRS
	 
	7.1	 	The Sellers (or their duly authorised agents) shall prepare at their cost the Company’s
corporation tax returns for accounting periods ended on 31 December 2004 (“2004 Returns”) and
the Buyers (or their duly authorised agents) shall prepare at their cost the Company’s
corporation tax returns for accounting periods commencing on 1 January 2005 (the “2005
Returns”).
	 
	7.2	 	The Sellers and Buyers respectively (or their duly authorised agents), shall prepare and
submit on behalf of the Company all claims, elections, surrenders, disclaimers, notices and
consents for tax purposes, shall deal with all matters and correspondence relating to the 2004
Returns and the 2005 Returns and shall deal with the Tax affairs of the Company generally for
all periods falling prior to Completion in the case of the Sellers and post Completion in the
case of the Buyer.
	 
	7.3	 	The Buyer shall procure that the Company shall provide the Sellers (or their duly authorised
agents) with such assistance as is reasonably necessary for the 2004 Returns to be prepared
and submitted to the appropriate Tax Authority and for the Sellers to have conduct of the
Company’s Tax affairs generally for all accounting periods prior to Completion including the
current accounting period and shall afford the Sellers (or their duly authorised agents) such
access to the Company’s books, accounts and records as they may reasonably require.
	 
	7.4	 	The Buyer shall procure that:

	 	7.4.1	 	the Company shall (where signature by an officer of the Company is required by
law) promptly authorise, sign and return to the Sellers without amendment for
submission to the relevant Taxation Authority such returns and other ancillary
information, accounts, statements and reports relating to an accounting period and make
such claims and elections and give such consents (including, without limitation, such
provisional or final claims to accept the surrender, or to consent to the surrender of,
Group Relief) and

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	 	 	 	comply with all procedural requirements in respect of the making or giving of such
returns, ancillary information, accounts, statements and reports or such claims,
elections or consents as the Sellers (or their advisers) may direct in writing;
	 
	 	7.4.2	 	save where such action is required by law neither the Buyer nor the Company
shall (unless so directed in writing by the Sellers) amend, disregard, withdraw or
disclaim any elections, claims or benefits (including, without limitation, elections or
claims under section 402 of the Taxes Act 1988 (group relief), section 152 or 153 of
the TCGA 1992 (roll-over relief)) or disclaim any initial or writing down allowances or
any other capital allowances made in respect of any accounting period; and
	 
	 	7.4.3	 	if the Sellers request the Company to make a payment on account of Tax to any
Taxation Authority in respect of any accounting periods prior to Completion including
the current accounting period and provided that the Sellers have paid an equivalent
amount to the Buyer, the Company shall make the payment to the relevant Taxation
Authority within two Business Days of the Buyer receiving the payment from the relevant
Seller. If the Sellers make a payment to the Buyer pursuant to this paragraph such
payment shall, to the extent of the payment, be taken into account in assessing any
liability of the relevant Seller to the Buyer pursuant to a Tax Claim in relation to
that matter.

	7.5	 	The Sellers shall procure that the Company shall provide the Buyers (or their duly authorised
agents) with such assistance as is reasonably necessary for the 2005 Returns to be prepared
and submitted to the appropriate Tax Authority and shall afford the Buyers (or their duly
authorised agents) such access to the Company’s books, accounts and records as they may
reasonably require. The Buyers shall submit the 2005 Returns to the Sellers for their
comments. The Buyer’s shall take into account the Sellers reasonable comments in the 2005
Returns.
	 
	7.6	 	Unless otherwise agreed by the parties, the Sellers and the Buyers respectively shall procure
that the conduct of matters for which they are responsible under this paragraph 7 shall be
undertaken in a timely manner so as to ensure that, where a Tax Authority raises any enquiry
into any Tax Return that enquiry is settled with the Tax Authority as soon as is really
practicable.
	 
	7.7	 	The Buyer shall be under no obligation to procure the authorisation or signing or submission
to any Tax Authority of any tax document delivered to it under paragraph 7 which it considers
in its reasonable opinion to be false or misleading in a material respect, but for the
avoidance of doubt shall be under no obligation to make any enquiry as to the completeness or
accuracy thereof and shall be entitled to rely entirely on the Sellers and their agents.

