Document:

First Amendment to the Stock Purchase Agreement, dated August 18, 2005

 Exhibit 10.27 
 STOCK PURCHASE AGREEMENT 
 THIS STOCK PURCHASE AGREEMENT (this
“Agreement”) is made effective as of the 30th day of June, 2004 by and among SOUTHERN GRAPHIC SYSTEMS, INC., a corporation duly organized and existing under the laws of the State of Kentucky
(“Buyer”), MOZAIC GROUP LTD., a corporation duly organized and existing under the laws of the State of Missouri (the “Company”), and Mary Ann Gibson, an individual residing in the State of
Florida (“MAG”). 
 This Agreement sets forth the terms and conditions upon which Buyer is purchasing and Company is selling
newly-issued capital stock of the Company consisting of 8,565 shares of Voting Common Stock and 118,400 shares of Non-Voting Common Stock which equal 50.997% of each class of Voting Common Stock and Non-Voting Common Stock, respectively, of the
Company (collectively, the “Shares”). 
 In consideration of, and in reliance on, the mutual agreements, covenants,
representations and warranties contained in this Agreement, Buyer, the Company and MAG agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 As used in this Agreement, the terms
below shall have the following meanings: 
 “Arbitrating Accountant” has the meaning given in Section 9.5(b)(i).

 “Affiliate” means any Person, directly or indirectly, controlling, controlled by, or under common control with, the
Company, Buyer or MAG. Without limiting the generality of the foregoing, a Person is considered to be in control of or to be controlled by another Person if such Person holds 50% or more of the outstanding voting equity interest in such other Person
or such other Person holds 50% or more of its outstanding voting equity interest. 
 “Agreement” has the meaning given
in the introductory paragraph. 
 “Alcoa” means Alcoa Inc., a Pennsylvania corporation. 
 “ASC” means Alcoa Securities Corporation, a Delaware corporation. 
 “ASC Loan” has the meaning given in Section 7.6. 
 “ASC Loan Agreement” has the meaning given in Section 7.6. 
 “Amended and Restated Shareholders’ Agreement” has the meaning given in Section 2.4. 

 “Ancillary Agreements” has the meaning given in Section 3.4. 
 “Balance Sheet” has the meaning given in Section 4.6. 
 “Business” means the business conducted by the Company which includes providing a full-suite of integrated services including
brand architecture, comprehensive design solutions, interactive development, digital photography, imaging, dynamic publishing and workflow tools, large format digital printing, print management and complete outsourced capabilities to execute and
produce direct response TV campaigns. 
 “Business Day” means any day other than Saturday, Sunday and any day which is
a legal holiday or a day on which banking institutions in the United States are authorized by Law or other government action to close. 
 “Buyer” has the meaning given in the introductory paragraph. 
 “Buyer
Indemnitees” has the meaning given in Section 10.1. 
 “Closing” means the taking of the actions
described in Article III of this Agreement. 
 “Closing Date” means 11:59 PM EST on June 30, 2004, or such other
date as may be mutually agreed by the parties in writing. 
 “Closing Date Debt Amount” has the meaning given in
Section 9.5(a). 
 “Closing Date Net Working Capital” has the meaning given in Section 9.5(a). 

“Closing Date Statement” has the meaning given in Section 9.5(b). 
 “Code” means the Internal Revenue Code of 1986, as amended. All references to the Code, or to the Treasury Regulations promulgated
thereunder, shall include any amendments or any substitute or successor provisions thereto. 
 “Company” has the
meaning given in the introductory paragraph. 
 “Company Earn-Out Payment” has the meaning given in
Section 3.5.1(b). 
 “Company IP” has the meaning given in Section 4.13. 
 “Company Shares” has the meaning given in Section 4.1(a). 
 “Confidential Information” has the meaning given in Section 9.2. 
  

 2. 

 “Current Maturities of Lone Term Debt” means, with respect lo long term debt
shown on the Financial Statements, principal payments due within 12 months following the date of the Financial Statements, excluding principal payments on subordinated debt. 
 “Current Maturities of LT Debt” means the same as the foregoing. 
 “DCS Family Investments” has the meaning given in Section 3.2(b). 
 “DCS Real Estate” has the meaning given in Section 8.12. 
 “Dispute Period” has the meaning given in Section 9.5(b). 
 “Dispute” has the meaning given in Section 9.5(b). 
 “EBITDA” shall mean the total revenue of the Company minus (i) the cost of
goods sold and services provided, (ii) general administrative and selling expenses and (iii) research and development expenses. EBITDA will not include the effects of (i) depreciation and amortization, (ii) income taxes, and
(iii) interest income or interest expense. EBITDA will not include income statement impact of Earnouts. The calculation and the amounts of EBITDA’s components will be determined in accordance with Alcoa’s accounting practices for its
operating locations, with such modifications as are reasonably necessary to be consistent with Company’s Projections. Such modifications shall include, but not be limited to, percentage completion accounting for unbilled revenues pertaining to
work-in-process. 
 “Employee Arrangements” has the meaning given in Section 4.19(a). 
 “Employment Agreements” has the meaning given in Section 8.10. 
 “Encumbrances” means any mortgage, covenant, condition, restriction, option, lien (statutory or other), pledge, charge, easement,
right-of-way, security interest, or other right or interest of third parties, but excluding any such Encumbrance as expressly provided in the Amended and Restated Shareholders’ Agreement. 
 “Environmental Condition” means: (i) the past or present release, spill, discharge, dispersal, leaching, emission, disposal or
migration (as defined in any Environmental Law) into the indoor or outdoor environment (including, without limitation, ambient air, surface water, groundwater and surface or subsurface strata) or into or out of any property, and/or contamination
with hazardous wastes, materials or substances, as defined by any applicable Environmental Law, including oil and petroleum products, radioactive, nuclear or source materials; or (ii) injury to health, public safety or the environment relating
to activities of the Company. 
 “Environmental Law” means any and all laws concerning the protection of human health
and the environment which include, but are not limited to, applicable common law, the Comprehensive Environmental Response, Compensation and Liability Act 

  

 3. 

 
(“CERCLA”), 42 U.S.C. §§ 9601 et seq.; the Emergency Planning and Community Right-to-Know Act of 1960, 42 U.S.C.
§§ 13101 et seq.; the Resource Conservation and Recovery Act (“RCRA”), 42 U.S.C. §§ 6901, et seq.; the Federal Water Pollution Control Act, 33 U.S.C. §§ 1251 et seq,;
the Clean Air Act, 42 U.S.C. §§ 7401 et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. §§ 1471 et seq.; the Toxic Substances Control Act, 15 U.S.C. §§ 2601 et seq.;
Federal Insecticide, Fungicide, and Rodenticide Act (“FIFRA”), 7 U.S.C. §§ 136 et seq.; the Occupational Safety and Health Act of 1970 (“OSHA”), 29 U.S.C. §§ 651-678; and the Safe Drinking Water
Act, 42 U.S. §§ 300f through 300j, each, as they have been or will be amended from time to time, and the rules and regulations implementing such statutes or promulgated thereunder together with any and all federal, state, and local
environmental laws, rules, ordinances, regulations or guidance similar or analogous to the above-listed laws. 
 “ERISA” means the Employee Retirement Income Security Act of
1974, as amended. 
 “Financial Statements” has the meaning given in Section 4.6. 
 “GAAP” means generally accepted United States accounting principles. 
 “Hazardous Substances” means any material, substance, chemical or waste that is listed, defined or regulated as hazardous or toxic
under applicable Environmental Law. 
 “Indemnification Agreement” has the meaning given in Section 10.4(d).

 “Indemnified Party” has the meaning given in Section 10.5. 
 “Indemnifying Party” has the meaning given in Section 10.5. 
 “Intellectual Property” means (a) all inventions (whether patentable or unpatentable and whether or not reduced to practice),
all improvements thereon, and all patents, patent applications and patent disclosures, together with all reinsurances, continuation, continuations-in-part, divisions, revisions, extensions and re-examinations thereof, (b) all trademarks,
service marks, trade dress, logos, tradenames, domain names, and corporate names, together with all translations, adaptations, derivations and combinations thereof and including all goodwill associated therewith, and all applications, registrations
and renewals in connection therewith, (c) all copyrights and copyrightable works and all applications, registrations and renewals in connection therewith, (d) all trade secrets and confidential business information (including ideas,
research and development, know-how, formulas, compositions, manufacturing and production processes and techniques, methods, schematics, technology, technical data, designs, drawings, flowcharts, block diagrams, specifications, customer and supplier
lists, pricing and cost information and business and marketing plans and proposals), (e) all computer software (including data and related documentation), (f) all other proprietary rights, (g) all copies and tangible embodiments of any of
the foregoing (in whatever form or medium), and (h) all licenses, sublicenses, agreements or permissions related to any of the foregoing. 
  

 4. 

 “Inventors” has the meaning given in Section 4.13. 
 “Law” means any applicable federal, state, provincial, local or foreign order, writ, injunction, decree, regulation, rule,
ordinance, law, statute or code. 
 “Liability for Tax” has the meaning given in Section 10.1. 
 “Letter of Intent” means that certain Letter of Intent executed by Buyer and Company dated April 14, 2004. 
 “Losses” has the meaning given in Section 10.1. 
 “MAG” has the meaning given in the introductory paragraph. 
 “MAG
Loan” has the meaning given in Section 8.12. 
 “Net Working Capital” means (i) the amount of
“current assets” reflected in the Projections (defined below) as of a given date minus (ii) the amount of “current maturities of LT debt”, “accounts payable”, and “accrued expenses” reflected in the
Projections as of the same date. 
 “Non-Management Shareholders” has the meaning given in Section 3.2(b).

 “Non-Voting Common Stock” means Class B Common Stock. 
 “NPL” has the meaning given in Section 4.25(d). 
 “Permits” has the meaning given in Section 4.14. 
 “Permitted
Exceptions” means (i) those exceptions to title to the assets of the Company listed on Schedule 4.10(b) and (ii) Encumbrances related to the line of credit and long term debt referred in the 12-31-03 Financial
Statements and Projections. 
 “Person” means a natural person, a corporation, a partnership, a limited liability
company, or any other legal entity. 
 “Pre-existing Liabilities” has the meaning given in Section 10.1.

 “Projections” has the meaning given in Section 4.8. 
 “Projected Debt Amount” has the meaning given in Section 9.5(a). 
 “Projected Net Working Capital” has the meaning given in Section 9.5(a). 
  

 5. 

 “Purchase Price” has the meaning given in Section 2.2. 
 “Related Parties” has the meaning given in Section 4.21. 
 “Returns” means all returns, declarations, reports, statements and other documents required to be filed in respect of Taxes, and
any claims for refunds of Taxes, including any amendments or supplements to any of the foregoing. The term “Return” means any one of the foregoing Returns. 
 “Sales” means the total sales of the Company calculated in accordance with Alcoa’s accounting policies, with such modifications as are reasonably necessary to be consistent with
Company’s Projections. 
 “Securities Act” shall mean the Securities Act of 1933, as amended. 
 “Seller Indemnitees” has the meaning given in Section 10.2. 
 “Shares” has the meaning given in the second introductory paragraph. 
 “Shareholder Earn-Out Payment” has the meaning given in Section 3.5.1 (a). 
 “Subsidiaries” mean Mozaic Management, Inc. and 617 Front, Inc. 
 “Tax” or “Taxes” means any federal, state, local, foreign or other taxes including but not limited to
income, corporation, gross receipts, profits, gains, capital stock, franchise, sales, use, transfer, payroll, personal property, real property, occupancy, alternative minimum, estimated or other tax, levy, impost, fee, imposition, assessment or
similar charge, together with any additions to Tax or additional amounts, interest and penalty thereon. 
 “Third Party
Claim” has the meaning given in Section 10.5. 
 “Voting Common Stock” means Class A Common
Stock. 
 “Year 1” has the meaning given in Section 3.5.1 (a)(i). 
 “Year 2” has the meaning given in Section 3.5.1 (a)(ii). 
 “4-30-04 Financial Statements” has the meaning given in Section 4.6. 
 “12-31-03 Financial Statements” has the meaning given in Section 4.6. 
  

 6. 

 ARTICLE II 
 PURCHASE AND SALE OF SHARES 
 2.1 Purchase and Sale of Shares. On the Closing Date, subject to the
terms and conditions of this Agreement, Company will issue and sell to Buyer and Buyer will purchase and acquire from Company, the Shares, free and clear of any and all Encumbrances. This sale and purchase transaction is subject to the conditions
set forth in Article VII and VIII. 
 2.2 Purchase Price. The total purchase price for the Shares will be Two Million Dollars ($2,000,000) (the
“Purchase Price”). At Closing, the Company will apply the Purchase Price amount it receives from Buyer to pay off subordinated debt totaling $2,000,000 in the aggregate (excluding the MAG Loan amount which will not be repaid
at Closing). 
 2.3 Payment of Purchase Price. On the Closing Date, Buyer shall pay the Purchase Price to Company by wire transfer of
immediately available funds to the following Summers, Compton, Wells & Hamburg, P.C. Trust Account for distribution to the subordinated debt holders: 
  

			
	 Name of Bank:
	  	Enterprise Bank, St. Louis, MO
	 Name of Account:
	  	Summers, Compton, Wells & Hamburg, P.C.
		  	Trust Account
	 Routing Number:
	  	ABA # 081006162
	 Account Number:
	  	7003319

 2.4 Shareholder Agreement. Simultaneously with the purchase of the Shares hereunder, Buyer, Company,
and all of the shareholders of the Company will amend and execute an amendment and restatement of the Shareholders’ Agreement dated August 14, 2003, substantially in the form attached hereto as Exhibit A (the “Amended
and Restated Shareholders’ Agreement”). 
 ARTICLE III 
 CLOSING 
 3.1 Time; Location. Subject to the conditions contained herein, the
Closing shall be held on the Closing Date at 9:00 a.m., local time, at the offices of Company’s attorney, Summers, Compton, Hamburg & Wells, 8909 Ladue Road, St. Louis, Missouri 63124, or at such other time and place as the parties
shall agree. 
 3.2 Deliveries by the Company. At the Closing, the Company shall execute and deliver or cause to be executed and delivered the
following: 
  

	 	(a)	Certificates evidencing the Shares, free and clear of any Encumbrances; 

  

	 	(b)	 Releases signed by each of the non-management shareholders identified on Schedule 3.2 (b) (the “Non-Management
Shareholders”) who sold their shares to DCS Family Investments, LLC, a Missouri limited liability company (“DCS 

  

 7. 

	 	 
Family Investments”), controlled by MAG, substantially in the form attached hereto as Exhibit B.

  

	 	(c)	Resignations of the individuals identified on Schedule 3.2(c) as members of the board of directors and as officers of the Company, effective as of the Closing Date;

  

	 	(d)	A resolution of the Company’s board of directors, authorizing the consummation of the transaction contemplated in this Agreement; 

  

	 	(e)	All documents required to be delivered to Buyer pursuant to Article VIII; 

  

	 	(f)	Such additional instruments as Buyer may reasonably require in order to effectively vest title in the Shares. 

  

	 	(g)	A certificate executed by an officer of the Company representing that the representations and warranties of the Company in this Agreement were accurate when made and are accurate in
all respects as of the Closing Date as if made on the Closing Date and that all covenants to be complied with by the Company has been complied with in all material respects; 

  

	 	(h)	Consents authorizing the election of the new board of directors and officers of the Company set forth in the Amended and Restated Shareholders’ Agreement;

  

	 	(i)	An acknowledgment and representation by each shareholder of the Company, substantially in the form attached hereto as Exhibit C. which Buyer is relying upon in
purchasing the Shares pursuant to this Agreement; 

  

	 	(j)	The Indemnification Agreements executed by MAG and her Affiliates; and 

  

	 	(k)	Correct and complete copies of (a) the governing documents (other than the bylaws) of the Company as of a date not more than 10 days prior to the Closing Date, certified by the
Secretary of State of Missouri and the governing documents of the Subsidiaries, certified by the Secretary of the jurisdiction in which the Subsidiaries are incorporated, and (b) the bylaws of the Company and its Subsidiaries as of the Closing Date,
certified by the Company’s Secretary; and 

  

	 	(l)	Certificates of the appropriate public officials dated not more than 10 days prior to the Closing Date to the effect that the (i) Company is a validly existing corporation in
good standing in the State of Missouri and in each jurisdiction listed in Schedule 4.2 and (ii) Each Subsidiary is a validly existing corporation in good standing in the jurisdiction it is incorporated and each jurisdiction listed on Schedule
4.2. 

 3.3 Deliveries by the Buyer. At the Closing, Buyer shall execute and deliver or cause to be executed and delivered the
following: 
  

	 	(a)	All documents required to be delivered to the Company pursuant to Article VII; 

  

	 	(b)	A certificate representing that each of Buyer’s representations and warranties in this Agreement were accurate when made and are accurate in all respects as of the Closing Date
as if made on the Closing Date and that all covenants to be complied with by Buyer have been complied with in all material respects; 

  

	 	(c)	The Purchase Price; 

  

 8. 

	 	(d)	The ASC Loan proceeds in an amount of no more than $3.1 million which amount shall be used to pay off the Company’s line of credit at Enterprise Bank, St. Louis, Missouri;

  

	 	(e)	Consents authorizing the election of the new board of directors and officers of the Company set forth in the Amended and Restated Shareholders’ Agreement; and

  

	 	(f)	The certificate of Directors & Officers Liability Insurance for Company for wrongful acts or loss which occur as of or after the Closing Date. 

 3.4 Other Agreements to be Executed at Closing. At the Closing, the following additional agreements (the “Ancillary Agreements”)
shall also be executed and delivered by the applicable parties: 
  

	 	(a)	The Employment Agreements; 

  

	 	(b)	The Amended and Restated Shareholders’ Agreement; 

  

	 	(c)	The ASC Loan Agreement; and 

  

	 	(d)	MAG Loan documentation. 

 3.5 Earn-Out. 
 3.5.1 Earn-Out Payment. 
 (a)
Shareholder Earn-Out Payment. Buyer agrees to pay to the shareholders of the Company the following earn-out payments (each, a “Shareholder Earn-Out Payment”), if the applicable conditions are satisfied: 
 (i) $600,000 if the Sales equal or exceed $15,000,000 and EBITDA equals or exceeds $3,088,800 for the twelve-calendar month period
beginning on the first day of the month first succeeding the month in which the Closing occurs (“Year 1”); and 
 (ii) $800,000 if the Sales equal or exceed $25,000,000 and EBITDA equals or exceeds $6,682,000 for the twelve-calendar month period beginning on the first anniversary of the first day of Year 1 (“Year
2”). 
 (b) Company Earn-Out Payment. Buyer agrees to pay to the Company an earn-out payment (the “Company
Earn-Out Payment”) of $500,000 if the Sales equal or exceed $25,000,000 and EBITDA equals or exceeds $6,682,000 in Year 2. 
  

 9. 

 (c) Pro-rata. If the Company fails to satisfy the thresholds set forth in 3.5.1 (a)(i),
3.5.1(a)(ii) and/or 3.5.1(b) but Sales are at least 80% or more of the applicable Sales threshold and EBITDA is at least 90% or more of the applicable EBITDA threshold, a portion of the applicable Shareholder Earn-Out Payment or Company Earn-Out
Payment will be paid in an amount equal to the applicable Shareholder Earn-Out Payment or Company Earn-Out Payment multiplied by the percentage that the actual EBITDA is of the threshold EBITDA for such time period. The following are examples of
various calculations: 
 Example 1: 
 If Sales are at least 80% of the applicable Sales threshold and the actual EBITDA equals 95% of the EBITDA threshold in Year 1, then the Shareholder Earn-Out Payment for Year 1 will be $570,000 ($600,000 x 95% =
$570,000). 
 Example 2: 
 If Sales equal 95% of the applicable Sales threshold and the actual EBITDA equals 90% of the EBITDA threshold in Year 1, then the Shareholder Earn-Out Payment for Year 1 will be $540,000 ($600,000 x 90% =$540,000). 
 Example 3: 
 If Sales are at least 80%
of the applicable Sales threshold and the actual EBITDA equals 85% of the EBITDA threshold in Year 1, then there is no Shareholder Earn-Out Payment for Year 1. 
 Example 4: 
 If Sales equal 75% of the applicable Sales threshold and the actual EBITDA equals 90% of
the EBITDA threshold in Year 1, then there is no Shareholder Earn-Out Payment for Year 1. 
 (d) Within 30 days following the last day of the
twelve-calendar month period of the year to which the Shareholder Earn-Out Payment or Company Earn-out Payment relates, the Company will prepare and submit to Buyer a statement of calculation of Sales and EBITDA, certified by the Chief Financial
Officer of the Company as true and correct in all material respects and calculated in accordance with this Agreement. Within 60 days following delivery of the Company’s statement of calculation of the Sales and EBITDA, Buyer will notify the
Company of any objections to the Sales and EBITDA calculations, and the parties will reach agreement with regard to Buyer’s objections to the Sales and EBITDA calculations. During such 60 day period, during regular business hours and with prior
notice, the Company will provide to Buyer, its Affiliates and its independent public accountants access to the financial books and records of the Company (including work papers and all relevant personnel) as may reasonably be required for
preparation of any objections and to confirm compliance with this Section 3.5.1, including without limitation proper calculation of Sales and EBITDA in accordance with this Agreement. For purposes of determining whether the threshold for the
Shareholder Earn-Out Payment and the Company Earn-Out Payment have been met Buyer and MAG will make such adjustments to the calculation of EBITDA as are reasonably appropriate to reflect what the EBITDA would have been had the Company remained an
independent corporation. 
 (e) Each Shareholder Earn-Out Payment and Company Earn-out Payment required to be made pursuant to
Section 3.5.1(a) and (b) will be due and payable within 90 days following the last day of the twelve-calendar month period to which the Shareholder Earn-Out Payment and Company Earn-out Payment relates. Each Shareholder Earn-Out Payment
shall be paid pro rata to the shareholders of the Company (but not including the Buyer) of record as of the last day of the twelve-calendar month period for which the Shareholder Earn-Out Payment is being paid. 

  

 10. 

 
All payments will be made by wire transfer to an account designated in writing by each shareholder of the Company (but not including the Buyer). 

ARTICLE IV 
 REPRESENTATIONS AND
WARRANTIES OF THE COMPANY 
 The Company and MAG, jointly and severally, represents and warrants to Buyer as follows: 
 4.1 Capitalization: Title to Shares: Business. 
 (a) The authorized capital stock of the Company consists solely of (i) 100,000 shares of Voting Company Stock, $.10 par value per share, of which, prior to the issuance of the Shares, 8230 shares are currently issued and outstanding,
(ii) 900,000 shares of Non-Voting Common Stock, $.10 par value per share, of which 113,770 shares are currently issued and outstanding (the “Company Shares”). There are no other shares of capital stock authorized, issued
or outstanding. The Company Shares are owned of record by the shareholders in the amount identified on Schedule 4.1(a). All issued and outstanding capital stock of the Subsidiaries is owned of record by the Company. The Company Shares
and all issued and outstanding capital stock of the Subsidiaries have been duly authorized and validly issued, are fully paid and non assessable. The Company Shares and all issued and outstanding capital stock of the Subsidiaries are, and the
Shares, when issued at Closing will be, free and clear of all Encumbrances. 
 (b) The Shares, when issued at Closing, will represent 50.997%
of the total issued and outstanding shares of each class of Voting Common Stock and Non-Voting Common Stock, respectively. When issued on the Closing Date, the Shares will be duly authorized, validly issued, fully paid and non-assessable.

 (c) Except for those plans and agreements identified on Schedule 4.1(c) and except as expressly provided in the Amended and
Restated Shareholders’ Agreement, there are no outstanding subscriptions, options, warrants, calls or rights of any kind to purchase or otherwise acquire, and no securities convertible into, capital stock of the Company or its Subsidiaries. The
Company Shares have been issued to the shareholders of the Company, and the Shares will at Closing be issued to Buyer, in compliance with all applicable federal and state securities laws. 
 (e) The Company and the Subsidiaries do not conduct any business other than the Business. 
 4.2 Organization, Good Standing and Power. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Missouri, and has all requisite corporate
power and authority to conduct its Business as it is now being conducted, to own or use the properties and assets that it purports to own or use, and to perform its obligations. Each Subsidiary is a corporation duly organized, validly existing and
in good standing under the laws of the jurisdiction in which it is incorporated. Each of the Company and its Subsidiaries is duly qualified to do business as a foreign corporation and is in good standing 

  

 11. 

 
under the laws of each state or other jurisdiction in which either the ownership or use of the properties owned or used by it, or the nature of the
activities conducted by it, requires such qualification, all of such states and jurisdictions being listed on Schedule 4.2. 
 4.3
Authorization of Agreement and Enforceability. The Company and MAG has the power, authority and legal capacity to enter into this Agreement and the Ancillary Agreements to which each is a party and to perform all of their respective
obligations hereunder and thereunder. The Company and MAG have taken all necessary action to authorize the execution and delivery of this Agreement and the Ancillary Agreements, the performance by them of all terms and conditions to be performed by
them, and the consummation of the transactions contemplated hereby and thereby. This Agreement constitutes, and the Ancillary Agreements to which the Company and MAG are to become a party at the Closing, when executed and delivered by the Company
and MAG, shall constitute at the Closing, legal, valid and binding obligations of the Company and MAG, enforceable against them in accordance with their terms, subject to the effect of applicable bankruptcy, insolvency, reorganization, fraudulent
transfer, moratorium or other similar laws affecting rights and remedies of creditors generally and to the exercise of judicial discretion in accordance with general principles of equity (whether applied by a court of law or equity). 
 4.4 No Violation. Except as disclosed on Schedule 4.4, the execution, delivery and performance by the Company and MAG of this Agreement and
the Ancillary Agreements, and the consummation of the transactions contemplated hereby and thereby will not (with or without the giving of notice or the lapse of time, or both) (i) result in a violation of any provision of the bylaws or
articles of incorporation of the Company; (ii) result in a violation of any applicable law, statute, rule, regulation, judicial or administrative order, award, judgment or decree; (iii) contravene, conflict with, result in a breach of, or
a default (or give rise to any right of termination, amendment, cancellation or acceleration) under, any term or provision of any contract, agreement, or instrument to which Company or MAG is a party; (iv) require any filing with, or permit,
authorization, consent or approval of any Person; or (v) result in the creation of any Encumbrance upon the Shares or the assets of the Company, except for the ASC Loan. 
 4.5 Governmental Consents. No consent, approval or authorization of, or declaration, notification, filing or registration with, any United States governmental or regulatory authority is required
to be made or obtained by Company or MAG in connection with the execution, delivery and performance of this Agreement and the Ancillary Agreements and the consummation of the transactions contemplated hereby and thereby. 
 4.6 Financial Statements. The Company has delivered to Buyer true and correct copies of (i) the internal unaudited consolidated balance sheet
of the Company and the Subsidiaries at December 31, 2003, and the related statements of operations and statements of cash flows for the period beginning May 1, 2003 and ending (the “12-31-03 Financial Statements”),
and (ii) the internal unaudited consolidated balance sheet of the Company and the Subsidiaries at April 30, 2004, and the reviewed internal unaudited related income statement and cash flow statement for the fiscal year then ended (the
“4-30-04 Financial Statements”, and, together with the 12-31-03 Financial Statements, the “Financial Statements” ). True and correct copies of such Financial 

  

 12. 

 
Statements are collectively attached hereto as Schedule 4.6. The Financial Statements have been prepared in accordance with GAAP, except for
the 12-31-03 Financial Statements, and the information contained in such Financial Statements is complete and accurate in all material respects, subject to normal fiscal year-end adjustments in the case of the 12-31-03 Financial Statements. The
Financial Statements, including the related notes, present fairly in all material respects the financial position of the Company and the Subsidiaries at the dates indicated and the results of operations and cash flows of the Company and the
Subsidiaries for the periods then ended. Unless the context indicates otherwise, references in this Agreement to “Balance Sheet” shall mean the balance sheet of the Company as of April 30, 2004. 
 4.7 Notes and Accounts Receivable. All notes and accounts receivable were reflected properly on the Balance Sheet and those outstanding as of the Closing
Date are valid receivables for sales actually made or services actually performed by the Company, as the case may be, in the ordinary course of business consistent with past practice for goods sold and delivered or services performed. No portion of
any account receivable is subject to any counterclaim, defense or set-off, or is otherwise in dispute. All notes and accounts receivable outstanding as of the Closing Date are collectible to the best of the knowledge of the Company and MAG in the
ordinary course of business in amounts not less than the aggregate amount thereof. 
 4.8 Financial Projections. Company has delivered to Buyer
financial projections for the year ending December 31, 2004 and December 31, 2005 (the “Projections”), which were made in good faith with a reasonable basis. Such Projections are attached in Schedule
4.8. As of the Closing Date, the Projections shall be deemed to apply to the 24-month period following Closing rather than to calendar years 2004 and 2005 and the Company represents that, as of the Closing Date, there is a good faith
reasonable basis for the Projections as applied to such 24-month period. Company, MAG and SGS acknowledge that the Projections will be deemed to be modified post-closing as appropriate to reflect the fact that the $2,000,000 of subordinated debt has
been paid off at Closing and that the ASC Loan has replaced the Enterprise Bank Credit Line. 
 4.9 Absence of Certain
Changes or Events. 
 4.9.1 Actions Not Taken. Since December 31, 2003, the Company and its Subsidiaries have not:

 (a) Waived any rights under, amended in any material respect or terminated any contract other than in the ordinary course
of the business consistent with past practice; 
 (b) Suffered the occurrence of any events that have had or could have a
material adverse effect on the Company’s operations, assets, liabilities, financial condition or the Business; 
 (c)
Incurred any damage, destruction or casualty having a material adverse effect on the Company’s assets or the Business, whether or not covered by insurance; 
 (d) Sold, transferred, replaced or leased any assets or sold any inventory at a discount, except for transactions in the ordinary course
of the business consistent with past 

  

 13. 

 
practice and except that the Company will enter into additional equipment leases for $100,000 on or before July 30, 2004; 
 (e) Waived or released any material rights with respect to the Company’s assets or the Business; 
 (f) Transferred or granted any proprietary rights; 
 (g) Entered into any transaction or made any commitments other than in the ordinary course of the business consistent with past practice;

 (h) Changed its methods of accounting; 
 (i) Changed the rate of compensation paid to anyone connected with the Business, except for those increases planned in the ordinary course
of business consistent with past practices, or established any new pension or profit-sharing plan, deferred compensation agreement or employee benefit arrangement of any kind; 
 (j) Materially altered its conduct in its relations with suppliers or customers; 
 (k) Declared or paid any dividend or distributions to shareholders or awarded or paid any bonuses to management or employees (other than
salaries payable in the ordinary course of business to Company’s shareholders); 
 (l) Increased the salary, wage or
bonus of any employee of the Company except for a partial reinstatement of wages effective April 1, 2004, that were rolled back with management approval and employee consent in October 2003. The amount of the April wage increase averaged 13%,
and the amount of the October 2003 roll back was approximately 25%; 
 (m) Changed the Projections, the basis for such
Projections, the Business, operations, assets, liabilities or financial condition of the Company, that such change constitutes a material adverse change; and 
 (n) Agreed or committed to do any of the foregoing. 
 4.9.2 Actions Taken. Since December 31, 2005, the Company and its Subsidiaries have: 
 (a)
Operated the Business in the usual, regular and ordinary manner as such Business was operated prior to December 31, 2003 and, to the extent consistent with such operation, used its best efforts to preserve the goodwill of the Business, kept the
Business intact, and preserved its relationships with customers, suppliers and others having business dealings with the Company; and 
  

 14. 

