Document:

Agreement for Sale & Purchase of Direct Supply & Export, Dated           2005

 Exhibit 4.41 
  
 DATED March 30, 2005 
  
 BETWEEN 
  
 BRITISH ENERGY GENERATION LIMITED 
  
 BRITISH ENERGY POWER AND ENERGY TRADING LIMITED 
  
 AND 
  
 BRITISH ENERGY DIRECT
LIMITED 
  

  
 AGREEMENT 
  
 FOR THE SALE AND PURCHASE 
  

OF THE 
  
 DIRECT SUPPLY AND EXPORT CONSOLIDATION BUSINESS

  

  
 

 

 CONTENTS 
  

					
	 Clause

	 	 	  	Page

	 1.     INTERPRETATION
	  	4
			
	 1.1
	 	DEFINITIONS	  	4
	 1.2
	 	CONSTRUCTION OF CERTAIN REFERENCES	  	7
	 1.3
	 	HEADINGS	  	7
	 1.4
	 	SCHEDULES	  	7
		
	 2.     SALE OF BUSINESS ASSETS
	  	7
			
	 2.1
	 	SALE AND PURCHASE	  	7
	 2.2
	 	EXCLUSIONS	  	8
	 2.3
	 	RISK AND INSURANCE	  	8
	 2.4
	 	NO SALE OR PART ONLY	  	8
		
	 3.     CONSIDERATION
	  	8
			
	 3.1
	 	AMOUNT	  	8
	 3.2
	 	ADJUSTMENT	  	9
	 3.3
	 	METHOD AND TIMING FOR PAYMENT OF CONSIDERATION	  	9
		
	 4.     CONDITIONS
	  	9
		
	 5.     COMPLETION
	  	9
			
	 5.1
	 	DATE AND PLACE OF COMPLETION	  	9
	 5.2
	 	VENDORS’ OBLIGATIONS	  	9
	 5.3
	 	PURCHASER’S OBLIGATIONS	  	9
	 5.4
	 	FAILURE TO COMPLETE	  	10
		
	 6.     CONSENTS, CONTRACTS AND ASSUMED LIABILITIES
	  	10
			
	 6.1
	 	PENDING THIRD PARTY CONSENTS	  	10
	 6.2
	 	TREATMENT OF CONTRACTS	  	10
	 6.3
	 	ASSUMED LIABILITIES	  	10
		
	 7.     MUTUAL COVENANTS
	  	11
			
	 7.1
	 	VENDOR’S COVENANTS	  	11
	 7.2
	 	PURCHASER’S COVENANTS	  	11
	 7.3
	 	TAXATION, ROYALTIES AND ENVIRONMENTAL LEVYS, CHARGES AND
PENALTIES	  	11
		
	 8.     POST COMPLETION OBLIGATIONS
	  	11
			
	 8.1
	 	POST COMPLETION OBLIGATIONS	  	11
		
	 9.     WARRANTIES AND RETENTION
	  	11
			
	 9.1
	 	GENERAL	  	11
	 9.2
	 	PURCHASER’S KNOWLEDGE	  	12
	 9.3
	 	WARRANTIES INDEPENDENT	  	12
	 9.4
	 	DAMAGES	  	12
	 9.5
	 	PENDING COMPLETION	  	12
	 9.6
	 	FURTHER DISCLOSURE BY VENDOR	  	12
	 9.7
	 	RESCISSION	  	12
		
	 10.     EMPLOYEES OF THE BUSINESS
	  	13
			
	 10.1
	 	CONTRACTS OF EMPLOYMENT	  	13
	 10.2
	 	INFORMING EMPLOYEES	  	13
	 10.3
	 	VENDOR INDEMNITY	  	13
	 10.4
	 	CONDUCT OF CLAIMS	  	13
	 10.5
	 	CONFIDENTIALITY AND OTHER RESTRICTIONS	  	13

  

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	 11.     VALUE ADDED TAX
	  	13
			
	 11.1
	 	TRANSFER AS GOING CONCERN	  	13
	 11.2
	 	PAYMENT OF VAT	  	14
	 11.3
	 	PRE AND POST COMPLETION SUPPLIES	  	14
		
	 12.     PROVISIONS RELATING TO THIS AGREEMENT
	  	14
			
	 12.1
	 	ASSIGNMENT	  	14
	 12.2
	 	WHOLE AGREEMENT	  	14
	 12.3
	 	AGREEMENT SURVIVES COMPLETION	  	15
	 12.4
	 	RIGHTS ETC CUMULATIVE AND OTHER MATTERS	  	15
	 12.5
	 	RELEASE OF ONE VENDOR	  	15
	 12.6
	 	FURTHER ASSURANCE	  	15
	 12.7
	 	INVALIDITY	  	15
	 12.8
	 	COUNTERPARTS	  	15
	 12.9
	 	COSTS	  	15
	 12.10
	 	NOTICES	  	15
		
	 13.     LAW AND JURISDICTION
	  	16
			
	 13.1
	 	ENGLISH LAW	  	16
	 13.2
	 	JURISDICTION	  	16
	 13.3
	 	PROCESS AGENT	  	16

  

			
	 SCHEDULES
	  	 
		
	 THE CURRENT ASSETS
	  	17
		
	 ADJUSTMENT OF CONSIDERATION
	  	18
		
	 WARRANTIES AND REPRESENTATIONS
	  	19

  

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 THIS AGREEMENT dated 30 day of March 2005 and made 
  
 BETWEEN 
  
 BRITISH ENERGY GENERATION LIMITED a company registered in England under number 03076445 whose registered office is at Barnett Way, Barnwood, Gloucester GL4 3RS (the
“Vendor”); 
  
 BRITISH ENERGY POWER AND ENERGY TRADING LIMITED a
company registered in Scotland under number SC200887 whose registered office is at Systems House, Alba Campus, Livingston EH54 7EG (the “Second Vendor”); 
  
 BRITISH ENERGY DIRECT LIMITED a company registered in England under number 04935015 whose registered office is at Barnett Way, Barnwood,
Gloucester GL4 3RS (the “Purchaser”). 
  
 WHEREAS:

  
 Each of the Vendor and the Second Vendor wishes to sell (or procure the
sale) and the Purchaser wishes to acquire the goodwill and other associated assets of the business of British Energy Generation Limited carried on by the Vendor under the name British Energy Direct Supply and to assume certain obligations relating
to such business in each case on and subject to the terms of this Agreement. 
  
 NOW IT IS HEREBY AGREED as follows: 
  

	1.	Interpretation 

  

	1.1	Definitions 

  
 In this Agreement, where the context admits: 
  

	1.1.1 	“Affiliate” means, in respect of any body corporate, a body corporate which is its subsidiary or holding company, or a body corporate which is a subsidiary of that holding
company, and each such body corporate; 

  

	1.1.2 	“Assumed Liabilities” means those liabilities of the Vendor in relation to the Business at the Transfer Time included in the Management Accounts and to the extent that the
same are provided for or otherwise taken into account in the Completion Accounts; 

  

	1.1.3 	“Balance Sheet Date” means 28 February 2005; 

  

	1.1.4 	“Book Debts” means all debts and other amounts owing and due to the Vendor in respect of goods and services supplied in the Business as at the Transfer Time as shown in
the Completion Accounts; 

  

	1.1.5 	“Business” means the entire electricity supply business carried on by the Vendor under the name British Energy Direct Supply and the entire electricity export and
consolidation business carried on by the Vendor; 

  

	1.1.6 	“Business Assets” means the assets of the Business to be sold and purchased as specified in sub-clause 2.1 (Sale and Purchase); 

  

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

  

	1.1.8 	“Completion” means completion of the sale and purchase of the Business in accordance with Clause 5 (Completion); 

  

	1.1.9 	“Completion Accounts” has the meaning given in Schedule 2; 

  

	1.1.10 	 “Contracts” means those contracts and contractual arrangements of the Vendor in relation to the 

  

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Business details of which are set out in the Disclosure Letter and including the Systems Contracts and Listed Intellectual Property Agreements;

  

	1.1.11 	“Creditors” means the aggregate amounts owing by the Vendor to the trade creditors of the Vendor in the ordinary course of the Business as at the Transfer Time to the
extent of which provision or reserve (but not note only) is made in the Completion Accounts; 

  

	1.1.12 	“Current Assets” means the Prepayments and the assets of the kinds described in Schedule 1 but excluding the Excluded Assets, such assets being owned by the Vendor or the
Second Vendor and used by the Vendor in the Business as at the Transfer Time; 

  

	1.1.13 	“Disclosure Letter” means the letter dated the date hereof written and delivered by or on behalf of the Vendor the Purchaser in agreed terms; 

  

	1.1.14 	“DSSS Software Licence” means the licence agreement setting out the rights which the Vendor grants to the Purchaser and the Second Vendor in respect of the use by them of
the Direct Supply Settlement System software application to manage their business activities; 

  

	1.1.15 	“Employees” means all the employees of the Second Vendor employed in the Business at the Transfer Time but excluding the Excluded Employees (and at the date hereof
consists of those persons specified in the list attached to the Disclosure Letter) excluding the Excluded Employees; 

  

	1.1.16 	“Encumbrance” includes any interest or equity of any person (including any right to acquire, option or right of pre-emption) or any mortgage, charge, pledge, lien,
assignment, hypothecation, security interest (including any created by law), title retention or other security agreement or arrangement or a rental, hire purchase, credit sale or other agreement for payment on deferred terms;

  

	1.1.17 	“Excluded Assets” means cash in hand or at the bank and all cheques and other securities representing the same (other than those (if any) representing any of the Book
Debts hereby agreed to be sold) and any assets of the Vendor or the Second Vendor which do not relate solely to the Business; 

  

	1.1.18 	“Excluded Employees” means Robert Andris Bankovskis (employee number 0203084), Richard John Murphy (employee number 10008775), David William Taylor (employee number
0438927) and Yuliya Kiryeyeva (employee number 10026952); 

  

	1.1.19 	“Excluded Liabilities” means any liabilities of the Vendor or the Second Vendor which do not relate solely to the Business; 

  

	1.1.20 	“Goodwill” means all the goodwill, interest and connection of the Vendor in and concerning the Business together with the right to represent the Purchase as carrying on
the Business as a going concern in succession to the Vendor; 

  

	1.1.21 	“Intellectual Property” means patents, trade marks, service marks, rights (registered or unregistered) in any designs; applications for any of the foregoing, trade or
business names, copyright (including rights in computer software) and topography rights; know-how; secret formulae and processes; lists of suppliers and customers and other confidential and proprietary knowledge and information; rights protecting
goodwill and reputation; database rights and rights under licences and consents in relation to such things and all rights or forms of protection of a similar nature to any of the foregoing or having equivalent effect anywhere in the world;

  

	1.1.22 	“Intellectual Property Agreements” means agreements or arrangements relating in any way whether wholly or party to Intellectual Property; 

  

	1.1.23 	“Intellectual Property Rights” means all Intellectual Property owned or used by the Vendor in relation to the Business in any part of the word (other than the Listed
Intellectual Property Rights); 

  

	1.1.24 	“Interest Rate” means interest at a rate equal to the base lending rate from time to time of The Bank of England less 0.8; 

  

 5 

	1.1.25 	“Listed Intellectual Property” means the intellectual property referred to in the list annexed to the Disclosure Letter, if any; 

  

	1.1.26 	“Listed Intellectual Property Agreements” means the Intellectual Property Agreements set out in the list annexed to the Disclosure Letter, if any;

  

	1.1.27 	“Management Accounts” means the management accounts of the Business for the period ending on the Balance Sheet Date, true copies of which are annexed to the Disclosure
Letter; 

  

	1.1.28 	“Prepayments” means the prepayments made and other amounts paid by the Vendor in respect of the Business and attributable in whole or in part to the period after the
Transfer Time as shown in the Completion Accounts; 

  

	1.1.29 	“Provisional Consideration” has the meaning given in Clause 3.1 (Amount); 

  

	1.1.30 	“Records” means all the books, files, records and other documents of the Vendor or the Second Vendor relating wholly or mainly to the Business or any of the Business
Assets and in whatever medium so held including, without limitation the following: 

  

	 	(a)	all books of account, ledgers, payroll records, income records, information relating to clients customers and suppliers and other books, documents and computer records which relate
to or are relevant to the Business; 

  

	 	(b)	all promotional material, sales publications, catalogues, price lists, advertising materials, surveys, reports and other technical materials and sales matter relating to the
Business; and 

  

	 	(c)	(subject to Clause 14 (Value Added Tax)) all VAT records relating to the Business; 

  
 (but excluding any records the Vendor or the Second Vendor is required by law to retain including, without limit, all
national insurance and PAYE records) 
  

	1.1.31 	the “Regulations” means The Transfer of Undertakings (Protection of Employment) Regulations 1981 and any subsequent re-enactment or modification thereof;

  

	1.1.32 	“Systems Contracts” means the licencing, maintenance and support contracts and contractual arrangements of the Vendor in relation to the computer hardware utilised by the
Employees in respect of the Business, details of which are set out in the Disclosure Letter and the DSSS Software Licence; 

  

	1.1.33	“Taxation” or “Tax” includes (without limitation) corporation tax, advance corporation tax, income tax, capital gains tax, the charge under s 601(2) of the Taxes
Act 1988, value added tax, the charge to tax under s 419 of the Taxes Act 1988, customs and other import duties, inheritance tax, stamp duty, stamp duty reserve tax, capital duties, national insurance contributions, local authority council taxes,
petroleum revenue tax, foreign taxation and duties, and any payment whatsoever which the Vendor may be or become bound to make to any person as a result of the operation of any enactment relating to any such taxes or duties, and all penalties,
charges and interest relating to any of the foregoing or resulting from a failure to comply with the provisions of any enactment relating to taxation; 

  

	1.1.34 	“Third Party Rights” means all rights of the Vendor against third parties arising out of or in connection with the Business Assets or the conduct of the Business prior to
the Transfer Time (including, but not limited to, all rights under or in respect of the Contracts), but excluding any claim by or right of the Vendor in respect of: 

  

	 	(a)	taxation; or 

  

 6 

	 	(b)	insurance (other than that relating to any Business Asset hereby agreed to be sold); 

  

	1.1.35 	the “Transfer” means the transfer of the Business pursuant to this Agreement; 

  

	1.1.36 	“Transfer Time” means 0000 hours on 01 April 2005; 

  

	1.1.37 	“VAT” means Value Added Tax; 

  

	1.1.38 	“Vendor’s Group” means the Vendor and each of its Affiliates (including the Second Vendor); and 

  

	1.1.39 	“Warranties” means the warranties and representations set out in Schedule 3 (Warranties and Representations). 

  

	1.2	Construction of Certain References 

  
 In this Agreement, where the context admits: 
  

	1.2.1 	words and phrases the definitions of which are contained or referred to in part XXVI of the Companies Act 1985 shall be construed as having the meanings thereby attributed to them;

  

	1.2.2 	references to statutory provisions shall be construed as references to those provisions as amended or re-enacted or as their application is modified by other provisions from time to
time and shall include references to any provisions of which they are re-enactments (whether with or without modification); 

  

	1.2.3 	where any statement is qualified by the expression ‘so far as the Vendor is aware’ or ‘to the best of the Vendor’s knowledge and belief’ or any similar
expression, that statement shall be deemed to include an additional statement that it has been made after due and careful enquiry; 

  

	1.2.4 	references to Clauses and Schedules are references to clauses and schedules of and to this Agreement, references to Sub-clauses or Paragraphs are, unless otherwise stated,
references to Sub-clauses of the Clause or Paragraphs of the Schedule in which the reference appears, and references to this Agreement include the Schedules; and 

  

	1.2.5 	references to any document being in ‘agreed terms’ or in ‘agreed form’ are to that document in the form signed or initialled by or on behalf of the parties for
identification. 