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	8.	 	EXCLUSIONS AND LIMITATIONS
	 
	8.1	 	The Sellers’ liability in relation to any Tax Claim (other than a claim pursuant to
paragraphs 1.2,1.3, 1.4, 1.5 and 1.6 of Part 3 of Schedule 3 to this Agreement) shall be
limited as described (mutatis mutandis) in paragraph 1(Financial Limits) of schedule 4
(Limitations on Sellers’ Liability).
	 
	8.2	 	The Sellers’ liability in relation to any Tax Claim pursuant to paragraphs 1.2,1.3,1.4, 1.5
and 1.6 Part 3 of Schedule 3 to this Agreement shall be limited as described (mutatis
mutandis) in paragraph 1.1,1.3 and 1.4 (Financial Limits) of schedule 4 (Limitations on
Sellers’ Liability).
	 
	8.3	 	The Sellers shall not be liable in respect of any Tax Claim unless written notice of such
claim is given to the Sellers prior to the expiry of the period of 10 Business Days following
the sixth anniversary of the end of the accounting period current at Completion.
	 
	8.4	 	The Sellers shall not be liable in respect of any claim for breach of any of the Tax
Warranties to the extent that the matter otherwise giving rise to the Tax Claim for breach of
any of the Tax Warranties is disclosed in the Disclosure Letter in sufficient detail to enable
the Buyer to have a reasonable understanding of the nature and scope of the matter disclosed.
	 
	8.5	 	The Sellers shall not be liable in respect of any Tax Claim in respect of any Tax Liability
to the extent that:

	 	8.5.1	 	provision or reserve for such Tax Liability is made in the Accounts; or
	 
	 	8.5.2	 	it has been discharged or made good without cost or loss to the Buyer; or
	 
	 	8.5.3	 	it arises or is increased as a result of any increase in the rates of Tax
announced after the date of this Agreement; or
	 
	 	8.5.4	 	it arises or is increased as a result of any imposition of new Tax or the
introduction of or change in any legislation or applicable law or the change in the
published practice of, or concessions made by, any Tax Authority announced or published
after the date of this Agreement; or
	 
	 	8.5.5	 	it would not have arisen but for a transaction entered into or other voluntary
act on the part of the Company or the Buyer after Completion which is not in the
ordinary course of the Company’s business, as carried on at the date of this Agreement,
is not required

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	 	 	 	by law and is not pursuant to a legally binding obligation entered into before the
date of this Agreement; or
	 
	 	8.5.6	 	such liability arises or is increased by virtue of the failure or omission by
the Company to make any claim, election, surrender or disclaimer or give any notice or
consent to any other matter or do any other thing after Completion (otherwise than at
the request of the Sellers), the making, giving or doing of which was taken into
account in computing any provision or reserve for Tax in the Accounts; or
	 
	 	8.5.7	 	such Tax Liability would not have arisen but for some Event occurring at the
written request, or with the prior written approval, of the Buyer or its
representatives; or
	 
	 	8.5.8	 	recovery has already been made in respect of the Tax Liability by the Buyer
under the Tax Warranties, the Tax Covenant or any other provision of this Agreement; or
	 
	 	8.5.9	 	it arises as a result of any change after Completion of the bases, methods or
policies of accounting of the Company (including a change in accounting reference date
or the period in respect of which accounts are made up other than for the Sellers) save
where such change is required by law or to comply with generally accepted accounting
standards or policies or is contemplated by this Agreement; or
	 
	 	8.5.10	 	it constitutes interest, penalties or a fine arising from a failure to pay Tax to a
Tax Authority within a reasonable time after the Sellers have made a payment of an
amount to the Buyer in respect of that liability to Tax pursuant to a Tax Claim; or
	 
	 	8.5.11	 	it constitutes interest, penalties or a fine arising from a failure to pay Tax to a
Tax Authority with respect to a period during which the Buyer failed to notify the
Sellers of a Tax Demand of which it was, or ought reasonably to have been, aware; or
	 
	 	8.5.12	 	it arises or is increased as a consequence of any claim, election, surrender or
disclaimer made or notice or consent given after Completion by the Buyer, the Company
or any member of the Buyer’s Group under the provisions of any enactment or regulation
relating to Tax other than any claim, election, surrender, disclaimer, notice or
consent assumed to have been made, given or done in computing the amount of any
allowance, provision or reserve in the Accounts.

