Grier Awareness

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Subject: Ticketus------------------------

From: Phil Betts Date: 6 July 2011 14:14To: Craig Whyte

Cc: David Grier

Hi Craig

Further to our telephone conversation of earlier, please find below the details of the proposal fromTicketus as discussed.

The Bank of Scotland RFC Season ticket account 2011 shows a credit balance as at 04/07/2011 of3.4m.However, a further 1.3m was transferred from this account to another Bank of Scotland/Lloydsaccount in early June. Ticketus have sight of this account and are therefore saying they are entitledto at least 4.7m by tomorrow.

However, Ross has suggested the following:-

1.Send 1.8m by close of play tomorrow. Personally, I think we should do what we can to send this tothem tomorrow.

2. A further 1.6m should be payable tomorrow, but they are happy to wait until the middle of nextweek. However, they also want the 1.3m that was transferred into the Bank of Scotland/Lloydsaccount in early June.

3. On the 31st July a further 1.9m is payable. The 31st is their drop dead date, when,technically, the full 9.6m should be repaid and they are legally entitled to, whether we havereceived the cash or not. As covered in clause 4.9 of their agreement. I understand we are due a

further 1.9m later this month.

This will leave an outstanding balance due to Ticketus of some 3m.

4. We will need to send the 3m outstanding on the 31st July along with our completion statementand raise an invoice for 5.1m + VAT for the rollover.. At which point Ticketus will issue thecompletion certificate and release the rollover money, to be received by us on 1st August.

I am sure there is some flexibility within the exact timings of these payments, but we will be in seriousbreach or our contract if we fail to send the 9.6m by the end of July and my concern then will be theirappetite to release the rollover.

We also need to confirm that we are setting up 3 x new designated bank accounts for the three

seasons they are funding us.

Fyi - The bank statement I have shows 141k of bounced DD's on Monday.

I am not as close to the cashflow as you so not sure what's coming in and going out, so will need yourguidance as to whether this is manageable within our cashflow.

They are having similar issues with other clients, so we are by no means the only ones. However,this deal is high on their radar and is under severe scrutiny by their independent committeemembers. Especially, those that took some convincing to do the deal in the first place. I fullyappreciate we have to protect our own business, but we need to do what we can to accommodate. Ifthe above is impossible then I would like to let Ross know as soon as possible as there is a real needfor regular and open dialogue with him at present.

Let me know what you think and no swearing!


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RegardsPhil.

----------From: Craig Whyte Date: 6 July 2011 14:33To: Phil Betts Cc: David Grier

Phil,

I don't see how this is possible within the cashflow as per previous discussions. We need to find aseamless way to do this where we are only losing the net amount of 3.5m from the cashflow. Wecould pay the net amount by the end of next week but we're going to have to find a creative way to

deal with the balance.

Craig

Sent from my iPad

----------From: David GrierDate: 6 July 2011 14:40To: "[email protected]" , "[email protected]"

Phil,

I think we need to look at the flexed short term cash flow and see what we can draw down in respectof the capex ahead of your additional refinance.

I will bring a copy of the cash flow for discussion tomorrow.

I have also had very positive feedback on the property finance (indications are that we could completeon this within 4 weeks) and need to push this forward with you tomorrow.

Regards,

David

David GrierPartnerMCR43 - 45 Portman SquareLondon W1H 6LY

Mobile:07900 137552Office:020 7487 7240Fax:020 7487 7299www.mcr.uk.com

From: Craig Whyte [mailto:[email protected]]Sent: Wednesday, July 06, 2011 07:33 PM

To: Phil Betts Cc: David Grier
http://www.mcr.uk.com/http://www.mcr.uk.com/mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://www.mcr.uk.com/


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Subject: Re: Ticketus

DISCLAIMER

This message is for the intended recipient only.

----------From: PhilBetts Date: 6 July 2011 16:02To: Craig Whyte , David Grier

I'm sure they will be happy if we send them 1.8m tomorrow and 1.7m next week.

All we then need to deal with is the remaining 6m.

Can we use some of the money held in Escrow and set it up that a CHAPs payment is sent toTicketus on the understanding that the 6m rollover money is sent by CHAPs to Gary on the sameday to replenish the Escrow account. Keeps it away from Ken too.

This way Gary should be comfortable as he shouldn't be exposed under his undertaking.

Phil

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