Document:

Exhibit 10.31

 

Dated 11th August, 2010

 

(1) O&H Q7 LIMITED

 

- and -

 

(2) GW PHARMA LIMITED

 

-and-

 

(3) GW PHARMACEUTICALS PLC

 

 

OCCUPATIONAL UNDERLEASE OF

6th FLOOR, ONE CAVENDISH PLACE,

LONDON W1

 

Mishcon de Reya
 Summit House
 12 Red Lion Square
 London WC1R 4QD
 Tel: 020 7440 7000
 Fax: 020 7404 5982
 Ref HL/16795.230
 E-mail: helena.liebster@mishcon.com

 

 

TABLE OF CONTENTS

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
DEFINITIONS
    	
3
    
	
 
    	
 
    	
 
    
	
2.
    	
INTERPRETATION
    	
10
    
	
 
    	
 
    	
 
    
	
3.
    	
GRANT,   RIGHTS AND OTHER MATTERS
    	
11
    
	
 
    	
 
    	
 
    
	
4.
    	
RENTS
    	
14
    
	
 
    	
 
    	
 
    
	
5.
    	
INTEREST
    	
16
    
	
 
    	
 
    	
 
    
	
6.
    	
OUTGOINGS
    	
16
    
	
 
    	
 
    	
 
    
	
7.
    	
VALUE   ADDED TAX
    	
17
    
	
 
    	
 
    	
 
    
	
8.
    	
TAXATION
    	
18
    
	
 
    	
 
    	
 
    
	
9.
    	
LANDLORD’S   COSTS
    	
18
    
	
 
    	
 
    	
 
    
	
10.
    	
REPAIRS,   DECORATION ETC.
    	
19
    
	
 
    	
 
    	
 
    
	
11.
    	
YIELD   UP
    	
21
    
	
 
    	
 
    	
 
    
	
12.
    	
COMPLIANCE   WITH NOTICES
    	
22
    
	
 
    	
 
    	
 
    
	
13.
    	
ALTERATIONS
    	
22
    
	
 
    	
 
    	
 
    
	
14.
    	
USE   OF PREMISES
    	
24
    
	
 
    	
 
    	
 
    
	
15.
    	
USE   RESTRICTIONS
    	
24
    
	
 
    	
 
    	
 
    
	
16.
    	
LANDLORD’S   REGULATIONS
    	
24
    
	
 
    	
 
    	
 
    
	
17.
    	
EXCLUSION   OF WARRANTY AS TO USER
    	
25
    
	
 
    	
 
    	
 
    
	
18.
    	
GENERAL   RESTRICTIONS
    	
25
    
	
 
    	
 
    	
 
    
	
19.
    	
ASSIGNMENT
    	
26
    
	
 
    	
 
    	
 
    
	
20.
    	
UNDERLETTING
    	
28
    
	
 
    	
 
    	
 
    
	
21.
    	
REGISTRATION   OF DISPOSITIONS
    	
31
    
	
 
    	
 
    	
 
    
	
22.
    	
STATUTORY   REQUIREMENTS
    	
31
    
	
 
    	
 
    	
 
    
	
23.
    	
PLANNING   ACTS
    	
32
    
	
 
    	
 
    	
 
    
	
24.
    	
STATUTORY   NOTICES
    	
33
    
	
 
    	
 
    	
 
    
	
25.
    	
FIRE   PRECAUTIONS AND EQUIPMENT
    	
34
    
	
 
    	
 
    	
 
    
	
26.
    	
DEFECTIVE   PREMISES
    	
35
    
	
 
    	
 
    	
 
    
	
27.
    	
INSURANCE   PROVISIONS
    	
35
    
	
 
    	
 
    	
 
    
	
28.
    	
DEFAULT   OF TENANT
    	
40
    
	
 
    	
 
    	
 
    
	
29.
    	
LANDLORD’S   SERVICES
    	
42
    
	
 
    	
 
    	
 
    
	
30.
    	
SERVICE   CHARGE
    	
45
    
	
 
    	
 
    	
 
    
	
31.
    	
OBLIGATIONS   AND CONSENTS UNDER SUPERIOR LEASE
    	
48
    

 

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
32.
    	
QUIET   ENJOYMENT
    	
49
    
	
 
    	
 
    	
 
    
	
33.
    	
EXCLUSION   OF IMPLIED COVENANTS BY LANDLORD
    	
49
    
	
 
    	
 
    	
 
    
	
34.
    	
RELETTING   NOTICES
    	
50
    
	
 
    	
 
    	
 
    
	
35.
    	
DISCLOSURE   OF INFORMATION
    	
50
    
	
 
    	
 
    	
 
    
	
36.
    	
INDEMNITY
    	
50
    
	
 
    	
 
    	
 
    
	
37.
    	
REPRESENTATIONS
    	
50
    
	
 
    	
 
    	
 
    
	
38.
    	
EFFECT   OF WAIVER
    	
51
    
	
 
    	
 
    	
 
    
	
39.
    	
NOTICES
    	
51
    
	
 
    	
 
    	
 
    
	
40.
    	
TENANT’S   OPTION TO DETERMINE
    	
51
    
	
 
    	
 
    	
 
    
	
41.
    	
EXCLUSION   OF LANDLORD AND TENANT ACT 1954
    	
53
    
	
 
    	
 
    	
 
    
	
42.
    	
GUARANTOR’S   COVENANTS
    	
54
    
	
 
    	
 
    	
 
    
	
43.
    	
NEW   TENANCY
    	
54
    
	
 
    	
 
    	
 
    
	
44.
    	
INVALIDITY   OF CERTAIN PROVISIONS
    	
54
    
	
 
    	
 
    	
 
    
	
45.
    	
THIRD   PARTY RIGHTS
    	
54
    
	
 
    	
 
    	
 
    
	
46.
    	
PREVIOUS   LEASE B
    	
54
    
	
 
    	
 
    	
 
    
	
47.
    	
WARRANTED   RISK
    	
54
    
	
 
    	
 
    	
 
    
	
SCHEDULE 1 Rights And Easements Granted
    	
56
    
	
 
    	
 
    
	
SCHEDULE 2 Exceptions and Reservations
    	
57
    
	
 
    	
 
    
	
SCHEDULE 3 Use Restrictions
    	
59
    
	
 
    	
 
    
	
SCHEDULE 4 Covenants by Guarantor
    	
62
    
	
 
    	
 
    
	
SCHEDULE 5 Items of Expenditure as referred to in   clause 30
    	
67
    
	
 
    	
 
    
	
SCHEDULE 6 Deeds and documents containing matters   to which the premises are subject
    	
72
    
	
 
    	
 
    
	
SCHEDULE 7 Authorised Guarantee Agreement to be   given by Tenant pursuant to clause 19.3.2
    	
73
    

 

ii

 

Dated 11th August, 2010

 

	
LR1:   Date of lease
    	
 
    	
11th August 2010
    
	
 
    	
 
    	
 
    
	
LR2:   Title number(s)
    	
 
    	
LR2.1   Landlord’s title number(s)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
314084
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
LR2.2   Other title numbers)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
None
    
	
 
    	
 
    	
 
    
	
LR3:   Parties to the lease
    	
 
    	
Landlord:   O & H Q7 Limited (company reg. no.   5277165) whose registered office is at 25-28 Old Burlington Street, London   WIS 3AN
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Tenant:  G W Phar a Limited (company reg. no. 3704998) whose   registered office is at Porton Down Science Park, Salisbury, Wiltshire SP4   OJQ
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Guarantor:  G W Pharmaceuticals Plc (company reg. no. 4160917) whose   registered office is at Porton Down Science Park, Salisbury, Wiltshire SP4   OJQ
    
	
 
    	
 
    	
 
    
	
LR4:   Property
    	
 
    	
In   the case of a conflict between this clause and the remainder of this lease,   then for the purposes of registration, this clause shall prevail.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The   property known as 6th floor, One Cavendish Place, London shown   edged red on the attached plan as further described in clause 1.23
    
	
 
    	
 
    	
 
    
	
LR5:   Prescribed statements etc.
    	
 
    	
LR5.1   Statements prescribed under rules 179 (dispositions in favour of a   charity), 180 (dispositions by a charity) or 196 (leases under the Leasehold   Reform, Housing and Urban Development Act 1993) of the Land Registration   Rules 2003.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
None
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
LR5.2   This lease is made under, or by reference to, provisions of:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
None
    
	
 
    	
 
    	
 
    
	
LR6:   Term for which the property is leased
    	
 
    	
From   and including 1 October 2010 to and including 30 September 2015
    
	
 
    	
 
    	
 
    
	
LR7:   Premium
    	
 
    	
None
    

 

1

 

	
LR8:   Prohibitions or restrictions on disposing of this lease
    	
 
    	
This   lease contains a provision that prohibits or restricts dispositions.
    
	
 
    	
 
    	
 
    
	
LR9:   flights of acquisition etc
    	
 
    	
LR9.1   Tenant’s contractual rights to renew this lease, to acquire the reversion or   another lease of the Property, or to acquire an interest in other land
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
None
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
LR9.2   Tenant’s covenants to (offer to) surrender this lease
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
None
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
LR9.3   Landlord’s contractual rights to acquire this lease
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
None
    
	
 
    	
 
    	
 
    
	
LR10:   Restrictive covenants given in this lease by the Landlord in respect of land   other than the Property
    	
 
    	
None
    
	
 
    	
 
    	
 
    
	
LR11:   Easements
    	
 
    	
LR11:   Easements granted by this lease for the benefit of the Property
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
See   Schedule 1
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
LR1.1.2   Easements granted or reserved by this lease over the Property for the benefit   of other property
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
See   Schedule 2
    
	
 
    	
 
    	
 
    
	
LR12:   Estate rentcharge burdening the Property
    	
 
    	
None
    
	
 
    	
 
    	
 
    
	
LR13:   Application for a standard form of restriction
    	
 
    	
None
    
	
 
    	
 
    	
 
    
	
LR14:   Declaration of trust where there is more than one person comprising the   tenant
    	
 
    	
Not   applicable
    

 

2

 

SECTION 1

 

DEFINITIONS AND INTERPRETATION

 

1.                                      DEFINITIONS

 

The expressions Landlord, Tenant, Guarantor, Property and Term have the meanings given to than in clauses LR3, LR4 and LR6.

 

These further definitions apply:

 

1.1                               “Additional Rent” means all sums referred to in clause 5, and all sums which are recoverable as rent in arrear or stated in this Lease to be due to the Landlord;

 

1.2                               “Adjoining Property” means any land and/or buildings adjoining or neighboring the Premises;

 

1.3                               “Base Rate” means the base rate for the time being of Barclays Bank PLC or some other London clearing bank nominated from time to time by the Landlord or. in the event of base rate being abolished. such other comparable rate of interest as the Landlord shall reasonably specify;

 

1.4                               “Building”  means the land situated at One Cavendish Place. London WI together with the building erected on it or on part of it and registered under title number 314084 and each and every part of the land and building. including all landlord’s fixtures, fittings, plant, machinery, apparatus and equipment now or after the date of this Lease in or upon the same;

 

1.5                               “Code of Measuring Practice” means the current RICS Code of Measuring Practice published on behalf of the Royal Institution of Chartered Surveyors;

 

1.6                               “Common Parts”  means any entrance halls, lavatories, cleaning cupboards, risers, corridors, passages, lobbies, landings, staircases, lifts, pedestrian ways, courtyards, forecourts, and service areas and loading bays if any and any other amenities in, or forming part of, the Building which are or may from time to time be provided or designated by the Landlord for common use by the tenants and occupiers of the Building 

 

3

 

and all persons expressly or by implication authorised by them but excluding the Lettable Areas;

 

1.7                               “Conduits”  means all drains, pipes, gullies, gutters, sewers, ducts, mains, channels, subways, wires, cables, conduits, flues and any other conducting media of whatsoever nature;

 

1.8                               “Decoration Year”  means the year ending 30 September 2013;

 

1.9                               “Development”  means development as defined in section 55 of the Town and Country Planning Act 1990;

 

1.10                        “Group Company”  means any company which is. for the time being (a) a subsidiary of the relevant party or (b) the holding company of that party or (c) another subsidiary of the holding company of that party, in each case within the meaning of section 736 of the Companies Act 1985, as amended by the Companies Act 1989;

 

1.11                        “Guarantor”  means the party named as ‘Guarantor’ in this Lease and includes the person from time to time guaranteeing the obligations of the Tenant under this Lease and. in the case of an individual, includes his personal representatives;

 