 (b) Billed its customers and paid its suppliers in the usual, regular and ordinary
manner, on a basis consistent with past practice. 
 4.10 Title to Assets; Absence of Encumbrances. Schedule 4.10 ( a) is a
complete and accurate list of the assets of the Company and its Subsidiaries. Except as otherwise disclosed on Schedule 4.10(b) and subject to the Permitted Exceptions, the Company and its Subsidiaries has good and marketable title to,
or, in the case of leased assets, has a valid leasehold interest in, all of the real and personal assets of the Business. All tangible assets and properties are in good operating condition and repair and are usable in the ordinary course of the
business, consistent with past practice and conform to applicable laws relating to their construction, use and operation. The assets listed are sufficient for the continued conduct of the Business after the Closing in substantially the same manner
as conducted prior to the Closing. Except as disclosed on Schedule 4.10(b). all assets are free and clear of all Encumbrances other than Permitted Exceptions. 
 4.11 Contracts and Commitments. A complete and accurate list of all written or oral contracts, agreements and commitments of the Company and its Subsidiaries is identified on Schedule 4.11.
Company has provided Buyer with complete and accurate copies of all written contracts, agreements and commitments and descriptions of all oral contracts, agreements and commitments. The Company and its Subsidiaries are not in breach of any of the
foregoing, and the Company and its Subsidiaries have not waived the future enforceability of any significant rights under any such contract, agreement or commitment. The Company does not have any knowledge that any other party has terminated,
canceled, or substantially modified any such contracts nor threatened to take such actions, and the Company does not have any knowledge that any other party is in default under any such contracts. Other than as disclosed in the Financial Statements,
the Company and its Subsidiaries have paid in full all amounts due under leases and all other written or oral contracts, agreements and commitments. 
 4.12
No Other Agreements. Except as disclosed on Schedule 4.12, there is no outstanding option, right, agreement or other obligation pursuant to which any person or entity could claim a right to acquire in any way all or any
part of, or interest in, the assets or stock of the Company or its Subsidiaries. No person possesses any rights which do or could commit or obligate the Company to issue additional shares of stock or other equity interests in the Company or its
Subsidiaries. 
 4.13 Intellectual Property. Except as disclosed on Schedule 4.13, the Company is the sole owner of, or a
licensee under a valid license for, all items of Intellectual Property which are used in the Business as currently conducted (the “Company IP”). Such items of Company IP that are registrations or applications are listed on
Schedule 4.13, and Schedule 4.13 also indicates those items of Company IP that are owned by, and those items licensed to, the Company. Except as disclosed on Schedule 4.13, (a) the Company, and the Business are not
in default (nor with the giving of notice or lapse of time or both would be in default) under any license or other grant to or from third parties to use any Company IP; (b) to the best of Company’s knowledge, such Company IP is not being
infringed by any third party; (c) there arc no claims pending or, to the best of Company’s knowledge, threatened, that (i) the Business is in violation of, infringing 

  

 15. 

 
upon, or in conflict with any such Intellectual Property rights of any third party, (including any claim that the Company, or the Business must license or
refrain from using any intellectual property rights of third parties) or (ii) challenging the validity, enforceability, or ownership of any Company IP, and (d) the Company and the Business have taken all reasonable action to maintain and
preserve the Company IP, including without limitation making all filings and all payments or all maintenance and similar fees for any Company IP listed on Schedule 4.13, and obtaining valid and effective assignments from employees,
former employees (or persons they currently intend to hire), independent contractors and former independent contractors (collectively, the “Inventors”) of all such Inventors’ rights in any Company IP developed by such
Inventors. The Company owns or possesses adequate licenses or other valid rights to use all items of Intellectual Property utilized in the conduct of the Business in accordance with past practice, free and clear of all liens except Permitted
Exceptions. 
 4.14 Permits. The Company and its Subsidiaries have and are in compliance with all necessary permits, licenses, registrations,
orders, authorizations and approvals of applicable government authorities to operate the Business, including those required under any Environmental Law (collectively, the “Permits”) and there is no proceeding pending or, to
Company’s knowledge, threatened to revoke or limit any Permit and with respect to renewal of any Permit. The Company and its Subsidiaries have made, in a timely manner, all filings, reports, notices and other communications with the appropriate
governmental body, and have otherwise taken, in a timely manner, all other actions, known or anticipated to be required to be taken by the Company, reasonably necessary to secure the renewal of the Permits prior to the date of their respective
expirations. A complete and accurate list of all Permits is set forth on Schedule 4.14. 
 4.15 Compliance with Laws. Except as
disclosed on Schedule 4.15 the Business and operations are being and have been conducted in compliance with all applicable laws, rules, regulations, or ordinances, including workers’ compensation statutes, and all
applicable orders, rules, writs, judgments, injunctions, and decrees. The Company and its Subsidiaries have not received any notice of investigation or request for information or any notice alleging any violation of any applicable laws, rules,
regulations, orders, ordinances, writs, judgments, injunctions, decrees, awards of any court or any governmental instrumentality. The Company has made available to the Buyer copies of all reports, if any, of the Company with respect to the Company
required under the Federal Occupational Safety and Health Act of 1970, as amended, and under all other applicable health and safety regulations. The deficiencies, if any, noted on such reports have been corrected by the Company. 
 4.16 Litigation and Claims. Except as disclosed on Schedule 4.16, there are no civil, criminal or administrative legal actions, suits,
hearings, proceedings, written notices of violation, demands, claims, investigations, arbitrations or other legal administrative or governmental proceedings pending or threatened against the Company, its Subsidiaries, or the Business, and the
Company does not know or has any reasonable grounds to know of any basis for the same. No judgment, decree, injunction, rule or order of any governmental entity or arbitrator is outstanding against the Company, its Subsidiaries, or the Business.

  

 16. 

 4.17 Books and Records. All books of account and other financial records of the Company and its
Subsidiaries are complete and correct in all material respects and have been made available to Buyer. All of the books of account and other financial records have been prepared and maintained in accordance with good business practice and, where
applicable, in conformity with GAAP and in compliance with applicable laws. The books of account, minute books, stock certificate books and stock transfer ledgers of the Company and its Subsidiaries are complete and correct, and there have been no
transactions involving the Company and/or its Subsidiaries which are required to have been set forth therein and which have not been so set forth. 
 4.18
Labor Matters. Schedule 4.18 sets forth a true and correct list of the name, present position and compensation of the employees employed by the Company and its Subsidiaries. Neither the Company nor any of its Subsidiaries
is a party to or bound by any collective bargaining agreement, and there has been no attempt to organize the Company’s or its Subsidiaries’ employees since inception of the Company. There are no strikes or other labor disturbances pending
or threatened involving employees of the Company or its Subsidiaries. No question concerning representation (as such term is used in the context of proceedings before the National Labor Relations Board) exists respecting the employees of the Company
or its Subsidiaries. No grievance nor any arbitration proceeding arising out of or under any collective bargaining agreement of the Company or its Subsidiaries is pending or threatened. Neither the Company nor its Subsidiaries has since its
inception experienced a work stoppage by its employees which work stoppage caused a significant interruption of normal operations. The Company and its Subsidiaries are in compliance with all applicable federal, state and local laws with respect to
discrimination, hours worked by, working conditions of, and payments made to or on behalf of, their respective employees. 
 4.19 Employee Benefit
Plans. 
 (a) Schedule 4.19(a) is a true and complete list of each employee benefit plan, program or practice, whether
or not subject to ERISA, and including all fringe benefits, programs and practices, and any commitment with respect to which the Company or its Subsidiaries has any liability or obligation (an “Employee Arrangement”) relating
to employees or their beneficiaries. The Company has provided to Buyer copies of: (i) each employee benefit plan (ii) Employee Arrangement; (iii) summary plan descriptions; (iv) summary of material modifications; (v) other
employee communications applicable to any such plan or arrangement; and (vi) Form 5500’s since its inception. Except as specifically provided in this Agreement, neither the Company nor any of its Subsidiaries has taken any action that may
result in Buyer being a party to, or bound by, any ERISA plan or Employee Arrangement, and Buyer shall have no liability arising out of or relating to any ERISA plan or Employee Arrangement following the consummation of the transactions contemplated
hereby. No ERISA plan or Employee Arrangement has provided for the payment of retiree benefits, other than benefits payable pursuant to employees’ 401(k) plans. 
 (b) The Company and its Subsidiaries have not incurred (i) any obligation to make any contribution to any “multi-employer plan” as defined in Section 4001 (a) (3) of ERISA or
(ii) any withdrawal liability from any multi-employer plan under Section 4201 of ERISA. The 

  

 17. 

 
Employee Arrangements intended to qualify under Section 401(a) of the Code so qualify and the trusts maintained pursuant thereto are exempt from
federal income taxation under Section 501(a) of the Code, and nothing has occurred with respect to the operation of the Employee Arrangements which could cause the loss of such qualification or exemption or the imposition of any material
liability, penalty, or tax under ERISA or the Code. The Company and its Subsidiaries, and each of the Employee Arrangements are in compliance in all material respects with the applicable provisions of ERISA and other applicable laws. There is no
material violation of ERISA with respect to the filing of any applicable reports, documents, and notices regarding the Employee Arrangements with the Secretary of Labor, the Secretary of the Treasury or any other governmental agency, or the
furnishing of such documents to the participants or beneficiaries of the Employee Arrangements. All contributions required by law to any Employee Arrangement have been made by the Company without regard to any waivers granted under Section 412
of the Code, and there are no accumulated funding deficiencies with respect to any of the plans subject to Section 412 of the Code. All unpaid contributions to all payments due under the Employee Arrangements (except those to be made from a
trust qualified under Section 401(a) of the Code) have been properly accrued and reflected on the Balance Sheet or are disclosed on Schedule 4.19(b). There are no pending actions, claims or lawsuits which have been asserted or
instituted against any of the Employee Arrangements, the assets of any of the trusts or funds under any of such plans or the plan sponsor or the plan administrator of such plans, or against any fiduciary (as defined in Section 3(21) of ERISA)
of the Employee Arrangements with respect to the operation or administration of such Employee Arrangements (other than routine benefit claims), nor does the Company have knowledge of facts which could form the basis for any such action, claim or
lawsuit which could lead to a material claim against Buyer. There are no pending investigations by any governmental agency involving the Employee Arrangements. 
 4.20 Finder. The Company and its Subsidiaries has not taken any action that would give any person or entity a right to a finder’s fee or any type of brokerage commission relating to the transactions contemplated by
this Agreement. 
 4.21 Related Party Transactions. Except as set forth on Schedule 4.21, neither the
Company, its Subsidiaries, nor any of its officers, directors, employees, current or former owners, family members of any current or former owners, Affiliates, or other related party (“Related Parties”), has been involved in
any business transactions, agreements, contracts, or other arrangements for the sale of products or services with Company since its inception. Except as set forth on Schedule 4.21, none of the Related Parties has any claim of any
nature against the Company or its Subsidiaries, and the Company and its Subsidiaries have no claim of any nature against any of the Related Parties. Except as set forth on Schedule 4.21, none of the Related Parties directly or
indirectly owns or is engaged in any business that competes directly or indirectly with the Company or its Subsidiaries. Except pursuant to the employment agreements or employment relationships disclosed on Schedule 4.19(a)(a) none of
the Related Parties will at any time after the Closing for any reason, directly or indirectly be or become entitled to receive any payment or transfer of money or other property of any kind from the Company or its Subsidiaries with respect to facts,
circumstances or events existing or occurring on or before the Closing, and (b) the Company and its Subsidiaries will not at any time after the Closing for any 

  

 18. 

 
reason, directly or indirectly, be or become subject to any obligation to any of the Related Parties with respect to facts, circumstances or events existing
or occurring on or before the Closing. 
 4.22 Debt: Letter of Credit; Powers of Attorney; Guarantees. Except as disclosed on
Schedule 4.22, the Company and its Subsidiaries have no outstanding debt, lines of credit, letters of credit, powers of attorney or guarantees and no Person holds a power of attorney to act on behalf of the Company. 
 4.23 Tax Returns. Except as disclosed on Schedule 4.23, all Tax Returns of the Company and its Subsidiaries required by law to have
been filed have been duly and properly filed for all periods ending on or before the Closing Date, and all Taxes, assessments, fees and other governmental charges which have become due and payable for all periods ending on or before the Closing Date
have been paid in full. All such Tax Returns were correct and complete. The Company and its Subsidiaries have withheld and remitted all amounts required to be withheld and have paid such amounts due to the appropriate authority on a timely basis. No
extension of time within which to file any Return has been requested. There is no investigation or other proceeding pending, threatened or expected to be commenced by any taxing authority for any jurisdiction in which the Company does not file Tax
Returns that may lead to an assertion that the Company or its Subsidiaries is or may be subject to a Tax liability in such jurisdiction. 
 4.24 Tax
Liens. Except as disclosed on Schedule 4.24, there are no liens for Taxes (other than for current Taxes not yet due and payable) upon the assets of the Company or its Subsidiaries. 
 4.25 Environmental Matters. 
 (a) The Company and its Subsidiaries have not received any notice relating to the Business or the leased real property alleging any violation of any Environmental Law, any Environmental Condition or any request for
information pursuant to any Environmental Law. 
 (b) Except as disclosed on Schedule 4.15, to the best knowledge of the
Company , the Company and its Subsidiaries are and have been in compliance with all applicable Environmental Laws, there are no Environmental Conditions relating to the leased real property, and the Company and its Subsidiaries have no liability
with respect to Environmental Conditions at any other site. 
 (c) Schedule 4.25(c) identifies all environmental studies which
the Company has with respect to the leased real property, and true and complete copies of such studies have been delivered to Buyer. 
 (d)
The Company and its Subsidiaries have not been notified that they have been named as a Potentially Responsible Party at a site listed on the National Priorities List (“NPL”), and/or that they transported or disposed of
Hazardous Substances at a site listed on the NPL. 
  

 19. 

 4.26 List of Locations; Real Property. Schedule 4.26 sets forth a complete and
accurate list of each location where the Company and its Subsidiaries leases real property or equipment or where inventory or other assets are located and such Schedule identifies the lease and the parties to the lease. Neither the Company nor any
of its Subsidiaries owns, nor have they ever Owned, real property. Any lease of real property by the Company and its Subsidiaries is in full force and effect, and Company and its Subsidiaries hold a valid and existing leasehold interest under any
such lease. Buyer either has been supplied with, or has been given access to, complete and accurate copies of each of the leases and none of the leases have been modified in any respect. Company is not in default under any such lease, and to the
best of Company’s knowledge, none of the landlords or lessors are in default in any material respect thereunder. To the best of Company’s knowledge, except to the extent set forth on Schedule 4.26, none of the leased real
property or any current use thereof violates any applicable building, zoning or other land-use Law. Except as set forth on Schedule 4.26, all leased real property can in effect be transferred to Buyer by virtue of this Agreement and
used in substantially the same manner after the Closing as before the Closing. Except as set forth on Schedule 4.26, the transactions contemplated by this Agreement do not require the consent of any other party to any lease and will
not result in a breach of or default under any such lease. 
 4.27 No Significant Items Excluded. There are no assets or properties of
the Company, its Subsidiaries, or its Related Parties, or agreements, contracts or commitments to which the Company, its Subsidiaries, or a Related Party is a party that are of significant importance to the ongoing operation of the Business which
have not been included in this transaction or otherwise expressly disclosed to Buyer in this Agreement or in a Schedule hereto. 
 4.28 Absence of
Undisclosed Liabilities. The Company and its Subsidiaries have no liabilities or obligations, secured or unsecured, whether absolute, contingent or otherwise, except; (a) those liabilities and obligations set forth on the 4-30-04
Financial Statements and not heretofore paid or discharged; (b) those liabilities and obligations arising in the ordinary course of business consistent with past practice since April 30, 2004; and (c) the new $100,000 equipment leases.

 4.29 Insurance. Schedule 4.29 contains a complete and correct description of all current surety bonds and policies of property
and casualty insurance, including fire, general and product liability and workers’ compensation, owned, held by or issued on behalf of the Company and its Subsidiaries covering the Business or the assets of the Company and its Subsidiaries. All
such policies and bonds are in full force and effect, all premiums have been paid in full, and no written notice of cancellation has been received with respect to any such insurance or surety bond. The Company and its Subsidiaries are not in default
with respect to any provision contained in the policies and bonds nor have they failed to give any notice or present any material claim under the insurance policies in due and timely fashion. 
 4.30 Certain Payments. Since the Company’s inception, neither the Company nor any of its Subsidiaries, director, officer, agent, or employee of the
Company or any of its Subsidiaries, or any other Person associated with or acting for or on behalf of the Company or its Subsidiaries, has directly or indirectly (a) made any contribution, gift, bribe, rebate, payoff, influence payment, 

  

 20. 

 
kickback, or other payment to any Person, private or public, regardless of form, whether in money, property, or services (i) to obtain favorable
treatment in securing business, (ii) to pay for favorable treatment for business secured, (iii) to obtain special concessions or for special concessions already obtained, for or in respect of the Company or its Subsidiaries, or (iv) in
violation of any applicable legal requirements, or (b) established or maintained any fund or asset that has not been recorded in the books and records of the Company. 
 4.31 Completeness and Accuracy. All information set forth on any Schedule hereto is true, correct and complete. No representation or warranty of the Company contained in this Agreement contains
any untrue statement of material fact, or omits to state any material fact necessary to make the statement made therein not misleading; there is no known fact, development or threatened development that the Company has not disclosed to Buyer that
materially adversely affects or may so affect the Business or the assets of the Company and its Subsidiaries. 
 4.32 Disclosure. None
of the representations or warranties of the Company contained in this Article IV and none of the information contained in the Schedules referred to in Article IV is false or misleading in any material respect or omits to state a fact
necessary to make the statements in this Article IV or in the Schedules to Article IV not misleading in any material respect. It is the explicit intent of the parties that the Company is not making any representation or warranty
whatsoever, express or implied, other than those contained in this Article IV. 
 4.33
Subsidiaries. Except as set forth on Schedule 4.33, the Company has no subsidiaries. 
 4.34 Inventory. The Company’s inventories are saleable and usable in the ordinary course of business. 
 ARTICLE V 
 REPRESENTATIONS AND WARRANTIES OF BUYER 
 Buyer hereby represents and warrants to the Company as follows: 
 5.1 Organization, Good Standing and
Power. Buyer is a corporation duly organized, validly existing and in good standing under the laws of the State of Kentucky, and has all requisite corporate power and authority to execute and deliver this Agreement and the Ancillary
Agreements to which it is a party, to consummate the transactions contemplated hereby and thereby and to perform all the terms and conditions hereof and thereof to be performed by it. 
 5.2 Authorization of Agreement and Enforceability. Buyer has taken all necessary corporate action to authorize the execution and delivery of this Agreement and the Ancillary Agreements, the
performance by it of all terms and conditions to be performed by it, and the consummation of the transactions contemplated hereby and thereby. This Agreement and the 

  

 21. 

 
Ancillary Agreements to which Buyer is a party are the legal, valid and binding obligations of the Buyer enforceable against Bayer in accordance with their
terms. 
 5.3 No Violation. The execution, delivery and performance by Buyer of this Agreement and the Ancillary Agreements, and the
consummation of the transactions contemplated hereby and thereby do not, in the case of this Agreement, and will not, in the case of this Agreement and the Ancillary Agreements, (with or without the giving of notice or the lapse of time, or both)
result in (a) a violation of any provision of the bylaws or articles of incorporation of the Buyer; (b) a violation of any applicable law, statute, rule, regulation, judicial or administrative order, award, judgment or decree; or
(c) a breach of, or a default under, any term or provision of any contract, agreement, or instrument to which Buyer is a party. 
 5.4
Governmental Consents. No consent, approval or authorization of, or declaration, filing or registration with, any United States governmental or regulatory authority is required to be made or obtained by Buyer in connection with the
execution, delivery and performance of this Agreement and the Ancillary Agreements and the consummation of the transactions contemplated hereby and thereby. 
 ARTICLE VI 
 COVENANTS PENDING CLOSING 
 6.1 Covenants of the Company. The Company, as indicated, hereby agree to do or refrain from doing the following, as applicable, from and after the date
hereof to and including the Closing Date: 
 (a) Ordinary Course. The Company shall conduct its Business and the
business of its Subsidiaries in the ordinary course and shall make all reasonable efforts to maintain intact its business and its relationships with employees, suppliers, customers and others. 
 (b) No Amendments. No change or amendment shall be made in the articles of incorporation or bylaws of the Company or its
Subsidiaries. 
 (c) No Capital Changes. The Company and its Subsidiaries shall not issue or sell, or grant options,
warrants or rights to purchase or to subscribe to, or enter into any arrangement or contract with respect to the issuance or sale of, any of its capital stock or any securities or obligations convertible into or exchangeable for any shares of its
capital stock, or make any changes in its capital stock. 
 (d) Dividends and Distributions. The Company and its
Subsidiaries shall not declare, pay or set aside for payment any dividend or other distribution in respect of its capital stock, or redeem, purchase or otherwise acquire any shares of its capital stock. 
 (e) Forbearance by the Company. Except for performance of its obligations under contracts or other instruments or documents listed
in any Schedule hereto in the ordinary course of business (or any similar contracts or other instruments or documents not 

  

 22. 

 
required to be disclosed therein), without the prior written consent of Buyer, neither the Company or its Subsidiaries shall: 
 (i) incur any obligation or liability, direct or indirect, absolute or contingent, other than liabilities incurred in the ordinary course
of business and not otherwise prohibited by this Agreement, or pay any obligation or liability of any kind other than current liabilities and long-term debt as it becomes due in accordance with its terms; 
 (ii) incur any indebtedness for borrowed money, assume, guarantee, endorse or otherwise become responsible for the obligations of any
other individual, firm or corporation, or make any loans or advances to any individual, firm or corporation; 
 (iii)
mortgage, pledge or otherwise encumber or in any way subject to encumbrance any of its properties or assets, except for purchase money security interests incurred in the ordinary course of business; 
 (iv) sell or transfer any of its properties or assets (except for sales of inventory in the ordinary course of business) or cancel,
release or assign any indebtedness owed to it or any claims held by it; 
 (v) make any investment of a capital nature either
by: (i) purchase of stock or securities, contributions to capital, property transfers or otherwise or (ii) purchase of any property or assets of any other individual, firm or corporation; 
 (vi) enter into or terminate any material contract (other than in the ordinary course of business and then only for commitments not in
excess of $20,000 in the aggregate, or make any material amendment or change thereto; 
 (vii) (A) increase, or agree to
increase, the compensation payable or to become payable by it, (B) pay or agree to pay any bonuses, (C) make or agree to make any severance or termination arrangement, or (D) pay or agree to pay any pension, retirement allowance or
benefit not required by any existing plan or agreement or commit itself to any pension, retirement or profit-sharing plan or agreement or any employment agreement; to or with any of its officers, directors or employees, over the rate being paid to
them or accrued for at December 31, 2003; 
 (viii) enter into or amend any employment agreement or savings, retirement,
pension or other benefit plan, except as required by law; 
  

 23. 

 (ix) disclose any proprietary information other than as covered by confidentiality
agreements; 
 (x) make, or agree to make, any changes in its accounting methods or practices; or 
 (xi) enter into any agreement to do any of the things described in clauses (i) through (x) above. 
 (f) Access. The Company and its Subsidiaries shall afford Buyer and its employees, attorneys, accountants, consultants and other
authorized representatives a full opportunity (at Buyer’s expense during regular business hours and subject to reasonable constraints to protect health and safety and minimize business disruption) to examine the books, records and assets of the
Company and its Subsidiaries; to conduct (or have conducted) environmental audits of the properties of the Company and its Subsidiaries; and to meet with the employees of the Company and its Subsidiaries, all so that Buyer may complete its due
diligence investigation. 
 (g) Satisfaction of Conditions. The Company will in good faith take all such action as may
be reasonably necessary or appropriate to cause all of the conditions set forth in Article VII hereof, as applicable, to be satisfied on or before the Closing Date to the extent that the satisfaction of such conditions is reasonably within the
control of the Company. 
 (h) Consents. The Company shall use its best efforts and make every good faith attempt (and
Buyer shall cooperate with the Company) to obtain all consents by third parties that are required for the transactions contemplated hereby or that are required for the consummation of the transactions contemplated hereby, or that are required in
order to prevent a breach of or default under or termination of any material contract. 
 (i) Exclusivity. Neither the
Company, nor any of the Company’s officers, directors, Affiliates or other authorized agents will, directly or indirectly, encourage, solicit, initiate, conduct, engage in or continue discussions or negotiations with, or provide any information
to, any other entity or person interested in acquiring, or arranging for the purchase or sale of, the outstanding shares of the Company or any of its assets (other than sales of inventory in the ordinary course of business). The Company agrees to
disclose to Buyer the existence of any unsolicited proposals received after the date hereof relating to the foregoing transactions and the content thereof as soon as practicable after they take place. 
  

 24. 

 ARTICLE VII 
 CONDITIONS PRECEDENT TO COMPANY’S OBLIGATIONS 
 The obligations of the Company hereunder are
subject, in the discretion of the Company, to the satisfaction, on or prior to the Closing Date, of each of the following conditions: 
 7.1
Representations and Warranties. All representations and warranties of Buyer contained in this Agreement shall have been true when made and shall be true in all material respects at and as of the Closing Date as if such representations
and warranties were made at and as of the Closing Date. 
 7.2 Performance. Buyer shall have performed in all material respects all obligations
and agreements and complied in all material respects with all covenants and conditions required hereby to be performed or complied with by it at or prior to the Closing Date. 
 7.3 Actions and Proceedings. All corporate actions, proceedings, instruments and documents required to carry out the transaction contemplated by this Agreement or incidental thereto and all other related
legal matters shall be reasonably satisfactory to counsel for the Company, and such counsel shall have been furnished with copies of such corporate actions and proceedings and such other instruments and documents as it shall have reasonably
requested. 
 7.4 Consents. Any third party consents, approvals or authorizations necessary and required by Buyer for the transactions
contemplated hereby shall have been obtained by Buyer. 
 7.5 Litigation. No suit, action, investigation, inquiry or other proceeding by any
person or other entity (other than the Company or shareholders of the Company) shall have been instituted or threatened which questions the validity or legality of the transactions contemplated hereby. 
 7.6 ASC Loan. At Closing, Buyer shall cause ASC to issue to the Company an intercompany line of credit (the “ASC Loan”) pursuant to
the terms and conditions set forth in the revolving loan agreement, which shall be in the form attached hereto as Exhibit D (the “ASC Loan Agreement”) and which shall be used at Closing to pay off the
Company’s Enterprise Bank line of credit. 
 7.7 Opinion of Counsel. Company shall have received the favorable opinion of Marilyn Z.
Fayock, counsel for Buyer, reasonably satisfactory to the Company and its counsel as to the matters set forth in Sections 5.1, 5.2, 5.3 and 5.4 hereof. 
 ARTICLE VIII 
 CONDITIONS PRECEDENT TO BUYER’S OBLIGATIONS 
 The obligations of Buyer hereunder are subject, in the discretion of Buyer, to the satisfaction, on or prior to the Closing Date, of each of the
following conditions: 
 8.1 Representations and Warranties. All representations and warranties of the Company contained in this Agreement
shall have been true when made and shall be true in all material respects at and as of the Closing Date as if such representations and warranties were made at and as of the Closing Date. 
  

 25. 

 8.2 Performance. The Company shall have performed in all material respects all obligations and agreements
and complied in all material respects with all covenants and conditions required hereby to be performed or complied with by them at or prior to the Closing Date. 
 8.3 Actions and Proceedings. All corporate actions, proceedings, instruments and documents required to carry out the transactions contemplated by this Agreement or incidental thereto and all other related legal matters shall
be reasonably satisfactory to counsel for Buyer, and such counsel shall have been furnished with copies of such corporate actions and proceedings and such other instruments and documents as it shall have reasonably requested. 
 8.4 Consents. Any third party consents, approvals or authorizations necessary required by Company for the transactions contemplated hereby shall have been
obtained by the Company without cost to Buyer. 
 8.5 Litigation. No suit, action, investigation, inquiry or other proceeding by any person or
other entity (other than Buyer) shall have been instituted or threatened which questions the validity or legality of the transactions contemplated hereby or if successfully asserted may otherwise have a material adverse effect on the conduct of the
business or impose any additional material financial obligation on, or require the surrender of any material right by, Buyer. 
 8.6 No Material
Adverse Change. From December 31, 2003 through the Closing Date, there shall have been no material adverse change, regardless of insurance coverage, in the Business or any of the assets, results of operations, liabilities, prospects or
condition, financial or otherwise, of the Company and its Subsidiaries. 
 8.7 Protections. There shall have been no material adverse change in
the Projections or the basis for such Projections. For purposes of this Section 8.7, the Projections shall be deemed to apply to the twelve-calendar month period for Year 1 and Year 2, respectively, rather than to calendar year 2004 and 2005.

