Document:

exv10w1

 

ADDITIONAL BENEFITS PLAN OF

DEL MONTE CORPORATION

[As Amended Through January 1, 2005 and Restated Effective as of December 20, 2002]

 

 

ADDITIONAL BENEFITS PLAN OF

DEL MONTE CORPORATION

INDEX

	 	 	 	 	 
	SECTION 1 PURPOSE OF PLAN
	 	 	1	 
	SECTION 2 DEFINITIONS
	 	 	1	 
	2.1 “Actuarial Equivalent”
	 	 	1	 
	2.2 “Administrator or Plan Administrator”
	 	 	1	 
	2.3 “AIP”
	 	 	1	 
	2.4 “Additional Benefit”
	 	 	1	 
	2.5 “Board of Directors”
	 	 	1	 
	2.6 “Claimant” shall have the definition set forth in Section 8.1.
	 	 	2	 
	2.7 “Code”
	 	 	2	 
	2.8 “Committee”
	 	 	2	 
	2.9 “Corporation”
	 	 	2	 
	2.10 “Covered Individual”
	 	 	2	 
	2.11 “Defined Benefit Plan”
	 	 	2	 
	2.12 “Defined Benefit Plan (A)”
	 	 	2	 
	2.13 “Defined Benefit Plan (B)”
	 	 	2	 
	2.14 “Effective Date”
	 	 	2	 
	2.15 “Eligibility Date”
	 	 	2	 
	2.16 “Eligible Individual”
	 	 	3	 
	2.17 “Employee”
	 	 	3	 
	2.18 “Individual Account Plan”
	 	 	3	 
	2.19 “Participating Company”
	 	 	3	 
	2.20 “Plan”
	 	 	3	 
	2.21 “Prior Plan” means the Additional Benefits Plan of RJR Nabisco, Inc
	 	 	3	 
	2.22 “Spinco Employee”
	 	 	3	 
	SECTION 3 PROVISIONS APPLICABLE TO DEFINED BENEFIT PLANS (A)
	 	 	4	 
	3.1 Eligibility
	 	 	4	 
	3.2 Amount of Benefits
	 	 	4	 
	3.3 Form of Benefit Payments
	 	 	5	 
	3.4 Timing of Benefit Payments
	 	 	6	 
	SECTION 4 PROVISIONS APPLICABLE TO DEFINED BENEFIT PLANS (B)
	 	 	6	 
	4.1 Eligibility
	 	 	6	 
	4.2 Amount of Benefits
	 	 	6	 
	4.3 Form of Benefit Payments.
	 	 	7	 
	4.4 Timing of Benefit Payment
	 	 	8	 
	SECTION 5 PROVISIONS APPLICABLE TO INDIVIDUAL ACCOUNT PLANS
	 	 	8	 
	5.1 Eligibility
	 	 	8	 
	5.2 Amount of Additional Benefits
	 	 	9	 
	5.3 Form of Additional Benefits
	 	 	9	 
	5.4 Additional Benefits Election
	 	 	10	 
	5.5 No Withdrawals
	 	 	10	 
	5.6 Accounting
	 	 	10	 

 

 

	 	 	 	 	 
	SECTION 6 AMENDMENT AND TERMINATION
	 	 	11	 
	6.1 Amendment.
	 	 	11	 
	6.2 Termination.
	 	 	11	 
	SECTION 7 ADMINISTRATION AND AUTHORITY
	 	 	11	 
	7.1 Corporation and Board of Directors
	 	 	11	 
	7.2 Committee; Organization.
	 	 	12	 
	7.3 Powers and Responsibility.
	 	 	12	 
	7.4 Records of Committee.
	 	 	14	 
	7.5 Reporting and Disclosure.
	 	 	15	 
	7.6 Correction of the Plan.
	 	 	15	 
	7.7 Indemnification.
	 	 	15	 
	7.8 Interpretation of Plan.
	 	 	15	 
	SECTION 8 CLAIMS PROCEDURES
	 	 	15	 
	8.1 Filing of a claim for benefits
	 	 	15	 
	8.2 Notification to Claimant of decision
	 	 	16	 
	8.3 Procedure for review
	 	 	16	 
	8.4 Decision on review
	 	 	16	 
	8.5 Action by authorized representative of Claimant
	 	 	17	 
	8.6 Effect of Extensions
	 	 	17	 
	SECTION 9 MISCELLANEOUS
	 	 	17	 
	9.1 Assignment
	 	 	17	 
	9.2 Governing Law
	 	 	17	 
	9.3 Plan Independent of Employment Relationship
	 	 	17	 
	9.4 Non-Duplication of Benefit
	 	 	18	 
	9.5 Unfunded Plan
	 	 	18	 
	9.6 Receipt and Release for Payment.
	 	 	18	 
	SECTION 10 PRIOR BENEFITS
	 	 	18	 
	10.1 Benefits Prior to Effective Date
	 	 	18	 
	10.2 Protected Benefits
	 	 	18	 

-ii-

 

ADDITIONAL BENEFITS PLAN OF

DEL MONTE CORPORATION

[Effective as of December 20, 2002 and as amended through January 1, 2005]

SECTION 1 PURPOSE OF PLAN

     This Plan is adopted principally for the purpose of restoring benefit payments to those
Covered Individuals under each Defined Benefit Plan and those Eligible Individuals under each
Individual Account Plan whose benefits would otherwise be reduced by the limitations imposed by
Section 401(a)(17) or any other applicable section of the Code, and any annual incentive award or
salary deferred until Termination of Employment or who has an annual incentive award or bonus
payment excluded under Defined Benefit Plan B. The Plan was first effective as of January 1, 1990
and restated in 1996. This restated plan document is a continuation of the Plan effective as of
December 20, 2002 and reflects the merger of the Supplemental Benefits Plan of Del Monte
Corporation (“SUPP”) into this Plan effective as of January 1, 2005. The benefits of Covered
Individuals and Eligible Individuals who commenced Plan benefits or who terminated employment with
the Corporation prior to December 20, 2002 are provided under the terms of the Plan prior to
December 20, 2002. The benefits of Covered Individuals who commenced benefits under the SUPP or
who terminated employment with the Corporation prior to January 1, 2005 are provided under the
terms of the SUPP prior to January 1, 2005 and are paid under this Plan from and after January 1,
2005. This Plan also intends to comply with the American Jobs Creation Act of 2004 and Section
409A of the Code as of January 1, 2005, subject to amendment to comply with regulations and
guidance issued thereunder from time to time.

SECTION 2 DEFINITIONS

     When used herein, the words and phrases defined hereinafter shall have the following meaning
unless a different meaning is clearly required by the context. Terms used but not defined herein
which are defined in a Defined Benefit Plan or in an Individual Account Plan, as applicable, shall
have the meanings assigned to them in such Defined Benefit Plan or Individual Account Plan.

     2.1 “Actuarial Equivalent” means a benefit of equivalent value as determined
using the factors under the applicable Defined Benefit Plan.

     2.2 “Administrator or Plan Administrator” means the administrator set forth in
Section 7.3.

     2.3 “AIP”. means the Del Monte Annual Incentive Plan or any successor bonus
plan providing annual bonus awards, or any predecessor incentive award plan of the
Corporation or any predecessor.

     2.4 “Additional Benefit”. means the benefit or benefits payable under Section 5
of this Plan.

     2.5 “Board of Directors”. means the Board of Directors of Del Monte
Corporation.

 

 

     2.6 “Claimant” shall have the definition set forth in Section 8.1.

     2.7 “Code”. means the Internal Revenue Code of 1986, as amended, or as it may
be amended from time to time.

     2.8 “Committee”. means the Del Monte Corporation Employee Benefits Committee.

     2.9 “Corporation”. means Del Monte Corporation in respect of its employees,
each Participating Company in respect of its employees, and any successor to any of said
companies if such successor be the Corporation or an Affiliated Company.

     2.10 “Covered Individual”. means each individual who becomes entitled to
payment of a benefit under a Defined Benefit Plan by reason of death, retirement or
termination of employment of an Employee, including a Participant, his or her Surviving
Spouse or Beneficiary which benefit is subject to reductions that can be restored under
Sections 3 or 4 of this Plan and which benefit is not provided or replaced under the terms
of a written agreement between the Employee and the Corporation providing such benefits in
lieu of this Plan. A Covered Individual does not include a Spinco Employee from the
Effective Date until January 1, 2005.

     2.11 “Defined Benefit Plan”. means either or both Defined Benefit Plan (A) and
(B), as the context requires.

     2.12 “Defined Benefit Plan (A)”. means the Del Monte Corporation Retirement
Plan for Hourly Employees and any other defined benefit retirement plan using a final
average compensation formula intended to qualify under Section 401(a) of the Code and
adopted by the Corporation or a Participating Company.

     2.13 “Defined Benefit Plan (B)”. means the Del Monte Corporation Retirement
Plan for Salaried Employees and any other defined benefit retirement plan which principally
uses a career compensation formula or cash balance plan formula based on a personal
retirement account and intended to qualify under Section 401(a) of the Code and adopted by
the Corporation or a Participating Company.

     2.14 “Effective Date”. means December 20, 2002 with respect to the provisions
set forth in this Plan, except as otherwise set forth herein.

     2.15 “Eligibility Date”. means determining when an Eligible Individual is first
eligible to participate in the Plan under Section 5, which is when an employee of the
Corporation:

          (a) is eligible to participate in the Individual Account Plan whether or not the
individual has elected to participate in the Individual Account Plan, and

-2-

 

          (b) has met the service requirements of the Individual Account Plan to be fully vested
in the employer matching contributions, whether or not the individual has actually
participated in the Individual Account Plan, and

          (c) when the compensation recognized for purposes of the Individual Account Plan is
first limited by Section 401(a)(17) or would be limited if the individual participated in
the Individual Account Plan, in the Plan Year. For purposes of this sub-Section 2.15(3),
compensation is first limited on the last day of the payroll period during which an Eligible
Individual’s compensation first exceeds the annual limitations imposed by Section
401(a)(17) of the Code or, if earlier, the November 15 of a Plan Year in which the Plan
Administrator determines that an Eligible Individual’s compensation is likely to exceed such
limitations by the end of the Plan Year.

     2.16 “Eligible Individual”. means a participant in an Individual Account Plan,
or any individual who is eligible to be a participant in an Individual Account Plan, who has
had an Eligibility Date and whose benefit in addition to that provided by the Individual
Account Plan is not provided under the terms of a written agreement between the Employee and
the Corporation providing such benefits in lieu of this Plan. An Eligible Individual does
not include a Spinco Employee from the Effective Date until January 1, 2005.

     2.17 “Employee”. means an individual who is an employee of the Corporation or a
Participating Company and who is covered by or eligible to participate in a Defined Benefit
Plan or an Individual Account Plan.

     2.18 “Individual Account Plan”. means the Del Monte Savings Plan, the Del Monte
Saver Plan (formerly the Del Monte Certain Hourly Savings Plan), and any other individual
account savings plan intended to qualify under Section 401(a) of the Code and adopted by the
Corporation or a Participating Company.

     2.19 “Participating Company”. means any domestic company more than 50% of the
voting stock of which is directly or indirectly owned by Del Monte Corporation which is
designated as a Participating Company in this Plan by the Committee.

     2.20 “Plan”. means the Additional Benefits Plan of Del Monte Corporation, as
set forth herein or as may be hereafter amended.

     2.21 “Prior Plan” means the Additional Benefits Plan of RJR Nabisco, Inc. and
Participating Companies as of December 31, 1989 which is intended as a predecessor plan of
the Plan and for which prior benefits and elections were recognized under this Plan from and
after January 1, 1990.

     2.22 “Spinco Employee”. means an individual who is an employee of a Corporation
business unit that was included in the group of former Heinz businesses that became part of
Del Monte Corporation as a result of the Merger under the Agreement and Plan of Merger dated
as of June 12, 2002 among H. J. Heinz Company, SKF Foods Inc.,

-3-

 

Del Monte Corporation and Del Monte Foods Company and who participates, or is eligible
to participate, in the qualified plans provided for employees at such locations prior to
January 1, 2004 unless the individual becomes eligible to participate in the plans
specifically identified in Sections 2.12 or 2.13 of this Plan or is eligible to participate
in the plans identified in Section 2.18 of this Plan as a “SF Employee”, as defined in such
plan. As of January 1, 2004, a Spinco Employee means an employee who is a “PA Employee”, as
defined in the Del Monte Savings Plan.

SECTION 3 PROVISIONS APPLICABLE TO DEFINED BENEFIT PLANS (A)

     3.1 Eligibility

     All Employees from and after the Effective Date who participate in a Defined Benefit Plan (A)
are eligible to receive benefits under this Plan computed in accordance with Section 3.2 upon
commencement of benefits under such Defined Benefit Plan (A); provided, that no benefit is payable
under this Plan unless the Employee is fully vested in his or her benefit under such Defined
Benefit Plan (A).

     3.2 Amount of Benefits 

          (a) The amount of the monthly benefit payable under the Plan to a Covered Individual
shall be the difference of (1) the monthly benefit that would be provided to such Covered
Individual under Defined Benefit Plan (A) if such benefit were calculated as set forth in
subsection (b) below; minus (2) the monthly benefit actually payable to such Covered
Individual from such Defined Benefit Plan (A); minus (prior to January 1, 2005) (3) the
monthly benefit payable to such Covered Individual under the Supplemental Benefits Plan of
Del Monte Corporation.

          (b) For purposes of determining the amount in (a)(1) above, the following shall apply:

	 	(1)	 	For purposes of determining Average Final Compensation
(“AFC”) under such Defined Benefit Plan (A), compensation shall
include, as applicable, (i) the amount of any deferred annual bonus
under the AIP earned during the period for which AFC is determined;
and (ii) the amount of any deferred base salary that is deferred with
respect to a year that is included in the period for which AFC is
determined.
	 
	 	(2)	 	Compensation shall be determined without regard to the
limits imposed by Section 401(a)(17) of the Code.
	 
	 	(3)	 	The limitations imposed by Section 415 of the Code
shall be disregarded.

-4-

 

          (c) The monthly benefit amounts calculated in accordance with subsection (a) above
shall be calculated in the form of a single life annuity, using the same actuarial
assumptions as are used by the applicable Defined Benefit Plan (A).

          (d) In the event a Covered Individual’s benefits payable from a Defined Benefit Plan
(A) are increased subsequent to retirement due to an increase in the maximum benefits
payable under Section 415 of the Code, the benefits payable hereunder, if made in the form
of an annuity, will be appropriately reduced. If the benefit under this Plan was paid in
the form of a lump sum, no adjustment will be made.

     3.3 Form of Benefit Payments 

          (a) After the benefit has been determined under Section 3.2, it will be paid to a
Covered Individual as follows:

	 	(1)	 	to a married Covered Individual, in the form of a
Joint and 50% Survivor (Spouse) Annuity which is the Actuarial
Equivalent of a Single Life Annuity; or
	 
	 	(2)	 	to a single Covered Individual, in the form of a
Single Life Annuity but if a beneficiary has been designated under
this Plan by the Employee, in the form of a Joint and 50% Survivor
Annuity which is the Actuarial Equivalent of a Single Life Annuity;
	 
	 	(3)	 	provided, however, whenever the Actuarial Equivalent
present value of the benefit determined under Section 3.2 or payable
under this Plan is $10,000 or less, the benefit will be paid in the
form of a lump sum cash payment.

          (b) Notwithstanding the foregoing, the Administrator in its sole discretion may alter
the form of the monthly benefit under this Plan to a form of annuity payment that is
substantially the same form as that elected by the Covered Individual under the Defined
Benefit Plan (A), on an Actuarial Equivalent basis and, for periods on and after January 1,
2005, as may be permitted under Section 409A of the Code and regulations thereunder.

          (c) Where the Covered Individual has terminated employment and is receiving a Joint and
Survivor Annuity, the Covered Individual shall have the option, exercisable by a writing
filed with the Administrator at any time and from time to time after his or her Annuity
Starting Date and prior to his or her death, to redesignate the Contingent Annuitant
designated or deemed designated on his Annuity Starting Date. Such option may be exercised
without the consent of the previous Contingent Annuitant. If a Covered Individual exercises
such option to redesignate, the survivor’s annuity payable after his or her death shall be
paid to the Contingent Annuitant (which term may include the estate of such Contingent
Annuitant) last designated prior to his or her death;

-5-

 

however, such survivor’s annuity shall be payable only if the individual designated as
the Contingent Annuitant on his or her Annuity Starting Date survives the Covered
Individual, and shall be paid only for the remaining lifetime of the individual designated
as the Contingent Annuitant on his or her Annuity Starting Date.

     3.4 Timing of Benefit Payments

          (a) The monthly benefit under this Plan is payable at the later of (i) attainment of
the earliest retirement date under the Defined Benefit Plan (A) or (ii) the first of the
month next following the Covered Individual’s date of termination of employment with the
Corporation or any subsidiary.

          (b) To the extent that the Defined Benefit Plan (A) benefit commences prior to Normal
Retirement Date under such plan, the benefit under this Plan will be subject to the same
reductions for early commencement of benefit, if any, as applicable to the Defined Benefit
Plan (A) benefit.

          (c) Notwithstanding the foregoing, the Administrator in its sole discretion may alter
the commencement of the benefit payment under this Plan to coincide with the actual date of
commencement of benefit payments under the Defined Benefit Plan (A) for the Covered
Individual, and, for periods on and after January 1, 2005, as may be permitted under
Section 409A of the Code and regulations thereunder.

SECTION 4 PROVISIONS APPLICABLE TO DEFINED BENEFIT PLANS (B)

     4.1 Eligibility

     All Employees from and after the Effective Date who participate in a Defined Benefit Plan (B)
are eligible to receive benefits under this Plan computed in accordance with Section 4.2 upon
commencement of benefits under such Defined Benefit Plan (B); provided that no benefit is payable
under this Plan unless the Employee is fully vested in his or her benefit under such Defined
Benefit Plan (B).

     4.2 Amount of Benefits

          (a) The amount of the benefit payable under the Plan to a Covered Individual shall be
the difference, each expressed as a Credit Balance, of (1) the benefit that would be
provided to such Covered Individual under Defined Benefit Plan (B) if such benefit were
calculated as set forth in subsection (b) below; minus (2) the benefit actually payable to
such Covered Individual from such Defined Benefit Plan (B); minus (prior to January 1, 2005)
(3) the benefit payable to such Covered Individual under the Supplemental Benefits Plan of
Del Monte Corporation.

          (b) For purposes of determining the amount in (a)(1) above, the following shall apply:

-6-

 

	 	(1)	 	Compensation under such Defined Benefit Plan (B) shall
include, as applicable, (i) the amount of any deferred annual bonus
under the AIP that would have been received during the period for
which Compensation is determined if such bonus had not been deferred;
and (ii) the amount of any deferred base salary that would have been
received during the period for which compensation is determined if
such base salary had not been deferred.
	 
	 	(2)	 	Compensation under such Defined Benefit Plan (B) shall
be determined without regard to the limits imposed by Section
401(a)(17) of the Code.
	 
	 	(3)	 	The limitations imposed by Section 415 of the Code
shall be disregarded.

          (c) In the event a Covered Individual’s benefits payable from a Defined Benefit Plan
(B) are increased subsequent to retirement due to an increase in the maximum benefits
payable under Section 415 of the Code, the benefits payable hereunder, if made in the form
of an annuity, will be appropriately reduced. If the benefit under this Plan was paid in
the form of a lump sum, no adjustment will be made.

          (d) If the retirement benefit payable to a Covered Individual under the Defined Benefit
Plan (B) is based upon such Plan’s “alternate,” “transitional” or “Preserved” form of
benefit which is derived from an Average Final Compensation formula of a Defined Benefit
Plan (A) or similar such plan, the provisions of Section 3.2 of this Plan shall be
applicable in determining the benefit payable under this Plan if such provisions provide a
greater benefit and, if so, the terms of this Section 4.2
(including Section 4.2(d)) shall
not apply; provided, however, that the benefit calculated under Section 3.2 of this Plan
shall be limited to the benefit calculated through April 30, 1992, consistent with the
provisions to freeze the benefit accrual of the Preserved Benefit under the Corporation’s
Retirement Plan for Salaried Employees.

     4.3 Form of Benefit Payments.

          (a) After the benefit has been determined under Section 4.2, it will be paid to a
Covered Individual as follows:

	 	(1)	 	to a Covered Individual, in the form of a lump sum
equal to the Credit Balance determined under Section 4.2;
	 
	 	(2)	 	provided, however, whenever the present value of the
benefit determined under Section 4.2 expressed in the form of a Credit
Balance or payable under this Plan is $10,000 or less, the benefit
will be paid in the form of a lump sum cash payment.

-7-

 

          (b) Notwithstanding the foregoing, the Administrator in its sole discretion may alter
the form of the benefit under this Plan to a form of payment substantially the same form as
that elected by the Covered Individual under the Defined Benefit Plan (B) on an Actuarial
Equivalent basis, and, for periods on and after January 1, 2005, as may be permitted under
Section 409A of the Code and regulations thereunder.

          (c) Where the Covered Individual is receiving a Joint and Survivor Annuity, he or she
shall have the option, exercisable by a writing filed with the Administrator at any time and
from time to time after his or her Annuity Starting Date and prior to the Covered
Individual’s death, to redesignate the Contingent Annuitant designated or deemed designated
on his or her Annuity Starting Date. Such option may be exercised without the consent of
the previous Contingent Annuitant. If a Covered Individual exercised such option to
redesignate, the survivor’s annuity payable after his or her death shall be paid to the
Contingent Annuitant (which term includes the estate of such Contingent Annuitant) last
designated prior to his or her death; however, such survivor’s annuity shall be payable only
if the individual designated as the Contingent Annuitant on his Annuity Starting Date
survives the Covered Individual, and shall be paid only for the remaining lifetime of the
individual designated as the Contingent Annuitant on his or her Annuity Starting Date.

     4.4 Timing of Benefit Payment

          (a) The benefit under this Plan is payable at the later of (i) attainment of the
earliest retirement date under the Defined Benefit Plan (B) or (ii) the first of the month
coincident with or next following the Employee’s Severance Date.

          (b) To the extent that the Defined Benefit Plan (B) benefit commences prior to Normal
Retirement Date under such plan, the benefit under this Plan will be subject to the same
reductions for early commencement of benefit, if any, as applicable to the Defined Benefit
Plan (B) benefit.

          (c) Notwithstanding the foregoing, the Administrator in its sole discretion may alter
the commencement of the benefit payment under this Plan to coincide with the commencement of
benefit payments under the Defined Benefit Plan (B) for the Covered Individual, and, for
periods on and after January 1, 2005, as may be permitted under Section 409A of the Code and
regulations thereunder.

SECTION 5 PROVISIONS APPLICABLE TO INDIVIDUAL ACCOUNT PLANS

     5.1 Eligibility

     All Eligible Individuals on or after the Effective Date are eligible to receive Additional
Benefits under this Plan computed in accordance with Section 5.2; provided, that no benefit may be
paid unless the Eligible Individual is fully Vested, as defined in Section 5.2 or would be fully
Vested if the Eligible Individual were participating in an Individual Account Plan.

-8-

 

     5.2 Amount of Additional Benefits

          (a) The Amount of the Additional Benefit, if any, shall be equal to (1) the amount by
which the compensation of the Eligible Individual which would be recognized for purposes of
determining benefits under the Individual Account Plan (as if the Eligible Individual had
enrolled in the Individual Account Plan when first eligible) exceeds the limitations imposed
by Section 401(a)(17) of the Code, multiplied by (2) the maximum percentage of compensation
which is subject to Corporation matching contribution upon the deferral or contribution to
the underlying Individual Account Plan by a participant in such plan and multiplied by (3)
the maximum percentage of Corporation matching contributions in the underlying Individual
Account Plan plus (4) an amount equal to interest as calculated
under Section 5.6(b) applied
to the foregoing amount for the period when the Eligible Individual’s compensation
recognized under the Individual Account Plan exceeds the limitations under Section
401(a)(17) of the Code. The amount of the Additional Benefit is determined and awarded as
of December 31 of each year for that calendar year; provided, that (i) no amount is
determined for a calendar year during which the Eligible Individual is not fully Vested, or
would not be fully Vested if participating in the Individual Account Plan, in the
Corporation Matching Contributions in the underlying Individual Account Plan (such full
vesting being referred to herein as “Vested”), (ii) the amount of the Additional Benefit for
an Eligible Individual who first becomes Vested during a calendar year shall be determined
as of December 31 of that calendar year for that calendar year and for any preceding
calendar year during which the person was eligible to participate in an Individual Account
and was not Vested, (iii) the amount of the Additional Benefit for an Eligible Individual
who dies, retires, or separates from employment with the Corporation (“Termination”) shall
be determined as soon as practicable following such Termination and, if determined prior to
December 31, shall be paid in the calendar year of Termination, and (iv) effective as of
January 1, 2002, no amount of the Additional Benefit for an Eligible Individual will include
any amount of “catch-up contribution” as defined under the Individual Account Plan.

          (b) In addition, if any Eligible Individual had an Additional Benefit deferred under
the Prior Plan as of December 31, 1989, such Additional Benefit shall be credited to an
account maintained solely on the books of the Corporation for such purpose and shall be
treated as if such Additional Benefit had been deferred under this Plan
from and after January 1, 1990.

     5.3 Form of Additional Benefits

     Subject to earlier payment under Section 5.4, any benefit payable under Section 5.2 of this
Plan shall be distributed in the form of a lump sum cash payment in the January of the calendar
year immediately following the calendar year in which an Eligible Individual dies, retires,
separates from employment with the Corporation or is eligible for a distribution under the
Individual Account Plan on account of disability and, for periods on and after January 1, 2005, if
the Eligible Individual becomes disabled within the meaning of Section 409A of the Code and the
regulations thereunder.

-9-

 

     5.4 Additional Benefits Election

          (a) Every year for which it is determined that an Eligible Individual is entitled to an
Additional Benefit described in Section 5.2, such Eligible Individual shall elect the manner
in which such benefits are to be treated. The Committee may accept any such election
conditioned on the Eligible Individual actually earning eligible compensation in excess of
the limits of Code section 401(a)(17).

          (b) An Eligible Individual shall elect either to receive such Additional Benefit in
cash in the calendar year following the year in which an Additional Benefit is determined
and awarded under Section 5.2(a) or to have such Additional Benefit deferred and become
payable under this Plan upon termination of employment, retirement, death or disability as
provided in Section 5.3.

          (c) If an Eligible Individual entitled to make such an election fails to make such
election, receipt of the Additional Benefit shall become payable under this Plan in cash
after the end of the calendar year in which an Additional Benefit is determined and awarded
under Section 5.2(a).

          (d) Any election made pursuant to 5.4(b) shall be made in writing and filed with the
Administrator no later than the end of the calendar year preceding the calendar year in
which an Additional Benefit is determined and awarded under Section 5.2(a); provided, that
for an individual who first became an Eligible Individual during a calendar year, such
election shall be made not later than thirty (30) days after his Eligibility Date; provided
that for periods on and after January 1, 2005, such election will otherwise comply with
Section 409A of the Code and regulations thereunder. Notwithstanding the foregoing, if the
Committee determines that an individual may first become an Eligible Individual during a
calendar year, the Committee may accept an individual’s election at any time prior to the
individual’s Eligibility Date, conditioned on the individual actually attaining an
Eligibility Date in accordance with rules established by the Committee.

     5.5 No Withdrawals

     Any credited amounts, as specified in paragraph 5.6(b), which have not been designated by a
prior Eligible Individual election to be distributed in the following year, may not be withdrawn
from this Plan while the Eligible Individual is actively employed by the Corporation or any
affiliated company.

     5.6 Accounting

          (a) An amount equal to the Additional Benefit as determined under Section 5.2 will be
credited to an account maintained for such purpose on the books of the Corporation.