1.12                        “Initial Rent” means the sum of one hundred thousand and five hundred pounds sterling (£114,838.00) per annum;

 

1.13                        “Insurance Rent” means:-

 

1.13.1                                      a due proportion (to be fairly and properly determined by the Landlord or the Surveyor) of the sums which the Landlord pays from time to time for insuring the Building against the Insured Risks pursuant to clause 27.1.1 and the other items referred to in clauses 27.1.3 and 27.1.4; and

 

1.13.2                                      all sums which the Landlord pays from time to time for insuring against the loss of the Principal Rent and the Service Charge pursuant to clause 27.1.2;

 

4

 

1.14                        “Insured Risks” means (to the extent that any of the same are insurable in the London insurance market at reasonable cost and on reasonable terms) fire, storm, tempest, flood, earthquake, lightning, explosion, terrorism, impact, aircraft (other than hostile aircraft), subsidence and other aerial devices and articles dropped from them, riot, civil commotion and malicious damage, bursting or overflowing of water tanks, apparatus or pipes, and such other risks as the Landlord may, in its discretion from time to time, determine;

 

1.15                        “Landlord”  means the person for the time being entitled to the reversion immediately expectant on the determination of the Term;

 

1.16                        “Layout Plan”  means the layout plan attached to this Lease and labelled “Layout Plan”;

 

1.17                        “this Lease”  means this Underlease and any document which is supplemental to it. whether or not it is expressly stated to be so;

 

1.18                        “Lettable Areas”  means those parts of the Building leased or intended to be leased to occupational tenants;

 

1.19                        “Net Internal Area” means the total floor area (expressed in Units of Measurement) measured in accordance with the Code of Measuring Practice;

 

1.20                        “Permitted Use”  means good class offices within paragraph (a) of Class B1 (Business) of the Town and Country Planning (Use Classes) Order 1987 only and not any amendment or re-enactment of such Order made after the date of this Lease and purposes ancillary to such use (but excluding any offices which encourage daily general public access without prior appointment and any other use to which the Landlord may reasonably object on the grounds of good estate management);

 

1.21                        “Plan”  means the plan annexed to this Lease;

 

1.22                        “Planning Acts”  means the Town and Country Planning Act 1990, the Planning (Listed Buildings and Conservation Areas) Act 1990, the Planning (Hazardous Substances) Act

 

5

 

1990, the Planning (Consequential Provisions) Act 1990, and the Planning and Compensation Act 1991 and any other town and country planning or related legislation;

 

 

1.23                        “Premises” means the 6th floor of the Building shown edged red on the Plan including:-

 

1.23.1                                      the internal plaster surfaces and finishes of any structural or load bearing walls and columns in or which enclose them, but not any other part of such walls and columns;

 

1.23.2                                      the entirety of any non-structural or non-load bearing walls and columns in them;

 

1.23.3                                      the inner half (severed medially) of any internal non-load hearing walls which divide them from any other part of the Building;

 

1.23.4                                      the floor of them (including raised floors and the cavity below them) but the lower limit of the Premises shall not extend to anything below the floor slabs;

 

6

 

1.23.5                                      the ceiling finishes of them, including suspended ceilings and suspended plaster ceiling (if any) and light fittings but the upper limit of the Premises shall not extend to anything above the ceiling finishes other than the cavity above any suspended ceilings which shall be included;

 

1.23.6                                      all glass in the external windows;

 

1.23.7                                      all sanitary and hot and cold water apparatus and equipment and any radiators in them and all fire fighting equipment and hoses in them together exclusively serving the same;

 

1.23.8                                      all Conduits in them and exclusively serving the same, except those of any utility company;

 

1.23.9                                      all landlord’s fixtures, fitting, plant, machinery, apparatus and equipment at any time in or one them (but not any air conditioning units, sprinklers and ducting and ancillary plant, machinery, apparatus or equipment); and

 

1.23.10                               any additions, alterations and improvements;

 

1.24                        “Previous Lease A”  means the lease dated 27 November 2008 made between (1) the Landlord (2) the Tenant and (3) the Guarantor;

 

1.25                        “Previous Lease B” means the lease dated 1 September 2009 made between (1) the Landlord (2) the Tenant and (3) the Guarantor;

 

1.26                        “Previous Leases”  means Previous Lease A and Previous Lease B;

 

1.27                        “Prescribed Rate”  means four per cent (4%) per annum above the Base Rate;

 

1.28                        “Present Tenant” means (in Schedule 4) the Tenant at the time the covenants on the part of the Guarantor arc entered into and (in Schedule 7) the Tenant at the time the covenants on the part of the Present Tenant therein referred to are entered into;

 

1.29                        “President”  means the President for the time being of the Royal Institution of Chartered Surveyors (or in the event that such Institution ceases to exist such other independent

 

7

 

body as the Landlord may reasonably nominate) and includes the duly appointed deputy of the President or any person authorised by the President or by the Institution or nominated body to make appointments on his or its behalf;

 

1.30                        “Principal Rent” means the rent payable under clause 4.1.1;

 

1.31                        “Rent Commencement Date”  means 1 October 2010;

 

1.32                        “Rents”  means the sums payable by the Tenant under clause 4;

 

1.33                        “Retained Parts”  means all parts of the Building which do not comprise Lettable Areas, including:-

 

1.33.1                                      the Common Parts;

 

1.33.2                                      any parts of the Building reserved by the Landlord for the housing of plant, machinery or equipment, or otherwise in connection with, or required for, the provision of services (which for the avoidance of doubt includes the air conditioning apparatus and risers);

 

1.33.3                                      all Conduits in, on, over or under, or exclusively serving the Building, except any that form part of the Lettable Areas;

 

1.33.4                                      the main structure of the Building, including the roof and its structural parts, the foundations, all external walls, any internal structural or load bearing walls and columns, the structural slabs of the ceilings and floors, any party structures, boundary walls, railings and fences, and all exterior parts of the Building and any pavements, pavement lights, roads and car parking areas (if any) which form part of the Building.

 

1.34                        “Schedule of Condition”  means the schedule of condition attached to this Lease;

 

1.35                        “Service Charge”  has the meaning given to that expression in clause 30;

 

8

 

1.36                        “Superior Landlord”  means or its successor as the person for the time being enfitled to any estate in the Building which is reversionary (whether immediate or mediate) upon the Landlord’s estate;

 

1.37                        “Superior Lease”  means the Lease of the Building dated 2 November 1925 and made between The Right Honourable Thomas Evelyn Baron Howard de Walden and Seaford (1) and James Rossdale (2) for the term of 999 years from 6 January 1914 and any other lease of the Building which is reversionary (whether immediate or mediate) upon this Lease;

 

1.38                        “Surveyor”  means any person appointed by the Landlord to perform the function of a surveyor or an accountant for any purpose of this Lease and includes any employee of the Landlord or of a Group Company of the Landlord appointed for that purpose and any person appointed by the Landlord to collect the rents or to manage the Building;

 

1.39                        “Tenant”  means the party named as ‘Tenant’ in this Lease and includes the Tenant’s successors in title and assigns and, in the case of an individual, his personal representatives;

 

1.40                        “Term”  means the term of years specified in clause 3.1;

 

1.41                        “Term Commencement Date”  means 1 October 2010;

 

1.42                        “Unit/s of Measurement”  means the units of square measurement determined in accordance with the Code of Measuring Practice;

 

1.43                        “Utilities”  means water, soil, steam, air, electricity, radio, television, telegraphic, telephone, telecommunications and other services and supplies of whatsoever nature;

 

1.44                        “Value Added Tax”  means value added tax as defined in the Value Added Tax Act 1994 and any tax of a similar nature substituted for, or levied in addition to, such value added tax;

 

1.45                        “Warranted Risk”  means, insofar as the same relates to the Works, any substantial and material (in the reasonable opinion of the Landlord having regard to the best interests of

 

9

 

the occupational tenants in the Building) defects in the Works or in, or attributable to the manufacture, construction, design, workmanship or materials used in each case by or on behalf of the building contractors and other consultants employed in carrying out the Works and which causes any of the Tenants to incur an increased service charge liability under this Lease which it would not otherwise have incurred;

 

1.46                        “Warrantor”  means any party (other than the Tenant or any other tenant or occupier of any other part of the Building) against whom (at any relevant time) the Landlord has the right of action for recovery of losses, damages or costs in respect of the Warranted Risks;

 

1.47                        “Works”  means the works described in the Licence for Alterations dated 24 June 2003 and made between (1) the Superior Landlord and (2) the Landlord;

 

1.48                        “Working Day”  means any day, other than a Saturday or Sunday, on which clearing banks in the United Kingdom are open to the public for the transaction of business.

 

2.                                     INTERPRETATION

 

Unless there is something in the subject or context inconsistent with the same:-

 

2.1                               every covenant by a party comprising more than one person shall be deemed to be made by such party jointly and severally;

 

2.2                               words importing persons shall include companies and corporations and vice versa;

 

2.3                               any covenant by the Tenant not to do any act or thing shall include an obligation not to permit or suffer such act or thing to be done;

 

2.4                               any reference to the right of the Landlord to have access to, or to enter, the Premises shall be construed as extending to the Superior Landlord and to any mortgagee of the Landlord or the Superior Landlord and to all persons authorised by them, including agents, professional advisers, contractors, workmen and others;

 

10

 

2.5                               any requirement that the Tenant must obtain the approval or consent of the Landlord, in respect of any matter mentioned in this Lease includes a requirement that, where necessary under the Superior Lease, the approval or consent of the Superior Landlord must also be obtained in respect of that matter;

 

2.6                               any reference to a statute (whether specifically named or not) shall include any amendment or re-enactment of it for the time being in force, and all instruments, orders, notices, regulations, directions, bye-laws, permissions and plans for the time being made, issued or given under it, or deriving validity from it;

 

2.7                               all agreements and obligations by any party contained in this Lease (whether or not expressed to be covenants) shall be deemed to be, and shall be construed as, covenants by such party;

 

2.8                               the word “assignment” includes equitable assignment and the words “assign” and “assignee” shall be construed accordingly;

 

2.9                               the titles or headings appearing in this Lease are for reference only and shall not affect its construction;

 

2.10                        any reference to a clause or schedule shall mean a clause or schedule of this Lease.

 

SECTION 2

 

GRANT OF LEASE

 

3.                                      GRANT, RIGHTS AND OTHER MATTERS

 

3.1                               Demise and Term

 

In consideration of the rents, covenants and agreements reserved by and contained in, this Lease to be paid and performed by the Tenant, the Landlord leases the Premises with full title guarantee to the Tenant from and including the Term Commencement Date for the term of five (5) years paying the Rents to the Landlord in accordance with clause 4.

 

11

 

3.2                               Rights and Easements

 

There are granted the rights and easements set out in Schedule 1.

 

3.3                               Exceptions and reservations

 

There are excepted and reserved out of this Lease the rights and easements set out in Schedule 2.

 

3.4                               Third party rights

 

This Lease is granted subject to any rights, easements, reservations, privileges, covenants, restrictions, stipulations and other matters of whatever nature affecting the Premises including any exceptions or reservations and other matters contained or referred to in the Superior Lease and any matters contained or referred to in the deeds and documents listed in Schedule 6 so far as any of them relate to the Premises and are still subsisting and capable of taking effect.

 

3.5                               No implied easements

 

Nothing contained in this Lease shall confer on, or grant to, the Tenant any easement, right or privilege, other than those expressly granted by this Lease.

 

3.6                               Covenants affecting reversion

 

The Tenant shall perform and observe the agreements, covenants, restrictions and stipulations contained or referred to in the deeds and documents listed in Schedule 6 so far as any of them relate to the Premises and are still subsisting and capable of taking effect.

 

3.7                               Encroachments and easements

 

The Tenant shall not stop up or obstruct any of the windows or lights belonging to the Premises and shall not permit any new window, light, opening, doorway, passage, Conduit or other encroachment or easement to be made or acquired into, on or over the Premises or any part of them. If any person shall attempt to make or acquire any encroachment or easement whatsoever, the Tenant shall give written notice of that fact (o

 

12

 

the Landlord immediately it shall come to the notice of the Tenant and, at the request of the Landlord and at the joint cost of the Landlord and Tenant, adopt such means as may be reasonably required by the Landlord for preventing any encroachment or the acquisition of any easement.

 

3.8                               Covenants relating to other property

 

Nothing contained in, or implied by, this Lease shall give the Tenant the benefit of, or the right to enforce or prevent the release or modification of, any covenant or agreement entered into by any tenant of the Landlord in respect of any property not comprised in this Lease.