  

	1.3	Headings 

  
 The headings and sub-headings are inserted for convenience only and shall not affect the construction of this Agreement. 
  

	1.4	Schedules 

  
 Each of the Schedules shall have effect as if set out herein. 
  

	2.	Sale of Business Assets 

  

	2.1	Sale and Purchase 

  
 Subject as hereinafter expressly provided, the Vendor and the Second Vendor shall each sell with full title guarantee (or to the extent it is not the
owner thereof shall procure the sale, with full title guarantee by the same) and free from all encumbrances to the Purchaser and the Purchaser (with a view to carrying on the Business as a going concern in succession to the Vendor) shall purchase,
with effect from the Transfer Time; 
  

	2.1.1 	the Current Assets; 

  

 7 

	2.1.2 	the Intellectual Property Rights; 

  

	2.1.3 	the Goodwill; 

  

	2.1.4 	the Listed Intellectual Property; 

  

	2.1.5 	the Records; 

  

	2.1.6 	the benefit (subject to the burden in so far as it relates to the period following the Transfer Time) of the Contracts; 

  

	2.1.7 	the Third Party Rights; and 

  

	2.1.8 	subject to Clause 2.2 (Exclusions), all other property, assets and rights of the Vendor used in or solely for the purposes of the Business or solely in connection with such Business
Assets or any of them. 

  

	2.2	Exclusions 

  

	2.2.1 	The sale and purchase pursuant to this Agreement shall not include the Excluded Assets nor the Excluded Liabilities; 

  

	2.2.2 	The Vendor acknowledges and agrees that the Purchaser shall not assume or have any liability or obligation in respect of the Business which is not specifically assumed by it under
this Agreement and, without limitation, the Purchaser shall have no responsibility in respect of the Excluded Liabilities. Accordingly, the Vendor hereby agrees to indemnify the Purchaser and hold it harmless against any obligation or liability of
the Vendor in respect of the Business (including the Excluded Liabilities) not specifically assumed by the Purchaser under this Agreement. 

  

	2.3	Risk and Insurance 

  
 Risk in respect of the Business Assets agreed to be sold and purchased hereunder shall pass to the Purchaser at the Transfer Time and accordingly the
Vendor shall carry on the Business between the date hereof and the Transfer Time for its own benefit and at its own risk. 
  

	2.4	No Sale or Part Only 

  
 Subject as provided in Sub-Clause 6.1 (Pending Third Party Consents) the Purchaser shall not be obliged to complete the purchase of any of the Business
Assets unless the purchase of all such assets is effected simultaneously. 
  

	3.	Consideration 

  

	3.1	Amount 

  
 The consideration for the sale and purchase of the Business Assets shall (subject to Sub-Clause 3.2 (Adjustment)) be the sum of £2 (the
“Provisional Consideration”) which shall (subject as aforesaid) be apportioned between the Business Assets as follows: 
  

	3.1.1 	for the Current Assets, the Records and the benefit (subject to the burden) of the Contracts the sum of £1 (subject to adjustments as provided in Schedule 2); and

  

	3.1.2 	for the Goodwill, the Listed Intellectual Property, the Intellectual Property Rights and the Third Party Rights the sum of £1, 

  
 and the Purchaser shall in addition discharge the Assumed Liabilities in
accordance with Clause 6.3 (Assumed Liabilities). The apportionment of consideration is given for the sake of convenience only and the Vendor agrees that the Purchaser’s remedies shall not in any way be limited or affected by the amount
apportioned to any particular Business Asset or category of Business Asset. 
  

 8 

	3.2	Adjustment 

  
 The Provisional Consideration shall be subject to adjustment in accordance with Schedule 2 (Adjustment of Consideration). 
  

	3.3	Method and Timing for Payment of Consideration 

  
 The consideration for the Business Assets shall be payable as follows: 
  

	3.3.1 	An amount equal to the Provisional Consideration shall be paid by the Purchaser to the Vendor in cash at Completion, such payment to be in satisfaction of the purchase by the
Purchaser of the Business Assets from both the Vendor and the Second Vendor. 

  

	3.3.2 	The amount and method of payment in respect of any adjustment to the Provisional Consideration shall be determined in accordance with Schedule 2. 

  

	4.	Conditions 

  
 Completion is conditional upon the transfer to the Purchaser of the licence for the supply of electricity granted to the Vendor under section 6(1)(d) of
the Electricity Act 1989 (as amended) and in the event that the above conditions shall not have been satisfied with effect from open of business on 01 April 2005 this Agreement shall lapse and no party shall make any claim against any other in
respect hereof, save for any antecedent breach. 
  

	5.	Completion 

  

	5.1	Date and Place of Completion 

  
 Subject to clause 4 above, Completion shall take place at the Transfer Time or immediately upon this Agreement becoming unconditional, whichever is the
later. 
  

	5.2	Vendors’ Obligations 

  
 On Completion the Vendor or, as the case may be, the Second Vendor shall deliver or cause to be delivered to the Purchaser: 
  

	5.2.1 	the Current Assets and all relative documents of title; 

  

	5.2.2 	an assignment of each of the Listed Intellectual Property in agreed terms; 

  

	5.2.3 	assignments of, or copy assignment notices for, each of the Contracts, the Intellectual Property Rights, and the Third Party Rights each in such form as the Purchaser shall
reasonably require; 

  

	5.2.4 	the Records; 

  

	5.2.5 	the DSSS Software Licence; and 

  

	5.2.6 	to the extent not attached to the Disclosure Letter, a copy of a waiver of their rights to transfer pursuant to the Regulations executed by each of the Excluded Employees.

  

	5.3	Purchaser’s Obligations 

  
 The Purchaser shall pay the Consideration for the Business Assets as provided by Sub-Clause 3.3 (Method and Timing for Payment of Consideration).

  

 9 

	5.4	Failure to Complete 

  
 If in any respect the provisions of Sub-Clause 5.2 (Vendor’s Obligations) are not complied with on the date for Completion set by Sub-Clause 5.1
(Date and Place of Completion) the Purchaser may: 
  

	5.4.1 	proceed to Completion so far as practicable (without prejudice to its rights hereunder); or 

  

	5.4.2 	rescind this Agreement. 

  

	6.	Consents, Contracts and Assumed Liabilities 

  

	6.1	Pending Third Party Consents 

  
 Without prejudice to any other provisions of this Agreement, the Vendor shall obtain all such consents as may be necessary for the transfer of the
Business Assets to the Purchaser with effect from the Transfer Time and the Vendor declares itself with effect from the Transfer Time trustee for the Purchaser in respect of all such Business Assets until the same shall, with any necessary consents
from third parties, have been finally assigned to the Purchaser. The Vendor undertakes that until completion of such assignments it will with effect from the Transfer Time act under the direction of the Purchaser and as its agents in all matters
relating to such Business Assets. The Vendor shall be fully and effectively indemnified by the Purchaser in so acting. 
  

	6.2	Treatment of Contracts 

  
 In respect of the Contracts: 
  

	6.2.1 	the Vendor shall with effect from the Transfer Time assign or hold to the order of the Purchaser or procure the assignment to the order of the Purchaser of all the Contracts which
are capable of assignment without the consent of other parties; 

  

	6.2.2 	in the case of those of the Contracts not so capable of assignment the Vendor shall, as soon as practicable following Completion, use all reasonable endeavours to obtain, at the
Vendor’s cost and expense, all necessary consents for the assignment of the same or to arrange the novation thereof on terms acceptable to the Purchaser; and 

  

	6.2.3 	in respect of the benefit of the Contracts, unless and until such consents are obtained or novation is effected (and in respect of the burden of performance of the Contracts after
Transfer Time, unless and until such novation is effected) the Vendor shall, at the option of the Purchaser, following Completion either: 

  

	6.2.4 	unless contractually prevented from so doing, sub-contract the same to the Purchaser on the same terms (mutandis mutandis) and for the same remuneration as apply to the
Contracts in question; or 

  

	6.2.5 	act in connection therewith in all respects as the Purchaser may from time to time reasonably direct; 

  

	6.2.6 	and so that (without prejudice to the generality of the foregoing) the Purchaser shall perform the obligations and liabilities arising under the Contracts in question so far as any
such obligation or liability arises after the Transfer Time (provided that (i) no such obligation or liability is attributable to a breach of duty or contract of the Vendor prior to the Transfer Time and (ii) such obligations have been notified by
the Vendor to the Purchaser prior to the date hereof) and the full benefit of all contractual rights, benefits and claims thereunder whether arising before or after the Transfer Time shall vest in and be held on trust by the Vendor for the Purchaser
absolutely. 

  

	6.3	Assumed Liabilities 

  
 The Purchaser shall assume responsibility as from the Transfer Time for the payment or 

  

 10 

 
performance of the Assumed Liabilities and shall indemnify and hold harmless the Vendor in respect of the same. 
  

	7.	Mutual Covenants 

  

	7.1	Vendor’s Covenants 

  
 Save as otherwise herein expressly provided the Vendor covenants with the Purchaser that: 
  

	7.1.1 	the Vendor will pay, satisfy, discharge and fulfil all costs, claims, expenses, liabilities, obligations and undertakings whatsoever relating to the Business arising in respect of
or by reference to any period up to the Transfer Time and will indemnify and hold harmless the Purchaser in respect of the same; and 

  

	7.1.2	 in the event of any breach or delay by the Vendor in performing whatever is required of it under Sub-Clause (A), the Purchaser shall be entitled (but in no way obliged) to do,
on behalf of the Vendor, whatever is reasonably required to satisfy or discharge any such liability and obligation and the Vendor will indemnify and hold harmless the Purchaser from and against all cost, claims, liabilities and expenses which the
Purchaser may thereby reasonably suffer or incur. 

  

	7.2	Purchaser’s Covenants 

  
 Save as otherwise herein expressly provided the Purchaser covenants with the Vendor that it will pay, satisfy, discharge, and fulfil all costs, claims,
expenses, liabilities, obligations and undertakings whatsoever relating to the Business in respect of any period commencing on the Transfer Time and will indemnify and hold harmless the Vendor in respect of the same. 
  

	7.3	Taxation, Royalties and Environmental Levys, Charges and Penalties 

  
 The Vendor acknowledges that the Purchaser shall not be liable in any respect of any liability of the Vendor for taxation royalties and environmental
levys, charges and penalties arising from its conduct of the Business or ownership or disposal of the assets to be purchased pursuant to this Agreement and the Vendor shall fully and effectually indemnify and hold harmless the Purchaser in respect
of the same. 
  

	8.	Post Completion Obligations 

  

	8.1	Post Completion Obligations 

  

	8.1.1 	All monies or other items belonging to the Purchaser which are received by the Vendor on or after Completion in connection with the Business or any of the Business Assets shall
immediately be paid or passed by the Vendor to the Purchaser. 

  

	8.1.2 	The Purchaser shall be entitled following Completion (after giving reasonable notice) to have access during normal business hours to any of the books of account, financial or other
records which relate partly to the Business and which are retained by the Vendor following Completion and at the Purchaser’s expense to take copies of and extracts from the same. 

  

	9.	Warranties and Retention 

  

	9.1	General 

  
 The Vendor hereby warrants and represents to the Purchaser in the terms of the Warranties (other than the Second Vendor’s Warranties (as defined
below)) and acknowledges and accepts that the Purchaser is entering into this Agreement in reliance upon each of these Warranties (other than the said Second Vendor’s Warranties). The Second Vendor hereby warrants and represents to the
Purchaser in terms of such of the Warranties as are expressed as given by the Second Vendor (“Second Vendor’s Warranties”) and acknowledges and accepts that the Purchaser is entering into this Agreement in reliance upon each of these
Second Vendor Warranties. 
  

 11 

	9.2	Purchaser’s Knowledge 

  
 The Warranties are given subject to matters fairly disclosed in this Agreement or in the Disclosure Letter, but no other information relating to the
Business of which the Purchaser has knowledge (actual or constructive) shall prejudice any claim made by the Purchaser under the Warranties or operate to reduce any amount recoverable. The provisions of s 6(2) of the Law of Property (Miscellaneous
Provisions) Act 1994 are hereby excluded. 
  

	9.3	Warranties Independent 

  
 Each of the Warranties shall be separate and independent and, save as expressly provided, shall not be limited by reference to any other Warranty or
anything in this Agreement. 
  

	9.4	Damages 

  
 Without restricting the rights of the Purchaser or the ability of the Purchaser to claim damages on any basis in the event that any of the Warranties is
broken or proves to be untrue or misleading, the Vendor hereby covenants to pay, on demand, to the Purchaser: 
  

	9.4.1 	the amount necessary to put the Purchaser and the Business into the position which would have existed if the Warranties had not been broken and had been true and not misleading; and

  

	9.4.2 	all costs and expenses incurred by the Purchaser, directly or indirectly, as a result of such breach. 

  

	9.5	Pending Completion 

  
 The Vendor and the Second Vendor shall procure that (save only as may be necessary to give effect to this Agreement) it shall not do, allow or procure any
act or omission before Completion which would constitute a breach of any of the Warranties which are given by them if they were given at any and at all times from the date hereof down to Completion or which would make any of the Warranties
inaccurate or misleading if they were so given. 
  

	9.6	Further Disclosure by Vendor 

  
 The Vendor or the Second Vendor, as the case may be, shall forthwith disclose in writing to the Purchaser any matter or thing which may arise or become
known to the Vendor after the date hereof and before Completion which is inconsistent with any of the Warranties which are given by them or which might make any of them inaccurate or misleading if they were given at any and at all times from the
date hereof down to Completion or which is material to be known to a purchaser for value of the Business. 
  

	9.7	Rescission 

  
 In the event of any matter or thing that is mentioned in Sub-Clause 9.5 becoming known to the Purchaser before Completion or in the event of it becoming
apparent on or before Completion that the Vendor is in material breach of any of the Warranties or any other term of this Agreement the Purchaser may at its option either: 
  

	9.7.1 	rescind this Agreement by notice in writing to the Vendor; or 

  

	9.7.2 	proceed to Completion but without prejudice to its rights to claim for breach of this Agreement or such Warranties. 

  

 12 

	10.	Employees of the Business 

  

	10.1	Contracts of Employment 

  
 The Purchaser acknowledges and agrees that the respective contracts of employment of the Employees shall have effect from and after the Transfer Time as
if originally made between each of the Employees and the Purchaser and that (inter alia) the provisions of regs 5 and 7 of the Regulations shall apply. 
  

	10.2	Informing Employees 

  
 If not already done at or by the Transfer Time, as soon as practicable after the Transfer Time the Vendor shall prepare and sign a letter to each Employee
in a form agreed with the Purchaser outlining the consequences of the Transfer and a copy of such letter shall be delivered to each Employee by the Vendor. 
  

	10.3	Vendor Indemnity 

  
 The Vendor covenants with the Purchaser that the Vendor will indemnify the Purchaser and hold the Purchaser harmless against all and any costs, claims,
expenses, liabilities, demands, losses and actions (including legal costs on an indemnity basis) arising from any claims arising from facts or events occurring: 
  

	10.3.1 	prior to the Transfer Time and/or which arise or are alleged to arise against the Purchaser by virtue of the operation of the Regulations in connection with this Agreement; or

  

	10.3.2 	at any time whether before or after the Transfer Time and which are brought by any person other than an Employee and which arise or are alleged to arise against the Purchaser by
virtue of the operation of the Regulations in connection with this Agreement. 

  
 In this Clause 10 ‘person’ means any individual or organisation (including, without limitation, trade unions and elected representatives). 
  

	10.4	Conduct of Claims 

  
 In the event that any of the Employees or other person brings a claim against the Vendor or the Purchaser arising out of or in connection with the
Transfer, the Vendor and the Purchaser shall at their own respective expense give to the other as soon as practicable after any request therefor all co-operation, assistance and information which may be reasonably relevant to the claim. 