          (b) Interest will be credited at a monthly rate equal to the rate of return reported by
the Individual Account Plan for the Interest Income Fund (or its equivalent if

-10-

 

fund options under the Individual Account Plan change) for the calendar month for which
interest is to be credited or for the calendar month for which the most recent rate is
available if the current month’s rate is not available at the date interest is determined.
If the Eligible Individual has elected to defer receipt of the Additional Benefit, the
account will be credited annually as of December 31 for the year ended December 31 with
interest using the balance of the account as of January 1 of such calendar year. For the
Additional Benefit, if any, of any Eligible Individual for a calendar year, interest will be
credited by applying interest to the portion of the Additional Benefit that would have been
allocated to an account in the Individual Account Plan if the applicable limitations did not
apply. If the Eligible Individual has elected to receive the Additional Benefit in cash in
the following year, interest shall be credited on the Additional Benefit through the
calendar year for which such Additional Benefit is awarded.

SECTION 6 AMENDMENT AND TERMINATION

     6.1 Amendment.

     The provisions of the Plan may be amended at any time and from time to time by the Board of
Directors and as the Board of Directors may delegate such authority under Article 7; provided that
no amendment shall adversely affect the rights of any participant receiving benefits at the time of
such amendment.

     6.2 Termination.

     The Corporation expects the Plan to be continued indefinitely, but it reserves the right to
terminate or suspend the Plan at any time by action of the Board of Directors. In either event,
the Administrator and each Participating Company shall be promptly advised of such decision in
writing.

SECTION 7 ADMINISTRATION AND AUTHORITY

     7.1 Corporation and Board of Directors

          (a) General Responsibilities: The Corporation, as Plan Sponsor acting by its
Board, shall have the following authority and responsibilities:

	 	(1)	 	to establish, amend and modify the Plan and its plan
design;
	 
	 	(2)	 	to terminate the Plan, in whole or in part;
	 
	 	(3)	 	to merge, spin-off, or otherwise combine the Plan with
any other plan of the Corporation and its Affiliated Companies or in

-11-

 

	 	 	 	connection with any acquisition or disposition of Corporation
business, to the extent permitted by law;
	 	(4)	 	to determine the amount, level and timing of
Corporation contributions to the Plan, if any; and
	 
	 	(5)	 	to exercise all other authority and responsibility of
a plan sponsor generally.

          (b) Other Responsibilities. The Corporation, acting by its Board of Directors,
also has the following responsibility with respect to the Plan to appoint the members of the
Committee and to monitor its performance.

          (c) Authority of Participating Companies. Notwithstanding anything herein to
the contrary, and in addition to the authority and responsibilities specifically given to
the Participating Companies in the Plan, the Corporation, in its sole discretion, may grant
the Participating Companies such authority and charge them with such responsibilities as the
Corporation deems appropriate.

     7.2 Committee; Organization.

          (a) The Committee as Administrator shall conduct its business in accordance with rules
and procedures it has established and in accordance with the directions of the Board of
Directors. Its members shall serve as such without compensation.

          (b) In addition to those powers set forth elsewhere in the Plan, the Committee may
appoint such agents, who need not be members of such Committee, as it may deem necessary for
the effective performance of its duties and may delegate to such agents such of its powers
and duties, whether ministerial or interpretive, as the Committee may deem expedient or
appropriate. The compensation of such agents who are not full-time employees of a
Participating Company shall be fixed by the Committee. Any such person may resign by
delivering a written resignation to the delegating Named Fiduciary or will be deemed to have
resigned upon termination of employment with all Participating Companies or upon transfer to
a position which has no relation to the responsibilities and duties delegated by the Named
Fiduciary. Vacancies created by any reason may be filled by the appropriate Named Fiduciary
or the assigned responsibilities may be reabsorbed or redelegated by the Named Fiduciary.

     7.3 Powers and Responsibility.

     The Committee shall be the “administrator” as set forth in Section 3(16) of ERISA and shall
have complete control of the administration of the Plan hereunder, with all powers necessary to
enable it properly to carry out its duties as set forth by the Board of Directors and in the Plan
and shall be a Named Fiduciary. The Committee shall have the following duties and
responsibilities, without limiting such duties and responsibilities under Section 3(16) of ERISA,

-12-

 

with respect to the Plan as a “Benefit Plan”, which includes all qualified and non-qualified
employee benefit plans and welfare benefit plans of the Corporation:

          (a) to act as the Plan Administrator, as defined by the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”), for each Benefit Plan and, as such, to be the
named fiduciary for each ERISA plan;

          (b) to amend or modify any Benefit Plan or to undertake any correction of terms or
actions regarding a Benefit Plan that may not have been in compliance, to bring the Benefit
Plan into compliance with applicable law, including statutes, regulations, administrative
pronouncements or judicial decisions;

          (c) to cause the filing of all tax returns and other filings required by any government
agency with respect to each Benefit Plan, to cause any communications to participants and
beneficiaries required by law to be made, to cause applicable fiduciary bonding to be
obtained, and to direct legal compliance of each Benefit Plan generally;

          (d) to determine the eligibility for and benefits delivered under each Benefit Plan,
and in connection therewith, to interpret the terms of each Benefit Plan, and to establish,
revise and monitor procedures for determination of claims for benefits, and to make the
final decision under any such claims procedure, unless otherwise duly delegated to another
person or body;

          (e) to engage service providers for any Benefit Plan, including, actuaries,
accountants, insurance carriers, recordkeepers, third party administrators, consultants and
other professionals;

          (f) to modify, amend, terminate, merge or otherwise administer any Benefit Plan to
comply with and carry out the terms and conditions of any written contract or agreement of
sale or acquisition, duly authorized by the Board, of the Corporation or any subsidiary,
division, line of business or other portion of the assets of the Corporation;

          (g) to implement any decision of the Board to establish, modify or amend any Benefit
Plan;

          (h) to implement any decision of the Board to merge or transfer assets and liabilities
with any other existing or newly established Corporation-sponsored Benefit Plan;

          (i) to implement any decision of the Board to terminate any Benefit Plan, in whole or
in part;

          (j) to cause the appropriate data to be maintained with respect to each Benefit Plan
and to cause such data to be provided to and obtained from each administrator, recordkeeper,
service provider, trustee or other party administering such Benefit Plan;

-13-

 

          (k) to advise the Board with respect to changes in the Benefit Plans, establishment of
any new Benefit Plan, decreases or increases to benefits, including the overall level of
coverage or benefits, the benefit forms or options, the level of participant contribution
rates, the Corporation’s contributions or funding for any Benefit Plan, as necessary or
appropriate;

          (l) to report periodically to, and as requested by, the Board with respect to
significant developments concerning the Benefit Plans and employee benefits generally;

          (m) to act as the named investment fiduciary for each of the Benefit Plans for which
some or all of the benefit obligation is funded through a trust or other investment vehicle
separate from the general assets of the Corporation (the “Funded Plans”) and to appoint
investment managers for the Funded Plans, as appropriate;

          (n) to establish investment guidelines for any Funded Plans consistent with the legal
responsibilities under ERISA, including diversification of investments and, as appropriate,
compliance with ERISA Section 404(c) as amended and the investment options available to
participants in a Benefit Plan;

          (o) to monitor the performance of the trustee, investment managers and other investment
fiduciaries of any Funded Plan;

          (p) to adopt and change, as needed, actuarial assumptions and rates as may be required
to determine benefits under any Benefit Plan;

          (q) to delegate to the appropriate persons, committee, officer, manager or employee of
the Corporation such of its duties and responsibilities as it may deem appropriate,
including, authority for all routine, normal and administrative actions for each Benefit
Plan, and any third party may rely on any certification of delegation issued by the Chairman
or the Committee; and

          (r) to take all other actions requested or directed by the Board in the furtherance of
the duties and responsibilities delegated hereunder.

     7.4 Records of Committee.

          (a) Acts and determinations of the Committee shall be duly recorded by its Secretary or
under his or her supervision, and all such records (including records necessary to
demonstrate compliance with the nondiscrimination requirements of the Code), together with
such other documents as may be necessary for the administration of the Plan, shall be
maintained by or at the direction of the Secretary of the Corporation or the Committee;

          (b) Every person dealing with the Plan shall be entitled to rely conclusively upon any
notices, directions, orders, requests, certifications and instructions received from the
Committee and signed by a member or a duly designated agent of the

-14-

 

Committee reasonably believed to be properly executed, and shall act and be fully
protected in acting in accordance therewith.

     7.5 Reporting and Disclosure.

     The Committee shall maintain the records necessary for the proper operation of the Plan,
including individual and group records relating to participants and beneficiaries. To the extent
required by law or at the direction of the Committee, such records shall be made available to the
Participating Companies and to each participant and beneficiary for examination during normal
business hours except that a participant or beneficiary shall examine only such records as pertain
exclusively to the examining participant or beneficiary and the Plan.

     7.6 Correction of the Plan.

     The Committee shall correct any defect, reconcile any inconsistency or supply any omission
with respect to the Plan. Determinations made by the Committee shall be final, conclusive and
binding on all affected parties.

     7.7 Indemnification.

     The Corporation shall indemnify each member of the Board, the Committee, and any other person
to whom any fiduciary responsibility with respect to the Plan is allocated or delegated, from and
against any and all liabilities, costs and expenses incurred by such persons as a result of any act
or omission to act in connection with the performance of their fiduciary duties, responsibilities
and obligations under the Plan and under ERISA, except for liabilities and claims arising from such
fiduciary’s willful misconduct, gross negligence or bad faith. For such purpose, the Corporation
may obtain, pay for and keep current a policy or policies of insurance, which insurance, shall not,
however, release the Corporation of liability under this provision.

     7.8 Interpretation of Plan.

     To the extent appropriate and not inconsistent with the intent and terms of this Plan, the
terms and provisions of the underlying Defined Benefit Plan or Individual Account Plan shall be
applied to the determination of benefits under this Plan.

SECTION 8 CLAIMS PROCEDURES

     8.1 Filing of a claim for benefits.

     If a Participant, Beneficiary or other person (the “Claimant”) believes that he or she is
entitled to benefits under the Plan which are not paid to the Claimant or which are not being
accrued for the Claimant’s benefit, he or she shall file a written claim for such benefit with the
Plan Administrator. In the event the Plan Administrator shall be the Claimant, all actions which

-15-

 

are required to be taken by the Plan Administrator pursuant to this Article 7 shall be taken
instead by a member of the Committee designated by the Committee.

     8.2 Notification to Claimant of decision.

     Within 90 days after receipt of a claim by the Plan Administrator (or within 180 days if
special circumstances require an extension of time), the Plan Administrator shall notify the
Claimant of the decision with regard to the claim. In the event of such special circumstances
requiring an extension of time, there shall be furnished to the Claimant prior to expiration of the
initial 90-day period written notice of the extension, which notice shall set forth the special
circumstances and the date by which the decision shall be furnished. If such claim shall be wholly
or partially denied, notice thereof shall be in writing and worded in a manner calculated to be
understood by the Claimant, and shall set forth:

          (a) the specific reason or reasons for the denial;

          (b) specific reference to pertinent provisions of the Plan on which the denial is
based;

          (c) a description of any additional material or information necessary for the Claimant
to perfect the claim and an explanation of why such material or information is necessary;
and

          (d) an explanation of the procedure for review of the denial and the time limits
applicable thereto, including a statement regarding a Claimant’s right to bring a civil
action under ERISA Section 502(a).

     8.3 Procedure for review.

     Within 60 days following receipt by the Claimant of notice denying his or her claim, in whole
or in part, or, if such notice shall not be given, within 60 days following the latest date on
which such notice could have been timely given, the Claimant shall appeal denial of the claim by
filing a written application for review with the Committee. Following such request for review, the
Committee shall fully and fairly review the decision denying the claim. Prior to the decision of
the Committee, the Claimant shall be provided, on request and free of charge, reasonable access to
and copies of relevant documents and an opportunity to submit issues and comments in writing.

     8.4 Decision on review.

     The decision on review of a claim denied in whole or in part by the Plan Administrator shall
be made in the following manner. Within 60 days following receipt by the Committee of the request
for review (or within 120 days if special circumstances require an extension of time), the
Committee shall notify the Claimant in writing of its decision with regard to the claim. In the
event of such special circumstances requiring an extension of time, written notice of the extension
shall be furnished to the Claimant prior to the commencement of the extension. With

-16-

 

respect to a claim that is denied in whole or in part, the decision on review shall set forth
specific reasons for the decision, shall be written in a manner calculated to be understood by the
Claimant, and shall provide the specific reason(s) for the denial and specific references to the
pertinent Plan provisions on which the decision is based and provide that the Claimant is entitled,
on request and free of charge, reasonable access to and copies of relevant documents. The decision
of the Committee shall be final and conclusive.

     8.5 Action by authorized representative of Claimant.

     All actions set forth in this Article 7 to be taken by the Claimant may likewise be taken by a
representative of the Claimant duly authorized by him or her to act in his or her behalf on such
matters. The Plan Administrator and the Committee may require such evidence as either may
reasonably deem necessary or advisable of the authority to act of any such representative.

     8.6 Effect of Extensions.

     In the event that the Plan Administrator or Committee request additional information necessary
to determine the claim or appeal from a Claimant, the Claimant shall have at least 45 days in which
to respond. The period for making a benefit determination or deciding an appeal, as the case may
be, shall be tolled from the date of the notification to the Claimant of the request for additional
information until the date the Claimant responds to such request or, if earlier, the expiration of
the deadline provided by the Plan Administrator or Committee.

SECTION 9 MISCELLANEOUS

     9.1 Assignment

     The benefits payable under this Plan may not be assigned or alienated, except as required by
law.

     9.2 Governing Law

     The Plan shall be governed by, and construed in accordance with, the laws of the state of
California, to the extent not inconsistent with any applicable provision of ERISA.

     9.3 Plan Independent of Employment Relationship

     The establishment and maintenance of the Plan, as well as the eligibility for and payment of
benefits thereunder shall not be construed as conferring on any Employee, Covered Individual or
Eligible Individual any right to or contract for continued employment or employment for any
duration or in any position. The eligibility for or payment of any benefit under this Plan shall
not in any way interfere with the rights of either the Corporation or any Employee, Covered
Individual or Eligible Individual employed by the Corporation to terminate the employment of

-17-

 

such Employee, Covered Individual or Eligible Individual employed by the Corporation at any
time, without notice, for any reason or for no reason, except as otherwise required by law.

     9.4 Non-Duplication of Benefit

     In the event that the benefit paid to a Covered Individual under a Defined Benefit Plan or to
an Eligible Individual under an Individual Account Plan is increased after the benefit under this
Plan has been determined or paid, then the amount of benefit paid under this Plan shall be reduced
accordingly by offsetting future benefit payments under this Plan or by repayment by the Covered
Individual or Eligible Individual. This provision is intended to authorize adjustments to avoid
duplication of benefits between this Plan and any other plan of the Corporation.

     9.5 Unfunded Plan

     The Plan at all times shall be entirely unfunded and no provision shall at any time be made
with respect to segregating any assets of the Corporation for payment of any benefits hereunder.
The right of a Covered Individual, Eligible Individual, or his Beneficiary to receive a benefit
hereunder shall be an unsecured claim against the general assets of the Corporation, and neither
the Covered Individual, Eligible Individual nor any Beneficiary shall have any rights in or against
any specific assets of the Corporation. The Plan is intended to be unfunded for tax purposes and
for purposes of Title I of ERISA. The existence of any trust fund as may be established from time
to time is not intended to change this characterization of the Plan.

     9.6 Receipt and Release for Payment.

     Any payment made from the Plan to or with respect to any Covered Individual, Eligible
Individual, or Beneficiary shall, to the extent thereof, be in full satisfaction of all claims
against the Plan and the Corporation with respect to the Plan. The recipient of any payment from
the Plan may be required by the Administrator, as a condition precedent to such payment, to execute
a receipt and release with respect thereto in such form as shall be acceptable to the
Administrator.

SECTION 10 PRIOR BENEFITS

     10.1 Benefits Prior to Effective Date

     An Employee who terminated employment prior to the Effective Date shall have his or her
benefit determined under the provisions of the Plan in effect prior to this Plan restatement. The
benefits of Covered Individuals who commenced benefits under the SUPP or who terminated employment
with the Corporation prior to January 1, 2005 are provided under the terms of the SUPP prior to
January 1, 2005 and are paid under this Plan from and after January 1, 2005. Such benefits are not
intended to be required to comply with Section 409A of the Code and the regulations thereunder to
the maximum extent possible.

     10.2 Protected Benefits

-18-

 

          (a) Benefits payable under Appendix A of the prior plan document shall continue to be
payable under this Plan in accordance with the terms of that Appendix A. Such benefits are
not intended to be required to comply with Section 409A of the Code and the regulations
thereunder to the maximum extent possible.

          (b) The Second Amendment to the Plan, dated July 28, 1992 and effective as of January
1, 1992 (“Second Amendment”), did not apply to certain named individuals who were active
employees on and after December 20, 2002, as maintained on a list by the Plan Administrator.
With respect to such individuals, the provisions of the Plan immediately prior to the
Second Amendment (except as clarified to further express the scope and intent of the Plan
below) apply. In the event that the employment of such an individual is terminated under
the provisions of a written contract with the Corporation, pursuant to which such individual
is paid a severance amount in installments over a period of time for which such contract
also provides for accrual of benefits under a defined benefit or non-qualified plan during
such period, the benefit calculated under Section 3 or 4, as applicable, for such individual
shall include such period during which severance is paid and the amount of severance
payments as if such period were active employment with the Corporation and such payments
were compensation under the applicable Defined Benefit Plan; provided, however, that any
benefit calculated under Section 3.2 of the Plan based on the Preserved Benefit under the
Retirement Plan for Salaried Employees shall be limited to the Accrued Benefit as of April
30, 1992, consistent with the provisions to freeze such Preserved Benefit under such plan.
Such benefits are not intended to be required to comply with Section 409A of the Code and
the regulations thereunder to the maximum extent possible.

     IN WITNESS WHEREOF, the Corporation has caused this Plan to be executed by its duly authorized
member of the Del Monte Employee Benefits Administrative Committee as of December    , 2004.

	 	 	 	 	 
	 	 	DEL MONTE CORPORATION
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	By:
	 	 
	

	 	 	 	
 
	

	 	 	 	Mark J. Buxton
	

	 	 	 	Vice President, Human Resources
	

	 	 	 	Vice Chair, Employee Benefits Committee

-19-exv10w44

 

Exhibit 10.44

Deed of Warranty and Indemnity

in relation to Vidus Limited

(1) The persons listed in schedule 1

(2) @Road, Inc.

(3) NVPG LLC

Dated 15 December 2004

Osborne Clarke

Hillgate House

26 Old Bailey

London

EC4M 7HW

Telephone +44 (0) 20 7809 1000

Facsimile +44 (0) 20 7809 1005

Barcelona

Brescia

Bristol

Brussels

Cologne

Copenhagen

Helsinki

London

Madrid

Milan

Paris

Rome

Rotterdam

St. Petersburg

Silicon Valley

Tallinn

Thames Valley

 

 

Contents

	 	 	 	 	 
	1. Definitions and interpretation
	 	 	1	 
	2. Warranties
	 	 	10	 
	3. Tax Covenant
	 	 	10	 
	4. Warrantors’ Representative
	 	 	10	 
	5. Purchaser’s remedies
	 	 	16	 
	6. Limitations on liability
	 	 	18	 
	7. Conduct of Non-Tax Claims
	 	 	18	 
	8. Indemnities
	 	 	18	 
	9. General
	 	 	19	 
	10. Security for claims
	 	 	21	 
	11. Announcements
	 	 	22	 
	12. Working Capital
	 	 	22	 
	13. Notices
	 	 	22	 
	14. Governing law and jurisdiction
	 	 	23	 
	Schedule 1
	 	 	25	 
	(The Warrantors)
	 	 	25	 
	Schedule 2 – Part 1
	 	 	26	 
	(the Company)
	 	 	26	 
	Schedule 2 – Part 2
	 	 	29	 
	(The Shareholders)
	 	 	29	 
	Schedule 3
	 	 	32	 
	Part 1
	 	 	32	 
	(Non-Tax Warranties by NVP)
	 	 	32	 
	Schedule 3
	 	 	36	 
	Part 2
	 	 	36	 
	(Non-Tax Warranties)
	 	 	36	 
	Schedule 4
	 	 	58	 
	(Limitations on liability)
	 	 	58	 
	Schedule 5
	 	 	61	 
	Tax Schedule
	 	 	61	 
	Part 1 - Definitions and interpretation
	 	 	61	 
	Part 2 - Tax Warranties and Undertakings
	 	 	64	 
	Part 3 - Covenants to and from the Purchaser
	 	 	71	 
	Part 4 - Limitations and general
	 	 	74	 
	Schedule 6
	 	 	79	 
	(Pension Indemnity)
	 	 	79	 

Agreed Form Documents

	 	 	 
	Deed of Release

	 	NPV Certificate (under clause 2.2)
	Disclosure Letter
	 	 
	Warranty Certificate (under clause 2.1)
	 	 

 

 

This Deed is made on 15 December 2004

Between:

	(1)	 	The persons whose names and addresses are set out in schedule 1 (the
“Warrantors”);
	 
	(2)	 	@Road, Inc. (a Delaware Corporation) whose principal office is at 47200
Bayside Parkway, Fremont CA 94538 U.S.A. (the “Purchaser”); and
	 
	(3)	 	NVPG LLC (a Delaware Limited Liability Company) whose principal office is
at 98 Floral Avenue, Murray Hill, NJ 07974, United States of America (the
“Warrantors’ Representative”).

Background:

	(A)	 	The Warrantors have agreed to sell and the Purchaser has agreed to
purchase those of the Shares held by the Warrantors on the terms and
conditions set out in the Sale Agreement and the Offer Document.
	 
	(B)	 	In reliance upon the Warranties and Indemnities set out in this Deed, the
Purchaser proposes to make the Offer and enter into the Sale Agreement on
the terms and subject to the conditions to be set out in the Offer
Document and as set out in the Sale Agreement respectively.

This Deed witnesses as follows:

	1.	 	Definitions and interpretation
	 
	1.2	 	In this Deed, unless the context otherwise requires, the following words
shall have the following meanings:
	 
	 	 	“Accounts” means the audited balance sheet as at the Accounts Date and
the audited profit and loss account for the financial period ended on the
Accounts Date of the Company including all documents required by any law
applicable to companies incorporated in England and Wales to be annexed
to them.
	 
	 	 	“Accounts Date” means 31 December 2003.
	 
	 	 	“Act” means the Companies Act 1985.
	 
	 	 	“Applicable Law” means, with respect to any person, property,
transaction, event or other matter, any law, rule, statute, regulation,
instrument, order, judgment, decree, treaty or other requirement having
the force of law in any jurisdiction (collectively, the
“Law”) relating
or applicable to such person, property, transaction, event or other
matter.
	 
	 	 	“the BT Agreements” means those agreements dated 31 March 2003 as between
British Telecommunications Plc and A.P. Solve Limited being (i) an
assignment of non-patent IPR, (ii) a licence agreement, (iii) a domain
name assignment, (iv) an assignment

1

 

	 	 	of patents and patent applications (v) a distribution agreement and (vi)
an asset purchase agreement each of which is annexed to the Disclosure
Letter.
	 
	 	 	“Business Day” means a day (other than a Saturday or a Sunday) on which
clearing banks are open for business in the City of London.
	 
	 	 	“Certificate of Designation” shall have the meaning ascribed to it in the
Sale Agreement.
	 
	 	 	“Claim” means a Warranty Claim or a claim by the Purchaser against the
Warrantors under the Tax Covenant (as the case may be).
	 
	 	 	“Common Shares” means the common shares of 1p each in the capital of the
Company.
	 
	 	 	“Company” means Vidus Limited, details of which are set out in schedule 2.
	 
	 	 	“Company Share Option Scheme” means the A.P.Solve Limited 2003 Non Inland
Revenue Approved Share Option Scheme dated 19 June 2003, a copy of which
is appended to the Disclosure Letter.
	 
	 	 	“Company Support Agreement” has the meaning ascribed to it in the Sale
Agreement.
	 
	 	 	“Completion” means the completion of the transfer of the Shares held by
the Warrantors and the other holders of shares to the Purchaser pursuant
to the Sale Agreement and the Offer.
	 
	 	 	“Consideration” means the aggregate consideration received for the Shares
under the Offer and the Sale Agreement and by way of Exchange Options
valued in accordance with clause 5.5.
	 
	 	 	“Cross Receipts” means those cross receipts as between NVP and A.P.Solve
Limited acknowledging the receipt of funds in return for the Preferred
Shares.
	 
	 	 	“Dangerous Substance” means any natural or artificial substance (whether
in the form of a solid, liquid, gas or vapour) the generation,
transportation, storage, treatment, use or disposal of which (whether
alone or in combination with any other substance) gives rise to a risk of
causing harm to human health, comfort or safety or harm to any other
living organism or causing damage to the Environment.
	 
	 	 	“Debenture” means the debenture dated 16 April 2003 in favour of NVP over
the assets of the Company.
	 
	 	 	“Deed of Release” means the deed of release in the agreed form to be
dated on or before Completion under which NVP agrees to waive its
security over the assets of the Company.
	 
	 	 	“Deposited Securities” shall have the meaning ascribed to it in the
Escrow Agreement.

2

 

	 	 	“Disclosed” means fully and fairly disclosed to the Purchaser expressly
for the purposes of this Deed in the Disclosure Letter and “fully and
fairly” means disclosed with sufficient particularity to enable the
Purchaser to assess the full impact on the Company of the matter
disclosed and the term “Disclosure” shall be construed accordingly.
	 
	 	 	“Disclosure Letter” means the letter of the same date as this Deed in the
agreed form from the Warrantors to the Purchaser and delivered to the
Purchaser’s Solicitors immediately prior to the execution of this Deed,
together with any attachments, disclosing matters that are exceptions to
the Warranties.
	 
	 	 	“Encumbrance” means any interest or equity of any person (including any
right to acquire, option or right of pre-emption or conversion) or any
mortgage, charge, pledge, lien, assignment, hypothecation, security
interest, title retention, or any other security agreement or
arrangement, or any agreement to create any of the above other than a
lien arising by operation of law in the ordinary course of trading.
	 
	 	 	“Environment” means the environment as defined in section 1(2) of the
Environmental Protection Act 1990.
	 
	 	 	“Environmental Consent” means any consent, approval, authorisation,
permit, exemption, filing requirement, licence or registration from time
to time necessary or desirable under Environmental Law at the date of
Completion.
	 
	 	 	“Environmental Law” means Applicable Law, in each case of any
jurisdiction, in force or enacted relating or pertaining to the
Environment, any Dangerous Substance, human health, comfort, safety or
the welfare of any other living organism.
	 
	 	 	“Escrow Agent” or “Escrow Agents” means such person(s) as is/are agreed
between the Purchaser and the Warrantors’ Representative to act as escrow
agent(s) (under the terms of the Escrow Agreement) prior to Completion.
	 
	 	 	“Escrow Agreement” means the escrow agreement substantially in the form
exhibited to the Sale Agreement among the Warrantors’ Representative, the
Purchaser and the Escrow Agent to be entered into at Completion.
	 
	 	 	“Escrow Fund” means the escrow fund held by the Escrow Agent holding cash
or securities from time to time, subject to any lawful deductions made
pursuant to this Deed or the Escrow Agreement, 15% of the “consideration”
(which for the purpose of this definition shall mean the sum of:

	 	(i)	 	5.6 million shares of Purchaser Common Stock
valued at the Purchaser Common Stock Per Share Value; plus
	 
	 	(ii)	 	US$11.1 million; plus
	 
	 	(iii)	 	US$3.9 million; minus
	 
	 	(iv)	 	Operation Expense Advance(s); minus

3

 

	 	(v)	 	the Preliminary Purchase Price Adjustment

	 	 	as contributed by the Warrantors to the escrow fund in accordance with
clause 10.1, with Purchaser Common Stock valued at the Purchaser Common
Stock Per Share Value and the Non-Qualified Redeemable Preferred Stock
valued at Face Value plus the amount of 2 years accrued but unpaid
dividends attaching to the Non-Qualified Redeemable Preferred Stock
deposited in the Escrow Fund and Exchange Options valued in accordance
with clause 5.5. The Escrow Fund shall be held by the Escrow Agent in
accordance with the Escrow Agreement (subject to adjustment as provided
therein).
	 
	 	 	“Escrow Period” has the meaning ascribed to it in the Escrow Agreement.
	 
	 	 	“Exchange Options” means such options over the Purchaser Common Stock as
are granted to, inter alia, certain Warrantors, other than NVP, pursuant
to the Exchange Proposal.
	 