 8.8 Operation in Ordinary Course. From April 14, 2004 through the Closing Date, the Company shall have operated the Business in the
ordinary course of business. From December 31, 2003 through the Closing Date, no dividends or other distributions of the assets of the Company shall have been made to the shareholders of the Company or declared except for (i) salaries,
payable in the ordinary course of business or (ii) as disclosed on Schedule 8.8. 
 8.9 Debt; Encumbrances. 
 (a) All debt owed to the Company or its Subsidiaries by the Company’s or its Subsidiaries’ officers, directors and /or shareholders of the
Company prior to Closing, if any, 

  

 26. 

 
shall have been paid, and Company shall have presented to Buyer such documentation reasonably required by Buyer as evidence of such payment. 
 (b) Evidence of the removal or release of any Encumbrances affecting the Company or its Subsidiaries or any of their respective assets shall have been
delivered to Buyer. 
 8.10 Employment Agreement. The Company shall have entered into (i) a two-year employment agreement with MAG and
William R. Freeman, III and (ii) retain the Patrick J. Bradley and James Alley’s pre-existing employment agreement with the Company (each, an “Employment Agreement”, and collectively, the “Employment
Agreements”). The terms of the Employment Agreements must be satisfactory to Buyer, Company and each employee who is subject to the Employment Agreement. 
 8.11 Non-Management Shares. DCS Family Investments, controlled by MAG shall have acquired all outstanding and issued capital stock of the Company owned of record by the Company’s Non-Management
Shareholders. 
 8.12 The MAG Loan. MAG shall have caused DCS Real Estate, L.L.C., a Missouri limited liability company and a wholly-owned
entity by MAG (“DCS Real Estate”) to execute and deliver an amendment to DCS Real Estate’s pre-existing $500,000 loan to the Company (the “MAG Loan”), providing that the MAG Loan will be
subordinate to the ASC Loan and will bear interest at the same rate as the ASC Loan, and will contain such terms and conditions as are customary in transactions of this type and are reasonably acceptable to the parties. 
 8.13 Budget and Capital Expenditures. The Company and Buyer shall have agreed to the operating and capital expenditures and related budgets for Year 1 and
Year 2, as attached on Schedule 8.13 (see Schedule 4.8). 
 8.14 Opinion of Counsel. Buyer shall have received the favorable
opinion of Summers, Compton, Wells & Hamburg, P.C., counsel for the Company, reasonably satisfactory to Buyer and its counsel as to the matters set forth in Sections 4.1, 4.2, 4.3, 4.4 and 4.5. 
 ARTICLE IX 
 ADDITIONAL COVENANTS

 9.1 Assurances. On and after the Closing Date, the parties will take all appropriate action and execute all documents, instruments or
conveyances of any kind, which may reasonably be necessary or advisable to carry out any of the provisions hereof. 
 9.2 Confidentiality.
Buyer shall continue to be bound by the terms of the Confidentiality Agreement dated August 7, 2003 among the Company, Buyer, MAG, William R. Freeman and Bill Crowley, in accordance with the terms of such agreement. Each other party to this
Agreement agrees that such party will keep confidential and will not, directly or indirectly, disclose, divulge or use for any purpose, any trade secrets, any confidential information, whether written or oral, of the Company and Buyer that is not
generally known to the public, any 

  

 27. 

 
information, whether written or oral, relating to the business or activities of, or belonging to, controlled or possessed by the Company and Buyer, and any
information, whether written or oral, that the Company, MAG, and Buyer have received from each other in the preparation, negotiation, execution and implementation of this Agreement and all Ancillary Agreements (“Confidential Information”),
unless such Confidential Information (a) is known or becomes known to the public in general (other than as a result of a breach of this Section 9.2), (b) was or is lawfully obtained by the receiving party from other sources without a
breach of any obligation of confidentiality such other source may have to the Company or Buyer; and (c) is required by law, governmental or court orders or stock exchange regulations; provided, however, that a party may disclose
Confidential Information to (i) its attorneys, consultants and other professionals to the extent necessary to obtain such third party’s services in connection with consummating the transactions contemplated in this Agreement and the
Ancillary Agreements as long as such third party agrees to be bound by the provisions of this Section 9.2; (ii) to any prospective investor of any of the shares of the Company pursuant to the Amended and Restated Shareholders’
Agreement as long as such prospective investor agrees to be bound by the provisions of this Section 9.2, or (iii) to any Affiliate or wholly owned subsidiary of such party in the ordinary course of business. 
 9.3 Debt. At Closing, the Company agrees to use the ASC Loan to pay off and discharge Company’s existing line of credit with Enterprise Bank.

 9.4 Repayment of MAG Loan. If Company receives the Company Earn-Out Payment then Company shall repay the MAG Loan with the proceeds of such
earn-out payment; provided, however, that the ASC Loan shall have been repaid in full first and the Company can legally pay the MAG Loan without obtaining additional financing. If the MAG Loan cannot be repaid by such means then the Company
shall repay the MAG Loan, after repayment in full of the ASC Loan, with any excess cash flow of the Company that becomes available or as otherwise provided in the Amended and Restated Shareholders’ Agreement or the MAG Loan. 
 9.5 Net Working Capital and Debt. 
 (a) The
Company acknowledges that the amount of the Purchase Price is based on the assumptions that (i) at Closing, the amount of Net Working Capital (“Closing Date Net Working Capital”) will not be less (within a 5% tolerance)
than the amount of Net Working Capital set forth in the Projections (“Projected Net Working Capital”) for the month-end corresponding to, or if the Closing Date does not occur at month-end, nearest to, the Closing Date; and
(ii) at Closing, the total amounts of “LONG TERM DEBT’, “CURRENT MATURITIES OF LT DEBT’ and “LINE OF CREDIT’, respectively (each, a “Closing Date Debt Amount”). will not exceed the
corresponding amount for each of those items as set forth in the Projections (each, a “Projected Debt Amount”) for the month-end corresponding to, or if the Closing Date does not occur at month-end, nearest to, the Closing
Date; provided, that “CURRENT MATURITIES OF LT DEBT” may exceed such corresponding amount by up to $50,000 so long as Net Working Capital falls within the parameters set forth in the preceding clause (i). To the extent that
(A) Closing Date Net Working Capital is less (by more than 5%) than 

  

 28. 

 
Projected Net Working Capital or (B) any Closing Date Debt Amount exceeds the corresponding Projected Debt Amount, then the Company shall pay 51% of the
amount of the shortfall in the case of clause (x) or excess in the case of clause (y), to Buyer, provided that the Company shall make such payments when the Company can legally pay the shortfall without obtaining additional financing.

 (b) Within 30 days following the Closing Date, the Company will prepare and submit to Buyer a statement of calculation of Closing Date Net
Working Capital and each Closing Date Debt Amount (the “Closing Date Statement”) certified by the Chief Financial Officer of the Company as true and correct in all material respects and calculated in accordance with generally
accepted accounting principles, consistent with the financial statements of the Company in prior periods. Within 60 days following delivery of the Closing Date Statement, Buyer will notify the Company of any objections to the calculations, and the
parties will reach agreement with regard to Buyer’s objections. During such 60 day period (the “Dispute Period”), during regular business hours and with prior notice, the Company will provide to Buyer, its Affiliates and
its independent public accountants access to the financial books and records of the Company (including work papers and all relevant personnel) as may reasonably be required for preparation of any objections and to confirm compliance with this
Section 9.5, including without limitation proper calculation of Closing Date Net Working Capital and each Closing Date Debt Amount. Disputes with respect to the Closing Date Statement (a “Dispute”) shall be resolved as
follows: 
 (i) If Buyer and the Company are unable to resolve any Dispute within the Negotiating Period, the parties shall
engage within five days following the end of the Negotiating Period a nationally recognized certified public accounting firm mutually acceptable to Buyer and MAG, who is not rendering (and during the preceding two-year period has not rendered) audit
services in North America to either the Company, shareholders of the Company or Buyer, or their respective Affiliates, to serve as arbitrator (the “Arbitrating Accountant”) to settle such Dispute. In connection with the
resolution of any Dispute, the Arbitrating Accountant shall have access to all documents, records, work papers, facilities and personnel necessary to perform its function as arbitrator. The arbitration before the Arbitrating Accountant shall be
conducted in accordance with the commercial arbitration rules of the American Arbitration Association. The Arbitrating Accountant’s award with respect to any Dispute shall be final and binding upon the parties hereto, and judgment may be
entered on the award. The Company shall pay the fees and expenses of the Arbitrating Accountant with respect to any Dispute if the Dispute is resolved entirely in favor of Buyer. The Buyer shall pay the fees and expenses of the Arbitrating
Accountant with respect to any Dispute if the Dispute is resolved entirely in favor of the Company. In all other cases, each of the Buyer and the Company will pay one-half of such fees and expenses. 
 (ii) Within 5 business days after the Closing Date Statement has been agreed upon pursuant to subsection 9.5(b) or any Dispute has been
resolved 

  

 29. 

 
pursuant to subsection 9.5(b)(i), the Company shall pay to Buyer an amount equal to 51% of the amount of the shortfall (in the case of Closing Date Net
Working Capital) or excess (in the case of Closing Date Debt Amounts), if any. 
 ARTICLE X 
 INDEMNIFICATION; SURVIVAL AND LIMITATIONS 
 10.1
Indemnification by the Company and MAG. The Company and MAG, personally and not as officer or director of the Company, shall subject to the limitations set forth in Sections 10.3, 10.4 and 10.5, jointly and severally, indemnify and
hold Buyer and its officers, directors, employees, agents, and Affiliates (the “Bayer Indemnitees”) harmless from any and all claims, liabilities, losses, damages, costs and expenses, interest, penalties and charges, including
reasonable counsel fees and disbursements (“Losses”) associated with the investigation, contest, defense or settlement of any such Losses arising out of or related to: (i) any breach of any of the representations or
warranties made by the Company in this Agreement; (ii) any default by the Company in respect of any of the covenants or agreements made by the Company in this Agreement; (iii) the operations of the Company or its Subsidiaries or Business
on or prior to the Closing Date and events occurring on or prior to the Closing Date; (iv) Pre-Existing Liabilities (including, without limitation, any claim by a Non-Management Shareholder against the Company); (v) Liabilities for Tax;
and (vi) liabilities of the Company arising under the indemnification provision in Pat Bradley’s employment letter agreement with the Company, dated June 6, 2003 concerning an event that occurred or existed prior to the Closing Date.
In the event that the Buyer Indemnitees have a claim for indemnification under this Section but are precluded from obtaining payment of such claim from MAG due to the limitation contained in Section 10.4(b)(i), Buyer Indemnitees may submit such
claim to the Company and thereafter, in Buyer Indemnitees’ sole discretion, apply amounts that otherwise would be payable to MAG under this Agreement or the Amended and Restated Shareholders’ Agreement (including, without limitation,
Sections 5, 7, 8, 9 and 10 thereof) to purchase her shares in the Company to reimburse the Company for indemnification payments the Company has made to the Buyer Indemnitees. For avoidance of doubt, the Buyer Indemnitees shall not be entitled to a
double recovery with respect to its claims for indemnification pursuant to this Agreement. MAG shall not be entitled to seek contribution from the Company with regard to her indemnification obligations under this Agreement. The indemnification
obligation of MAG under this Section shall extend to her Affiliate, DCS Family Investments or any successor or Permitted Transferee (as defined in the Amended and Restated Shareholders’ Agreement) of such Affiliate. In the event that MAG’s
estate receives proceeds for MAG’s shares in the Company pursuant to this Agreement or the Amended and Restated Shareholders’ Agreement from the Company, SGS or any other shareholder of the Company, or an amount is payable by SGS to
MAG’s estate for MAG’s shares in the Company, MAG’s estate shall succeed to MAG’s indemnification obligation under this Section. MAG with respect to her obligations pursuant to this Section 10.1 has no right to seek any
contribution from or under (i) any Directors & Officers Liability Insurance for the Company or any Company insurance, (ii) any indemnification provision contained in the Company’s by-laws, articles of incorporation or any
other document, or (iii) at law. 
  

 30. 

 For purposes of this Agreement, the following terms will have the following meanings: 
 “Pre-existing Liabilities” shall mean all liabilities of the Company and its Subsidiaries, known or unknown, actual or contingent,
asserted or unasserted, based on or arising out of circumstances or events occurring on or before the Closing Date, except (i) liabilities reflected (and then only to the extent actually reflected or reserved against) in the 4-30-04 Financial
Statements or (ii) liabilities arising in the ordinary course of business (and not in breach of any of the provisions of this Agreement) after the date of the 4-30-04 Financial Statements. 
 “Liability for Tax” shall mean any liability for Tax imposed against or upon the Company or its Subsidiaries or any of the
Company’s or its Subsidiaries’ assets, which has arisen or arises in the future as a result of or in respect of or relating to any act, transaction, omission or event occurring or deemed to occur on or before the Closing Date, or in
respect of income, profits, or gains earned, accrued or received on or before the Closing Date, including, without limitation, liabilities arising from: (i) the failure by the Company or its Subsidiaries to make a payment in respect of any Tax;
(ii) the failure by the Company or its Subsidiaries to obtain or the loss by it of the benefit or repayment of any credit for Tax which has been taken into account by it; (iii) the denial to the Company or its Subsidiaries by a taxing
authority of any Tax relief, allowance or credit in respect of any Tax, any deduction in computing income, profits or gains for the purposes of any Tax, and/or any right to repayment of Tax; and (iv) any liability to repay the whole or any part of
any payment received or receivable by the Company or its Subsidiaries in respect of any Tax refunded to the Company or its Subsidiaries. 
 10.2
Indemnification by Buyer. Buyer shall indemnify and hold MAG and the Company (the “Seller Indemnitees”) harmless from any Losses associated with the investigation, contest, defense or settlement of any such Losses
arising out of or related to: (i) any breach of any of the representations or warranties made by Buyer in this Agreement; and (ii) any default by Buyer in respect of any of the covenants or agreements made by Buyer in this Agreement.

 10.3 Survival of Representations and Warranties. Each of the representations and warranties contained in Articles IV and V will survive the
Closing and remain in full force until the second anniversary of the Closing Date; provided, however, that (i) the representations and warranties set forth in Sections 4.1, 4.2, 4.3, 4.10, 5.1, and 5.2, will survive the Closing and
remain in full force and effect until the expiration of the applicable statute of limitations, (ii) the representations and warranties set forth in Sections 4.23 and 4.24 will survive until 90 days after expiration of the applicable statute of
limitations plus any extensions thereof; and (iii) the representations and warranties set forth in Section 4.25 will survive until the fifth anniversary of the Closing Date. 
 10.4 Limitation of Liability. 
 (a) Neither the Buyer Indemnitees, on the one hand, or the
Seller Indemnitees, on the other, shall be entitled to indemnification pursuant to Section 10.1 or 10.2, as 

  

 31. 

 
applicable, until the aggregate amount of such Losses suffered by Buyer Indemnitees or the Seller Indemnitees, as applicable exceeds $20,000, and then only
to the extent of such excess. Notwithstanding the foregoing, the limitation of liability set forth in this Section 10.4 shall not be applicable to Losses suffered by Buyer Indemnitees’ or Seller’s Indemnitees’ resulting from
fraud or intentional misrepresentation by the Company or MAG, on the one hand, and SGS, on the other hand. 
 (b) The aggregate liability of
MAG in connection with her indemnification obligations under Section 10.1: (i) shall be limited to amounts paid or payable to her by Buyer under this Agreement or the Amended and Restated Shareholders’ Agreement (including, without
limitation, Sections 5, 7, 8, 9 and 10 thereof) to purchase her shares in the Company and (ii) shall in no event exceed the sum of $2,000,000. Notwithstanding the foregoing, the limitation of liability set forth in this Section 10.4 shall
not be applicable to Losses suffered by Buyer Indemnitees’ resulting from fraud or intentional misrepresentation by the Company or MAG. 
 (c) The aggregate liability of MAG and the Company together shall not exceed the sum of $2,000,000. Notwithstanding the foregoing, the limitation of liability set forth in this Section 10.4 shall not be applicable to Losses suffered by
Buyer Indemnitees’ resulting from fraud or intentional misrepresentation by the Company or MAG. 
 (d) MAG shall have no obligation to
indemnify Buyer Indemnitees under Section 10.1(iii) or 10.1(iv) with respect to environmental matters, it being acknowledged that MAG’s Affiliates, DCS Real Estate and Mozaic Realty, LLC, shall indemnify the Buyer Indemnitees against such
matters pursuant to separate indemnification agreements with Buyer for the premises located at 617 Front Street, San Francisco, California, 4141 North East Lakewood Way, Suite 116, Lee’s Summit, Missouri and 5257 Shaw Avenue, St. Louis,
Missouri and the two lots, substantially in the form attached hereto as Exhibit E (the “Indemnification Agreements”). 
 10.5 Indemnification Procedure for Third Party Claims. If any party (the “Indemnified Party”) receives written notice of the commencement of any action or proceeding or the assertion of any claim by a
third party or the imposition of any penalty or assessment against it for which indemnity may be sought under this Article IX (a “Third Party Claim”), and the Indemnified Party intends to seek indemnity pursuant to this
Article IX, the Indemnified Party shall promptly provide the other party (the “Indemnifying Party”) with written notice of such Third Party Claim by notice in the manner provided in Section 11.7 hereof. The Indemnifying
Party shall be entitled to participate in and, at its option and upon acknowledgment of its obligation to indemnify the Indemnified Party, assume the defense or settlement of such Third Party Claim. Such defense or settlement shall be conducted
through counsel selected by the Indemnifying Party and approved by the Indemnified Party, which approval shall not be unreasonably withheld, conditioned, or delayed. The Indemnifying Party shall not settle any Third Party Claim the defense or
settlement of which is controlled by it without the Indemnified Party’s prior written consent, which approval shall not be unreasonably withheld, conditioned, or 

  

 32. 

 
delayed. In the event that the Indemnifying Party fails to assume the defense or settlement of any Third Party Claim within twenty (20) Business Days
after receipt of written notice thereof from the Indemnified Party, the Indemnified Party shall have the right to undertake the defense or settlement of such Third Party Claim at the expense and for the account of the Indemnifying Party. 

ARTICLE XI 
 MISCELLANEOUS

 11.1 Assignment. Neither this Agreement nor any of the rights or obligations hereunder may be assigned by the Company or MAG without the
prior written consent of Buyer, or by Buyer without the prior written consent of the Company. 
 11.2 Taxes. Except as otherwise provided
herein, the Company shall pay all sales, transfer and any other similar Tax or Taxes that are applicable to all transactions contemplated herein. The Company shall be responsible for any income tax, including penalties and interest, which is
applicable to the transactions contemplated herein that is imposed upon the Company by any taxing authority. 
 11.3 Waiver. The waiver by any
party of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach. 
 11.4 Expenses.
Each party will be responsible for its own costs and expenses incurred in connection with the negotiation, preparation, execution or performance of this Agreement. Buyer shall be responsible for any finder’s fee due and owing to William
Crowley. 
 11.5 Headings. The headings of the Articles and Sections herein are inserted for convenience of reference only and are not intended
to be a part of or to affect the meaning or interpretation of this Agreement. 
 11.6 Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 11.7
Notices. Any notice, request, demand, or other communication given under this Agreement shall be in writing and shall be deemed sufficiently given (i) upon the delivery date received by the intended recipient if delivered by hand;
(ii) on the next Business Day when sent by recognized overnight courier; (iii) upon confirmation of transmission when sent by telex, cable, facsimile, telecopier or other similar electronic transmission device; or (iv) 3 days after
deposit in the United States mails, certified mail, return receipt requested, postage paid, addressed to the party to whom it was sent at the address of such party set forth below or at such other address as the party shall subsequently designate to
the other in writing by notice given in accordance with this Section: 
  

					
	 To Buyer:
	 	Southern Graphic Systems, Inc.
		 	626 W. Main Street, Suite 500
		 	Louisville, KY 40202
		 	 Attn:
	  	Hugh M. Williams
		 	 Fax:
	  	502-635-8175
		
	 To the Company:
	 	Mozaic Group, Ltd.
		 	5257 Shaw Avenue, Suite 204
		 	St. Louis, MO 63110
		 	 Attn:
	  	Mary Ann Gibson, CEO
		 	 Fax:
	  	314-664-2689

  

 33. 

 11.8 Severability. If any term, covenant condition or provision of this Agreement or the application
thereof to any circumstance shall be invalid or unenforceable to any extent, the remaining terms, covenants, conditions and provisions of this Agreement shall not be affected thereby and each remaining term, covenant, condition or provision of this
Agreement shall be enforceable to the fullest extent permitted by law. If any provision of this Agreement is so broad as to be unenforceable, then such provision shall be interpreted to be only as broad as is enforceable. 
 11.9 Legend. Each certificate representing the Shares sold pursuant to the provisions hereof will bear the following legend: 
 “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. THE SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE
ABSENCE OF REGISTRATION OR EXEMPTION THEREFROM UNDER SAID ACT OR THE RULES AND REGULATIONS PROMULGATED THEREUNDER. THE SECURITIES REPRESENTED HEREBY ARE FURTHER RESTRICTED BY THE PROVISIONS OF THE AMENDED AND RESTATED SHAREHOLDERS’ AGREEMENT
DATED JUNE 30, 2004, AS IT MAY BE AMENDED FROM TIME TO TIME, A COPY OF WHICH IS ON FILE IN THE OFFICES OF THE COMPANY IN THE STATE OF MISSOURI.” 
 11.10 Choke of Law. This Agreement shall be construed, interpreted and the rights of the parties interpreted in accordance with the laws of the State of Missouri, excluding those relating to choice or conflicts of law.

 11.11 Entire Agreement; Modifications. This Agreement, together with the exhibits hereto, constitutes the entire agreement between the
parties with respect to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of the parties. No supplement, modification or waiver of this Agreement shall be binding
unless executed in writing by the party to be bound thereby. 
 11.12 Public Announcements. Except as required by law or applicable stock
exchange rules, no party to this Agreement shall issue any press release or make any public statement about the transaction contemplated in this Agreement prior to obtaining the written approval of the other party. 
  

 34. 

 ARTICLE XII 
 TERMINATION 
 12.1 Right to Terminate. This Agreement and the transactions contemplated hereby may be
terminated at any time before the Closing by prompt notice given in accordance with Section 11.7: 
 (a) by the mutual written consent
of Buyer and the Company; or 
 (b) by either of Buyer, on the one hand, or the Company, on the other, if the Closing shall not have occurred
at or before 11:59 p.m. on June 30, 2004. 
 12.2 Right to Damages. If this Agreement is terminated under Section 12.1, no party to
this Agreement shall have any liability to the other parties to this Agreement; provided, that no such termination shall relieve any party that has breached any provision of this Agreement before such termination from liability for such breach, and
any such breaching party shall remain fully liable for any and all Losses incurred or suffered by the other parties to this Agreement as a result of such breach. The provisions of this Section and Sections 9.2 and 11.10 shall remain in full force
and effect following any termination of this Agreement under Section 12.1, and each party to this Agreement shall remain fully liable to the others for any and all Losses incurred or suffered by the other parties as a result of a breach of any
such provisions that survive such termination. 
 12.3 Waiver. No party shall be limited to the termination right granted in Section 12.1
by reason of the non-fulfillment of any condition to such party’s closing obligations but may, in the alternative, elect to proceed to close despite the non-fulfillment of any closing condition, it being understood that consummation of the
transactions contemplated hereby shall be deemed a waiver of a breach of any representation, warranty or covenant or of any party’s rights and remedies with respect thereto to the extent that the other party shall, at or before the time of
Closing, receive written notice of such misrepresentation or breach and the Closing shall nonetheless occur. 
 [Signatures on Following Page]

  

 35. 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement, or have caused this Agreement
to be duly executed on their respective behalf by their duty authorized representative, as of the day and year first above written. 
 

 
  

 36. 

 Exhibit A 
 Amended and Restated Shareholders’ Agreement 
 See Amended and Restated Shareholders’
Agreement executed June 30, 2004 
 as part of the Closing. 

 Exhibit B 
 Form of Releases 
 (signed by each of the non-management shareholders identified on
Schedule 3.2 (b) who sold 
 their shares to DCS Family Investments, LLC, a Missouri limited liability company) 

 Agreement to Sell Stock and General Release 
 The undersigned agrees to sell 10 shares of Class A Common and 490 shares of Class B Common, which is all of the stock of Mozaic Group Ltd. owned by the undersigned, for $10,000, a price of $20 per share, to DCS
Family Investments, LLC, an entity controlled by Mary Ann Gibson. The obligation of DCS Family Investments, LLC to purchase the stock is contingent on the closing of the purchase of 51% of Mozaic Group Ltd. by Southern Graphic Systems, Inc. The
closing date for the Southern Graphic Systems, Inc. transaction, which will also be the closing date for the transactions described in this Agreement, will be determined later but is expected to be no later than July 31, 2004. 
 The purchase price will be delivered in cash on the closing date, which will be no later than July 31, 2004. 
 The Subordinated Note of the undersigned in the original principal amount of $50,000 will also be paid in full, including any accrued and unpaid interest, on the closing
date. 
 The purchase price for the stock and the note repayment are directed to be wired into the bank account of the undersigned. The wire instructions are
as follows: 
  

					
	 Bank:
	  	  	  	
			
	 ABA Number:
	  	  	  	
			
	 Account Name:
	  	  	  	
			
	 Account Number: 
	  	  	  	
			
	 Reference:
	  	  	  	

 As partial consideration for the transactions described above, the undersigned hereby releases DCS Family
Investments, LLC and Mozaic Group Ltd. and their managers, officers, agents, or assigns of and from any and all claims, causes of action and demands of any kind, whether at law or in equity, whether known or unknown, relating directly or indirectly
to the ownership and sale by the undersigned of fee stock or the Subordinated Note. This release is effective upon delivery of the full purchase price for the stock and repayment in full of the Subordinated Note. 
  

			
		
	BY:	 	  
		
	BY:	 	  

  

			
	Terms Accepted:
	
	 DCS FAMILY INVESTMENTS, LLC

		
	 BY:
	 	  
		 	 MARY ANN GIBSON, Manager

 Exhibit C 
 Acknowledgment and Representation of Shareholder 
 See Acknowledgement and Representation of
Shareholder executed by 
 each Minority Shareholder as of June 30, 2004 as part of the Closing. 

 Exhibit D 
 ASC Loan Agreement 
 See ASC Loan Agreement executed June 30, 2004 as part of the Closing.Stock Purchase Agreement, dated November 4, 2005

 Exhibit 10.28 
 DATED                      2005 
  

	(1)	OMNIPACK PLC 

  

	(2)	SGS - UK LIMITED 

  

	(3)	DANIEL M. BEJARANO 

  

 AGREEMENT 
  

 For the sale and purchase of the entire issued share capital of MCG Graphics Limited 
 Eversheds LLP 
 1 Callaghan Square 
 Cardiff 
 CF10 5BT 
 Tel +44 (0) 29 2047 1147 
 Fax
+44 (0) 29 2046 4347 

 CONTENTS 
  

					
	 	  	 	  	Page
	 Clause
	  	
			
	 1
	  	INTERPRETATION	  	3
			
	 2
	  	SALE AND PURCHASE	  	11
			
	 3
	  	COMPLETION	  	12
			
	 4
	  	GUARANTEES	  	12
			
	 5
	  	WARRANTIES	  	12
			
	 6
	  	LIMITATIONS ON CLAIMS	  	14
			
	 7
	  	RESTRICTIVE COVENANTS	  	17
			
	 8
	  	DEDUCTIONS AND INDEMNITIES	  	19
			
	 9
	  	ANNOUNCEMENTS	  	20
			
	 10
	  	INTEREST	  	20
			
	 11
	  	NOTICES	  	21
			
	 12
	  	ASSIGNMENT	  	22
			
	 13
	  	GENERAL	  	22
			
	 14
	  	GOVERNING LAW AND JURISDICTION	  	24
			
	 15
	  	COUNTERPARTS	  	24
			
	 16
	  	ENTIRE AGREEMENT	  	24
			
	 17
	  	COSTS	  	24
		
	 Schedules
	  	
			
	 1
	  	The Seller	  	25
			
	 2
	  	Details of the Company	  	26
			
	 3
	  	Non-Taxation Warranties	  	27
			
	 4
	  	Taxation	  	46
			
		  	PART 2 - TAX COVENANT	  	51
			
		  	PART 3 - TAX WARRANTIES	  	64
			
	 5
	  	Completion Arrangements	  	68
			
	 6
	  	MCG Graphics Limited – Property	  	71
			
	 7
	  	Adjustment of Consideration	  	73
			
	 8
	  	PART 1 - PROVISIONS REGARDING RETENTION FUND	  	80
			
		  	PART 2 - PROVISIONS REGARDING SECOND RETENTION FUND	  	82
			
	 9
	  	Limitations on Relevant Claims	  	85
			
	 10
	  	Pension Provisions	  	90

 THIS AGREEMENT is made by way of deed on
                     2005 
 BETWEEN 

 

	(1)	OMNIPACK PLC (registered in England and Wales under number 3147626) whose registered office is at Brettenham House, Lancaster Place, London WC2E 7EN (the “Seller”);

  

	(2)	SGS - UK LIMITED (registered in England and Wales under number 5473088) whose registered office is at 1 Park Row, Leeds, LSI 5AB (the “Buyer”); and

  

	(3)	DANIEL M. BEJARANO of Flat 2, 35-37 Grosvenor Square, London W1K 2HN (“Mr Bejarano”). 