 

	10.5	Confidentiality and Other Restrictions 

  
 The Vendor hereby agrees to assign to or otherwise hold for the Purchaser with effect from the Transfer Time the benefit of any confidentiality or other
undertakings or restrictions given to the Vendor by any present or former employees of the Vendor in the Business where such undertakings or restrictions or the benefit thereof are not novated to or otherwise vested in the Purchaser by virtue of the
Regulations and accordingly the Vendor hereby agrees pending formal assignment or novation of the same and at the request of the Purchaser to take such steps, actions and proceedings as the Purchaser shall reasonably require to enforce such
undertakings and restrictions (or any of them) for the benefit of the Purchaser. 
  

	11.	Value Added Tax 

  

	11.1	Transfer as Going Concern 

  
 The Purchaser and the Vendor intend that art 5 of the Value Added Tax (Special Provisions) Order 1995 shall apply to the transfer of the Business Assets
hereunder and accordingly: 
  

	11.1.1 	the Vendor and the Purchaser shall on the date of Completion give notice of such a transfer to HM Customs & Excise; and 

  

 13 

	11.1.2 	on Completion the Vendor shall deliver to the Purchaser all records referred to in s 49(1) of the Value Added Tax Act 1994, relating to the Business (the Vendor shall be entitled to
retain photocopies of such records and shall also be entitled at its own expense to, and the Purchaser shall permit, the Vendor or its agents access to the originals of such records upon giving reasonable notice to the Purchaser) and the Vendor
agrees that it has not and will not seek a direction that the Vendor be entitled to keep such records. 

  

	11.2	Payment of VAT 

  

	11.2.1 	To the extent that the Vendor and the Purchaser are not in the same VAT group at the time of Completion, they shall use all reasonable endeavours to secure that pursuant to the said
art 5, the sale of the Business Assets pursuant to this Agreement is treated as neither a supply of goods nor a supply of services for the purposes of VAT and the Vendor and the Purchaser shall agree the form of a letter to be sent to their
respective VAT offices seeking confirmation that art 5 applies to the transfer of Business Assets. 

  

	11.2.2 	In the event that an amount is paid by the Purchaser to the Vendor in respect of VAT which is not properly chargeable then the Vendor shall be obliged to repay to the Purchaser an
amount equal to such alleged VAT. 

  

	11.2.3 	In the event that VAT is chargeable on the transfer of the Business Assets hereunder or any of them pursuant to the Agreement then subject to receipt by the Purchaser of the tax
invoices relating thereto, the Purchaser shall pay to the Vendor an amount equal to the amount of VAT payable in respect of such transfer. 

  

	11.3	Pre and Post Completion Supplies 

  
 All VAT payable in respect of goods and services supplied or deemed to be supplied by the Vendor in connection with the business prior to Completion and
all interest payable thereon and penalties attributable thereto shall be paid to HM Customs & Excise by the Vendor and the Vendor shall be entitled to receive and to retain for its own benefit all reimbursement or credit from HM Customs &
Excise for VAT borne by the Vendor on goods and services supplied to the Vendor prior to Completion and any payments received in respect of VAT overpaid to HM Customs & Excise prior thereto. 
  

	12.	Provisions Relating to this Agreement 

  

	12.1	Assignment 

  
 This Agreement shall be binding upon and enure for the benefit of the successors of the parties but shall not be assignable, save that the Purchaser may
at any time assign all or any part of its rights and benefits under this Agreement, including the Warranties and any cause of action arising under or in respect of any of them, to any transferee of all or any part of the Business Assets or to any
Affiliate of the Purchaser who may enforce them as if he had also been named in this Agreement as the Purchaser. 
  

	12.2	Whole Agreement 

  

	12.2.1 	This Agreement, together with any documents referred to in it, constitutes the whole agreement between the parties relating to its subject matter and supersedes and extinguishes any
prior drafts, agreements, undertakings, representations, warranties, assurances and arrangements of any nature, whether in writing or oral, relating to such subject matter. 

  

	12.2.2 	No variation of this Agreement shall be effective unless made in writing and signed by each of the parties. 

  

 14 

	12.3	Agreement Survives Completion 

  
 The Warranties and all other provisions of this Agreement, in so far as the same shall not have been performed at Completion, shall remain in full force
and effect notwithstanding Completion. 
  

	12.4	Rights etc Cumulative and Other Matters 

  

	12.4.1 	The rights, powers, privileges and remedies provided in this Agreement are cumulative and are not exclusive of any rights, powers, privileges or remedies provided by law or
otherwise. 

  

	12.4.2 	No failure to exercise nor any delay in exercising any right, power, privilege or remedy under this Agreement shall in any way impair or affect the exercise thereof or operate as a
waiver thereof in whole or in part. 

  

	12.4.3 	No single or partial exercise of any right, power, privilege or remedy under this Agreement shall prevent any further or other exercise thereof or the exercise of any other right,
power, privilege or remedy. 

  

	12.5	Release of One Vendor 

  
 The Purchaser may release or compromise the liability of any of the Vendors hereunder without affecting the liability of the other Vendor. 
  

	12.6	Further Assurance 

  
 At any time after the date hereof the Vendor shall, at the request and cost of the Purchaser, execute or procure the execution of such documents and do or
procure the doing of such acts and things as the Purchaser may reasonably require for the purpose of vesting the respective Business Assets hereby agreed to be sold in the Purchaser or its nominees and/or otherwise giving to the Purchaser the full
benefit of all the provisions of this Agreement. 
  

	12.7	Invalidity 

  
 If any provision of this Agreement shall be held to be illegal, void, invalid or unenforceable under the laws of any jurisdiction, the legality, validity
and enforceability of the remainder of this Agreement in that jurisdiction shall not be affected, and the legality, validity and enforceability of the whole of this Agreement in any other jurisdiction shall not be affected. 
  

	12.8	Counterparts 

  
 This Agreement may be executed in any number of counterparts, which shall together constitute one Agreement. Any party may enter into this Agreement by
signing any such counterpart. 
  

	12.9	Costs 

  
 Each party shall bear its own costs arising out of or in connection with the preparation, negotiation and implementation of this Agreement. 
  

	12.10 	Notices 

  

	12.10.1 	Any notice or other communication required to be given under this Agreement or in connection with the matters contemplated by it shall, except where otherwise specifically provided,
be in writing in the English language and may be: 

  

	 	(a)	personally delivered, in which case it shall be deemed to have been given upon delivery at the relevant address; or 

  

 15 

	 	(b)	if within the United Kingdom, sent by first class pre-paid post, in which case it shall be deemed to have been given two Business Days after the date of posting; or

  

	 	(c)	sent by fax, in which case it shall be deemed to have been given when despatched, subject to confirmation of uninterrupted transmission by a transmission report, provided that any
notice despatched by fax after 5 pm (at the place where such fax is to be received) on any day shall be deemed to have been received at 8am on the next Business Day. 

  

	12.10.2 	Any party to this Agreement may notify the other parties of its address or other details, or any change thereto, provided that such notification shall be effective only on the date
specified in such notice or five Business Days after the notice is given, whichever is later. 

  

	13.	Law and Jurisdiction 

  

	13.1	English Law 

  
 This Agreement shall be governed by, and construed in accordance with, English law. 
  

	13.2	Jurisdiction 

  
 In relation to any legal action or proceedings to enforce this Agreement or arising out of or in connection with this Agreement (‘proceedings’)
each of the parties irrevocably submits to the jurisdiction of the English courts and waives any objection to proceedings in such courts on the grounds of venue or on the grounds that the proceedings have been brought in an inconvenient forum.

  

	13.3	Process Agent 

  
 The Second Vendor appoints the Vendor as its process agent to receive on its behalf service of process in any proceedings in England. Service upon the
process agent shall be good service upon the Second Vendor whether or not it is forwarded to and received by the Second Vendor. 
  
 AS WITNESS the hands of the duly authorised representatives of the parties the day and year first above written. 
  

 16 

 SCHEDULE 1 
 THE CURRENT ASSETS 
  
 All cash in hand, in
transit and at the bank and all cheques and securities representing the same including the Book Debts and Prepayments. 
  

 17 

 SCHEDULE 2 
 ADJUSTMENT OF CONSIDERATION 
  

	1.	Within 5 (five) months from the date of Completion, the Purchaser shall produce and provide to the Vendor completion accounts on the following basis (“the Completion
Accounts”): 

  

	(a)	The Completion Accounts shall be prepared in respect of the Vendor only. 

  

	(b)	The Completion Accounts shall be prepared as at 31 March 2005 and shall be a balance sheet prepared in accordance with the normal accounting practices of the Purchaser for the
preparation of management accounts. 

  

	(c)	Save in the event of manifest error the Completion Accounts shall be binding on the Vendor and the Second Vendor. In the event of manifest error the Vendor, the Second Vendor and
the Purchaser shall act in good faith to meet and agree any changes which should be made to the Completion Accounts to remedy such manifest error. 

  

	2.	Within 18 (eighteen) months from the date of Completion, the Purchaser shall produce and provide to the Vendor a payables and receivables reconciliation in respect of each of the
following (each a “Payables and Receivables Reconciliation”): 

  

	(a)	the amount, if any, of any third party charges paid by the Vendor following Completion in respect of Triad (as such term is defined in the Balancing and Settlement Code) or other
charges imposed by the System Operator (as such term is defined in the Balancing and Settlement Code) in respect of the operation of the GB electricity transmission system, or any third party charges paid by the Vendor following Completion imposed
by a Distributor (as such term is defined in the Electricity Act 1989 (as amended)) in respect of the operation of an electricity distributions system in Great Britain (expressed in each case as a positive number); and 

  

	(b)	the amount, if any, of any monies received by the Purchaser from the Authority (as defined for the purposes of the Renewables Obligation Order 2002 (SI 2002/0914)) in respect of
Renewable Obligations Certificates (as defined for the purposes of the Renewables Obligation Order 2002 (SI 2002/0914)) presented by the Vendor in respect of the Obligation Period (as defined for the purposes of the Renewables Obligation Order 2002
(SI 2002/0914)) ending on the Transfer Date (expressed as a positive number). 

  
 Save in the event of manifest error each Payables and Receivables Reconciliation shall be binding on the Vendor and the Second Vendor. In the event of manifest error the Vendor, the Second Vendor and the Purchaser
shall act in good faith to meet and agree any changes which should be made to the Payables and Receivables Reconciliation so affected to remedy such manifest error. 
  

	3.	The amount, if any, by which the net assets in the Completion Accounts exceed the net assets in the Management Accounts shall be an increase to the Provisional Consideration in that
amount, and the amount, if any, by which the net assets in the Management Accounts exceed the net assets in the Completion Accounts shall be a decrease to the Provisional Consideration in that amount. Any such increase shall be paid by the Purchaser
to the Vendor within 60 days of the date on which the Purchaser has provided the Completion Accounts to the Vendor. Any such decrease shall be paid by the Vendor to the Purchaser within 60 days of the date on which the Purchaser has provided the
Completion Accounts to the Vendor. 

  

	4.	The amount of each Payables and Receivables Reconciliation with a positive number, if any, shall be an increase to the Provisional Consideration (as such amount may have been
adjusted pursuant to paragraph 3 above) in that amount, and the amount of a Payables and Receivables Reconciliation with a negative number, if any, shall be a decrease to the Provisional Consideration (as such amount may have been adjusted pursuant
to paragraph 3 above) in that amount. Any such increase shall be paid by the Purchaser to the Vendor within 60 days of the date on which the Purchaser has provided the Payables and Receivables Reconciliation in question to the Vendor. Any such
decrease shall be paid by the Vendor to the Purchaser within 60 days of the date on which the Purchaser has provided the Payables and Receivables Reconciliation in question to the Vendor. 

  

 18 

 SCHEDULE 1 
 WARRANTIES AND REPRESENTATIONS 
  

	1.	Interpretation 

  

	1.1	In this Schedule, where the context admits: 

  

	1.1.1 	‘Operator of the Business’ or ‘Operator’ means any person carrying on the Business at the date hereof and includes the Vendor and any member of the Vendor’s
Group and, after the Transfer Time, means the Purchaser; 

  

	1.1.2 	‘Computer Systems’ means the Software and Data; 

  

	1.1.3 	‘Data’ means any data or information used by or for the benefit of the Business at any time and stored electronically at any time; 

  

	1.1.4 	‘Software’ means any set of instructions for execution by microprocessor used by or for the benefit of the Business irrespective of application, language or medium; any
question whether a person is connected with another shall be determined in accordance with Income and Corporation Taxes Act 1988, s 839 (subject to the deletion of the words from ‘Except’ to ‘arrangements’ in subs (4) thereof)
which shall apply in relation to this schedule as it appears in relation to that Act; 

  

	1.2	reference to any Act, statutory instrument, regulation, bye-law or other requirement of English law and to any English legal term for any action, remedy, method of judicial
proceeding, legal document, legal status, court, official or any legal concept or thing shall in respect of any jurisdiction other than England be deemed to include that which most nearly approximates in that jurisdiction to the English legal term;
and 

  

	1.3	where, in this Schedule, a term is defined in and for the purposes of a particular Paragraph or Sub-Paragraph, the relevant definition shall apply, where the context admits, for all
other purposes of this Schedule. 

  

	2.	Vendor’s Warranties and Representations 

  
 The Vendor hereby warrants and represents to and for the benefit of the Purchaser in the following terms: 
  

	2.1	The Vendor and the Vendor’s Group 

  

	2.1.1 	Capacity The Vendor has full power and authority to enter into and perform this Agreement and has full power and authority to carry on the Business as it is now being carried
on and to sell the Business and the Business Assets (and each of them) to the Purchaser on the terms of this Agreement, and may execute and deliver this Agreement and perform its obligations under this Agreement. 

  

	2.1.2 	Validity This Agreement constitutes valid and binding obligations on the Vendor in accordance with its terms. 

  

	2.1.3 	Branches and Associations The Vendor is not, and has not agreed to become, in relation to the Business, a member of any partnership, joint venture, consortium or other
unincorporated association, body or undertaking in which it is to participate with any other in any business or investment. 

  

	2.2	Licences, Litigation and the Law 

  

	2.2.1 	Compliance with Laws There is no order, decree or judgment of any court or any governmental or other competent authority or agency of the United Kingdom or any other relevant
foreign country outstanding against the Business or the Vendor which may have a material adverse effect upon the Business or the Business Assets. 

  

 19 

	2.2.2 	Licences etc 

  

	 	(A)	All licences, consents, permits, approvals and authorisations (public and private) necessary and/or desirable for utilising any of the Business Assets in the Business or carrying on
effectively any aspect of the Business are in full force and effect and are not likely to be suspended, cancelled or revoked. 

  

	 	(B)	All reports, returns and information required by law or as a condition of any licence, consent, permission, approval or other authorisation to be made or given to any person or
authority in connection with the Business have been made or given to the appropriate person or authority. 

  

	2.2.3 	Breach of statutory provisions Neither the Vendor, nor any of its officers, agents or employees (during the course of their duties in relation to the Business) have
committed, or omitted to do, any act or thing the commission or omission of which is, or could be, in contravention of any Act, Order, Regulation, or the like in the United Kingdom or elsewhere which is punishable by fine or other penalty and no
notice in respect thereof has been received. 

  

	2.2.4 	Litigation  

  

	 	(A)	None of the Vendor’s officers or agents, and none of the employees of the Business is engaged in or the subject of any litigation, arbitration, administrative or criminal
proceedings, whether as plaintiff, defendant or otherwise, which adversely affects or is likely to have an adverse effect on the Business and/or the Business Assets and/or the ability of the Vendor or any purchaser to carry on the Business in the
same manner and to the same extent as previously carried on. 