	 	 	“Exchange Proposal” means the proposal whereby the Purchaser will,
subject to the Offer becoming wholly unconditional, grant options over
the shares of Purchaser Common Stock in consideration of the surrender by
holders of vested options under the Company Share Option Scheme.
	 
	 	 	“Face Value” means the face value of each of the Non-Qualified Redeemable
Preferred Stock being $100.00 per share as at Completion (subject to
adjustment as provided in the Certificate of Designation).
	 
	 	 	“Final Purchase Price Adjustment” shall have the meaning ascribed to it
in section 1.7(l) of the Sale Agreement.
	 
	 	 	“Governmental Authority” means any governmental authority in the United
Kingdom, United States of America or any other country and includes any
district, county, federal, state, provincial, municipal or similar
authorities.
	 
	 	 	“Guarantee” means any guarantee including any authorised guarantee
agreement, suretyship, indemnity, bonding liability or similar contingent
liability given or undertaken by a person to secure or support the
obligations of any third party.
	 
	 	 	“Indemnities” means the indemnities set out in clause 8.1.
	 
	 	 	“Intellectual Property” means patents, trade marks or names whether or
not registered or capable of registration, registered designs, design
rights, domain names, copyrights, database rights, the right to apply for
and applications for any of the preceding items, together with the rights
in inventions, processes, software, know-how, trade or business secrets,
confidential information or any process or other similar right or asset
capable of protection enjoyed, owned, used or licensed by the Company and
all other intellectual and industrial property rights throughout the
world directly or indirectly arising from the existence or activities of
the Company or relating to in any manner to the Company or its business,
all licenses of the intellectual property referred to above, all future
income and proceeds from any such intellectual property and all rights to
damages and profits by reason of the infringement of any
such intellectual property.

4

 

	 	 	“IT Systems” means the information and communication technologies used by
the Company including without limitation, hardware, proprietary and third
party software, networks, peripherals and associated documents.
	 
	 	 	“Loan Agreement” means the loan agreement dated 16 April 2003 between NVP
and A.P. Solve Limited as amended and restated on 8 October 2004.
	 
	 	 	“Losses” has the meaning ascribed to it in clause 8.1.
	 
	 	 	“Management Accounts” means the unaudited management accounts for the
Company for the period from the Accounts Date to 30 November 2004 (the
“Management Accounts Date”).
	 
	 	 	“Nasdaq” means the Nasdaq National Market.
	 
	 	 	“NVP” means NV Partners III – BT LP (formerly NV Partners IV L.P.)
registered as a limited partnership under the laws of the Cayman Islands
acting though its general partner NVPG LLC.
	 
	 	 	“the NVP Warranties” means those warranties set out in Part 1 of Schedule
3 to this Deed.
	 
	 	 	“Non-Qualified Redeemable Preferred Stock” means the series A1
non-qualified redeemable preferred stock, the series A2 non-qualified
redeemable preferred stock, the series B1 non-qualified redeemable
preferred stock and the series B2 non-qualified redeemable preferred
stock each with a par value of $0.001 per share and issued by the
Purchaser to, inter alia, the Warrantors proposed to be issued pursuant
to the Offer and the Sale Agreement.
	 
	 	 	“Non-Tax Claim” means any Claim which is not a Tax Claim (as defined in
the Tax Schedule).
	 
	 	 	“Non-Tax Warranties” means the warranties and representations set out in
schedule 3, but for the avoidance of doubt the NVP Warranties shall only
be given by NVP pursuant to clause 2.2.
	 
	 	 	“notice” means includes any notice, demand, consent or other
communication.
	 
	 	 	“Offer” an offer by the Purchaser to acquire the Shares upon the terms
and conditions to be set out in the Offer Document.
	 
	 	 	“Offer Document” means the document containing the Offer to be despatched
by the Purchaser pursuant to the Sale Agreement.
	 
	 	 	“Offer Shares” has the same meaning as “@Road Shares” in the Offer
Document.
	 
	 	 	“Open Source Materials” means any publicly available software or material
that contains or is derived from, or is distributed or licensed:

5

 

	(a)	 	as free, libre or open source software;
	 
	(b)	 	under a licensing or distribution arrangement that requires,
as a condition of use, modification and/or distribution of such
software or material, that other software incorporated into, derived
from or distributed with such software or material be:

	 	(i)	 	disclosed or distributed in source code form;
	 
	 	(ii)	 	licensed for the purpose of making derivative
works; or
	 
	 	(iii)	 	redistributable at no charge; or

	(c)	 	under a licensing or distribution arrangement similar to (a)
or (b) including but not limited to the GNU General Public License
(GPL), GNU Lesser General Public License (LGPL), Mozilla Public
License, the Artistic License, the Netscape Public License, the
Apache License and the Sun Community Source License (SCSL) and the
Sun Industry Standards License (SISL).
	 
	 	 	“Operating Expense Advance(s)” shall have the meaning ascribed to it in
the Sale Agreement.
	 
	 	 	“Pension Indemnity” means the indemnity set out in Schedule 6.
	 
	 	 	“Pension Scheme” means the personal pension scheme designated by the
Company known as the Invesco Stakeholder Pension Scheme operated by
Invesco Pensions Limited with scheme number 0019.
	 
	 	 	“Policies” means all insurance policies maintained by the Company at the
date of this Deed and “Policy” means any of them.
	 
	 	 	“Purchaser Indemnified Parties” has the meaning ascribed to it in clause
8.1.
	 
	 	 	“Preferred Shares” means the preferred shares in the Company with par
value of £0.00003 each in the capital of the Company.
	 
	 	 	“Preliminary Purchase Price Adjustment” shall have the meaning ascribed
to it in Section 1.6 of the Sale Agreement.
	 
	 	 	“Purchaser Common Stock” means common stock in the Purchaser, par value
$0.0001 per share.
	 
	 	 	“Purchaser Common Stock Per Share Value” means the average closing price
per share of Purchaser Common Stock (rounded to the nearest whole cent)
on Nasdaq (as published in the West Coast Edition of The Wall Street
Journal, published in the United States of America or if not reported
therein, any other authoritative source selected by the Purchaser) for
the ten (10) trading days ending on the trading day immediately prior to
(and excluding the date of) Completion.
	 
	 	 	“Purchaser Group Company” means the Purchaser and any holding company or
parent company or any subsidiary or subsidiary undertaking of the
Purchaser or such
companies from time to time.

6

 

	 	 	“Purchaser’s Solicitors” means Osborne Clarke of One London Wall, London
EC2Y 5EB.
	 
	 	 	“Real Property” has the meaning ascribed to it in paragraph 28 of
Schedule 3, Part 2.
	 
	 	 	“Reimbursement Fund” means the reimbursement fund contributed to by the
Warrantors and utilised by the Warrantors’ Representative to meet its out
of pocket expenses.
	 
	 	 	“Sale Agreement” means an acquisition agreement among the Company, the
Purchaser and NVP dated on the date of this Deed.
	 
	 	 	“Securities Act” has the meaning ascribed to it in paragraph 4 of Part 1
of Schedule 3 to this Deed.
	 
	 	 	“Shares” means the Preferred Shares and the Common Shares being together
all of the issued shares of the Company, all of which are currently held
by the Warrantors as at the date of this Deed as set out in Part 2 of
Schedule 2.
	 
	 	 	“Tax Covenant” means the covenant given by the Warrantors under Part 3 of
the Tax Schedule.
	 
	 	 	“Tax Schedule” means the provisions of schedule 5 of this Deed.
	 
	 	 	“Tax Warranties” means the warranties and representations set out in Part
2 of the Tax Schedule and each of them.
	 
	 	 	“UK GAAP” means United Kingdom general accounting principles and
practices as amended from time to time.
	 
	 	 	“Transaction Documents” means the Sale Agreement, the Offer Document, the
Company Support Agreement, the Escrow Agreement and Deed of Release.
	 
	 	 	“Warrantor Associate” shall have the meaning given to it in the Tax
Schedule.
	 
	 	 	“Warrantors’ Solicitors” means Faegre Benson Hobson Audley LLP of 7
Pilgrim Street, London EC4V 6LB.
	 
	 	 	“Warranties” means the Non-Tax Warranties and the Tax Warranties, and
“Warranty” means any one of them.
	 
	 	 	“Warrantor Expenses” shall have the meaning ascribed to it at Section
1.2(f) in the Sale Agreement.
	 
	 	 	“Warrantors’ Representative” means NVP (or such other person as the
majority of the Warrantors may notify the Purchaser in writing from time
to time) acting in accordance with clause 4 to this Deed.
	 
	 	 	“Warranty Claim” means a claim by the Purchaser against the Warrantors
for breach
of any of the Warranties.

7

 

	 	 	“Working Time Regulations” means the Working Time Regulations 1998 (SI No
1833).
	 
	1.3	 	In this Deed, unless the context otherwise requires:

	 	(a)	 	words defined in paragraph 1 of the Tax Schedule shall bear
the same meaning in this Deed.
	 
	 	(b)	 	words in the singular include the plural and vice versa and
words in one gender include any other gender;
	 
	 	(c)	 	a reference to a statute or statutory provision includes:

	 	(i)	 	any subordinate legislation (as defined in
section 21(1) of the Interpretation Act 1978) made under it;
	 
	 	(ii)	 	any repealed statute or statutory provision which
it re-enacts (subject to any modification); and
	 
	 	(iii)	 	any statute or statutory provision which
modifies, consolidates, re-enacts or supersedes it except to
the extent that it would create or increase the liability of
any party under this Deed;

	 	(d)	 	a reference to:

	 	(i)	 	any “Party” means any party to this Deed as set
out at the head of page 1 or Schedule 1 (and “parties” means
all of the parties to this Deed) and includes its successors
in title and permitted assigns;
	 
	 	(ii)	 	a “person” includes any individual, firm,
corporation, body corporate, association or partnership,
trust, unincorporated organisation, employee representative
body, government or state or agency or department thereof,
executors administrators or successors in title (whether or
not having a separate legal personality);
	 
	 	(iii)	 	clauses and schedules are to clauses and
schedules of this Deed and references to sub-clauses and
paragraphs are references to sub-clauses and paragraphs of the
clause or schedule in which they appear;
	 
	 	(iv)	 	any provision of this Deed is to that provision
as amended in accordance with the terms of this Deed;
	 
	 	(v)	 	any document being “in the agreed form” means in
a form which has been agreed by the parties on or before the
date of this Deed and for identification purposes signed by
them or on their behalf by their solicitors;

8

 

	 	(vi)	 	an obligation due from all or any of the
Warrantors to the Purchaser including a reference to
“indemnify”, “indemnified” or words to that
effect in relation to a particular circumstance:

	 	(A)	 	shall be an obligation by the
Warrantors as applicable to pay to the Purchaser on a
pound for pound basis a sum equal to all losses,
claims, liabilities, damages and demands suffered and
all costs and expenses actually incurred by the
Purchaser and/or the Company arising out of that
circumstance;
	 
	 	(B)	 	shall include such additional
amount as is necessary so as to ensure that the net
receipt to the Purchaser shall be free of the effects
of any deduction in relation to Taxation; and
	 
	 	(C)	 	is without prejudice to any other
rights and remedies the Purchaser has under this Deed
provided always that the Purchaser shall not be
entitled to claim twice in respect of the same loss;

	 	(vii)	 	“writing” shall, for the avoidance of doubt,
include e-mail or any other form of electronic communication,
except where explicitly stated otherwise.

	 	(e)	 	except as set out in sub-clause 1.1 and 1.2, terms defined in
the Act have the meanings attributed to them by that Act;
	 
	 	(f)	 	“sterling” and the sign “£” means pounds sterling in the
currency of the United Kingdom and “dollars” and the sign “$” means
the lawful currency of the United States of America;
	 
	 	(g)	 	the table of contents and headings are for convenience only
and shall not affect the interpretation of this Deed;
	 
	 	(h)	 	general words shall not be given a restrictive meaning:

	 	(i)	 	if they are introduced by the word “other” or
“including” or similar words by reason of the fact that they
are preceded by words indicating a particular class of act,
matter or thing; or
	 
	 	(ii)	 	by reason of the fact that they are followed by
particular examples intended to be embraced by those general
words;

	 	(i)	 	where any liability or obligation is undertaken by two or
more Warrantors, the liability or obligation of each of them shall
be several unless expressly stated to the contrary; and
	 
	 	(j)	 	where any statement is qualified by the expression “so far as
the Warrantors are aware” or “to the best of the Warrantors’
knowledge and belief” or any similar or like expression it shall be
deemed to include an additional statement that it has been made
after due and careful enquiry.

9

 

	2.	 	Warranties
	 
	2.1	 	Each of the Warrantors severally undertakes, represents and warrants to
the Purchaser that, except as Disclosed, each of the Warranties, other
than the NVP Warranties, is true and accurate and not misleading at the
date of this Deed and acknowledge that, whilst the Warranties are not
repeated at Completion, it will be a condition precedent to Completion
that (i) the Warranties would, had they been given immediately prior to
Completion, have continued to be true and accurate and not misleading in
all material respects at such time by reference to the circumstances
applying at such time and (ii) the Warrantors deliver a certificate to the
Purchaser in the agreed form to the effect that such is the case. In the
event that such certificate is untrue or misleading, whether by omission
or otherwise, it is acknowledged and agreed that the Purchaser shall be
entitled to rescind the Sale Agreement and any contract arising pursuant
to the Offer between the Purchaser and the Warrantors at any time prior to
Completion or to damages. The Warrantors hereby warrant, represent and
undertake to the Purchaser that such certificate shall be true, accurate
and not misleading.
	 
	2.2	 	NVP undertakes, represents and warrants to the Purchaser that, except as
Disclosed, each of the NVP Warranties is true and accurate and not
misleading at the date of this Deed and will be true and accurate and not
misleading immediately prior to Completion, on the basis that the NVP
Warranties are repeated at Completion by reference to the circumstances
applying at the time immediately prior to Completion and it shall be a
condition precedent to Completion that NVP shall deliver a certificate to
the Purchaser in the agreed form to the effect that no breach of the NVP
Warranties is subsisting by reference to circumstances applying
immediately prior to Completion.
	 
	2.3	 	The Warrantors acknowledge that they are inducing the Purchaser to enter
into the Sale Agreement and make the Offer in reliance on the Warranties.
	 
	2.4	 	Each of the Warranties is a separate and independent Warranty and shall
not be limited by reference to any other Warranty or anything in this Deed
(save to the extent expressly provided to the contrary in schedule 4 or
paragraph 6 of the Tax Schedule).
	 
	3.	 	Tax Covenant
	 
	 	 	The Warrantors covenant to the Purchaser in the terms of the Tax Covenant
as set out in the Tax Schedule.
	 
	4.	 	Warrantors’ Representative
	 
	4.1	 	Appointment
	 
	 	 	The Warrantors hereby appoint NVP as the Warrantors’ Representative and
attorney-in-fact for each Warrantor receiving Consideration in the
transactions contemplated by the Sale Agreement and pursuant to the
Offer. The Warrantors’ Representative shall have full power and
authority to represent all of the Warrantors and their successors with
respect to all matters arising under this Deed, (including, without
limitation, to deliver on behalf of the Warrantors a certificate pursuant
to clause 2.1), the Sale Agreement (including, without limitation in
relation to negotiating and settling any disputes arising pursuant to
Section 1.2 thereof) and the Escrow Agreement and all actions taken by
the Warrantors’ Representative hereunder and thereunder shall be binding
upon all such Warrantors and their successors as if expressly confirmed
and

10

 

	 	 	ratified in writing by each of them and no Warrantor shall have the right
to object, dissent, protest or otherwise contest the same. The
Warrantors’ Representative shall take any and all actions which it
believes are necessary or appropriate under this Deed, the Sale Agreement
and the Escrow Agreement for and on behalf of the Warrantors as fully as
if the Warrantors were acting on their own behalf including, without
limitation, executing the Escrow Agreement as Warrantors’ Representative,
giving and receiving any notice or instruction permitted or required
under this Deed, the Sale Agreement or the Escrow Agreement by the
Warrantors’ Representative or any Warrantor, interpreting all of the
terms and provisions of this Deed, the Sale Agreement and the Escrow
Agreement, authorising payments to be made with respect hereto or
thereto, obtaining reimbursement as provided for herein for all
reasonable out-of-pocket fees and expenses and other obligations of or
incurred by the Warrantors’ Representative in connection with this Deed,
the Sale Agreement and the Escrow Agreement, defending all Claims and any
claim under the Indemnities, consenting to, compromising or settling all
Claims, conducting negotiations with Purchaser and its agents regarding
such Claims and any claim under the Indemnities, dealing with the
Purchaser and the Escrow Agent under this Deed, the Sale Agreement and
the Escrow Agreement with respect to all matters arising under this Deed,
the Sale Agreement and the Escrow Agreement, taking any and all other
actions specified in or contemplated by this Deed, the Sale Agreement and
the Escrow Agreement, and engaging counsel, accountants or other
Warrantors’ representatives in connection with the foregoing matters.
Without limiting the generality of the foregoing, the Warrantors’
Representative shall have full power and authority to interpret all the
terms and provisions of this Deed, the Sale Agreement and the Escrow
Agreement and to consent to any amendment hereof or thereof on behalf of
all such Warrantors and their successors. Notwithstanding the foregoing,
each Warrantor shall have the right to exercise any voting rights
appertaining to its respective shares deposited in the Escrow Fund.
	 
	4.2	 	Authorisation
	 
	 	 	The Warrantors hereby authorises the Warrantors’ Representative, on its
and the Warrantors’ behalf (and by their approval of this Deed and the
transactions contemplated by the Sale Agreement and pursuant to the
Offer, the Warrantors hereby authorise the Warrantors’ Representative),
to:

	 	(a)	 	receive all notices or documents or to be given to any of the
Warrantors by the Purchaser pursuant hereto or to the Sale Agreement
or the Escrow Agreement or in connection herewith or therewith and
to receive and accept service of legal process in connection with
any suit or proceeding arising under this Deed or the Escrow
Agreement;
	 
	 	(b)	 	deliver to the Purchaser at Completion all certificates and
documents to be delivered to the Purchaser by any of the Warrantors
pursuant to this Deed or otherwise, together with any other
certificates and documents executed by any of the Warrantors and
deposited with the Warrantors’ Representative for such purpose;

11

 

	 	(c)	 	engage counsel, and such accountants and other advisors for
any of the
Warrantors and incur such other reasonable expenses on behalf of
any of the Warrantors in connection with this Deed, the Sale
Agreement or the Escrow Agreement and the transactions contemplated
hereby or thereby or pursuant to the Offer as the Warrantors’
Representative may in its sole discretion deem appropriate; and
	 
	 	(d)	 	take such action on behalf of any of the Warrantors as the
Warrantors’ Representative may in its sole discretion deem
appropriate in respect of:

	 	(i)	 	waiving any inaccuracies in the representations
or warranties or undertakings of the Purchaser contained in
any document delivered by the Purchaser pursuant hereto or
pursuant to the Sale Agreement;
	 
	 	(ii)	 	taking such other action as the Warrantors’
Representative or any of the Warrantors is authorised to take
under this Deed, the Sale Agreement or the Escrow Agreement;
	 
	 	(iii)	 	receiving all documents or certificates and
making all determinations, on behalf of any of the Warrantors,
required under this Deed or the Escrow Agreement;
	 
	 	(iv)	 	all such other matters as the Warrantors’
Representative may in its sole discretion deem necessary or
appropriate to perform the obligations contemplated by the
Sale Agreement, this Deed and pursuant to the Offer; and
	 
	 	(v)	 	all such action as may be necessary after
Completion to carry out any of the transactions contemplated
by the Sale Agreement, pursuant to the Offer and any of the
transactions contemplated by this Deed or the Escrow Agreement
including, without limitation, the defence and/or settlement
of any claims (including Claims) and any waiver of any
obligation of the Purchaser.

	4.3	 	Actions Final
	 
	 	 	All actions, decisions and instructions of the Warrantors’ Representative
shall be conclusive and binding upon all of the Warrantors and no
Warrantor nor any other person shall have any claim or cause of action
against the Warrantors’ Representative and the Warrantors’ Representative
shall have no liability to any Warrantor or any other person, for any
action taken, decision made or instruction given by the Warrantors’
Representative in connection with the Escrow Agreement, the Sale
Agreement or this Deed or pursuant to the Offer, except in the case of
its own gross negligence or wilful misconduct.
	 
	4.4	 	Indemnification of Warrantors’ Representative
	 
	 	 	The Warrantors’ Representative shall incur no liability to the Warrantors
or the Escrow Agent or any other person with respect to any action taken
or suffered by it in reliance upon any note, direction, instruction,
consent, statement or other documents reasonably believed by the
Warrantors’ Representative to be genuinely and duly

12

 

	 	 	authorised by holders of not less than a majority interest in the Escrow
Fund, nor for other action or inaction taken or omitted in good faith in
connection herewith or with the Escrow Agreement, in any case except for
liability to the Warrantors for its own gross negligence or wilful
misconduct. The Warrantors’ Representative shall be indemnified for and
shall be held harmless against any loss, liability or expense incurred by
the Warrantors’ Representative or any of its affiliates and any of their
respective partners, directors, officers, employees, agents,
stockholders, consultants, attorneys, accountants, advisors, brokers,
representatives or controlling persons, in each case relating to the
Warrantors’ Representative’s conduct as Warrantors’ Representative, other
than such losses, liabilities or expenses resulting from the Warrantors’
Representative’s gross negligence or wilful misconduct in connection with
its performance under this Deed and the Escrow Agreement. The costs of
such indemnification (including the costs and expenses of enforcing this
right of indemnification) shall be paid from the principal proportion of
any Reimbursement Fund. The Warrantors’ Representative may, in all
questions arising under this Deed, rely on the advice of counsel,
independent public accountants and other experts selected by it, and for
anything done, omitted or suffered in good faith by the Warrantors’
Representative in accordance with such advice, the Warrantors’
Representative shall not be liable to the Warrantors or the Escrow Agent
or any other person. In no event shall the Warrantors’ Representative be
liable hereunder or in connection herewith for any indirect, punitive,
special or consequential damages.
	 
	4.5	 	Access to Information
	 
	 	 	The Warrantors’ Representative shall have reasonable access to
information of and concerning any Claim or claim under the Indemnities
and which is in the possession, custody or control of the Purchaser and
the reasonable assistance, during the Purchaser’s normal business hours,
of Purchaser’s officers and employees for purposes of performing the
Warrantors’ Representative’s duties under this Deed or the Escrow
Agreement, including for the purpose of evaluating any Claim or claim
under the Indemnities against the Escrow Amount by the Purchaser;
provided that the Warrantors’ Representative shall treat confidentially
and not disclose any non-public information regarding the Purchaser and
obtained in the course of the performance of the Warrantors’
Representative’s duties hereunder or under the Sale Agreement concerning
the Purchaser (or any subsidiary or affiliate of the Purchaser) or any
Claim or claim under the Indemnities to anyone (except to the Warrantors’
Representative’s attorneys, accountants or other advisers, to Warrantors,
to any arbitrators appointed to resolve disputes pursuant to this
Agreement, and on a need-to-know basis to other individuals who agree to
keep such information confidential).
	 
	4.6	 	Attorney-in-Fact

	 	(a)	 	The Warrantors’ Representative is hereby appointed and
constituted the true and lawful attorney-in-fact of each Warrantor,
with full power in his, her or its name and on his, her or its
behalf to act according to the terms of this Deed, the Sale
Agreement and the Escrow Agreement in the absolute discretion of the
Warrantors’ Representative; and in general to do all things and to
perform all acts including, without limitation, executing and
delivering the Escrow Agreement and any other agreements,
certificates, receipts, instructions,

13

 

	 	 	 	notices or instruments contemplated by or deemed advisable in
connection with this Deed, the Sale Agreement and the Escrow
Agreement.
	 
	 	(b)	 	This power of attorney and all authority hereby conferred is

granted and shall be irrevocable and shall not be terminated by any
act of any Warrantor, by operation of law, whether by such
Warrantor’s death, disability or protective supervision or by any
other event. Without limitation to the foregoing, this power of
attorney is to ensure the performance of a special obligation and,
accordingly, each Warrantor hereby renounces its, his or her right
to renounce this power of attorney unilaterally any time before the
end of the Escrow Period.
	 
	 	(c)	 	Each Warrantor hereby waives any and all defences which may
be available to contest, negate or disaffirm the action of the
Warrantors’ Representative taken in good faith under the Escrow
Agreement.
	 
	 	(d)	 	Notwithstanding the power of attorney granted in this clause
3, no agreement, instrument, acknowledgement or other act or
document shall be ineffective by reason only of the Warrantors
having signed or given such directly instead of the Warrantors’
Representative.

	4.7	 	Liability
	 
	 	 	If the Warrantors’ Representative is required by the terms hereof or the
Escrow Agreement to determine the occurrence of any event or contingency,
the Warrantors’ Representative shall, in making such determination, be
liable to the Warrantors only for his proven gross negligence or wilful
misconduct as determined in light of all the circumstances, including the
time and facilities available to him in the ordinary conduct of business.
In determining the occurrence of any such event or contingency, the
Warrantors’ Representative may request from any of the Warrantors or any
other person such reasonable additional evidence as the Warrantors’
Representative in his sole discretion may deem necessary to determine any
fact relating to the occurrence of such event or contingency, and may at
any time inquire of and consult with others, including any of the
Warrantors, and the Warrantors’ Representative shall not be liable to any
Warrantor for any damages resulting from his delay in acting hereunder
pending his receipt and examination of additional evidence requested by
him.
	 
	4.8	 	Orders
	 
	 	 	The Warrantors’ Representative is authorised, in his sole discretion, to
comply with final, non-appealable orders or decisions issued or process
entered by any court of competent jurisdiction or arbitrator with respect
to the Escrow Fund. If any portion of the Escrow Fund is disbursed to
the Warrantors’ Representative and is at any time attached, garnished or
levied upon under any court order, or in case the payment, assignment,
transfer, conveyance or delivery of any such property shall be stayed or
enjoined by any court order, or in case any order, judgement or decree
shall be made or entered by any court affecting such property or any part
thereof, then and in any such event, the Warrantors’ Representative is
authorised, in his sole discretion, but in good faith, to rely upon and
comply with any such order, writ, judgement or decree which he is advised
by legal counsel selected by him is binding upon without the need for
appeal

14

 

	 	 	or other action; and if the Warrantors’ Representative complies with any
such order, writ, judgement or decree, he shall not be liable to any
Warrantor or to any other person by reason of such compliance even though
such order, writ, judgment or decree may be subsequently reversed,
modified, annulled, set aside or vacated.
	 
	4.9	 	Removal of Warrantors’Representative; Authority of Successor Warrantors’
Representative
	 
	 	 	Warrantors (or the successors or assigns thereto) who in the aggregate
hold not less than a majority interest in the Escrow Fund shall have the
right at any time during the term of the Escrow Agreement to remove the
then-acting Warrantors’ Representative and to appoint a successor
Warrantors’ Representative; provided, however, that neither such removal
of the then acting Warrantors’ Representative nor such appointment of a
successor Warrantors’ Representative shall be effective until the
delivery to the Escrow Agent and the Purchaser of executed counterparts
of a writing signed by each such Warrantor with respect to such removal
and appointment, together with an acknowledgement signed by the successor
Warrantors’ Representative appointed in such writing that he or she
accepts the responsibility of successor Warrantors’ Representative and
agrees to perform and be bound by all the provisions of this Deed and the
Escrow Agreement applicable to the Warrantors’ Representative. Each
successor Warrantors’ Representative shall have all of the power,
authority, rights and privileges conferred by this Agreement upon the
original Warrantors’ Representative, and the term “Warrantors’
Representative” as used herein and in the Escrow Agreement shall be
deemed to include any interim or successor Warrantors’ Representative.
	 