 

3.9                               Landlord’s Covenants

 

Covenants on the part of the Landlord are covenants to do or not to do that which is covenanted for so long only as the Landlord remains entitled to the reversion immediately expectant on the determination of the Term and until released from such liability pursuant to S. 8 of the Landlord and Tenant (Covenants) Act 1995.

 

3.10                        Rights of entry by Landlord

 

The Tenant shall permit the Landlord or its surveyor/employees with all necessary materials and appliances to enter and remain on the Premises:-

 

3.10.1                                      to examine the condition of the Premises and to take details of the Landlord’s fixtures in them;

 

3.10.2                                      to exercise any of the rights excepted and reserved by this Lease;

 

3.10.3                                      for any purpose that. in the reasonable opinion of the Landlord. Is necessary to enable it to comply with any covenant on its part contained in the Superior Lease even though the obligation to comply with such covenant may be imposed on the Tenant by this Lease:

 

3.10.4                                      valuing or disposing of the Landlord’s interest in the Building;

 

13

 

3.10.5                                      to carry out inspection, repairs, renewals (when necessary) and maintenance of the flooring and air conditioning units and apparatus within the Premises.

 

3.11                 Terms of entry by Landlord

 

In exercising any of the rights mentioned in clause 3.10, the Landlord or the person exercising the right shall:-

 

3.11.1                                      give to the Tenant reasonable prior notice in writing of at least 3 working days that the right is to be exercised and shall only exercise it at reasonable times (except in an emergency, when no notice need be given and when it can, be exercised at any time);

 

3.11.2                                      cause as little inconvenience as practicable to the Tenant or any other permitted occupier of any part of the Premises; and

 

3.11.3                                      make good, as soon as practicable and to the reasonable satisfaction of the Tenant, any damage caused to the Premises.

 

SECTION 3

 

FINANCIAL PROVISIONS

 

4.                                      RENTS

 

4.1                               Tenant’s obligation to pay

 

The Tenant covenants to pay to the Landlord at all times during the Term:-

 

4.1.1                                             yearly, and proportionately for any fraction of a year, the initial Rent;

 

4.1.2                                             the Insurance Rent;

 

4.1.3                                             the Service Charge;

 

4.1.4                                             the Additional Rent; and

 

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4.1.5                                             any Value Added Tax which may be chargeable in respect of the Principal Rent, the Insurance Rent, the Service Charge and the Additional Rent.

 

4.2                               Dates of payment of Principal Rent

 

The Principal Rent and any Value Added Tax chargeable on it shall be paid in four (4) equal instalments in advance on each 25th March, 24th June, 29th September and 25th December in every year, the first payment, being a proportionate sum in respect of the period from and including the Rent Commencement Date to the day before the quarter day following the Rent Commencement Date to be made on the Rent Commencement Date.

 

4.3                               Method of payment of Principal Rent

 

The Principal Rent and any Value Added Tax chargeable on it shall be paid in such manner as the Landlord may, from time to time, reasonably determine so that the Landlord shall receive full value in cleared funds on the date when payment is due unless the due date for payment is not a Working Day in which case the due date for payment shall be the next Working Day.

 

4.4                               Dates of payment of Insurance Rent and Additional Rent

 

The Insurance Rent and the Additional Rent and any Value Added Tax chargeable on either of them shall be paid within 7 days of receipt of written demand, the first payment of the Insurance Rent having been made on the date of this Lease.

 

4.5                               Dates of payment of Service Charge

 

The Service Charge and any Value Added Tax chargeable on it shall be paid within 7 days of receipt of written demand in accordance with clause 30.

 

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4.6                               No right of set-off

 

Subject to any contrary statutory right, the Tenant shall not exercise any legal or equitable rights of set-off, deduction, abatement or counterclaim which it may have to reduce its liability for Rents.

 

5.                                      INTEREST

 

5.1                               Interest on late payments

 

Without prejudice to any other right, remedy or power contained in this Lease or otherwise available to the Landlord, if any of the Rents (whether formally demanded or not save that this provision shall not apply in respect of Service Charge or Insurance Rent which the Landlord must formally demand of the Tenant) or any other sum of money payable to the Landlord by the Tenant under this Lease shall not be paid so that the Landlord receives full value in cleared funds on the due payment date under the terms of this Lease the Tenant shall pay interest on such Rents and/or sums at the Prescribed Rate from and including the date when payment was due to the date of payment to the Landlord (both before and after any judgment).

 

5.2                               Interest on refused payments

 

Without prejudice to any other right, remedy or power contained in this Lease or otherwise available to the Landlord, if the Landlord shall decline to accept any of the Rents so as not to waive any existing breach, the Tenant shall pay interest on such Rent at the Prescribed Rate from and including the date when payment was due (or, where applicable, would have been due if demanded on the earliest date on which it could have been demanded) to the date when payment is accepted by the Landlord.

 

6.                                      OUTGOINGS

 

6.1                               Tenant’s obligation to pay

 

The Tenant shall pay, or indemnify the Landlord against, all existing and future rates arising during the Term or any extension or continuation thereof, taxes, duties, charges, assessments, impositions arid other outgoings whatsoever (whether parliamentary, parochial, local or of any other description and whether or not of a capital or non-

 

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recurring nature or of a wholly novel character) which are now or may at any time during the Term be Charged, levied, assessed or imposed upon, or payable in respect of, the Premises or upon the owner or occupier of them (excluding any tax payable by the Landlord occasioned by any disposition of, or dealing with, the reversion of this Lease) and, in the absence of a direct assessment on the Premises, shall pay to the Landlord a fair proportion (to be reasonably determined by the Landlord) of any such outgoings.

 

6.2                               Indemnity against void rating relief

 

The Tenant shall indemnify the Landlord against any loss to the Landlord of void rating relief which might have been applicable to the Premises by reason of the Premises being vacant after the end of the Term (or any earlier termination of it) on the ground that such relief has already been allowed to the Tenant.

 

6.3                               Costs of utilities etc.

 

The Tenant shall:-

 

6.3.1                                             pay all charges for electricity gas and water consumed in the Premises including any connection and hiring charges and meter rents; and

 

6.3.2                                             perform and observe all present and future reasonable regulations and requirements of the electricity, gas and water supply companies or boards in respect of the supply and consumption of electricity, gas and water on the Premises.

 

7.                                      VALUE ADDED TAX

 

7.1                               Sums exclusive of VAT

 

All sums payable under this Lease by the Tenant to the Landlord (with the exception of the rent reserved in clause 4.1.5) shall be deemed to be exclusive of Value Added Tax.

 

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7.2                               Tenant to pay VAT

 

Where pursuant to the terms of this Lease the Landlord makes a supply to the Tenant (other than a supply made in consideration for the payment of the Rents) and Value Added Tax is legally payable in respect of such supply, the Tenant shall pay to the Landlord on the date of such supply a sum equal to the amount of Value Added Tax so payable.

 

7.3                               VAT incurred by Landlord

 

Where the Tenant is required by the terms of this Lease to reimburse the Landlord for the costs or expenses of any supplies made to the Landlord, the Tenant shall also at the same time pay or, as the case may be, indemnify the Landlord against all Value Added Tax input tax incurred by the Landlord in respect of those supplies save to the extent that the Landlord is entitled to repayment or credit in respect of such Value Added Tax input tax.

 

8.                                      TAXATION

 

Notwithstanding anything contained in this Lease, the Tenant shall not do on, or in relation to, the Premises or any part of them, or in relation to any interest of the Tenant in the Premises, any act or thing (other than the payment of the Rents) which shall render the Landlord liable for any tax, levy, charge or other fiscal imposition of whatsoever nature save that the Tenant shall be permitted to do and perform anything permitted by this Lease without incurring a liability to the Landlord under this Clause.

 

9.                                      LANDLORD’S COSTS

 

Within ten (10) Working Days of prior written demand, the Tenant shall pay, or indemnify the Landlord, the Superior Landlord and any mortgagee against, all reasonable costs, fees, charges, disbursements and expenses properly incurred by them, including those payable to solicitors, counsel, surveyors, architects and bailiffs;-

 

9.1                               in relation to, or in reasonable contemplation of, the preparation and service of a notice under section 146 of the Law of Property Act 1925 or any proceedings under section 146 or section 147 of that Act (whether or not any right of reentry or forfeiture has been waived by the Landlord or a notice served under section 146 is complied with by the 

 

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Tenant or the Tenant has been relieved under the provisions of that Act and even though forfeiture may be avoided otherwise than by relief granted by the court);

 

9.2                               in relation to, or in reasonable contemplation of, the preparation and service within 21 days of all notices and schedules relating to any wants of repair, served during or after the expiration of the Term (but relating in all cases only to such wants of repair which accrued not later than the expiration or earlier determination of the Term);

 

9.3                               in connection with the recovery or attempted recovery of arrears of rent or other sums due from the Tenant, or in procuring the remedying of the breach of any covenant by the Tenant;

 

9.4                               in relation to any application for consent required or made necessary by this Lease (such costs to include reasonable management fees and expenses) whether or not it is granted (except in cases where the Landlord is obliged not to withhold its consent unreasonably and the withholding of its consent is held to be unreasonable), or the application is withdrawn.

 

SECTION 4

 

REPAIRS, ALTERATIONS AND SIGNS

 

10.                               REPAIRS, DECORATION ETC.

 

10.1                        Repairs

 

Subject to clause 10.2, the Tenant shall:-

 

10.1.1                                      repair, and reinstate (as may be necessary); and

 

10.1.2                                      as and when necessary, replace any of the landlord’s fixtures and fittings (excluding the flooring and all air conditioning apparatus situated in the Premises) which may be beyond repair with new ones which are similar in type and quality provided that the Tenant shall not be required by virtue of this clause 10.1 nor any other provision of this lease to put or keep the 

 

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Premises in any better state of repair decoration and condition than as is evidenced in the Schedule of Condition (fair wear and tear excepted).

 

10.2                        Damage by the Insured Risks

 

There shall be excepted from the obligations contained in clause 10.1 any damage caused by the Insured Risks (to the extent to which the Landlord covenants to insure the same under Clause 27.1) save to the extent that payment of the insurance monies shall be withheld by reason of any act neglect or default of the Tenant, any undertenant or occupier or any of their respective agents licensees visitors or contractors or any person under the control of any of them.

 

10.3                        Decorations

 

The Tenant shall:-

 

10.3.1                                      in the Decoration Year and also in the last three (3) months of the Term (whether determined by passage of time or otherwise) in a good and workmanlike manner prepare and decorate with at least two coats of good quality paint or otherwise treat, as appropriate, all parts of the Premises, such decorations and treatment in the last year of the Term to be executed in such colours and materials as the Landlord may reasonably require;

 

10.3.2                                      as often as may be reasonably necessary, wash down all tiles, glazed bricks and similar washable surfaces in the Premises.

 

10.4                        Cleaning

 

The Tenant shall:-

 

10.4.1                                      keep the Premises in a clean and tidy condition and employ only competent and respectable persons as cleaners;

 

10.4.2                                      at least once in every month properly clean the inside of the windows or window frames and all other glass in the Premises unless the Landlord in its 

 

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discretion arranges for the cleaning of the windows or window frames of the Premises itself.

 

11.                               YIELD UP

 

11.1                        Reinstatement of Premises

 

Immediately prior to the expiration or earlier determination of the Term, the Tenant shall at its cost:-

 

11.1.1                                      replace any of the landlord’s fixtures and fittings which shall be missing, damaged or destroyed, with new ones of similar kind and quality or (at the option of the Landlord) pay to the Landlord the reasonable cost of replacing any of them;

 

11.1.2                                      remove from the Premises any sign, writing or painting of the name or business of the Tenant or any occupier of them and all tenant’s fixtures, fittings, furniture and effects and make good, to the reasonable satisfaction of the Landlord all damage caused by such removal;

 

11.1.3                                      if so required by the Landlord, but not otherwise remove and make good any alterations or additions made to the Premises during the Term or during the terms of the Previous Leases (but not (to avoid doubt) any alterations or additions made to the Premises at any time prior to the commencement of the term of Previous Lease A), and well and substantially reinstate the Premises in such manner as the Landlord shall direct and to the Landlord’s reasonable satisfaction provided that the Landlord shall give at least 30 days prior notice to the Tenant prior to the expiry of the Term if it requires the Premises to be reinstated by the removal and making good of any such alterations or additions made to the Premises during the Term or the terms of the Previous Leases failing which the Tenant shall have no liability to the Landlord under this Clause provided that the Landlord and the Tenant acknowledge that the Layout Plan shows the current layout of the Premises and the Landlord and the Tenant agree that the Landlord shall not be entitled to require that the 

 

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Tenant removes and the Tenant shall not be obliged to remove prior to or at the expiry of the Term, any of the partitions nor the kitchen area in the Premises shown on the Layout Plan.