	9.	 	WITHHOLDING AND TAX ON PAYMENTS

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	9.1	 	All sums payable under this part of this Schedule shall be paid free and clear of all
deductions unless the deduction or withholding is required by law, in which event (and other
than in respect of interest) the payer shall pay such additional amount as shall be required
to ensure that the net amount received under this Schedule will equal the full amount which
would have been received had no such deduction or withholding been required to be made.
	 
	9.2	 	If any Tax Authority brings into charge to tax any sum paid under this Schedule (other than
in respect of interest), then the payer shall pay such additional amount as shall be required
to ensure that the total amount paid, less the tax chargeable on such amount, is equal to the
amount that would otherwise be payable under this Schedule.
	 
	9.3	 	To the extent that any deduction, withholding or tax in respect of which an additional amount
has been paid under paragraph 9.1 or 9.2 results in the payee obtaining relief (all reasonable
endeavours having been used to obtain such relief), the payee shall pay to the payer, within
ten Business Days of obtaining the benefit of the relief, an amount equal to the lesser of the
value of the relief obtained and the additional sum paid under paragraph 9.1 or 9.2

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SCHEDULE 4

Limitations on Sellers’ Liability

In this schedule, references to a Warranty Claim or to a Tax Claim respectively include references
to a claim for breach of a Repeated Warranty (other than a Tax Warranty), and a claim for a breach
of the Repeated Warranties to the extent comprising Tax Warranties, and references to a Warranty
Claim also include a claim by the Buyer to be indemnified under
clause 4.4, save that paragraphs 1.1, 1.2, 2, 3.2 and 4.1 of this schedule shall not apply to any claim
to be indemnified under clause 4.4.

	1.	 	FINANCIAL LIMITS
	 
	1.1	 	The Sellers shall not be liable in respect of any Warranty Claim or any Tax Claim unless they
have an aggregate liability in respect of that Warranty Claim or, as the case may be, Tax
Claim in excess of £15,000.
	 
	1.2	 	The Sellers shall not be liable in respect of any Warranty Claim or any Tax Claim other than
a Tax Claim pursuant to paragraphs 1.2, 1.3, 1.4, 1.5 and 1.6 of part 3 of schedule 3 unless
the Sellers have an aggregate liability in respect of all Warranty Claims and Tax Claims
(excluding all Warranty Claims and Tax Claims for which the Sellers have no liability by
reason of paragraph 1.1) and all Warranty Claims under the Business Sale Agreement in excess
of £500,000, and in such circumstances they will be liable for the entire amount of such
claims.
	 
	1.3	 	For the purposes of this paragraph 1, a Warranty Claim or a Tax Claim which is based on more
than one event or circumstance, each of which would separately give rise to a Warranty Claim
or Tax Claim, shall be treated as a separate Warranty Claim or Tax Claim, as the case may be,
in respect of each event or circumstance.
	 
	1.4	 	The maximum aggregate liability of the Sellers in respect of all claims by the Buyer to be
indemnified under clause 4.4 all Warranty Claims and Tax Claims and all claims by TRM (ATM)
Limited to be indemnified under clause 5.3 of the Business Sale Agreement and all Warranty
Claims under the Business Sale Agreement shall not exceed the aggregate of:

	 	1.4.1	 	£43,373,000; and
	 
	 	1.4.2	 	plus any sum payable by the Buyer and minus any sum payable to the Buyer in
accordance with clauses 6.2 and 6.5 of this Agreement; and
	 
	 	1.4.3	 	minus any reduction in the purchase price pursuant to clause 10.8; and

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	 	1.4.4	 	minus any sum payable to the Buyer in accordance with clause 10.9; and
	 
	 	1.4.5	 	plus any sum payable by TRM (ATM) Limited and minus any sum payable to TRM
(ATM) Limited in accordance with clause 6.4 of the Business Sale Agreement; and
	 
	 	1.4.6	 	less any amount paid to TRM (ATM) Limited under clause 11.8.2.1 of the
Business Sale Agreement; and
	 
	 	1.4.7	 	plus any increase in the purchase price pursuant to clause 10.8 and 10.9.