 OPERATIVE CLAUSES 
  

	1.	INTERPRETATION 

 In this Agreement: 
  

	1.1	the following expressions have the following meanings unless inconsistent with the context: 

  

			
	“Accounting Date”	  	31 December 2004
		
	“Accounts”	  	the audited accounts of the Company for the financial year which ended on the Accounting Date, comprising a balance sheet, a profit and loss account, notes, directors’ and auditors’
reports
		
	“Actuary”	  	means the actuary who is currently appointed in respect of the Pension Scheme pursuant to section 47 of the Pensions Act 1995
		
	“Actuary’s Letter”	  	means the letter from Punter Southall & Co to Hewitt Bacon & Woodrow dated on or about the date hereof
		
	“Affiliate”	  	any company which at the relevant time is:
		
		  	 (a)    a holding company of the Buyer; or

  

 3 

			
		
		  	 (b)     a subsidiary or subsidiary undertaking of the Buyer; or

		
		  	 (c)     a subsidiary or subsidiary undertaking of any such holding company (other than the Buyer
itself);

		
		  	the expressions “holding company”, “subsidiary” and “subsidiary undertaking” having the meanings given to them by CA 1985
		
	“Alcoa Affiliate”	  	any company which at the relevant time is:
		
		  	 (a)     Alcoa, Inc.; or

		
		  	 (b)     a holding company of Alcoa, Inc.; or

		
		  	 (c)     a subsidiary or subsidiary undertaking of Alcoa, Inc.; or

		
		  	 (d)     a subsidiary or subsidiary undertaking of any such holding company (other than Alcoa, Inc.
itself);

		
		  	the expressions “holding company”, “subsidiary” and “subsidiary undertaking” having the meanings given to them by CA 1985
		
	“Associated Company”	  	any company, not being the Company, which at the relevant time is:
		
		  	 (e)     a holding company of the Seller; or

		
		  	 (f)      a subsidiary or subsidiary undertaking of the Seller; or

		
		  	 (g)     a subsidiary or subsidiary undertaking of any such holding company (other than the Seller
itself);

		
		  	the expressions “holding company”, “subsidiary” and “subsidiary undertaking” having the meanings given to them by CA 1985

  

 4 

			
		
	“Business Day”	  	any day (other than a Saturday or Sunday or public holiday in England and Wales) on which banks are open in London for normal banking business
		
	“Buyer’s Solicitors”	  	Eversheds LLP of 1 Callaghan Square, Cardiff CF10 5BT
		
	“CA 1985”	  	the Companies Act 1985 (as amended)
		
	“Company”	  	MCG Graphics Limited (details of which are set out in Schedule 2)
		
	“Completion”	  	completion of the sale and purchase of the Shares in accordance with clause 3 on the Completion Date
		
	“Completion Accounts”	  	the completion accounts prepared in accordance with Schedule 7
		
	“Completion Date”	  	the date of this Agreement or such date as the parties hereto shall agree as the date on which Completion occurs
		
	“Computer Systems”	  	all computer hardware, Software, microprocessors and firmware which is used by the Company or is in the possession of the Company
		
	“Consideration”	  	the consideration for the sale and purchase of the Shares as stated in clause 2.2
		
	“Contract”	  	any agreement or commitment (but not including any agreement or commitment relating to the employment or engagement of individuals)
		
	“the Directors”	  	Mr Bejarano, Stefania Dorudottir, Trevor Babb, Richard Jones and Stephen Buxton
		
	“Disclosure Letter”	  	the letter having the same date as this Agreement from the Seller to the Buyer qualifying the Warranties

  

 5 

			
		
	“Encumbrance”	  	any mortgage, charge, pledge, lien, assignment, option, restriction, claim, right of pre-emption, right of first refusal, third party right or interest, other encumbrance or security interest of
any kind, or other preferential arrangement having similar effect
		
	“Environment”	  	any air (including air within natural or man-made structures above or below ground), water (including territorial, coastal and inland waters, ground water and water in drains and sewers) and
land (including surface land, sub-surface land, sea bed and river bed under water) and any living organisms supported by such media
		
	“Environmental Insurance”	  	the insurance in respect of environmental liability from AIG UK Limited in favour of the Company in the agreed form
		
	“Environmental Works”	  	the works to be undertaken following Completion to remediate those matters described in the “Outline Remediation Strategy, MCG Graphics Limited, Hull” prepared by WSP Remediation
Limited and dated 27 October 2005
		
	“FRS17 Accounting Basis”	  	means the FRS17 accounting basis as determined by the Actuary in accordance with the Actuary’s Letter
		
	“FRS17 Deficit”	  	means the difference between the assets and the liabilities of the Pension Scheme calculated on the FRS17 Accounting Basis as at the Pension Completion Date
		
	“Financial Information”	  	the information marked “13 May 2005 Update Financial Information” provided by Mr Bejarano to the Buyer as appended at document C22 to the Disclosure Letter

  

 6 

			
		
	“Hazardous Substance”	  	any matter, whether alone or in combination with any other matter, capable of causing harm to man or any other living organism or damaging to the Environment or public health or welfare,
including radioactive matter, ozone depleting substances, and genetically modified organisms
		
	“ICTA”	  	Income and Corporation Taxes Act 1988
		
	“Initial Consideration”	  	£6,882,725
		
	“Insider”	  	the Seller, any Associated Company, any person who is or was at the relevant time a director of the Company, or any person who is or was at the relevant time connected (as defined in section 839
ICTA) with the Seller, any Associated Company or any such director
		
	“Intellectual Property Rights”	  	all patents, trade marks, copyright, moral rights, rights to prevent passing of, rights in designs, know-how and all other intellectual property rights, in each case whether registered or
unregistered and including applications or rights to apply for the grant of any such rights together with all extensions and renewals of them and all rights or forms of protection having equivalent or similar effect anywhere in the
world
		
	“Management Accounts”	  	the management accounts of the Company in respect of the period from the Accounting Date to 30 September 2005 (copies of which are attached to the Disclosure Letter)
		
	“Material Adverse Change”	  	has any one of the following meanings: (i) a decrease of 10% or more in actual sales or a decrease of 10% or more in actual operating profit for July or August 2005 (or any subsequent month
preceding the Completion Date) as compared to the forecast amount for any such

  

 7 

			
		
		  	month as set forth in the Financial Information; (ii) the actual or threatened loss, communicated to the Company in writing or communicated orally to any one or more of the Directors, of any one
of the following customers, Alcan, Nestle-Purina, Terra Pak or Amcor; (iii) a decrease of 7.5% or more in actual net assets at any month end (beginning on 30 June 2005) preceding or including the Completion Date as compared to the amount of
£1,700,000; (iv) the incurrence, since the Accounting Date, of any actual or contingent liability outside the ordinary course of business of £10,000 or more; (v) the incurrence since the Accounting Date, of any actual or contingent
liability in the ordinary course of business of £50,000 or more except as provided for in the Management Accounts; and (vi) the departure of any one or more of the Directors (other than in accordance with the provisions of this Agreement);
provided that no payments in relation to the Pension Scheme made in accordance with Schedule 10 of this Agreement shall be included in the determination of the abovementioned figures
		
	“Net Assets”	  	the amount of the Net Assets as defined in Schedule 7
		
	“Non-SGS Parties”	  	means all members and actual or potential beneficiaries of the Pension Scheme other than the SGS Parties
		
	“Pension Completion Date”	  	means the Completion Date
		
	“Pension Scheme”	  	means The MCG Graphics Pension Scheme
		
	“Property”	  	the properties described in Schedule 6
		
	“Relevant Claim”	  	any claim for breach of any of the Warranties

  

 8 

			
		
	“Retained Amount”	  	£500,000
		
	“Retention Account”	  	the first joint account to be opened by the Buyer’s Solicitors and the Seller’s Solicitors into which the Retained Amount is paid which shall operate subject to the terms set out in
Part 1 of Schedule 8
		
	“Retention Account Letter”	  	the letter in agreed terms to be signed by the Seller and the Buyer providing instruction to the Buyer’s Solicitors and Seller’s Solicitors for dealing with the Retained Amount and the
Second Retained Amount
		
	“Second Retained Amount”	  	£500,000
		
	“Second Retention Account”	  	the second joint account to be opened by the Buyer’s Solicitors and the Seller’s Solicitors into which the Second Retained Amount is paid which shall operate subject to the terms set
out in Part 2 of Schedule 8
		
	“Seller’s Solicitors”	  	Travers Smith of 10 Snow Hill, London EC1A 2AL (Ref. CGH/NSM)
		
	“September 2005 Revised Forecast”	  	the document entitled “Key Data Forecast Update on 22nd
September” forwarded by Mr. Bejarano to Henry R. Baughman and Benjamin F. Harmon, IV by e-mail dated 22 September 2005 as appended at document C23 to the Disclosure Letter
		
	“SGS Parties”	  	means (a) all employees of the Company who are active members in the Pension Scheme; (b) all employees and former employees of the Company who are deferred members in the Pension Scheme; and (c)
those individuals who are currently pensioners under the Pension Scheme, subject to there being no more than 16 such pensioners. For the avoidance of doubt, the SGS Parties are listed in the SGS Parties List

  

 9 

			
	“SGS Parties List”	  	means the letter from Hewitt Bacon & Woodrow to Punter Southall & Co dated on or about the date hereof
		
	“Shares”	  	all the issued shares in the capital of the Company comprising 400,000 shares of £1.00 each
		
	“Software”	  	means any form of computer program whether in source or object code form
		
	“Stakeholder Scheme”	  	means The MCG Graphics Stakeholder Pension Scheme
		
	“Stock”	  	the raw materials, work in progress and finished goods of the Company
		
	“Tax Covenant Claim”	  	any claim by the Buyer under Part 2 of Schedule 4
		
	“Warranties”	  	the warranties set out in clause 5, Schedule 3 and Part 3 of Schedule 4
		
	“W&I Insurance”	  	the warranty and indemnity insurance policy from AIG UK Limited in favour of the Buyer in the agreed form
		
	“W&I Insurance Retention Exclusion”	  	the exclusion set out in paragraph 4.4 of the W&I Insurance
		
	“W&I Insurance Specific Exclusions”	  	those exclusions set out in paragraph 5 and Appendix A of the W&I Insurance
		
	“W&I Insurance Exclusion Claim”	  	shall have the meaning set out in clause 5.7

  

	1.2	references to a document being “in the agreed terms” are to that document in the form agreed and for the purposes of identification initialled by or on behalf of
the Seller and the Buyer; 

  

	1.3	the singular includes the plural and vice versa; 

  

 10 

	1.4	the headings in this Agreement will not affect its interpretation; 

  

	1.5	any phrase introduced by the term “include”, “including”, “in particular” or any similar expression will be construed as illustrative and will not
limit the sense of the words preceding that term; and 

  

	1.6	save as otherwise stated, where there is reference in this Agreement to the Seller’s awareness or knowledge, information or belief or any similar expression, the Seller shall
be deemed to have knowledge of anything which the Directors have actual knowledge. 

  

	2.	SALE AND PURCHASE 

  

	2.1	The Seller will sell with full title guarantee, and the Buyer will buy, the Shares. The Shares will be sold free of any Encumbrance and with all rights attached or accruing to them
at or after the date of this Agreement. 

  

	2.2	The consideration for the sale of the Shares is £7,882,725 (seven million, eight hundred and eighty-two thousand, seven hundred and twenty-five pounds) plus or minus any
adjustments required to be made in accordance with Schedule 7 (Completion Accounts). 

  

	2.3	The Consideration shall be paid as follows: 

  

	 	2.3.1 	the Initial Consideration shall be paid in cash upon Completion; 

  

	 	2.3.2 	the Retained Amount shall be paid into the Retention Account and paid out in accordance with the terms of the Retention Account Letter and Part 1 of Schedule 8; and

  

	 	2.3.3 	the Second Retained Amount shall be paid into the Second Retention Account and paid out in accordance with the terms of the Retention Account Letter, Part 2 of Schedule 8
and Schedule 10. 

 Any payment required to be made pursuant to Schedule 7 (Completion Accounts) shall be made
in accordance with such Schedule. 
  

	2.4	The payment of the Initial Consideration shall be made by electronic funds transfer to the Seller’s Solicitors’ client account, details of which are set out in
paragraph 3(i) of Schedule 5, or by such other method as may be agreed between the parties. 

  

	2.5	The payment of the Retained Amount shall be made by electronic funds transfer to the Retention Account and shall there be held, subject to the terms of the Retention Account set out
in Part 1 of Schedule 8 and the terms of the Retention Account Letter. 

  

 11 

	2.6	The payment of the Second Retained Amount shall be made by electronic funds transfer to the Second Retention Account and shall there be held, subject to the terms of the Second
Retention Account set out in Part 2 of Schedule 8 and the terms of the Retention Account Letter. 

  

	2.7	The parties agree that the Company and the Buyer shall retain all rights, claims and privileges to all insurance policies, insurance coverage, insurance proceeds and rights to
recovery under all of Company’s insurance policies, including the Seller’s insurance policies, which were or are in effect prior to Completion, to the extent they relate to the business, assets and employees of the Company.

  

	3.	COMPLETION 

  

	3.1	Completion will take place at the offices of the Buyer’s Solicitors on the Completion Date, At Completion, the Seller and the Buyer will comply with the provisions of
Schedule 5. 

  

	3.2	Receipt by the Seller’s Solicitors of the Initial Consideration will be a good and sufficient discharge to the Buyer in respect of such sum and the Buyer will not be further
concerned as to the application of the moneys so received. 

  

	3.3	The Buyer will not be obliged to complete the purchase of any of the Shares unless the purchase of all the Shares is completed simultaneously. 

  

	4.	GUARANTEES 

 The Seller will procure that on
Completion the Company is released from any guarantee, indemnity, counter-indemnity, letter of comfort or other obligation given by the Company to any third party in respect of a liability of any person other than the Company. 
  

	5.	WARRANTIES 

  

	5.1	The Seller warrants to the Buyer in the terms of the Warranties and acknowledges that the Buyer has entered into this Agreement in reliance upon each of the Warranties and the
provisions of Schedule 4. 

  

	5.2	The Warranties are qualified by all circumstances, facts and matters fairly disclosed in the Disclosure Letter. 

  

 12 

	5.3	The Seller waives and may not enforce any right which the Seller may have against the Company, or any director or employee of the Company, on which or on whom the Seller may have
relied in agreeing to any term of this Agreement or any statement in the Disclosure Letter. 

  

	5.4	Each Warranty is to be construed independently and is not limited or restricted by any other Warranty, provided that the only Warranties given in relation to:

  

	 	5.4.1 	Intellectual Property Rights are those Warranties contained in paragraph 12 of Schedule 3; 

  

	 	5.4.2 	Computer Systems are those Warranties contained in paragraph 13 of Schedule 3; 

  

	 	5.4.3 	the Property are those Warranties contained in paragraph 14 of Schedule 3; 

  

	 	5.4.4 	the Environment are those Warranties contained in paragraphs 15 to 20 (inclusive) of Schedule 3; and 

  

	 	5.4.5 	Taxation (as defined in Schedule 4) are those Warranties contained in Part 3 of Schedule 4 and paragraphs 3, 4, 7, 21.10, 22.3.8, 22.4 and 22.5 of
Schedule 3. 

  

	5.5	The Buyer warrants to the Seller and the Seller warrants to the Buyer that it is a limited company incorporated under English law and that it has the right, power and authority, and
has taken all action necessary, to execute, deliver and exercise its rights and performance obligations under this Agreement and that neither the execution nor the performance of this Agreement or any document referred to herein will result in the
breach of, or give rise to, an event of default under, any agreement or arrangement to which it is a party or any legal or administrative requirement by which the Buyer or Seller (as appropriate) is bound. 

  

	5.6	The Buyer warrants to the Seller that it does not currently have awareness of any matter or fact which it knows will entitle the Buyer to make a claim against the Seller for a
breach of Warranty as at today’s date. For this purpose, the Buyer’s “awareness” shall mean the actual knowledge of Benjamin F. Harmon IV, Henry R. Baughman, Michael L. Shannon, Ronald M. Morosky and Mary Ellen Lammel. The Seller
shall not be liable for any claim under the Warranties to the extent that the Buyer is in breach of this Warranty. 

  

 13 

	5.7	Other than in respect of any Relevant Claim or Tax Covenant Claim that arises and falls within one or more of the W&I Insurance Specific Exclusions such that it is thereby
excluded from cover under the W&I Insurance (a “W&I Insurance Exclusion Claim”), the Seller will be under no obligation to pay any moneys in respect of any Relevant Claim or any Tax Covenant Claim other than from any amount
of the Retained Amount remaining at the relevant time in the Retention Account, such payment to be made in accordance with Schedule 8, provided that nothing in this clause 5.7: 

  

	 	5.7.1 	shall have the effect of excluding or limiting the liability of the Seller to the extent that any Relevant Claim arises by reason of any fraud or any dishonest misconduct by the
Seller; or 

  

	 	5.7.2 	for the avoidance of doubt, shall in any way limit the rights of the Buyer under this Agreement to bring a claim against the Seller pursuant to clauses 7 or 8.2 or
paragraphs 3.2 or 8 of Part 1 of Schedule 7 or paragraph 1.3.1 of Schedule 10. 

 For the avoidance of doubt, any Relevant Claim or Tax Covenant Claim that arises and falls within the W&I Insurance Retention Exclusion shall, subject to agreement or determination in accordance with Schedule 8, be paid from any
amount of the Retained Amount remaining at the relevant time in the Retention Account, such payment to be made in accordance with Schedule 8. 
  

	6.	LIMITATIONS ON CLAIMS 

  

	6.1	The Seller will not be liable for any Relevant Claim or a Tax Covenant Claim unless the amount of the Seller’s liability to the Buyer in respect of that Relevant Claim or Tax
Covenant Claim when aggregated with the amount of the liability in respect of all other Relevant Claims and Tax Covenant Claims exceeds £80,000 (eighty thousand pounds) (the “Claim Threshold”). 

  

	6.2	The Seller will not be liable for any Relevant Claim unless the amount of the Seller’s liability to the Buyer in respect of that Relevant Claim or directly related series of
Relevant Claims exceeds £5,000 (five thousand pounds) (the “De Minimis”). No Relevant Claim or directly related series of Relevant Claims in relation to which the Seller would have a liability to the Buyer of less than the De
Minimis shall count towards the Claim Threshold. 

  

	6.3	 The Seller will not be liable for any Relevant Claim or Tax Covenant Claim (as applicable) unless the Seller receives from the Buyer written notice of the Relevant

  

 14 

	 	 
Claim or Tax Covenant Claim as soon as reasonably practicable after the Buyer has become aware that the Relevant Claim or Tax Covenant Claim (as applicable)
has arisen (stating in reasonable detail the nature of the Relevant Claim or Tax Covenant Claim (as applicable), the circumstances giving rise to it and the Buyer’s bona fide reasonable estimate of any alleged loss or in the case of a
Tax Covenant Claim the amount of the claim based on the facts then known to the Buyer): 

  

	 	6.3.1 	before 5.00 p.m. on the date falling 18 months after Completion, in the case of a Relevant Claim for breach of any of the Warranties (other than the Warranties in Part 3 of
Schedule 4); and 

  

	 	6.3.2 	before 5.00 p.m. on the date falling 7 years after Completion, in the case of a breach of any of the Warranties in Part 3 of Schedule 4.

 Any Relevant Claim shall be deemed to be withdrawn (if it has not been previously satisfied, settled or withdrawn) (and no
new claim against the Seller may be made in respect of the facts giving rise to such withdrawn Relevant Claim) unless legal proceedings in respect thereof have been commenced within 6 (six) months of the giving of written notice of the Relevant
Claim or (if relevant) the date on which it has been finally determined that such claim is not a W&I Insurance Exclusion Claim (whichever is the later), and for this purpose such legal proceedings shall not be deemed to have commenced unless
both issued and served. 
  

	6.4	Subject to clauses 6.5, 6.6 and 6.7, the aggregate amount of the liability of the Seller for all Relevant Claims and Tax Covenant Claims will not exceed the monetary
sum held in the Retention Account from time to time. 

  

	6.5	The aggregate liability of the Seller for all W&I Insurance Exclusion Claims shall not exceed £4,000,000 (four million pounds) (including for this purpose the Retained
Amount) less the aggregate amount of the liability of the Seller for all Relevant Claims and Tax Covenant Claims agreed or determined (as such term is defined in Schedule 9) at the time of such claim. 

  

	6.6	The aggregate liability of the Seller for all Relevant Claims and Tax Covenant Claims (including W&I Insurance Exclusion Claims) shall not exceed £4,000,000 (four million
pounds) (including for this purpose the Retained Amount), but this clause shall not increase the liability of the Seller as set out in clause 5.7. 

  

	6.7	 For the avoidance of doubt, if any W&I Insurance Exclusion Claims are agreed or determined (as such term is defined in Schedule 9) such that a liability
of the Seller arises to make a payment to the Buyer, any payment so requiring to be made shall 

  

 15 

	 	 
not be made from the amount standing to the credit at the relevant time of the Retention Account unless at the time of the claim the aggregate amount of all
other Relevant Claims and Tax Covenant Claims together with the relevant W&I Insurance Exclusion Claim and other W&I Insurance Exclusion Claims exceeds £3,500,000 (three and a half million pounds) and then only to the extent of such
excess. 

  

	6.8	For the purposes of calculating the limits set out in clauses 6.5, 6.6 and 6.7, the liability of the Seller shall be deemed to exclude the amount of all costs,
expenses and other liabilities (together with any irrecoverable VAT thereon) payable by the Seller in connection with the satisfaction, settlement or determination of any such claim. 

  

	6.9	The Buyer undertakes to use all its reasonable endeavours to seek recovery under the W&I Insurance in respect of any Relevant Claim or Tax Covenant Claim before bringing
proceedings against the Seller in respect of any such claim UNLESS such claim falls within the W&I Insurance Retention Exclusion. The parties agree to consult with each other in good faith as to what constitutes “all its reasonable
endeavours” for the purpose of this clause 6.9 as soon as practicable following the notification of such Relevant Claim or Tax Claim. 

  

	6.10	For the purposes of calculating Relevant Claims counting towards the Claim Threshold and/or whether any Relevant Claim exceeds the De Minimis: 

  

	 	6.10.1 	there shall be excluded from any Relevant Claim the amount of any costs, expenses and other liabilities (together with any VAT thereon) incurred or to be incurred by or on behalf of
the Buyer and/or the Company in connection with the making of such Relevant Claim; and 

  

	 	6.10.2 	there shall be excluded the amount of any other Relevant Claim in respect of the same fact, matter, event or circumstance giving rise to the same loss (for the avoidance of doubt
this clause 6.10.2 shall not exclude Relevant Claims which are part of a directly related series of Relevant Claims). 

  

	6.11	Any Relevant Claim shall be limited in accordance with Schedule 9, provided that nothing in this clause 6 or Schedule 9 shall have the effect of excluding or
limiting the liability of the Seller to the extent that any Relevant Claim arises by reason of any fraud or any dishonest misconduct by the Seller. 

  

	6.12	The Seller shall not be liable for any breach of the Warranties to the extent that an amount in respect of the loss occasioned by the fact, matter, event or circumstance giving rise
to such breach has been recovered under a Tax Covenant Claim. 

  

 16 

	6.13	Clauses 6.5, 6.6 and 6.7 will not apply in respect of a Relevant Claim concerning paragraph 1.1 to 1.3 (inclusive) of Schedule 3, Schedule 1 and
Schedule 2. 

  

	6.14	The Seller shall not be liable for any claim under the provisions of Part 2 of Schedule 4 to the extent that an amount in respect of the loss occasioned by the fact,
matter, event or circumstance giving rise to such claim has been recovered under the Warranties. 

  

	6.15	For the avoidance of doubt, nothing in this clause 6 shall in any way limit the rights of the Buyer under this Agreement to bring a claim against the Seller pursuant to
clauses 7 or 8.2 or paragraphs 3.2 or 8 of Part 1 of Schedule 7 or paragraph 1.3.1 of Schedule 10. 

  

	7.	RESTRICTIVE COVENANTS 

  

	7.1	In this clause: 

  

					
	“Confidential Information”	  	means all information not publicly known, used in or otherwise relating to the Company’s business, customers, plans, prospects or financial or other affairs
		
	“Relevant Customer”	  	means any person who at any time during the period of 12 (twelve) months immediately preceding Completion was:
			
		  	 (a)    
	  	negotiating with the Company for the supply by the Company of goods or services of a material importance or value to the Company; or
			
		  	 (b)    
	  	a material client or customer of the Company
		
	“Relevant Products or Services”	  	means products or services which are competitive with or of the type supplied by the Company at any time during the period of 12 (twelve) months immediately preceding
Completion.

  

	7.2	 The Seller and Mr Bejarano, severally undertake to the Buyer and the Company that each of the Seller and Mr Bejarano will not and, in respect of the Seller, the
Seller 

  

 17 

	 	 
will procure that no Associated Company will (whether alone or in conjunction with, or on behalf of, another person and whether directly or indirectly),
without the prior written consent of the Buyer: 

  

	 	7.2.1 	for a period of 3 years immediately following Completion, canvass, solicit or approach, or cause to be canvassed, solicited or approached, any Relevant Customer for the sale or
supply of Relevant Products or Services; 

  

	 	7.2.2 	for a period of 3 years immediately following Completion, deal or contract with any Relevant Customer in relation to the sale or supply of Relevant Products or Services;

  

	 	7.2.3 	for a period of 3 years immediately following Completion, interfere, or seek to interfere, with the continuance of supplies to the Company from any supplier who has been supplying
goods or services of a material importance or value to the Company at any time during the 12 months immediately preceding Completion; 

  

	 	7.2.4 	for a period of 3 years immediately following Completion, entice away, or attempt to entice away, from the Company, or employ, any person employed in a managerial, supervisory,
technical or sales capacity by, or who is or was a consultant to, the Company at Completion or at any time during the period of 6 months immediately preceding Completion where the person in question either has Confidential Information or would be in
a position to exploit the Company’s trade connections to the detriment of the Company; 

  

	 	7.2.5 	within the United Kingdom, Sweden, France, Hungary and Ukraine for a period of 3 years immediately following Completion, be engaged, concerned, connected with or interested in
(except as the owner for investment purposes of securities in a company dealt in on a recognised stock exchange and which confer not more than 5 per cent, of the votes which could be cast at a general meeting) any other business which supplies
Relevant Products or Services; and 

  

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

  

 18 

	7.3	The Seller undertakes to the Buyer and the Company and agrees that it will procure that no Associated Company will (whether alone or in conjunction with, or on behalf of, another
person and whether directly or indirectly) at any time after Completion make use of, disclose or cause unauthorised disclosure to any person (except those authorised by the Buyer in writing to know or as required by law or any governmental or
regulatory organisation) of any Confidential Information. 

  

	7.4	Mr Bejarano undertakes to the Buyer and the Company and agrees that he will not (whether alone or in conjunction with, or on behalf of, another person and whether directly or
indirectly) at any time after Completion make use of, disclose or cause unauthorised disclosure to any person (except those authorised by the Buyer in writing to know or as required by law or any governmental or regulatory organisation) of any
Confidential Information. 

  

	7.5	Each of the undertakings set out in this clause 7 is separate and severable and, if any of such undertakings or part of an undertaking is held to be against the public
interest or unlawful, the remaining undertakings or part of the undertakings will continue in full force and effect and will bind the Seller and/or Mr Bejarano (as appropriate). 

  

	8.	DEDUCTIONS AND INDEMNITIES 

  

	8.1	The Consideration shall be reduced by an amount referred to in paragraphs 1.3 and 1.4.3 of Schedule 10 (Pension Provisions). 

  

	8.2	In relation to the Property: 

  

	 	8.2.1 	the parties acknowledge that two leases and one underlease of the property comprising Unit E, Citadel Trading Park, Kingston Upon Hull have been assigned to the Company and a car
park lease at Citadel Trading Park, Kingston Upon Hull from Bonus Electrical Group Limited has been assigned to the Company (the “Hull Transfers”); 

  

	 	8.2.2 	 prior to the date of this Agreement the Seller has paid to the Company an amount equal to the stamp duty land tax and land registry fees payable in relation to the
Hull Transfers. The Seller covenants to pay to the Buyer any further stamp duty land tax, land registry fees and any penalties and interest properly payable in relation to the Hull Transfers and further covenants with the Buyer that the Seller shall
(at its own expense) use its reasonable endeavours to assist the Company in procuring the registration at the Land Registry of the assignments relating to the Hull Transfers (including for the 

  

 19 

	 	 
avoidance of doubt the merger of the lease dated 19 March 1997 between Metal Closures Group Limited and Omnipack plc, the closure of title number
HS274077, the registrations of the variations to the leases dated 9 June 1986 and 1 November 1988 and the first registration of the lease of the car park dated 4 August 1997); 

  

	8.3	The Buyer will procure that the Environmental Works are commenced within 40 Business Days of Completion and are completed as soon as reasonably practicable but in any event no later
than 24 months after the Environmental Works are commenced. Except with the express written consent of the Seller, the Buyer will procure that the Environmental Works are undertaken by WSP Remediation Limited pursuant to the terms of such
firm’s written quotation dated 27 October 2005 and annexed to the Disclosure Letter at document CC4. The Buyer will procure that the appointed firm, on completion of the Environmental Works, will notify in writing the Buyer and the Seller
of such completion and the cost of the Environmental Works. 

  

	8.4	If the amount invoiced (inclusive of any irrecoverable VAT) to the Company or the Buyer by the firm or company which undertakes the Environmental Works is less than £200,000,
the Buyer will pay the difference between the amount so invoiced (inclusive of any irrecoverable VAT) and £200,000, to the Seller’s Solicitors within 5 Business Days of receipt by the Company or the Buyer of the final invoice. The Buyer
and the Seller acknowledge that the amount invoiced may be less than £200,000 because either not all the Environmental Works are found to be necessary and/or because the Environmental Works are able to be completed by the appointed firm more
cheaply than anticipated at the time of the quotation referred to in clause 8.3. 

  

	9.	ANNOUNCEMENTS 

 Save as required by law or, to the
extent relevant, the regulations of any stock exchange or listing authority or the Panel on Takeovers and Mergers or any other governmental or regulatory organisation, no announcement concerning the transactions contemplated by this Agreement will
be made by the Seller except with the prior written approval of the Buyer or by the Buyer except with the prior written approval of the Seller (in each case such consent not to be unreasonably withheld or delayed). 
  

	10.	INTEREST 

 If the Seller becomes liable to pay the
Buyer or the Buyer becomes liable to pay the Seller any sum pursuant to this Agreement (save as expressly provided elsewhere in 

  

 20 

 
this Agreement) whether a liquidated sum or by way of damages or otherwise, the paying party will be liable to pay interest on such sum from the due date for
payment at the annual rate of 1.5 per cent, above the base lending rate from time to time of Barclays Bank PLC, accruing on a daily basis until payment is made, whether before or after any judgment. 
  

	11.	NOTICES 

  

	11.1	Any notice or other communication given in connection with this Agreement will be in writing and will be delivered personally or sent by pre-paid first class post (or air mail if
overseas) or by fax to the recipient’s address set out in this Agreement or to any other address which the recipient has notified in writing to the sender received not less than 7 Business Days before the notice was despatched.

  

			
	For Seller and	  	
	Mr Bejarano:	  	Omnipack PLC
		  	Brettenham House
		  	Lancaster Place
		  	London WC2E 7EN
		  	Fax number: 0870 351 6723
		  	For the attention of: Mr Daniel M. Bejarano
		
	For Buyer:	  	SGS - UK Limited
		  	c/o Southern Graphic Systems, Inc
		  	626 West Main Street
		  	Suite 500
		  	Louisville, Kentucky 40202
		  	USA
		  	Fax number: (502) 634 5298
		  	For the attention of: President

 or such other address for service as may be notified in writing from time to time to the other
parties by the relevant party. 
  

	11.2	A notice or other communication is deemed given: 

  

	 	11.2.1 	if delivered personally, upon delivery at the address provided for in this clause 11; or 

  

	 	11.2.2 	if sent by prepaid first class post, on the second Business Day after posting it; or 

  

 21 

	 	11.2.3 	if sent by air mail, on the sixth Business Day after posting it; or 

  

	 	11.2.4 	if sent by fax, on completion of its transmission 

 provided that, if it is delivered personally or sent by fax on a day which is not a Business Day or after 4.00 p.m. (at the place such notice or communication is delivered or sent to) on a Business Day, it will instead be deemed to have
been given or made on the next Business Day. 
  

	11.3	The provisions of this clause 11 will not apply, in the case of service of court documents, to the extent that such provisions are inconsistent with the Civil Procedure
Rules. 

  

	12.	ASSIGNMENT 

  

	12.1	Neither the Buyer nor the Seller shall assign its rights and obligations under this Agreement without the other party’s prior written consent (which will not be unreasonably
withheld) provided that the Buyer may assign its rights and/or obligations hereunder to a company which is an Alcoa Affiliate without the Seller’s prior consent. If any assignee to whom assignment was made without the Seller’s prior
written consent pursuant to this clause ceases to be an Alcoa Affiliate, the benefit of this Agreement shall forthwith be assigned or be made the subject of a trust in favour of an Alcoa Affiliate. 