 

11.2                        Yielding up in good repair

 

At the expiration or earlier determination of the Term, the Tenant shall quietly yield up the Premises to the Landlord in such state of repair decoration and condition as is in accordance with the covenants by the Tenant contained in this Lease.

 

12.                               COMPLIANCE WITH NOTICES

 

12.1                        Tenant to remedy breaches of covenant

 

Whenever the Landlord shall give written notice to the Tenant of any defects, wants of repair or breaches of covenant, the Tenant shall, within sixty (60) days of such notice, or sooner if requisite, make good such defects or wants of repair and remedy the breach of covenant to the reasonable satisfaction of the Landlord.

 

12.2                        Failure of Tenant to repair

 

If the Tenant shall fail within fifteen (15) Working days of such notice, or as soon as reasonably possible in the case of emergency, to commence and then diligently and expeditiously to continue to comply with such notice, the Landlord may enter the Premises and carry out, or cause to be carried out, any of the works referred to in such notice and all costs and expenses incurred as a result shall be paid by the Tenant to the Landlord within 7 days of prior written demand, and in default of payment, shall be recoverable as rent in arrear.

 

13.                               ALTERATIONS

 

13.1                        No structural alterations

 

The Tenant shall not alter, cut into or remove any of the principal or load-bearing walls, floors, beams or columns in or enclosing the Premises.

 

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13.2                        No alterations to landlord’s fixtures

 

The Tenant shall not make any alteration or addition to any of the landlord’s fixtures which for the avoidance of doubt includes the door and glass screens at the entrance to the Premises or to any of the Conduits in the Premises.

 

13.3                        Non-structural alterations

 

The Tenant shall not make any alteration or addition of a non-structural nature to the Premises without the prior written consent of the Landlord (such consent not to be unreasonably withheld) save that for the avoidance of doubt alterations of any kind to the doors and glass screens in the Premises are absolutely prohibited.

 

13.4                        Demountable partitioning

 

The Tenant may install alter or remove demountable partitioning in the Premises without the prior written consent of the Landlord provided that the Landlord is notified in writing of any such alteration made by the Tenant and is provided with reasonable details of such alterations within 4 weeks following completion of the works.

 

13.5                        Covenants by Tenant

 

The Tenant shall enter into such covenants as the Landlord may reasonably require regarding the execution of any works to which the Landlord consents under this clause, and the reinstatement of the Premises at the end or earlier determination of the Term.

 

13.6                        Signage

 

The Tenant shall not erect or display on the exterior of the Premises or in the windows of them so as to be visible from the exterior any advertisement poster, notice, pole, flag, aerial, satellite dish or any other sign or thing without the prior written approval of the Landlord and subject always to the direction by the Landlord as to the position of any such sign.

 

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SECTION 5

 

USE

 

14.                               USE OF PREMISES

 

14.1                        Permitted use

 

The Tenant shall not use the Premises or any part of them except for the Permitted Use.

 

14.2                        Tenant not to leave Premises unoccupied

 

The Tenant shall not leave the Premises continuously unoccupied for more than thirty (30) days without notifying the Landlord and providing, or paying for such caretaking or security arrangements as the Landlord shall reasonably require in order to protect the Premises from vandalism, theft or unlawful occupation.

 

14.3                        Details of keyboarders

 

The Tenant shall ensure that, at all times, the Landlord has particulars of the name, home address and home telephone number of at least two keyholders of the Premises.

 

14.4                        Keys to be given to Landlord

 

The Tenant shall provide the Landlord with a set of keys to the Premises to enable the Landlord or its agents and others authorised by the Landlord to enter the Premises for security purposes or in cases of emergency.

 

15.                               USE RESTRICTIONS

 

The Tenant shall perform and observe the obligations set out in Schedule 3.

 

16.                               LANDLORD’S REGULATIONS

 

The Tenant shall comply with all reasonable regulations made by the Landlord from time to time and notified to the Tenant in writing for the general management and security of the Building the Common Parts and other areas used or to be used in common with others.

 

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17.                               EXCLUSION OF WARRANTY AS TO USER

 

17.1                        No warranty by Landlord

 

Nothing contained in this Lease, or in any consent or approval granted by the Landlord under this Lease, shall imply or warrant that the Premises may be used under the Planning Acts for the purpose permitted by this Lease or any purpose subsequently permitted.

 

17.2                        Tenant’s acknowledgement

 

The Tenant acknowledges that neither the Landlord nor any person acting on behalf of the Landlord has at any time made any representation or given any warranty that any use permitted by this Lease is, will be, or will remain, a use authorised under the Planning Acts.

 

17.3                        Tenant to remain bound

 

Even though any such use may not be a use authorised under the Planning Acts the Tenant shall remain fully liable to the Landlord in respect of the obligations undertaken by the Tenant in this Lease without being entitled to any compensation, recompense or relief of any kind.

 

SECTION 6

 

DISPOSALS

 

18.                               GENERAL RESTRICTIONS

 

18.1                        Alienation generally

 

The Tenant shall not assign, charge, underlet or part with possession or share the occupation of, or permit any person to occupy, or create any trust in respect of the Tenant’s interest in, the whole or any part of the Premises, except as may be expressly permitted by this clause and clauses 19 and 20.

 

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18.2                        Sharing with a Group Company

 

Nothing in this clause or clauses 19 and 20 shall prevent the Tenant from sharing occupation of the whole or any part of the Premises with any company which is for the time being, a Group Company of the Tenant subject to (a) the Tenant giving to the Landlord written notice of the sharing of occupation and the name of the Group Company concerned within ten (10) Working Days after the sharing begins (b) the Tenant and that Group Company remaining in the same relationship whilst the sharing lasts and (c) the sharing not creating the relationship of landlord and tenant between the Tenant and that Group Company.

 

19.                               ASSIGNMENT

 

19.1                        No Assignment of Part

 

The Tenant shall not assign any part or parts (as distinct from the whole) of the Premises.

 

19.2                        Circumstances in which consent to Assignment may be withheld

 

For the purposes of Section 19(1A) of the Landlord and Tenant Act 1927 it is agreed that the Landlord may withhold its consent to an assignment of the whole of the Premises in the following circumstances:-

 

19.2.1                                      Where the proposed assignee is not resident in, or in the case of a body corporate, is not incorporated in the United Kingdom.

 

19.2.2                                      Where the proposed assignee is a Group Company of the Tenant unless the Group Company procures a guarantee from a company of no lesser financial standing than GW Pharmaceuticals PLC as at the date hereof or from GW Pharmaceuticals PLC itself such guarantee to be in accordance with the guarantee provisions in Schedule 4.

 

19.2.3                                      Where the proposed assignee is any person or entity who has the right to claim sovereign or diplomatic immunity or exemption from liability from the covenants on the part of the Tenant contained in this Lease.

 

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19.2.4                                      If there are any material outstanding breaches of the Tenant’s obligations under this Lease at the date of the Tenant’s application for consent.

 

19.3                        Conditions for Landlord’s Consent

 

For the purposes of Section 19(1A) of the Landlord and Tenant Act 1927 it is further agreed that any consent of the Landlord to an assignment of the whole of the Premises may be subject:

 

19.3.1                                      If reasonably required by the Landlord a condition requiring the proposed assignee upon completion of the proposed assignment either:-

 

(a)                                 to deposit in such account as may be reasonably specified by the Landlord a sum equivalent to the annual rent payable for a period of six months or such longer period (up to a maximum of one year) that the Landlord reasonably requires from the date of completion of the proposed assignment and to deliver to the Landlord a duly executed Deed of Deposit in such form as the Landlord may reasonably require; or

 

(b)                                 to deliver to the Landlord a guarantee in favour of the Landlord by one of the English London Clearing Banks in a form first approved in writing by the Landlord (such approval not to be unreasonably withheld or delayed) covering the Rents reasonably estimated by the Landlord to be prospectively payable for a period of one year from the date of completion of the proposed assignment.

 

19.3.2                                      a condition that the Tenant shall, prior to the proposed assignment being completed, execute and deliver to the Landlord a deed which shall be prepared by the Landlord’s solicitors containing covenants on the part of the Tenant in the form of those contained in Schedule 7 (therein defined as the “Present Tenant”).

 

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19.4                        Assignment of the whole

 

Without prejudice to the provisions of Clauses 18 to 19.3 inclusive the Tenant shall not assign the whole of the Premises without the prior written consent of the Landlord any Superior Landlord and any mortgagee whose consent to an assignment of the Premises may be required by the Landlord or any Superior Landlord and except in relation to the circumstances mentioned in Clause 19.2 such consents shall not be unreasonably withheld or delayed. The parties agree that in considering whether or not the Landlord is reasonably withholding such consent due and proper regard shall be had to the provisions and effect of the Landlord and Tenant (Covenants) Act 1995.

 

20.                               UNDERLETTING

 

20.1                        Underletting of part

 

The Tenant shall not underlet part (as opposed to the whole) of the Premises.

 

20.2                        Underletting of the whole

 

The Tenant shall not underlet the whole of the Premises other than on condition that:-

 

20.2.1                                      if the Landlord shall reasonably so require, the Tenant obtains a reasonably acceptable guarantor for any proposed undertenant and such guarantor shall execute and deliver to the Landlord a deed containing reasonable covenants by that guarantor (or, if more than one, joint and several covenants) with the Landlord, as a primary obligation in the terms contained in Schedule 4 (with any reasonably necessary changes as are necessary and appropriate) or in such other terms as the Landlord may reasonably require; and

 

20.2.2                                      the tenancy created by the underlease is validly excluded from sections 24 to 28 of the Landlord and Tenant Act 1954.

 

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20.3                        Underletting rent

 

The Tenant shall not: underlet the whole of the Premises at a fine or premium or at a rent less than the open market rent of the Premises at the time of such underlease.

 

20.4                        Direct covenants from undertenant

 

Prior to any permitted underlease the Tenant shall procure that the undertenant enters into the following direct covenants with the Landlord:-

 

20.4.1                                      an unqualified covenant by the undertenant not to assign or charge any part of the premises to be underlet subject to clause 20.4.2 and 20.4.3;

 

20.4.2                                      an unqualified covenant by the undertenant not to underlet any part of the premises to be underlet nor (save by way of an assignment of the whole or an underlease of the whole of the premises to be underlet) part with possession or share the occupation of the whole or any part of the premises to be underlet or permit any person to occupy them;

 

20.4.3                                      a covenant by the undertenant not to assign, or charge or underlet the whole of the premises to be underlet without the prior written consent of the Landlord, such consent not to be unreasonably withheld or delayed;

 

20.4.4                                      a covenant by the undertenant to perform and observe all the tenant’s covenants contained in (a) this Lease (other than the payment of the Rents) and (b) the permitted underlease.

 

20.5                        Contents of underlease

 

Every permitted underlease (a final copy of which shall be supplied to, and approved by, the Landlord prior to its grant, such approval not to be unreasonably withheld or delayed) shall contain:-

 

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20.5.1                                      a covenant by the undertenant (which the Tenant covenants to enforce) prohibiting the undertenant from doing or suffering any act or thing on, or in relation to, the premises underlet inconsistent with, or in breach of, this Lease;

 

20.5.2                                      a condition for re-entry on breach of any covenant by the undertenant;

 

20.5.3                                      the same restrictions as to assignment, underletting, charging and parting with or sharing the possession or occupation of the premises underlet, and the same provisions for direct covenants and registration as are in this Lease (with any necessary changes).

 

20.6                        Tenant to obtain Landlord’s consent

 

Without prejudice to the other provisions of this clause, the Tenant shall not underlet the whole of the Premises without the prior written consent of the Landlord, such consent not to be unreasonably withheld or delayed.

 

20.7                        Tenant to enforce obligations

 

The Tenant shall enforce the performance and observance of the covenants by the undertenant contained in any permitted underlease and shall not, at any time, either expressly or by implication, waive any breach of them.

 

20.8                        No variation of terms

 

The Tenant shall not vary the terms, or accept any surrender, of any permitted underlease, without the prior written consent of the Landlord, such consent not to be unreasonably withheld or delayed.

 

20.9                        No reduction in rent

 

The Tenant shall procure that the rent payable under any permitted underlease is not commuted or made payable more than one quarter in advance, and shall not permit any reduction of that rent.