  

	 	(B)	No such litigation or arbitration, administrative or criminal proceedings are pending, threatened or expected, and so far as the Vendor is aware, there are no facts or circumstances
likely to give rise to any such litigation or arbitration or administrative or criminal proceedings. 

  

	2.2.5 	Inducements So far as the Vendor is aware no officer, agent or employee of the Vendor in relation to the Business has paid any bribe (monetary or otherwise) or used any of
the Business Assets unlawfully to obtain an advantage for any person. 

  

	2.3	Accounts and Records 

  

	2.3.1	Management Accounts 

  

	 	(A)	The Vendor is not aware of any fact which would lead a purchaser to believe that the Management Accounts did not show a true and fair view of the assets and liabilities of the
Vendor and the Business as at, and the profits of the Vendor and the Business for the accounting reference period ended on, the Balance Sheet Date. 

  

	 	(B)	The Vendor does not consider the Management Accounts misleading. 

  

	2.3.2 	Books and Records 

  

	 	(A)	All the books and other material comprised in the Records which are to be delivered or otherwise made available to the Purchaser in accordance with the terms of this Agreement have
been fully, properly and accurately maintained and do not contain or reflect any material inaccuracies or discrepancies and no notice or allegation that any of the same is incorrect or should be rectified has been received; 

 

 20 

	 	(B)	Without prejudice to the generality of the foregoing, the Records will fully reflect and provide full and sufficient details of: 

  

	 	(i)	all entitlements of customers of the Business to any special terms, discounts, rebates, allowances and the like in respect of or by reference to the terms on which goods or services
have been supplied by the Vendor to such customers prior to the Transfer Time; and 

  

	 	(ii)	the names and addresses of all current customers, brokers, agents and/or suppliers of the Business, all dealings between the Vendor and such customers, brokers, agents and/or
suppliers in respect of whom there is a debt or credit outstanding. 

  

	2.4	The Conduct of Business and the Effect of Sale 

  

	2.4.1 	Business since the Balance Sheet Date Since the Balance Sheet Date: 

  

	 	(A)	there has been no material deterioration in the financial or trading position or prospects or turnover of the Business; 

  

	 	(B)	there has been no significant event or occurrence (including, but not limited to the loss of any significant customer or supplier) which has had or may following Completion have a
material adverse affect on the Business (or any of the Business Assets) or its or their respective value, profitability or prospects; 

  

	 	(C)	the Vendor has paid creditors of the Business in accordance with their respective credit terms or (if not) within the time periods usually applicable to such creditors and save as
disclosed there are no debts outstanding by the Vendor in relation to the Business which have been due for more than 90 days; and 

  

	 	(D)	the Vendor has not done or omitted to do anything which might prejudicially affect the Goodwill. 

  

	 	(E)	No substantial customer representing more than 5 per cent of the Business has since the Balance Sheet Date and preceding the date of this Agreement: 

  

	 	(i)	ceased or indicated an intention to cease trading or reduce its level of trading with the Business; 

  

	 	(ii)	changed or is likely to change the terms on which it is prepared to trade with the Business; 

  

	2.4.2 	Consequence of Acquisition of the Business by the Purchaser The Vendor is not aware of any circumstances (whether or not connected with the Purchaser and/or the sale of the
Business Assets hereunder) indicating that, nor has it been informed or is otherwise aware that any person who now has business dealings with the Business would or might cease to do so from and after Completion. 

  

	2.5	The Business and its Assets 

  

	2.5.1 	Business Assets  

  

	 	(A)	The Business Assets comprise all of the assets, rights and privileges (other than cash) which are currently or have since the Balance Sheet Date been used or required by the Vendor
to carry on the Business. 

  

	 	(B)	To the best of the knowledge, information and belief of the Vendor there is no dispute or circumstances likely to give rise to a dispute directly or indirectly relating to all or
any of the Business Assets which would materially affect the trading or financial position or prospects of the Business. 

  

 21 

	2.5.2 	Intellectual Property Rights 

  

	 	(A)	As far as the Vendor is aware, none of the processes or products of the Vendor and/or used in the Business infringes any Intellectual Property or any right of any other person
relating to Intellectual Property or involves the unlicensed use of confidential information disclosed to the Vendor in relation to the Business by any person in circumstances which might entitle that person to make a claim against the Vendor in
relation to the Business. 

  

	 	(B)	Confidential information and know-how used in the Business is kept strictly confidential and the Vendor operates and fully complies with procedures which maintain such
confidentiality. The Vendor is not aware of any such confidentiality or procedure relating to such confidentiality having been breached. The Vendor has not disclosed (except in the ordinary course of its business) any of its know-how, trade secrets
or list of customers to any other person. 

  

	 	(C)	The Listed Intellectual Property Agreements are all the Intellectual Property agreements to which the Vendor is a party and each of them is valid and binding and the Vendor is not
in breach of any of the provisions of such agreements. 

  

	 	(D)	The Vendor has, if required to do so under the Data Protection Act 1984 duly registered as a data user in respect of the Business and has complied with the data protection
principles as set out in that Act. 

  

	 	(E)	All current advertising, marketing and sales promotions by the Business comply with all applicable codes of practice and self-regulatory schemes. The Vendor has not been disciplined
under any scheme or code in respect of any such advertising, marketing or sales promotion and no complaint has been made against it in respect thereof and there are no outstanding complaints or disciplinary proceedings against the Vendor in respect
thereof. 

  

	2.5.3 	Insurances 

  

	 	(A)	Details of all the insurance policies other than insurance policies covering all Affiliates of the Vendor (including, without limitation, the limit and basis of cover under each
policy and the amount of the applicable excess) in which the Vendor has an interest in relation to the Business (the ‘Insurances’) are given in the Disclosure Letter. 

  

	 	(B)	All the Insurances are in full force and effect and will be maintained in full force without alteration pending Completion, there are no circumstances which might lead to any
liability under any of the Insurances being avoided by the insurers or the premiums being increased. In relation to the Insurances there are no special or unusual terms, restrictions or rates of premium and all premiums have been paid on time. There
is no claim outstanding under any Insurance nor is the Vendor aware of any circumstances likely to give rise to a claim nor (if the Vendor was to renew the Insurances) is the Vendor aware of any circumstances as to why the insurers would refuse to
renew them. 

  

	2.5.4 	Trade Associations Full particulars of all trade or business associations of which the Vendor is a member of in relation to the Business are set out in the Disclosure Letter,
and the Vendor is now and has been at all material times in compliance in all material respects with the regulations or guidelines laid down by any such trade or business association and all reports, comments and recommendations made by any such
association during the six years prior to the date of this Agreement are annexed to the Disclosure Letter. 

  

	2.5.5 	Terms of Business True and complete copies of the standard terms upon which the Vendor carries on the Business or provides goods or services to any person in relation to the
Business are annexed to the Disclosure Letter and, save as disclosed in the Disclosure Letter, the Vendor does not provide and has not provided any goods or services to any person on terms which differ from its standard terms in relation to the
Business as annexed. 

  

 22 

	2.6	Contracts and Contractual Arrangements 

  

	2.6.1 	The Contracts 

  

	 	(A)	The schedule of Contracts annexed to the Disclosure Letter is complete and accurate in all material respects. 

  

	 	(B)	No notice of termination of any such Contract has been received or served by the Vendor. 

  

	 	(C)	The Vendor is not now and will not at the Transfer Time in relation to the Business be a party to or subject to any agreement, transaction, obligation, commitment, understanding,
arrangement or liability (including, without limit, any of the Contracts) which: 

  

	 	(i)	is known by the Vendor to be likely to result in a loss to the Vendor or to the Business on completion of performance; or 

  

	 	(ii)	cannot readily be fulfilled or performed by the Vendor on time and without undue or unusual expenditure of money or effort; or 

  

	 	(iii)	involves or is likely to involve obligations, restrictions, expenditure or receipts of any unusual onerous or exceptional nature; or 

  

	 	(iv)	requires the Vendor to pay any commission, finder’s fee, royalty or the like. 

  

	 	(D)	There are no agreements or arrangements relating to the Business or any part thereof to which the Vendor or any member of the Vendor’s Group is a party (including, but not
limited to the Contracts) which in any way restricts the freedom of the Vendor to carry on the Business in whole or in part or to use or exploit any of the Business Assets in any part of the world as it thinks fit. 

  

	2.6.2 	Defaults 

  

	 	(A)	Neither the Vendor nor the Business nor any other party to any agreement with the Vendor or the Business is in default thereunder, and the Vendor is not aware of any invalidity or
grounds for termination, avoidance, rescission or repudiation of any agreement to which it or the Business is a party which in any such case would be material in the context of the financial or trading position of the Business or in the context of
the Business Assets] nor (so far as the Vendor is aware) are there any circumstances likely to give rise any such event. 

  

	 	(B)	Full details of any customers (or any persons to whom the Vendor in the course of Business has supplied goods or services in the twelve months ending on the date hereof) who have
defaulted (or who are believed by the Vendor to be likely to default) in the payment when due of any monies to the Vendor or the Business are specified in the Disclosure Letter. 

  

	2.6.3 	Non-arm’s length contracts The Vendor has not in relation to the Business been a party to, nor has the profits or financial position of the Business during the last
three years been affected by any agreement or arrangement which is not entirely of an arm’s length nature. 

  

	2.6.4 	Tenders, etc No offer, tender, or the like is outstanding which is capable of being converted into an obligation of the Vendor in respect of the Business by an acceptance or
other act of some other person and the Vendor is not in negotiations with, nor has it put proposals forward or entered into discussions with any customer or supplier for the renewal of any existing business or acquisition of any new business other
than those specified in the Disclosure Letter. 

  

	2.7	Miscellaneous 

  

	2.7.1 	Sureties There is not now outstanding in respect of the Business or any of the Business Assets any guarantee or warranty or agreement for indemnity or for suretyship given by or for
the accommodation of the Business or in respect of the Business Assets. 

  

	2.7.2 	 All Material Matters Disclosed All information contained or referred to in this Agreement 

  

 23 

	 	 
(including the Schedules and the documents in the agreed terms) and in the Disclosure Letter or any annexure thereto or which has otherwise been disclosed by
or on behalf of the Vendor to the Purchaser on or prior to the date hereof is true and accurate in all material respects and the Vendor is not aware of any other fact or matter which renders any such information misleading because of any omission or
ambiguity or for any other reason. The Vendor has disclosed to the Purchaser all information and facts relating to the Business (including financial information) which are or may be material for disclosure to a purchaser of the Business and/or the
Business Assets on the terms of this Agreement and all information and facts so disclosed are true and accurate in all material respects. 

  

	3.	Second Vendor’s Warranties and Representations 

  
 The Second Vendor hereby warrants and represents to and for the benefit of the Purchaser in the following terms: 
  

	3.1	The Second Vendor 

  
 Capacity The Second Vendor has full power and authority to enter into and perform this Agreement and to sell such of the Business Assets as it is
selling pursuant to this Agreement to the Purchaser. 
  

	3.2	The Business Assets 

  
 To the best of the knowledge, information and belief of the Second Vendor there is no dispute or circumstances likely to give rise to a dispute directly
or indirectly relating to all or any of the Business Assets which would materially affect the trading or financial position or prospects of the Business. 
  

	3.3	Employees 

  

	3.3.1 	Particulars of Employees 

  

	 	(A)	The Employees are all employed by the Second Vendor in sole respect of the Business at the date of this Agreement and notice of termination will not be given by the Second Vendor on
or before the Transfer Time. There are no other individuals employed at the date of this Agreement in the Business wheresoever. There will be no other individuals employed at the Transfer Time in the Business wheresoever. 

 

	 	(B)	Save as specified in the Disclosure Letter, there are no subsisting contracts for the provision by any person of any consultancy services to the Business. 

 

	 	(C)	None of the Employees has given notice terminating his contract of employment. 

  

	 	(D)	None of the Employees is under notice of dismissal or has any outstanding dispute with the Second Vendor or any other member of the Vendor’s Group in connection with or arising
from his employment nor is there any liability outstanding to such persons except for remuneration or other benefits accruing due and no such remuneration or other benefit which has fallen due for payment has not been paid. 

 

	 	(E)	During the period of six months ending with the execution of this Agreement neither the Second Vendor nor any member of the Vendor’s Group nor any other person carrying on the
Business has directly or indirectly terminated the employment of any person employed in or by the Business where the reason or principal reason for such termination was the transfer of the Business. 

  

	 	(F)	There are no loans owned by any of the Employees to any of the Second Vendor or any member of the Vendor’s Group. 

  

	 	(G)	 Since the last review date, no change has been made in (i) the rate of remuneration, or the emoluments or pension benefits or other contractual benefits, of any
officer of the 

  

 24 

	 	 
Second Vendor or any of the Employees or (ii) the terms of engagement of any such officer or any of the Employees. 

  

	 	(H)	None of the Employees will become entitled by virtue of their contract of service to any enhancement in or improvement to their remuneration, benefits or terms and conditions of
service only by reason of the execution of this Agreement or the completion of the sale and purchase under or pursuant to this Agreement. 

  

	 	(I)	Neither the Second Vendor nor any member of the Vendor’s Group have in the last twelve months, entered into any informal or formal agreement to amend or change the terms and
conditions of employment of any of the Employees (whether such amendment or change is to take effect prior to or after the Transfer Time). 

  

	3.3.2 	Disputes with Employees There is no: 

  

	 	(A)	outstanding claim by any person who is now or has been an employee of the Second Vendor or any member of the Vendor’s Group in relation to the Business or any dispute
outstanding with any of the said persons or with any unions or any other body representing all or any of them in relation to their employment in the Business or of any circumstances likely to give rise to any such dispute; 

 

	 	(B)	industrial action involving any employee, whether official or unofficial, currently occurring or threatened; or 

  

	 	(C)	industrial relations matter which has been referred to ACAS or any similar governmental agency in the applicable jurisdiction for advice, conciliation or arbitration.

  

 25 

			
	SIGNED BY David Jeremy Western	  	)
	Duly authorised for and on	  	)
	behalf of British Energy Generation Limited	  	)
		
	SIGNED BY Andrew Neil O’Hara	  	)
	Duly authorised for and on	  	)
	behalf of British Energy Power and Energy Trading Limited	  	)
		
	SIGNED BY Andrew Neil O’Hara	  	)
	Duly authorised for and on	  	)
	behalf of British Energy Direct Limited	  	)

  

 26Agreement between British Energy Generation & BE Limited,  Dated June 27, 2005

 Exhibit 4.42 
  
 AGREEMENT 
  
 between 
  
 BRITISH ENERGY GENERATION (UK) LIMITED 
  
 and 
  
 BRITISH ENERGY GENERATION LIMITED 
  
 For the
acquisition of substantially all the business and associated 
 assets of British Energy Generation (UK) Limited 

 CONTENTS 
  

			
	 Clause

	  	Page No.