	2.	 	NOTICES
	 
	 	 	If the Buyer becomes aware of any matter which gives rise to a Warranty Claim, the Buyer
shall give written notice to the Sellers as soon as reasonably practicable specifying the
matter in reasonable detail, the Warranties which have or which are likely to have been
breached and so far as is reasonably practicable, its best estimate of the amount of the
Warranty Claim or likely Warranty Claim.
	 
	3.	 	TIME LIMITS
	 
	3.1	 	The Sellers shall not be liable in respect of any Warranty Claim unless notice of that
Warranty Claim, given in accordance with paragraph 2, is received by them on or before the
date falling eighteen months after of the Completion Date.
	 
	3.2	 	The Sellers shall not be liable in respect of a particular Warranty Claim if, on or before
the date falling 15 Business Days after the date on which notice of that Warranty Claim is
received by the Sellers, the Sellers have remedied the relevant breach or prevented the Buyer
from suffering any loss in respect of the subject matter of that Warranty Claim or caused any
loss so suffered by the Buyer to be made good. The Buyer shall comply with all reasonable
requests made by the Sellers during that period for the purposes of so remedying any such
breach or preventing any such loss.
	 
	3.3	 	The Sellers shall not be liable in respect of a particular Warranty Claim (if not previously
satisfied, settled or withdrawn) unless legal proceedings have been validly issued and served
on the Sellers on or before the date falling 120 Business Days after the date on which notice
of that Warranty Claim was served under paragraph 2.

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	4.	 	EXCLUSION OF LIABILITY: GENERAL
	 
	4.1	 	The Sellers shall not be liable in respect of any Warranty Claim to the extent that the
matter giving rise to the Warranty Claim was disclosed in the Disclosure Letter in sufficient
detail to enable the Buyer to have a reasonable understanding of the nature and scope of the
matter disclosed.
	 
	4.2	 	The Sellers shall not be liable in respect of a Warranty Claim or the quantum of a Warranty
Claim shall be reduced to the extent that the Accounts include specific provision, accrual or
other liability, reserve or allowance for any matter relating to the subject of the Warranty
Claim.
	 
	4.3	 	The Sellers shall not be liable in respect of a Warranty Claim to the extent that the matter
giving rise to the Warranty Claim results from:

	 	4.3.1	 	any act or omission before Completion carried out or omitted at the express
request of the Buyer or any other member of the Buyer’s Group; or
	 
	 	4.3.2	 	any act or omission on or after Completion carried out or omitted by or on
behalf of the Buyer or any member of the Buyer’s Group which the Buyer knows or ought
reasonably to have known would give rise to a Warranty Claim; or
	 
	 	4.3.3	 	any breach by the Buyer of its obligations under this Agreement; or
	 
	 	4.3.4	 	any change after Completion in the accounting policies or practices used in
preparing the Accounts or in the accounting reference date of the Company; or
	 
	 	4.3.5	 	any reorganisation of the Buyer’s Group after Completion; or
	 
	 	4.3.6	 	any act, event, occurrence or omission after the date of this Agreement
compelled by law, or from the enactment, amendment or change in the interpretation
after that date, of any statute, regulation or practice of any governmental, regulatory
or other body, including a Tax Authority, whether or not having retrospective effect,
or any change after the date of this Agreement in the rates of Taxation.

	4.4	 	The Sellers shall not be liable in respect of any Warranty Claim to the extent that the
matter giving rise to the Warranty Claim constitutes a contingent liability of the Company or
relates to a liability which is not capable of being quantified until such liability becomes
an actual liability of the Company or becomes capable of being quantified and the time limits
in paragraph 3.3 shall not apply provided the claim is notified to the Sellers within the
period specified in paragraph 3.1.

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	 	 	This paragraph shall not relieve the Buyer from any
obligation to give notice under paragraph 2 in respect of any matter which constitutes a
contingent liability on the Buyer or relates to a liability which is not capable of being
quantified.
	 
	4.5	 	Nothing in this schedule 4 applies to liability for any Warranty Claim that arises or is
delayed as a result of dishonesty, fraud, wilful misconduct or wilful concealment by either
Seller or any member of either Sellers’ Group or employee, former employee, officer, agent or
adviser of either Seller or any member of either Sellers’ Group.
	 