 

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21.                               REGISTRATION OF DISPOSITIONS

 

Within fifteen (15) Working Days of every assignment, transfer, assent, underlease, assignment of underlease, mortgage, charge or any other disposition, whether mediate or immediate, of or relating to the Premises, the Tenant shall provide the Landlord or its solicitors with a copy (certified as true) of the deed, instrument or other document evidencing or effecting such disposition and, on each occasion, shall pay to the Landlord or its solicitors a fee of fifty pounds (£50.00).

 

SECTION 7

 

LEGAL REQUIREMENTS

 

22.                               STATUTORY REQUIREMENTS

 

22.1                        Tenant to comply with statutes

 

The Tenant shall, at its expense, comply in all respects with every statute now in force or which may, after the date of this Lease, be in force and any other obligation imposed by law and all regulations laws or directives made or issued by or with the authority of The European Commission and/or The Council of Ministers relating to the Premises or their use, including (but without limitation) the Offices, Shops and Railway Premises Act 1963, the Fire Precautions Act 1971, the Defective Premises Act 1972, the Health and Safety at Work etc. Act 1974, the Environmental Protection Act 1990, the Water Resources Act 1991, the Environment Act 1995 and the Disability Discrimination Act 1995.

 

22.2                        Tenant to execute necessary works

 

The Tenant shall execute all works and provide and maintain all arrangements on or in respect of the Premises or their use which are required by any statute now in force or which may after the date of this Lease be in force or by any government department, local, public or other competent authority or court of competent jurisdiction acting under or in pursuance of any statute, and shall indemnify the Landlord against all costs, charges, fees and expenses arising directly from the execution of any works or the 

 

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provision or maintenance of any arrangements so required so long as such works are not the responsibility of the Landlord.

 

22.3                        Tenant to refrain from certain acts

 

The Tenant shall not do, or omit to be done, in or near the Premises, any act or thing by reason of which the Landlord may, under any statute, incur or have imposed upon it, or become liable to pay, any damages, compensation, costs, charges, expenses or penalty save that this clause shall not impose any liability on the Tenant in respect of acts which the Tenant is permitted to carry out under this Lease.

 

23.                               PLANNING ACTS

 

23.1                        Tenant’s obligation to comply

 

The Tenant shall comply with the Planning Acts and with any planning permission relating to, or affecting, the Premises, and indemnify the Landlord against all proper actions, proceedings, claims, demands, losses, costs, expenses, damages and liability arising directly from any non-compliance.

 

23.2                        Tenant to obtain all permissions

 

The Tenant shall, at its expense, obtain and, if appropriate, renew any planning permission and any other consent and serve all necessary notices required for the carrying out by the Tenant of any operations or the commencement or continuance of any use on the Premises.

 

23.3                        Tenant to pay planning charges

 

The Tenant shall pay and satisfy any charge or levy imposed under the Planning Acts in respect of any Development by the Tenant on the Premises.

 

23.4                        Tenant to carry out works before end of Term

 

Unless the Landlord shall otherwise reasonably direct in writing, the Tenant shall carry out and complete before the expiration or earlier determination of the Term:-

 

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23.4.1                                      any works required to be carried out to the Premises as a condition of any planning permission granted during the Term and implemented by the Tenant whether or not the date by which the planning permission requires such works to be carried out is within the Term; and

 

23.4.2                                      any Development begun upon the Premises in respect of which the Landlord may be or become liable for any charge or levy under the Planning Acts.

 

23.5                        Plans etc. to be produced

 

The Tenant shall produce to the Landlord within 10 days of prior written demand all plans, documents and other evidence as the Landlord may reasonably require in order to satisfy itself that this clause has been complied with.

 

24.                               STATUTORY NOTICES

 

24.1                        Notices Generally

 

The Tenant shall:-

 

24.1.1                                      within ten (10) Working Days (or sooner if necessary having regard to the requirements of the notice or order in question or the time limits stated in it) of receipt of any notice or order or proposal for a notice or order given to the Tenant and relevant to the Premises or any occupier of them by any government department, local, public or other competent authority or court of competent jurisdiction, provide the Landlord with a true copy of it;

 

24.1.2                                      without delay, take all necessary steps to comply with the notice or order so far as the same is the responsibility of the Tenant; and

 

24.1.3                                      at the request of the Landlord but at the cost of the Tenant, make or join with the Landlord in making such objection, complaint, representation or appeal against or in respect of any such notice, order or proposal as the Landlord shall deem expedient acting reasonably and in the interests of good estate management.

 

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24.2                        Party Wall etc. Act 1996

 

The Tenant shall:-

 

24.2.1                                      Forthwith after receipt by the Tenant of any notice served on the Tenant under the Party Wall etc. Act 1996 provide the Landlord with a true copy of it;

 

24.2.2                                      At the request of the Landlord but at the joint cost of the Landlord and the Tenant make or join with the Landlord in making such objection complaint representation and in serving such counter notice against or in respect of any such notice as the Landlord shall deem expedient acting reasonably and in the interests of good estate management;

 

24.2.3                                      At the request of the Landlord but at the joint cost of the Landlord and the Tenant make or join with the Landlord in serving any such notice on any adjoining owner under the Party Wall etc. Act 1996 as the Landlord may from time to time require.

 

25.                               FIRE PRECAUTIONS AND EQUIPMENT

 

25.1                        Compliance with requirements

 

The Tenant shall comply with the requirements and recommendations of the fire authority and the insurers of the Building and the reasonable requirements of the Landlord in relation to fire precautions affecting the Premises.

 

25.2                        Fire fighting appliances to be supplied

 

The Tenant shall keep the Premises equipped with such fire fighting appliances as shall be required by any statute, the fire authority or the insurers of the Building, or as shall be reasonably required by the Landlord (or, at the Tenant’s option, the Tenant shall pay to the Landlord within 14 days of prior written demand the cost of providing and installing any such appliances) and the Tenant shall keep such appliances open to inspection and maintained to the reasonable satisfaction of the Landlord.

 

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25.3                        Access to be kept clear

 

The Tenant shall not obstruct the access to, or means of working, any fire fighting appliances or the means of escape from the Premises or the Building in case of fire or other emergency.

 

26.                               DEFECTIVE PREMISES

 

Immediately upon becoming aware of the same, the Tenant shall give written notice to the Landlord of any defect in the Premises which might give rise to an obligation on the Landlord to do, or refrain from doing, any act or thing so as to comply with any duty of care imposed on the Landlord under the Defective Premises Act 1972, and shall display and maintain in the Premises all notices which the Landlord may, from time to time, reasonably require to be displayed in relation to any such matters.

 

SECTION 8

 

INSURANCE

 

27.                               INSURANCE PROVISIONS

 

27.1                        Landlord to insure

 

The Landlord shall insure and keep insured with some publicly quoted insurance company (or a subsidiary of a publicly quoted company) or with Lloyd’s underwriters and through such agency as the Landlord may, from time to time, determine, subject to such reasonable exclusions, excesses, limitations, terms and conditions as may be contained in any policy taken out by the Landlord:-

 

27.1.1                                      the Building (including plate glass) in its Full Reinstatement Cost against loss or damage by the Insured Risks;

 

27.1.2                                      the loss of the Principal Rent and the Service Charge from time to time payable, or reasonably estimated to be payable, under this Lease, for three (3) years or such longer period as the Landlord may, from time to time, 

 

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reasonably deem to be necessary, having regard to the likely period required for obtaining planning permission and reinstating the Building;

 

27.1.3                                      explosion or breakdown of any engineering and electrical plant and machinery in the Building to the extent that the same is not covered by clause 27.1.1;

 

27.1.4                                      property owner’s liability and such other insurances in respect of the Building as the Landlord may, from time to time, deem necessary to effect having due regard to the interests of good estate management.

 

27.2                        Full Reinstatement Cost

 

In this clause 27, “Full Reinstatement Cost” means the full cost of reinstating the Building at the time when such reinstatement is likely to take place, having regard to any possible increases in building costs, and including the cost of demolition, shoring up, site clearance, ancillary expenses and architects’, surveyors’ and other professional fees and any necessary Value Added Tax.

 

27.3                        Landlord’s fixtures

 

The Tenant shall notify the Landlord in writing of the full reinstatement cost of any fixtures and fittings installed at any time by the Tenant and which may become landlord’s fixtures and fittings for the purpose of enabling the Landlord to effect adequate insurance cover for them.

 

27.4                        Landlord to produce evidence of insurance

 

At the request of the Tenant, the Landlord shall produce to the Tenant reasonable evidence from the insurers of the terms of the insurance policy (or at the Tenant’s option, a copy of the policy) and the fact that the policy is subsisting and in effect and that the premium has been paid.

 

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27.5                        Damage to the Building

 

If the Building or any part of it shall be damaged or destroyed by any of the Insured Risks then:-

 

27.5.1                                      unless payment of the insurance monies shall be refused wholly or partly by reason of any act or default of the Tenant, any undertenant or occupier of any part of the Premises or any of their respective agents, licensees, visitors or contractors or any person under the control of any of them; and

 

27.5.2                                      subject to the Landlord being able to obtain any necessary planning permission and all other necessary licences, approvals and consents, which the Landlord shall use all reasonable endeavours to obtain but shall not be obliged to institute any appeals; and

 

27.5.3                                      subject to any necessary labour and materials being and remaining available, which the Landlord shall use reasonable endeavours to obtain as soon as practicable

 

the Landlord shall lay out the net proceeds of such insurance received by the Landlord in respect of such damage, (other than any in respect of loss of rent), in the reinstatement and rebuilding of the part of the Building so damaged or destroyed substantially as it was prior to any such damage or destruction (but not so as to provide accommodation identical in layout if it would not be reasonably practical to do so but if this is the case to ensure that such accommodation and layout does not increase the Tenant’s liability under this Lease and that it is fit for the Tenant’s use and business and as high class offices).

 

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27.6                        Where reinstatement is prevented

 

If, for any reason whatsoever, the Landlord is prevented from reinstating or rebuilding the Premises or the Building, having used all reasonable endeavours to obtain all planning permissions approvals and consents necessary for such purpose, and the Landlord continues to be prevented from reinstating or rebuilding for a period of three (3) years after the date of the damage or destruction, the Landlord shall thereupon be released from such obligation and shall be solely entitled to all the insurance monies. Unless this Lease has been terminated by frustration in the meantime, the Landlord or the Tenant may, at any time after the expiry of such period, determine this Lease by giving written notice to each other but such determination shall be without prejudice to any claim which the Landlord may have against the Tenant or any Guarantor or which the Tenant or the Guarantor may have against the Landlord for any previous breach of covenant or sum previously accrued due.

 

27.7                        Payment of insurance money refused

 

If payment of any insurance money is refused as a result of some act or default of the Tenant, any undertenant or occupier of any part of the Premises or any of their respective agents, licensees, visitors or contractors or any person under the control of any of them, the Tenant shall pay to the Landlord, within 7 days of written demand and with appropriate evidence of the reasons for such refusal, the amount so refused with interest on that amount at the Prescribed Rate from and including the date of such refusal to the date of payment by the Tenant.

 

27.8                        Suspension of rent payments

 

If the Premises or the Building or any part of them shall be damaged or destroyed by any of the Insured Risks so as to render the Premises unfit for use and occupation or inaccessible, the Principal Rent and the Service Charge, or a fair proportion of them according to the nature and extent of the damage sustained, shall not be payable until the Premises or the part damaged or destroyed shall be again rendered fit for business use by the Tenant as high class offices and occupation and accessible or until the expiration of 

 

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the loss of rent insurance (whichever is the earlier). Such suspension of rent shall be conditional upon the insurance not having been vitiated or payment of the policy monies refused wholly or partly as a result of some act or default of the Tenant, any undertenant or occupier of any part of the Premises or any of their respective agents licensees, visitors or contractors or any person under the control of any of them. Any dispute regarding the suspension of payment of the Principal Rent or the Service Charge shall be referred to a single arbitrator to be appointed, in default of agreement, upon the application of either party, by the President in accordance with the Arbitration Act 1996. If such rent suspension applies the Landlord shall make a proportionate reimbursement to the Tenant of any Principal Rent and Service Charge paid in advance for any period beyond the date of the relevant damage or destruction.

 

27.9                        Benefit of other insurances

 

If the Tenant shall become entitled to the benefit of any insurance covering any part of the Premises which is not effected or maintained in pursuance of the obligations contained in this Lease, the Tenant shall apply any money received from such insurance (in so far as it extends) in making good the loss or damage in respect of which it shall have been received.