	 1.      DEFINITIONS AND INTERPRETATION
	  	1
	 2.      SALE AND PURCHASE
	  	5
	 3.      CONSIDERATION
	  	5
	 4.      RISK, ETC.
	  	6
	 5.      CONDITIONS
	  	6
	 6.      COMPLETION
	  	6
	 7.      ASSUMPTION OF LIABILITIES
	  	8
	 8.      THE CONTRACTS
	  	8
	 9.      WARRANTIES
	  	9
	 10.    FURTHER ASSURANCE
	  	9
	 11.    PPC CONSENTS
	  	9
	 12.    UNDERTAKING
	  	9
	 13.    VALUE ADDED TAX
	  	9
	 14.    EMPLOYEES
	  	10
	 15.    EXPENSES
	  	10
	 16.    GENERAL
	  	10
	 17.    GOVERNING LAW
	  	10
	PART 1	  	12
	PART 2A	  	14
	PART 2B	  	15
	PART 3	  	16
	PART 4A	  	17
	PART 4B	  	18
	PART 4C	  	19
	PART 5	  	20
	PART 6	  	21
	PART 7	  	27

  

 AGREEMENT 
  
 Between 
  

	(1)	BRITISH ENERGY GENERATION (UK) LIMITED, incorporated in Scotland under the Companies Acts (No.SC117121) and having its registered office at Systems House, Alba Campus,
Livingston, EH54 7EG (“the Vendor”) 

  
 and 
  

	(2)	BRITISH ENERGY GENERATION LIMITED, a company incorporated in England and Wales under the Companies Acts (No.03076445) and having its registered office at Barnett Way,
Barnwood, Gloucester, GL4 3RS (“the Purchaser”) 

  
 WHEREAS:- 
  

	A.	the Vendor carries on the Business; 

  

	B.	the Vendor is the beneficial owner of the whole of the issued share capital of the Purchaser; 

  

	C.	the Vendor has agreed to sell and the Purchaser has agreed to purchase, as a going concern, the undertaking and all of the assets (other than the Excluded Assets and the Charged
Assets) of the Vendor; and 

  

	D.	the Purchaser and the Vendor have agreed to set out the terms of the sale and purchase and associated matters herein. 

  
 It is agreed as follows:- 
  

	1.	DEFINITIONS AND INTERPRETATION 

  

	1.1	In this agreement, unless the context otherwise requires:- 

  
 Accounting Records means all accounting books, records, vouchers, information and data (howsoever recorded or stored) kept by the Vendor in
connection with the Business at the Time of Sale; 
  
 Agreed
Form means the form agreed by the parties on or prior to the date hereof; 
  
 Assets means the assets referred to in clause 2; 
  
 Bank means HSBC Bank plc; 
  
 Book Debts means the debts owed to the Vendor at the Time of Sale; 
  
 Business means the business (other than the Excluded Business) carried on by the Vendor as at the Time of Sale; 
  
 Business Day means a day on which the Scottish clearing banks are open for over-the-counter business in Scotland; 
  
 Cash means all cash (whether at credit of any account with any bank
or institution or in hand) held by the Vendor at the Time of Sale; 
  
 Charged Accounts has the meaning provided for in the Corporate Deposit Deed; 
  
 Charged Assets means the Charged Accounts and the Deposits; 
  
 Completion means completion of the sale and purchase of the Assets as described in clause 6; 
  
 Completion Balance Sheet means the balance sheet referred to in
clause 3.3; 
  

 1 

 Completion Date means the later of 30th June 2005 and the Business Day by which all of the Conditions have been purified; 
  
 Conditions means the conditions to Completion set out in clause 5; 
  
 Contracts means the all outstanding contracts, orders and engagements
(whether written or oral) existing at the Time of Sale between the Vendor and third parties, which remain (in whole or in part) to be performed but excluding the Employment Contracts and the Excluded Employment Contracts; 
  
 Corporate Deposit Deed means the Corporate Deposit Deed between the
Vendor and Citibank NA; 
  
 Deposits has the meaning
provided for in the Corporate Deposit Deed; 
  
 Dispositions means the dispositions of the Heritable Properties in the Agreed Form; 
  
 Drawdown Date means the Completion Date; 
  
 Employees means those persons who are employed by the Vendor at the Time of Sale other than the Excluded Employees; 
  
 Employment Contracts means the contracts and other terms of
employment between the Vendor and the Employees; 
  
 Employment Regulations means the Transfer of Undertakings (Protection of Employment) Regulations 1981 (as amended); 
  
 Encumbrance means any encumbrance, option, pledge or other right or interest of a similar nature; 
  
 Equipment means, other than the Third Party Assets, all fixed and
moveable fittings, equipment, plant, machinery, furniture, stationery, implements and effects and all other fixed and moveable assets (other than the Heritable Property) of the Vendor; 
  
 Event of Default means any of the events specified in condition 6 of Part 7 of the Schedule; 
  
 Excluded Assets means (i) those assets which are used by the Excluded
Employees for the purpose of the Excluded Business (ii) the Excluded Employment Contracts and (iii) the Shares; 
  
 Excluded Business means support services relative to business planning; administrative and secretarial support to engineering and safety and
regulation divisions, documentation support, and provision of IT management and IT support services, including desktop support and application support; 
  
 Excluded Employees means the employees listed in part 1 of the Schedule; 
  
 Excluded Employment Contracts means the contracts and other terms of employment between the Vendor and the Excluded
Employees; 
  
 Excluded Liabilities means all liabilities
of the Vendor incurred for the purpose of the Excluded Business and/or the employment of Excluded Employees; 
  
 Expert means an independent chartered accountant appointed by agreement between the Vendor and the Purchaser or, failing such agreement within 5
Business Days of the dispute arising, appointed on the application of either party by the then president of the Institute of Chartered Accountants of Scotland. 
  

Goodwill means the goodwill associated with the Business, including (without limiting the generality of the foregoing) the exclusive right of
the Purchaser to carry on (and represent that it is carrying on) the Business in succession to the Vendor; 
  

 2 

 Greenhouse Gas Permits means the permits granted in terms of the Greenhouse Gas Emissions Trading
Scheme Regulations 2003 more fully described in Part 4C of the Schedule; 
  
 Heritable Properties means the heritable properties more fully described in part 2A of the Schedule; 
  
 Interest Period means the period determined, as appropriate, in accordance with condition 2.3 of Part 7 of the Schedule; 
  
 IPC Consents means the integrated pollution control consents granted
in terms of Part I of the Environmental Protection Act 1990 more fully described in Part 4A of the Schedule; 
  
 Intellectual Property means all intellectual property of the Vendor other than that used exclusively for the purpose of the Excluded Business;

  
 Keeper means the Keeper of the Registers of Scotland;

  
 Leased Properties means the properties more fully
described in part 2B of the Schedule; 
  
 Leases means the
leases of, or any other document under which the Vendor has rights of occupation in respect of, the Leased Properties; 
  
 Liabilities means all liabilities and obligations of the Vendor existing at the Time of Sale (other than the Excluded Liabilities) whether or not
incurred in connection with the Business and the Assets and whether or not such liabilities and obligations fall due for performance or satisfaction before or after Completion including, for the avoidance of doubt, any liability for contamination
(whether radioactive or non-radioactive) of the Properties; 
  
 Loan means the loan provided for in clause 3.2.2; 
  
 Net Book Value shall have the meaning given to it in clause 3.1; 
  
 NII means Her Majesty’s Nuclear Installations Inspectorate; 
  
 NLF means Nuclear Liabilities Fund Limited, a company incorporated under the Companies Acts (Company Number SC164685) and having its Registered
Office at 16 Rothesay Place, Edinburgh EH3 7SQ; 
  
 Nuclear
Site Licences means licences to operate nuclear reactors or prescribed installations in terms of section 1(1) of the Nuclear Installations Act 1965; 
  
 Nuclear Site Licensees Co-operation Agreement means a valid duly executed Agreement between the Purchaser and Magnox Electric Limited in the Agreed
Form 
  
 PPC Consents means consents granted by SEPA in
terms of the Pollution Prevention and Control (Scotland) Regulations 2000 for combustion activities carried out at the Stations; 
  
 Properties means the Leased Properties and the Heritable Properties; 
  
 Potential Event of Default means any event which, with the giving of notice or the making of any determination or the
expiry of any period of time or the satisfaction of any other condition, may constitute an Event of Default; 
  
 Radioactive Substances Consents means the consents granted in terms of the Radioactive Substances Act 1993 more fully described in Part 4B of the
Schedule; 
  
 Records means all:- 
  

	 	(a)	books, vouchers, customer records, supplier records, catalogues, correspondence files, sales literature, publicity/promotional material and marketing material;

  

	 	(b)	personnel records, payroll records, pensions records and all national insurance and PAYE records relating, in each case, to the Employees; 

  

 3 

	 	(c)	computer data (including all disks and software on which it is stored) relating to the Business and/or the Assets; 

  

	 	(d)	all documentation relative to the Properties; and 

  

	 	(e)	all records required to be kept by statute (including but not limited to the Nuclear Installations Act 1965) and all documents and records required to be retained under the Nuclear
Site Licences currently held by the Vendor and for any specific periods defined in such licences, or in the arrangements of the Vendor made to meet the conditions contained in such licences or as otherwise agreed with the NII, including but not
limited to all environmental records, and health and safety records (including the Nuclear Safety Case and the Emergency Plan) relative to each Station; 

  
 and includes (without limiting the generality of the foregoing) the Accounting Records; 
  
 Recoverable Amount means the Loan, all interest accrued or accruing
thereon and all other sums which may be recoverable by the Vendor in terms of Part 7 of the Schedule; 
  
 SEPA means the Scottish Environment Protection Agency; 
  
 Secretary of State means Her Majesty’s Secretary of State for Trade and Industry; 
  
 Secretary of State for Scotland means Her Majesty’s Secretary of
State for Scotland; 
  
 Security Documentation means
valid, duly executed standard securities in the Agreed Form by the Purchaser in favour of the NLF over the Stations and a valid, duly executed letter from the NLF to the Purchaser substantially in the form of the draft forming Part 5 of the
Schedule;  
  
 Security Interest means any fixed or
floating security, charge, pledge, lien, right of retention, obligation to account or other encumbrance whatsoever; 
  
 Shares means all shares held or beneficially owned by the Vendor in British Energy Investment Limited and British Energy International Holdings
Limited; 
  
 Stations means Torness power station and
Hunterston B power station; 
  
 Stocks means all stocks of
fuel, spent fuel, spare parts, nuclear waste, raw materials and consumable stores of the Vendor at the Time of Sale, wherever situated; 
  
 Technical Documentation means all documents and other media containing and/or referring to Intellectual Property; 
  
 Terminated Contracts means (other than in connection with the
Excluded Assets or the Excluded Employees) all contracts, orders and engagements (whether written or oral) which have been terminated or have been performed in full by the Vendor prior to the Time of Sale; 
  
 Third Party Assets means assets held by the Vendor in connection with
the Business at the Time of Sale which are subject to lease, hire purchase, rental or similar agreements; 
  
 Third Party Rights means:- 
  

	 	(a)	the benefit of all sums to which the Vendor is (or after the Time of Sale may become) entitled, either from third parties or insurers, in respect of damage or injury to any of the
Assets or the Business where such damage or injury arose prior to Completion (but whether or not the same became apparent prior to or after Completion) save to the extent of sums expended prior to Completion in making good such damage or injury; and

  

	 	(b)	the benefit of all rights and claims which the Vendor may have, whether in respect of warranties, guarantees or otherwise, against any third party in respect of any of the Assets
and/or the Business or under the Terminated Contracts; 

  

 4 

 Time of Sale means that time on the day following the Completion Date which is an instant past
midnight on the Completion Date; 
  
 VAT means value added
tax; 
  
 the 1979 Act shall mean the Land Registration
(Scotland) Act 1979 together with all amendments thereof and the Statutory Instruments and Rules issued thereunder. 
  

	1.2	Reference to any statute or statutory provision includes a reference to that statute or statutory provision as from time to time amended, extended or re-enacted (save to the extent
that any amendment, extension or re-enactment imposes more onerous obligations than otherwise exist at Completion) and to any former statute or statutory provision replaced (with or without modification) by the statute or statutory provision
referred to. 

  

	1.3	The singular includes the plural and vice versa and any gender includes all genders. 

  

	1.4	The clause headings are inserted for ease of reference only and shall not affect the interpretation or construction of this agreement. 

  

	2.	SALE AND PURCHASE 

  

	2.1	With effect from the Time of Sale, the Vendor shall sell, as beneficial owner, to the Purchaser, free from all Security Interests, and the Purchaser shall purchase from the Vendor,
as a going concern, the Business together with the following assets:- 

  

	 	2.1.1	 the Book Debts; 

  

	 	2.1.2	 the Cash; 

  

	 	2.1.3	 the Contracts; 

  

	 	2.1.4	 the Equipment; 

  

	 	2.1.5	 the Goodwill; 

  

	 	2.1.6	 the Records; 

  

	 	2.1.7	 the Stocks; 

  

	 	2.1.8	 the Technical Documentation; 

  

	 	2.1.9	 the Third Party Rights; 

  

	 	2.1.10 the	Employment Contracts; 

  

	 	2.1.11 the	Heritable Properties; 

  

	 	2.1.12 the	Leases; 

  

	 	2.1.13 all	other property and assets owned by the Vendor other than the Excluded Assets and the Charged Assets. 

  

	2.2	The Excluded Business, the Excluded Assets, and the Charged Assets shall be excluded from the sale and purchase contemplated by this agreement. 

  

	3.	CONSIDERATION 

  

	3.1	The consideration for the sale and purchase of the Business and the Assets shall be a sum equal to the net book value of the Business and the Assets as at the Completion Date
(“the Net Book Value”) as determined in accordance with the provisions of clause 3.3 below. 

  

	3.2	The consideration shall be satisfied as follows:- 

  

	 	3.2.1	 by the Purchaser indemnifying the Vendor (as it hereby undertakes to do on demand) against the Liabilities notwithstanding the Liabilities may be greater than the Net Book
Value; and 

  

 5 

	 	3.2.2 	as to the amount, if any, by which the Net Book Value exceeds the Liabilities by the creation of an inter-company loan by the Vendor to the Purchaser to be made on the conditions
set out in Part 7 of the Schedule. 

  

	3.3	The Vendor shall procure the preparation of the Completion Balance Sheet showing the net book value and the liabilities as at 3rd July 2005 as soon as reasonably practicable following Completion (but not later than 30th November 2005) and shall thereafter deliver a copy thereof to the Purchaser. Save in the case of manifest error, the Completion Balance Sheet as so prepared
shall be conclusive and binding on the parties hereto. The net book value as shown in the Completion Balance Sheet shall be adjusted, in such manner as shall be agreed between the parties at their absolute discretion, to determine the Net Book Value
and the Liabilities. In the event of the parties failing to agree the Net Book Value and the Liabilities by 28th
February 2006 then the matter may be referred by either party to the Expert for determination whose decision shall, in the absence of manifest error, be final and binding. 

  

	4.	RISK, ETC. 

  
 Risk, property and title in and to the Assets shall pass to the Purchaser at the Time of Sale. 
  

	5.	CONDITIONS 

  
 Completion of this agreement is conditional upon:- 
  

	 	5.1	receipt of the consents of the Secretary of State and the Secretary of State for Scotland to the transfer of the Stations; and 

  

	 	5.2	receipt from the NII of new Nuclear Site Licences for each of the Stations in favour of the Purchaser. 

  

	6.	COMPLETION 

  

	A.	Completion shall take place on the Completion Date at MacRoberts, Excel House, Semple Street, Edinburgh or at such other place as the parties may agree when the Vendor shall deliver
to the Purchaser:- 

  

	6.1	the Cash, the Equipment, the Records, the Stocks, the Technical Documentation, the Third Party Assets and all other Assets which are capable of physical delivery (provided that the
Purchaser shall accept delivery of the same by their being left at the Properties at which they are located) together with all documents of title pertaining thereto insofar as the same are in the possession of the Vendor; and

  

	6.2	a valid, duly executed assignation (in the Agreed Form) in favour of the Purchaser of the following Assets:- 

  

	 	6.2.1 	the Book Debts; 

  

	 	6.2.2 	the Intellectual Property; 

  

	 	6.2.3	 the Goodwill; and 

  

	 	6.2.4 	the Third Party Rights; 

  

	6.3	the documents listed in part 3 of the Schedule;  

  

	6.4	the Greenhouse Gas Permits, the IPC Consents (or, as the case may be, subject to clause 11, the PPC Consents) and the Radioactive Substances Consents) all in the name of the
Purchaser; 

  

 6 

	6.5	a valid marketable title to the Heritable Properties with (at the Vendor’s cost) Form 10 and Form 11 Reports brought down to a date not earlier than 3 days prior to the
Completion Date and showing no entries adverse to the Vendor’s interest. 