	4.10	 	Expenses of the Warrantors’ Representative
	 
	 	 	The Warrantors’ Representative shall be entitled to withdraw cash amounts
held in the Reimbursement Fund in reimbursement for reasonable
out-of-pocket fees and expenses including legal, accounting and other
advisors fees and expenses, if applicable incurred by the Warrantors’
Representative in performing under this Deed and the Escrow Agreement.
The Warrantors (i) shall have no claim or cause of action against, may
not assert any claim against, and shall indemnify and hold harmless the
Warrantors’ Representative and each of its affiliates and any of their
respective partners, directors, officers, employees, agents,
stockholders, consultants, attorneys, accountants, advisors, brokers,
representatives or controlling persons, as provided for in above; and
(ii) shall pay to the Warrantors’ Representative, promptly upon request,
such Warrantors’ pro-rata share of any amounts paid by the Warrantors’
Representative on behalf of the Warrantors and all costs and expenses
(including legal, accounting and other advisors’ fees and reasonable
expenses, if applicable) incurred by the Warrantors’ Representative in
connection with the protection, defence or enforcement of any rights
under this Deed or the Escrow Agreement to the extent such costs,
expenses and other amounts exceed the amount available to the Warrantors
Representative in the Reimbursement Fund.
	 
	4.11	 	Purchaser’s Reliance
	 
	 	 	Purchaser shall not be obliged to inquire into the authority of the
Warrantors’

15

 

	 	 	Representative, and Purchaser shall be fully protected in dealing with
the Warrantors’ Representative in good faith.
	 
	5.	 	Purchaser’s remedies
	 
	5.1	 	Each of the Warrantors undertakes, until Completion, to disclose in
writing to the Purchaser within a reasonable period (and for these
purposes a “reasonable period” shall be deemed to include an opportunity
for the Warrantors to take appropriate professional advice as soon as
reasonably practicable) anything which it is aware would (or could
reasonably be expected to) constitute a Claim or which it is aware is
inconsistent with the contents of the Disclosure Letter or which would (or
could reasonably be expected to) constitute a Warranty Claim by reference
to the circumstances subsisting from time to time if the Warranties had
been given at all times up to and including Completion. However, no such
disclosure shall be treated as Disclosed, or qualify in any way the
Warranties, nor affect in any way the Purchaser’s rights under clause 2.1
or clause 2.2, nor be deemed to be part of the Purchaser’s knowledge as at
Completion.
	 
	5.2	 	The rights and remedies of the Purchaser in respect of any breach of the
Warranties or the Indemnities or the Tax Covenant shall not be affected by
Completion or by any investigation made, or which could have been made, by
it or on its behalf into the affairs of the Company.
	 
	5.3	 	If any Claim or claim under the Indemnities is made, no Warrantor shall
make any claim against the Company or, save in the event of fraud, any
director or employee of the Company on whom he may have relied before
agreeing to any terms of this Deed or authorising any statement in the
Disclosure Letter. This sub-clause shall not preclude any Warrantor from
claiming against any other Warrantor under any right of contribution or
indemnity to which he may be entitled.
	 
	5.4	 	The damages payable pursuant to a Warranty Claim shall be as agreed
between the Warrantors’ Representative and the Purchaser or, in default of
such agreement within 3 months of a request for arbitration being filed
and served in respect of such Warranty Claim, as determined by arbitration
pursuant to Clause 14, PROVIDED ALWAYS THAT, in the event the Warranty
Claim concerned arises as a result of an actual liability, cost or expense
which is not Disclosed, such damages shall be equivalent to the amount by
which the liabilities, costs and expenses of the Company are greater than
they would have been had the Warranty concerned been true and accurate and
not misleading.
	 
	5.5	 	In order to satisfy and secure any Claim or claim under the Indemnities
against a Warrantor, the Purchaser may, at its discretion, (i) withhold
any dividends or redemption monies due to that Warrantor in respect of his
Non-Qualified Redeemable Preferred Stock of an amount not exceeding the
amount of such Warranty Claim and the withholding of such amount from a
Warrantor shall, pro tanto, satisfy and discharge the liability of the
Warrantor in respect of the relevant Claim or claim under the Indemnities
and/or (ii) in the event a Warrantor does not receive Purchaser Common
Stock or Non-Qualified Redeemable Preferred Stock as part of the
Consideration or the liability of the Warrantor under the Claim or claim
under the

16

 

	 	 	Indemnities exceeds the value of the Purchaser Common Stock (valued at
the Purchaser Common Stock Per Share Value) and Non-Qualified Redeemable
Preferred Stock (valued at Face Value) then held by the Warrantor, the
Warrantor will, if he holds unexercised Exchange Options, not exercise
such of those Exchange Options held by him to a value at least equivalent
to the amount of the Claim (and, for the purpose of this clause, Exchange
Options shall be valued by reference to the Purchaser Common Stock Per
Share Value after deducting the applicable exercise price) and, to the
extent it is agreed or it is determined that the Warrantor is liable in
damages or is otherwise liable under the Tax Covenant or the Indemnities,
Exchange Options of the Warrantor equivalent in value to the Warrantor’s
liability as aforesaid shall be deemed to have lapsed or, at the
Purchaser’s election, to have been surrendered to the Purchaser for nil
consideration and such lapse or surrender of Exchange Options shall, pro
tanto, satisfy and discharge the liability of that Warrantor in respect
of the Claim or claim under the Indemnities.
	 
	5.6	 	In the event of a Claim or a claim under the Indemnities against a
Warrantor which has been determined in accordance with clause 5.4 but
cannot be settled in whole or in part from that Warrantor’s Deposited
Securities in accordance with clause 5.5, that Warrantor, at their
discretion, may satisfy such Claim or claim under the Indemnities by
transferring to the Purchase for nil consideration:

	 	(i)	 	such Purchaser Common Stock valued at the
Purchaser Common Stock Per Share Value as would equate to the
balance of any determined Claim or claim under the Indemnities
that cannot be satisfied pursuant to clause 5.5; or
	 
	 	(ii)	 	such Purchaser Preferred Stock valued at Face
Value plus any accrued but unpaid dividends attaching thereto
as would equate to the balance of any determined Claim or
claim under the Indemnities that cannot be satisfied pursuant
to clause 5.5; or
	 
	 	(iii)	 	any combination thereof.

	5.7	 	This sub-clause applies if at any time the Purchaser makes any Warranty
Claim against any Warrantor in circumstances where no disclosure or a
disclosure which does not constitute a Disclosure has been made in the
Disclosure Letter and (notwithstanding the express provisions of this
Deed) such Warrantor avoids or limits liability as a result of a court of
competent jurisdiction holding that the Warranty Claim (or any part of it)
should fail or the quantum recoverable should be reduced because the
Purchaser has or is deemed to have knowledge of the matters which give
rise to the breach of Warranty. The Warrantors covenant to pay to the
Purchaser on demand an amount equal to the amount which the Purchaser
would have been entitled to recover from the Warrantors but for the
Purchaser having or being deemed to have knowledge of the matters giving
rise to the breach of Warranty.
	 
	5.8	 	Any amount paid by the Warrantors to the Purchaser in respect of any of
the provisions of this Deed shall be treated as paid to the Purchaser by
way of pro rata reduction in the Consideration.

17

 

	6.	 	Limitations on liability
	 
	6.1	 	Unless expressly provided to the contrary in this Deed, the liability of
the Warrantors in respect of any Claim as provided shall be limited as
provided in schedule 4 but provided always that notwithstanding any other
provision in this Deed, the provisions of this clause 6 and schedule 4 and
Part 4 of the Tax Schedule shall not apply to any Claim made against the
Warrantors to the extent the same is based on any fraud or dishonesty or
any wilful misstatement or any wilful omission on the part of any of the
Warrantors or their agents or advisers.
	 
	7.	 	Conduct of Non-Tax Claims
	 
	7.1	 	The Purchaser shall determine and conduct defence or settlement of any
third-party claim, and the reasonable costs and expenses incurred by the
Purchaser in connection with such defence or settlement (including
reasonable legal fees, other professionals and experts’ fees and court
arbitration costs) shall be included in the damages the Purchaser may seek
pursuant to a claim made by the Purchaser hereunder, PROVIDED ALWAYS THAT
the Purchaser shall consult with the Warrantors’ Representative regarding
the determination, conduct or defence of a third party claim or settlement
negotiations with respect to a third party claim and shall take reasonable
regard of the Warrantors’ reasonable written representations.
	 
	7.2	 	The Warrantors’ Representative shall have the right to receive copies of
all pleadings, notices and communications with respect to third party
claims to the extent that receipt of such documents by the Warrantors’
Representative does not affect any privilege relating to the Purchaser.
	 
	7.3	 	No settlement of any such third-party claim with any third-party claimant
shall be determinative of the existence of or amount of damages relating
to such matter, except with the consent of the Warrantors’ Representative,
which consent shall not be unreasonably withheld, conditioned or delayed
and which shall be deemed to have been given unless the Warrantors’
Representative shall have objected within 20 days after a written request
for such consent by the Purchaser.
	 
	8.	 	Indemnities
	 
	8.1	 	The Warrantors irrevocably undertake to indemnify and keep indemnified
the Purchaser, each Purchaser Group Company and their respective employees
(other than the Warrantors), directors and affiliates (the “Purchaser
Indemnified Parties”) against all claims, losses, liabilities, damages,
deficiencies, costs and expenses, including reasonable legal fees and
expenses (hereinafter individually a “Loss” and collectively “Losses”)
incurred by the Purchaser Indemnified Parties directly or indirectly as a
result of:

	 	(a)	 	the BT Agreements, other than the asset purchase agreement
dated 31 March 2003, not validly subsisting at the date of this
Deed;
	 
	 	(b)	 	the triggering of any success fee payable by the Company
caused by the entering into of the Sale Agreement or any agreement
referred to therein, excluding for the avoidance of doubt the
agreement with Rogere Capital
Limited dated 6 August 2004;

18

 

	 	(c)	 	Patent number EP 0 938 714 being revoked as a result of the
opposition proceedings brought by Barker Brettell on 17 October 2001
in the European Patent Office;
	 
	 	(d)	 	the Purchaser incurring Warrantor Expenses;
	 
	 	(e)	 	the understatement of the Preliminary Purchase Price
Adjustment pursuant to section 1.2(h) of the Sale Agreement; and
	 
	 	(f)	 	the Pension Indemnity;

	 	 	save that, other than in relation to clause 8.1(c) above, the liability
of the Warrantors pursuant to this clause 8.1, shall be limited to 80% of
the Consideration, such liability to be calculated as at the date of
Completion by valuing the Purchaser Common Stock at the Purchaser Common
Stock Per Share Value and the Non-Qualified Redeemable Preferred Stock at
Face Value. Furthermore, the Warrantors liability pursuant to this
clause 8.1 shall be limited in accordance with paragraphs 1, and, save in
the case of clause 8.1(c) and 8.1(f), paragraph 3(a)(iii) of Schedule 4
to this Deed. For the avoidance of doubt, save in relation to clause
8.1(c) and 8.1(f), no other limitation on liability set out in Schedule 4
to this Deed (other than paragraph 10 of Schedule 4), shall apply to this
clause 8.1. The liability of the Warrantors in relation to a claim
under clause 8.1(c) above shall be limited to $11,100,000. The provisions
of paragraph 3(c) of Schedule 4 shall only apply to claims arising
pursuant to clause 8.1(f). The Warrantors shall not be liable unless the
Warrantors’ Representative has received written notice from the Purchaser
giving reasonable details of a claim under clause 8.1(c) and, if
practicable, the Purchaser’s estimate of the amount involved, not later
than 2 years from Completion.
	 
	9.	 	General
	 
	9.1	 	Contracts (Rights of Third Parties) Act 1999
	 
	 	 	Unless expressly provided in this Deed and apart from clause 8.1 which
shall be enforceable by the Purchaser Indemnified Parties, no term of
this Deed is enforceable pursuant to the Contracts (Rights of Third
Parties) Act 1999 by any person who is not a party to it.
	 
	9.2	 	Assignment

	 	(a)	 	This Deed shall be binding upon and enure for the benefit of
the successors in title of the parties but, except as set out in
sub-clause (b), shall not be assignable by any party without the
prior written consent of the other.
	 
	 	(b)	 	The Purchaser may assign the benefit of this Deed (including,
without limitation, the Warranties) to any Purchaser Group Company,
any successor in title or finance house providing debt or other
facilities to the Purchaser from time to time.

19

 

	9.3	 	Invalidity
	 
	 	 	If any part of this Deed is found by any court or competent authority to
be invalid, unlawful or unenforceable in any jurisdiction, then that
provision shall be deemed not to be a part of this Deed, and it shall not
affect the enforceability of the remainder of this Deed nor shall it
affect the validity, lawfulness or enforceability of that provision in
any other jurisdiction.
	 
	9.4	 	Releases and waivers

	 	(a)	 	The rights, powers and remedies conferred on any party by
this Deed and remedies available to any party are exclusive and are
in lieu of any right, power or remedy which it may have under
general law or otherwise save for its remedies under the Transaction
Documents.
	 
	 	(b)	 	Any party may, in whole or in part, release, compound,
compromise, waive or postpone, in its absolute discretion, any
liability owed to it or right granted to it in this Deed by any
other party or parties without in any way prejudicing or affecting
its rights in respect of that or any other liability or right not so
released, compounded, compromised, waived or postponed.
	 
	 	(c)	 	No single or partial exercise, or failure or delay in
exercising any right, power or remedy by any party shall constitute
a waiver by that party of, or impair or preclude any further
exercise of, that or any right, power or remedy arising under this
Deed or otherwise.

	9.5	 	Counterparts

	 	(a)	 	This Deed may be executed in any number of counterparts and
by the parties on separate counterparts, but shall not be effective
until each party has executed at least one counterpart.
	 
	 	(b)	 	Each counterpart, when executed, shall be an original of this
Deed and all counterparts shall together constitute one instrument.

	9.6	 	Termination
	 
	 	 	Without prejudice to any remedy available to any party arising out of any
outstanding or prior breach of this Deed on the part of any other party,
if this Deed is terminated (and such termination is to be effective
immediately upon the termination of the Sale Agreement), the following
shall occur:

	 	(a)	 	the restrictions and provisions contained in this sub-clause
9.6 (Termination), clause 1 (Definitions and Interpretation)
sub-clause 9.7 (Confidentiality), clause 11 (Announcements), clause
12 (Costs and Expenses), clause 13 (Notices) and clause 14
(Governing law and jurisdiction) shall continue to apply; and
	 
	 	(b)	 	except as referred to in sub-clause (a), all obligations of
the parties under this Deed shall cease.

20

 

	9.7	 	Confidentiality

	 	(a)	 	Except as referred to in sub-clause (b), the parties shall
treat as strictly confidential all information received or obtained
as a result of entering into or performing this Deed which relates
to the provisions or subject matter of this Deed, to any other party
to this Deed to or the negotiations relating to this Deed.
	 
	 	(b)	 	Any party may disclose information which would otherwise be
confidential if and to the extent:

	 	(i)	 	it is required to do so by law or any securities
exchange or regulatory or governmental body to which it is
subject wherever situated;
	 
	 	(ii)	 	it considers it necessary to disclose the
information to its professional advisers, auditors and bankers
provided that it does so on a confidential basis;
	 
	 	(iii)	 	the information has come into the public domain
through no fault of that party; or
	 
	 	(iv)	 	each party to whom it relates has given its
consent in writing.

	9.8	 	Default Interest
	 
	 	 	If any party defaults in the payment when due of any sum payable under
this Deed (whether payable by agreement or by an order of a court or
otherwise), the liability of that party shall be increased to include
interest on that sum from the date when such payment was due until the
date of actual payment at a rate per annum of 2 per cent. above the base
rate from time to time of National Westminster Bank PLC. Such interest
shall accrue from day to day and shall be compounded annually.
	 
	9.9	 	The Warrantors and the Warrantors’ Representative shall comply with the
obligations expressly required to be performed by them respectively
pursuant to the terms of section 2.1 of the Sale Agreement.
	 
	9.10	 	The Warrantors whose names are set out in column 1 of Schedule 2, Part 3
hereby consent to the transfer of their Common Shares set out opposite
their name in column 2 of Schedule 2, Part 3 to NVP for nominal
consideration and NVP hereby consents to the transfers of the Common
Shares from those Warrantors to it and hereby confirms, in consideration
of the promise by the Purchaser to make the Offer as set out in the Sale
Agreement, it shall assent those Common Shares to the Offer. The
Warrantors confirm that all notices of transfer in relation to the
transfer of their Common Shares as referred to above will be submitted to
the Company by not later than five Business Days of the date of this
Agreement.
	 
	10.	 	Security for claims
	 
	10.1	 	Each of the Warrantors receiving Consideration shall, immediately upon
Completion, deposit with the Escrow Agent such Warrantor’s proportionate
share of the Escrow

21

 

	 	 	Fund (“Proportionate Share”), calculated as the proportion of the
Consideration received by all of the Warrantors which is received by such
Warrantor, whether in the form of Purchaser Common Stock, series A1 and
series A2 Non-Qualified Redeemable Preference Shares or Exchange Option
certificates (plus, in each case, any additional shares as may be issued
upon any stock split, stock dividend or recapitalisation effected by the
Purchaser after Completion with respect to his or her securities in the
Escrow Fund), (and authorise the Purchaser to do so on its behalf),
PROVIDED ALWAYS THAT each Warrantor who has received Purchaser Common
Stock by way of Consideration shall be entitled to satisfy his or her
obligations to deposit securities in the Escrow Fund by first depositing
certificates for series A1 and series A2 Non-Qualified Redeemable
Preferred Stock and/or Exchange Options and, to the extent the deposit of
such series A1 and series A2 Non-Qualified Redeemable Preferred Stock and
Exchange Options does not satisfy such Warrantor’s obligations to deposit
securities in the Escrow Fund, such Warrantor shall deposit the balance
of his or her Proportionate Share by depositing Purchaser Common Stock.
Notwithstanding anything to the contrary in any of the Transaction
Documents, payments in respect of Claims and claims under the Indemnities
against a Warrantor shall be first taken from such Warrantor’s Deposited
Securities. The Warrantors’ Representative and the Purchaser will enter
into the Escrow Agreement upon completion of the Sale Agreement.
	 
	11.	 	Announcements
	 
	11.1	 	Except as referred to in sub-clause 11.2, no announcement concerning the
terms of this Deed shall be made by or on behalf of any of the parties
without the prior written consent of the others, such consent not to be
unreasonably withheld or delayed.
	 
	11.2	 	Any announcement or circular required to be made or issued by any party
by law or under the regulations of any securities exchange (including,
without limitation, Nasdaq) may be made or issued by that party without
consent if it has first sought consent and given the other parties a
reasonable opportunity to comment on the subject matter and form of the
announcement or circular (given the time scale within which it is required
to be released or despatched).
	 
	12.	 	Working Capital
	 
	12.1	 	Subject to clause 8, in the event the Preliminary Purchase Price
Adjustment shall have been understated, the Purchaser shall be entitled to
deduct from the Escrow Fund the amount by which the Final Purchase Price
Adjustment exceeds the Preliminary Purchase Price Adjustment.
	 
	13.	 	Notices
	 
	13.1	 	Any notice to a party under this Deed shall be in writing signed by or on
behalf of the party giving it and shall, unless delivered to a party
personally, be left at, or sent by prepaid first class post, prepaid
recorded delivery or facsimile to the address of the party as set out in
schedule 1 of this Deed or as otherwise notified in writing from time to
time. For this purpose, any party not ordinarily resident in the United
Kingdom shall maintain an address for service within the United Kingdom.

22

 

	13.2	 	Except as referred to in sub-clauses 13.3 and 13.4, a notice shall be
deemed to have been served:

	 	(a)	 	at the time of delivery if delivered personally;
	 
	 	(b)	 	48 hours after posting in the case of an address in the
United Kingdom and 96 hours after posting for any other address;
	 
	 	(c)	 	2 hours after transmission if served by facsimile on a
Business Day prior to 3pm or in any other case at 10 am on the
Business Day after the date of despatch.

	13.3	 	If the deemed time of service is not during normal business hours in the
country and time zone of receipt, the notice shall be deemed served at or,
in the case of faxes, two hours after the opening of business on the next
Business Day of that country in the respective time zone.
	 
	13.4	 	The deemed service provisions set out in sub-clause 13.2 shall not apply
to:

	 	(a)	 	a notice served by post, if there is a national or local
suspension, curtailment or disruption of postal services which
affects the collection of the notice or is such that the notice
cannot reasonably be expected to be delivered within 48 hours or 96
hours (as appropriate) after posting; and
	 
	 	(b)	 	a notice served by facsimile, if, before the time at which
the notice would otherwise be deemed to have been served, the
receiving party informs the sending party that the notice has been
received in a form which is unclear in any material respect, and, if
it informs the sending party by telephone, it also despatches a
confirmatory facsimile within two hours.

	13.5	 	In proving service it will be sufficient to prove:

	 	(a)	 	in the case of personal service, that it was handed to the
party or delivered to or left in an appropriate place for receipt of
letters at its address;
	 
	 	(b)	 	in the case of a letter sent by post, that the letter was
properly addressed, stamped and posted;
	 
	 	(c)	 	in the case of facsimile, that it was properly addressed and
despatched to the number of the party.

	13.6	 	A party shall not attempt to prevent or delay the service on it of a
notice connected with this Deed.
	 
	13.7	 	Each of the Warrantors agrees that the process by which any proceedings
are begun arising out of or in connection with this Deed may be served on
them by being delivered to the Warrantors’ Representative at his address
specified in schedule 1.
	 
	14.	 	Governing law and jurisdiction
	 
	14.1	 	This Deed shall be governed by and construed in accordance with the laws
of England
and Wales.

23

 

	14.2	 	Any dispute arising out of or in connection with this Deed shall be
referred to and finally resolved by arbitration under the rules of the
London Court of International Arbitration (“LCIA Rules”) by three
arbitrators appointed in accordance with the LCIA Rules.
	 
	14.3	 	The seat of arbitration shall be London.
	 
	14.4	 	The language used in arbitration shall be English.

In witness whereof the parties or their duly authorised representatives have
executed this Deed as a deed and delivered it at the date first appearing at
the head of this Deed.

24

 

Schedule 1

(The Warrantors)

	 	 	 
	 	 	Address for service within the
	 Name	 	United Kingdom
	NVP

	 	Faegre & Benson LLP

7 Pilgrim Street

London EC4V 6LB
	 
	 	 
	

	 	Attn. Max Audley
	 
	 	 
	Martin Knestrick

	 	Faegre & Benson LLP

7 Pilgrim Street

London EC4V 6LB
	 
	 	 
	

	 	Attn. Max Audley
	 
	 	 
	Pol Sweeney

	 	The Old Sorrell House

Church Hill

Holbrook

Suffolk
	
	 	 
	Stuart Potchinsky

	 	Danby Cottage

23 Cowarth Road

Sunningdale Berkshire

SL5 ON2
	 
	 	 
	Kenneth Colby

	 	Weybrook House

Bunch Lane

Haselemere

Surrey

GU27 1ET
	 
	 	 
	Simon Joles

	 	Elmy House

Bridge Street

Witham

Essex CM8 1BT
	 
	 	 
	Cristian Parrino

	 	130 Henley Road

Ipswich IP1 4NN

25

 

Schedule 2 – Part 1

(the Company)

	 	 	 
	The Company	 	 
	 
	Company Name
	 	Vidus Limited
	 
	 	 
	Registered number
	 	4069823
	 
	 	 
	Date of incorporation
	 	12/09/2000
	 
	 	 
	Place of incorporation
	 	United Kingdom
	 
	 	 
	Address of registered office
	 	North Felaw Maltings, 48 Felaw Street,

	 
	 	Ipswich, Suffolk, IP2 8HE
	 
	 	 
	Authorised share capital
	 	£124,033 divided into
	 
	 	 
	 
	 	51,100,000 preferred shares of £0.00003 each

	 
	 	and 12,250,000 common shares of £0.01 each
	 
	 	 
	Issued share capital
	 	£26,786.66 divided into
	 
	 	 
	 
	 	51,000,576 preferred shares of £0.00003 each

	 
	 	and 2,525,664 common shares of £0.01 each
	 
	 	 
	Granted Options:
	 	in respect of 8,220,566 Common Shares
	 
	 	 
	Vested Options (as at the
date of this Deed)
	 	in respect of 2,171,950 Common Shares
	 
	 	 
	Charges
	 	 

26

 

	 	 	 	 	 	 	 	 	 
	 	 	Date of	 	Date of	 	 	 	 
	Description	 	Charge	 	Registration	 	Amount Secured	 	Chargee
	Debenture

(Outstanding)

	 	16/04/2003
	 	30/04/2003
	 	All monies due or to become due
from the company to the chargee
under the terms of the
aforementioned instrument creating
or evidencing the charge.
	 	NV

Partners

IV L.P.
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Fixed and floating charges over the
undertaking and all property and
assets present and future including
goodwill, book debts, uncalled
capital, buildings, fixtures, fixed
plant and machinery (see the
mortgage charge document for full
details).	 	 
	 