 

27.10                 Insurance becoming void

 

The Tenant shall not do, or omit to do:-

 

27.10.1                               anything which causes any policy of insurance covering the Premises or the Building or any Adjoining Property owned by the Landlord to become wholly or partly void; or

 

27.10.2                               anything whereby any abnormal or loaded premium becomes payable in respect of the policy, unless the Tenant has previously notified the Landlord and agreed to pay the increased premium

 

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and, in any event, the Tenant shall pay to the Landlord written 7 days of written demand all reasonable expenses incurred by the Landlord in renewing any such policy such renewal to be on the terms of the Landlord’s obligations to insure under this Lease.

 

27.11                 Requirements of insurers

 

The Tenant shall, at all times, comply with any requirements and recommendations of the insurers of the Building so far as the same have previously been notified in writing to the Tenant and shall pay a fair proportion of the costs of all insurance valuations of the Building but so long as such insurance valuations do not occur more than once in any year.

 

27.12                 Notice by Tenant

 

The Tenant shall give notice to the Landlord immediately on the happening of any event or thing which might reasonably be expected by the Tenant to affect any insurance policy relating to the Premises or the Building.

 

SECTION 9

 

DEFAULT OF TENANT AND RIGHTS OF RE-ENTRY

 

28.                               DEFAULT OF TENANT

 

28.1                        Re-entry

 

Without prejudice to any other right, remedy or power contained in this Lease or otherwise available to the Landlord, on or at any time after the happening of any of the events mentioned in clause 28.2, the Landlord may re-enter the Premises or any part of them in the name of the whole, and the Term shall then end, but without prejudice to any claim which the Landlord may have against the Tenant or any Guarantor for any previous breach of covenant or sum previously accrued due.

 

28.2                        Events of default

 

The events referred to in clause 28.1 are the following:-

 

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28.2.1                                      if the Rents or any part of them shall be unpaid for ten (10) Working Days after becoming payable (whether formally demanded or not); or

 

28.2.2                                      if any of the covenants by the Tenant contained in this Lease shall not be materially performed and observed; or

 

28.2.3                                      if the Tenant, for the time being, and/or the Guarantor (if any) (being a body corporate):-

 

(a)                                 calls, or a nominee on its behalf calls, a meeting of any of its creditors; or makes an application to the Court under Section 425 of the Companies Act 1985; or submits to any of its creditors a proposal under Part I of the Insolvency Act 1986; or enters into any arrangement, scheme, compromise, moratorium or composition with any of its creditors (whether under Part I of the Insolvency Act 1986 or otherwise); or

 

(b)                                 has an administrative receiver or a receiver or a receiver and manager appointed in respect of the Tenant’s or the Guarantor’s property or assets or any part; or

 

(c)                                  an administration order is made in respect of the Tenant or the Guarantor (as the case may be); or an administrator is appointed; or

 

(d)                                 an administration order is presented against it; or is wound up pursuant to a winding-up resolution; or has a liquidator or provisional liquidator appointed; or

 

(e)                                  shall cease for any reason to maintain its corporate existence; or is struck off the register or companies; or otherwise ceases to exist; or

 

28.2.4                                      if the Tenant, for the time being, and/or the Guarantor (if any) (being an individual, or if more than one individual, then any one of them) obtains an 

 

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                                                                        interim order under Part VIII of the Insolvency Act 1986; or enters into any arrangement, scheme, compromise, moratorium or composition with, any of his creditors (whether under Part VIII of the Insolvency Act 1986 or otherwise); or has a bankruptcy petition presented against him or is adjudged bankrupt (whether in England or elsewhere); or has a receiver appointed in respect of the Tenant’s or the Guarantor’s property or assets or any part; or

 

28.2.5                                      if analogous proceedings or events to those referred to in this clause shall be instituted or occur in relation to the Tenant, for the time being, and/or the Guarantor (if any) elsewhere than in the United Kingdom; or

 

28.2.6                                      if the Tenant, for the time being, and/or the Guarantor (if any) suffers any distress or execution to be legally levied on the Premises which is not discharged in full within twenty one (21) days after the levy has been made.

 

SECTION 10

 

LANDLORD’S SERVICES AND SERVICE CHARGE

 

29.                               LANDLORD’S SERVICES

 

29.1                        Provision of Services

 

The Landlord covenants with the Tenant that it shall use all reasonable endeavours to provide the following services in accordance with the principles of good estate management:-

 

29.1.1                                      Repairs

 

So far as may be necessary for the use and enjoyment by the Tenant of the Premises and the Building, to keep the Retained Parts in good repair and condition;

 

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29.1.2                                      Common Parts

 

To keep clean and maintained in a proper manner the Common Parts, including their windows, and any lavatories of which the Tenant has the use, and, where appropriate, to keep them adequately lighted;

 

29.1.3                                      Lift

 

To provide a lift service by the operation of the lift now installed in the Building or by such substituted lifts as the Landlord may, in its discretion, from time to time install;

 

29.1.4                                      Hot and cold water

 

To provide an adequate supply of hot water and cold water to the wash basins in any lavatory of which the Tenant has the use;

 

29.1.5                                      Heating

 

To provide to the Premises and the Common Parts heating to such temperature as the Landlord may from time to time consider adequate and for such periods of the year as the Landlord may consider desirable;

 

29.1.6                                      Air Conditioning

 

To provide air conditioning to the Premises to such standard as the air conditioning system was designed to achieve;

 

29.1.7                                      Staff

 

To employ such staff as the Landlord may, in its discretion, deem desirable or necessary to enable it to provide any of the services in the Building and for its general management and security;

 

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29.1.8                                      Name Boards

 

To provide name boards of such size and design as the Landlord may, in its discretion, determine in the main entrance to the Building and at such other locations as the Landlord may consider desirable;

 

29.1.9                                      Open Areas

 

To repair and maintain those parts of the Building which are not built on, and keep them clear of all rubbish and free from weeds, and, at the Landlord’s discretion, to provide and maintain such plants, shrubs, trees or garden or grassed areas as may be appropriate, and to keep them planted, free from weeds and the grass cut.

 

29.2                Appointment of agents

 

In performing its obligations under this clause, the Landlord shall be entitled to employ such agents, contractors or other persons as it may think fit, having due regard to the interests of the occupiers in the Building and so long as such personnel are employed by the Landlord at arms length at commercially standard rates and to delegate its duties and powers to them and their proper fees and expenses shall form part of the Expenditure (as defined in clause 30).

 

29.3                        Variation of services

 

The Landlord may, at its discretion, add to, extend, vary or withhold from time to time any of the services refereed to in this clause if the Landlord shall reasonably consider it desirable to do so for the more efficient management, operation or security of the Building, or for the comfort of the tenants in the Building provided that the Tenant’s use and enjoyment of the Premises shall not be prejudiced.

 

29.4                        Failure by Landlord to provide services

 

The Landlord shall not be liable to the Tenant in respect of any failure by the Landlord to perform any of the services referred to in this clause unless the Tenant has given to the

 

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Landlord written notice of the failure in question and the Landlord has failed within a reasonable time to remedy it.

 

29.5                        Exclusion of Landlord’s liability

 

The Landlord shall not incur any liability for any failure or interruption in any of the services to be provided by the Landlord or for any inconvenience or injury to person or property arising from that failure or interruption, in either case due to any maintenance, servicing, repair, replacement, mechanical breakdown, failure, malfunction, shortages, labour disputes or any cause or circumstance beyond the control of the Landlord, but the Landlord shall use all reasonable endeavours to cause the service in question to be reinstated with the minimum of delay.

 

30.                               SERVICE CHARGE

 

30.1                        Definitions

 

In this Lease:-

 

30.1.1                                      “Advance Payment”  means the Service Charge Percentage of the Estimated Expenditure;

 

30.1.2                                      “Estimated Expenditure”  means, for any Financial Year during the Term, such sum as the Landlord may, from time to time, specify as being a fair and reasonable estimate of the Expenditure for the current Financial Year based on a budget prepared by the Landlord and submitted to the Tenant, and includes, for the Financial Year in question, any revised budget of the Landlord’s estimate of the Expenditure for that Financial Year;

 

30.1.3                                      “Expenditure” means:-

 

(a)                                 the aggregate of all costs, expenses and outgoings whatsoever incurred by the Landlord in complying with its covenants under clause 29 and in respect of the items set out in Schedule 5,  whether the Landlord is obliged by this Lease to incur them or not; and

 

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(b)                                 such sums or provision as the Landlord may, in its discretion and having regard to the interests of the Tenant in the Building and the principles of good estate management, consider desirable to set aside from time to time for the purpose of providing for periodically recurring items of expenditure, whether recurring at regular or irregular intervals or for anticipated expenditure in respect of any of the services to be provided by the Landlord or any of the items set out in Schedule 5 provided that the Tenant shall not be liable for such terms or provision by the Landlord which is requested during the last 12 months of the Term;

 

30.1.4                                      “Financial Year”  means the period from 1 January in every year to 31 December of that year, or such other period as the Landlord may, in its discretion, from time to time determine;

 

30.1.5                                      “Service Charge”  means the Service Charge Percentage of the Expenditure;

 

30.1.6                                      “Service Charge Percentage”  means that proportion of the Expenditure which the Net Internal Area of the Premises bears to the aggregate of the Net Internal Area of the Lettable Areas (subject to adjustment under this clause);

 

30.1.7                                      “Service Charge Commencement Date”  means 1 October 2010;

 

30.2                        Preparation of Expenditure Account

 

The Landlord shall, as soon as reasonably practicable after the end of each Financial Year, prepare an account showing the Expenditure for that Financial Year and containing a fair summary of the various items comprising the Expenditure, and on such account being certified by the Surveyor and a copy of it supplied to the Tenant, it shall be conclusive evidence, for the purposes of this Lease, of all matters of fact referred to in the account save in the case of manifest error.

 

30.3                Advance Payment

 

The Tenant shall pay to the Landlord on account of the Service Charge:-

 

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30.3.1                                      for the period beginning on the Service Charge Commencement Date to the end of the Financial Year current at the date of this Lease the Advance Payment for that Financial Year; and

 

30.3.2                                      for each Financial Year following that current at the date of this Lease the Advance Payment,

 

all such payments to be made by equal quarterly payments in advance on the same dates as the Principal Rent is payable and to be subject to adjustment if the Estimated Expenditure is revised as contemplated by its definition, the first instalment, being a proportion of the Advance Payment for the period beginning on the Service Charge Commencement Date and ending on the day before the quarter day following the Service Charge Commencement Date, to be made on the Service Charge Commencement Date.

 

30.4                        Balancing payment

 

If the Service Charge for any Financial Year:-

 

30.4.1                                      shall exceed the Advance Payment for that Financial Year, the excess shall be paid by the Tenant to the Landlord within 7 days of written demand; or

 

30.4.2                                      shall be less than the Advance Payment for that Financial Year, the overpayment shall be credited to the Tenant against the next quarterly payment of the Service Charge, or, if there is none, refunded to the Tenant without delay.

 

30.5                        Omissions

 

Any omission by the Landlord to include in the account of the Expenditure in any Financial Year a sum expended or a liability incurred in that Financial Year shall not preclude the Landlord from including that sum or the amount of that liability in any subsequent Financial Year as the Landlord shall determine.

 

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30.6                        Alteration of Service Charge Percentage

 

If, at any time during the Term, the Net Internal Area of the Lettable Areas shall change or any other circumstances shall arise which make the calculation of the Service Charge Percentage (whether or not relating to individual items of Expenditure) unreasonable or inequitable, the Landlord shall be entitled to alter the Service Charge Percentage to such other percentage as is fair and reasonable in the circumstances.

 

30.7                        Continuing application of provisions

 

This clause shall continue to apply notwithstanding the expiration or earlier determination of the Term but only in respect of the period down to such expiration or earlier determination, the Service Charge for that Financial Year for that period being apportioned on a daily basis.

 

SECTION 11

 

SUPERIOR LEASE

 

31.                               OBLIGATIONS AND CONSENTS UNDER SUPERIOR LEASE

 

31.1                        Obligations by Tenant

 

The Tenant shall perform and observe the tenant’s covenants in the Superior Lease (other than the covenant to pay rents) so far as any of them relate to the Premises are still subsisting and capable of taking effect but not any tenant’s covenant which is expressly assumed by the Landlord under this Lease.

 

31.2                        Obligations by Landlord

 

The Landlord shall pay the rents reserved by the Superior Lease and perform and observe the tenant’s covenants contained in the Superior Lease to the extent that the Superior Landlord requires any such covenant to be performed or that the Landlord is liable to perform them but excluding any tenant’s covenants which are to be performed and observed by the Tenant under this Lease and shall indemnify the Tenant against any 

 

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costs, expenses, loss, claims, action whatsoever arising from the Landlord’s failure to comply with this covenant.