	5.	 	RECOVERY FROM THIRD PARTIES
	 
	5.1	 	If the Buyer or the Company becomes aware of any matter which would or might give rise to a
Warranty Claim (taking no account of paragraph 1.2 for these purposes) and the Buyer or the
Company has or subsequently acquires a right to make recovery or claim indemnity from any
third party (including under any policy of insurance) in relation to that matter, then the
Buyer shall as soon as reasonably practicable notify the Sellers of the right, and shall
comply with the provisions of paragraphs 5.3 to 5.6.
	 
	5.2	 	If any sum is paid by or on behalf of the Sellers in satisfaction of a Warranty Claim, and
the Buyer or the Company has or subsequently acquires a right to make recovery or claim
indemnity from any third party (including under any policy of insurance) in respect of the
matter giving rise to that Warranty Claim, the Buyer shall as soon as reasonably practicable
notify the Sellers of the right and the provisions of paragraphs 5.3 to 5.6 shall apply.
	 
	5.3	 	The Buyer shall at the Sellers’ written request and cost (and each of the Sellers hereby
agrees to indemnify the Buyer and any member of its Group against all costs incurred by the
Buyer or any member of its Group resulting from the Buyer complying with its obligations under
this paragraph, including any directly attributable increase in the premium payable on the
renewal of any insurance policy) take such action and initiate such proceedings, and give such
information and assistance, as the Sellers may from time to time reasonably request to
dispute, resist, appeal, compromise, defend, remedy or mitigate the matter or enforce against
any person (other than the Sellers) the rights of the Buyer or the Sellers in relation to the
matter in question (save that a request from the Sellers shall be deemed to be unreasonable
where there is a demonstrable risk that the action requested would materially and adversely
affect the Company).
	 
	5.4	 	Whether or not the Sellers make any request under paragraph 5.3, the Buyer shall:

	 	5.4.1	 	consult with the Sellers as soon as reasonably practicable with regard to any
actual or proposed developments relating to the matter in question and provide the
Sellers with

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	 	 	 	copies of all correspondence and documents they shall reasonably request
in relation to that matter; and
	 
	 	5.4.2	 	not admit liability in respect of or settle or compromise the matter in
question without the prior written consent of the Sellers such consent not to be
unreasonably withheld or delayed save where obtaining that consent would materially and
adversely affect the Company.

	5.5	 	To the extent that the Buyer or the Company receives any sum or other benefit by reason of
the enforcement of any rights such as are referred to in paragraphs 5.1 or 5.2, then either
the Sellers’ liability in relation to such Warranty Claim shall be reduced by the Amount
Recovered, or if any sum has already been paid by or on behalf of the Sellers in satisfaction
of a Warranty Claim, then the Buyer shall pay the Amount Recovered to the Sellers on or before
the date falling five Business Days after the date on which that receipt or saving is made.
For the purposes of paragraph 1.2 of this schedule, the Sellers shall be deemed never to have
been liable to the Buyer in respect of the Amount Recovered.
	 
	5.6	 	For the purposes of paragraph 5.5 of this schedule, the “Amount Recovered” shall be equal to
so much of the sum or benefit received (including by way of interest or repayment supplement)
by reason of the enforcement of any rights such as are referred to in paragraphs 5.1 or 5.2 as
does not exceed the amount claimed by the Buyer in relation to such Warranty Claim or (as the
case may be) the payment by or on behalf of the Sellers in satisfaction of the relevant
Warranty Claim, less any Taxation payable by the Buyer or the Company in respect of that
receipt and less all reasonable costs and expenses of the Buyer and the Company in recovering
that receipt or saving.
	 
	6.	 	CONDUCT OF THIRD PARTY CLAIMS
	 
	6.1	 	In the event that any negotiations with third parties or litigation in connection with any
claim, action or demand by a third party which gives rise to an obligation on the Buyer to
give notice under paragraph 2 the provisions of paragraphs 6.2 and 6.4 shall apply.
	 