  

	12.2	This Agreement will be binding and enure for the benefit of successors in title and (subject to clause 12.1) permitted assigns of each of the parties and references to the
parties will be construed accordingly. 

  

	13.	GENERAL 

  

	13.1	Each party will do, or will use all reasonable endeavours to procure the doing of, all acts and things and execute, or procure the execution of, all documents as are necessary to
give full effect to the terms of this Agreement. 

  

	13.2	Save as otherwise provided by this Agreement, failure or delay by any party in exercising any right or remedy under this Agreement will not in any circumstances operate as a waiver
of it, nor will any single or partial exercise of any right or remedy in any circumstances preclude any other or further exercise of it or the exercise of any other right or remedy. 

  

 22 

	13.3	Any waiver of any breach of, or any default under, any of the terms of this Agreement will not be deemed a waiver of any subsequent breach or default and will in no way affect the
other terms of this Agreement. 

  

	13.4	If a claim is made against the Seller under Part 2 or Part 3 of Schedule 4, the Seller will not plead against such claim the Limitation Act 1980 or any other
statute (present or future) directly or indirectly consolidating, extending, replacing or re-enacting the same, or any other rule of law relating to limitation of time in which an action can be brought or claim made; provided that this clause
13.4 is without prejudice to any express provision of this Agreement regarding time limits for notifying or making claims. 

  

	13.5	The Company has the right to enforce only clause 7 of this Agreement and in accordance with the provisions of the Contracts (Rights of Third Parties) Act 1999. Except as
stated in this clause, the parties to this Agreement do not intend that any of its terms will be enforceable by virtue of the Contracts (Rights of Third Parties) Act 1999 by any person not a party to it. 

  

	13.6	No variation of this Agreement will be valid unless it is in writing and signed by or on behalf of each party to this Agreement but no variation will require the consent of the
Company. 

  

	13.7	Each party acknowledges and agrees that: 

  

	 	13.7.1 	it is not entering into this Agreement on the basis of, and is not relying and has not relied on, any statement or representation or warranty or other provision (in any case whether
oral, written, express or implied) made, given or agreed to by any person (whether a party to this Agreement or not) except as expressly repeated or referred to in this Agreement or the Disclosure Letter; and 

  

	 	13.7.2 	this clause 13.7 shall not apply to any statement, representation or warranty made with gross negligence or fraudulently or to any provision of this Agreement (including, for
the avoidance of doubt, the Warranties) which was induced by gross negligence or fraud for which the remedies shall be all those available under the law governing this Agreement regardless of the other terms of this Agreement.

  

	13.8	This Agreement shall not be construed as creating any partnership or agency relationship between the parties. 

  

 23 

	14.	GOVERNING LAW AND JURISDICTION 

 The formation,
existence, construction, performance, validity and all aspects whatsoever of this Agreement or of any term of this Agreement will be governed by the law of England and Wales. The courts of England and Wales will have exclusive jurisdiction to settle
any dispute which arises out of or in connection with this Agreement. The parties irrevocably agree to submit to that jurisdiction. 
  

	15.	COUNTERPARTS 

 This Agreement may be executed in any
number of counterparts each of which when executed and delivered will be an original, but all the counterparts will together constitute one and the same agreement. 
  

	16.	ENTIRE AGREEMENT 

 This Agreement (together with any
documents referred to herein or required to be entered into pursuant to this Agreement) contains the entire agreement and understanding of the parties and supersedes all prior agreements, understandings or arrangements (both oral and written)
relating to the subject matter of this Agreement and any such document. 
  

	17.	COSTS 

 Except where expressly stated otherwise,
each party to this Agreement will bear its own costs and expenses relating to the negotiation, preparation and implementation of this Agreement. The Company will bear no part of such costs. 
  

 24 

 SCHEDULE 1 
 The Seller 
  

			
	 Name and address of registered and beneficial owner
	  	 Number and class of Shares to be sold

	 OMNIPACK PLC
	  	 400,000 ordinary shares of £1.00 each in

	 Brettenham House
	  	 the capital of the Company.

	 Lancaster Place
	  	
	 London
	  	
	 WC2E 7EN
	  	

  

 25 

 SCHEDULE 2 
 Details of the Company 
  

					
			
	 Name of Company
	  	:	  	MCG Graphics Limited
			
	 Registered number
	  	:	  	00631503
			
	 Registered office
	  	:	  	Citadel Trading Park, Citadel Way, Garrison Road, Hull HU9 1TQ, England
			
	 Date of incorporation
	  	:	  	30 June 1959
			
	 Authorised share capital
	  	:	  	£400,065 divided into 400,000 ordinary shares of £1.00 each and 10,000 deferred shares of US$0.01 each
			
	 Issued share capital
	  	:	  	£400,000 divided into 400,000 ordinary shares of £1.00 each
			
	 Directors’ full names
	  	:	  	Malcolm Trevor Babb
			
		  		  	Daniel Marco Bejarano
			
		  		  	Stephen William Buxton
			
		  		  	Stefania Maria Dorudottir
			
		  		  	Richard Russell Jones
			
	 Secretary’s full name
	  	:	  	Alvis Jean Babb
			
	 Accounting reference date
	  	:	  	31 December
			
	 Mortgages/charges over Shares or Company’s assets
	  	:	  	None

  

 26 

 SCHEDULE 3 
 Non-Taxation Warranties 
  

	1.	Schedules 1 & 2; Capital 

  

	1.1	The information contained in Schedules 1 and 2 is true and accurate in all respects. 

  

	1.2	The Shares are fully paid and are beneficially owned and registered as set out in Schedules 1 and 2 free from any Encumbrance or any claim to, or Contract to grant,
any Encumbrance. 

  

	1.3	The Company has no share capital in issue other than the shares shown in Schedules 1 and 2 as being issued and no Contract has been entered into which requires or may
require the Company to allot or issue any share or loan capital (whether by way of a share option scheme or otherwise). 

  

	1.4	The Company has no interest in the share capital of any body corporate and the Company does not have, and never has had, any subsidiary undertakings (as defined in sections 258 to
260 CA 1985). 

 SELLER 
  

	2.	Insiders’ interests 

  

	2.1	The Company has never entered into any Contract with an Insider (excluding any contract of employment between the Company and any of its directors from time to time).

  

	2.2	No Insider has any interest, direct or indirect, in any trade or business which competes with the Company’s business. 

  

	3.	Information supplied to the Buyer 

  

	3.1	The historical facts and historical information contained within the Financial Information (as modified by the September 2005 Revised Forecast) is accurate in all material respects
and is not misleading in any material respect. 

  

	3.2	 The 2005 budget and the 2006 projections set out in the Financial Information (as modified by the September 2005 Revised Forecast) are based upon historical facts
and the assumptions made in preparing the said budget and projections were, when 

  

 27 

	 	 
made, reasonable and having regard to the information available since such budgets and projections were made, continue to be reasonable at the date of this
Agreement. 

 ACCOUNTS AND RECORDS 
  

	4.	The Accounts 

  

	4.1	The Accounts (a copy of which is attached to the Disclosure Letter): 

  

	 	4.1.1 	comply with the requirements of CA 1985 and have been prepared in accordance with all applicable accounting standards (as that term is defined in section 256 of CA 1985 but
including, where applicable, the International Financial Reporting Standards issued by the International Accounting Standards Board) and (to the extent none are applicable) with accounting principles and practices generally accepted in the United
Kingdom; 

  

	 	4.1.2 	have been prepared on bases and principles which are consistent with those used in the preparation of the audited statutory accounts of the Company for the 3 financial years
immediately preceding that which ended on the Accounting Date; 

  

	 	4.1.3 	show a true and fair view of the assets, liabilities and state of affairs of the Company as at the Accounting Date and of the profits (or losses) of the Company for the financial
year ending on that date; and 

  

	 	4.1.4 	are not affected (except as disclosed in the Accounts) by any extraordinary or exceptional event, circumstance or item. 

  

	4.2	The Company’s accounting records are up to date and contain complete and accurate financial details relevant to the preparation of accounts of all transactions of the Company
and comply with the provisions of sections 221 and 222 CA 1985. The Company’s accounting records and accounting information are exclusively owned by it or are under its control. 

  

	5.	Profits or Losses and Net Assets 

 The profits or
losses and the value of net assets of the Company for the three consecutive financial years ended on the Accounting Date as shown by the Accounts have not (except as disclosed in those accounts) been affected to a material extent by the inclusion of
non-recurring items of income or expenditure or by transactions entered into otherwise than on normal commercial terms so as to render such profit or losses or net assets for any of such periods exceptionally high or low. 
  

 28 

	6.	Management accounts 

  

	6.1	The Management Accounts have been prepared in accordance with accounting principles generally accepted in the United Kingdom and on bases consistent with those used in the
preparation of the previous management accounts of the Company. 

  

	6.2	Except as fairly disclosed in the Disclosure Letter, such Management Accounts: 

  

	 	6.2.1 	are not misleading in any material respect in respect of the periods to which they relate; and 

  

	 	6.2.2 	show with reasonable accuracy the state of affairs of the Company in respect of the periods to which they relate. 

 CHANGES SINCE THE ACCOUNTING DATE 
  

	7.	Since the Accounting Date: 

  

	7.1	the business of the Company has been carried on in the ordinary and usual course and in materially the same manner (including nature and scope) as in the 12 months preceding the
Accounting Date; 

  

	7.2	there has been no Material Adverse Change; 

  

	7.3	the Company has not acquired, or agreed to acquire, any single fixed asset having a value in excess of £10,000 or fixed assets having an aggregate value in excess of
£50,000 (except as fairly disclosed in the Management Accounts) and fully paid for before Completion (or, if not fully paid for, reflected in the Management Accounts as accounts payable); 

  

	7.4	the Company has not disposed of, or agreed to dispose of, any asset (excluding Stock disposed of in the ordinary and usual course of business) having a value reflected in the
Accounts in excess of £20,000 or acquired since the Accounting Date and having a value reflected in the Management Accounts in excess of £20,000; 

  

	7.5	the Company has not other than in the ordinary course of business borrowed or raised any money or taken up any financial facilities in excess of £10,000 nor repaid any
borrowing or indebtedness in excess of £10,000 in advance of its stated maturity; 

  

	7.6	no dividend or other payment which is, or could be treated as, a distribution for the purposes of Part VI ICTA or section 418 ICTA has been declared, paid or made by the Company;

  

 29 

	7.7	no resolution of the shareholders of the Company has been passed; 

  

	7.8	the Company has not, other than in the ordinary course of business, assumed or incurred, or agreed to assume or incur, a liability, obligation or expense (actual or contingent) for
a value in excess of £10,000; 

  

	7.9	no management or similar charge has become payable or been paid by the Company; and 

  

	7.10	no payment has been made by the Company to, or benefit conferred (directly or indirectly) by the Company on, any Insider. 

 ASSETS 
  

	8.	Unencumbered title; possession 

  

	8.1	Each asset: 

  

	 	8.1.1 	included in the Accounts; or 

  

	 	8.1.2 	with a replacement value in excess of £1,000 which has been acquired by the Company since the Accounting Date (save for Stock disposed of in the ordinary course of business);
or 

  

	 	8.1.3 	with a replacement value in excess of £1,000 which is otherwise used by the Company, 

 is legally and beneficially owned by the Company free from any Encumbrance or any claim to, or Contract to grant, any Encumbrance. 
  

	8.2	Each material asset of the Company is situated at the Property. 

  

	9.	Debtors 

 The Company has not factored or discounted
any debt included in the Accounts or the Management Accounts or agreed to do so. All of the debts which are reflected in the Accounts as owing to the Company or which have subsequently been recorded in the Management Accounts of the Company (apart
from, in each case, bad and doubtful debts to the extent to which they have been provided for in the Accounts or such Management Accounts) or which have subsequently been recorded in the books of the Company have realised or, in respect of debts
falling due after the date hereof, will, so far as the Seller is aware, realise in the normal course of collection their full value as included in the Accounts, or in the Management Accounts or as 

  

 30 

 
subsequently recorded in the books for the Company, and no such debt nor any part of it has been outstanding for more than three months from its due date for
payment. 
  

	10.	Stock 

  

	10.1	The Stock now held by the Company and not written off in the Accounts or the Management Accounts: 

  

	 	10.1.1 	is not obsolete, slow moving or likely to realise less than its book value; and 

  

	 	10.1.2 	is fit for its intended purpose and of satisfactory quality and accords with any representation or contractual term, express or implied, which has been given, or which would in the
normal course of its business be given, by the Company in respect of it. 

  

	11.	Plant etc. 

 The plant and machinery, vehicles,
fixtures and fittings, furniture, tools and other equipment used by the Company for the purposes of the business of the Company so far as the Seller is aware are in satisfactory working order and are capable of being used for the purposes for which
they are currently being used by the Company. 
  

	12.	Intellectual Property Rights 

  

	12.1	The Company has no interest in, or use of, any Intellectual Property Rights (whether registered or not) save for the Intellectual Property Rights details of which are given in the
Disclosure Letter, all of which are (where applicable) registered in the name of the Company and are legally and beneficially owned by the Company free from any Encumbrance. 

  

	12.2	The Company’s Intellectual Property Rights are valid, subsisting and enforceable. 

  

	12.3	The Seller has not received written notice that there are any proceedings, actions or claims in existence or pending or threatened, impugning the title, validity or enforceability
of the Company’s Intellectual Property Rights or claiming any right or interest in the Company’s Intellectual Property Rights and so far as the Seller is aware none is threatened. 

  

	12.4	The processes employed and the products and services dealt in by the Company do not use, embody or infringe any Intellectual Property Rights (whether registered or not) (other than
off-the-shelf Software) vested in any other party and do not give rise (contingently or otherwise) to payment by the Company of any royalty or any similar payment. 

  

 31 

	12.5	So far as the Seller is aware, there is, and has been, no infringement of the Company’s Intellectual Property Rights and, so far as the Seller is aware, none is pending or
threatened. 

  

	12.6	No Contract or legally-binding consent in respect of any of the Company’s Intellectual Property Rights has been entered into or given by the Company in favour of any third
party. 

  

	12.7	The Disclosure Letter contains a full list of domain names in connection with the Internet or Worldwide Web which are held by, registered on behalf of, or are currently used by the
Company. 

  

	13.	Computer Systems 

  

	13.1	The Computer Systems have at all times during the 18 month period prior to the date of this Agreement functioned without material fault, and are reasonably and materially sufficient
(without requiring substantial addition or replacement) for the conduct of the Company’s business as currently conducted (with respect to both nature and scale). 

  

	13.2	All agreements reasonably necessary in connection with the Computer Systems (such as licence, escrow and maintenance and support agreements) are in place and, so far as the Seller
is aware, have been complied with by the Company in all material respects and are disclosed in the Disclosure Letter. Such agreements are sufficient for the current use of the Computer Systems by the Company. 

  

	13.3	Reasonable steps have been taken to ensure the security of the Computer Systems and the data stored on them. 

  

	14.	Property 

  

	14.1	The particulars of the Property shown in Schedule 6 are complete and accurate. The use of the Property for the purpose stated in Schedule 6 corresponds to the use to
which it is in fact put. 

  

	14.2	The Company has in its possession, or under its control, all duly stamped deeds and documents necessary to prove title to the Property. 

  

 32 

	14.3	The Company has not received written notice of any breach or alleged breach of any obligation, restrictions, conditions and covenants in any lease relating to the Property or its
present use. 

  

	14.4	The Company does not own, is not in occupation of or is not entitled to, any estate or interest in any freehold or leasehold property other than the Property. The Company is not
party to any uncompleted agreement to acquire or dispose of any freehold or leasehold property. 

  

	14.5	Except in relation to the Property, the Company has no liability (whether actual or contingent) in relation to any freehold or leasehold property and in particular the Company has
never assumed any liability under a lease (whether as landlord, tenant, guarantor or otherwise) other than any leases or property disclosed in accordance with Warranty 14.1. 

  

	14.6	The Company has vacant possession of the Property and no other person has any other right (actual or contingent) to possession or occupation of the Property or any interest in it.

  

	14.7	The replies and other written disclosures given by the Seller’s Solicitors to the Commercial Property Standard Enquiries or to the Buyer’s Solicitors’ written
enquiries and any other written disclosures by the Seller’s Solicitors to the Buyer’s Solicitors concerning the Property are complete, true and accurate in all respects and not misleading in any respect. 

  

	14.8	The Company has vacated the Covent Garden Property and removed all items belonging to it. 

 ENVIRONMENTAL/HEALTH AND SAFETY (EHS) MATTERS 
  

	15.	Definitions 

 For the purposes of Warranties 15
to 20 inclusive: 
  

			
	“Environmental Law”	  	means all applicable law (whether criminal, civil or administrative), common law, judgment, court order, statute, statutory instrument, regulation, directive, European Union decision (insofar
as legally binding), by-law, treaty, government circular, code of practice and guidance notes, or instruction or decision of any competent

  

 33 

			
		  	regulatory body in force at the date of this Agreement relating to Environmental Matters
		
	“Environmental Matters”	  	means all or any matters relating to the pollution or protection of the Environment or harm to or the protection of worker’s health and safety but excluding any matters relating to
product liability
		
	“Environmental Permits”	  	means all or any permits, consents, licences, approvals, certificates and other authorisations required by Environmental Law for the operation of the business of the Company as currently
carried on or the condition or use of the Property or held by the Company as at today’s date

  

	16.	Environmental Permits and Compliance with Environmental Law 

  

	16.1	The Company has lawfully obtained all Environmental Permits. Each Environmental Permit is in full force and effect and the Company complies and has in the 6 years preceding the date
of this Agreement complied at all times with all conditions of each Environmental Permit. 

  

	16.2	True copies of all Environmental Permits obtained by the Company (including any variation notices applicable thereto) are attached to the Disclosure Letter.

  

	16.3	No works or costs are necessary to obtain or secure compliance with or maintain any Environmental Permit, or otherwise to comply with Environmental Law and, so far as the Seller is
aware, there is not any requirement for an Environmental Permit to be obtained in the period of 18 months after Completion (whether pursuant to the Pollution Prevention and Control (England and Wales) Regulations 2000 (as amended) or otherwise).

  

	16.4	The Company has not received any written communication which remains current from any relevant authority in respect of any Environmental Permit varying, modifying, revoking,
suspending or cancelling the same or indicating an intention or threatening so to do. 

  

	16.5	The Company and its officers and employees comply and have at all times in the 6 years preceding the date of this Agreement complied with Environmental Law in all respects in
operating the business of the Company. 

  

 34 

	16.6	The Company has not received any written communication which remains current from any relevant authority alleging any breach of Environmental Law, or where failure to comply with
such communication could constitute a breach of Environmental Law or where compliance with such communication could be secured by further proceedings by such relevant authority. 

  

	17.	Liability 

  

	17.1	The Company has not received any written notice of any complaint or claim from any person in respect of Environmental Matters in the last 6 years preceding the date of this
Agreement. 

  

	17.2	The Company is not and has not in the 6 years preceding the date of this Agreement been engaged in any litigation, arbitration or dispute resolution proceedings or, so far as the
Seller is aware, subject to any investigation by any relevant authorities under Environmental Law or otherwise in relation to Environmental Matters and the Seller is not aware of any such matters pending or being threatened.

  

	18.	Contamination 

  

	18.1	The Property is free from any Hazardous Substance which could give rise (whether on the relevant site or elsewhere) to any actual or potential liability on the part of the Company
under Environmental Law. 

  

	18.2	There are no circumstances which may require expenditure (whether by the Company or by any other person or authority) in cleaning up or decontaminating the Property.

  

	18.3	There are no properties formerly owned or occupied by the Company other than the Property. 

  

	19.	Packaging 

  

	19.1	[LEFT DELIBERATELY BLANK] 

  

	20.	Information 

  

	20.1	Full details of any remedial work carried out at the Property and of any environmental assessment, audit, review or investigation conducted by or on behalf of the Company during the
last 6 years or otherwise in relation to any such sites are set out in or attached to the Disclosure Letter. 

  

 35 

 EMPLOYEES 
  

	21.	Remuneration and employees 

  

	21.1	Full particulars of the identities, dates of commencement of employment (or appointment to office), dates of birth, terms and conditions of employment and remuneration (including
any bonus, commission, profit sharing, share and other incentive schemes, pensions schemes and collective or workforce agreements) of all the employees, workers and officers of the Company are accurately set out in the Disclosure Letter and copies
of all their written service agreements or contracts of employment or particulars of employment statements are attached to the Disclosure Letter. 

  

	21.2	There are no amounts owing to any present or former officers, workers or employees of the Company other than accrued but unpaid salary for the month of this Agreement and none of
them is entitled to accrued but unpaid holiday pay in respect of the Company’s current or previous holiday year. 

  

	21.3	Other than the equity related bonuses payable to officers of the Company and to be paid by the Seller, the Company does not have any other remuneration arrangements that will become
vested or payable as a result of the transaction contemplated by this Agreement. 

  

	21.4	There is no person previously employed or engaged by the Company who now has or may have a statutory or contractual right to return to work or to be re-instated or re-engaged by the
Company. 

  

	21.5	Full details of all employees who have been absent from work for more than four consecutive weeks in the 12 month period ending on the date of this Agreement are contained in the
Disclosure Letter. 

  

	21.6	The Company has not recognised, or done any act which might reasonably be construed as recognition of, a trade union and the Company is not party to any agreement with any trade
union or organisation of employees or workers nor are any steps being taken by employees, workers or other representatives to ensure trade union recognition. 

  

	21.7	The Company is not involved, and has not during the 12 months prior to the date of this Agreement been involved, in any strike, lock-out, industrial or trade dispute or any
negotiations with any trade union or body of employees or workers. 

  

 36 

	21.8	The Company does not operate or intend to operate and, in the last 3 years, has not operated any short time working scheme or arrangement or any redundancy or redeployment scheme or
arrangement, whether formal or informal, contractual or non-contractual, which provides for early retirement, payments greater than those required by statute or for notice periods greater than those set out in the employees’ contracts of
employment or engagement. 

  

	21.9	The Company does not use the services of outworkers, agency or other self-employed persons, contracted labour or agents. 

  

	21.10 	So far as the Seller is aware, the Company has in the last 3 years, in relation to all present and former employees and workers, complied in all material respects with all statutes,
regulations, orders and codes of conduct relating to employment and relations with employees and trade unions and has complied in all material respects with all agreements for the time being having effect as regards such relations or the conditions
of service of its employees (whether collectively or individually) including all payments required to be made on behalf of or for the account of current or former Company employees (including social security contributions and required tax
withholding obligations). 

  

	22.	Pensions 

  

	22.1	The Pension Scheme and the Stakeholder Scheme are the only arrangements to which the Company has any liability for the purpose of providing benefits on retirement, death or
disability. 

  

	22.2	The Company’s sole liability under the Stakeholder Scheme is to pay contributions for retirement benefits and the cost of lump sum death benefit in accordance with the
disclosures. 

  

	22.3	The Seller has supplied to the Buyer documents containing materially full, accurate and up to date details of the Pension Scheme and of the Company’s obligations and
liabilities under it. These documents include, but are not limited to, the following: 

  

	 	22.3.1 	all trust deeds, rules, resolutions and other documents establishing, governing or relating to the Pension Scheme; 

  

	 	22.3.2 	all announcements and explanatory booklets relating to the Pension Scheme issued to members of the Pension Scheme and to employees of the Company within the last three years;

  

 37 

	 	22.3.3 	the latest actuarial valuations (and any actuarial certificates since the latest valuation); 

  

	 	22.3.4 	the latest trustee report and accounts; 

  

	 	22.3.5 	data for all members and beneficiaries (including names, dates of birth, pensionable salaries, dates of starting pensionable service, dates of joining the Company, membership
category, whether active, deferred, pensioner or dependant); 

  

	 	22.3.6 	latest schedule of contributions and details of all employee and employer contributions (including additional voluntary contributions) which are payable under the Pension Scheme,
the bases for calculating these (including any discretionary practices), and details of any salary or bonus sacrifice arrangements; 

  

	 	22.3.7 	details of all benefits (including benefits from additional voluntary contributions) which have been agreed or promised to be paid either by the Company or the trustees of the
Pension Scheme in addition to or in lieu of benefits payable under the Pension Scheme and the bases for calculating these (including any discretionary practices), any earmarking and pension sharing orders, and any notices of insolvency served on
beneficiaries; 

  

	 	22.3.8 	letter from HMRC (as defined in Schedule 4) confirming exempt approval, and all other correspondence with HMRC; 

  

	 	22.3.9 	contracting-out certificates issued to the Company; 

  

	 	22.3.10 	all other administrative records, together with: details of trustees; trustee selection and appointment procedures; internal dispute resolution procedure; registration with the
Pension Schemes Registry; statement of investment principles; investment management agreements and custody agreements; 

  

	 	22.3.11 	changes which have been agreed but not yet implemented to any information contained in any of the documents listed above; and 

  

	 	22.3.12 	the details of those SGS Parties who have committed to transfer their benefits from the Pension Scheme (set out for the avoidance of the doubt in the SGS Parties List).

  

	22.4	 The Pension Scheme and the Stakeholder Scheme are both approved as exempt approved schemes (within the meaning of Chapter I of Part XIV ICTA and Chapter 

  

 38 

	 	 
IV of Part XIV ICTA respectively), and as far as the Seller is aware there is no reason why this approval in either case could be withdrawn.

  

	22.5 	There is in force in respect of each employment with the Company to which the Pension Scheme relates an appropriate contracting-out certificate. There is no reason why any
contracting-out certificate could be cancelled, surrendered or varied. 

  

	22.6 	The Company, the Pension Scheme and the Stakeholder Scheme comply and have at all times complied with all legal and regulatory requirements (including equal treatment and other
anti-discrimination requirements and data protection requirements) and the schedule of contributions relevant to the provision of retirement or death benefits, the Pension Scheme and the Company’s participation in the Pension Scheme. The
Company complies and has at all time complied with any duty to facilitate access to a stakeholder pension scheme (under section 3 of the Welfare Reform and Pensions Act 1999). 

  

	22.7 	There are no ongoing claims, disputes, complaints or investigations which relate to the Pension Scheme and the Stakeholder Scheme or to the provision of retirement or death benefits
in respect of the participants or former participants in the Pension Scheme and the Stakeholder Scheme. 

  

	22.8 	All amounts which have fallen due for payment by the Company to and in respect of the Pension Scheme and the Stakeholder Scheme have been paid. 

  

	22.9 	All lump sum benefits under the Pension Scheme and the Stakeholder Scheme are fully insured. 

  

	22.10 	The Company has no outstanding liability to pay a debt due to any occupational pension scheme which has been demanded of the Company under section 75 of the Pensions Act 1995.

  

	22.11 	No payment or repayment of any of the assets of any occupational pension scheme or cancellation of any outstanding payment to an occupational pension scheme has been made to or for
the benefit of the Company. 

 CONTRACTS 
  

	23.	Insurance 

  

	23.1 	 So far as the Seller is aware, all insurable assets of the Company are, and have at all material times been, insured in amounts equal to their full replacement or
reinstatement value against all risks normally insured against by persons carrying on 

  

 39 

	 	 
the same classes of business as the Company and the Company is, and has at all material times been, adequately covered against accident, damage, injury,
third party loss, loss of profits and any other risk normally insured against by persons carrying on the same classes of business as the Company. 

  

	23.2 	A list of all current insurance policies (and summary particulars thereof) in respect of which the Company has an interest is annexed to the Disclosure Letter.

  

	23.3 	No written notice of cancellation has been received by the Company in respect of any insurance policy referred to in Warranty 23.1 or, so far as the Seller is aware, pending,
nothing has been done or omitted to be done which, so far as the Seller is aware, would make any such policy of insurance of the Company void or voidable or which, so far as the Seller is aware, is likely to result in an increase in premium.

  

	23.4 	No insurance claim by the Company is pending or outstanding and, so far as the Seller is aware, no event has occurred which might reasonably be expected to result in any such claim.
Summary particulars of all claims made within the past two years under any of the Company’s insurance policies are set out in or attached to the Disclosure Letter. 

  

	23.5 	A schedule of the Company’s casualty and property insurance policies which have been in effect for the past two years are set out in or attached to the Disclosure Letter.

  

	23.6 	None of the Company’s insurance policies referred to in Warranty 23.2, so far as the Seller is aware, are subject to retrospective premium adjustments.

  

	23.7 	All of the Company’s insurance policies referred to in Warranty 23.2 except for directors and officers liability and crime insurance, have been issued on
“occurrence” policy forms and not “claims-made”. 

  

	23.8 	Copies of all of the Company’s general liability, product liability and employers’ liability policies issued from 1999 to present have been delivered to the Buyer.

  

	24.	Financing etc 

  

	24.1 	The amount of all overdrafts, loans or other financial facilities outstanding or available to the Company are set out in the Disclosure Letter and, so far as the Seller is aware, no
person who provides any of those facilities has given any indication to the Company that it intends to withdraw or alter its terms. 

  

 40 

	24.2	The Company has not procured or (directly or indirectly) engaged in any borrowing or financing not required to be reflected in its statutory accounts. 

  

	24.3	The details contained in the Disclosure Letter of the credit or debit balances on all the bank or deposit accounts of the Company were correct at the date stated in the Disclosure
Letter and since such date there have been no payments out of any such accounts except in the ordinary course of business and the balances on such accounts are not now substantially different from the balances shown in the Disclosure Letter.

  

	24.4	No indebtedness of the Company is due and payable and no security over any of the assets of the Company is now enforceable. 

  

	24.5	So far as the Seller is aware, the Company has, since the Accounting Date, paid its creditors in accordance with their normal credit terms details of which are disclosed in the
Disclosure Letter. 