 

31.3                        Obligations by Superior Landlord

 

At the written request and at the cost of the Tenant, the Landlord shall use best endeavours to enforce the performance and observance of any covenant by the Superior Landlord in the Superior Lease so far as it relates to the Premises.

 

31.4                        Consents under Superior Lease

 

Where the Tenant applies to the Landlord for any consent in respect of any matter mentioned in this Lease and, under the Superior Lease, the consent of the Superior Landlord is also required in respect of that matter then, at the written request and at the cost of the Tenant, the Landlord shall use reasonable endeavours to obtain the consent of the Superior Landlord but only in those cases where the Landlord is willing to give its consent or where the Landlord’s consent is not to be unreasonably withheld.

 

SECTION 12

 

MISCELLANEOUS

 

32.                               QUIET ENJOYMENT

 

The Landlord covenants with the Tenant that the Tenant, paying the Rents and performing and observing the covenants on the part of the Tenant contained in this Lease, shall and may peaceably hold and enjoy the Premises during the Term without any interruption by the Landlord or any person lawfully claiming through, under, or in trust for it.

 

33.                               EXCLUSION OF IMPLIED COVENANTS BY LANDLORD

 

Any covenants on the part of the Landlord which would otherwise be implied by law are hereby expressly excluded.

 

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34.                               RELETTING NOTICES

 

The Tenant shall permit the Landlord, at all reasonable times during the last six (6) months of the Term, to enter the Premises and affix and retain, without interference, on any suitable parts of them (but not so as materially to affect the access of light or air to the Premises) notices for reletting them and the Tenant shall not remove or obscure such notices and shall permit all persons with the written authority of the Landlord to view the Premises at all reasonable hours in the daytime, upon prior appointment having been made.

 

35.                               DISCLOSURE OF INFORMATION

 

Upon written request by the Landlord from time to time, the Tenant shall supply full particulars of all occupations and derivative interests in the Premises, however remote or inferior.

 

36.                              INDEMNITY

 

The Tenant shall keep the Landlord fully indemnified from and against all actions, proceedings, claims, demands, losses, costs, expenses, damages and liability arising in any way directly or indirectly out of:-

 

36.1                        any act, omission, neglect or default of the Tenant or any persons in the Premises expressly or impliedly with the Tenant’s authority; or

 

36.2                        any breach of any covenant by the Tenant contained in this Lease.

 

37.                               REPRESENTATIONS

 

The Tenant acknowledges that this Lease has not been entered into in reliance, wholly or partly, on any statement or representation made by, or on behalf of, the Landlord, except any such statement or representation that is expressly set out in this Lease and replies to enquiries given by the Landlord or its solicitors or agents to the Tenant and its solicitors and agents.

 

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38.                               EFFECT OF WAIVER

 

Each covenant by the Tenant shall remain in full force even though the Landlord may have waived or released it temporarily or waived or released (temporarily or permanently, revocably or irrevocably) a similar covenant affecting other property belonging to the Landlord.

 

39.                               NOTICES

 

39.1                        Notices to Tenant or Guarantor

 

Any demand or notice required to be made, given to, or served on, the Tenant or the Guarantor (if any) under this Lease shall be duly and validly made, given or served if addressed to the Tenant or the Guarantor respectively (and, if there shall be more than one of them, then any one of them) and delivered personally, or sent by pre-paid registered or recorded delivery mail, or sent by fax (but not e-mail) addressed (in the case of a company) to its registered office, or (whether a company or individual) its last known address, or (in the case of a notice to the Tenant) the Premises.

 

39.2                        Notices to Landlord

 

Any notice required to be given to, or served on, the Landlord shall be duly and validly given or served if sent by pre-paid registered or recorded delivery mail, or sent by fax addressed to the Landlord at its registered office.

 

40.                              TENANT’S OPTION TO DETERMINE

 

40.1                        Subject to all the provisions of this clause 40 the Tenant may determine this Lease on the third anniversary of the Term Commencement Date being 1 October 2013 (the “Determination Date”) by serving on the Landlord not less than six months prior notice in writing.

 

40.2                        This Lease shall only determine as a result of notice served by the Tenant under clause 40.1 if:

 

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40.2.1                                      on the Determination Date the Tenant delivers up the Premises free from occupation by any sub-tenant; and

 

40.2.2                                      the Tenant has no outstanding payments of Principal Rent due and demanded under this Lease as at the Determination Date provided that any such demand of the Tenant must be made in writing and notified to the Tenant at least 30 days prior to the Determination Date or, if the Tenant requests details of the Principal Rent due on the Determination Date, provided that the Landlord notifies the Tenant in writing of such sums due within 14 days of written demand for details and, if the Landlord fails to do so in either case, the condition in this clause 40.2.2 shall be deemed not to apply to this clause 40.

 

40.3                        If the Tenant shall have complied with the provisions of this clause 40 then on the Determination Date this Lease shall determine but without prejudice to any right of action of the Landlord in respect of any previous breach by the Tenant and vice versa of this Lease.

 

40.4                        If any Principal Rent has been paid by the Tenant in relation to the period falling after the Determination Date, the Principal Rent shall be refunded by the Landlord to the Tenant within 10 days after the Determination Date and the Principal Rent to be refunded shall be the amount calculated at the Determination Date in accordance with the following formula:

 

	
A
    	
  x B
    
	
365
    

 

Where:

 

A =                             the full annual amount of the Principal Rent; and

 

B =                             the number of days from but excluding the Determination Date up to but excluding the first date after the Determination Date upon which an instalment of the Principal Rent would have been due under the Lease but for the determination pursuant to this Clause 40.

 

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40.5                        If any Insurance Rent has been paid by the Tenant in relation to the period falling after the Determination Date, the Insurance Rent shall be refunded by the Landlord to the Tenant within 10 days after the Determination Date and the Insurance Rent to be refunded shall be the amount calculated at the Determination Date in accordance with the following formula:

 

	
A
    	
  x B
    
	
365
    

 

Where:

 

A =                             the full annual amount of the Insurance Rent; and

 

B =                             the number of days from but excluding the Determination Date up to but excluding the date specified in the then current cover note as the date on which the relevant policy or policies of insurance expire.

 

40.6                        Time is of the essence in respect of this clause 40.

 

41.                               EXCLUSION OF LANDLORD AND TENANT ACT 1954

 

The parties confirm that:

 

41.1                        The Landlord served a notice on the Tenant as required by Section 38(A((3)(a) of the Landlord & Tenant Act 1954 (“the 1954 Act”) and which applies to the tenancy created by this Lease before this Lease was entered into; and

 

41.2                        Anita Coys Jones who was duly authorized by the Tenant to do so made a statutory declaration dated 9 August 2010 in accordance with the requirements of Section 38(A)(3)(b) of the 1954 Act.

 

The parties to this Lease agree that the provisions of Sections 24 to 28 of the 1954 Act are excluded in relation to the tenancy created by this Lease.

 

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42.                               GUARANTOR’S COVENANTS

 

In consideration of this Lease having been granted at its request, the Guarantor covenants in the terms contained in Schedule 4.

 

43.                              NEW TENANCY

 

This Lease constitutes a new tenancy for the purposes of the Landlord and Tenant (Covenants) Act 1995.

 

44.                               INVALIDITY OF CERTAIN PROVISIONS

 

If any term of this Lease or the application thereof to any person or circumstances shall to any extent be invalid or unenforceable the same shall be severable and the remainder of this Lease or the application of such term to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby and each term and provision of this Lease shall be valid and be enforced to the fullest extent permitted by law.

 

45.                               THIRD PARTY RIGHTS

 

A person who is not a party to this Lease has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Lease but this does not affect any right or remedy of a third party which exists or is available apart from that Act.

 

46.                               PREVIOUS LEASE B

 

If Previous Lease B determines for any reason before I October 2010 this Lease will automatically cease and be void unless in the case of forfeiture of the Previous Lease B, relief from forfeiture is sought and obtained in respect of the Previous Lease B.

 

47.                               WARRANTED RISK

 

47.1                        The Landlord covenants, at the Tenant’s written request to use all reasonable endeavours to obtain payment from all relevant Warrantors for the cost of rectification or repair of the Building attributable to the Warranted Risks provided that the Tenant shall have 

 

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                                                provided to the Landlord an indemnity satisfactory to the Landlord (acting reasonably) in respect of all proper costs, losses and expenses incurred by the Landlord in any such actions, including (but not limited to) all reasonable and professional costs and the reasonable costs of the Landlord’s managing agent.

 

47.2                        The Landlord hereby agrees to indemnify the Tenant against the costs, as referred to in the definition of Warranted Risk and incurred by the Tenant provided that the liability of the Landlord to the Tenant under this Clause 47.2 shall be limited to the sums actually recovered by the Landlord from the relevant Warrantors pursuant to action taken under Clause 47.1.

 

IN WITNESS whereof this Deed has been executed by the parties and is intended to be and is hereby delivered on the date first written above.

 

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SCHEDULE 1

 

Rights And Easements Granted

 

1.                                      Subject to any temporary interruption for repairs, alterations or replacements, the right for the Tenant and all persons expressly or by implication authorised by the Tenant (in common with the Landlord and all persons having a similar right):-

 

1.1                               to use such of the Common Parts as shall be designated from time to time for use by the Tenant for all proper purposes in connection with the use and enjoyment of the Premises;

 

1.2                               to use such of the passenger lifts and stairwells and staircases in the Building as shall be designated from time to time for use by the Tenant for the purpose only of obtaining access to and egress from the Premises;

 

1.3                               to use such of the lavatories and the kitchens in the Building as shall be designated from time to time for use by the Tenant;

 

2.                                      Subject to any temporary interruption for repairs, alterations or replacements, the right to the passage of any of the Utilities to and from the Premises through any relevant Conduits which are now or (within a period of 80 years after the date of this Lease) may be in, under, or over any other part of the Building, in each case so far as any of the same are necessary for the reasonable use and enjoyment of the Premises;

 

3.                                      The right of support and protection from all other parts of the Building as is now enjoyed by the Premises;

 

4.                                      The right for the Tenant and any other permitted occupier of any part of the Premises to have displayed on any name board provided by the Landlord in the main entrance to the Building the name and location within the Building of the offices of the Tenant and that occupier in such style as the Landlord in its absolute discretion permits;

 

5.                                      The right, in emergencies or during fire drills, to enter and use other parts of the Building designated by the Landlord as a means of escape

 

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SCHEDULE 2

 

Exceptions and Reservations

 

1.                                      There are excepted and reserved to the Landlord and the tenants and occupiers of the Building and any Adjoining Property and all other persons authorised by the Landlord or having similar rights:-

 

1.1                               the right to the passage and running of the Utilities through any relevant Conduits which are now, or may at any time be in, under, or over the Premises;

 

1.2                               the right to enter the Premises in order to:-

 

1.2.1                     inspect, clean, maintain, repair, connect, remove, lay, renew, relay, replace, alter or execute any works whatsoever to, or in connection with the flooring and air conditioning situated in the Premises and any of the Conduits or any other services;

 

1.2.2                     execute repairs, decorations, alterations or any other works, and to make installations to, the Premises, the Building or to any Adjoining Property;

 

1.2.3                     access any plant/machinery contained in the Building including risers; or

 

1.2.4                     do anything which the Landlord is enfitled to do under this Lease;

 

1.3                               the right to erect scaffolding for the purpose of repairing or cleaning the Building or any building now, or after the date of this Lease, erected on any Adjoining Property, or in connection with the exercise of any of the rights mentioned in this Schedule even though such scaffolding may temporarily restrict the access to, or enjoyment or use of, the Premises;

 

1.4                               any rights of light, air, support, protection and shelter or other easements and rights now, or after the date of this Lease, belonging to, or enjoyed by, other parts of the Building or any Adjoining Property;

 

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1.5                               full right and liberty at any time after the date of this Lease to raise the height of (Provided That under this clause the Landlord shall not have the ability to create new floors of the Building above the Premises), or make any alterations or additions or execute any other works to, the Building or any buildings on any Adjoining Property, or to erect any new buildings of any height on any Adjoining Property in such manner as the Landlord or the person exercising the right shall think fit and even though they may obstruct., affect or interfere with the amenity of, or access to, the Premises or the passage of light and air to the Premises, but not so that the Tenant’s use and occupation of them is materially affected Provided Always That in carrying out any such works the Landlord shall use all reasonable endeavours to cause minimum disruption to the Tenant’s use and occupation of the Premises;

 

1.6                               the right, in emergencies or during fire drills, to enter the Premises and use any designated escape route;

 

2.                                      Any rights or easements excepted and reserved in paragraph 1 over anything which is not in being at the date of this Lease shall be effective only in relation to any such thing which comes into being before the expiry of eighty (80) years from today, which shall be the perpetuity period applicable to this Lease.