  

	6.6	the Vendor shall, at the Vendor’s expense, deliver to the Purchaser such documents and evidence as the Keeper may require to enable the Keeper to issue a Land Certificate in
name of the Purchaser as the registered proprietor of the Heritable Properties and containing no exclusion of indemnity in terms of Section 12(2) of the 1979 Act. Such documents and evidence will include a plan or bounding description sufficient to
enable the Heritable Properties to be identified on the ordnance map and evidence that the description of the Heritable Properties as contained in the relevant title deeds habile to include the whole of the occupied extent of the Heritable
Properties. The Land Certificate to be issued to the Purchaser will disclose no entry, due or diligence prejudicial to the Purchaser’s interest other than such as are created by or against the Purchaser; 

  

	6.7	searches (including interim reports) in the register of charges and company files against the Vendor and against each company which has had a proprietorial interest in the Heritable
Properties within the 10 year prescriptive period such searches to be brought down (in the case of the Vendor) to the date 22 days after the registration of the Purchaser’s title or (in the case of prior limited companies) to the date 22 days
after the company ceased to have an interest in the Heritable Properties, such interim reports to be dated not earlier than 3 Business Days prior to the Completion Date. No such search (including interim reports) will disclose any entries
prejudicial to the Vendor’s or the prior proprietors’ (as the case may be) ability to grant valid dispositions of the Heritable Properties. In the event that the search (or interim report) in the register of charges against the Vendor
discloses one or more floating charges, the Vendor will deliver a letter of non-crystallisation of each such floating charge from the holder thereof in terms acceptable to the Purchaser, including the consent of the chargeholder to the transfer of
the Heritable Properties to the Purchaser. Without prejudice to the generality of the foregoing, the Vendor will deliver a letter of non-crystallisation and consent from the NLF; 

  

	6.8	a valid marketable title to the Leased Properties with Form 10 and Form 11 Reports brought down to a date not earlier than 3 days prior to the Completion Date and showing no entries
adverse to the Vendor’s interest. In addition, the Vendor shall, at the Vendor’s expense, deliver to the Purchaser such documents and evidence as the Keeper may require to enable the Keeper to issue a Land Certificate in name of the
Purchaser as the registered proprietor of the tenant’s interest in the Leased Properties and containing no exclusion of indemnity in terms of Section 12(2) of the 1979 Act. Such documents and evidence will include a plan or bounding description
sufficient to enable the Leased Properties to be identified on the ordnance map and evidence that the description of the Leased Properties as contained in the relevant title deeds habile to include the whole of the occupied extent of the Leased
Properties. The Land Certificate to be issued to the Purchaser will disclose no entry, due or diligence prejudicial to the Purchaser’s interest other than such as are created by or against the Purchaser; and 

  

	6.9	searches (including interim reports) in the register of charges and company files against the Vendor and against each incorporated company which has had an interest (whether
heritable or leasehold) in the Leased Properties within the 10 year prescriptive period such searches to be brought down (in the case of the Vendor) to the date 22 days after the date upon which the Purchaser obtains a real right in the Leased
Properties or (in the case of prior incorporated companies) to the date 22 days after the company ceased to have an interest in the Leased Properties, such interim reports to be dated not earlier than 3 Business Days prior to the Completion Date. No
such search (including interim reports) will disclose any entries prejudicial to the Vendor’s or the prior proprietors’ (as the case may be) ability to grant a valid disposition of the Leased Properties and /or a valid assignation of the
tenant’s interest in the Leased Properties. In the event that the search (or interim report) in the register of charges against the Vendor discloses one or more floating charges, the Vendor will deliver a letter of non-crystallisation of each
such floating charge from the holder thereof in terms acceptable to the Purchaser, including the consent of the chargeholder to the transfer of the Leased Properties to the Purchaser. Without prejudice to the generality of the foregoing, the Vendor
will deliver a letter of non-crystallisation and consent from the NLF. 

  

 7 

	6.10	The Purchaser may waive, in its absolute discretion, any requirement contained in clause 6.2 to clause 6.9 both inclusive. 

  

	B.	On the Completion Date, the Purchaser shall deliver to MacRoberts, 152 Bath Street, Glasgow the Security Documentation and the Nuclear Site Licensees Co-operation Agreement.

  

	7.	ASSUMPTION OF LIABILITIES 

  
 Without prejudice to clause 3.2.1, the Purchaser undertakes to:- 
  

	7.1	discharge, perform and satisfy the Liabilities; and 

  

	7.2	indemnify the Vendor, on demand, in respect of all claims, actions, demands, losses and expenses in connection with the Liabilities. 

  

	8.	THE CONTRACTS 

  

	8.1	The Purchaser shall:- 

  

	 	8.1.1 	assume and carry out all of the obligations of the Vendor under the Contracts; and 

  

	 	8.1.2 	indemnify the Vendor, on demand, in respect of all costs, claims, liabilities, losses and expenses in connection therewith. 

  

	8.2	If the benefit of any of the Contracts can be assigned by the Vendor without any person’s consent, then this agreement shall constitute an assignation by the Vendor of those
Contracts (which includes, but is not limited to the contracts, set out in Part 6 of the Schedule) from Completion and the Vendor hereby assigns to the Purchaser, with effect from the Time of Sale, its whole right, title and interest, post, present
and future in and to such contracts. 

  

	8.3	If a Contract cannot be transferred to the Purchaser except by an assignation made with the consent of a third party or by a novation agreement: 

  

	 	8.3.1	 this Agreement does not constitute an assignation, an attempted assignation, novation or attempted novation of the Contract if the assignation, attempted assignation, novation
or attempted novation would constitute a breach of the Contract; 

  

	 	8.3.2 	both before and after Completion the Purchaser and the Vendor shall each make all reasonable efforts to obtain the third party’s consent to the assignation, or achieve the
novation, of the Contract; and 

  

	 	8.3.3 	until the consent is obtained or novation is achieved, the Vendor shall, at the Purchaser’s sole cost and risk, hold such Contract and all monies, goods, services or other
benefits thereunder as trustee for the Purchaser and do each act and thing reasonably requested of it by the Purchaser to enable performance of the Contract and to provide for the Purchaser the benefits of the Contract (including, without
limitation, enforcement of a right of the Vendor against another party to the Contract arising out of its termination by the other party or otherwise) and shall upon receipt of any monies, goods, services or benefits account for and pay or deliver
the same to the Purchaser. 

  

	8.4	Following Completion, the Purchaser shall have the exclusive right to receive payment of any sums received by the Vendor in connection with its carrying on business prior to
Completion, whether or not received in connection with the Business and Assets (and in particular, but without limitation, any sums received in connection with the Charged Assets and the Terminated Contracts) (other than any sums received in
connection with the Excluded Assets and/or Excluded Employees), and any such sums received by the Vendor shall be remitted by the Vendor to the Purchaser forthwith upon receipt. The Vendor shall pass to the Purchaser, forthwith upon receipt, copies
of all correspondence invoices or communications relating to such sums. 

  

 8 

	9.	WARRANTIES 

  

	9.1	The Vendor warrants that it is entitled to sell and transfer the full legal and beneficial ownership of the Assets to the Purchaser on the terms set out in this agreement.

  

	9.2	Each party warrants to the other party that: 

  

	 	9.2.1 	it has full capacity and authority to enter into this agreement and to perform its obligations under this agreement and it has taken all necessary action to authorise the execution,
delivery and performance by it of this agreement; 

  

	 	9.2.2 	all necessary resolutions of its board of directors authorising its execution, delivery and performance of this agreement have been obtained and such resolutions remain in full
force and effect as of the date hereof without revocation or amendment; and 

  

	 	9.2.3 	it is not aware of any reason which may affect its ability to perform its obligations under this agreement. 

  

	10.	FURTHER ASSURANCE 

  

	10.1	In addition to the matters specified in clause 6 A., the Vendor shall, at the request of the Purchaser, at or after Completion, do and execute all acts, things and documents and use
all reasonable endeavours to procure that the same be done by third parties having a relevant interest so that the full benefit of this agreement, the Assets and the Business is vested in the Purchaser. 

  

	10.2	The Vendor shall supply the Purchaser with any information which it may request in respect of the Business, Assets and Liabilities to allow the Purchaser to report fully to British
Energy Group plc (“BE Group”) so that BE Group can meet its reporting obligations under the Deed of Undertaking entered into between British Energy plc (now British Energy Limited) and the Secretary of State dated 8th October 2004. 

  

	10.3	The Purchaser undertakes to maintain the Records on the same terms and conditions as the Vendor is required to maintain same under LC6(2) of the Nuclear Site Licences currently held
by the Vendor. 

  

	11.	PPC CONSENTS 

  

	11.1	In the event that the PPC Consents have been applied for but are not granted prior to Completion then, subject to the provisions of clause 11.2, the Vendor shall assign either the
application for the PPC Consents or the PPC Consents, as the case may be, in such manner and in such timescale as the Purchaser may reasonably and lawfully require. 

  

	11.2	The Vendor shall take all steps as the Purchaser may reasonably require with a view to procuring the consent of SEPA to any assignation required pursuant to clause 11.1.

  

	12.	UNDERTAKING 

  
 To the extent that the principal current use of the Properties or any part thereof has been for an activity (the “generation of electricity”)
for which an exemption or licence is required under section 5 or 6 of the Electricity Act 1989 or involving the distribution of electricity (insofar as it does not require a licence under section 6 of the Electricity Act 1989) the Purchaser agrees
and undertakes to the Vendor to continue to use the Properties or the relevant part thereof for the generation of electricity until at least 31st March 2006. 
  

	13.	VALUE ADDED TAX 

  
 All sums payable hereunder by the Purchaser are exclusive of any VAT which may be chargeable thereon. 
  

 9 

	14.	EMPLOYEES 

  
 The parties acknowledge that, pursuant to the Employment Regulations, the Employment Contracts will have effect after the Time of Sale as if originally
made between the Purchaser and the Employees. 
  

	15.	EXPENSES 

  
 The Purchaser shall meet all legal and other costs, charges and expenses arising, whether directly or indirectly, in connection with the negotiation,
preparation, execution and completion of this agreement and any documentation referred to herein. 
  

	16.	GENERAL 

  

	16.1	Insofar as not implemented on the Completion Date and save as otherwise provided herein, this agreement shall remain in full force and effect and the undertakings and indemnities
provided for herein shall be enforceable in accordance with their terms. 

  

	16.2	Neither this agreement nor any documents referred to herein shall be capable of variation unless such variation shall be made in writing and be signed by both the Purchaser and the
Vendor. 

  

	16.3	No waiver by either party of any of the requirements hereof or of any of its rights hereunder shall be effective unless given in writing and signed by or on behalf of that party and
no forbearance, delay or indulgence by either party in enforcing the provisions of this agreement shall prejudice or restrict the rights of that party nor shall any waiver by either party of any of the requirements hereof or any of its rights
hereunder release the other from full performance of its other obligations stated herein. 

  

	16.4	Each provision of this agreement shall be construed separately and (save as otherwise expressly provided herein) none of the provisions hereof shall limit or govern the extent,
application or construction of any other of them and, notwithstanding that any provision of this agreement may prove to be unenforceable, the remaining provisions of this agreement shall continue in full force and effect. 

 

	16.5	This agreement together with the documents referred to as being in the Agreed Form constitute the entire agreement between the parties relative to its subject matter and supersedes
any previous agreement between them. 

  

	16.6	This agreement shall not be capable of being assigned, either in whole or in part. 

  

	17.	GOVERNING LAW 

  
 This agreement shall be construed and receive effect in accordance with the law of Scotland and, insofar as not already subject thereto, the parties
hereto submit to the non-exclusive jurisdiction of the Scottish courts. 
  
 IN
WITNESS WHEREOF: 
  
 SIGNED on behalf of BRITISH ENERGY GENERATION
(UK) LIMITED by , 
 Authorised Signatory
at                    on            June 2005 in the presence of: 
  

									
					
	Witness:	 	 	 	 	 	 	 	 
					
	Full Name:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Authorised Signatory
					
	Address:	 	 	 	 	 	 	 	 

  

 10 

 SIGNED on behalf of BRITISH ENERGY GENERATION LIMITED
by                    , Authorised Signatory
at                    on             June 2005 in the presence of: 
  

									
					
	Witness:	 	 	 	 	 	 	 	 
					
	Full Name:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Authorised Signatory
					
	Address:	 	 	 	 	 	 	 	 

  

 11 

 This is the schedule referred to in the foregoing agreement between British Energy Generation (UK)
Limited and British Energy Generation Limited 
  
 Schedule

  
 PART 1 
  
 Excluded Employees 
  

			
	 McLaughlin, Mr. Gerard Archibald
	 	Business Planning - Finance
	 Mcmillan, Miss Margaret Carolyn
	 	ED S&RPS Management
	 Weidner, Mrs. Christine
	 	ED S&RPS Management
	 McGeough, Mr. Grant
	 	ED Work Management - Programme Control
	 Mcculloch, Mrs. Elaine
	 	ED S&RPS Rotating Plant & Dynamics
	 Forbes, Mr. Alan
	 	PIP Performance Improvement Project
	 McGranaghan, Mrs. Laura
	 	ED S&RPS Management
	 Weir, Miss Karen
	 	ED S&RPS Management
	 Sinclair, Mr. Craig
	 	Fuel Cycle
	 Simm, Mr. John Theodore
	 	Nuclear Security Arrangements
	 Butchart, Mr. Peter Appleby Irons
	 	GS Quality (n)
	 Barrett, Mrs. Moira Wendy Ilett
	 	GS Quality (n)
	 Imm, Mr. Clinton John
	 	IM AM Business Account Managers
	 Sparrow, Mr. Ronald Frederick
	 	IM AM Business Account Managers
	 Pearman, Mr. Stephen Robert
	 	IM AM Business Account Managers
	 Lloyd, Mr. Melvyn Thomas
	 	IM AM Business Account Managers
	 Scott, Miss Fiona Melville
	 	IM AM Business Analysis
	 Barker, Mr. Robert James
	 	IM Applications Support Barnwood
	 Sarti, Miss Leonora
	 	ED PPK Closure
	 Taylor, Mr. Nigel
	 	IM Projects & Services
	 Wragby, Mr. Martin
	 	IM AS BEPET Apps Support Barnwood
	 Collins, Mr. Andrew
	 	IM Corporate Network Support BWD
	 Pettifer, Mr. Nigel John
	 	IM Data Centre & Magnox Services
	 Hale, Mr. Graham
	 	IM DN Applications Infrastructure
	 Steven, Mr. Gordon
	 	IM DN Applications Infrastructure
	 Wakeman, Mr. Martin
	 	IM Fleet Data Enhancement
	 Quar, Mr. George
	 	IM Generation Network Support PPK
	 Stanfield, Mr. Alan John Maclure (Stan)
	 	IM Internal Support

  

 12 

			
	 Robertson, Miss Paula
	 	IM Internal Support
	 Hale, Mr. Christopher Royden
	 	IM Networks
	 Ralston, Mr. Andrew
	 	IM Projects & Services
	 Pinkerton, Mr. Angus Ian
	 	IM Security
	 Kelly, Mr. Ian James Neil
	 	IM Security
	 Jarvis, Mr. Douglas Smith
	 	Nuclear Security Arrangements
	 Morrisson, Mr. Stuart Leslie
	 	IM Servers
	 Taylor, Mr. Paul Steven
	 	IM Strategy & Arch
	 Hughes, Mr. Brian Joseph
	 	IM Strategy, IT Governance & Security
	 Anderson, Mrs. Shirley J
	 	Internal Audit
	 McGee, Ms. Karen Elizabeth Rettie
	 	SRD Industrial Safety
	 Hosie, Mrs. Kirsti
	 	SRD Industrial Safety
	 Black, Mr. Fraser
	 	IM AM Station IM HNB
	 Derrick, Mr.Ian
	 	IM SERV Eng & Station UNIX BWD
	 Mills, Mr. Craig
	 	IM DN Desktop Support BWD
	 Ferris, Mr. Kenneth
	 	IM DN Desktop Support BWD
	 Darby, Miss Nicola
	 	IM Corporate Network Support BWD
	 Greenwood, Mr. Paul
	 	IM DN Applications Infrastructure
	 Hallala-Romowicz, Mrs. Paulina
	 	IM AS Generation Apps BBWD

  

 13 

 PART 2A 
  
 Heritable Properties 
  
 Hunterston B Power Station, West Kilbride, Ayrshire and Torness Power Station, Dunbar, East Lothian in each case as described in full in the Dispositions. 
  