  

	25.	Material contracts 

 The Company is not, nor has
been since the Accounting Date, a party to any legally-binding Contract which: 
  

	25.1	involves sales agency, distributorship, franchising or marketing rights or joint venture or consortium arrangements; 

  

	25.2	has an annual value of in excess of £25,000 (plus VAT) and involves hire purchase, conditional sale, credit sale, leasing or hiring arrangements; 

  

	25.3	commits it to capital expenditure in excess of £25,000 (plus VAT) in the 12 month period from Completion; 

  

	25.4	is scheduled to be completed in accordance with its terms more than 6 months after today’s date; 

  

	25.5	so far as the Seller is aware, cannot readily be fulfilled or performed by the Company; 

  

	25.6	the Seller believes will result in a loss to the Company in excess of £50,000 in the 12 month period from Completion or which contains price terms which the Seller knows are
less than its costs; 

  

	25.7	is for the supply of goods or services by or to the Company on terms under which retrospective or future discounts, price reductions or other financial incentives are given;

  

 41 

	25.8 	is for the supply of goods or services by or to the Company which is not on the current standard terms and conditions on which the Company normally contracts to buy or supply goods
or services, copies of which are attached to the Disclosure Letter; 

  

	25.9 	restricts the freedom of the Company to carry on its current business in any part of the world in such manner as it may think fit; 

  

	25.10 	involves conditions, warranties, indemnities or representations given in connection with a sale of shares or an undertaking or fixed assets in excess of £10,000;

  

	25.11 	is a guarantee, indemnity or surety in respect of the obligations of a third party, under which any liability or contingent liability is outstanding; 

  

	25.12 	includes a term which is not, or may not be, binding on the Company or any other party in consequence of the Unfair Terms in Consumer Contracts Regulations 1999; or

  

	25.13 	is not on arm’s length terms or is otherwise than in the ordinary and proper course of the Company’s current business. 

  

	26.	Other business matters 

  

	26.1	During the 12 months ending on the date of this Agreement no material supplier or customer of the Company has substantially changed the basis or terms on which it is prepared to do
business with the Company (apart from normal price changes), and no material customer or supplier of the Company has ceased or substantially reduced its business with the Company or, so far as the Seller is aware, indicated in writing to the Company
that it intends any such change, cessation or substantial reduction. 

  

	26.2	The Company does not carry on business under any name other than its own corporate name or any other name specified in the Disclosure Letter and there are no circumstances which the
Seller is aware might prevent the Company from continuing to carry on business under such names. 

  

 42 

 COMPLIANCE, DISPUTES 
  

	27.	Company law matters 

  

	27.1	Compliance has been made with all legal requirements in connection with the formation of the Company and all issues and grants of shares, debentures, notes, mortgages or other
securities of the Company. 

  

	27.2	The copy of the memorandum and articles of association of the Company attached to the Disclosure Letter is true and complete. 

  

	27.3	All returns and other documents required to be filed with or delivered to the Registrar of Companies by the Company have in all material respects been correctly and properly
prepared, filed and delivered. 

  

	27.4	The statutory books (including all registers and minute books) of the Company have been properly kept. 

  

	28.	General legal compliance 

  

	28.1	The Company has obtained all necessary licences, consents, permits, authorities and permissions (public and private) to enable it to carry on its current business in the places and
in the manner in which such business is now carried on. All such necessary licences, consents, permits and authorities are valid and subsisting and have been complied with by the Company in all material respects. 

  

	28.2	Save as expressly qualified by awareness (or otherwise) in connection with specific matters in other Warranties, the Company has conducted its business in accordance with all
applicable legal and administrative requirements in the United Kingdom and, so far as the Seller is aware, with all applicable legal and administrative requirements outside the United Kingdom. 

  

	28.3	Save as disclosed in the Disclosure Letter by express reference to this Warranty 28.3, the Company’s assets do not include any “criminal property” as defined
by section 340(3) of the Proceeds of Crime Act 2002 (but disregarding paragraph (b) of that definition). 

  

	28.4	So far as the Seller is aware, none of the officers, agents or employees of the Company (during the course of his duties in relation to Company) has committed or omitted to do any
act or thing in contravention of any law, order, regulation or the like in the United Kingdom or elsewhere. 

  

	28.5	So far as the Seller is aware, there is not any investigation or enquiry by, or on behalf of, any governmental agency in respect of the affairs of the Company.

  

 43 

	29.	Fair trading 

 No agreement, transaction, practice
or arrangement carried on by the Company is registered under, infringes or falls within the scope of any competition, anti-restrictive trade practice or consumer protection law or legislation in the United Kingdom or elsewhere or is or, so far as
the Seller is aware, has been subject to any investigation, request for information, notice or other communication by any court, governmental or regulatory authority. 
  

	30.	Litigation 

  

	30.1	Neither the Company nor, so far as the Seller is aware, any person for whose acts or defaults the Company is liable is involved (whether as claimant, defendant or other named party
to the proceedings) in any civil, criminal, tribunal, arbitration or administrative proceedings which relate to the business of the Company. 

  

	30.2	So far as the Seller is aware, there is no outstanding or unsatisfied judgment, decree, order, award or decision of a court, tribunal, arbitrator or governmental agency against the
Company and the Company is not party to any legally-binding undertaking or assurance given to a court, tribunal or any similar other person in connection with the determination or settlement of any claim or proceedings. 

  

	31.	Default 

  

	31.1	In the six years preceding the date of this Agreement, the Company has not manufactured, sold or supplied any product or service which did not or does not comply fully with:

  

	 	31.1.1 	all laws, regulations and standards of England and Wales; or 

  

	 	31.1.2 	customers’ specifications, any contractual term or any representation expressly made by the Company; or 

  

	 	31.1.3 	so far as the Seller is aware, all laws, regulations and standards outside England and Wales. 

  

	31.2	In the period since the Accounting Date, the Company has not received written notice that it has supplied or agreed to supply defective or unsafe goods or goods which fail to comply
with the prevailing terms of sale. 

  

	31.3	 Each Contract to which the Company is a party is valid and enforceable and the Company is not in breach of any Contract and, so far as the Seller is aware, no other
party to any such Contract is in breach of any material term of it. The Seller is not aware of any grounds for the valid termination, rescission, avoidance or repudiation 

  

 44 

	 	 
of any material Contract by the Company and, so far as the Seller is aware, the Company has not received written notice of any such grounds from any other
party to any such material Contract. 

  

	32.	Insolvency 

  

	32.1	The Company has not been a party to any transaction at an undervalue as defined in section 238 of the Insolvency Act 1986 nor has the Company given or received any preference as
defined in section 239 of the Insolvency Act 1986, in either case within the period of 2 years ending on the date of this Agreement. 

  

	32.2	No order has been made or petition presented for the winding up of the Company; no distress, execution or other process has been levied and remains undischarged in respect of the
Company and there is no unsatisfied judgment or court order against the Company. 

  

	32.3	No administrator has been appointed in respect of the Company and no receiver has been appointed of the whole or any part of the Property, assets or undertaking of the Company.

  

	32.4	The Company has not stopped or suspended the payment of its debts or received a written demand pursuant to section 123(l)(a) Insolvency Act 1986 and the Company is not insolvent or
unable to pay its debts within the meaning of section 123 Insolvency Act 1986. 

  

	33.	Effects of the Agreement 

 The execution of this
Agreement and the observance and performance of its provisions will not result in a breach by the Company of any material Contract, law, regulation, order, judgment, injunction or similar imposition to or by which the Company is legally bound, or,
so far as the Seller is aware, entitle any person to terminate or avoid any Contract to which the Company is party. 
  

 45 

 SCHEDULE 4 
 Taxation 
 PART 1 - INTERPRETATION 
  

	1.	Interpretation 

 In this Schedule 4:

  

	1.1	the following expressions have the following meanings unless inconsistent with the context: 

  

			
	“the Auditors”	  	the auditors for the time being of the Company
		
	“Accounts Relief”	  	any Relief to the extent that the same:
		
		  	 (a)    has been shown as an asset of the Company in the Completion Accounts; or

		
		  	 (b)    was taken into account in computing (and so reducing or eliminating) any provision for deferred tax which
appears in the Completion Accounts or which would have appeared in the Completion Accounts but for the presumed availability of such Relief

		
	“Buyer’s Relief”	  	any Accounts Relief or a Future Relief
		
	“Completion Accounts”	  	the completion accounts as agreed or determined in accordance with Schedule 7
		
	“Dispute”	  	any dispute, appeal, negotiations or other proceedings in connection with a Tax Claim

  

 46 

			
		
	“Event”	  	any event, fact or circumstance whatsoever, including (but not limited to) the earning, receipt or accrual of any income, profits or gains, the incurring of any loss or expenditure, the Company
ceasing to be a member of a group (as defined for any Taxation purpose) on or before Completion, the sale and purchase of the Shares pursuant to this Agreement and Completion
		
	“FA”	  	Finance Act
		
	“Future Relief”	  	any Relief which arises as a result of any Event which has occurred or occurs after Completion
		
	“Group Relief”	  	 (a)    any Relief surrendered or claimed pursuant to Chapter IV of Part X ICTA;

		
		  	 (b)    any advance corporation tax surrendered or claimed pursuant to section 240 ICTA;

		
		  	 (c)    any refund of Taxation surrendered or claimed pursuant to section 102 FA 1989; and

		
		  	 (d)    any Relief obtained as a result of an election made jointly with another company pursuant to section 171A or 179A
of the TCGA or pursuant to paragraph 66 of schedule 29 FA 2002

		
	“HMRC”	  	HM Revenue & Customs or, as the context so requires, any of its predecessor authorities, including (without limitation) the Inland Revenue and HM Customs & Excise

  

 47 

			
		
	“Liability to Taxation”	  	 (a)    any liability of the Company to make an actual payment of Taxation or of an amount in respect of Taxation (whether
or not the Company is primarily so liable and whether or not the Company has any right of recovery against any other person); and

		
		  	 (b)    the use by the Company (in whole or in part) of any Buyer’s Relief to reduce or eliminate any liability of the
Company to make an actual payment of Taxation in respect of which the Seller would otherwise have been liable under paragraph 2; and

		
		  	 (c)    the loss by the Company (in whole or in part) of any Accounts Relief

		
	“Over-provision”	  	the amount by which any provision for Taxation in the Completion Accounts proves to be an over provision other than as a result of:
		
		  	 (a)    the utilisation of any Buyer’s Relief; or

		
		  	 (b)    any change of law or Taxation Statue announced or taking effect after Completion

		
	“Relief”	  	any relief, allowance, exemption, set-off, deduction or credit available from, against or in relation to Taxation or in the computation for any Taxation purpose of income, profits or gains and
any right to a repayment of Taxation
		
	“Repayment”	  	a repayment by any Taxation Authority after Completion of any Taxation paid on

  

 48 

			
		
		  	or before Completion by the Company due to an overpayment of Taxation on or before Completion (other than a repayment which is shown as an asset in the Completion Accounts, a repayment which
arises as a result of the utilisation of any Buyer’s Relief, a repayment that arises as a result of a change of law or Taxation Statue announced or taking effect after Completion and other than an amount to which paragraph 7 applies),
together with any associated interest or repayment supplement
		
	“Saving”	  	the reduction or elimination of any liability of the Company to make an actual payment of Taxation in respect of which the Seller would not have been liable under paragraph 2 or the
obtaining of any repayment of Taxation by, in any such case, the use of any Relief which would not otherwise have been available (not being a Buyer’s Relief) arising as a result of a Liability to Taxation in respect of which the Seller has made
a payment under paragraph 2
		
	“Seller’s Group”	  	the Seller and any company which is, has been or will be at any time a member of the same group as the Seller for any Taxation purpose, excluding the Company and references to a member of the
Seller’s Group shall be construed accordingly.
		
	“Seller’s Relief”	  	any Relief which is or becomes available to the Company as a result of any Event occurring on or before Completion other than a Buyer’s Relief

  

 49 

			
		
	“Taxation”	  	 (c)    any tax, duty, impost or levy of the United Kingdom or elsewhere, whether national or local and including for the
avoidance of doubt national insurance and social security contributions but not including local authority rates payable in respect of the Property; and

		
		  	 (d)    any fine, penalty, surcharge, interest or other imposition relating to any tax, duty, impost or levy mentioned in
paragraph(a) of this definition or relating to any account, record, form, return or computation required to be kept, preserved, maintained or submitted to any person for the purposes of any such tax, duty, impost or levy

		
	“Taxation Authority”	  	any authority, whether of the United Kingdom or elsewhere, competent to impose, assess or collect Taxation, including but not limited to HMRC
		
	“Taxation Statute”	  	any statute (and all regulations and other documents having the force of law under such statute) published, enacted, issued or coming into force on or before the date of this Agreement relating
to Taxation
		
	“Tax Claim”	  	any notice, demand, assessment, letter or other document issued, or action taken, by or on behalf of any Taxation Authority and the submission of any Taxation form, return or computation from
which, in either case, it appears to the Buyer that the Company is or may be subject to a Liability to Taxation or other liability in

  

 50 

			
		
		  	respect of which the Seller is or may be liable under paragraph 2
		
	“TCGA”	  	Taxation of Chargeable Gains Act 1992
		
	“VAT”	  	value added tax
		
	“VATA”	  	Value Added Tax Act 1994
		
	“VAT Group”	  	any group of companies for the purposes of section 43 VATA of which the Company is or has been a member on or before Completion

  

	1.2	references to Events include Events which are deemed to have occurred for any Taxation purpose and references to income, profits or gains earned, received or accrued for any
Taxation purpose include income, profits or gains which are deemed to have been earned, received or accrued for any Taxation purpose; 

  

	1.3	references to the loss of a Relief include the disallowance of a Relief and the failure to obtain a Relief (whether as a result of the surrender of the Relief to another company or
otherwise); and 

  

	1.4	any stamp duty which is charged on any document, or in the case of a document which is outside the United Kingdom any stamp duty which would be charged on the document if it were
brought into the United Kingdom, which is necessary to establish the title of the Company to any asset or in the enforcement or production of which the Company is interested, and any interest, fine or penalty relating to such stamp duty, will be
deemed to be a liability of the Company to make an actual payment of Taxation. 

 PART 2 - TAX COVENANT 
  

	2.	Covenant 

  

	2.1	Subject to paragraph 3, the Seller covenants with the Buyer to pay to the Buyer an amount equal to the amount of: 

  

	 	2.1.1	 any Liability to Taxation which has arisen or arises as a result of or in connection with any Event which occurred on or before Completion; 

  

	 	2.1.2	  any Liability to Taxation for which the Company becomes liable in consequence of the failure by any company which has at any time (whether 

  

 51 

	 	 
before or after Completion) been a member of a group (as defined from time to time for any Taxation purpose) of which the Company has at any time prior to
Completion been a member to discharge Taxation within a specified period or otherwise; 

  

	 	2.1.3 	any liability which arises at any time to the Company to account under the PAYE system for income tax or national insurance contributions in respect of an option or other right to
acquire securities granted prior to Completion by the Company or by any other person or in respect of any employment-related securities (as defined for the purposes of Part 7 Income Tax (Employment and Pensions) Act 2003) acquired whether or not as
a result of the exercise of such a right or option; 

  

	 	2.1.4 	any liability of the Company under any agreement or arrangement entered into on or before Completion: 

  

	 	2.1.4.1 	to make any payment or repayment to any person of any amount in respect of or relating to any Group Relief; or 

  

	 	2.1.4.2 	relating to any VAT Group; 

  

	 	2.1.5 	any amount treated as an asset in the Completion Accounts which consists of the right to receive any payment for or in respect of Group Relief which the Company fails to recover;
and 

  

	 	2.1.6	 any reasonable costs, fees or expenses (including legal costs) incurred by the Company or the Buyer in connection with: 

  

	 	2.1.6.1	 any matter in respect of which the Seller is liable under paragraphs 2.1.1 to 2.1.5; or 

  

	 	2.1.6.2	 successfully taking or defending any action (including but not limited to legal proceedings) under this paragraph 2.1. 

  

	2.2	Except as required by law all payments by the Seller under this paragraph 2 will be made free and clear of all deductions and withholdings. 

  

	2.3	 Subject to paragraph 2.4, if any deduction or withholding is required to be made from any payment by the Seller under this paragraph 2 or if (ignoring
any available Relief or right to repayment of Taxation) the Buyer is subject to Taxation in respect of any payment by the Seller under this paragraph 2, the Seller covenants with the Buyer to pay to the Buyer such additional amount as is
necessary 

  

 52 

	 	 
to ensure that the net amount received and retained by the Buyer (after taking account of such deduction or withholding or Taxation) is equal to the amount
which it would have received and retained had the payment in question not been subject to the deduction or withholding or Taxation. 

  

	2.4	In the event that there has been an assignment, charge or other dealing by the Buyer of all or any of its rights under this Agreement then the Seller shall not be required to pay
any greater amount pursuant to paragraph 2.3 than it would have been required to pay if no such assignment, charge or other dealing by the Buyer had taken place. 

  

	3.	Quantification 

 For the purposes of paragraph 2
the amount of a Liability to Taxation will be equal to the actual payment of Taxation made save that: 
  

	 	3.1.1	 in the case of the loss of an Accounts Relief, the amount of the Liability to Taxation will be equal to the amount of Taxation which would otherwise have been saved assuming
for this purposes that the Company had sufficient profits to use the Relief or if the Accounts Relief lost was a right to a repayment of Taxation, the amount of the repayment of Taxation so lost; 

  

	 	3.1.2 	in the case of the use of a Buyer’s Relief as mentioned in paragraph (b) of the definition of Liability to Taxation, the amount of the Liability to Taxation will be
equal to the amount of Taxation saved by the Company as a result of the use of the relevant Buyer’s Relief. 

  

	4.	Exclusions 

 The Seller will not be liable under
paragraph 2 in respect of a Liability to Taxation or other liability of the Company to the extent to which: 
  

	4.1	such Liability to Taxation or other liability was discharged on or before Completion and the discharge of such Liability to Taxation or other liability was recognised in the
Completion Accounts; or 

  

	4.2	specific provision, reserve or allowance was made in the Completion Accounts for such Liability to Taxation or other liability or such Liability to Taxation was specifically taken
into account when calculating the amount or any general provision, reserve or allowance in respect of Taxation which was made in the Completion Accounts; or 

  

 53 

	4.3	payment has already been made in respect of such Liability to Taxation or other liability under this Part 2 or Part 3 of this Schedule 4;

  

	4.4	any member of the Seller’s Group has made payment in respect of the Liability to Taxation pursuant to sections 767A and 767AA ICTA 1988 or any other provisions imposing
liability on any member of the Seller’s Group for Taxation primarily chargeable against the Company provided that the provisions of this paragraph 4.4 shall not apply unless and to the extent that the Seller shall procure that no member
of the Seller’s Group or any other person shall make any claim against the Company or the Buyer under any statutory or contractual indemnity or other right of recovery in respect of any amount paid by any member of the Seller’s Group or
other person in respect of such Taxation; or 

  

	4.5	such Liability to Taxation or other liability would not have arisen but for a change in legislation (including but not limited to an increase in rates of Taxation) or in the
published practice of any Taxation Authority first enacted or announced after Completion, or such Liability to Taxation or other liability would not have arisen but for the decision of any court or tribunal after the date of Completion; or

  

	4.6	any Seller’s Reliefs are available at no cost to the Company or the Buyer to, and actually do, relieve or mitigate that Liability to Taxation; or 

  

	4.7	the Liability to Taxation arises or is increased as a result of any change made after Completion to the accounting period or the accounting policy or practice of or applicable to
the Company save where such change is made to comply with standard accounting policies or practice in force and applicable to the Company as at Completion; or 

  

	4.8	the Liability to Taxation would not have arisen or would have been reduced or eliminated but for: 

  

	 	4.8.1	 the making of a claim, election, surrender or disclaimer or the giving of a notice or consent or the doing of any other thing after Completion by the Buyer or the Company
(other than (a) at the written request by or on behalf of the Seller or (b) where the making, giving or doing of which was taken into account in computing any provision or reserve for Taxation in the Completion Accounts); or

  

	 	4.8.2	  the failure or omission on the part of the Company after Completion to make any valid claim, election, surrender or disclaimer or give any notice or consent
or do any other thing the making, giving or doing of which was 

  

 54 

	 	 
taken into account in computing any provision or reserve for Taxation in the Completion Accounts; or 

  

	4.9	the Liability to Taxation arises or is increased as a result of the failure by the Buyer to comply with any of its obligations under paragraph 9 (Conduct of Claims) or
paragraph 12 (Tax Returns) of this Schedule; or 

  

	4.10	such Liability to Taxation or other liability would not have arisen but for a voluntary act, transaction or omission of the Company or the Buyer after Completion other than:

  

	 	4.10.1 	pursuant to a legally binding commitment created on or before Completion; 

  

	 	4.10.2 	at the written request by or on behalf of the Seller; 

  

	 	4.10.3 	in the ordinary course of business of the Company as carried on at Completion; or 

  

	 	4.10.4 	to comply with any Taxation Statute or other law or regulation (whether in force at Completion or not); or 

  

	4.11	the Liability to Taxation would not have arisen but for the winding up of, or the cessation of the trade or business of, the Company, or any change in the nature or conduct of such
trade or business, where the winding up, cessation or change occurs after Completion. 

  

	5.	Due Date for Payment 

  

	5.1	The due date for the making of a payment by the Seller under this Part 2 of this Schedule 4 will be: 

  

	 	5.1.1	 the date falling 5 Business Days after the Buyer has served notice on the Seller demanding such payment; or 

  

	 	5.1.2 	in any case involving a liability of the Company to make an actual payment (whether or not a payment of Taxation), the later of the date mentioned in paragraph 5.1.1 and the
date falling 5 clear Business Days before the last date upon which the payment is required to be made to the person entitled to the payment; or 

  

	 	5.1.3 	 in any case involving the loss of an Accounts Relief other than the right to repayment of Taxation, the later of the date mentioned in paragraph 5.1.1 and
the date falling 5 clear Business Days before the last date upon which 

  

 55 

	 	 
the payment of Taxation is or would be required to be made in respect of the accounting period in which the Accounts Relief is lost.

  

	5.2	If any payment required to be made by the Seller under this Part 2 of this Schedule 4 is not made by the due date, then, except to the extent that the Seller’s
liability under paragraph 2 compensates the Buyer for the late payment by virtue of the definition of the expression “Taxation” in paragraph 1.1 extending to interest, such payment will bear interest from the due date
for payment at the annual rate of 1.5 per cent. above the base lending rate from time to time of Barclays Bank PLC, accruing on a daily basis until payment is made, whether before or after any judgment. 

  

	6.	Time limit 

  

	6.1	The Seller will not be liable under paragraph 2 in respect of a Liability to Taxation or other liability of the Company unless within seven years after Completion the Buyer
has given notice to the Seller of any Tax Claim whatsoever relating to such Liability to Taxation or other liability, or of any Event which may give rise to such a Tax Claim. 

  

	6.2	The time limit in paragraph 6.1 will not apply in any case involving dishonest or fraudulent or negligent conduct on the part of the Seller, any company which has at any time
been a member of the same group (as defined for any Taxation purpose) as the Seller or any person acting on behalf any of the foregoing companies. 

  

	7.	Recovery from other persons 

  

	7.1	If the Buyer or the Company recovers from any other person (including any Taxation Authority but excluding the Buyer, any other member of the same group of companies as the Buyer
and any officer or employee of any such company) any amount which is referable to a Liability to Taxation or other liability of the Company in respect of which the Seller has made or is liable to make a payment under paragraph 2, that
amount shall be dealt with in accordance with paragraph 7.3. 

  

	7.2	If the Buyer becomes aware that the Buyer or the Company is entitled to recover any amount mentioned in paragraph 7.1, the Buyer will as soon as reasonably practicable
thereafter give notice of that fact to the Seller and provided that the Seller indemnifies and secures (by way of monies on account) the Company and the Buyer to the reasonable satisfaction of the Buyer against all losses, costs, damages and
expenses which may be incurred thereby, the Buyer will and will procure that the Company, at the Seller’s cost and expense, takes such action as the Seller may reasonably and promptly request by notice in writing to the Buyer to effect such
recovery. 

  

 56 

	7.3	If the Buyer or the Company makes any recovery as is mentioned in paragraph 7.1 then an amount (“the Recovered Amount”) equal to the amount so recovered less
any losses, costs, damages and expenses incurred by the Company, the Buyer or any other member of the same group of companies as the Buyer as a result of the recovery of that amount and less any Taxation in respect of such recovery shall

  

	 	7.3.1	 first be set off against any amount then due to the Buyer from the Seller under any provision of this Agreement; and 

  

	 	7.3.2 	there shall be repaid to the Seller an amount equal to the lesser of: 

  

	 	7.3.2.1 	the Recovered Amount to the extent not set off as mentioned in paragraph 7.3.1; and 

  

	 	7.3.2.2 	the amount paid by the Seller under paragraph 2 in respect of the Liability to Taxation or other liability in question less any part of such amount previously repaid to the
Seller under any provision of this Agreement or otherwise. 

  

	8.	Over-Provisions, Repayments and Savings 

  

	8.1	If the Buyer discovers (or is made aware) that: 

  

	 	8.1.1 	there is an Over-provision; or 

  

	 	8.1.2 	the Company has obtained a Repayment; or 

  

	 	8.1.3 	the Company has obtained a Saving 

 the Buyer shall give or
shall procure that the Company gives such details as are then known to the Buyer to the Seller. 
  

	8.2	If (at the Seller’s request and expense) the Auditors determine that the Company has obtained a Saving and the amount of such Saving, the Buyer will as soon as reasonably
practicable after the amount of the Saving is determined by the Auditors in accordance with paragraph 8.1, repay to the Seller the lesser of: 

  

	 	8.2.1	 the amount of the Saving (as determined by the Auditors); and 

  

 57 

	 	8.2.2 	the amount paid by the Seller under paragraph 2 in respect of the Liability to Taxation which gave rise to the Saving less any part of that amount previously repaid to the
Seller under any provision of this Agreement or otherwise. 

  

	8.3	If (at the Seller’s request and expense) the Auditors determine that there is an Over-provision or that the Company has obtained a Repayment and the amount of such
Over-provision or, as the case may be, Repayment, the Buyer will as soon as reasonably practicable after the amount of the Over-provision or the Repayment: 

  

	 	8.3.1 	set off the amount of such Over-provision or Repayment against any payment then due from the Seller under this Agreement; 

  

	 	8.3.2 	to the extent that there is an excess, refund to the Seller any previous payment or payments made by the Seller under part 2 of this schedule 4 to the extent not
previously refunded under this paragraph 8 or any other provision of this agreement; and 

  

	 	8.3.3 	to the extent that the excess referred to in paragraph 8.3.2 is not exhausted under that paragraph, the remainder shall be carried forward and set against any payment
thereafter becoming due from the Seller under any provision of this Agreement. 

  

	8.4	The Company will be entitled to use in priority to any Relief which gives rise to a Saving any other Relief available to it (including by way of surrender by another company to it)
to reduce or eliminate any liability to make an actual payment of Taxation. 

  

	8.5	The Company will not obtain a Saving until the last date upon which it would have been obliged to make the actual payment of Taxation which has been reduced or eliminated in order
to avoid incurring interest thereon or, as the case may be, has obtained from the relevant Taxation Authority the repayment of Taxation in question. 

  

	8.6	Where any such determination as is mentioned in paragraph 8.2 or paragraph 8.3 has been made, the Seller or the Buyer (in either case at the expense of the
person requesting the review) may request the Auditors to review such determination in the light of all relevant circumstances, including any facts which have become known only since such determination, and to certify whether such determination
remains correct or whether, in the light of those circumstances, the amount that was the subject of such certification should be amended. 

  

 58 

	8.7	If the Auditors determine under paragraph 8.5 that an amount previously determined should be amended, that amended amount shall be substituted for the purposes of
paragraph 8.2 or, as the case may be, paragraph 8.3 as the amount of the Saving, Over-provision, or Repayment in respect of the determination in question in place of the amount originally determined, and such adjusting payment (if any)
as may be required by virtue of the above-mentioned substitution shall be made as soon as practicable by the Seller or (as the case may be) to the Seller pursuant to paragraph 8.2 or, as the case may be, paragraph 8.3.

  

	8.8	In making any determination or amended determination pursuant to this paragraph 8, the Auditors will act as experts and not as arbitrators and their determination will (in
the absence of manifest error) be conclusive and binding on the parties. 

  

	9.	Conduct of Claims 

  

	9.1	If the Buyer or the Company becomes aware after Completion of a Tax Claim or any other matter which may give rise to a claim against the Seller under paragraph 2 of this
Schedule, the Buyer shall as soon as reasonably practicable thereafter give written notice of the Tax Claim or other matter to the Seller provided that the giving of such notice will not be a condition precedent to the liability of the Sellers under
paragraph 2. 

  

	9.2	Subject to paragraph 9.4 and provided that the Seller indemnifies and secures (by way of monies on account) the Company and the Buyer to the reasonable satisfaction of the
Buyer against all losses, costs, damages and expenses (including interest or surcharge on overdue Taxation) which may be incurred thereby, the Buyer will procure that the Company, at the Seller’s cost and expense, takes such action and gives
such information and assistance in connection with the Taxation affairs of the Company as the Seller may reasonably and promptly request by notice in writing to the Buyer to dispute, appeal against, settle or compromise any Tax Claim, including
applying to postpone (so far as legally possible) the payment of any Taxation but not including allowing the Seller or its advisors to take on or take over the conduct of any Dispute. 

  

	9.3	Subject to paragraphs 9.4 and 9.5, and to compliance by the Sellers with paragraph 9.2 in relation to any Dispute, the Buyer will not, and will procure that the
Company will not, without the prior written consent of the Seller, such consent not to be unreasonably withheld or delayed: 

  

	 	9.3.1 	transmit any communication (whether written or otherwise) to any Taxation Authority; 

  

 59 

	 	9.3.2 	settle or compromise the relevant Tax Claim; or 

  

	 	9.3.3 	agree any matter which is likely to adversely affect the amount of the relevant Tax Claim. 

  

	9.4	The Buyer will not be required to take or procure that the Company will take any action mentioned in paragraph 9.2: 

  

	 	9.4.1 	which it considers to be materially prejudicial to the Taxation affairs of the Company or the Buyer; or 

  

	 	9.4.2 	which involves contesting a Tax Claim beyond the first appellate body (excluding the Taxation Authority which has made the Tax Claim) in the jurisdiction concerned unless the Seller
obtains (at the Seller’s cost and expense) the opinion of tax counsel of at least five years’ call that it is reasonable in all circumstances to make such an appeal. 

  

	9.5	If the Seller fails promptly (and in any event within 10 Business Days of the Buyer giving notice requiring the Sellers to do so) to inform the Buyer of any action which the Seller
wishes the Buyer to procure the Company to take under paragraph 9.2, the Buyer will be entitled to procure that the Company settles or compromises any Tax Claim on such terms as it determines in its absolute discretion.

  

	10.	Counter-Indemnity 

  

	10.1	The Buyer hereby covenants with the Seller to pay to the Seller, by way (so far as legally possible) of adjustment to the consideration paid by the Buyer to the Seller under the
Agreement, an amount equal to any liability of the Seller, or any other person falling within Section 767A(2) or 767AA(4) ICTA, section 132 (3) FA 1988, section 190 (3) TCGA, paragraph 68 of Schedule 29 or paragraph 8(2) of Schedule
34 FA 2002 by virtue of a relationship which that person has or has had with the Seller, to tax (and any related interest, penalties, costs and expenses) under Sections 767A, 767AA, 767B ICTA, section 132 FA 1988, section 190 TCGA or paragraph 68 of
Schedule 29 or paragraph 8 of Schedule 34 FA 2002 as a result of the Buyer’s failure to procure payment by the Company of any Taxation payable by it. 