	 	 	 	 	 	 	 	 
	Loan capital

	 	 	 	 	 	Nil	 	 
	 
	 	 	 	 	 	 	 	 
	Directors
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Henry James Berry	 	 
	

	 	 	 	 	 	263 Ferry Road	 	 
	

	 	 	 	 	 	Felixstowe	 	 
	

	 	 	 	 	 	Suffolk	 	 
	

	 	 	 	 	 	IP11 9RX	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Appointed: 16/04/2003	 	 
	

	 	 	 	 	 	Nationality: British	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Stewart Frank Gilbert Davies	 	 
	

	 	 	 	 	 	160 Rushmere Road	 	 
	

	 	 	 	 	 	Ipswich	 	 
	

	 	 	 	 	 	Suffolk	 	 
	

	 	 	 	 	 	IP4 3LE	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Appointed: 16/04/2003	 	 
	

	 	 	 	 	 	Nationality: British	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Andrew Garman	 	 
	

	 	 	 	 	 	51 Greenbriar Drive	 	 
	

	 	 	 	 	 	Summit	 	 
	

	 	 	 	 	 	New Jersey 07901	 	 
	

	 	 	 	 	 	U.S.A.	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Appointed: 16/04/2003	 	 
	

	 	 	 	 	 	Nationality: USA	 	 

27

 

	 	 	 	 	 	 	 	 	 
	 	 	Date of	 	Date of	 	 	 	 
	Description	 	Charge	 	Registration	 	Amount Secured	 	Chargee
	

	 	 	 	 	 	Martin Knestrick	 	 
	

	 	 	 	 	 	124 Red Hill Circle	 	 
	

	 	 	 	 	 	Tiburon	 	 
	

	 	 	 	 	 	CAL 94920	 	 
	

	 	 	 	 	 	USA	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Appointed: 22/06/2004	 	 
	

	 	 	 	 	 	Nationality: US	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Robert M. Rosenberg	 	 
	

	 	 	 	 	 	237 Christopher Street	 	 
	

	 	 	 	 	 	Montclair	 	 
	

	 	 	 	 	 	NJ 07043	 	 
	

	 	 	 	 	 	USA	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Appointed: 16/04/2003	 	 
	

	 	 	 	 	 	Nationality: USA	 	 
	 
	 	 	 	 	 	 	 	 
	Secretary

	 	 	 	 	 	Ernesto Giorgio Reggiani	 	 
	

	 	 	 	 	 	Lowland House	 	 
	

	 	 	 	 	 	The Causeway, Burwell	 	 
	

	 	 	 	 	 	Cambridge	 	 
	

	 	 	 	 	 	CB5 0DU	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	Appointed: 11/03/2003	 	 
	

	 	 	 	 	 	Nationality: Italian	 	 
	 
	 	 	 	 	 	 	 	 
	Accounting Reference Date	 	 	 	31 December	 	 
	 
	 	 	 	 	 	 	 	 
	Auditors

	 	 	 	 	 	Grant Thornton UK LLP	 	 

28

 

Schedule 2 – Part 2

(The Shareholders)

The Parties agree that the aggregate total number of shares in this Schedule 2,
Part 2 will not change between the date of this Deed and Completion – however,
the individual shareholdings set out opposite each shareholder’s name below may
change as result of transfers between each of the shareholders listed below but
no shares listed below shall go outside of the named shareholder group below.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	No. of Preferred	 	 
	Name
	 	Address
	 	Shares
	 	No. of Common Shares

	NVP

	 	C/o Walkers SV Limited
	 	 	51,000,576	 	 	 	—	 
	

	 	Walker House, Georgetown	 	 	 	 	 	 	 	 
	

	 	Grand Cayman, Cayman	 	 	 	 	 	 	 	 
	

	 	Islands	 	 	 	 	 	 	 	 
	Martin Knestrick

	 	124 Red Hill Circle,
	 	 	—	 	 	 	636,480	 
	

	 	Tiburon, CA 94920, USA	 	 	 	 	 	 	 	 
	Kenneth Colby

	 	Weybrook House, Bunch
	 	 	—	 	 	 	300,000	 
	

	 	Lane, Haselemere, Surrey,	 	 	 	 	 	 	 	 
	

	 	GU27 1ET	 	 	 	 	 	 	 	 
	Stuart Potchinsky

	 	Danby Cottage, 23 Cowarth
	 	 	—	 	 	 	300,000	 
	

	 	Road, Sunningdale,	 	 	 	 	 	 	 	 
	

	 	Berkshire, SL5 ON2	 	 	 	 	 	 	 	 
	Ernesto Giorgio

	 	Lowland House
	 	 	—	 	 	 	200,000	 
	Reggiani

	 	The Causeway	 	 	 	 	 	 	 	 
	

	 	Burwell	 	 	 	 	 	 	 	 
	

	 	Cambridge	 	 	 	 	 	 	 	 
	

	 	CB5 0DU	 	 	 	 	 	 	 	 
	Pol Sweeney

	 	The Old Sorrell House
	 	 	—	 	 	 	563,974	 
	

	 	Church Hill	 	 	 	 	 	 	 	 
	

	 	Holbrook	 	 	 	 	 	 	 	 
	

	 	Suffolk	 	 	 	 	 	 	 	 
	Stuart Kelly

	 	3 Prospect Hill
	 	 	—	 	 	 	20,762	 
	

	 	Donabate	 	 	 	 	 	 	 	 
	

	 	County Dublin	 	 	 	 	 	 	 	 
	

	 	Republic of Ireland	 	 	 	 	 	 	 	 
	Mark Horne

	 	Buckdenwood
	 	 	—	 	 	 	262,080	 
	

	 	Perry Road, Buckden	 	 	 	 	 	 	 	 
	

	 	Cambs, PE19 5WQ	 	 	 	 	 	 	 	 

29

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	No. of Preferred	 	 
	Name
	 	Address
	 	Shares
	 	No. of Common Shares

	Simon Joles

	 	Elmy House
	 	 	—	 	 	 	142,368	 
	

	 	Bridge Street	 	 	 	 	 	 	 	 
	

	 	Witham	 	 	 	 	 	 	 	 
	

	 	Essex, CM8 1BT	 	 	 	 	 	 	 	 
	Cristian Parrino

	 	130 Henley Road
	 	 	—	 	 	 	100,000	 
	

	 	Ipswich	 	 	 	 	 	 	 	 
	

	 	Suffolk	 	 	 	 	 	 	 	 
	Total

	 	 	 	 	51,000,576	 	 	 	2,525,664	 

30

 

Schedule 2 – Part 3

Share Transfers

	 	 	 	 	 
	 	 	No. of Common Shares Transferred to NVP at
	Shareholder
	 	Nominal Consideration

	Simon Joles

	 	 	10,082	 
	Cristian Parrino

	 	 	56,520	 
	Stuart Potchinsky

	 	 	108,750	 
	Pol Sweeney

	 	 	142,235	 
	Martin Knestrick

	 	 	238,340	 
	Kenneth Colby

	 	 	0	 
	Total:

	 	 	555,927	 

31

 

Schedule 3

Part 1

(Non-Tax Warranties by NVP)

NVP represents and warrants to the Purchaser, as follows:

	1.	 	Authority and Enforceability NVP has all requisite power and authority
to enter into this Deed and the Transaction Documents (as defined below)
to which NVP is a party and to consummate the transactions contemplated
hereby and thereby. The execution and delivery of this Deed and the
Transaction Documents to which NVP is a party and the consummation by NVP
of the transactions contemplated hereby and thereby have been duly
authorized by all necessary action on the part of NVP. This Deed and the
Transaction Documents to which NVP is a party have been duly executed and
delivered by NVP and constitutes the valid and binding obligation of NVP
enforceable against NVP in accordance with their terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium and other similar laws of general applicability relating to or
affecting creditors’ rights generally and by the application of general
principles of equity.
	 
	2.	 	Title to Preferred Shares NVP is the sole beneficial and registered
owner of all of the existing Preferred Shares and has good, valid and
marketable title to all of the registered Preferred Shares free and clear
of any Encumbrances. NVP represents that it has full right, power and
authority to sell, transfer and deliver all of the existing issued
Preferred Shares to the Purchaser and, upon delivery of the certificate or
certificates therefore duly endorsed for transfer to the Purchaser and
Purchaser’s payment for and acceptance thereof, will transfer to the
Purchaser good, valid and marketable title thereto free and clear of any
Encumbrances. NVP is not party to any voting trust, agreement or
arrangement affecting the exercise of the voting rights of the Preferred
Shares. There is no action, suit, proceeding, claim or, to NVP’s
knowledge, investigation against NVP or NVP’s assets, properties or, as
applicable, any of NVP’s respective officers or directors, pending or, to
NVP’s knowledge, threatened, at law or in equity, or before any court,
arbitrator or other tribunal, or before any administrative law judge,
hearing officer or administrative agency under Applicable Law relating to
or in any other manner impacting upon the Preferred Shares.
	 
	3.	 	No Violation The execution, delivery and performance of this Deed and
the Transaction Documents to which NVP is a party, and the consummation of
the sale of the Shares and the other transactions contemplated by this
Deed, do not and will not conflict with, or (with or without notice or
lapse of time, or both) result in a termination, breach, impairment or
violation of, or constitute a default under or result in the creation or
imposition of any lien, charge or Encumbrance upon any of the Preferred
Shares under, (a) any instrument, indenture, lease, mortgage or other
agreement or contract to which NVP is a party or to which NVP or any of
NVP’s assets or properties may be subject or (b) any Applicable Law to NVP
or NVP’s assets or properties. The consummation of the sale of the Shares
and the other transactions

32

 

	 	 	contemplated by this Deed and the Transaction Documents will not require
the consent of any third person with respect to the rights, licenses,
franchises, leases or agreement of NVP.
	 
	4.	 	Offer Shares Acquired Solely for Own Account The Offer Shares to be
received by NVP pursuant to the Sale Agreement will be acquired for
investment for NVP’s own account, not as a nominee or agent, and not with
a view to the resale or distribution of any part thereof. NVP does not
presently have any contract, understanding, agreement or arrangement with
any person to sell, transfer or grant participations to such person or to
any third party with respect to any of the Preferred Shares or, following
the consummation of the transactions contemplated by the Sale Agreement,
the Offer Shares. NVP understands that the Offer Shares have not been
registered under the United States Securities Act of 1933, as amended (the
“Securities Act”), by reason of a specific exemption therefrom, which
exemption depends upon, among other things, the bona fide nature of NVP’s
investment intent as expressed herein.
	 
	5.	 	Restricted Securities NVP understands that the Offer Shares to be
received pursuant to the Sale Agreement have not been registered under the
Securities Act and will be “restricted securities” under applicable United
States federal and state securities laws. Accordingly, NVP will not make
any sale, transfer, or other disposition of such Offer Shares unless (i)
such sale, transfer, or other disposition is within the applicable
limitations of and in compliance with Rule 144 promulgated by the SEC
under the Securities Act, or (ii) (a) some other exemption from
registration under the Securities Act is available with respect to any
such proposed sale, transfer or other disposition of such Offer Shares,
(b) such sale, transfer or other disposition of Offer Shares is made to a
person or entity who agrees in writing to give the Purchaser the same
representations and warranties as set forth in paragraphs 4 through 9 of
Schedule 3, Part 1 of this Deed and (c) NVP provides an opinion of
counsel, in form and substance reasonably satisfactory to the Purchaser,
that registration and qualification of the Offer Shares is not necessary
to effect such transfer under the Securities Act, or (iii) such
distribution of Offer Shares has been registered under the Securities Act.
NVP has no present intention to sell or otherwise dispose of such Offer
Shares and is acquiring such Offer Shares for investment and not with a
view to resale or distribution. NVP shall provide to the Purchaser
written notice of any transfer of Offer Shares pursuant to sub-paragraph
(ii) of this paragraph 5, which written notice shall set forth the name,
social security number, mailing address and amount of Offer Shares
transferred with respect to each transferee.
	 
	6.	 	Information Concerning Purchaser NVP has had the opportunity to ask
questions of, and obtain any additional information reasonably available
to Purchaser with respect to its plans, results of operations, financial
condition, business, properties, assets or business prospects, and NVP has
received such information regarding the Purchaser that NVP has requested
from the Purchaser. NVP acknowledges that it has previously received (i)
a copy of Purchaser’s Quarterly Report on Form 10-Q for the quarters ended
March 31, 2004 and June 30, 2004, (ii) a copy of the Purchaser’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2003 and (ii) a
copy of the Purchaser’s Proxy Statement as filed with the Commission on
April 29, 2004.

33

 

	7.	 	Legends NVP understands that the certificates representing the Offer
Shares, may bear one or all of the following legends:
	 
	7.1	 	“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT
AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION
THEREOF. NO SUCH SALE TRANSFER OR OTHER DISPOSITION MAY BE EFFECTED
UNLESS (I) SUCH SALE, TRANSFER OR OTHER DISPOSITION IS WITHIN THE
APPLICATION LIMITATION OF AND IN COMPLIANCE WITH RULE 144 PROMULGATED BY
THE SECURITIES AND EXCHANGE COMMISSION UNDER THE UNITED STATES SECURITIES
ACT OF 1933 (THE “SECURITIES ACT”), OR (II)(A) SOME OTHER EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT IS AVAILABLE WITH RESPECT TO ANY
SUCH PROPOSED SALE, TRANSFER OR OTHER DISPOSITION OF SUCH OFFER SHARES,
(B) SUCH SALE, TRANSFER OR OTHER DISPOSITION OF OFFER SHARES IS MADE TO A
PERSON OR ENTITY WHO AGREES IN WRITING TO GIVE THE PURCHASER CERTAIN
REPRESENTATIONS AND WARRANTIES SET FORTH IN THE DEED OF WARRANTY AND
INDEMNIFICATION, DATED DECEMBER 15, 2004 AND (C) THE HOLDER PROVIDES AN
OPINION OF COUNSEL, IN THE FORM AND SUBSTANCE REASONABLY SATISFACTORY TO
THE PURCHASER, THAT REGISTRATION AND QUALIFICATION OF THE OFFER SHARES IS
NOT NECESSARY TO EFFECT SUCH TRANSFER UNDER THE SECURITIES ACT”; and
	 
	7.2	 	Any legend required by the securities laws of any state to the extent
such laws are applicable to the shares represented by the certificate so
legended.
	 
	7.3	 	The Purchaser hereby agrees that, unless previously transferred or sold
pursuant to a transaction described in sub-sections (i), (ii) or (iii) of
paragraph 5 of this Schedule 3, Part 1, certificates with the legend set
forth in paragraph 7.1 above will, upon the request of NVP, be substituted
by the delivery of certificates without such legend if two years shall
have elapsed from the date NVP acquired the Offer Shares received in the
Purchaser and the provisions of Rule 144(k) are then available to NVP.
	 
	7.4	 	If a sale or transfer is made pursuant to a transaction described in
sub-section (i) of paragraph 5 of this Schedule 3, Part 1, and prior to
the legend set forth in paragraph 7.1 being removed pursuant to paragraph
7.3, certificates with the above legend will be substituted by delivery of
certificates without such legend upon delivery of an opinion of counsel,
in the form and substance reasonably satisfactory to Purchaser, that the
requirements of Rule 144 have been complied with in connection with such
sale or transfer.
	 
	8.	 	Foreign Investor NVP hereby represents that it has satisfied itself as
to the full observance of the laws of its jurisdiction in connection with
the transactions contemplated by the Sale Agreement, including (i) the
legal requirements within its jurisdiction for the transfer of the
Preferred Shares, (ii) any foreign exchange restrictions applicable to
such transfer, (iii) any governmental or other consents that may need to
be obtained, and (iv) the income tax and other tax consequences, if any,

34

 

	 	 	that may be relevant to the purchase, holding, redemption, sale, or
transfer of the Preferred Shares in exchange for the Offer Shares. NVP’s
beneficial ownership of the Offer Shares will not violate any applicable
securities or other laws of NVP’s jurisdiction of organization.
	 
	9.	 	Accredited Investor NVP is an accredited investor as defined in Rule
501(a) of Regulation D promulgated under the Securities Act has such
knowledge and experience in financial and business matters that NVP is
capable of evaluating the merits and risks of acquiring the Offer Shares.
	 
	10.	 	Investment in Company NVP hereby represents and warrants that, save for
the Loan Agreement, the Debenture and the Cross Receipts, each of which
have been Disclosed and are appended to the Disclosure Letter, there are
no other agreements, contracts or arrangements between NVP and the Company
and that it has not converted all or any part of the principal originally
outstanding under the Loan Agreement into any shares in the capital of the
Company and that it has not assigned any of the Company’s Intellectual
Property pursuant to the terms of the Debenture.
	 
	11.	 	Access Rights Agreement NVP hereby represents and warrants that the
Company has no rights or obligations arising under the access rights
agreement dated 31 March 2003 between NVP and BT Plc.

35

 

Schedule 3

Part 2

(Non-Tax Warranties)

The Warrantors

	1.	 	Capacity
	 
	1.1	 	Each Warrantor has the requisite power and authority to enter into and
perform his or its obligations under this Deed.
	 
	1.2	 	No Warrantor is bankrupt, has proposed a voluntary arrangement or has
made or proposed any arrangement or composition with his creditors or any
class of his creditors.
	 
	1.3	 	This Deed constitutes the valid, legal and binding obligation of each
Warrantor enforceable in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganisation,
moratorium and other similar laws of general applicability relating to or
effecting creditors’ rights generally and by the application of general
principals of equity.
	 
	1.4	 	Arrangements with Warrantor Associates
	 
	 	 	Except with respect to employment agreements or as otherwise set forth in
the Disclosure Letter, there are no agreements or transactions or
obligations (actual or contingent), outstanding or remaining in whole or
in part to be performed between the Company and any Warrantor Associate.
	 
	1.5	 	Other interests of any Warrantor Associate
	 
	 	 	No Warrantor, other than NVP has or presently intends to acquire any
interest, direct or indirect, in any business which has a close trading
relationship with or which competes or is likely to compete with any
business now carried on by the Company and, so far as the Warrantors are
aware, no Warrantor Associate has or presently intends to do so.

Share capital

	2.	 	Company
	 
	2.1	 	As at the date of this Deed, the shares set out in Schedule 2, Part 2
constitute the entire issued and allotted share capital of the Company and
are fully paid or credited as fully paid, were duly authorised when
issued, were validly issued and free from any Encumbrances.
	 
	2.2	 	Other than pursuant to the Company Share Option Scheme or the Sale
Agreement, there is no agreement, arrangement or commitment outstanding
which (i) calls for the

36

 

	 	 	allotment, issue or transfer of, any share, voting security or loan
capital in the Company or (ii) calls for the repurchase or redemption of
any shares in the Company.
	 
	2.3	 	As at the date of this Deed, there are 2,171,950 vested options to
subscribe for fully paid ordinary shares in the capital of the Company
pursuant to the Company Share Option Scheme. The Disclosure Letter sets
out, as at the date of this Deed, (i) the name of each option holder
granted options pursuant to the Company Share Option Scheme (an “Option
Holder”), (ii) the exercise price of each option granted pursuant to the
Company Share Option Scheme, (iii) the number of shares capable of being
issued pursuant to the exercise of all options granted under the Company
Share Option Scheme, (iv) a schedule outlining the dates upon which all
options granted pursuant to the Company Share Option Scheme shall vest,
and (v) confirming whether the vesting or exercise of any option granted
pursuant to the Company Share Option Scheme shall be accelerated by any of
the transactions contemplated by the Sale Agreement or the Offer or upon
any other event or condition not referred to in the Company Share Option
Scheme.
	 
	2.4	 	All options granted over shares in the Company have been duly authorised
by the Company and have been validly granted including without limitation
in compliance with all applicable securities laws.
	 
	2.5	 	The Company has not taken any action that would result in the accelerated
vesting, or exercisability or payment of any options to purchase shares in
the Company as a consequence of the execution of, or consummation of the
transactions contemplated by this Deed, the Sale Agreement or the Offer.
	 
	2.6	 	As at the date of this Deed, there are no contracts, commitments or
agreements relating to the voting of the Shares (i) between or among the
Company and any of its shareholders and/or (ii) as far as the Warrantors
are aware, between or among any of the Company’s shareholders.
	 
	2.7	 	No holder of options in the Company has ceased to be employed (and for
the purposes of this Warranty, “employed” shall mean as an employee,
consultant or contractor to the Company) and none of the shareholders of
the Company (apart from NVP) is a person who is not employed by the
Company and none of them are resident outside the UK.
	 
	2.8	 	None of the assets of the Company, which were the subject of the asset
transfer agreement dated 31 March 2003 with British Telecommunications PLC
(disclosed in the Disclosure Letter) were, the subject of a transfer at an
undervalue, within the meaning of sections 238 or 239 of the Insolvency
Act 1986.
	 
	2.9	 	The Company has no liabilities or onerous obligations arising from the
period from incorporation of the Company to 31 March 2003.
	 
	3.	 	Subsidiaries
	 
	3.1	 	The Company does not own, directly or indirectly, any ownership, equity,
profits or voting interest in any corporation, partnership, joint venture
or other entity or have any
agreement or commitment to purchase any such interest.

37

 

	3.2	 	The Company does not hold nor is it liable on any share or relevant
security which is not fully paid up or which carries any liability.
	 
	3.3	 	The Company does not reside, operate or have any branch, agency, place of
business or establishment outside England and Wales.

Corporate matters

	4.	 	Insolvency of the Company
	 
	4.1	 	No order has been made, no resolution has been passed, no petition
presented and no meeting convened for the winding up of the Company or for
a provisional liquidator to be appointed in respect of the Company and the
Company has not been a party to any transaction which could be avoided in
a winding up.
	 
	4.2	 	No administration order has been made and no petition for one has been
presented in respect of the Company.
	 
	4.3	 	No administrator, receiver or administrative receiver has been appointed
in respect of the Company or any of its assets. No application for the
appointment of an administrator has been made in accordance with the out
of court procedure under the Enterprise Act 2002.
	 
	4.4	 	The Company is not insolvent, has not failed nor is unable to pay, nor
has no reasonable prospect of being unable to pay, any of its debts as
they fall due, within the meaning of section 123 of the Insolvency Act
1986.
	 
	4.5	 	No voluntary arrangement has been proposed under section 1 of the
Insolvency Act 1986 in respect of the Company and the Company has not made
or proposed any arrangement or composition with its creditors or any class
of them.
	 
	4.6	 	No distress, execution or other process has been levied on the Company’s
assets or action taken to repossess goods in the possession of the
Company.
	 
	4.7	 	No unsatisfied judgment is outstanding against the Company and no demand
has been served on the Company under section 123(1)(a) of the Insolvency
Act 1986
	 
	4.8	 	The Company is not an insolvent person within the meaning of any
Applicable Law.
	 
	4.9	 	No event analogous to any referred to in sub-paragraphs 4.1 to 4.7 has
occurred anywhere in the world.
	 
	5.	 	Statutory books and documents filed
	 
	5.1	 	The statutory books, including all registers and minute books, of the
Company have been properly kept and are up to date.
	 
	5.2	 	All documents which should have been delivered by the Company to the
Registrar of Companies in England and Wales are complete and accurate in
all material respects

38

 

	 	 	and have been properly so delivered.
	 
	5.3	 	The copy of the memorandum and articles of association of the Company
Disclosed has embodied in it or annexed to it a copy of each resolution as
referred to in section 380 of the Act, and is accurate and complete in all
respects.
	 
	5.4	 	Since the Accounts Date the members of the Company in general meeting, or
of any class of them, have not passed any resolution other than
resolutions relating to the ordinary business of annual general meetings.

Information

	6.	 	Accuracy and adequacy of information
	 
	6.1	 	The information contained in schedule 2 to this Deed is accurate and
complete and is not misleading because of any omission or ambiguity.

Accounts

	7.	 	Preparation and contents of the Accounts

	7.1	 	The Accounts:

	 	(a)	 	have been prepared in accordance with the requirements of all
relevant statutes and generally accepted United Kingdom accounting
practices including, without limitation, all applicable Financial
Reporting Standards issued by the Accounting Standards Board,
Statements of Standard Accounting Practice issued by the Institute
of Chartered Accountants of England and Wales and Statements from
the Urgent Issues Task Force current at the Accounts Date and, where
the accounting practice used to prepare the Accounts differs from
those applicable in previous financial periods, the effect of any
such difference is Disclosed in the Disclosure Letter;
	 
	 	(b)	 	have been audited by a statutory or certified auditor (as
applicable) who has rendered an auditor’s certificate without
qualification; and
	 
	 	(c)	 	have been duly filed in accordance with the Act.

	7.2	 	Without prejudice to the generality of sub-paragraph 7.1:

	 	(a)	 	the Accounts:

	 	(i)	 	give a true and fair view of the state of affairs
of the Company at the Accounts Date and the profits or losses
of the Company for the financial period ending on that date;
	 
	 	(ii)	 	contain a provision or reserve for all
liabilities and for all capital and revenue commitments of the
Company as at the Accounts Date to the extent required by UK
GAAP;
	 
	 	(iii)	 	disclose all the assets of the Company as at the
Accounts Date;

39

 

	 	(iv)	 	make adequate provision for bad and doubtful
debts;

	 	(b)	 	in the Accounts, in valuing work-in-progress no value was
attributed in respect of eventual profits and adequate provision was
made for such losses as were at the time of signature of the
Accounts by directors of the Company reasonably foreseeable as
arising or likely to arise.

	7.3	 	The profits and losses of the Company shown in the Accounts were not,
save as disclosed in the Accounts or in any note accompanying them, to any
material extent affected by any extraordinary, exceptional, unusual or
non-recurring income, capital gain or expenditure or by any other factor
known to the Warrantors rendering any such profit or loss for such period
exceptionally high or low.
	 
	7.4	 	The audited profit and loss accounts and audited balance sheets of the
Company contained in the Accounts were prepared on a consistent basis with
each other.
	 
	7.5	 	Except for obligations and liabilities reflected in the Accounts, the
Company has no off balance sheet obligation and liability of any nature
(matured or un-matured, fixed or contingent) to, any financial interest
in, any third party or entities, the purpose or effect of which is to
defer, postpone, reduce or otherwise avoid or adjust the recording of debt
expenses incurred by the Company.
	 
	7.6	 	The Company has established and maintained (i) disclosure controls and
procedures (as defined in rule 13a-15 promulgated under the Securities
Exchange Act 1934 (the “Exchange Act”)) and (ii) internal controls over
financial reporting (as defined in rule 13a-15 promulgated under the
Exchange Act) consistent with reasonably prudent business practices for a
private limited company incorporated in England & Wales of similar size
and operating history. So far as the Warrantors are aware and in each
case consistent with reasonably prudent business practices for a private
limited company incorporated in England & Wales of similar size and
operating history, (i) such disclosure controls and procedures are
effective to ensure that material information relating to the Company is
made known to the Company’s senior management by others within those
entities, (ii) such internal controls over financial reporting provide
reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in
accordance with UK GAAP, (iii) there are no significant deficiencies or
material weaknesses in the design or operation of the Company’s internal
controls which could materially adversely affect the Company’s ability to
record, process, summarize and report financial data and (iv) there is no
fraud, whether or not material, that involves management or other
employees who have a significant role in the Company’s internal controls.
	 
	8.	 	Accounting records
	 
	8.1	 	The accounting records of the Company comply with the requirements of
sections 221 and 222 of the Act, do not contain or reflect any material
inaccuracy or discrepancy and present and reflect in accordance with
generally accepted accounting principles and standards the financial
position of and all transactions entered into by the Company or to which
it has been a party.
	 
	8.2	 	All relevant financial books and records of the Company are in its
possession or

40

 

	 	 	otherwise under its direct control.
	 
	8.3	 	Where any of the records of the Company are kept on computer, the Company:

	 	(a)	 	is the owner of all hardware and properly and irrevocably
licensed to use all software necessary to enable it to use the
records as they have been used in its business to the date of this
Deed and to Completion;
	 
	 	(b)	 	does not share any hardware or software relating to the
records with any person; and
	 
	 	(c)	 	maintains back up records and support in the event of any
fault or failure of such computer hardware and software.

	9.	 	Management Accounts
	 
	 	 	The Management Accounts have been carefully prepared on bases consistent
with the Accounts and otherwise in accordance with good accounting
practice and generally accepted accounting practices (to the extent
applicable to unaudited accounts), fairly reflect the trading position of
the Company as at their date and for the period to which they relate and
are not affected by any extraordinary, exceptional, unusual or
non-recurring income, capital gain or expenditure or by any other factor
known by the Warrantors rendering profits or losses for the period
covered exceptionally high or low.
	 
	10.	 	Events since the Accounts Date
	 
	10.1	 	Since the Accounts Date and save as Disclosed in the Management Accounts
or the Disclosure Letter there has been no material change in:

	 	(a)	 	the financial prospects of the Company;
	 
	 	(b)	 	the value or state of assets or amount or nature of
liabilities as compared with the position disclosed in the Accounts.

	10.2	 	The Company has since the Accounts Date carried on its business in the
ordinary course and without interruption, so as to maintain it as a going
concern and paid its creditors in the ordinary course and within the
credit periods agreed with such creditors.
	 
	10.3	 	Since the Accounts Date no material supplier of the Company has ceased or
restricted supplies or threatened so to do, there has been no loss or
material curtailment of the business transacted by the Company with any
customer which at any time in the preceding financial year represented 10
per cent or more of the turnover of the Company and the Warrantors are not
aware of any circumstances likely to give rise to any of the above.
	 
	10.4	 	Since the Accounts Date the Company has not:

	 	(a)	 	incurred or committed to incur:

41

 

	 	(i)	 	material capital expenditure exceeding £50,000;
or
	 
	 	(ii)	 	any liability whether actual or contingent except
for full value or in the ordinary course of business;

	 	(b)	 	acquired or agreed to acquire:

	 	(i)	 	any asset for a consideration higher than its
market value at the time of acquisition or otherwise than in
the ordinary course of business; or
	 
	 	(ii)	 	any business or substantial part of it or any
share or shares in a body corporate;

	 	(c)	 	disposed of or agreed to dispose of, any of its assets except
in the ordinary course of business and for full value;
	 
	 	(d)	 	repaid wholly or in part any loan except upon the due date or
dates for repayment;
	 
	 	(e)	 	issued or allotted share or loan capital except for share
option grants to employees or consultants to the Company and which
is disclosed, purchased or redeemed any shares, increased its
authorised share capital except as required to meet commitments to
option holders and which is disclosed, reduced or re-organised its
share capital or agreed to do so; or
	 
	 	(f)	 	declared or paid any distribution of profit, including for
the avoidance of doubt any dividends;
	 
	 	(g)	 	made any material change in its accounting methods,
principles or practices, except as required by concurrent changes in
UK GAAP.

	10.5	 	None of the debts included in the Accounts or any of the debts
subsequently arising have been the subject of factoring by the Company and
the Warrantors are not aware of any circumstances which could result in
any presently outstanding debt in excess of £10,000 individually or
£50,000 in aggregate not being paid in full.

Financial

	11.	 	Financial commitments and borrowings
	 
	11.1	 	Complete and accurate details of all overdraft, loan and other financial
facilities available to the Company and the amounts outstanding under them
at the close of business on the day preceding the date of this Deed
together with a complete and accurate list of all persons authorised under
any banking arrangements to execute relevant documentation arising out of
or in connection with such facilities for and on behalf of the Company are
set out in the Disclosure Letter and none of the Warrantors nor the
Company has done anything, or omitted to do anything, as a result of which
the continuance of any of those facilities might be affected or
prejudiced.
	 
	11.2	 	The Company is not a party to, or has agreed to enter into, any lending,
or purported lending, agreement or arrangement (other than agreements to
give credit in the

42

 

	 	 	ordinary course of its business).
	 