 14 

 PART 2B 
  
 Leased Properties 
  
 Hunterston Railhead Facility, being the area of ground shown outlined in red on Plan A annexed and signed as relative to the Lease between Hunterston Bulk Handling
Limited and Scottish Nuclear Limited . 
  
 Off site emergency support and control
centre, Cockenzie being the subjects described in the Lease between Scottish Power plc and Scottish Nuclear Limited. 
  
 North Ayrshire Emergency Centre, Cunninghame House, Irvine being the subjects more particularly described in Licence between North Ayrshire Council and British Energy
Generation (UK) Limited. 
  
 Emergency control room located within the
cooling water pump house complex at or adjoining the District Survey Laboratory, Hunterston A Power Station, Hunterston, Ayrshire being the subjects described in the Licence Agreement between Nuclear Electric plc and Scottish Nuclear Limited.

  

 15 

 PART 3 
  
 Property Documentation 
  
 Heritable Properties 
 Valid, duly executed dispositions (in the Agreed
Form) by the Vendor in favour of the Purchaser of the Heritable Properties. 
  
 Leasehold Properties 
  
 Valid, duly executed assignations (in
the Agreed Form) by the Vendor in favour of the Purchaser of: 
  

	(i)	the Lease between Scottish Power plc and Scottish Nuclear Limited in respect of Cockenzie Emergency Station; 

  

	(ii)	the Lease between Hunterston Bulk Handling Limited and Scottish Nuclear Limited; and 

  

	(iii)	the Licence between North Ayrshire Council and British Energy Generation (UK) Limited in respect of North Ayrshire Emergency Centre Cunninghame House, Irvine;

  

	(iv)	the Licence between Nuclear Electric plc and Scottish Nuclear Limited of the emergency control room at Hunterston A Power Station, Hunterston, Ayrshire. 

  
 Discharges 
  
 Valid and duly executed discharges (in the Agreed Form) by the NLF in favour of the Vendor of the Standard Securities dated and recorded in
the General Register of Sasines on 14 January 2005 in respect of the Stations. 
  

 16 

 PART 4A 
  
 IPC Consents 
  
 Consent IPC/004/1994 effective 20 May 1994, as amended, relating to Hunterston B 
  

Consent IPC/026/1993 effective 1 May 1993, as amended, relating to Torness 
  

 17 

 PART 4B 
  
 Radioactive Substances Consents 
  
 Hunterston B 
  

	1.	Authorisation concerning liquids to Firth of Clyde relating to BEG(UK) (ref IPB/4/1/4/3 004/96) effective 16 January 1996 

  

	2.	Authorisation concerning disposal of Scintillant & oily rags to Re-chem relating to BEG(UK) (ref IPB/4/1/4/3 005/96) effective 16 January 1996 

  

	3.	Authorisation concerning incineration of lubricating oil relating to BEG(UK) (ref IPB/4/1/4/3 072/96) effective 31 March 1996 

  

	4.	Authorisation concerning gases (and suspended particles of solid or liquid) relating to BEG(UK) (ref IPB/4/1/4/3 073/96) effective 31 March 1996 

  

	5.	Disposal of LLW to Drigg or Sellafield relating to BEG(UK) (ref IPB/4/1/3/3 074/96) effective 31 March 1996 

  
 Torness 
  

	1.	Authorisation concerning disposal of solid & liquid combustible to Re-chem relating to BEG(UK) (ref IPB/4/1/5/3 RSA/E/013/99) effective 01 April 1999 

 

	2.	Authorisation concerning disposal of LLW to Drigg or Sellafield relating to BEG(UK) (ref IPB/4/1/5/3 028/96) effective 31 March 1996 

  

	3.	Authorisation concerning liquids relating to BEG(UK) (ref IPB/4/1/5/3 029/96) effective 31 March 1996 

  

	4.	Authorisation concerning gases (and suspended particles of solid or liquid) relating to BEG(UK) (ref IPB/4/1/5/3 030/96) effective 31 March 1996 

  

	5.	Authorisation concerning incineration of lubricating oil relating to BEG(UK) (ref IPB/4/1/5/3 031/96) effective 31 March 1996 

  

 18 

 PART 4C 
  
 Greenhouse Gas Permits 
  
 Greenhouse gas emissions permit ETS/W/300004 relating to Hunterston B 
  
 Greenhouse gas emissions permit ETS/E/10010 relating to Torness 
  

 19 

 PART 5 
  
 “Magnox Letter” 
  
 British Energy Generation Limited 
 Barnett Way, 
 Barnwood, 
 Gloucester GL4 3RS 
  
 Date                     
  
 Dear Sirs 
  
 Hunterston “B” Power Station, Hunterston (“the Property”) 
  
 With reference to the standard security granted or about to be granted by you British Energy Generation Limited of Barnett Way, Barnwood, Gloucester GL4 3RS
(“BEG”) in favour of Nuclear Liabilities Fund Limited of 16 Rothesay Place, Edinburgh EH3 7SQ (“NLF”) over the property known as Hunterston “B” Power Station (“the Standard Security”) and with reference to the
Nuclear Site Licensees Co-operation Agreement entered into or to be entered into between you BEG and Magnox Electric Limited (“the Agreement”) we NLF hereby confirm and undertake to you BEG as follows:- 
  

	1.	That prior to becoming a Licensee (as that term is defined in the Agreement) we shall enter into an agreement in writing with the Other Party (as that term is defined in the
Agreement) in the same terms mutatis mutandis as the Agreement; and 

  

	2.	That on the assignation or transfer of our interest in the Standard Security to a third party we shall procure that the said third party grants to you an undertaking in the same
terms as this letter, including this clause, and 

  

	3.	That on any enforcement of the Standard Security, we shall procure that, prior to the disposition, conveyance, letting, disposal, transfer or other parting with or sharing of
possession or occupation of the Property or any part thereof or granting any licence in relation thereto to any party, the said party enters into an agreement in writing with the Other Party (as that term is defined in the Agreement) in the same
terms mutatis mutandis as the Agreement. 

  
 Yours
faithfully, 
  
 __________________ 
  
 Name _____________ 
 Authorised Signatory 
 For and on behalf of Nuclear Liabilities Fund Limited 
  
 I, the Secretary of State undertake to the NLF that I will not instruct NLF to take any
action in breach of its undertakings in the above letter. 
  
 ___________________

  
 A senior official of the Department of Trade and Industry duly authorised to
sign on behalf of The Secretary of State for Trade and Industry 
  
 Date
___________________ 
  

 20 

 PART 6 
  
 Contracts to be assigned pursuant to the terms of this agreement 
  
 For the purposes of this part 6 of the Schedule the following definitions shall apply: 
  
 “BEG” – British Energy Generation limited 
  
 “BEG (UK)” – British Energy Generation (UK) Limited 
  
 “BNFL” – British Nuclear Fuels plc 
  
 “CLG” – Nirex CLG Limited 
  
 “Magnox” – Magnox Electric Limited (formerly Magnox Electric plc) 

 
 “NGC” – National Grid Company plc 
  
 “Secretary of State” – the Secretary of State for the Department of Trade and
Industry 
  
 “SNL” – Scottish Nuclear Limited 
  
 “UKAEA” – United Kingdom Atomic Energy Authority 
  
 Part A – Contracts governed by English Law 
  

			
	 1.
	 	Agreement between BNFL and SNL (now BEG (UK)) for the Supply of Fuel for Use in Advanced Gas Cooled Reactors dated 30th March 1995 as amended by the Deed of Amendment dated 31st March 2003 and further amended by Deed of Amendment dated 22nd July
2003 and further amended by Deed of Amendment dated 30th October 2003 (for the Fuel Supply Period from 1st April 1989 to 31st March 2006)
		
	 2.
	 	Agreement between BNFL, BEG (UK) and BE for the supply of fuel for use in advanced gas cooled reactors from 1st
April 2006 dated 31st March 2003, as amended by
Deed of Amendment dated 31st March 2003 and further amended by Deed of Amendment dated 22nd July 2003 and further amended by Deed of Amendment dated 30th October 2003 (for the Fuel Supply Period from 1st April 2006)
		
	 3.
	 	Agreement for New Spent Fuel Management Services between BNFL, BEG (UK), British Energy Trading Services Limited (as agent for BEG (UK)) and British Energy plc dated 16th May 2003 and amended by Deed of Amendment dated 30th October 2003
		
	 4.
	 	Agreement for the storage and reprocessing of the irradiated oxide fuel and related services between BNFL and SNL dated 30th March 1995, as amended, by the Deed of Amendment dated 16th May 2003 between BNFL and BEG (UK) 2003 and further amended by Deed of Amendment dated 30th October 2003.
		
	 5.
	 	Agreement for the long term storage of irradiated oxide fuel and related services between BNFL and SNL (now BEG(UK)) dated 30th March 1995, as amended, by the Deed of Amendment dated 16th May 2003 between BNFL and BEG (UK) 2003 and further amended by Deed of Amendment dated 30th October 2003
		
	 6.
	 	Agreement between BNFL and SNL for Oxide Flask Maintenance dated 29th March 1996, as amended by the Deed of Amendment dated 16th May 2003 between BNFL and BEG (UK),
relating to the Agreement of Oxide Flask Maintenance 2003 and further amended by Deed of Amendment dated 30th
October 2003.

  

 21 

			
		
	 7.
	 	Agreement between BNFL and SNL, dated 3rd June 1997, as
amended by the Deed of Amendment dated 16th May 2003 between BNFL and BEG (UK), relating to the new Agreement for
Oxide Flask Maintenance Services 2003 and further amended by Deed of Amendment dated 30th October
2003.
		
	 8.
	 	Agreement for Oxide Miscellaneous Services between BNFL and SNL, dated 29 March 1996, as amended by the Deed of Amendment dated 16th May 2003 between BNFL and BEG (UK) 2003
and further amended by Deed of Amendment dated 30th October 2003.
		
	 9.
	 	Agreement between BNFL and BEG (UK) for the Manufacture of Non Standard Fuel and Provision of Services dated 30th March 1995 and amended by Deed of Amendment dated 30th October 2003.
		
	 10.
	 	Technical Services Agreement dated 30th March 1995 between
BNFL and BEG (UK) 2003.
		
	 11.
	 	Agreement between BEG, BEG (UK) and Parsons Brinckerhoff Limited for Quality Inspection and Surveillance Services for AGR Fuel Fabrication carried out by BNFL’s Westinghouse UK Fuel
Business dated October 2002
		
	 12.
	 	Draft Amendments to BEG (UK) Conditions of Contract for Turbine Services between BEG (UK) and Alstom Power Limited.
		
	 13.
	 	Industry Management Committee Programme Agreement between SNL and Nuclear Electric plc (now Magnox Electric plc) and BNFL dated 14 November 1994.
		
	 14.
	 	Agreement in Respect of Tie Bar Manufacturing Route Change between BNFL, BEG & BEG (UK), dated 28 August 2003.
		
	 15.
	 	Agreement between BEG (UK) and BNFL for the disposal of Low Level Radioactive Waste (Reference: WM/LLW/303) dated 16 October 2002 together with letter dated 16th October 2002
		
	 16.
	 	Agreement for Rail Transport Services of Irradiated Nuclear Fuel in the United Kingdom between BNFL and SNL, dated 3rd June 1997, as amended by the Deed of Amendment dated 16th May 2003 between BNFL and BEG (UK). 2003 and further amended by Deed of Amendment dated 30th October 2003
		
	 17.
	 	Company Agreement (Supply and Services) dated 16 July 2003 between BEG, BEG (UK) and Wyko Industrial Services Limited
		
	 18.
	 	Support Agreement between BE plc and NNC Limited dated 8th
January 2001
		
	 19.
	 	British Energy – Contract No. 40083420/40086630 for the Provision of Access, Thermal Insulation and Associated Services by C & D Industrial Services Limited and Plettac NSG plc
(Synergy Combined Services) for BEG and BEG (UK) at Hartlepool, Sizewell B and Torness Power Stations
		
	 20.
	 	Business Agreement (Ref: 40049503) covering the maintenance of Weir Manufactured Pumps, and Associated Equipment at British Energy Power Stations and the Provision of Strategic Spares between
BEG, BEG (UK) and Weir Valves and Controls UK Limited
		
	 21.
	 	BEG and Sulzer Pumps UK Limited – Business Agreement the Maintenance of Sulzer Manufactured Pumps and Associated Equipment of British Energy Power Stations and the Provision of Strategic
Spares (Business Agreement Ref: 40039244)

  

 22 

			
	 22.
	  	Contract no. 40093269 for the provision of fuel route support services at British Energy Stations between BE, BEG (UK) and Strachan and Henshaw Limited dated 1 July 2003
		
	 23.
	  	Contract no. 40086939 between BEG, BEG (UK) and Beran Instruments Limited, for gas circulator on-line vibration monitoring system (including signal conditioning)
		
	 24.
	  	Contract no. 40068022 between BEG, BEG (UK) and Alstec Limited for the replacement of channel gas outlet rate temperature trip units dated 6 February 2002
		
	 25.
	  	Contract no. 40089953 between BEG (UK) and Canberra Harwell Limited for the replacement of neutron flux monitoring pulse count measurement equipment dated 31 March 2003
		
	 26.
	  	Contract between BEG (UK), BEG and Beran Instruments Limited, for gas circulator on-line vibration monitoring system (including signal conditioning) (Contract number 40086939) in respect of
Torness and Heysham ‘B’ power stations dated 30 January 2003.
		
	 27.
	  	Contracts between BEG, BEG (UK) and Alstec Limited for the replacement of channel gas outlet temperature rate trip units (Contract No 40068022) at Hinkley Point ‘B’ and Hunterston
‘B’ power stations dated 6 February 2002.
		
	 28.
	  	Contract Letter dated 31 May 2000 and Contract Renewal Letter dated 31 March 2003 for the provision of certain IT Support Services together with the BEG (UK)’s standard conditions of
contract for support services with agreed amendments.
		
	 29.
	  	Letter addressed to Initial Electronic Security Systems Limited regarding all British Energy UK Nuclear Power Stations, Site Security Systems Maintenance, Contract number
40069440.
		
	 30.
	  	Letter addressed to Syseca Limited, Southmoor House regarding the Hunterston Power Station, Ferranti Argus 700 Data Logger Support Contract. Contract No. PPK 400 29371
		
	 31.
	  	Letter addressed to Syseca Limited, Southmoor House regarding the Torness Power Station, Ferranti Argus 700 TOLCS System Support, Contract Number PPK 400 29362.
		
	 32.
	  	Total Gas Management Contract (Business Agreement: BE/NAT/05001) between Nuclear Electric Limited, SNL and Linde Gas UK Limited, dated 2 October 1998.
		
	 33.
	  	Contract Letter from BEG and BEG (UK) to Weir Valves and Controls UK Limited regarding Hunterston B, Hinkley Point B, Hartlepool and Heysham 1 Power Stations, Cast Iron Cooling Water Systems
Replacement Values. Contract number 4011 6891.
		