  

	10.2	 The undertaking contained in paragraph 10.1 will not apply to any Taxation in respect of which the Buyer could make a claim under this Schedule 4 or
to any Taxation which the Seller or any other such person as is mentioned in paragraph 10.1 will have recovered from the Buyer under any statutory right of 

  

 60 

	 	 
recovery (save in either such case in circumstances where the Seller has paid an amount in respect of the Taxation in question to the Buyer and the relevant
liability of the Company nevertheless remains unpaid) and the Seller will procure that no recovery under such statutory right is sought to the extent that payment has been made to the Seller by the Buyer under paragraph 10.1 in respect of
that Taxation. 

  

	10.3	The covenant contained in paragraph 10.1 shall extend to any costs incurred by the relevant member of the Seller’s Group in connection with such Taxation as is mentioned
in paragraph 10.1 or a claim under paragraph 10.1. 

  

	10.4	Paragraphs 2.3, 5 and 9 shall apply to the covenant contained in this paragraph 10 as they apply to the covenants contained in paragraph
2, replacing references to the Seller by the Buyer (and vice versa) and making any other necessary modifications. 

  

	11.	Group Relief 

  

	11.1	The Seller may, by notice in writing to the Buyer, elect to reduce or eliminate any liability under this covenant by surrendering or procuring the surrender to the Company of Group
Relief to the extent permitted by law but without any payment being made by the Buyer or the Company in consideration of the surrender. The liability of the Seller under this covenant shall be reduced or eliminated to the extent of the amount of
Taxation in question is actually relieved by any such surrender. The Buyer shall procure that the Company takes all such steps as the Seller may reasonably request by notice in writing to the Buyer to permit and effect such surrender and claim for
Group Relief. 

  

	11.2	The Seller may, by notice in writing to the Buyer, elect to reduce or eliminate any liability under this covenant, where permitted by law, by making a joint election with the
Company concerned such that the liability is either re-allocated to a member of the Seller’s Group or is rolled over into assets of the Seller’s Group. The liability of the Seller under this covenant shall be reduced or eliminated to the
extent of the amount of Taxation of the Company relieved by any such election. The Buyer shall procure that the Company takes all such steps as the Seller may reasonably require to permit and effect such joint election. The Seller shall or shall
procure that another member of the Seller’s Group enter into a joint election with the Company under section 179A of the TCGA in respect of the deemed disposal by the Company of the three leasehold interests in properties in Hull.

  

	11.3	The Seller shall not and shall procure that no member of the Seller’s Group shall withdraw its consent to the surrender of losses by way of Group Relief to the Company in
respect of any period (or part of a period) ending on or before Completion 

  

 61 

	11.4	In respect of the accounting period ended on 31st December 2005 the Seller shall be entitled to require the Company to consent to and accept the surrender of group relief pursuant to Chapter IV of Part X ICTA to it to the extent that it can utilise the same, and the Buyer
shall procure that the Company shall accept such surrender subject to receipt by the Buyer of a notice in writing from the Seller requiring the acceptance of such surrender and specifying the amount of trading losses or other eligible amounts which
are to be surrendered by way of Group Relief pursuant to the said Chapter IV by the Seller. The Buyer shall procure that the Company takes all such steps as the Seller may reasonably request by notice in writing to the Buyer to permit and effect
such surrender and claim for group relief. The obligations of the Buyer under this paragraph 11 are subject to the Seller, if requested by the Buyer, entering into a group relief agreement with the Company pursuant to section 402(6) of ICTA in
respect of the surrender of Group Relief requested by the Seller. 

  

	11.5	The amount of Group Relief which (for the purposes of paragraph 11.4) may be utilised by the Company shall be determined by the Buyer. 

  

	11.6	The Buyer shall procure that the Company shall pay 30 per cent, of the amount of Group Relief validly surrendered pursuant to paragraph 11.4 and which the Company is
actually able to utilise to reduce the amount of Taxation which would otherwise have been payable by it and in respect of which the Buyer is not entitled to make any claim against the Seller under Part 2 of this Schedule or under the
Warranties in Part 3 of this Schedule on or before the later of (a) the date or dates on which such Taxation would otherwise have been payable by the Company but for such surrender, or if such Taxation has been paid, within three
days of repayment of the same and (b) three days after the date on which HMRC agree in writing to the validity of such Group Relief claim and the reduction in the Company’s Taxation liability for the relevant accounting period as a result
of such Group Relief claim. 

  

	11.7	If any part of the amounts so surrendered shall not be allowed to the Company by way of relief from corporation tax, the Seller shall refund to the Company the amount paid by the
Company in respect of that part of the amount so surrendered immediately on its receiving notice (whether from the Company or the relevant Tax Authority) that such amounts were not so allowed. 

  

 62 

	12.	Tax Returns 

  

	12.1	The Seller or its duly authorised agents shall at the cost of the Seller prepare the tax returns of the Company for the accounting periods ended on 31 December 2004 to the
extent that the same shall not have been prepared before Completion (the “Outstanding Returns”). 

  

	12.2	The Buyer shall at the cost of the Company procure the Company to cause the Outstanding Returns to be authorised, signed and submitted to the appropriate authority without amendment
or with such amendments as the Seller and the Buyer shall agree in writing provided that nothing in this paragraph 12 shall oblige the Buyer to procure the Company to authorise, sign and submit any return which the Buyer, the Company or the
directors of the Company do not consider to be complete and accurate in all respects. The Buyer shall procure that the Company shall give the Seller or its agents all such reasonable assistance as may be required by the Seller by notice in writing
to the Buyer to prepare the Outstanding Returns. 

  

	12.3	If there is any dispute between the Buyer and the Seller as to the amendments which should be made to any Outstanding Return then the dispute shall be referred to the Auditors
(acting as experts and not as arbitrators) and whose decision shall (in the absence of manifest error) be final and binding on the parties but subject always to the proviso to paragraph 12.2. 

  

	12.4	In the event of any conflict between the provisions of this paragraph 12 and paragraph 9, the provisions of paragraph 9 shall prevail. 

 

	12.5	The Buyer will procure that the Company does not (other than at the written request of the Seller or as required by law or any Taxation Authority) amend or withdraw any return or
computation or any claim, election, surrender or consent made by the Company in respect of any accounting periods ended on or before Completion without the prior written consent of the Sellers (such consent not to be unreasonably withheld or
delayed). 

  

	13.	General 

 All payments by the Seller under this
Part 2 of this Schedule 4 will be treated as repayments by the Seller of the consideration paid for the Shares pursuant to this Agreement, provided that this paragraph 13 will not operate in any way to limit the liability of the
Seller under this Part 2 of this Schedule 4. 
  

 63 

 PART 3 - TAX WARRANTIES 
  

	14.	Taxation Warranties 

  

	14.1	Ail notices, returns, computations, registrations and payments which should have been made by the Company for any Taxation purpose have been made within the requisite periods and
are up-to-date, correct and on a proper basis and none of them is or, so far as the Seller is aware, is likely to be the subject of any dispute with any Taxation Authority. 

  

	14.2	The Company has duly and properly made all Taxation claims, disclaimers, elections and surrenders and given all notices and consents and done all other things in respect of Taxation
the making, giving or doing of which was assumed to have been made for the purposes of the balance sheet comprised in the Accounts. 

  

	14.3	The Company has deducted and properly accounted to the appropriate Taxation Authority for all amounts which it has been obliged to deduct or otherwise account in respect of Taxation
(whether under the Pay as You Earn system or otherwise), has complied fully with all reporting requirements relating to all such amounts and has (where required by the applicable Taxation Statute) duly provided certificates of deduction of tax to
the recipients of payments from which deductions have been made. 

  

	14.4	The Company maintains complete, correct and up-to-date records which are necessary for all Taxation purposes. 

  

	14.5	The Company is not involved in any dispute with any Taxation Authority concerning any matter likely to affect in any way the liability of the Company to Taxation and so far as the
Seller is aware there are no circumstances which are likely to give rise to such a dispute. 

  

	14.6	The Company has not within the seven years ending on the date of this Agreement entered into or been a party to any scheme, arrangement or transaction having no commercial purpose
but which is designed partly or wholly for the purpose of avoiding or deferring Taxation or reducing a liability to Taxation. 

  

	14.7	If each of the capital assets of the Company owned at the Accounting Date was disposed of for a consideration equal to the book value of that asset in, or adopted for the purpose
of, the balance sheet comprised in the Accounts or, in the case of assets acquired since the Accounting Date, equal to the consideration given on acquisition, no liability to corporation tax on chargeable gains or balancing charge under the Capital
Allowances Act 2001 would arise (and for this purpose there will be disregarded any relief available to the Company other than amounts falling to be deducted from the consideration receivable under section 38 TCGA). 

  

 64 

	14.8 	Since the Accounting Date no event has occurred outside the ordinary course of business of the Company which has given rise or will or may give rise to any liability to Taxation on
the Company. 

  

	14.9 	The Company is not and has not been since the date of its acquisition by the Seller a close investment-holding company within the meaning of section 13A ICTA.

  

	14.10 	The Company has not within the seven years ending on the date of this Agreement made any loan or advance or effected any transaction falling within section 419, 421 or 422 ICTA or
released or written off or agreed to release or write off the whole or any part of any such loans or advances 

  

	14.11 	The Company has not within the seven years ending on the date of this Agreement made a transfer of value which is or may be liable to Taxation under the provisions of section 94
Inheritance Tax Act 1984. 

  

	14.12 	The Company has not: 

  

	 	14.12.1 	at any time within the six years ending on the date of this Agreement acquired any asset from any company which at the time of the acquisition was a member of the same group of
companies as defined in section 170 TCGA; 

  

	 	14.12.2 	at any time within the seven years ending on the date of this Agreement been a party to any such reconstruction as is described in section 343 ICTA 

  

	 	14.12.3 	surrendered or claimed or agreed or arranged to surrender or claim any amount by way of Group Relief pursuant to sections 402 to 413 (inclusive) ICTA since the Accounting Date and
is not under any obligation (contingent or otherwise) to make any payment for Group Relief or to make repayment of any payment of Group Relief received by the Company on or before Completion; 

  

	 	14.12.4 	at any time within the seven years ending on the date of this Agreement entered into an election pursuant to section 171A or section 179A TCGA or paragraph 66 of Schedule 29 FA 2002
whereby a disposal or deemed disposal of an asset by the Company was treated as having been made by another member of the same group of companies or a disposal of an asset by another member of the same group of companies was treated as having been
made by the Company. 

  

 65 

	14.13 	The Company has not at any time been subject to Taxation in any jurisdiction outside the United Kingdom or had a branch outside the United Kingdom or any permanent establishment (as
that expression is defined in the respective double taxation relief orders current at the date of this Agreement) outside the United Kingdom. 

  

	14.14 	There is no outstanding Inland Revenue charge (as defined in section 237 Inheritance Tax Act 1984) over any asset of the Company or over any of the Shares. 

 

	14.15 	The Company is duly registered, is a taxable person for the purposes of VAT and such registration is not subject to any conditions imposed by or agreed with the Commissioners of
Customs and Excise and has complied in all respects with all statutory requirements, orders, provisions, directions or conditions relating to VAT. 

  

	14.16 	The Company is not and never has been a member of a group for the purposes of section 43 VATA. 

  

	14.17 	The Company has no interest in any asset to which Part XV Value Added Tax Regulations 1995 applies nor has made any election under paragraph 2(1) Schedule 10 VATA.

  

	14.18 	There is set out in the Disclosure Letter an analysis of intangible assets owned by the Company showing those acquired before and those acquired on or after 1 April 2002 and
details of the tax values and accounting values of each asset are also disclosed in the Disclosure Letter. 

  

	14.19 	All documents which are liable to stamp duty and which confer any right upon the Company have been duly stamped and no document which confers any right upon the Company and which is
outside the United Kingdom would attract stamp duty if it were brought into the United Kingdom and there is no liability to any penalty in respect of such duty or circumstances which may give rise to such a penalty. 

  

	14.20 	The Company has not, in the seven years ending on the date of this Agreement, incurred or otherwise been under a liability to stamp duty reserve tax and there are no circumstances
at the date of this Agreement which may result in the Company being so liable. 

  

	14.21 	Within the three years ending on the date of this Agreement, the Company has not made any claim for relief or exemption under section 42 FA 1930, section 151 FA 1995 or section 75,
76 or 77 FA 1986. 

  

 66 

	14.22 	The Company is not registered or liable to be registered for the purposes of Insurance Premium Tax, Landfill Tax, Aggregates Levy or Climate Change Levy. 

 

	14.23 	Stamp duty land tax has been paid in full in respect of all estates or interests in land acquired on or after 1 December 2003 by the Company and there are no contingent
liabilities or requirements to submit a further land transaction and no arrangements capable of giving rise to a further charge to stamp duty land tax. 

  

	14.24 	The Company has not claimed relief from stamp duty land tax under Part 1 (group relief) or Part 2 (reconstruction and acquisition relief) of Schedule 7 FA 2003 in relation to any
estate or interest in land that has been transferred to it. 

  

	14.25 	The Company has not undertaken within the seven years ending on the date of this Agreement, or agreed to undertake, any transaction which is otherwise than on fully arm’s
length terms and there are no circumstances which could cause any Taxation Authority to make or require to be made any adjustment to the terms on which such transaction is treated as taking place. 

  

	14.26 	Documentation is available to demonstrate the criteria taken into account in determining arm’s length terms for transactions between the Company and the Seller or any party or
parties with which the Sellers is connected. 

  

	14.27 	The Company has not by reason of being connected with the Seller obtained the benefit of a loan on more favourable terms than it would have received in the absence of such
relationship. 

  

	14.28 	The Balance Sheet fully provides for all Taxation (on the basis of the rates applicable to the financial year which ended on the Accounting Date) for which the Company is or may
become liable or be assessed to on or in respect of or by reference to: 

  

	 	14.28.1 	the profits, gains, income and earnings (whether actual or deemed) for any period ended on or before the Accounting Date; or 

  

	 	14.28.2 	any distributions (within the meaning of Part VI or section 418 ICTA) made or deemed to be made on or before the Accounting Date; or 

  

	 	14.28.3 	any other transaction entered into or deemed for any Taxation purposes to have been entered into on or before the Accounting Date. 

  

	14.29 	The chargeable gain treated as realised by the Company under section 179 TCGA and which would arise in the Company as a result of the transfer of the 3 leasehold interests in Hull
(which are part of the Property) to the Company and the Company ceasing to be a member of the same group (as defined by section 170 TCGA) as the Seller, in the absence of a valid election under section 179A TCGA to treat such chargeable gain as
realised by the Seller, would be £1,000. 

  

 67 

 SCHEDULE 5 
 Completion Arrangements 
 At Completion the following will take place: 
  

	1.	Items For Delivery 

 The following items will be produced
and delivered by the Seller: 
 Share Transfers 
  

	1.1	Executed transfers of the Shares in favour of the Buyer together with the share certificates for the Shares (or in the case of any lost certificate an indemnity satisfactory to the
Buyer in relation to it). 

  

	1.2	Any waiver, consent or other document necessary to give the Buyer full legal and beneficial ownership of the Shares. 

 Authorisations 
  

	1.3	A copy of a resolution of the board of directors (certified by a duly appointed officer as true and correct) of the Seller authorising the execution of and the performance by the
Seller of its obligations under each of the documents to be executed by it. 

  

	1.4	If the Buyer requests, a power of attorney in the agreed terms by the registered holder of the Shares which enables the Buyer to attend and vote at general meetings of the Company.

 Resignations and Appointments 
  

	1.5	A letter of resignation in the agreed terms from the following officers of the Company: 

  

	 	1.5.1 	Stefania Maria Dorudottir; and 

  

	 	1.5.2 	Daniel Marco Bejarano. 

  

	1.6	A copy of a letter to the Company from its auditors resigning from office with effect from Completion and containing the statement required by section 394 CA 1985, the original
letter being deposited at the registered office of the Company. 

  

 68 

 Company Documentation 
  

	1.7	The certificate of incorporation, any certificate(s) of incorporation on change of name, the common seal (if any) and the statutory books and registers (which will be written up to
but not including Completion) of the Company. 

  

	1.8	All deeds and documents relating to the title of the Company to the Property (which shall be delivered where they are located at HM Land Registry or the Company’s solicitors).

  

	1.9	All cheque books in current use of the Company (which shall be delivered at the Property). 

  

	1.10	All papers, books, records, keys, credit cards and other property (if any) of the Company which are in the possession or under the control of the Seller or any other person who
resigns as a director or secretary of the Company in accordance with this Schedule (which shall be delivered at the Property). 

 Financial 
  

	1.11	A copy of the bank mandate of the Company and copies of bank statements in respect of each account of the Company as at the close of business on the last Business Day prior to
Completion. 

 Miscellaneous 
  

	1.12	A deed in the agreed terms from the Seller acknowledging that neither the Seller nor any Associated Company has any claim against the Company and that the Company has no actual,
contingent or prospective obligation to any such person. 

 Convening of Meetings 
  

	1.13	Minutes of duly convened board meetings of the Company in the agreed terms which shall be executed by the chairman of such meetings immediately following Completion.

  

	2.	Repayment of Monies Owed 

 The Seller will repay,
and will procure that each Associated Company will repay, all amounts owed by the Seller to the Company whether due for payment or not. 
  

 69 

	3.	Payment of Consideration 

 The Buyer will:

  

	 	(i)	pay the Initial Consideration to the Seller’s Solicitors in accordance with clause 2.4 by electronic transfer to: 

 Travers Smith Client Account 
 Account Number:
00859184 
 Sort Code: 60-00-01 
 National Westminster Bank Plc 
 City of London Office 
 1 Princes Street 
 London EC2R 8PA; 
 and 
  

	 	(ii)	(upon Completion or as soon as reasonably practicable, but not less than 5 Business Days, following Completion) pay the Retained Amount into the Retention Account;

  

	 	(iii)	(upon Completion or as soon as reasonably practicable, but not less than 5 Business Days, following Completion) pay the Second Retained Amount into the Second Retention Account; and

  

	 	(iv)	provide to the Seller a copy of a resolution of the board of directors (certified by a duly appointed officer as true and correct) of the Buyer authorising the execution of and the
performance by the Buyer of its obligations under each of the documents to be executed by it. 

  

	4.	Other Documents 

 The parties hereto will execute or
procure the execution of the Retention Account Letter. 
  

 70 

 SCHEDULE 6 
 MCG Graphics Limited – Property 
  

											
	 Description
	  	 Title Holder
	  	 Title Number and
 Quality of Title if
 registered
	  	 Date of Lease and
 Parties to it
	  	 Term and Current
 Rent
	  	 Use

		  		  		  		  		  	
	
	 Unit E, Citadel Trading Park, Kingston upon Hull

						
	Lease	  	the Company	  	 HS114486
 Title Absolute
	  	 9th June
1986
 (1) R.E. Hatfield (Contractors) Limited
 (2) Metal Closures
Group plc
	  	10 May 1986 - 15th August 2107	  	Site for office, factory or warehouse
						
	Lease	  	the Company	  	 HS 160451
 Title Absolute
	  	1st November 1988 (1) R.H. Hatfield (Contractors) Ltd (2) Metal Closures Group Ltd	  	1st November 1988 -15th August 2107	  	Site for office, factory or warehouse
						
	Underlease	  	(currently Omnipack plc)	  	 HS274077
 Title Absolute
	  	 19th March
1997
 (1) Metal Closures Group Ltd
 (2) Omnipack
plc
	  	19th March 1997 -10th August 2107	  	As per the two superior leases

  

 71 

											
	 Car Park at Citadel Trading Park, Kingston upon Hull

						
	Lease	  	(currently Omnipack plc)	  	(currently unregistered but should be registered)	  	 4th August
1997
 (1) Tillnote Ltd (c/n Bonus Electrical Group Ltd)
 (2)
Omnipack plc
	  	14th April 1997- 10th August 2107	  	Parking of roadworthy vehicles belonging to tenant, its employees or customers
	
	 Unit 4, Salterbeck Industrial Estate, Workington

						
	Lease	  	MCG Graphics Ltd	  	Unregistered	  	 2nd July
2002
 (1) CCPL Ltd
 (2) MCG Graphics Ltd
	  	29th March 2002 -28th March 2012	  	B1, B2 and B8 TCPUC 1987
						
	Underlease	  	LMB Express Ltd	  	Unregistered	  	 4th March
2003
 (1) MCG Graphics Ltd
 (2) LMB Express Ltd
	  	26th June 2002 - 22nd March 2012	  	B1, B2 and B8 TCPUC 1987
	
	 4th Floor, Ely Place, London EC1

						
	Lease	  	MCG Graphics Limited	  	Unregistered	  	 7th September
2005 (1) BPP (Hatton Garden) Ltd
 (2) MCG Graphics Ltd
	  	5 years from 6th September 2005	  	B1 TCPUC 1987

  

 72 

 SCHEDULE 7 
 Adjustment of Consideration 
 Part 1 - Completion Accounts 
  

	1.	Completion Accounts 

  

	1.1	The Seller and the Buyer will procure that after Completion, accounts for the Company will be prepared and reported on in accordance with the provisions of this Schedule 7
and based upon the pro-forma set out in Part 2 of this Schedule 7 (“the Completion Accounts”). 

  

	1.2	The Completion Accounts will be an unaudited balance sheet of the Company as at close of business on 31 October 2005. 

  

	1.3	The Completion Accounts shall exclude any effect of change of ownership of the Company contemplated in this Agreement, shall not re-appraise the value of any assets of the Company
as a result of such change of ownership and shall take no account of past balance sheet events occurring, or information becoming available after the close of business on 31 October 2005 and, subject to paragraph 7, will be
prepared: 

  

	 	1.3.1 	in accordance with the historical cost convention and with accounting principles generally accepted in the United Kingdom (including Accounting Standards); 

 

	 	1.3.2 	adopting the principles, practices, bases and policies of accounting applied for the purposes of the Accounts; and 

  

	 	1.3.3 	so as to show a true and fair view of the state of affairs of the Company at the close of business at the close of business on 31 October 2005, 

to the extent there would otherwise be a conflict between the provisions of paragraphs 1.3.1, 1.3.2 and 1.3.3 then the provisions of
paragraph 1.3.2 shall prevail over those of paragraphs 1.3.1 and 1.3.3 and the provisions of paragraph 1.3.1 shall prevail over those of paragraph 1.3.3. 
  

	2.	Procedure 

  

	2.1	 Subject to the Buyer complying with any reasonable hold harmless letter or similar requirements of the Seller or the accountants appointed by the Seller
(“the Seller’s Accountants”) in connection with the release of working papers to the Buyer or accountants appointed by the Buyer (“the Buyer’s Accountants”) forthwith after 

  

 73 

	 	 
Completion the Seller will provide the Buyer with access during normal office hours and with reasonable notice to those assets, documents and records within
its possession or control which the Buyer may reasonably require for the purpose of preparing and agreeing the draft Completion Accounts in the form set out in Part 2 of Schedule 7. 

  

	2.2	Within 40 Business Days after the date of Completion the Buyer will prepare and deliver to the Seller, or procure the preparation and delivery of the Seller of, a draft of the
Completion Accounts which shall also specify in the form set out in Part 2 of this Schedule 7 the amount of the following items: 

  

	 	•	 	Net Assets 

  

	 	•	 	Net Working Capital 

  

	 	•	 	Current Finance Lease liabilities 

  

	 	•	 	Long Term Finance Lease liabilities 

  

	 	•	 	Net Cash 

 each such item being calculated in accordance
with the definition set out in paragraph 5 of this Schedule 7. 
 For the avoidance of doubt once the draft Completion
Accounts have been delivered by the Buyer, the Buyer may not vary or amend the same other than pursuant to the procedure set out in this Schedule 7 for agreeing the Completion Accounts. 
  

	2.3	The Seller will review the draft Completion Accounts as delivered by the Buyer under this Schedule 7, such review to be completed within 20 Business Days of such delivery.
The Seller will notify the Buyer by one written notice within such period whether or not it accepts the draft Completion Accounts as having been duly prepared in accordance with this Schedule 7 and that the value of the Net Assets, Net
Working Capital, Current Finance Lease liabilities, Long Term Finance Lease liabilities and Net Cash have been correctly specified therein. Subject to the Seller complying with any reasonable hold harmless letter or similar requirements of the Buyer
or the Buyer’s Accountants in connection with the release of working papers to the Seller and/or the Seller’s Accountants, the Buyer will ensure that the Seller and/or the Seller’s Accountants are given access during normal office
hours and on reasonable notice to all additional information the Seller may reasonably require to enable the Seller to make its decision. If the Seller does not so notify the Buyer within 20 Business Days of delivery of the draft Completion Accounts
then the Seller will be deemed to have accepted the draft Completion Accounts as complying with Schedule 7. 

  

 74 

	2.4	If the Seller notifies the Buyer of any non-acceptance or objection pursuant to paragraph 2.3 of this Schedule 7 then: 

  

	 	2.4.1	 the Seller will, or will procure that the Seller’s Accountants will, set out in reasonable detail its reasons for such non-acceptance or objection and specify the
adjustments that in its opinion should be made to the draft Completion Accounts in order to comply with paragraph 1 of this Schedule 7 and provide supporting evidence, where appropriate and available, for each such adjustment;

  

	 	2.4.2 	subject to the Buyer complying with any reasonable hold harmless letter or similar requirements of the Seller or the Seller’s Accountants in connection with the release of
working papers to the Buyer and/or the Buyer’s Accountants, the Seller will, or will procure that the Seller’s Accountants will, provide the Buyer with access, during normal office hours and on reasonable notice, to all such documents and
working papers relating to their preparation of the reasons for non-acceptance and proposed adjustments to the Completion Accounts referred to in paragraph 2.4.1 of this Schedule 7; and 

  

	 	2.4.3 	the Seller and the Buyer will use all reasonable endeavours to reach agreement upon the adjustments needed to meet the objections of the Seller or the Seller’s Accountants.

  

	2.5	If the Seller and the Buyer do not reach agreement within 10 Business Days after service of the Seller’s notice of non-acceptance or objection under paragraph 2.3 of
this Schedule 7 then the matter(s) in dispute will be referred to the decision of a single independent chartered accountant or an independent firm of chartered accountants (in either case, the “Independent Accountant”) to be
agreed upon between them or (in default of such agreement within 5 Business Days of such 10 Business Days’ expiry) to be selected (at the instance of either of them) by the President or other senior officer for the time being of the Institute
of Chartered Accountants in England and Wales. The Independent Accountant (whose costs will be paid equally by the Seller and the Buyer) will act as expert (and not as arbitrator) and the decision of the Independent Accountant shall (in the absence
of fraud or manifest error) be final and binding on the parties. It is the parties’ intention that the Independent Accountant will perform his task within 30 Business Days of his appointment and they shall encourage him to do so.

  

 75 

	2.6	The Seller and the Buyer will use all reasonable endeavours to provide all such working papers, documents and other information as is requested by the Independent Accountant and
will procure that the Independent Accountant is requested to state, when giving his decision on the matter(s) referred to him, what adjustments (if any) need to be made to the draft Completion Accounts prepared by the Buyer in order that the
Completion Accounts will comply with Schedule 7. 

  

	2.7	If the Seller and the Buyer reach agreement in writing on (or pursuant to paragraph 2.3 of this Schedule 7 the Seller is deemed to have accepted the draft Completion
Accounts as the Completion Accounts) the final form of the Completion Accounts, or if the Completion Accounts are finally determined at any stage in the procedure set out in this paragraph 2 of this Schedule 7, the Completion Accounts
as so agreed or determined will be the Completion Accounts for the purposes of this Agreement and shall be final and binding on the Seller and the Buyer. 

  

	2.8	The Seller and the Buyer will pay their own costs and expenses in connection with the preparation and agreement of the Completion Accounts including, where applicable, any costs
associated with presentation of their case to the Independent Accountant. 

  

	3.	Adjustment Of Consideration 

  

	3.1	When the Completion Accounts have become final and binding pursuant to paragraph 2 of this Schedule 7 the Consideration will be subject to the following adjustments:

  

	 	3.1.1 	there will be deducted on a pound for pound basis the amount, if any, by which the Net Assets are less than £1,700,000; 

  

	 	3.1.2 	there will be deducted on a pound for pound basis the amount, if any, by which Net Working Capital is less than £675,000 and there will be added on a pound for pound basis the
amount (if any) by which the Net Working Capital is greater than £825,000; 

  

	 	3.1.3 	there will be deducted on a pound for pound basis the amount, if any, by which Current Finance Lease liabilities are greater than £173,000; 

  

	 	3.1.4 	there will be deducted the amount, if any, by which Long Term Finance Lease liabilities are greater than £155,000; and 

  

	 	3.1.5 	there will be added any positive amount of Net Cash and there will be deducted any negative amount of Net Cash. 

  

 76 

	3.2	The amount of any net reduction or increase in the Consideration resulting from paragraphs 3.1.1 to 3.1.5 above taken together will be paid by the Seller to the Buyer
or by the Buyer to the Seller in accordance with paragraph 6 within 5 Business Days of the Completion Accounts becoming final and binding and any amount not paid when due shall carry interest in accordance with clause 10 of this
Agreement 

  

	4.	Provided paragraph 3 of this Schedule 7 has been complied with in full by the Seller, the Buyer will have no claim against the Seller under this Agreement in respect
of any liability or deficiency to the extent that such liability or deficiency is taken into account in the Completion Accounts but otherwise preparation and acceptance by the Buyer of the Completion Accounts or their determination in accordance
with paragraph 2 of this Schedule 7 will be without prejudice to any claim which the Buyer may have against the Seller in respect of any breach of the Warranties or under Part 2 of Schedule 4.

  

	5.	Definitions for the Completion Accounts 

 In
determining the amount of the figures required in the Completion Accounts, the following definitions shall apply: 
  

	 	•	 	the “Net Assets” shall be the total assets, less total liabilities and less cash, as set out in the Completion Accounts; 

  

	 	•	 	the “Net Working Capital” shall be the current assets (excluding any cash, all income tax related balances and any sums due from the Seller) less current
liabilities (excluding all income tax related balances, and any amounts due to the Seller and the Current Finance Lease liabilities); 

  

	 	•	 	the “Current Finance Lease” liabilities shall be the amounts due within less than one year in relation to assets held under lease finance; 

 

	 	•	 	the “Long Term Finance Lease” liabilities shall be as extracted from the Completion Accounts; and 

  

	 	•	 	 the “Net Cash” shall be Cash less Debt where (i) “Cash” means the aggregate of all cash of the Company on deposit or current
account and/or in hand plus any uncleared cheques or bank transfers received from third parties and any cash equivalents of the Company less any uncleared cheques or bank transfers sent to third parties) as set out in the Completion Accounts; and
(ii) “Debt” means the aggregate of all bank borrowings (together with any interest accrued thereon and any costs, fees and penalties payable by the Company on early 

  

 77 

	 	 
repayment) of the Company (and excluding, for the avoidance of doubt only, Current Finance Lease liabilities and any Long Term Finance Lease liabilities).