	6.2	 	The Buyer shall at the Sellers’ written request and cost (and each of the Sellers hereby
agrees to indemnify the Buyer and any member of its Group against all costs incurred by the
Buyer or any member of its Group resulting from the Buyer complying with its obligations under
this paragraph, including any directly attributable increase in the premium payable on the
renewal of any insurance policy) take such action and initiate such proceedings, and give such
information and assistance, as the Sellers may from time to time reasonably request to
dispute, resist, appeal,

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	 	 	compromise, defend, remedy or mitigate the matter in question or
enforce against any person (other than the Sellers) the rights of the Buyer or the Sellers in
relation to the matter in question (save that a request from the Sellers shall be deemed to be
unreasonable where there is a demonstrable risk that the action requested would materially and
adversely affect the Company).
	 
	6.3	 	Whether or not the Sellers make any request under paragraph 6.1 the Buyer shall:

	 	6.3.1	 	consult with the Sellers as soon as reasonably practicable with regard to any
actual or proposed developments relating to the matter in question and provide the
Sellers with copies of all correspondence and documents in relation to that matter
which the Sellers shall reasonably require; and
	 
	 	6.3.2	 	not admit liability in respect of or settle or compromise the matter in
question without the prior written consent of the Sellers such consent not to be
unreasonably withheld or delayed, save where obtaining such consent would materially
and adversely affect the Company.

	6.4	 	If there is any dispute between the Sellers and the Buyer as to whether liability in respect
of any third party claim should be admitted or whether any claim related to a right of
recovery from a third party (under paragraph 5) or a third party claim that claim should be
settled or compromised, liability shall not be admitted, and that claim shall not be settled
or comprised, other than in accordance with the provisions of this paragraph. Any such
dispute shall be referred to leading counsel agreed between the Sellers and the Buyer or, in
default of agreement on or before the date falling five Business Days after the date on which
an individual is first proposed for the purpose by either the Sellers or the Buyer, by the
President for the time being of the Law Society of England and Wales on the application of
either the Sellers or the Buyer. Any individual to whom a dispute is so referred shall be
instructed in writing to give a written opinion, as soon as is reasonably practicable, as to
which of the courses of conduct proposed by the Buyer and by the Sellers is most likely to
result in the third party claim being agreed, settled or compromised at the least cost to the
Sellers, unless that course of action has a demonstrable risk of having a material and adverse
effect on the Company and the other course of action proposed does not in which case the
individual to whom the dispute has been referred shall give his opinion as to which course of
action has the least risk of a material and adverse effect on the Company. The decision of
counsel (who shall act as expert and not as arbitrator) shall be final and binding on the
Buyer and the Sellers for all purposes. Counsel’s fees and expenses shall be borne by the
Sellers and the Buyer as counsel may determine in his sole discretion or, if no such
determination is made by the Sellers and the Buyer in equal shares. The parties shall then
implement counsel’s decision as soon as is reasonably practicable.

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	6.5	 	References in this paragraph 6 to any claim, action or demand against the Buyer or the
Company include the assertion of any right to the same, including a right of termination.
	 
	7.	 	REMEDIES
	 
	7.1	 	The Buyer irrevocably and unconditionally waives any right it may have to rescind this
Agreement for any misrepresentation, whether or not contained in this Agreement, and whether
or not relating to any tax matter, or to terminate this Agreement for any other reason save in
accordance with clause 3.4 or clause 9.5.
	 
	7.2	 	The Buyer irrevocably and unconditionally waives any right it may have to sue either of the
Sellers or any of either Seller’s advisers for misrepresentation, whether in equity, tort or
under the Misrepresentation Act 1967, in respect of any misrepresentation, whether or not
contained in this Agreement. The Buyer’s sole remedy in respect of any such misrepresentation
shall be an action for breach of contract under the terms of this Agreement if and to the
extent that the misrepresentation in question constitutes a breach of the Warranties
(including the Tax Warranties).
	 
	7.3	 	Without limiting clause 11.7 of this Agreement, nothing in this
paragraph 7 shall limit the Sellers’ liability for fraudulent misrepresentation or the
remedies available to the Buyer for fraudulent misrepresentation.
	 
