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					                                                                                                         MARSTON’S ANNUAL REPORT       2007




NOTES




38 CONTINGENT LIABILITIES AND FINANCIAL COMMITMENTS

On 9 August 2005 the Group entered into a Tax Deed of Covenant, the primary objective of which is to ensure that the Group does not
trigger a total de-grouping liability of £173.2m, of which £136.0m relates to Capital Gains Tax (CGT) and £37.2m relates to Stamp Duty
Land Tax (SDLT). This would arise in the event of Marston’s Pubs Limited (formerly W&DB Pubs Limited) being sold outside the Group
within six years for CGT purposes and three years for SDLT purposes. The Directors consider the likelihood of such a sale to be remote.

The Group has provided guarantees to Barclays Bank PLC in relation to loans entered into by tenants to finance the purchase of certain
fixtures and fittings. The total amount guaranteed under these arrangements is £1.2m (2006: £1.4m).

The Group has also entered into a Deed of Guarantee with the trustees of the Marston’s PLC Pension and Life Assurance Scheme (formerly
The Wolverhampton & Dudley Breweries, PLC Pension and Life Assurance Scheme) (‘the Scheme’) whereby it guarantees to the Trustees
the ongoing obligations of the Group to contribute to the Scheme, and the obligations of the Group to contribute to the Scheme in the event
of a debt becoming due under section 75 of the Pensions Act 1995 on the occurrence of either a Group company entering liquidation or
the Scheme winding-up.


39 EVENTS AFTER THE BALANCE SHEET DATE

On 22 November 2007, £330.0m of secured loan notes were issued in connection with the securitisation of an additional 437 of the
Group’s freehold and long leasehold tenanted pubs held in Marston’s Pubs Limited (formerly W&DB Pubs Limited). The additional
loan notes were issued by Marston’s Issuer PLC (formerly W&DB Issuer PLC), a special purpose entity (see note 36).The loan notes
are secured on the properties and their future income streams. On the same date, £313.0m of existing bank loans were repaid from
the funds raised.




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