	11.3	 	The Company is not exceeding any borrowing limit imposed upon it by its
bankers, other lenders, its articles of association or otherwise nor has
the Company entered into any commitment or arrangement which might lead it
so to do.
	 
	11.4	 	No overdraft or other financial facilities available to the Company are
dependent upon the guarantee of or security provided by any other person.
	 
	11.5	 	No event has occurred or been alleged which is or, with the passing of
any time or the giving of any notice, certificate, declaration or demand,
would become an event of default under, or breach of, any of the terms of
any loan capital, borrowing, debenture or financial facility of the
Company or which would entitle any person to call for repayment prior to
normal maturity.
	 
	11.6	 	The Company is not, nor has it agreed to become, bound by any guarantee,
indemnity, surety or similar commitment.
	 
	11.7	 	The Company has not received any grants, allowances, loans or financial
aid of any kind from any government departmental or other board, body,
agency or authority which may become liable to be refunded or repaid in
whole or in part.
	 
	11.8	 	The Company has not engaged in financing of a type which is not required,
to be or has not been, shown or reflected in the Accounts.
	 
	11.9	 	The Company has no outstanding obligations in respect of a derivative
transaction, including but not limited to, any foreign exchange
transaction (other than relating to the sale of its assets in foreign
countries) other than under any derivative transaction that has been
Disclosed.
	 
	12.	 	Insurances
	 
	12.1	 	The Disclosure Letter contains a complete and accurate list of the
Policies held by the Company as at the date of this Deed including, for
each such Policy; the Policy title, the insurer, the annual premium
payable and Policy limits.
	 
	12.2	 	The Policies are valid and enforceable and all premiums due have been
paid. There are no outstanding claims or so far as the Warrantors are
aware circumstances likely to give rise to a claim under the Policies or
which would be required to be notified to the insurers and nothing has
been done or omitted to be done which has made or, so far as the
Warrantors are aware, would be reasonably likely to make any Policy void
or voidable, including without limitation, any misleading statements or
omissions on the part of the officers of the Company to the insurers or
their brokers in relation to the original application or renewal
application for Policies, or as a result of which the renewal of any
Policy would be reasonably likely be refused or the premiums due in
respect of them may be liable to be materially increased.
	 
	12.3	 	There are no claims outstanding or pending, or so far as the Warrantors
are aware, threatened, against the Company, which would not be fully
covered by insurance, other than any “excess” payable by the Company in
respect of such claims, where for

43

 

	 	 	the avoidance of doubt “excess” shall mean the first payment payable by
the insured and known as the “insurance deductible” in the United States
of America.
	 
	12.4	 	The Disclosure Letter accurately sets forth, with respect to each Policy
maintained by or at the expense of, or for the direct or indirect benefit
of, the Company: (i) the name of the insurance carrier that issued such
Policy and the Policy number of such Policy; (ii) whether such Policy is a
“claims made” or and “occurrences” Policy; (iii) a description of the
coverage provided by such Policy and the material terms and provisions of
such Policy (including all applicable coverage limits, deductible amounts
and co-insurance arrangements); (iv) the annual premium payable with
respect to such Policy , and the cash value (if any) of such Policy; and
(v) a description of any claims pending, with respect of such Policy. The
Disclosure Letter also identifies (1) each pending application for
insurance that has been submitted by or on behalf of the Company, and (2)
each risk-sharing arrangement affecting the Company or any of its assets.
The Company has made available to the Purchaser accurate summaries of all
of the Policies identified the Disclosure Letter (including all renewals
thereof and endorsements thereto) and all of the pending applications
identified in the Disclosure Letter.

Trading and contracts

	13.	 	Contracts and commitments
	 
	13.1	 	All contracts, agreements, transactions, obligations, commitments,
understandings or arrangements requiring in relation to its performance
any payment in excess of £25,000 to which the Company is a party are
Disclosed in the Disclosure Letter.
	 
	13.2	 	The Company is not a party to any agreement, arrangement or commitment
which:

	 	(i)	 	relates to matters outside its ordinary business
or was not entered into on arms’ length terms;
	 
	 	(ii)	 	cannot readily be fulfilled or performed by it on
time; or
	 
	 	(iii)	 	cannot be terminated, without giving rise to any
liabilities on it, by it giving 3 months’ notice or less.

	13.3	 	The Company has not:

	 	(a)	 	outstanding any bid, tender, sale or service proposal which
is material in relation to its business or which, if accepted, would
be reasonably likely to result in a loss; or
	 
	 	(b)	 	granted any power of attorney or other such authority
(whether express or implied) which is still outstanding.

	13.4	 	No Warrantor is aware of any actual, or alleged breach, invalidity,
grounds for termination, grounds for rescission, grounds for avoidance or
grounds for repudiation of, any material contract to which the Company is
a party.
	 
	13.5	 	All of the current clients and customers of the Company that represent
individually

44

 

	 	 	more than 5% of income invoiced are Disclosed and the Disclosure Letter
annexes complete and accurate copies of each such client agreement
(“Client Agreements”) and there are no collateral terms (except those
implied by law) that materially affect the Client Agreements and save as
mentioned therein none of the clients or customers represents more than
5% of income invoiced during the 12 months immediately preceding the date
of this Deed and the Warrantors are not aware of any client or customer
of the Company which has withdrawn or is considering withdrawing from or
not placing with the Company all or any part of the work placed with the
Company during the twelve months immediately preceding the date of this
Deed.
	 
	13.6	 	There have been no material, written complaints within the last two years
or since incorporation, whichever is shorter, made by any party thereto in
respect of any aspect of any of the contracts with clients, customers or
suppliers so far as the Warrantors are aware nor with regard to the
performance of any agents or sub-contractors appointed by the Company to
perform any part of any such contract.
	 
	13.7	 	All current clients and customers representing in excess of 5% of income
invoiced have promptly paid or procured the payment of any remuneration
due to the Company and no credit notes or refunds have been issued or have
been agreed to be issued which, in any such case, will further reduce the
profit before taxation or further increase losses before taxation shown in
the Management Accounts.
	 
	13.8	 	No current client or customer has, within the twelve months preceding
this Deed, sought to negotiate a reduction or material change in the terms
of remuneration as contained in its contract with the Company.
	 
	13.9	 	There is not outstanding any contract or arrangement to which the Company
is a party and to which any director, Warrantor Associate, agent or
employee of the Company and/or any associate thereof is or has been
interested whether directly or indirectly other than for contracts or
arrangements with respect to normal salary and bonuses and other
employment benefits and in the case of NVP, the Loan Agreement and
Debenture.
	 
	13.10	 	No person is entitled to receive from the Company any introduction fee
brokerage or other commission, whether in the form of cash or securities
in connection with the introduction of or continuation of any business to
or with the Company, including without limitation, in relation to any debt
or equity investments in the Company whether completed or not.
	 
	13.11	 	Neither the Company, nor, so far as the Warrantors are aware, any
director, officer, employee or agent of the Company, has directly or
indirectly, (a) made any contribution, gift, bribe, rebate, payoff,
influence payment, kickback or other payment to any person or governmental
or quasi-governmental body, regardless of form, whether in money,
property, or services (other than promotional gifts or corporate
hospitality made in the ordinary course of business), either (i) to obtain
favourable treatment in securing any contract, or (ii) to pay for
favourable treatment for any contract secured; or (iii) to obtain special
concessions or for special concessions already obtained for or in respect
of the Company, or (iv) in violation of any Applicable Law; or (b)
established or maintained any fund or asset that has not been
recorded in the books and records of the Company.

45

 

	14.	 	Terms of trade
	 
	 	 	The Company has not given any guarantee or warranty (other than any
implied by law) or made any representation in respect of any product or
services sold or supplied by it nor has it accepted any liability to
service, maintain, repair or otherwise do or refrain from doing anything
in relation to such goods or services after they have been sold or
supplied by it which could give rise to a liability in excess of £25,000
individually or £100,000 in aggregate except for those contained in its
standard conditions of trading, a complete and accurate copy of which is
Disclosed.
	 
	15.	 	Product liability
	 
	 	 	The Company has not manufactured, sold or provided any product or service
which does not in every respect comply with all Applicable Law,
regulations or standards or which is defective or dangerous or not in
accordance with any representation or warranty, express or implied, given
in respect of it.
	 
	16.	 	Licences and consents
	 
	16.1	 	The Company is incorporated under the laws of England & Wales and has the
requisite corporate or other power and authority and all necessary
governmental authority, approvals and consents to own, lease and operate
its assets and property and to carry on its business as now being
conducted.
	 
	16.2	 	Complete and accurate details of all licences, consents, permissions,
authorisations and approvals required by the Company or which the Company
knows will be required for the carrying on of its business are contained
in the Disclosure Letter and all of them have been obtained by it and are
in full force and effect.
	 
	16.3	 	As far as the Warrantors are aware, all reports, returns and information
required by law or as a condition of any licence, consent, permission,
authorisation or approval to be made or given to any person or authority
in connection with the business of the Company have been made or given to
the appropriate person or authority and there are no circumstances which
indicate that any licence, consent, permission, authorisation or approval
might not be renewed in whole or in part or is likely to be revoked,
suspended or cancelled or which may confer a right of revocation,
suspension or cancellation.
	 
	17.	 	Trading partners
	 
	17.1	 	The Company does not act or carry on business in partnership with any
other person and is not a member of any corporate or unincorporated body,
undertaking or association.
	 
	17.2	 	The Company is not a party to any joint venture agreement or arrangement
or any agreement or arrangement under which it is to participate with any
other person in any business.

46

 

	17.3	 	The Company is not a party to any agency, distributorship, licence or
management agreement or is a party to any contract or arrangement which
restricts its freedom to carry on its business as currently carried on.
	 
	18.	 	Competition and trade regulation law
	 
	18.1	 	The Company is not nor has it been a party to any agreement or
arrangement nor has it been engaged in any practice, which in whole or in
part infringes or may be invalidated by any anti-trust, restrictive trade
practice, fair trading or consumer protection laws or legislation in any
jurisdiction in which the Company carries on business including Articles
81 or 82 of the EC Treaty or any subordinate regulations or directives,
the Fair Trading Act 1973, Chapters I or II of the Competition Act 1998,
the Enterprise Act 2002 or any secondary legislation made under any of
them.
	 
	18.2	 	The Company has not:

	 	(a)	 	given any assurances, undertakings or commitments to, or is
subject to, any order of, or has received any request for
information from or as far as the Warrantors are aware investigation
by;
	 
	 	(b)	 	received, nor as far as the Warrantors are aware, is it
likely to receive any process, notice or communication, formal or
informal by or on behalf of;
	 
	 	(c)	 	been or is a party to, or is or has been concerned in, any
agreement or arrangement in respect of which a request for guidance
or an application for negative clearance and/or exemption has been
made to

	 	 	the Office of Fair Trading, the Competition Commission, the Secretary of
State, the European Commission or any other governmental or other
authority, court, tribunal, department, board, body or agency of any
country having jurisdiction in anti-trust or similar matters in relation
to any business of the Company.
	 
	18.3	 	The Company has not received nor applied for any aid from any European
Community member state or through any state resources in breach of
Articles 87 and 88 of the Treaty of Rome.
	 
	18.4	 	The Company has not received, nor so far as the Warrantors are aware is
it likely to receive any complaint or threat of complaint from any other
person in relation to alleged infringements of any anti-trust, restrictive
trade practice, fair trading or consumer protection laws or legislation in
any jurisdiction in which the Company carries on business.
	 
	19.	 	Compliance with law
	 
	19.1	 	The Company has not committed nor is it liable for, and so far as the
Warrantors are aware no claim has been or, will be made that it has
committed or is liable for, any criminal, illegal or unlawful act imposed
by or pursuant to Applicable Law or otherwise.
	 
	19.2	 	The Company has not received written notification that any investigation
or inquiry is

47

 

	 	 	being, or has been, conducted by, or received any request for information
from any Governmental Authority in respect of its affairs and, so far as
the Warrantors are aware, there are no circumstances which would give
rise to such investigation, inquiry or request.
	 
	19.3	 	None of the activities, contracts or rights of the Company is ultra
vires, unauthorised, invalid or unenforceable or in breach of any contract
or covenant and all documents in the enforcement of which it may be
interested are valid.
	 
	19.4	 	As far as the Warrantors are aware, the Company is in compliance with the
Applicable Laws applicable to its assets and its business and operations,
including all Applicable Laws applicable to the Company’s relationship
with its employees.
	 
	20.	 	Litigation and disputes
	 
	20.1	 	Except for actions to recover any debt incurred in the ordinary course of
the business owed to the Company where each individual debt and its costs
outstanding amounts to less than £1,000:

	 	(a)	 	neither the Company nor any person for whose acts the Company
may be liable is engaged in any litigation, arbitration,
administrative or criminal proceedings, whether as claimant,
respondent or otherwise;
	 
	 	(b)	 	no litigation, arbitration, administrative or criminal
proceedings by or against the Company or any person for whose acts
it may be liable are so far as the Warrantors are aware threatened
or expected and, as far as the Warrantors are aware, none are
pending;
	 
	 	(c)	 	as far as the Warrantors are aware, there are no facts or
circumstances likely to give rise to any litigation, arbitration,
administrative or criminal proceedings against the Company or any
person for whose acts it may be liable.

	20.2	 	The Company is not subject to any order or judgment given by any court or
Governmental Authority or has not been a party to any undertaking or
assurance given to any court or governmental or other authority,
department, board, body or agency which is still in force, nor as far as
the Warrantors are aware are there any facts or circumstances likely to
give rise to it becoming subject to such an order or judgment or to be a
party to any such undertaking or assurance.

Assets

	21.	 	Ownership and condition of assets
	 
	21.1	 	Each of the assets included in the Accounts or acquired by the Company
since the Accounts Date (other than the Real Property and current assets
subsequently disposed of or realised in the ordinary course of business)
is owned both legally and beneficially by the Company free from
Encumbrances and any third party rights and, if capable of possession, is
in its possession.
	 
	21.2	 	The Company has not acquired, or agreed to acquire, any asset on terms
that title to

48

 

	 	 	that asset does not pass until full payment is made or all indebtedness
incurred in connection with the acquisition is discharged.
	 
	21.3	 	The assets owned by the Company, together with all assets held under hire
purchase, lease or rental agreements which are contained in the Disclosure
Letter, comprise all assets necessary for the continuation of the business
of the Company as it is currently carried on in all material respects.
	 
	22.	 	Charges and Encumbrances over assets
	 
	22.1	 	No Encumbrance (other than a lien arising by operation of law in the
ordinary course of trading) or other form of security or encumbrance or
equity on, over or affecting the Shares or the whole or any part of the
undertaking or assets of the Company, including any investment in any
other company, is outstanding and, apart from this Deed, there is no
agreement or commitment to give or create any of them and no claim has
been made by any person to be entitled to any of them.
	 
	22.2	 	No floating charge created by the Company has crystallised and there are
no circumstances likely to cause such a floating charge to crystallise.
	 
	22.3	 	The Company has not received written notice from any person intimating
that it will enforce any security which it may hold over the assets of the
Company, and there are no circumstances likely to give rise to such a
notice.
	 
	23.	 	Intellectual Property
	 
	23.1	 	Complete and accurate details of all registerable Intellectual Property
and copies of all licences and other agreements relating to it are
contained in the Disclosure Letter.
	 
	23.2	 	All Intellectual Property is either:

	 	(a)	 	in the sole legal and beneficial ownership of the Company
free from all licences, charges or other encumbrances; or
	 
	 	(b)	 	the subject of binding and enforceable licences from third
parties in favour of the Company:

	 	(i)	 	of which no notice to terminate has been
received;
	 
	 	(ii)	 	or, so far as the Warrantors are aware, all
parties to which have fully complied with all obligations in
those licences; and
	 
	 	(iii)	 	in relation to which no disputes have arisen or
are foreseeable by the Warrantors;

	 	 	 	and in either case nothing has been done or omitted to be done
whether by the Company or as far as the Warrantors are aware by any
person which would jeopardise the validity, enforceability or
subsistence of any Intellectual Property or any such licences.

	23.3	 	With regard to Intellectual Property which has been registered or is the
subject of an

49

 

	 	 	application for registration, and is or will when duly registered be
validly registered, binding and enforceable and:

	 	(a)	 	in the case of registrations, all renewal fees have been paid
and renewals made by their due date and all such action necessary to
preserve and maintain the registration has been taken;
	 
	 	(b)	 	in the case of pending applications, the Warrantors are aware
of no reason why any such applications should not proceed to grant;
	 
	 	(c)	 	(in the case of a patent application) the invention which is
the subject matter of such application has not been used or
published except experimentally prior to the date of the UK patent
application and the true and first inventors thereof have no
outstanding rights to compensation pursuant to the Patents Act 1977;
	 
	 	(d)	 	so far as the Warrantors are aware, none of the Intellectual
Property is subject to any claim, application, opposition
proceedings or attack by any other person; and
	 
	 	(e)	 	so far as the Warrantors are aware, none of the Intellectual
Property is subject to any unauthorised use by any other person.

	23.4	 	No licences, registered user or other rights have been granted or agreed
to be granted by the Company to any person in respect of any Intellectual
Property.
	 
	23.5	 	So far as the Warrantors are aware, the Company does not use any
Intellectual Property in respect of which any third party has any right,
title or interest.
	 
	23.6	 	The Intellectual Property that the Company purports to own or to have the
right to use constitutes all the Intellectual Property required in
connection with the conduct of the Company’s business as presently carried
on.
	 
	23.7	 	So far as the Warrantors are aware, at no time during the past 6 years
has there been any unauthorised use or infringement by any person of any
Intellectual Property.
	 
	23.8	 	So far as the Warrantors are aware, none of the processes employed, or
products or services dealt in, by the Company (i) infringes any rights of
any third party relating to intellectual property; or (ii) makes the
Company liable to pay a fee or royalty. No claims have been made or are
pending or so far as the Warrantors are aware, threatened, in relation to
any Intellectual Property against the Company.
	 
	23.9	 	So far as the Warrantors are aware, except in the ordinary course of
business and on a confidential basis, no disclosure has been made of any
of the confidential information, know how, technical processes, financial
or trade secrets or customer or supplier lists of the Company.
	 
	23.10	 	Any names used by the Company other than its corporate name are
contained in the Disclosure Letter and, so far as the Warrantors are
aware, do not infringe the rights of any person.
	 
	23.11	 	The Company does not use any software products, materials or IT Systems
which incorporate, contain or use in any manner (in whole or in part) any Open Source Materials.

50

 

	23.12	 	The Company has not:

	 	(a)	 	incorporated or combined Open Source Materials with the
Intellectual Property; or
	 
	 	(b)	 	distributed or licensed Open Source Materials in conjunction
with any Intellectual Property.

	23.13	 	The IT Systems are either owned by or properly licensed by the Company
and are the subject of valid and appropriate support and maintenance.
	 
	23.14	 	None of the BT Agreements restrict in any way the Company’s ability to
use its rights in respect of its Intellectual Property for its business
purposes consistent with past practices.
	 
	24.	 	Data Protection Act
	 
	24.1	 	The Company has complied in all respects with the provisions of the Data
Protection Act 1984 (as amended, and where such provisions have not been
superseded by the Data Protection Act 1998) and the Data Protection Act
1998 (“DPA”) and the principles contained in the DPA.
	 
	24.2	 	Insofar as personal data are subject to registration or notification:

	 	(a)	 	the Company has at all times maintained full and accurate
registration or notification under the DPA and has operated wholly
within the terms of such registration or notification;
	 
	 	(b)	 	no disclosure has taken place outside the terms of the
Company’s registration or notification.

	24.3	 	The Company has not been served with a notice under sections 10, 11 or 12
of the Data Protection Act 1998.
	 
	24.4	 	The Company has not been served with any information or enforcement
notice under the DPA nor are there any circumstances which might give rise
to the Company being served with such a notice in the future.

Employment

	25.	 	Directors and employees
	 
	25.1	 	Complete and accurate details of the terms and conditions of employment
of all employees of the Company, including the date of commencement of
their continuous period of employment and, so far as the Warrantors are
aware, any arrangements or assurances (whether or not legally binding) in
relation to their employment are Disclosed.

51

 

	25.2	 	Complete and accurate details of the terms of engagement of all
contractors, freelancers, casual workers and other similar persons engaged
by the Company are Disclosed.
	 
	25.3	 	The Company has maintained up-to-date, adequate and suitable records
regarding the service and terms and conditions of employment of each of
its employees.
	 
	25.4	 	The Company has maintained up-to-date adequate and suitable records for
the purposes of the Working Time Regulations and has complied with all
other obligations to its workers (as “workers” is defined in Regulation 2
of the Working Time Regulations) and there are, as far as the Warrantors
are aware, no claims capable of arising or pending or threatened by any
officer or employee or former officer or employee or the Health and Safety
Executive or any local authority Environmental Health Department or any
trade union or employee representative related to the Working Time
Regulations.
	 
	25.5	 	The Company is not a party to any consultancy agreement, any agreement
for management services or any contract for services.
	 
	25.6	 	Since the Accounts Date there has been:

	 	(a)	 	no material alteration in the terms of employment or any
material change in the number of employees employed by the Company;
or
	 
	 	(b)	 	no increase in the fees, remuneration or benefits paid or
payable to the directors or Warrantors, in their capacity as
employees of the Company, nor are any negotiations for any such
increase current or planned by the Company to take place in the next
6 months; or
	 
	 	(c)	 	no increase in any fees, remuneration or benefits paid or
payable to any employee of the Company which, individually or in
aggregate, would be material to the Company, nor are any
negotiations for any such increase current or planned by the Company
to take place in the next 6 months; or
	 
	 	(d)	 	no increase in any fees, remuneration or benefits paid or
payable to any consultants or contractors to the Company, nor are
any negotiations for any such increase current or planned by the
Company to take place in the next 6 months.

	25.7	 	No officer or employee of the Company is remunerated on a profit-sharing,
bonus or commission basis.
	 
	25.8	 	No amount is owing to any present or former officer or employee of the
Company other than reimbursement for reasonable travel expenses incurred
in the ordinary course of the Company’s business.
	 
	25.9	 	Save for the Scheme which has been Disclosed, there is no other share
option or share incentive scheme in operation by or in relation to the
Company for any of its officers or employees nor is the introduction of
such a scheme proposed.

52

 

	25.10	 	The Company has at all relevant times complied with all its obligations
under statute and otherwise concerning the health and safety at work of
its employees and there are no claims capable of arising or (so far as the
Warrantors are aware) pending or threatened by any employee or third party
in respect of any accident or injury which are not covered by insurance.
	 
	25.11	 	Save as provided for or taken into account in the Accounts or the
Management Accounts since incorporation:

	 	(a)	 	no claim or liability to make any payment of any kind to any
person who is or has been an officer or employee has been received
or incurred by the Company whether under the Employment Rights Act
1996, Sex Discrimination Act 1975, the Race Relations Act 1976 and
the Disability Discrimination Act 1995 or otherwise; and
	 
	 	(b)	 	no gratuitous payment of a material amount individually or in
aggregate has been made or promised by the Company in connection
with the actual or proposed termination or suspension of employment
or variation of any contract of employment of any present or former
officer or employee.

	25.12	 	No officer or employee of the Company has given notice or is under
notice of dismissal within the last 3 months nor are there any service
contracts between the Company and its officers or employees which cannot
be terminated by the Company by 12 weeks notice or less without giving
rise to a claim for damages or compensation (other than a statutory
redundancy payment).
	 
	25.13	 	The Company has not, in contravention of the Act:

	 	(a)	 	entered into any arrangement involving the acquisition of
non-cash assets from or disposal to;
	 
	 	(b)	 	granted any loan or quasi-loan to or entered into any
guarantee or credit transaction with; or
	 
	 	(c)	 	provided any security in connection with any loan, quasi-loan
or credit transaction to or with

	 	 	any director or person connected with a director within the meaning of
the Act.
	 
	26.	 	Industrial relations
	 
	26.1	 	The Company is not a party to any contract, agreement or arrangement with
any trade union or other body or organisation representing any of its
employees.
	 
	26.2	 	So far as the Warrantors are aware, the Company has in relation to its
officers and employees and former officers and employees complied with all
conditions of service, customs and practices and, where relevant, all
collective agreements, recognition agreements, workforce agreements and
relevant agreements for the time being.
	 
	26.3	 	Within the last 12 months, the Company has not:

53

 

	 	(a)	 	given notice of any redundancies to the Secretary of State,
started consultations with any appropriate representatives or failed
to comply with any obligation under the provisions of Chapter II
Trade Union and Labour Relations (Consolidation) Act 1992.
	 
	 	(b)	 	been a party to any relevant transfer as defined in the
Transfer of Undertakings (Protection of Employment) Regulations 1981
or has failed to comply with any duty to inform and consult any
appropriate representatives under the Regulations save as Disclosed.

	26.4	 	No dispute has arisen between the Company and a material number or
category of its employees nor are there any present circumstances known to
the Warrantors which are likely to give rise to any such dispute.

	27.	 	Pensions

	27.1	 	Save for the Pension Scheme, or each plan, scheme, agreement,
arrangement, custom or practice disclosed there is not in operation by the
Company and there has not, at any time, been in operation by the Company
(and no proposal has been announced by the Company to enter into or
establish) any plan, scheme, agreement, arrangement, custom or practice
(whether legally enforceable or not or whether or not approved by the
Inland Revenue) for the payment of (or for the payment of any contribution
towards), any pensions, allowances, lump sum or other like benefits
payable on retirement, death, termination of employment or during periods
of sickness or disablement, for the benefit of any of the employees (or
ex-employees) or directors (or ex-directors) of the Company or for the
benefit of the dependants of any such employees or directors of the
Company.

	27.2	 	In relation to the Pension Scheme or each plan, scheme, agreement,
arrangement, custom or practice disclosed:

	 	(a)	 	Full and accurate details:

	 	(i)	 	of it (including, where appropriate, copies of
the current governing documentation, any insurance policy,
booklets and announcements, relevant details of all of the
employees (or ex-employees) or directors (or ex-directors) of
the Company who are members of it and the benefits they are
entitled to under it;
	 
	 	(ii)	 	of the basis on which the Company and the
employees who are members of it make, or are liable to make,
contributions to it; and
	 
	 	(iii)	 	of any arrangements or assurances in respect of
any compensation or payment (including without limitation any
pension payments) to be made to any employee of the Company in
the event of early retirement, redundancy or other
termination of employment however arising (including but not
limited to grounds of ill-health), however funded and whether
or not legally binding)

	 	 	 	are contained in the Disclosure Letter;

54

 

	 	(b)	 	all contributions which are payable by the Company in respect
of it and all contributions due from the employees as members of it
have been duly made in accordance with all applicable laws or
requirements;
	 
	 	(c)	 	it has been administered in all material respects in
accordance with all applicable requirements of the Pension Schemes
Act 1993, the Pensions Act 1995, and in accordance with the trusts,
powers and provisions of such plans, schemes or arrangements and all
other applicable laws, regulations and requirements of any competent
government body or regulatory authority (including the requirements
of Article 141 of the Treaty of Amsterdam);
	 
	 	(d)	 	no undertakings or assurances have been given to any of the
employees of the Company as to the continuance, introduction,
increase or improvement of any rights or entitlements in relation
to pension, death, disability or retirement;
	 
	 	(e)	 	it is an exempt approved scheme (within the meaning of
Chapter I Part XIV of ICTA) or a personal pension plan (within the
meaning of Chapter IV Part XIV of ICTA) and nothing has been done
or omitted to be done which will or may result in the cessation of
such approval under ICTA and/or ITEPA;
	 
	 	(f)	 	all fees, charges and expenses arising from the Pension
Scheme or each plan, scheme, arrangement, custom or practice
disclosed due to be paid by the Company have been paid and where
required are reflected in the Accounts or Management Accounts and
no services have been rendered for which an account or invoice has
not been delivered;
	 
	 	(g)	 	every person who has had a right to join, or apply to join,
it has been properly advised of that right and no employee of the
Company has been excluded from membership of it or from any of the
benefits under it in contravention of Article 141 of the Treaty of
Rome, section 62 Pensions Act 1995, the Part-time Workers
(Prevention of Less Favourable Treatment) Regulations 2000 (SI
1551/2000) or the Fixed Term Employees (Prevention of Less
Favourable Treatment) Regulations 2002 (SI 2002/2034);
	 
	 	(h)	 	all benefits (other than a refund of contributions with
interest where appropriate, spouses’ death in service and ill health
early retirement pensions) payable on the death of a member while in
service, or during a period of sickness or disability of a member,
are fully insured under a policy effected with an insurance company
to which section 659B ICTA applies and all insurance premiums due
have been paid and the Warrantor is not aware of any circumstances
in which such insurance would be invalidated. Each member has been
covered for that insurance at the insurance company’s usual rates
and on its usual terms for persons in good health;
	 
	 	(i)	 	it provides only money purchase benefits as defined in
section 181 Pensions Schemes Act 1993;
	 
	 	(j)	 	there has been no breach of the trusts of the Pension Scheme
or of each plan, scheme, agreement, arrangement, custom or practice
disclosed and no claim or complaint has been threatened or made or
litigation commenced against the

55

 

	 	 	 	Warrantor or the Company (or the trustees, administrators or
principal employer of the Pension Scheme or of each plan, scheme,
agreement, arrangement, custom or practice disclosed or any other
person whom the Warrantor or the Company is liable to indemnify or
compensate) in respect of any matter arising out of or in
connection with the plan, scheme or arrangement and there are no
circumstances which may give rise to any such claim or litigation;
	 
	 	(k)	 	no plan, proposal or intention to amend, discontinue in whole
or in part or exercise any discretion in relation to the Pension
Scheme or each plan, scheme, agreement, arrangement, custom or
practice disclosed has been communicated to any member of it;

	27.3	 	The Company has complied with all of its obligations relating to
stakeholder pension schemes under the Welfare Reform and Pensions Act
1999, the Personal Pension Schemes (Payments by Employers) Regulations
2000 (SI 2000/2692), and the Financial Services and Markets Act 2000.