 All of these figures shall be derived from the relevant figures in the Completion Accounts. 
  

	6.	All sums payable by the Buyer under this Schedule will be paid in the same manner as the Consideration and the same will be good and sufficient discharge and the Buyer will not be
concerned as to the application of the monies so paid. Payment by the Seller (pursuant to this Schedule) to the client account of the Buyer’s Solicitors will be a good and sufficient discharge and the Seller will not be concerned as to the
application of the monies so paid. 

  

	7.	The parties acknowledge that at Completion the Company holds cash on behalf of the Buyer (in bank account number 25058797, sort code 56-00-23) in the sum of £125,000 (as
reduced by payments out authorised by the Buyer) and that such amount of cash is and will at all times remain the property of the Buyer and will be excluded from the Completion Accounts and will not form part of any calculation of Net Assets, Net
Working Capital, Current Finance Lease liabilities, Long Term Finance Lease liabilities or Net Cash. 

  

	8.	The Seller warrants to the Seller that since the close of business on 31 October 2005: 

  

	8.1	no dividend or distribution has been paid, made or declared by the Company; 

  

	8.2	no payments have been made or have been agreed to be made by the Company to any Insider in respect of any share capital or other securities of the Company being issued, redeemed,
purchased or repaid, and no other return of capital has taken place; 

  

	8.3	no payments have been made or been agreed to be made (including, without limitation, in respect of management fees) by the Company to any Insider; 

  

	8.4	no assets have been transferred to or liabilities assumed, indemnified or incurred for the benefit of any Insider by the Company; 

  

	8.5	the Company has not waived any amount owed to it by any Insider, or any interest thereon; 

  

	8.6	the guarantee from the Seller in favour of the Company’s bank in relation to the obligations of the Company to such bank has remained in place; and 

  

	8.7	the Company has carried on its business in the ordinary course so as to maintain the business as a going concern. 

  

 78 

 Part 2 - Pro forma Completion Accounts 
  

			
	 Land and Buildings
	  	X
	 Plant & Machinery
	  	X
		  	 
	 Total Fixed Assets
	  	X
	 Stock
	  	X
	 Trade Debtors
	  	X
	 Prepayments
	  	X
	 Amount due from parent
	  	X
	 Deferred tax asset
	  	X
	 Cash/(overdraft)
	  	X
		  	 
	 Total current assets
	  	X
	 Trade Creditors
	  	X
	 Accruals
	  	X
	 Amount due to parent
	  	X
	 Current Lease Obligations
	  	X
	 Current Tax Payable
	  	X
		  	 
	 Total current liabilities
	  	X
	 Net Current Assets
	  	X
	 Long Term Lease Obligations
	  	X
		  	 
	 NET ASSETS
	  	X
		  	 
	 Net working capital:
	  	X
	 Stock
	  	X
	 Trade Debtors
	  	X
	 Prepayments
	  	X
	 Trade creditors
	  	X
	 Accruals
	  	X
		  	 
	 Total net working capital
	  	X
		  	 
	 Key numbers:
	  	
	 Net Assets
	  	X
	 Net Working Capital
	  	X
	 Current Finance Lease Obligations
	  	X
	 Long Term Finance Lease Obligations
	  	X
	 Net Cash
	  	X

  

 79 

 SCHEDULE 8 
 Part 1 - Provisions regarding Retention Fund 
 The Retained Amount will be paid on or as soon as practicable, but not
less than 5 Business Days, following Completion by the Buyer into a joint on-demand interest bearing deposit account (the “Retention Account”) with Barclays Bank Plc in the names of the Buyer’s Solicitors and the Seller’s
Solicitors (the “Retention Fund Holders”) who will hold the Retained Amount as stakeholders upon trust for the Buyer and the Seller on the following terms: 
  

	1.	If prior to the expiration of the period of 18 months after the Completion Date (the “Warranty Retention Period” ending on the “Warranty Retention
Release Date”): 

  

	1.1	a Relevant Claim, a Tax Covenant Claim or a claim under clause 8.2 (each a “Retention Claim”) is determined (as such term is defined in Schedule 9) or
has been agreed expressly in writing by the Seller and such determination or agreement requires a payment from the Retention Account to be made to the Buyer; or 

  

	1.2	a Second Retention Fund Deficit exists (as defined in Part 2 of this Schedule 8), 

 then the Buyer and the Seller shall instruct the Retention Fund Holders to procure that there will be paid to the Buyer’s Solicitors from the
Retention Account; 
  

	1.3	in connection with paragraph 1.1 the amount so determined or agreed as being due to the Buyer or such lesser amount as is in the Retention Account at the date of payment to
the Buyer under this paragraph 1; and/or 

  

	1.4	in connection with paragraph 1.2 the amount of the Second Retention Fund Deficit or such lesser amount as is in the Retention Account at the date of payment to the Buyer
under this paragraph 1. 

 In the case of a payment pursuant to paragraph 1.1, such payment shall include any
costs which may be agreed or awarded in any determination in favour of the Buyer. 
  

 80 

	2.	If prior to the Warranty Retention Release Date the Buyer has notified the Seller in accordance with clause 6.3 of any Retention Claim and such Retention Claim has not at the
Warranty Retention Release Date been determined or agreed in writing between the Buyer and the Seller: 

  

	2.1	the Buyer and the Seller shall use all reasonable endeavours to procure that the Held-over Amount (as defined below) is, if practicable, determined or agreed within 20 Business Days
of the Warranty Retention Release Date in accordance with paragraph 4 unless such Held-over Amount has not previously been agreed for the purposes of this Schedule; 

  

	2.2	the Held-over Amount shall continue to be held in the Retention Account pending the determination or written agreement by the Buyer and the Seller of the Retention Claim;

  

	2.3	the amount (if any) representing the difference between the Held-over Amount and the amount in the Retention Account at the later of the Warranty Retention Release Date and the date
on which the Held-over Amount is agreed or determined in accordance with paragraph 4 shall be paid to the Seller’s Solicitors; and 

  

	2.4	once all Retention Claims have been determined or agreed in writing by the Seller and the Buyer, any amount remaining in the Retention Account shall be paid to the Seller’s
Solicitors. 

  

	3.	If on the Warranty Retention Release Date no Retention Claim has been notified to the Seller in accordance with the terms of this Agreement, or no such Retention Claim has been so
notified and which remains to be determined or agreed, then the amount (if any) in the Retention Account at such date shall be paid to the Seller’s Solicitors. 

  

	4.	For the purposes of paragraph 2, the “Held-over Amount” means that proportion including, where applicable, the whole of the outstanding balance of the
Retained Amount determined: 

  

	4.1	by the Buyer, with the express agreement in writing of the Seller; or 

  

	4.2	by Counsel, as judged reasonable in the circumstances, on the facts made available to him or her by or on behalf of the Seller or the Buyer. For this purpose Counsel shall be
Queen’s Counsel of a minimum of 10 years’ call as selected by the Buyer with the agreement in writing of the Seller or where no such agreement can be reached as selected by the Chairman for the time being of the General Council of the Bar
on the written application of either the Buyer or the Seller, the fees of Counsel being apportioned between the parties as Counsel shall decide. 

  

	5.	 Where any payment is made to the Buyer out of the Retention Account as provided in this Part 1 of Schedule 8, the Buyer shall at the same time be
entitled to a 

  

 81 

	 	 
corresponding proportion of the interest accrued on the Retention Account SAVE THAT any payment made to the Buyer pursuant to paragraph 1.2 shall
entitle the Buyer in respect of such amount of the payment from the Retained Amount as relates to a Second Retention Fund Deficit to interest only on the basis described in paragraph 3 of Part 2 of this Schedule 8. Otherwise all
interest accrued on the Retention Account shall be payable to the Seller at the time of payment to the Seller out of the Retention Account in accordance with this Schedule 8. All payments of interest to the Buyer or the Seller shall be made
in accordance with their respective instructions and shall be less any tax on such interest for which the Retention Fund Holders may be accountable or is otherwise legally required to be deducted. 

  

	6.	The Seller and the Buyer will execute the Retention Account Letter and deliver it to its addressees, and will take promptly all such steps and give all such other written
instructions, as are necessary or desirable to give effect to the provisions of this Part 1 of Schedule 8. 

  

	7.	The payment of any sum to the Seller’s Solicitors shall be an absolute discharge of the Buyer of its obligation to pay that amount of the Consideration as is equal to the
amount so paid. The payment of any sum to the Buyer’s Solicitors shall be an absolute discharge of the Seller (to the extent paid) of its obligations (if any) in respect of the relevant Retention Claim and/or Second Retention Fund Deficit (as
appropriate). 

  

	8.	Any payments falling to be made pursuant to this Part 1 of Schedule 8 shall be made within 5 Business Days of the obligation to make such payment or procure the making
of such payment arising. 

 Part 2 - Provisions regarding Second Retention Fund 
 The Second Retained Amount will be paid on or as soon as practicable, but not less than 5 Business Days, following Completion by the Buyer into a joint on-demand
interest bearing deposit account (the “Second Retention Account”) with Barclays Bank Plc in the name of the Retention Fund Holders who will hold the Second Retained Amount as stakeholders upon trust for the Buyer and the Seller on
the following terms: 
  

	1.	 If prior to 11:59pm on 31 December 2006 or such later date as may be agreed pursuant to paragraph 1.4.5.2 of Schedule 10 any claim for
payment arising from this Agreement pursuant to paragraph 1.4.3 of Schedule 10 (Pension Provisions) becomes due for payment then the Buyer and the Seller shall instruct 

  

 82 

	 	 
the Retention Fund Holders to procure that there will be paid to the Buyer’s Solicitors from the Second Retention the amount so due to the Buyer or the
Company or such lesser amount as is in the Second Retention Account at the date of payment to the Buyer under this paragraph 1. 

  

	2.	Any sum remaining in the Second Retention Account on 1 January 2007 or such later date as may be agreed pursuant to paragraph 1.4.5.2 of Schedule 10 shall
be paid to the Seller’s Solicitors. 

  

	3.	Where any payment is made to the Buyer or the Company out of the Second Retention Account as provided in this Schedule 8, the Buyer shall at the same time be entitled to a
corresponding proportion of the interest accrued on the Second Retention Account in the period between the date on which the liabilities of the Pension Scheme are transferred out pursuant to paragraph 1.4 of Schedule 10 and the date of
payment pursuant to paragraph 1. Otherwise all interest accrued on the Second Retention Account shall be payable to the Seller at the time of payment to the Seller out of the Second Retention Account in accordance with this Part 2 of
Schedule 8. All payments of interest to the Buyer or the Seller shall be made in accordance with their respective instructions and shall be less any tax on such interest for which the Retention Fund Holders may be accountable or is otherwise
legally required to be deducted. 

  

	4.	The provisions of this Schedule 8 will not prejudice the right of the Buyer to recover the excess of any payment pursuant to Schedule 10 to the extent not recovered
out of the Second Retention Account. In the event that the Second Retained Amount (plus any accrued interest on such amount) is insufficient to satisfy the liability of the Buyer under Schedule 10 (the “Second Retention Fund
Deficit”) then the Buyer may claim for payment of up to £250,000 of the Second Retention Fund Deficit out of the Retention Account pursuant to paragraph 1.2 of Part 1 of this Schedule 8. 

 

	5.	The amount of money in the Second Retention Account is not to be regarded as imposing a limit on the amount which may be claimed by the Buyer under Schedule 10.

  

	6.	The Seller and the Buyer will execute the Retention Account Letter and deliver it to its addressees, and will take promptly all such steps and give all such other written
instructions, as are necessary or desirable to give effect to the provisions of this Part 2 of Schedule 8. 

  

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	7.	The payment of any sum to the Seller’s Solicitors shall be an absolute discharge of the Buyer of its obligation to pay that amount of the Consideration as is equal to the
amount so paid. The payment of any sum to the Buyer’s Solicitors shall be an absolute discharge of the Seller (to the extent paid) of its obligation (if any) in respect of paragraph 1.4.3 of Schedule 10. 

 

	8.	Any payments falling to be made pursuant to this Part 2 of Schedule 8 shall be made within 5 Business Days of the obligation to make such payment or procure the making
of such payment arising. 

  

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 SCHEDULE 9 
 Limitations on Relevant Claims 
  

	1	INTERPRETATION 

  

	1.1	In this Schedule (unless the context otherwise requires): 

  

	 	1.1.1 	“determination” means a final determination by a court of competent jurisdiction or a final award or decision of a duly appointed arbitrator or expert (as the case
may be) and “determined” shall be construed accordingly; and 

  

	 	1.1.2 	references to the “Relevant Date” shall mean the date on which any Relevant Claim is finally settled or determined. 

  

	2.	PROVISION OF INFORMATION 

  

	2.1	Upon any Relevant Claim being made by a third party against the Company, the Buyer shall, and shall procure, where relevant, that the Company shall (at the Seller’s expense):

  

	2.2	make available to the Seller and its advisers and agents all such information and assistance in relation to the subject matter of the Relevant Claim (including access to personnel,
properties, management, records, papers, documents and data of the Company) as the Seller may reasonably request; and 

  

	2.3	use reasonable endeavours to procure that the auditors (both past and then present) of the Company make available their audit working papers in respect of audits of the accounts of
the Company for any relevant accounting period in connection with such claim. 

  

	3.	ALLOWANCES, PROVISIONS AND RESERVES 

  

	3.1	The Seller shall not be liable for any loss or amount in respect of any Relevant Claim to the extent that: 

  

	 	3.1.1 	 any allowance, provision or reserve has been made in the Completion Accounts in respect of the fact, matter, event or circumstances to or from 

  

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which such loss or amount relates, or to the extent that payment or discharge of the relevant matter has been taken into account therein; or

  

	 	3.1.2 	any allowance, provision or reserve made in the Completion Accounts in respect of the fact, matter, event or circumstances to or from which such loss or amount relates, is
insufficient by reason of any change to legislation, any increase in rates of taxation or any change in the published practice of a revenue authority, in each case made on and/or after Completion with retrospective effect. 

 

	4.	CHANGES ON AND/OR AFTER COMPLETION 

  

	4.1	The Seller shall not be liable for any Relevant Claim to the extent that it arises, or is increased or extended by: 

  

	 	4.1.1 	any decision of any court or tribunal made or delivered after Completion or the passing or coming into force of or any change in any legislation, regulation, directive, requirement
or any published practice of any government, government department or agency or regulatory body (including the withdrawal of any published extra statutory concession of a revenue authority), or any increase in rates of taxation, in each case made on
and/or after Completion; 

  

	 	4.1.2 	any change in the accounting reference date of the Buyer or the Company made on and/or after Completion; 

  

	 	4.1.3 	any change in any accounting basis, policy, practice or approach of, or applicable to, the Company or the Buyer, or any change in the way an accounting basis is adapted for tax
purposes, in each case, made on and/or after Completion other than to comply with any law or regulation in force and applicable to the Company immediately prior to Completion or as necessary to ensure compliance by the Company with generally
accepted accounting practice in the United Kingdom in force and applicable to the Company immediately prior to Completion; 

  

	 	4.1.4 	any cessation of, or any material change in, the nature or conduct of any business carried on by the Buyer or the Company, occurring on and/or after Completion;

  

	 	4.1.5 	 any voluntary act, omission, transaction or arrangement carried out or effected on and/or after Completion by, or at the request and approval of, 

  

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the Buyer (or any of its directors, officers, employees or agents), otherwise than in (a) the ordinary course of business of the Company as carried on
at Completion, (b) to comply with any law or regulation in force at Completion, or (c) at the written request of the Seller whether pursuant to this Agreement or otherwise; or 

  

	 	4.1.6 	the Company disclaiming any part of the benefit of capital or other allowances against taxation claimed on or before Completion other than at the request of the Seller whether
pursuant to this Agreement or otherwise. 

  

	5.	THIRD PARTY CLAIMS 

  

	5.1	In respect of any fact, matter, event or circumstance which comes to the notice of the Buyer which might reasonably be expected to result in a claim against it or the Company (a
“Third Party Claim” which expression shall not include any Tax Claim as defined in Part 1 of Schedule 4 to which the provisions of Schedule 4 shall apply to the exclusion of this paragraph 5) and which,
in turn, might reasonably be expected to result in a claim against the Seller, the Buyer shall (and shall procure, where relevant, that the Company shall) as soon as is reasonably practicable give written notice and reasonable details of the Third
Party Claim to the Seller and shall: 

  

	 	5.1.1 	allow the Seller and its advisers and agents to investigate the Third Party Claim (including whether and to what extent any amount is payable in respect thereof);

  

	 	5.1.2 	consult in good faith with the Seller as to any ways in which the Third Party Claim might be avoided, disputed, resisted, mitigated, settled, compromised, defended or appealed;

  

	 	5.1.3 	take such action, at the written request of the Seller, as the Seller may reasonably require to avoid, dispute, resist, mitigate, settle, compromise, defend or appeal the Third
Party Claim, subject to the Buyer and the Company being indemnified to the Buyer’s reasonable satisfaction by the Seller in respect of all losses and damages and reasonable costs and expenses (including reasonable legal costs) which may thereby
be incurred by the Buyer or the Company; and 

  

	 	5.1.4 	not require the Seller to make any payment in respect of any claim until the Third Party Claim has been satisfied, settled, determined or withdrawn. 

  

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 This paragraph 5 shall not apply if the Seller confirms in writing that it does not wish to be
involved in such Third Party Claim or has been wound up at the time the Third Party Claim is made. 
  

	6.	REMEDIABLE BREACHES 

 The Seller shall not be liable
for any Relevant Claim to the extent that the fact, matter, event or circumstance giving rise to such Relevant Claim is remediable and is remedied by, or at the expense of, the Seller (in each case at no cost to the Company or the Buyer) within 60
days of the date on which written notice of such claim is given to the Seller pursuant to this Agreement. 
  

	7.	REIMBURSEMENT OF CLAIMS 

 If, after the Seller has
made any payment in respect of a Relevant Claim, the Company or the Buyer becomes entitled to recover from a third party (including any tax authority) (whether by payment, discount, credit, relief or otherwise) a sum which is referable to that
payment less costs and expenses incurred in obtaining such recovery and any tax thereon (the “Recovery Amount”), then the Buyer shall forthwith repay (or procure the repayment of) to the Seller such sum of the Recovery Amount as
does not exceed the sum paid by the Seller to the extent not previously repaid. 
  

	8.	INSURANCE 

  

	8.1	Subject to paragraph 8.2, the Seller shall not be liable for any Relevant Claim if the Buyer or the Company is insured against any loss, damage or liability which is the
basis of such Relevant Claim under the terms of any insurance policy unless and until the insured company has made a claim against the insurers under such policy and that claim has been settled, agreed or otherwise determined. The amount recoverable
under the Relevant Claim shall be reduced by any amount which is recovered under such policy. For the avoidance of doubt, this paragraph 8.1 shall, without limitation, apply to any amount which is recovered under the Environmental Insurance.

  

	8.2	 Paragraph 8.1 shall not apply to any warranty and indemnity insurance taken out by the Buyer in relation to the Warranties and Tax Covenant in this Agreement
but the effect of this paragraph 8.2 shall not be to increase the liability of the Seller 

  

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under this Agreement to any extent whatsoever beyond the aggregate maximum amounts set out in clauses 6. 

  

	9.	UNASCERTAINABLE CLAIMS 

 The Seller shall not be
liable for any Relevant Claim which arises by reason of a liability which, at the time when written notice of the Relevant Claim is given to the Seller, is contingent only or is otherwise not capable of being quantified and the Seller shall not be
liable to make any payment in respect of such Relevant Claim unless and until the liability becomes an actual liability or (as the case may be) becomes capable of being quantified. For the avoidance of doubt, nothing in this paragraph 8 shall
prejudice the right of the Buyer to serve written notice of an alleged claim on the Seller or, if relevant, commence proceedings against the Seller. 
  

	10.	ENVIRONMENTAL CLAIMS 

 The Seller shall not be
liable for any Relevant Claim to the extent that such Relevant Claim is for the cost of the Environmental Works. 
  

	11.	MITIGATION 

 The Buyer shall (and shall procure that
the Company shall) take all reasonable action to mitigate any loss suffered by it or the Company which would, could or might result in a Relevant Claim against the Seller. 
  

	12.	REDUCTION IN CONSIDERATION 

 Any amount paid by the
Seller in respect of any Relevant Claim shall be treated as a reduction in the Consideration to the extent permitted by law. 
  

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 SCHEDULE 10 
 Pension Provisions 
  

	1.	Pensions 

  

	1.1	The Pension Scheme will be at least 100% funded on the FRS17 Accounting Basis as at the Pension Completion Date with such funding level being calculated within 30 days of the
Pension Completion Date. The funding level calculation will be certified by the Actuary and absent manifest error will be agreed by the Buyer. 

  

	1.2	Subject to paragraph 1.3.2 below: 

  

	 	1.2.1 	in calculating the funding level of the Pension Scheme on the FRS17 Accounting Basis the assets of the Pension Scheme will be notionally split by the Actuary between the SGS Parties
and the Non-SGS Parties on the FRS17 Accounting Basis in order to determine the amounts available to secure liabilities in respect of each group of members in accordance with the Actuary’s Letter; and 

  

	 	1.2.2 	any FRS17 Surplus shall be notionally allocated to the Non-SGS Parties. 

  

	1.3	If the Pension Scheme is not 100% funded on the FRS17 Accounting Basis in accordance with paragraph 1.1 above: 

  

	 	1.3.1 	the Seller shall pay such sums to the Pension Scheme (or, if that is not possible for any reason, to the Buyer) within 45 days of the Pension Completion Date together with interest
or other timing adjustment as specified in the Actuary’s Letter up to the date of payment (the “Deficit Payment”). In the event that the Deficit Payment is not paid in accordance with this clause, the value of the FRS17 Deficit
will be recalculated by the Actuary on the basis set out in the Actuary’s Letter at a date specified by the Buyer (replacing the Pension Completion Date with that date in the calculation) and any remaining deficit will be payable in accordance
with this clause (replacing the Pension Completion Date with that date in the calculation); or 

  

	 	1.3.2 	 the Buyer and the Seller may at their discretion agree that the FRS17 Deficit will not be made good by the Seller under paragraph 1.3.1 above but instead the
FRS 17 Deficit shall be notionally allocated entirely to the Non-SGS Parties, so reducing the amount of assets available to meet the 

  

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obligations of the Pension Scheme in respect of the Non-SGS Parties under paragraph 1.6 below. 

  

	1.4	In the event of the liabilities of the Pension Scheme being transferred out in any way (including buy out with an insurance company) in the course of the Pension Scheme entering
into wind-up or otherwise in accordance with its governing documentation, and in particular the Trust Deed and Rules dated 4th April 1997, as amended: 

  

	 	1.4.1 	the assets of the Pension Scheme allocated to the SGS Parties in accordance with paragraph 1.2 above shall be used to meet all reasonable costs, fees, charges and expenses
which are incurred by the Pension Scheme trustees in transferring liabilities out of the Pension Scheme in respect of the SGS Parties; 

  

	 	1.4.2 	the Buyer will be liable for costs, fees, charges, debts and expenses, including without limitation any debt which is due under section 75 of the Pensions Act 1995, as amended,
which are incurred in transferring liabilities out of the Pension Scheme in respect of the SGS Parties in excess of the Pension Scheme assets set out in paragraph 1.4.1 above, up to an initial cap of £1,000,000 (the “Initial
Cap”); and 

  

	 	1.4.3 	the Seller will be liable for all such costs (in respect of the SGS Parties) that exceed the Initial Cap up to the sum of £750,000 provided that if Punter Southall &
Co. is replaced as an adviser to the trustees of the Pension Scheme, the Seller shall not be liable for any fees of the adviser which replaces Punter Southall & Co. in respect of transferring liabilities out of the Pension Scheme in respect
of the SGS Parties which exceed the level of fees which Punter Southall & Co. estimates it would charge for the same work. 

  

	 	1.4.4 	The Buyer will be liable for the balance of any costs (in respect of the SGS Parties) described in paragraph 1.4.2 above to the extent that they exceed the sum of
£1,750,000. 

  

	 	1.4.5 	In accordance with Part 2 of Schedule 8, the Second Retention Amount shall be paid into the Second Retention Account on Completion for the purpose of the Seller
satisfying its obligation under paragraph 1.4.3 above. The balance of this sum, if any, which is not required to satisfy the Seller’s liability shall be repaid to the Seller on the earlier of: 

  

	 	1.4.5.1 	the date on which the liabilities under the Pension Scheme have, in the reasonable opinion of the Buyer, all been secured; and 

  

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	 	1.4.5.2 	31st December 2006 or such later date as may be agreed by the Seller (such agreement not to be unreasonably withheld) if the Buyer is actively in the process of transferring
the liabilities out of the Pension Scheme. 

  

	1.5	Notwithstanding the provisions of paragraph 1.4 above, if the Seller proposes an alternative arrangement whereby instead of the transfers contemplated by paragraph 1.4
above a third party is substituted as principal employer of the Pensions Scheme or otherwise assumes the liabilities in respect of the Pension Scheme the Buyer may agree to such proposal (such agreement not to be unreasonably withheld) PROVIDED
THAT: 

  

	 	1.5.1 	the Seller must present such an initial proposal to the Buyer on or before 30th November 2005; 

  

	 	1.5.2 	the proposal does not cause the Buyer or the Company to incur either a higher level of cost or a higher level of exposure to potential claims or liabilities than would be incurred
under paragraph 1.4 above; 

  

	 	1.5.3 	neither the Buyer nor the Company shall have any further liability or potential liability whatsoever in respect of the Pension Scheme following the implementation of the proposal;

  

	 	1.5.4 	a clearance statement is obtained from the Pensions Regulator in respect of the proposal on or before 31st March 2006, with all material facts of the proposal having been
disclosed to the Pensions Regulator, confirming that neither the Buyer nor the Company will be subject to either a “contribution notice” or a “financial support direction” in respect of the Pension Scheme; and

  

	 	1.5.5 	all relevant statutory and regulatory approvals are obtained in respect of the proposal on or before 31st March 2006 including, without limitation, the approval of HM
Revenue & Customs where relevant. 

  

	1.6	 The Seller shall be liable for all costs, fees, charges, debts and expenses, including without limitation any debt which is due under section 75 of the Pensions Act
1995, as amended, which are incurred in respect of meeting the obligations of the Pension Scheme with regard to the Non-SGS Parties, in excess of the assets of the Pension Scheme notionally allocated to the Non-SGS Parties in accordance with
paragraph 1.2 above. At Completion, the Seller will deposit the sum of £575,000 with Punter Southall & Co. and, within 45 days of the Pension Completion Date, the Seller shall 

  

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pay the amount of any FRS17 Deficit in respect of the Non-SGS Parties in accordance with paragraph 1.3 above to the Pension Scheme (or, if that is not
possible for any reason, to the Buyer), for this purpose. These sums shall not be a cap on the liability of the Seller under this paragraph 1.6 and the Seller shall continue to be liable for any such charges that arise in respect of meeting
the obligations of the Pension Scheme with regard to the Non-SGS Parties notwithstanding that they exceed the amount deposited. 

  

	1.7	Subject to paragraph 1.8 below, no withdrawal or refund of the amount deposited in accordance with paragraph 1.6 will be made other than for the purposes of meeting
the costs under that clause until the Pension Scheme has, in the reasonable opinion of the Buyer, met all of its obligations in respect of the Non-SGS Parties. 

  

	1.8	The sum of £575,000 which is deposited with Punter Southall & Co. pursuant to paragraph 1.6 above shall be notionally split by the Actuary between each of the
Non-SGS Parties, such split being subject to agreement with the Buyer, so that an amount is attributed to each of the Non-SGS Parties relevant to the cost of buying- out his or her liabilities with an insurance company. On each occasion that the
liabilities of one of the Non-SGS Parties are transferred out of the Pension Scheme, the share of the deposit attributable to that individual, to the extent if any it has not been required to secure the individual’s liabilities, will be
refunded to the Seller. For the avoidance of doubt, the Seller shall be immediately and directly liable for any sum which is required to secure a Non-SGS Party’s liabilities which are transferred out of the Pension Scheme and which exceed the
amount that has been attributed to that Non-SGS Party by virtue of the notional split of the deposit by the Actuary. 

  

	1.9	The Seller hereby undertakes to ensure that: 

  

	 	1.9.1 	all Non-SGS Parties and all liabilities associated with their membership shall be transferred out of the Pension Scheme before 31st March 2006; 

  

	 	1.9.2 	any liabilities remaining at 31st March 2006 or such later date as may be agreed by the Buyer (such agreement not to be unreasonably withheld) if the Seller is actively in the
process of transferring the liabilities out of the Pension Scheme, may be secured by the Buyer in any way it chooses and the Seller shall be liable for all additional costs arising from this in accordance with this paragraph 1.9.

  

	1.10	 The entire amount of any assets allocated to the Non-SGS Parties in the notional split made by the Actuary in accordance with paragraph 1.2, which remains in
the Pension Scheme after all the Non-SGS Parties’ liabilities have been transferred out 

  

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of the Pension Scheme in accordance with paragraph 1.9, shall be refunded to the Seller within 45 days of 31st March 2006 or such later date as
may have been agreed in accordance with paragraph 1.9.2 together with interest as specified in the Actuary’s Letter up to the date of payment. 

  

	1.11	Until 31st March 2006, the Buyer agrees that it will provide such reasonable co-operation to the Seller and its nominees as is appropriate in developing and implementing any
proposals suggested by the Seller for the transfer of all Non-SGS Parties and all liabilities associated with their membership out of the Pension Scheme. Unless and until the Buyer agrees to the proposal referred to in paragraph 1.5 or
determines on or after 31st March 2006 that it cannot be pursued for any reason (even if, for the avoidance of doubt, it has decided before 31st March 2006 that it will not be agreeing to that proposal) the Buyer will respond to (and will
procure that the Company will respond to) questions from the trustee of the Pension Scheme prior to 31st March 2006 concerning the Buyer’s intention in relation to the Pension Scheme by explaining that there are a number of options under
review and that no decisions have yet been made unless the Buyer has been advised in writing by its legal advisers that it would be a breach of a legal obligation to so respond. For the avoidance of doubt, the Buyer shall have no liability
whatsoever for any costs, fees, charges, debts and expenses which are incurred in respect of the transfer of the Non-SGS Parties out of the Pension Scheme. 

  

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