	8.	 	GENERAL
	 
	8.1	 	The Buyer shall not be entitled to recover any loss or amount more than once under this
Agreement. For the avoidance of doubt, if an amount is paid into the Escrow Account in
accordance with clause 4.5, the Buyer shall have no further
right to bring a Warranty Claim in respect of the same breach of a Repeated Warranty.
	 
	8.2	 	Without limiting any obligations it may have at law or in equity, the Buyer shall mitigate,
and shall cause the Company to mitigate, any loss in respect of which a Warranty Claim or
Claim for any breach of any Tax Warranty or a claim to be indemnified
under clause  4.4 arises.
	 
	8.3	 	The Buyer acknowledges that the Buyer’s Solicitors have explained to it the effect of
paragraphs 7.1 and 7.2 and clause 25 (entire agreement) and
accepts that those paragraphs and clause 25 are reasonable in
all the circumstances.

96

 

SCHEDULE 5

Conduct of Business Pending Completion

Between the date of this Agreement and the Completion Date (or any earlier date on which the
parties cease to have any further rights or obligations under this
Agreement under clause 3.4 or 9.8) the Sellers shall ensure or (in
the case of the matters in paragraphs 1.1, 1.2 and 1.4) shall use all reasonable endeavours to
ensure that the Company shall:

	1.	 	Operation of the Business
	 
	1.1	 	conduct it’s business in all material respects in the usual way and as a going concern;

	 
	1.2	 	
conduct its business in accordance with all applicable material legal requirements;

	 
	1.3	 	

not, without the prior written consent of the Buyer, pass any shareholders’ resolution;
	 
	1.4	 	co-operate with the Buyer to assist the Buyer in preparing for the efficient continuation of
the management of the Company after Completion;
	 
	2.	 	Shares
	 
	2.1	 	not, without the prior written consent of the Buyer, create, allot, issue, acquire, or redeem
any Shares or loan capital or agree, arrange or undertake to do any of those things or acquire
or agree to acquire, any interest in a body corporate;
	 
	2.2	 	not, without the prior written consent of the Buyer, declare, pay or make a dividend or
distribution;
	 
	3.	 	Tax
	 
	 	 	not, without the prior written consent of the Buyer, make a claim under section 152 or 153
of TCGA which affects an asset owned by the Company;
	 
	4.	 	Assets
	 
	4.1	 	not, without the prior written consent of the Buyer, acquire or dispose of or agree to
acquire or dispose of any material asset of the Company having a value in excess of £15,000
except in the usual course of its business and for the avoidance of doubt the acquisition or
disposal of an ATM shall be in the ordinary course of business;

97

 

	4.2	 	not, without the prior written consent of the Buyer, create or agree to create any
Encumbrance over an asset or redeem, or agree to redeem an existing Encumbrance over an asset;
	 
	5.	 	Insurance
	 
	5.1	 	maintain its insurance policies in the ordinary course of business;
	 
	5.2	 	not, without the prior written consent of the Buyer, do or fail to do anything that would be
likely to make any insurance policy of the Company void or voidable or result in any material
increase in the premium payable under such policy or prejudice the Company’s ability to obtain
insurance in the future;
	 
	6.	 	Agreements
	 
	 	 	Not without the prior written consent of the Buyer:
	 
	6.1	 	terminate, or give notice to terminate, a Site Agreement, lease, tenancy or licence;
	 
	6.2	 	apply for consent to do something requiring consent under an existing Site Agreement, lease,
tenancy or licence;
	 
	6.3	 	grant or refuse an application by a tenant, licensee or occupier to do something requiring
its consent under a lease, tenancy or licence;
	 
	6.4	 	agree a new rent or fee payable under a Site Agreement, lease, tenancy or licence;
	 
	6.5	 	enter into a material long term, onerous or unusual agreement or arrangement;
	 
	6.6	 	enter into, amend in any material way, or terminate, a contract which would be a Material
Contract (as defined in paragraph 1.2 of part 4 of schedule 2)
other than in the ordinary course of business;
	 
	7.	 	Employees
	 
	7.1	 	not, without the prior written consent of the Buyer, amend in any material way, the terms of
employment or engagement of any director or other officer or employee of the Company;
	 
	7.2	 	not, without the prior written consent of the Buyer, provide or agree to provide a gratuitous
benefit to any director, officer or employee of the Company (or any of their dependants);

98

 