Properties

	28.	 	Leases/Owned Property
	 
	 	 	The Disclosure Letter contains a list of all leasehold interests in real
estate, easements, rights to access, rights-of-way and other real
property interests which are owned, or are leases, used or held for use
by the Company (collectively, the “Real Property”). The Real Property
listed in the Disclosure Letter constitutes all real property interests
necessary to conduct the business and operations of the Company as now
conducted. So far as the Warrantors are aware, there are no easements or
other real property interests, other than those listed in the Disclosure
Letter, that are required, or that have been asserted by a Governmental
Authority to be required, or that have been asserted by a Governmental
Authority to be required, to conduct the business and operations of the
Company. The Company has made available to the Purchaser true and
complete copies of all leases pertaining to the Real Property (including
any and all amendments and other modifications of such leases). All Real
Property (including the improvements thereon) (i) is in good condition
and repair other than conditions that do not adversely affects its use by
the Company and consistent with its present use, (ii) is available to the
Company for immediate use in the conduct of its business and operations,
and (iii) so far as the Warrantors are aware complies in all material
respects with all applicable building or planning codes and in the
regulations of any Governmental Authority have jurisdiction.
	 
	29.	 	Contamination
	 
	29.1	 	No Property is likely to be entered in any register introduced under the
Environment Act 1995 or otherwise as land which may be contaminated or
which may have been put to a contaminative use.
	 
	29.2	 	There is not on, in or under any of the Properties or any adjoining
property any substance which could give rise to harm to human health or
safety or damage to the
Environment.

56

 

	29.3	 	Each property formerly owned or occupied by the Company was free of such
substances at the time it ceased to be owned or occupied by the Company.

Environment

	30.	 	Other Environmental matters
	 
	30.1	 	The Company is not required to hold any Environmental Consents.

57

 

Schedule 4

(Limitations on liability)

	1.	 	The liability of the Warrantors under the Warranties shall be reduced if
and to the extent that the loss shall have been recovered under clause 8
or the Tax Covenant or pursuant to a claim arising in accordance with the
covenant set out in section 4.1(m) of the Sale Agreement (and vice versa).
	 
	2.	 	The Warrantors shall not be liable for any Warranty Claim if, and to the
extent that, it is Disclosed provided that nothing in the Disclosure
Letter shall limit the Warrantors’ liability under the Tax Covenant or
under the Indemnities.
	 
	3.	 	The Warrantors shall not be liable for a Claim unless:

	 	(a)	 	the Warrantors’ Representative has received written notice
from the Purchaser giving reasonable details of the Claim and, if
practicable, the Purchaser’s estimate of the amount involved:

	 	(i)	 	save with respect to those matters identified in
sub-paragraphs 3(a)(ii) or (iii) or (iv) below, in the case of
a Non-Tax Claim, not later than 31 March 2006; or
	 
	 	(ii)	 	in the case of any Claim arising in relation to
paragraph 23 (Intellectual Property) of Schedule 3, Part 2,
not later than 2 years from Completion; or
	 
	 	(iii)	 	in the case of any Claim arising in relation to
paragraph 1 in Schedule 3, Part 1 (NVP Authority and
Enforceability), and the following paragraphs of Schedule 3,
Part 2, being paragraphs 1.1 (Capacity) and 6.1 (Accuracy and
Adequacy of Information), not later than 3 years from
Completion; or
	 
	 	(iv)	 	in the case of any Claim arising in relation to
the following paragraphs of Schedule 3, Part 2 being
paragraphs 2.9 (Events Since Incorporation), 29
(Contamination) and 30 (Environmental Matters), not later
than 6 years from Completion; or
	 
	 	(v)	 	in the case of any Claim in relation to the Tax
Warranties, six years from end of the accounting period in
which Completion occurs.

	 	(b)	 	save in relation to a contingent matter, in the case of a
Non-Tax Claim a request for arbitration shall have been filed and
served on the Warrantors Representative within 6 months after the
date of notification pursuant to paragraph (a) above;
	 
	 	(c)	 	save as set out in paragraph 4 below, the amount of the
Warranty Claim, when aggregated with all other Warranty Claims made
on the same occasion or

58

 

	 	 	 	previously, is equal to or exceeds £200,000 (in which case the
Warrantors shall be liable for the whole amount of all of the
Warranty Claims and not simply the excess).

	4.	 	The limitation set out in paragraph 3(c) of this Schedule 4 shall not
apply in the case of paragraph of Schedule 3, Part 1 (NVP Authority and
Enforceability), and the following paragraphs of Schedule 3, Part 2 being
paragraphs 1.1 (Capacity), 6.1 (Accuracy and Adequacy of Information), 9
(Management Accounts) and 10 (Events Since the Accounts Date).
	 
	5.	 	Save as set out in paragraphs 6 and 7 of this Schedule 4, the aggregate
liability of the Warrantors in respect of any Non-Tax Claims shall not
exceed 15% of the Consideration, such amount to be calculated as at the
date of Completion by valuing the Purchaser Common Stock at the Purchaser
Common Stock Per Share Value and the Non-Qualified Redeemable Preferred
Stock at Face Value and the Exchange Options in accordance with Clause
5.5.
	 
	6.	 	In the event of a Non-Tax Claim or Non-Tax Claims arising pursuant to
paragraph 23 of Schedule 3, Part 2 (Intellectual Property), the aggregate
liability of the Warrantors shall not exceed $11,100,000.
	 
	7.	 	In the event of a Claim arising under the Tax Warranties or pursuant to a
Non-Tax Claim or Non-Tax Claims arising pursuant to paragraph 1 of
Schedule 3, Part 1 (NVP Authority and Enforceability) and the following
paragraphs of Schedule 3, Part 2 being paragraphs 1.1 (Capacity), 6.1
(Accuracy and Adequacy of Information), 2.9 (Events Since Incorporation),
29 (Contamination) and 30 (Environmental Matters), the aggregate liability
of the Warrantors shall not exceed 80% of the Consideration, such amount
to calculated as at the date of Completion by valuing the Purchaser Common
Stock at the Purchaser Common Stock Per Share Value and the Non-Qualified
Redeemable Preferred Stock at Face Value and the Exchange Options in
accordance with clause 5.5.
	 
	8.	 	The Warrantors shall not be liable for any Claim:

	 	(a)	 	if and to the extent that a liability arises or is increased
as a result of any voluntary act or omission of the Purchaser (or
any persons deriving title from it) or the Company after Completion
done outside the ordinary course of business and other than:

	 	(i)	 	pursuant to a legally binding obligation entered
into by the Company before Completion; or
	 
	 	(ii)	 	in order to comply with any law.

	 	(b)	 	to the extent that the same is specifically provided for in
the Accounts; or, save in respect of a Claim under the Tax Covenant,
in the Management Accounts;
	 
	 	(c)	 	which is a Non-Tax Claim, if and to the extent that the loss
in respect of which the Non-Tax Claim is made is recovered under an
insurance policy of the Company in force on the date of such loss
save to the extent that such recovery
results in an increase in insurance premiums;

59

 

	 	(d)	 	to the extent that the Claim occurs wholly or the amount
thereof is increased as a result of:

	 	(i)	 	any change in the accounting principles or
practices of the Purchaser introduced or having effect after
the date of this Agreement other than a change which is
necessary to comply with generally accepted accounting
principles or practices in the United Kingdom applicable to
the Company or with any relevant legislation; or
	 
	 	(ii)	 	any increase in the rates of taxation made after
the date hereof which was not announced on or before the date
of this Agreement; or
	 
	 	(iii)	 	any change in the accounting reference date of
the Company.

	9.	 	If the Warrantors make any payment to the Purchaser or the Company in
relation to any Non-Tax Claim and the Purchaser or the Company
subsequently receives from a third party any sum referable to, or any
benefit which would not have been received but for the circumstances
giving rise to, the subject matter of that Non-Tax Claim, the Purchaser
shall, once it or the Company has received such sum or benefit,
immediately repay or procure the repayment to the Warrantors of either:

	 	(a)	 	the amount of such receipt (after deducting an amount equal
to the reasonable costs of the Purchaser or the Company incurred in
recovering such receipt and any Taxation payable on it); or if less;
	 
	 	(b)	 	the amount paid by the Warrantors,

	 	 	together with any interest paid to the Purchaser or the Company in
respect of such amount.
	 
	10.	 	Notwithstanding anything to the contrary set out in this Deed, the
aggregate liability of a Warrantor in respect of any Warranty Claim, claim
under the Indemnities and Claim under the Tax Covenant shall not in aggregate
exceed 80% of the Consideration multiplied by the consideration received by
that Warrantor and divided by the aggregate consideration of all Warrantors.

60

 

Schedule 5

Tax Schedule

Part 1 — Definitions and interpretation

	1.	 	Definitions and interpretation
	 
	1.1	 	In this Deed, unless the context otherwise requires, the following words
have the following meanings:
	 
	 	 	“CAA” means Capital Allowances Act 2001.
	 
	 	 	“Claim for Taxation” means any notice, demand, assessment, letter or
other document issued or action taken by any Tax Authority or any person
(including the Company) indicating that any person is or may be placed or
sought to be placed under either a Liability to Taxation or a claim for
Taxation to which paragraph 5 may apply.
	 
	 	 	“ICTA” means the Income and Corporation Taxes Act 1988.
	 
	 	 	“Liability to Taxation” means:

	 	(c)	 	any liability to make a payment of or in respect of Taxation
regardless of whether such Taxation is chargeable or attributable
directly or primarily to the Company or to any other person;
	 
	 	(d)	 	the loss of any Relief which would (were it not for the loss)
have been available to the Company and which has been treated as an
asset in preparing the Accounts or taken into account in computing
(and so reducing) or obviating any provision for deferred taxation
which appears in the Accounts (or which, but for the availability or
presumed availability of such Relief prior to its loss, would have
appeared in the Accounts);
	 
	 	(e)	 	the setting off against any liability to Taxation or against
Profits earned, accrued or received on or before Completion of any
Relief which arises in respect of any period after Completion or in
respect of any Transaction effected on or after Completion in
circumstances where, but for the setting off, the Company would have
had a liability to Taxation in respect of which the Purchaser
(ignoring any limitations on liability contained herein) would have
been able to make a claim against the Warrantors under the Covenant
for Taxation;
	 
	 	(f)	 	any liability to make a payment by way of indemnity or
damages, or any other payment pursuant to a contract or arrangement,
in each case arising out of or in connection with Taxation;

61

 

	 	(g)	 	and references to a Liability to Taxation shall include the
settlement of a Claim for Taxation.

	 	 	“Profits” means income, profits and gains, the value of any supply and
any other consideration, value or receipt used or charged for Taxation
purposes and references to “Profits earned, accrued or received” include
Profits deemed to have been earned, accrued or received for Taxation
purposes.
	 
	 	 	“Purchaser’s Relief” means a Relief falling within the definition of
Liability to Taxation.
	 
	 	 	“Relevant Claim or Surrender” means any claim or surrender to or by the
Company of:

	 	(h)	 	group relief under Chapter IV, Part X, ICTA.
	 
	 	(i)	 	advance corporation tax under Section 240, ICTA. or
	 
	 	(j)	 	a tax refund under Section 102, Finance Act 1989
	 
	 	(k)	 	or any group payment arrangement made pursuant to Section 36,
Finance Act 1998.

	 	 	“Relief” means any relief, loss, allowance, exemption, set-off, deduction
or credit in computing or against Profits or Taxation or any right to
repayment of Taxation and references to the “loss of any Relief” include
the loss, reduction, counteraction, disallowance, setting-off against
Profits, crediting against a liability to make an actual payment of
Taxation or failure to obtain a Relief and “lose” and “lost” shall be
construed accordingly.
	 
	 	 	“Taxation” means all forms of taxation and statutory, governmental, supra
governmental, state, provincial, local governmental or municipal
impositions, duties, contributions and levies (including withholdings and
deductions), whether of the United Kingdom or elsewhere in the world,
whenever imposed and however arising and all penalties, fines, charges,
costs and interest, together with the cost of removing any charge or
other encumbrance, relating thereto and “Tax” shall be construed
accordingly provided that references to Taxation shall not extend to
stamp duty or penalties or interest in respect thereof.
	 
	 	 	“Tax Authority” means any taxing or other authority, body or official
competent to administer, impose or collect any Taxation.
	 
	 	 	“Tax Claim” means a claim by the Purchaser against the Warrantors under
the Covenant for Taxation or that any of the Taxation Warranties is
untrue or inaccurate in any respect or is misleading or, as the case may
be, a claim by the Warrantors against the Purchaser under the covenant in
paragraph 5.
	 
	 	 	“TCGA” means the Taxation of Chargeable Gains Act 1992.
	 
	 	 	“TMA” means the Taxes Management Act 1970.

62

 

	 	 	“Transaction” means any transaction, deed, act, event, omission, payment
or receipt of whatever nature and whether actual or deemed for Tax
purposes and references to “any Transaction effected on or before
Completion” include the combined result of two or more Transactions, the
first or any one of which shall have taken place or commenced (or be
deemed to have taken place or commenced) on or before Completion.
	 
	 	 	“VATA” means the Value Added Tax Act 1994.
	 
	 	 	“Warrantor Associate” means any Warrantor or the Company and any other
person with whom the Warrantors or the Company is either associated
(within the meaning of section 417 ICTA) or connected (within the meaning
of Section 839 ICTA).
	 
	1.2	 	In this Schedule:

	 	(l)	 	a reference to a jurisdiction shall include any union,
country, state, province, district or division of whatever nature
which imposes or raises Taxation;
	 
	 	(m)	 	a reference to any law shall include any statute, law,
regulation, notice, directive or similar provision relating to
Taxation, whether of the United Kingdom or elsewhere;
	 
	 	(n)	 	references to specific parts of the law of the United Kingdom
shall be taken to include a reference to the law of any other
jurisdiction so far as the same may apply to the Company and may be
similar to or have a similar purpose to the law of the United
Kingdom to which reference is made; and
	 
	 	(o)	 	references to the VATA shall include all law relating to
value added tax in the United Kingdom and any value added, turnover,
sales, purchase or similar tax of any other jurisdiction and
references to value added tax shall be construed accordingly.

63

 

Part 2 — Tax Warranties and Undertakings

	2.	 	Tax Warranties
	 
	 	 	Events since the Accounts Date
	 
	2.1	 	Since the Accounts Date:

	 	(a)	 	no transaction has occurred, either in circumstances where
the consideration actually received or receivable (if any) was less
than the consideration which could be deemed to have been received
for Tax purposes or which will give rise to a Liability to Taxation
on the Company calculated by reference to deemed as opposed to
actual Profits;
	 
	 	(b)	 	no transaction has occurred which will result in the Company
becoming liable to pay or bear a Liability to Taxation directly or
primarily chargeable against or attributable to another person;
	 
	 	(c)	 	no disposal has taken place or other event occurred which
will, or may have, the effect of crystallising a Liability to
Taxation which would have been included in the provision for
deferred taxation contained in the Accounts if such disposal or
other event had been planned or predicted at the Accounts Date;
	 
	 	(d)	 	the Company has not been a party to any transaction for which
any Tax clearance provided for by statute has been, or could have
been, obtained; and
	 
	 	(e)	 	no accounting period or period of account by reference to
which Taxation is measured of the Company has ended within the
meaning of Section 12, ICTA (basis of, and periods for, assessment).

	 	 	Records and compliance
	 
	2.2	 	The Company has duly complied with all requirements imposed on it by law
and in particular:

	 	(f)	 	the Company has paid all Taxation for which it is liable and
made all withholdings and deductions in respect, or on account, of
any Taxation from any payments made by it which it is obliged or
entitled to make and has paid to the appropriate Tax Authority all
amounts so withheld or deducted;
	 
	 	(g)	 	the Company will not be liable to pay any Tax the due date
for payment of which will arise in the 30 days following Completion;
	 
	 	(h)	 	the Company has properly prepared and punctually submitted
all notices, returns and applications for clearances or consents
required for Tax purposes and provided complete and accurate
information to any Tax Authority and all such notices, returns,
applications and information remain complete and accurate and in
compiling the same the Company has not taken the benefit of any
doubt, such that the relevant Tax Authority may discover information
of

64

 

	 	 	 	which it was not reasonably aware and thereby make an enquiry into
or dispute the Tax affairs of the Company;
	 
	 	(i)	 	the Company has kept and maintained complete and accurate
records, invoices and other documents and information of whatever
nature appropriate or requisite for Tax purposes and has sufficient
such records, invoices and other documents and information relating
to past events to calculate its liability to Taxation or the relief
from Taxation which would arise on any disposal or on the
realisation of any assets owned at Completion;
	 
	 	(j)	 	there are no disputes, unsettled or outstanding assessments
or appeals in respect of Taxation and the Company has not since
incorporation been subject to any enquiry, investigation or other
dispute with any Tax Authority and there are no circumstances which
may give rise to such an enquiry or dispute;
	 
	 	(k)	 	the Company has not since incorporation been liable or will
in respect of any Transaction occurring on or before Completion
become liable to pay any interest, penalty, fine or sum of a similar
nature in respect of Taxation nor, in relation to value added tax,
has received any penalty liability notice, surcharge liability
notice or other written notice or warning under the VATA; and
	 
	 	(l)	 	the Company has duly submitted all claims and elections which
have been assumed to have been made for the purposes of the
Accounts.

	2.3	 	The Company has at all times been resident for Tax purposes in the United
Kingdom and the Company has not during the past six years paid and is not
liable to pay Tax in any other jurisdiction.
	 
	2.4	 	The Company has not since incorporation received any audit, visit or
inspection from any Tax Authority and no such audit, visit or inspection
to take place on or after Completion has been arranged or requested.
	 
	2.5	 	The amount of Tax chargeable on the Company or subject to withholding or
deduction by the Company during any accounting period ending since
incorporation has not to any material extent depended on any concession,
agreement, dispensation or other formal or informal arrangement with any
Tax Authority.
	 
	2.6	 	The Company is not liable to be assessed to Tax as agent for, or on
account of, or otherwise on behalf of, any other person.
	 
	2.7	 	The Company has not made any claim or application to pay any Tax by
instalments or to defer the payment of any Tax.
	 
	2.8	 	The Company is not liable to pay corporation tax by instalments pursuant
to Section 59E, TMA, or any regulations made thereunder.
	 
	 	 	Employee shares
	 
	2.9	 	No shares or securities have been issued by the Company, and no options
have been granted or issued in respect of such shares or securities, such
that the Company will or

65

 

	 	 	may be liable to account for income
tax under the PAYE system or to
collect or pay any national insurance
contributions.
	 
	 	 	VAT
	 
	2.10	 	The Company:

	 	(m)	 	is registered for the purpose of, and has complied in all
respects with, the VATA and is not subject to any conditions imposed
or agreed with any Tax Authority; and
	 
	 	(n)	 	is not, and has not within the last three years been a member
of a group for value added tax purposes under Section 43, VATA
(groups of companies).

	2.11	 	The Company is not subject to The Value Added Tax (Payments on Account)
Order 1993.
	 
	2.12	 	All supplies made by the Company are taxable supplies, and all input tax
for which the Company has claimed credit has been paid by the Company, in
respect of supplies made to it relating to goods or services used or to be
used for the purpose of the business of the Company.
	 
	2.13	 	The Company has not been required to give security under paragraph 4,
Schedule 11, VATA (power to require security and production of evidence).
	 
	2.14	 	The Company has not made, nor will prior to Completion make, any election
to waive exemption under paragraph 2, Schedule 10, VATA (election to waive
exemption).
	 
	2.15	 	The Disclosure Letter contains full details of all assets owned by the
Company to which the provisions of Part XV, Value Added Tax Regulations
1995 (the Capital Goods Scheme) may apply, including the date of
acquisition, the cost of the asset, the amount of the input tax for which
credit has been claimed and the adjustment period relating to that asset.
	 
	2.16	 	The Company has not claimed credit for any input tax where the whole or
any part of the consideration for the relevant supply remains outstanding
for more than 6 months after the date of the invoice.
	 
	 	 	Customs duties
	 
	2.17	 	The Company has made all necessary returns in relation to the collection
and payment of customs duties, excise duties and other Taxes having an
equivalent effect and has provided to any relevant Tax Authority all
necessary information, returns and documentation and paid all amounts due
in relation to the same and within the prescribed time limits.
	 
	2.18	 	Details of all bonds, recognisance and guarantees given to any relevant
Tax Authority, or of any duty deferment scheme or arrangement taken or
claimed, by or in relation to the Company are set out in the Disclosure
Letter.

66

 

	 	 	Balance sheet values
	 
	2.19	 	No Liability to Taxation will arise or be incurred on a disposal by the
Company of any of its assets for:

	 	(o)	 	in the case of each asset owned at the Accounts Date, a
consideration equal to the value attributed to that asset in
preparing the Accounts; and
	 
	 	(p)	 	in the case of each asset acquired since the Accounts Date, a
consideration equal to the consideration given for the acquisition.

	2.20	 	The Company has not at any time in respect of any asset owned at the date
hereof made, nor will prior to Completion make, any claim under Sections
152 to 158 (inclusive), TCGA (replacement of business assets) and there is
no proposal or plan to make any such claim either in the claims and
elections assumed to have been made for the purposes of the Accounts or
otherwise.
	 
	 	 	Close company
	 
	2.21	 	The Company is not, nor has it at any time since incorporation been,
either a close company within the meaning of Section 414, ICTA (close
companies) or a close investment holding company for the purposes of
Section 13A, ICTA (close investment-holding companies).
	 
	2.22	 	The Company has not at any time made any loan or advance or payment or
given any consideration or effected any transaction falling within
Sections 419 to 422 (inclusive), ICTA (loans to participators etc).
	 
	 	 	Group transactions
	 
	2.23	 	Since incorporation the Company has not:

	 	(a)	 	been a member of a group of companies within the meaning of
Section 170 TCGA (groups of companies);
	 
	 	(b)	 	acquired any asset from any other company which was at the
time of acquisition a member of the same group of companies as that
of which the Company was also a member; or
	 
	 	(c)	 	entered into any group payment arrangements in respect of
corporation tax pursuant to Section 36, Finance Act 1998
(arrangements with respect to the payment of corporation tax).

	2.24	 	No Liability to Taxation will be suffered by the Company in consequence
of Completion or otherwise by virtue either of this Agreement or of the
Company ceasing to be a member of a group of companies with any other
company.
	 
	2.25	 	The Disclosure Letter gives full details of all Relevant Claims and
Surrenders in respect of each accounting period of the Company ending
since incorporation and there are no other arrangements or agreements made
by the Company in respect
thereof.

67

 

	2.26	 	There are no circumstances by virtue of which Sections 410 or 413, ICTA
(arrangements for transfer of company to another group or consortium)
would prevent the Company being treated as a member of the same group of
companies within Chapter IV, Part X, ICTA (special provisions) for any
accounting period commencing on or before the date of this Agreement or
Completion.
	 
	2.27	 	The Company has not claimed relief from stamp duty under section 42
Finance Act 1930 or section 76 Finance Act 1986 which is liable to be or
could in any circumstances be withdrawn at any time on or after
Completion.
	 
	2.28	 	The Company has not made, nor is proposing to make an election under any
law whereby a Liability to Taxation that arises primarily upon another
person, or by reference to Profits which are not earned, accrued or
received by the Company, may fall upon the Company.
	 
	 	 	Deductible expenses
	 
	2.29	 	The Company has not since the Accounts Date made or provided and is not
under any obligation currently or for the future to make any payment of an
income or revenue nature which, or to provide a benefit the cost of which,
will be prevented from being deductible for Tax purposes, whether as a
deduction in computing the profits of a trade or as an expense of
management or as a charge on income.
	 
	2.30	 	The accounting treatment adopted by the Company in its accounts in
relation to any loan relationship as defined in Section 81, Finance Act
1996 (meaning of “loan relationships” etc.) will be treated as an
authorised accounting method for the purposes of Section 85, Finance Act
1996 (authorised accounting methods).
	 
	2.31	 	The Company has not been a party to a loan relationship treated as being
for an unallowable purpose within the meaning of Paragraph 13 Schedule 9,
Finance Act 1996 (loan relationships for unallowable purposes).
	 
	 	 	Dividends and distributions
	 
	2.32	 	The Company has not at any time purchased, repaid or redeemed or agreed
to purchase, repay or redeem its share capital, or capitalised or agreed
to capitalise in the form of redeemable shares or debentures any profits
or reserves, or otherwise issued any share capital or other security as
paid up otherwise than by the receipt of new consideration within the
meaning of Section 254, ICTA (interpretation of Part VI).
	 
	2.33	 	The Company has not at any time been a party to or otherwise involved in
any transaction to which Sections 213 to 218 (inclusive), ICTA (exempt
distributions etc.) applied.
	 
	 	 	Inheritance tax and gifts
	 
	2.34	 	No circumstances exist under which any power within Section 212,
Inheritance Tax Act 1984 (powers to raise tax) could be exercised in
relation to, and there is no Inland

68

 

	 	 	Revenue charge (within the meaning of Section 237, Inheritance Tax Act
1984 (imposition of charge)) attaching to, or which may attach to any
shares or securities in or over any assets of the Company.
	 
	2.35	 	The Company is not liable and there are no circumstances in existence as
a result of which it may become liable to be assessed to Tax as donor or
donee of any gift or transfer or transferee of value.
	 
	 	 	Anti-avoidance
	 
	2.36	 	The Company has not:

	 	(a)	 	entered into, or been party to, any scheme or arrangement
designed for the purpose of avoiding Taxation, such that a Liability
to Taxation may arise after Completion as a result of or in
consequence of such a scheme or arrangement; or
	 
	 	(b)	 	acquired or disposed of any asset, or entered into any
Transaction whatsoever, otherwise than by way of a bargain at arms
length.

	2.37	 	The Company has complied in all respects with the requirements of
Schedule 28AA,ICTA (provision not at arms length) and any law made
pursuant or with respect thereto. The Company has not entered into or
applied for an agreement with the Inland Revenue pursuant to Section 85,
Finance Act 1999 (advance pricing agreements).
	 
	 	 	Losses and ACT
	 
	2.38	 	In the past three years prior to Completion there has been no major
change in the nature or conduct of the trade of business carried on by the
Company for the purposes of Section 245 (calculation etc. of ACT on change
of ownership of company), Section 768 (change of ownership of company:
disallowance of trading losses) Section 768A (change in ownership
disallowance of carry back trading losses) or Section 768B, ICTA (change
in ownership of investment company: deduction generally).