	 34.
	  	Contract Number 40093267 for the Provision of Fuel Route Support Services at British Energy Stations between BEG, BEG (UK) and Alstec Limited dated July 2003.
		
	 35.
	  	British Energy plc and Eurest Managed Services (A Trading Division of Compass Services (UK) Limited) – Conditions of Contract dated January 2001

  

 23 

			
	 36.
	  	Contracts governed by Nuclear Electric Plc Conditions of Contract for Supply or Repair and Installation of Plant (1992)
		
	 37.
	  	Contracts governed by Conditions for Contract for Minorworks 1997NE/MW/1997
		
	 38.
	  	Contracts governed by Nuclear Electric plc Conditions of Contract for Supply or Repair and Delivery of Plant (1992)
		
	 39.
	  	Contracts governed by BEG Conditions of Purchase 1999
		
	 40.
	  	Contracts governed by Nuclear Electric Ltd General Conditions of Contract for Site Work 1996
		
	 41.
	  	Contracts governed by Nuclear Electric Conditions for Contract 1991 for feasibility studies and prototype design and/ or development
		
	 42.
	  	Contracts governed by Nuclear Electric plc General Conditions of Contract For Site Work 1991
		
	 43.
	  	Contracts governed by Nuclear Electric Conditions of Contract for Supply or Repair and Installation of Plant (1992 – BE – Joint)
		
	 44.
	  	Contracts governed by BEG (UK)—Conditions of Purchase 1999 and 2001
		
	 45.
	  	Contracts governed by General Conditions for Professional Services
		
	 46.
	  	Contracts governed by Conditions of Contract for the Employment of Agency Staff (1997)
		
	 47.
	  	Contracts governed by EB/BEAMA Conditions 1979 (A) – Conditions of Contract for Plant (including erection)
		
	 48.
	  	Contracts governed by EB/BEAMA Conditions 1979 (B) – Conditions of Contract for Plant (without erection).
		
	 49.
	  	Connection Agreement between BEG (UK) and NGC in relation to Hunterston Power Station
		
	 50.
	  	Connection Agreement between BEG (UK) and NGC in relation to Torness Power Station
		
	 51.
	  	Transmission Related Agreement regarding Bid-Price/Offer Price Hedge following failure to comply with restrictions on availability – Hunterston – between BEG (UK) and
NGC
		
	 52.
	  	Transmission Related Agreement regarding Bid-Price/Offer Price Hedge following failure to comply with restrictions on availability – Torness– between BEG (UK) and
NGC
		
	 53.
	  	Connection and Use of System Code Mandatory Service Agreement relating to Hunterston B Power Station – between BEG (UK) and NGC
		
	 54.
	  	Connection and Use of System Code Mandatory Service Agreement relating to Torness Power Station – between BEG (UK) and NGC
		
	 55.
	  	Ancillary Services Agreement for Reactive Power – Torness – between BEG (UK) and NGC dated 7th March 2005

  

 24 

			
	 56.
	  	Bilateral Connection Agreement between BEG (UK) and NGC in relation to Hunterston B Power Station dated 31 March 2005
		
	 57.
	  	Bilateral Connection Agreement between BEG (UK) and NGC in relation to Torness Power Station dated 31 March 2005
		
	 58.
	  	Transmission Related Agreement regarding Bid-Price/Offer Price Hedge following failure to comply with restrictions on availability – Hunterston – between BEG (UK) and NGC dated 31
March 2005
		
	 59.
	  	Transmission Related Agreement regarding Bid-Price/Offer Price Hedge following failure to comply with restrictions on availability – Torness– between BEG (UK) and NGC dated 31 March
2005
		
	 60.
	  	Connection and Use of System Code Mandatory Service Agreement relating to Hunterston B Power Station – between BEG (UK) and NGC dated 10 March 2005
		
	 61.
	  	Connection and Use of System Code Mandatory Service Agreement relating to Torness Power Station – between BEG (UK) and NGC dated 10 March 2005
		
	 62.
	  	Ancillary Services Agreement for Reactive Power – Torness – between BEG (UK) and NGC dated 7 March 2005.
		
	 63.
	  	Agreement to Vary the Bilateral Connection Agreement in relation to Hunterston B Power Station between BEG (UK) and NGC dated 6 June 2005.
		
	 64.
	  	Construction Agreement in respect of Hunterston 400kv between BEG (UK) and NGC dated 6 June 2005.

  

 25 

 Part B 
  
 Contracts governed by the Law of Scotland 
  

			
	 65.
	  	Contract for Remote Operation Services at Hunterston and Torness between BEG (UK) and SP Transmission Limited
		
	 66.
	  	Agreement between SP Power Systems Limited and BEG (UK) re works at Hunterston 400kv sub-station dated 17 May 2005.
		
	 67.
	  	Agreement between BEG (UK) and Magnox relative to the provision of security services at Hunterston dated 27 March 1996 (as amended).
		
	 68.
	  	Agreement between BEG (UK) and Magnox relative to the provision of district survey and boundary monitoring services at Hunterston dated 27 March 1996 (as amended).
		
	 69.
	  	Agreement between BEG (UK) and Magnox relative to the provision of pumping and sewerage treatment services at Hunterston dated 27 March 1996 (as amended).
		
	 70.
	  	Agreement between BEG (UK) and Magnox relative to active effluent treatment and discharge at Hunterston dated 27 March 1996 (as amended).
		
	 71.
	  	Agreement between BEG (UK) and Magnox relative to site access roads at Hunterston dated 27 March 1996 (as amended).
		
	 72.
	  	Agreement between BEG (UK) and Magnox relative to the provision of towns water supplies at Hunterston dated 27 March 1996 (as amended).
		
	 73.
	  	Agreement between BEG (UK) and Magnox relative to the provision of emergency services at Hunterston dated 27 March 1996 (as amended).
		
	 74.
	  	Agreement between BEG (UK) and Magnox relative to the provision of decontamination and first aid services at Hunterston dated 27 March 1996 (as amended)
		
	 75.
	  	Agreement between BEG (UK) and Magnox for the supply and laundering of personal protective equipment formed on the basis of letters from BNFL Environmental Services dated 20 September and 18
November 2002 accepted by BEG(UK) on 27 November 2002 as subsequently amended and extended.

  

 26 

 PART 7 
  
 Conditions of Inter-Company Loan 
  

	1.	REPAYMENT OF THE LOAN 

  

	1.1	The Purchaser undertakes to repay the Loan in one instalment within 3 Business Days of written demand therefor being served on the Purchaser by the Vendor. 

 

	1.2	Repayment of the Loan will be made by telegraphic transfer to such account of the Vendor as the Vendor may notify to the Purchaser for this purpose. 

  

	2.	INTEREST 

  

	2.1	Interest shall accrue on the Loan in respect of each Interest Period at 7.25% per annum (the “Rate”) on the principal amount of the Loan outstanding on the first
day of the Interest Period in question. 

  

	2.2	Interest on the Loan shall be payable, in arrears, on the last Business Day of each Interest Period, save in respect of the First Interest Period (as defined in condition 2.3.1
below). Interest shall be payable in respect of the First Interest Period on the First Business Day following agreement or determination of the Net Book Value in accordance with clause 3.3 of the agreement. 

  

	2.3	The following shall apply for the purposes of determining the duration of each period in respect of which interest shall accrue on the Loan:- 

  

	 	2.3.1 	the first such period (“the First Interest Period”) shall commence on the Completion Date and terminate on the date on which the Net Book Value has been agreed or
determined in accordance with the provisions of clause 3.3 of the agreement; 

  

	 	2.3.2 	the second such period shall commence forthwith on the expiry of the First Interest Period and terminate on the last Business Day of the calendar month next following that in which
the Net Book Value has been agreed or determined in accordance with the provisions in clause 3.3 of the agreement, 

  

	 	2.3.3 	subject to condition 2.3.4, each subsequent period shall last until the last Business Day of the calendar month next following that in which the preceding such period shall have
expired; and 

  

	 	2.3.4	 the last such period shall terminate on the date on which the Loan (or the last outstanding part of it, as the case may be) is repaid. 

  

	2.4	The Purchaser shall deduct any income or other tax required by law to be deducted from each interest payment hereunder. 

  

	2.5	Without prejudice to any other provision of this Part 7, in the event of default by the Purchaser in paying any monies (whether principal or interest) due in respect of the Loan, it
shall pay interest thereon at the rate of 2% per annum above the Rate and that from the date of default until all such monies (and all interest thereon) have been paid in full. 

  

	3.	NO DEDUCTIONS 

  
 All sums payable by the Purchaser hereunder shall be paid in full without any set-off or counterclaim whatsoever and, except to the extent compelled by
law, without any deduction for, or on account of, taxes. 
  

 27 

	4.	NEGATIVE COVENANTS 

  
 The Purchaser covenants with and undertakes to the Vendor that, while the Recoverable Amount or any part thereof remains outstanding, it shall not without
the Vendor’s prior written consent:- 
  

	4.1	make or pay any distribution or dividend on any class of its share capital; 

  

	4.2	redeem or purchase any of its share capital; or 

  

	4.3	reduce its share capital or the amount (if any) for the time being standing to the credit of its share premium account or capital redemption reserve (save, in either such case by
means of a capitalisation issue) in any manner for which the consent of the court would be required pursuant to the Companies Act 1985. 

  

	5.	POSITIVE COVENANTS 

  
 The Purchaser covenants with and undertakes to the Vendor that, while the Recoverable Amount or any part thereof remains outstanding, it shall (save with
the Vendor’s prior written consent):- 
  

	5.1	procure that the Purchaser does not pay any remuneration to its directors or shadow directors or any person associated therewith; 

  

	5.2	maintain in good standing its corporate existence, rights, privileges and franchises and qualify and remain duly qualified to do business and own property; 

 

	5.3	advise the Vendor forthwith of the details of any litigation, arbitration or administrative proceeding pending or threatened against the Purchaser; 

  

	5.4	pay or discharge or cause to be paid or discharged when the same shall become due all taxes imposed upon the Purchaser; 

  

	5.5	promptly notify the Vendor in writing of the occurrence of any Event of Default and/or Potential Event of Default; 

  

	5.6	deliver to the Vendor copies of all notices, circulars and documents despatched to shareholders of the Purchaser (or any class thereof) at the time when the same are despatched to
the shareholders; 

  

	5.7	keep proper books of account and records in which complete and correct entries will be made of all of its business and financial transactions, such entries to be made in accordance
with generally accepted accounting principles consistently applied; and 

  

	5.8	effect and maintain insurance cover in respect of the Properties against loss or damage by fire and/or such other risks as the Vendor may specify from time to time and that for the
full replacement value thereof, exhibit to the Vendor receipts for the insurance premiums paid in respect thereof within 7 days after the commencement date or the due date for renewal of such insurance cover, as appropriate, and, if requested by the
Vendor, procure that the insurance policies are endorsed or noted with reference to the interest of the Vendor.  

  

	6.	REPAYMENT IN CASE OF DEFAULT 

  
 It shall be an event of default if, for whatever reason and whether or not within the control of the Purchaser, any of the following events occur:-

  

	6.1	the Purchaser fails to pay any sum due under this agreement on the date upon which it is payable; 

  

	6.2	there shall be a contravention or breach (other than is provided for in condition 6.1 above) on the part of the Purchaser of any covenant or undertaking contained in this agreement
and, where such breach is capable or remedy, it is not remedied by the Purchaser within 10 Business Days of it being required so to do, in writing, by the Vendor; 

  

 28 

	6.3	the Loan becomes repayable by the Purchaser prior to the due date for payment thereof or is not satisfied or discharged on the due date or within any applicable period of grace or
any security given by the Purchaser is enforced or becomes unenforceable (otherwise than being released or discharged by the security holder); 

  

	6.4	the Purchaser is wound-up or dissolved; 

  

	6.5	a resolution is passed for the winding-up or dissolution of the Purchaser (other than a resolution for the purpose of any reconstruction or amalgamation or a member’s voluntary
winding-up, in each case, in terms previously approved in writing by the Vendor, such approval not to be unreasonably withheld or delayed); 

  

	6.6	a liquidator, trustee, receiver, administrator, administrative receiver or similar officer is appointed over the whole or any material part of the property, assets or undertaking of
the Purchaser; 

  

	6.7	any diligence, distress, execution, sequestration or other process is levied or enforced upon or sued out against the property of the Purchaser and is not discharged, in full,
within 5 Business Days; 

  

	6.8	the Purchaser suspends payment of its debts or is unable or is deemed to be unable to pay its debts (within the meaning of the Insolvency Act 1986 or any statutory modification or
re-enactment thereof); 

  

	6.9	a proposal is made or a nominee or supervisor is appointed for a composition in satisfaction of the debts of the Purchaser or for a scheme of arrangement of the affairs of the
Purchaser or the Purchaser commences negotiations with one or more of its creditors with a view to the general readjustment or rescheduling of all or part of its debts or enters into any composition or other arrangement for the benefit of its
creditors generally or any class of creditors or proceedings are commenced in relation to the Purchaser under any law, regulation or procedure relating to the reconstruction or readjustment of debt; 

  

	6.10	any of the matters referred to in conditions 6.4 to 6.9 above (inclusive) occurs in relation to a holding company of the Purchaser; 

  

	6.11	the Purchaser ceases to carry on its business or substantially the whole of its business; 

  
 in which case, at any time thereafter (and notwithstanding any other provision of this agreement to the contrary), the
Vendor may, in its sole discretion, by notice in writing to the Purchaser:- 
  

	 	(a)	declare the Loan to be immediately due and payable together with all interest, fees and other amounts payable hereunder in respect thereof and, upon such declaration, such sums
shall become immediately due without demand or other notice of any kind, all of which are expressly waived by the Purchaser; and/or 

  

	 	(b)	pursue any and all remedies available to the Vendor in terms of these conditions. 

  

	7.	EXPENSES 

  
 The Purchaser shall reimburse the Vendor, on demand, for all reasonable costs and expenses incurred by it in connection with any variation or amendment of
these conditions, or in enforcing, perfecting, protecting or preserving (or attempting so to do) any of its respective rights hereunder. 
  

	8.	TIME OF THE ESSENCE 

  
 Time is of the essence as regards any date or period mentioned in these conditions. 
  

 29 

	9.	NOTICES 

  

	9.1	Any notice required to be given by the Vendor or the Purchaser to the other shall be deemed validly served if served by:- 

  

	9.2	prepaid registered letter post addressed to the address set out in at the beginning of this agreement or to such other address as may from time to time be notified in writing to it
by the other party for this purpose; or 

  

	9.3	personal delivery by hand to such address; 

  
 and any notice so served shall be deemed to have been served:- 
  

	(a)	in the case of 9.1 above, two Business Days after posting the same; and 

  

	(b)	in the case of 9.2 above, upon delivery. 

  

	10.	GENERAL 

  

	10.1	No waiver by the Vendor of any of the requirements hereof or of any of its rights under these conditions shall be effective unless given in writing and signed by or on behalf of the
Vendor and no forbearance, delay or indulgence by the Vendor in enforcing the provisions of these conditions shall prejudice or restrict the rights of the Vendor. 

  

	10.2	The rights and remedies provided in these conditions are cumulative and not exclusive of any rights or remedies otherwise provided by law. 

  

	10.3	Each provision of these conditions shall be construed separately and (save as otherwise expressly provided herein) none of the provisions hereof shall limit or govern the extent,
application or construction of any other of them and, notwithstanding that any provision of these conditions may prove to be illegal or unenforceable, the remaining provisions of these conditions shall continue in full force and effect.

  

	11.	GOVERNING LAW AND SUBMISSION TO JURISDICTION 

  
 These conditions shall be construed and receive effect in accordance with the Law of Scotland and in so far as not already subject thereto, the Purchaser
and the Vendor submit to the non-exclusive jurisdiction of the Scottish courts. 
  

 30

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