	7.3	 	not, without the prior written consent of the Buyer, employ or engage any person as an
employee of the Company or give notice to terminate (other than in circumstances justifying
summary dismissal) the employment of any employee;
	 
	8.	 	Pensions
	 
	 	 	not, without the prior written consent of the Buyer, amend, in any material way, or
discontinue (in whole or in part) a Disclosed Scheme or communicate to any employee of the
Company a plan, proposal or intention to amend (in any material way) or discontinue (in
whole or in part) or exercise a discretion in relation to, a Disclosed Scheme;
	 
	9.	 	Liabilities
	 
	9.1	 	not, without the prior written consent of the Buyer, make, or agree to make, capital
expenditure exceeding £25,000 in total or incur, or agree to incur, a commitment or
commitments involving capital expenditure exceeding £25,000 in total other than in the
ordinary course of business (and for the avoidance of doubt capital expenditure related to the
installation of ATMs shall be regarded as in the ordinary course of business);
	 
	9.2	 	not, without the prior written consent of the Buyer, amend (in any material way) or agree to
amend (in any material way) the terms of its borrowing, or create or incur or agree to create
or incur any borrowing (except with members of either of the Seller’s Groups or pursuant to
facilities disclosed in the Disclosure Letter where the borrowing does not exceed the amount
available to be drawn by it under those facilities);
	 
	9.3	 	not without the prior written consent of the Buyer, give or agree to give a guarantee,
indemnity or other agreement to secure or incur financial or other obligations with respect
to, another person’s obligations;
	 
	9.4	 	not without the prior written consent of the Buyer create or permit the creation of
encumbrances over the assets of the Company;

99

 

	10.	 	Litigation
	 
	10.1	 	not, without the prior written consent of the Buyer, initiate litigation or arbitration
proceedings other than proceedings for the recovery of debts not exceeding £15,000 in respect
of any individual claim and other than any action required to defend any claim, action, demand
or dispute (including without limitation initiating a counterclaim);
	 
	10.2	 	not, without the prior written consent of the Buyer, and except in the usual course of
business, compromise, settle, release, discharge or compound litigation or arbitration
proceedings or a liability, claim, action, demand or dispute where the amount claimed or in
dispute exceeds £15,000 or waive a right in relation to litigation or arbitration proceedings
where the amount claimed or in dispute exceeds £15,000, save that where such consent is
required for any such action in respect of the claims referred to in the Disclosure Letter at
sections 1 and 2 of the disclosure made against paragraph 4.3 of part 3 of schedule 2 such
consent shall not be unreasonably withheld or delayed, and for these purposes, the Buyer shall
only be classed as reasonably withholding consent if such action is reasonable from the
perspective of the Company, and not, for the avoidance of doubt, the Buyer.
	 
	11.	 	Insider Agreements
	 
	 	 	not, without the prior written consent of the Buyer, enter into an agreement or arrangement
in which either of the Sellers or any member of either of the Sellers’ Groups, or a director
or former director of the Company or either of the Sellers, or a member of either of the
Sellers’ Groups is interested;

save that in no circumstances shall either of the Sellers be liable for any action taken or not
taken as a result of or pursuant to the terms of this Agreement and/or the Asset Purchase Agreement
which results in a breach of the provisions of this schedule 5.

SCHEDULE
6

Confidential
Treatment

SCHEDULE
7

Confidential
Treatment

SCHEDULE
8

Confidential
Treatment

SCHEDULE
9

Confidential
Treatment

100

 

	 	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 
	duly authorised on behalf of

	 	 	)	CLIVE KAHN	 	 
	TRAVELEX UK LIMITED

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 
	duly authorised on behalf of

	 	 	)	ALAN GOLDMAN	 	 
	SNAX 24 CORPORATION

	 	 	)	 	 	 
	LIMITED

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 
	duly authorised on behalf of

	 	 	)	THOMAS MANN	 	 
	TRM SERVICES LIMITED

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	EXECUTED as a DEED by

	 	 	)	 	 	 
	TRM CORPORATION

	 	 	)	 	 	 
	acting by

	 	 	)	THOMAS MANN	 	 
	 

	 	 	)	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Director	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	ASHLEY DEAN	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Director/Secretary	 	 

101

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