Liability for tax primarily due from another person

	2.39	 	No Transaction has occurred in consequence of which the Company has or
may incur a Liability to Taxation primarily chargeable against some other
person (whether by reason of another company being or having been a member
of the same group of companies or otherwise).

Capital Allowances

	2.40	 	All expenditure which the Company has incurred or may incur under any
subsisting commitment on the provision of machinery or plant or industrial
buildings (in each case within the meaning of the CAA) has qualified or
will qualify (if not deductible as a trading expense of a trade carried on
by the Company) for writing-down allowances under the CAA.
	 
	2.41	 	The value attributed in the Accounts to each asset or pool of assets is
such that on a

69

 

	 	 	disposal of each such asset or pool of assets on the Accounts Date for a
consideration equal to such value or aggregate value no balancing charge
would have arisen under any law relating to capital allowances.

	2.42	 	All capital expenditure incurred by the Company on the provision of
machinery or plant or industrial buildings (in each case within the
meaning of the CAA) since the Accounts Date and all such capital
expenditure which may be incurred by the Company under any existing
contract has qualified or will be capable of qualifying for capital
allowances. Such allowances have been or will be made in taxing the trade
of the Company.

	2.43	 	Since the Accounts Date the Company has not done or omitted to do or
agreed to do or permitted to be done any act as a result of which the
Company could be required to bring a disposal value into account or suffer
a balancing charge or be subject to recovery of excess relief or a
withdrawal of allowances for the purpose of the CAA.

Breach of Covenant for Taxation

	2.44	 	So far as the Warrantors are aware, there are no facts or circumstances
in existence at the date of this Agreement such that a claim will or may
arise to the Purchaser under the Covenant for Taxation on or after
Completion.
	 
	3.	 	Stamp duty
	 
	3.1	 	The Warrantors severally covenant and undertake to the Purchaser that:

	 	(a)	 	all documents which are required to be stamped or in respect
of which any form of Taxation is due and which are in the possession
of the Company, or by virtue of which the Company has any right,
have been duly and sufficiently stamped or the Taxation on such
documents has been paid, and
	 
	 	(b)	 	no such document has been executed and retained outside the
United Kingdom in circumstances in which a liability to stamp duty
or Taxation would arise if such document were to be brought into the
United Kingdom.

	3.2	 	The covenant and undertaking given pursuant to this paragraph 3 is
separate and distinct from the Warranties and the Covenant for Taxation
and, in the event of any breach of such covenant and undertaking, the
Purchaser shall be entitled to procure that the relevant document is
stamped, or the Taxation paid, together with any interest, penalty, fine
or similar charge in respect thereof, and the Purchaser shall be entitled
to claim the liability, costs and other expenses thereby incurred from the
Warrantors by way of liquidated damages for breach of the covenant and
undertaking.
	 
	3.3	 	There has been no transaction under which a liability to Stamp Duty Land
Tax has or may be incurred.

70

 

Part 3 — Covenants to and from the Purchaser

	4.	 	Covenant for Taxation

	4.1	 	The Warrantors severally shall pay to the Purchaser an amount equal to
any Liability to Taxation of the Company:

	 	(a)	 	arising directly or indirectly from any Transaction effected
on or before Completion;
	 
	 	(b)	 	in respect of, or by reference to, any Profits earned,
accrued or received on or before Completion;
	 
	 	(c)	 	which would not have arisen but for the failure by any person
who is or has been a Vendor Associate to discharge a Liability to
Taxation which falls upon such Vendor Associate:

	 	(i)	 	arising directly or indirectly from any
Transaction effected or deemed to have been effected at any
time by such Vendor Associate; or
	 
	 	(ii)	 	in respect of any Profits earned, accrued or
received at any time by such Vendor Associate,

	 	 	 	and none of the limitations on liability or other exclusions
provided for by paragraph 6 below or any other provision of this
Agreement shall apply to this sub-paragraph;
	 
	 	(d)	 	which arises on or with respect to any income, emoluments or
other payment or sum (whether in cash or in kind) paid or payable at
any time, benefits given or to be given at any time or loans or
advances made or to be made at any time (or which are deemed for tax
purposes to be made) to the Warrantors or any Vendor Associate;
	 
	 	(e)	 	in respect of the liability of the Company:

	 	(i)	 	to repay in whole or part any payment for any
Relevant Claim or Surrender in respect of any period
commencing prior to Completion; or
	 
	 	(ii)	 	to make a payment for any Relevant Claim or
Surrender to any Vendor Associate in respect of any period
commencing prior to Completion;

	 	(f)	 	arising in respect of the failure of the Company to receive
any payment for any Relevant Claim or Surrender (other than from any
other Group Company) shown as an asset in the Accounts; or
	 
	 	(g)	 	which arises as a result of a challenge by a Tax Authority to
the level of amortisation of goodwill or intellectual properties
held by the Company or to the rate of interest applicable to the
Loan Agreement.

	 	 	together with all costs and expenses reasonably and properly incurred by
the Purchaser

71

 

	 	 	or the Company in connection with any such Liability to Taxation or Claim
for Taxation or in bringing any claim or defending any action under the
provisions of this Schedule.

	4.2	 	Where the Warrantors become liable to make any payment under the Covenant
for Taxation, the due date for the making of that payment shall be:

	 	(h)	 	in a case that involves an actual payment of Taxation by the
Company, the date that is the last date on which the Company is
liable to pay to the appropriate Tax Authority the Taxation in
question in order to avoid incurring a liability to interest or
penalties or, if later, five days following a written demand from
the Purchaser;
	 
	 	(i)	 	in the case of the loss of any Relief, the date falling five
days following the date when the Warrantors have been notified by
the Purchaser that the auditors for the time being of the Company
have certified, at the request of the Purchaser, that the Warrantors
have a liability for a determinable amount in respect of the loss of
such Relief under the Covenant for Taxation; or
	 
	 	(j)	 	in any other case, the date falling five days following the
date on which the Warrantors receive a written demand for such
amount from the Purchaser.

	4.3	 	In a case of a loss of any Relief, the amount that is to be treated under
the Covenant for Taxation as a Liability to Taxation shall:

	 	(a)	 	be the amount of that Relief, if the Relief that was the
subject of the loss was either a deduction from or offset against
Taxation or a right to a repayment of Taxation;
	 
	 	(b)	 	be the amount of Taxation which has been saved in consequence
of the setting off where the Relief that was the subject of the loss
was a deduction from or offset against gross Profits, and the Relief
was the subject of a setting off; and
	 
	 	(c)	 	in any other case where the Relief that was the subject of
the loss was a deduction from or offset against gross Profits, be
the amount of Taxation which would, on the basis of the rates of
Taxation current at the date of the loss, have been saved but for
the loss.

	4.4	 	If, in respect of or in connection with any Claim, or otherwise in
connection with any payment made hereunder, any amount payable to the
Purchaser by the Warrantors is subject to Taxation (ignoring the
availability of any Relief), the amount to be paid to the Purchaser by the
Warrantors shall be increased by such additional amount as will ensure
that the net amount received by the Purchaser after such Taxation has been
taken into account is equal to the full amount which would be payable to
the Purchaser had the amount not been subject to Taxation and the
Purchaser shall be entitled to claim any additional amount due hereunder
at any time and on any number of occasions at or after the time that the
initial Claim is made or is payable and any limitation as to time or
quantum contained in this Agreement shall not apply to the claim for any
such additional amount.

72

 

	5.	 	Covenant to Warrantors
	 
	5.1	 	The Purchaser hereby covenants with the Warrantors to pay to the
Warrantors an amount equal to any Taxation which is assessed on the
Warrantors or on any Vendor Associate pursuant to either section 767A or
section 767AA, ICTA by reason of Taxation assessed on or primarily or
directly attributable to the Purchaser, any member of the Purchaser’s
group or the Company for any accounting period remaining unpaid provided
that this covenant shall not apply to any Taxation in respect of which the
Purchaser is entitled to bring a Tax Claim against the Warrantors or would
have been so entitled but for paragraphs 6 (Limitations), 7 (Repayment)
and 8 (Over-provision and Reliefs) below or schedule 4 of this Deed
(Limitations).
	 
	5.2	 	The Warrantors hereby covenant that it shall make no claim under
paragraph 5.1 above to the extent that it has recovered the Taxation in
question under section 767B(2), ICTA and that to the extent that it
recovers any amount under paragraph 5.1 it shall not seek to recover
payment under section 767B(2).
	 
	5.3	 	The provisions of paragraphs 4.2 (date of payment), 4.4 (grossing up), 7
(Repayment) and 9 (Claims Procedure) shall apply to this covenant as if
references to the “Purchaser” were to the “Warrantors” (and vice versa),
references to the “the Company” were also to the “Warrantors” and
references to “Covenant for Taxation” were to the “covenant under
paragraph 5”.

73

 

Part 4 — Limitations and general

	6.	 	Limitations on liability
	 
	6.1	 	The liability of the Warrantors under the Covenant for Taxation shall be
reduced if and to the extent that the Liability to Taxation shall have
been recovered under the Warranties or under any other part of the
Covenant for Taxation (and vice versa).
	 
	6.2	 	The Warrantors shall not be liable to the Purchaser for a Tax Claim in
respect of any Liability to Taxation:

	 	(a)	 	to the extent that provision or reserve in respect of that
Liability to Taxation was included in the Accounts;
	 
	 	(b)	 	to the extent that the Liability to Taxation arises or is
increased as a result only of:

	 	(i)	 	any increase in rates of Taxation;
	 
	 	(ii)	 	any change in law or in the published practice
thereof;
	 
	 	(iii)	 	any change in the bases upon which the Accounts
of the Company are prepared or any change in accounting
practice or principles except in either case in order to
comply with generally accepted accounting principles; or
	 
	 	(iv)	 	any change in the date to which the Company makes
up its Accounts,

	 	 	 	made in any such case after Completion with retrospective effect.

	6.3	 	The Warrantors shall not be liable to the Purchaser under the Covenant
for Taxation in respect of a Liability to Taxation:

	 	(a)	 	to the extent that such Liability to Taxation is:

	 	(i)	 	upon income, profits or gains which were actually
earned, accrued or received by the Company; or
	 
	 	(ii)	 	upon any Transaction carried out by the Company,

	 	 	 	in each case since the Accounts Date in the ordinary and normal
course of the business of the Company provided that any failure to
comply with any requirement imposed on it by law shall not for the
purposes of this paragraph be within the ordinary and normal course
of the business of the Company;
	 
	 	(b)	 	to the extent that there is available to the Company to
relieve or mitigate such Liability to Taxation any Relief which is
not a Purchaser’s Relief;
	 
	 	(c)	 	to the extent that such Liability to Taxation would not have
arisen but for a voluntary act or omission carried out or effected
by the Company at any time
after Completion, other than any act or omission carried out or
effected:

74

 

	 	(i)	 	under a legally binding commitment created on or
before Completion;
	 
	 	(ii)	 	in order to comply with any law or in order to
comply with generally accepted accounting principles;
	 
	 	(iii)	 	in the ordinary and normal course of the
business carried on by the Company; or
	 
	 	(iv)	 	at the request of or with the consent of any of
the Warrantors;

	 	(d)	 	to the extent that such Liability to Taxation can be properly
and fully discharged out of monies deducted for the purpose from
sums payable or paid by the Company;
	 
	 	(e)	 	to the extent that such Liability to Taxation would not have
arisen or would have been reduced but for a failure or omission on
the part of the Group Company concerned after Completion to make any
claim or election, the making or claiming of which was taken into
account in computing the provision or reserve for Taxation in the
Accounts but only to the extent that the relevant claim or election
was identified in a disclosure specifically made against the Tax
Warranty in paragraph 2 of this schedule.

	6.4	 	None of the limitations on liability or other exclusions provided for by
this paragraph 6 or any other provision of this Agreement shall apply
where the Company, or any director thereof, is guilty of fraudulent
conduct in relation to the Liability to Taxation concerned, or where the
facts or circumstances giving rise to such Liability to Taxation
constituted a breach of any of the Warranties contained in this Agreement
and the Warrantors (or any of them) knowing of the same to be in breach
failed to make full and fair disclosure thereof in the Disclosure Letter.
	 
	7.	 	Repayment
	 
	 	 	If the Warrantors shall make any payment to the Purchaser in relation to
any Tax Claim and the Purchaser or the Company subsequently receives from
any Tax Authority or any person any amount referable to the subject
matter of that Tax Claim, the Purchaser shall, once it or the Company has
received such amount, repay (after deducting the costs and expenses of
the Purchaser incurred in recovering such amount and any Taxation payable
on it or on any interest) to the Warrantors’ Representative for
distribution to the Warrantors either:

	 	(a)	 	a sum equal to such amount; or
	 
	 	(b)	 	if lesser a sum equal to the Tax Claim paid by the Warrantors to the
Purchaser,

	 	 	together with any interest paid to the Purchaser or the Company in
respect of such sum.

75

 

	8.	 	Over-provision and Reliefs

	8.1	 	If the auditors for the time being of the Company shall certify (at the
request and expense of the Warrantors) that any provision for Taxation in
the Accounts (excluding any provision for deferred taxation) has proved to
be an over-provision, then the amount of such over-provision shall be
dealt with in accordance with paragraph 8.3 below.
	 
	8.2	 	If the auditors for the time being of the Company shall certify (at the
request and expense of the Warrantors) that any Liability to Taxation
which has resulted in a payment having been made or becoming due from the
Warrantors under the Covenant for Taxation will give rise to a Relief for
the Company (other than a Purchaser’s Relief) which would not otherwise
have arisen, then as and when such Relief reduces a liability to make an
actual payment of Tax (other than a liability for which the Purchaser
would be entitled to bring a Tax Claim), the amount of that reduction
shall be dealt with in accordance with paragraph 8.3 below.
	 
	8.3	 	Where it is provided under paragraphs 8.1 or 8.2 that any amount (the
“relevant amount”) is to be dealt with in accordance with this sub-clause:

	 	(a)	 	the relevant amount shall first be set-off against any
payment then due from the Warrantors under the Covenant for
Taxation;
	 
	 	(b)	 	to the extent that there is an excess, a refund shall be made
to the Warrantors of any previous payment made by the Warrantors
under the Covenant for Taxation (to the extent not previously
refunded under this paragraph 8) up to the amount of such excess;
and
	 
	 	(c)	 	to the extent that the excess referred to in paragraph 8.3(b)
above is not exhausted under that paragraph, the remainder of the
excess shall be carried forward and set off against any future
payment or payments which become due from the Warrantors under the
Covenant for Taxation.

	8.4	 	Where any certification referred to in paragraphs 8.1 or 8.2 has been
made, the Warrantors or the Purchaser or the Company may request the
auditors to review such certification in the light of all relevant
circumstances, including any facts which have become known only since such
certification, and to certify whether such certification remains correct
or whether the certified amount should be amended.
	 
	8.5	 	If the auditors certify under paragraph 8.4 that an amount previously
certified should be amended, that amended amount shall be substituted for
the purposes of paragraph 8.3 as the relevant amount in respect of the
certification in question in place of the amount originally certified, and
such adjusting payment (if any) as may be required shall be made as soon
as practicable by the Warrantors or (as the case may be) to the Warrantors
to give effect to the revised certification.
	 
	9.	 	Claims Procedure
	 
	9.1	 	Upon the Purchaser or the Company becoming aware of a Claim for Taxation
which may result in a Tax Claim the Purchaser shall:

	 	(a)	 	as soon as reasonably practicable (but not as a condition
precedent to the

76

 

	 	 	 	making of a Tax Claim) give written notice of that Claim for
Taxation to the Warrantors’ Representative or, as the case may be,
shall procure that the Company forthwith give written notice of
that Claim for Taxation to the Warrantors’ Representative,
	 
	 	(b)	 	subject always to the terms of this paragraph 9 and the
Warrantors agreeing to indemnify and secure the Purchaser and/or the
Company to its reasonable satisfaction against all losses, costs,
damages and expenses, including interest on overdue Tax, which may
be incurred, further procure that the Company take such action and
give such information and assistance in connection with the affairs
of the Company as the Warrantors’ Representative may reasonably and
promptly by written notice request to avoid, resist, appeal or
compromise the Claim for Taxation; and
	 
	 	(c)	 	procure that the Warrantors’ Representative is promptly
provided with copies of any correspondence with the Tax Authority.

	9.2	 	The Purchaser shall not be obliged to procure that the Company appeals
against any tax assessment if, the Warrantors’ Representative having been
given written notice of the receipt of that Claim for Taxation in
accordance with paragraph 9.1 above, the Company has not within 21 days
(or, if there is a statutory time limit of not more than 30 days, within
14 days) thereafter received instructions in writing from the Warrantors’
Representative, in accordance with the preceding provisions of this
paragraph 9, to make that appeal.
	 
	9.3	 	The Purchaser shall not be obliged to procure that the Company take any
action under paragraph 9.1 above which involves contesting any matter with
any Tax Authority (excluding the authority or body demanding the Tax in
question) or any court or tribunal unless the Warrantors’ Representative
furnishes the Company with the written opinion of leading tax counsel to
the effect that the appeal in question will, on the balance of
probabilities, succeed. Such tax counsel shall be instructed by the
Warrantors and at the Warrantors’ expense but the Warrantors’
Representative shall promptly provide the Purchaser with a copy of such
instructions and give the Purchaser or its representative a reasonable
opportunity to attend any conference with Counsel.
	 
	9.4	 	The Purchaser shall not be required to take any action or procure that
the Company take any action under this paragraph 9 if it reasonably
determines that such action would have an adverse effect on the amount of
tax payable by the Purchaser or the Company in respect of a period after
Completion.
	 
	10.	 	Tax Returns:
	 
	10.1	 	The Warrantors or their duly authorised agent shall at the Warrantors’
sole expense prepare the corporation tax returns of the Company for the
accounting period ended on the Accounts Date to the extent that they have
not been prepared prior to Completion.
	 
	10.2	 	The Purchaser shall procure that the Company shall cause the tax returns
mentioned in paragraph 10.1 above to be authorised, signed and submitted
to the relevant Tax Authority without amendment or with such amendments as
the Warrantors’

77

 

	 	 	Representative shall reasonably agree provided that the Purchaser shall
not be obliged to procure that the Company takes any such action as is
mentioned in this paragraph 10 in relation to any tax return that is not
true and accurate in all material respects.
	 
	10.3	 	The Warrantors or their duly authorised agent shall at the Warrantors’
sole expense prepare all documentation and deal with all matters
(including correspondence) relating to the tax returns of the Company for
all accounting periods ended on or prior to the Accounts Date and the
Warrantors’ Representative shall provide the Purchaser with copies of any
correspondence relating to such tax returns prior to their submission and
copies of any correspondence from the Inland Revenue. The Warrantors’
Representative shall give the Purchaser a reasonable opportunity to
comment on such correspondence prior to submission and shall take account
of the Purchaser’s reasonable comments. The Purchaser shall upon
reasonable notice (having regard to the circumstances) being given by the
Warrantors’ Representative procure that the Company shall afford such
access to its books, accounts and records and personnel as is necessary
and reasonable to enable the Warrantors or their duly authorised agent to
prepare those tax returns and conduct matters relating thereto in
accordance with the Warrantors’ rights under this paragraph 10.
	 
	10.4	 	The provisions of paragraph 10.3 shall be without prejudice to the rights
of the Company in relation to any audit or any enquiry resulting therefrom
and if the Purchaser shall at any time become aware of a Claim for
Taxation which may result in a Tax Claim, the Purchaser may at any time
thereafter by notice in writing to the Warrantors require that the
provisions of paragraph 10.3 shall lapse, in which case the provisions of
paragraph 9 (Claims Procedure) shall come into operation in accordance
with its terms.
	 
	11.	 	Election
	 
	11.1	 	Each Warrantor shall, if so requested by the Purchaser or the Company,
enter into an election under the provisions of section 431 of the Income
Tax (Earnings and Pensions) Act 2003 (“the Act”) in a form approved by the
Board of the Inland Revenue in respect of any shares acquired by them
under this Agreement for full disapplication of Chapter 2 of Part 7 of the
Act.
	 
	11.2	 	Each Vendor and the Purchaser agrees to assist and co-operate as
necessary to ensure that any election made pursuant to paragraph 11.1
above is effective.

78

 

Schedule 6

(Pension Indemnity)

“Regulations” means the Transfer of Undertakings (Protection of Employees)
Regulations 1981.

	1.	 	The Warrantors will indemnify and keep indemnified the Purchaser
Indemnified Parties, against all losses, costs, liabilities, expenses,
actions, proceedings, claims and demands which the Purchaser Indemnified
Parties do sustain, incur or pay arising out of any claim by or in respect
of any employee (or ex-employee) or director (or ex-director) of the
Company based directly on any actual failure or alleged failure by the
Company to provide any benefits other than old age, invalidity or
survivors’ benefits (as referred to in Regulation 7(2) of the Regulations)
to which such employees (or ex-employees) or directors (or ex-directors)
had a contractual entitlement, or claimed to have had a contractual
entitlement, prior to a transfer to the Company to which the Regulations
applied, but only to the extent that any such claim relates to a period or
periods of service prior to Completion.
	 
	2.	 	The Purchaser will indemnify and keep indemnified the Warrantors against
all losses, costs, liabilities, expenses, actions, proceedings, claims and
demands which the Warrantors sustain, incur or pay arising out of any
claim by or in respect of any employee (or ex-employee) or director (or
ex-director) of the Company based directly on any actual failure or
alleged failure by the Company to provide any benefits other than old age,
invalidity or survivors’ benefits (as referred to in Regulation 7(2) of
the Regulations) to which such employees (or ex-employees) or directors
(or ex-directors) had a contractual entitlement, or claimed to have had a
contractual entitlement, prior to a transfer to the Company to which the
Regulations applied, but only to the extent that any such claim relates to
a period or periods of service after Completion.
	 
	3.	 	The Purchaser shall, as soon as reasonably practicable, notify the
Warrantors of any liability under clause 1 (the “Warrantors’ Covered
Liability”) of which it becomes aware and shall provide the Warrantors
Representative, at the Warrantors expense, reasonable access to such
relevant documents and records as is necessary to enable the Warrantors’
Covered Liability to be considered by the Warrantors.
	 
	4.	 	The Warrantors shall, as soon as reasonably practicable, notify the
Purchaser of any liability under clause 2 (the “ Purchaser’s Covered
Liability”) of which it becomes aware and shall provide the Purchaser, at
the Purchaser’s expense, reasonable access to such relevant documents and
records as is necessary to enable the Purchaser’s Covered Liability to be
considered by the Purchaser.
	 
	5.	 	Clause 1 shall not apply where the Purchaser exercises any discretion to
consent to early retirement in respect of any employee or director unless
required to exercise such discretion by law or if the Warrantors’
Representative has given its prior written consent to such early
retirement, such consent not to be unreasonably withheld or delayed.

79

 

IN WITNESS whereof this Deed has been executed by the parties the day and year
first before written.

	 	 	 	 	 	 	 
	Executed as a Deed by

	 	 	)	 	 	 
	Martin Knestrick

	 	 	)	 	 	/s/ Martin Knestrick
	in the presence of:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	Signature of witness:
	 	/s/ John Martyn	 	 	 	 
	 
	 	 	 	 	 	 
	Name:
	 	John Martyn	 	 	 	 
	 
	 	 	 	 	 	 
	Address:
	 	[Illegible]	 	 	 	 
	 
	 	 	 	 	 	 
	Occupation:
	 	Finance Director	 	 	 	 
	 
	 	 	 	 	 	 
	Executed as a Deed by

	 	 	)	 	 	 
	Kenneth Colby

	 	 	)	 	 	/s/ Kenneth Colby
	in the presence of:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	Signature of witness:
	 	/s/ Martin Knestrick	 	 	 	 
	 
	 	 	 	 	 	 
	Name:
	 	Martin Knestrick	 	 	 	 
	 
	 	 	 	 	 	 
	Address:
	 	124 Red Hill
Circle
Tiburon, CA 94920 USA	 	 	 	 
	 
	 	 	 	 	 	 
	Occupation:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Executed as a Deed by

	 	 	)	 	 	 
	Stuart Potchinsky

	 	 	)	 	 	/s/ Stuart Potchinsky
	in the presence of:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	Signature of witness:
	 	/s/ Martin Knestrick	 	 	 	 
	 
	 	 	 	 	 	 
	Name:
	 	Martin Knestrick	 	 	 	 
	 
	 	 	 	 	 	 
	Address:
	 	124 Red Hill
Circle
Tiburon, CA 94920 USA	 	 	 	 
	 
	 	 	 	 	 	 
	Occupation:
	 	 	 	 	 	 

80

 

	 	 	 	 	 	 	 
	Executed as a Deed by

	 	 	)	 	 	 
	Pol Sweeney

	 	 	)	 	 	/s/ Pol Sweeney
	in the presence of:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	Signature of witness:
	 	/s/ Martin Knestrick	 	 	 	 
	 
	 	 	 	 	 	 
	Name:
	 	Martin Knestrick	 	 	 	 
	 
	 	 	 	 	 	 
	Address:
	 	124 Red Hill
Circle
Tiburon, CA 94920 USA	 	 	 	 
	 
	 	 	 	 	 	 
	Occupation:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Executed as a Deed by

	 	 	)	 	 	 
	Simon Joles

	 	 	)	 	 	/s/ Simon Joles
	in the presence of:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	Signature of witness:
	 	/s/ Martin Knestrick	 	 	 	 
	 
	 	 	 	 	 	 
	Name:
	 	Martin Knestrick	 	 	 	 
	 
	 	 	 	 	 	 
	Address:
	 	124 Red Hill
Circle
Tiburon, CA 94920 USA	 	 	 	 
	 
	 	 	 	 	 	 
	Occupation:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Executed as a Deed by

	 	 	)	 	 	 
	Cristian Parrino

	 	 	)	 	 	/s/ Cristian Parrino
	in the presence of:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	Signature of witness:
	 	/s/ Martin Knestrick	 	 	 	 
	 
	 	 	 	 	 	 
	Name:
	 	Martin Knestrick	 	 	 	 
	 
	 	 	 	 	 	 
	Address:
	 	124 Red Hill
Circle
Tiburon, CA 94920 USA	 	 	 	 
	 
	 	 	 	 	 	 
	Occupation:
	 	 	 	 	 	 

81

 

	 	 	 	 	 	 	 
	Executed as a Deed (but not

	 	 	)	 	 	 
	delivered until the date

	 	 	)	 	 	 
	appearing at the head of

	 	 	)	 	 	/s/ Krish Panu
	page 1) by @Road, Inc.

	 	 	)	 	 	 
	acting by:

	 	/s/ Michael Johnson	)	 	 	 
	 
	 	 	 	 	 	 
	

	 	 	President

	 
	 	 	 	 	 	 
	Executed as a Deed by

	 	 	)	 	 	 
	NV Partners III – BT LP

	 	 	)	 	 	/s/ Andrew Garman
	by NVPG LLC its general partner

	 	 	)	 	 	 
	acting by Andrew Garman,

	 	 	)	 	 	 
	in the presence of:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Signature of witness:

	 	/s/ Dror Futter	 	 	 	Managing Member
	 
	 	 	 	 	 	 
	Name:
	 	Dror Futter	 	 	 	 
	 
	 	 	 	 	 	 
	Address:
	 	720 Downing St.

Teaneck, NJ 07666	 	 	 	 
	 
	 	 	 	 	 	 
	Occupation:
	 	Attorney	 	 	 	 
	 
	 	 	 	 	 	 
	Executed as a Deed by

	 	 	)	 	 	 
	NVPG LLC in its capacity as

	 	 	)	 	 	 
	Warrantors’ Representative

	 	 	)	 	 	/s/ Andrew Garman
	acting by Andrew Garman

	 	 	)	 	 	 
	in the presence of:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	Signature of witness:

	 	/s/ Dror Futter	 	 	 	Managing Member
	 
	 	 	 	 	 	 
	Name:
	 	Dror Futter	 	 	 	 
	 
	 	 	 	 	 	 
	Address:
	 	720 Downing St.

Teaneck, NJ 07666	 	 	 	 
	 
	 	 	 	 	 	 
	Occupation:
	 	Attorney	 	 	 	 

82

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]