 

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SCHEDULE 3

 

Use Restrictions

 

1.                                      Dangerous materials and use of machinery

 

The Tenant shall not:-

 

1.1                               bring into the Building or keep in the Premises any article or thing which is or may become combustible, dangerous, explosive, inflammable, offensive or radio-active, or which might increase the risk of fire or explosion other than reasonable quantities of oil required for the operation of any boiler, plant, machinery, equipment and apparatus which shall be stored in accordance with the requirements of any statute affecting the Premises and of any insurer of them;

 

1.2                               keep or operate in the Premises any machinery which is unduly noisy or causes vibration, or which is likely to annoy any other tenant or occupier of the Building.

 

2.                                      Overloading floors and services

 

The Tenant shall not:-

 

2.1                               overload the floors of the Premises or the Building nor suspend any excessive weight from any ceiling, roof, stanchion, structure or wall of the Building nor overload any Utility in or serving it;

 

2.2                               do anything which may subject the Premises or the Building to any strain beyond that which they are designed to bear (with due margin for safety), and shall pay to the Landlord, within 14 days of written demand, any expense reasonably incurred by the Landlord in obtaining the opinion of a qualified structural engineer as to whether the structure of the Premises or the Building is being, or is about to be, overloaded;

 

2.3                               exceed the weight limits prescribed for any lift in the Building.

 

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3.                                      Discharges into Conduits

 

The Tenant shall not discharge into any Conduit any oil or grease or any noxious or deleterious effluent or substance which may cause an obstruction or might be or become a source of danger, or which might damage any Conduit or the drainage system of the Building or any Adjoining Property.

 

4.                                      Disposal of refuse

 

The Tenant shall not deposit in the Common Parts any refuse, rubbish or trade empties of any kind other than in proper receptacles and as may be designated by the Landlord, and shall not burn any refuse or rubbish on the Premises.

 

5.                                      Obstruction of Common Parts

 

The Tenant shall not do anything as a result of which the Common Parts or other area over which the Tenant may have rights of access or use may be damaged, or their fair use by others may be obstructed in any way and shall not park any vehicle on any road or open area forming part of the Building.

 

6.                                      Prohibited uses

 

The Tenant shall not use the Premises for any public or political meeting, or public  exhibition or public entertainment, show or spectacle; or for any dangerous, noisy, noxious or offensive business, occupation or trade; or for any illegal or immoral purpose; or for residential or sleeping purposes; or for betting, gambling, gaining or wagering; or as a betting office; or as a club; or for the sale of any beer, wines or spirits; or for any auction.

 

7.                                      Nuisance

 

The Tenant shall not:-

 

7.1                               do anything in the Premises or the Building which may be or become a nuisance, or causes annoyance, damage or disturbance to, the Landlord or any other tenant or occupier 

 

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                                                in the Building or any owner or occupier of any Adjoining Property, or which may be injurious to the amenity, character, tone or value of the Building;

 

7.2                               play any musical instrument, or use any loudspeaker, radio, tape recorder, record or compact disc player or similar apparatus in such a manner as to be audible outside the Premises;

 

7.3                               place outside the Premises or in the Common Parts or expose from any window of the Premises any articles, goods or things of any kind save for any office furnishings, blinds or curtains.

 

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SCHEDULE 4

 

Covenants by Guarantor

 

1.                                      Covenant and indemnity by Guarantor

 

The Guarantor:-

 

1.1                               covenants with the Landlord, as a primary obligation, that the Present Tenant or the Guarantor shall duly perform and observe all the covenants on the part of the Tenant contained in this Lease, including the payment of the Rents and all other sums payable under this Lease in the manner and at the times specified in this Lease; and

 

1.2                               indemnifies, as a primary obligation, the Landlord against all proper claims, demands, losses, damages, liability, costs, fees and expenses whatsoever sustained by the Landlord by reason of or arising directly out of any default by the Present Tenant in the performance and observance of any of its obligations or the payment of any rent and other sums.

 

2.                                      Guarantor’s liability

 

The Guarantor further covenants with the Landlord, as a primary obligation, that the Guarantor shall be liable (whether before or after any disclaimer by a liquidator or trustee in bankruptcy) for the fulfillment of all the obligations of the Present Tenant under this Lease and agrees that the Landlord, in the enforcement of its rights under this Lease, may proceed against the Guarantor as if the Guarantor was named as the Tenant in this Lease.

 

3.                                      Waiver by Guarantor

 

The Guarantor waives any right to require the Landlord to proceed against the Present Tenant or to pursue any other remedy whatsoever which may be available to the Landlord before proceeding against the Guarantor.

 

4.                                     Postponement of claims by Guarantor against Tenant

 

The Guarantor further covenants with the Landlord that the Guarantor shall:-

 

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4.1                               not claim in any liquidation, bankruptcy, composition or arrangement of the Present Tenant in competition with the Landlord and shall remit to the Landlord the proceeds of all judgments and all distributions it may receive from any liquidator, trustee in bankruptcy or supervisor of the Present Tenant;

 

4.2                               hold for the benefit of the Landlord all security and rights the Guarantor may have over assets of the Present Tenant whilst any liabilities of the Present Tenant or the Guarantor to the Landlord remain outstanding; and

 

4.3                               not exercise any right or remedy in respect of any amount paid or any liability incurred by the Guarantor in performing or discharging its obligations contained in this Schedule, or claim any contribution from any other guarantor.

 

5.                                      Postponement of participation by Guarantor in security

 

The Guarantor shall not be entitled to participate in any security held by the Landlord in respect of the Tenant’s obligations to the Landlord under this Lease or to stand in the place of the Landlord in respect of any such security until all the obligations of the Present Tenant or the Guarantor to the Landlord under this Lease have been performed or discharged.

 

6.                                      No release of Guarantor

 

None of the following, or any combination of them, shall release, determine, discharge or in any way lessen or affect the liability of the Guarantor as principal obligor under this Lease or otherwise prejudice or affect the right of the Landlord to recover from the Guarantor to the full extent of this guarantee:-

 

6.1                               any neglect, delay or forbearance of the Landlord in endeavouring to obtain payment of the Rents or the amounts required to be paid by the Tenant or in enforcing the performance or observance of any of the obligations of the Tenant under this Lease;

 

6.2                               any refusal by the Landlord to accept rent tendered by or on behalf of the Tenant at a time when the Landlord was entitled (or would after the service of a notice under Section 146 of the Law of Property Act 1925 have been entitled) to re-enter the Premises;

 

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6.3                               any extension of time given by the Landlord to the Tenant;

 

6.4                               any variation of the terms of this Lease or the transfer of the Landlord’s reversion or the assignment of this Lease save where any such variation or transfer increases the Guarantor’s liability from the liabilities currently provided for in this Lease;

 

6.5                               any change in the constitution, structure or powers of either the Tenant, the Guarantor or the Landlord or the liquidation, administration or bankruptcy (as the case may be) of either the Tenant or the Guarantor;

 

6.6                               any legal limitation, or any immunity, disability or incapacity of the Tenant (whether or not known to the Landlord) or the fact that any dealings with the Landlord by the Tenant may be outside, or in excess of, the powers of the Tenant;

 

6.7                               any other act, omission, matter or thing whatsoever as a result of which, but for this provision, the Guarantor would be exonerated either wholly or partly (other than a release executed and delivered as a deed by the Landlord).

 

7.                                      Disclaimer of Lease

 

The Guarantor further covenants with the Landlord that:-

 

7.1                               if a liquidator or trustee in bankruptcy shall disclaim or surrender this Lease; or

 

7.2                               if the Present Tenant shall cease to exist

 

the Guarantor shall, if the Landlord by notice in writing given to the Guarantor within six (6) months after such disclaimer or other event so requires accept from, and execute and deliver to, the Landlord a counterpart of a new lease of the Premises for a term commencing on the date of the disclaimer or other event and continuing for the residue then remaining unexpired of the Term, such new lease to be at the reasonable cost of the Guarantor and to be at the same Rents and subject to the same covenants and provisions as are contained in this Lease.

 

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8.                                      Guarantor to pay sum equal to rents

 

If the Landlord shall not require the Guarantor to take a new lease pursuant to paragraph 7, the Guarantor shall nevertheless within 7 days of prior written demand pay to the Landlord a sum equal to the Rents and other sums that would have been payable under this Lease but for the disclaimer or other event in respect of the period from and including the date of such disclaimer or other event until the expiration of six (6) months from such date or until the Landlord shall have granted a lease of the Premises to a third party (whichever shall occur first).

 

9.                                      Benefit of guarantee

 

This guarantee shall enure for the benefit of the successors and assigns of the Landlord under this Lease without the necessity for any assignment.

 

10.                               Guarantor to join in Authorised Guarantee Agreement

 

The Guarantor covenants with the Landlord, and as a separate covenant with the Present Tenant, that the Guarantor will join in, and execute and deliver to the Landlord, any deed which the Present Tenant is required to execute and deliver to the Landlord pursuant to clause 19.3.2, so as to give the covenants on the part of the Guarantor contained in that deed.

 

11.                               Invalidity of certain provisions

 

If any term of this guarantee or the application thereof to any person or circumstances shall to any extent be invalid or unenforceable the same shall be severable and the remainder of this guarantee or the application of such term to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby and each term and provision of this guarantee shall be valid and be enforced to the fullest extent permitted by law.

 

12.                               Duration of Guarantee

 

The guarantee in this Schedule 4 shall remain in effect until the earlier of:

 

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12.1                        the determination of the Term;

 

12.2                        the assignment of this Lease by the Tenant in accordance with the provisions of clause 19; or

 

12.3                        the date upon which the Tenant is released from liability under this Lease by virtue of Section 11(2) of the Landlord and Tenant (Covenants) Act 1995 but without prejudice to any accrued rights of action or remedy of the Landlord.

 

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SCHEDULE 5

 

Items of Expenditure as referred to in clause 30

 

1.                                      Repairs and maintenance

 

1.1                               Repairing, maintaining, decorating and (where appropriate) cleaning, lighting, heating, servicing and (as and when necessary) altering, reinstating, renewing or rebuilding each part of the Retained Parts;

 

1.2                               Carpeting, furnishing and equipping the Retained Parts as the Landlord may determine, including providing floral decorations, desks, tables, chairs and other fixtures and fittings in the main entrance halls and lift lobby areas.

 

2.                                      Plant and machinery

 

Providing, maintaining, repairing, operating, inspecting, servicing, cleaning, lighting and (as and when necessary) renewing or replacing any plant, machinery, apparatus and equipment in the Retained Parts, including arty boiler and items relating to the ventilation, heating, air conditioning and hot and cold water systems, any lift, lift shaft and lift motor room, any fuel and electricity for them and any necessary maintenance contracts and insurance in respect of them.

 

3.                                      Security and emergency systems

 

Providing, maintaining, repairing, operating, inspecting, servicing, cleaning and (as and when necessary) renewing or replacing any security or emergency systems for the Building, including alarm systems, internal telephone systems, closed circuit television systems, generators, emergency lighting, fire detection or prevention systems, sprinkler systems, any fire escapes for the Building and fire fighting and fire prevention equipment and appliances (other than those for which a tenant is responsible).

 

4.                                      Staff

 

Providing staff (including such direct labour as the Landlord considers appropriate having regard to the best interests of the tenants in the Building  and the principles of 

 

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good estate management) for the day-to-day running of the installations and plant in, and the provision of other services to, the Building and for its general management, operation and security and all other incidental expenditure, including:-

 

4.1                               insurance, health, pension, welfare, payments, contributions and premiums;

 

4.2                               providing uniforms, working clothes, tools, appliances, materials and equipment (including telephones) for the proper performance of the duties of any such staff;

 

4.3                               providing, maintaining, repairing, decorating and lighting any accommodation and facilities for staff employed in the Building, and any rates, gas or electricity charges in respect of it, and any actual or notional rent for such accommodation.

 

5.                                      Signs etc.

 

Providing, maintaining and renewing name boards and signs in the main entrance halls, lift lobby areas and any other parts of the Building, and any directional signs and fire regulation notices and any flags, flag poles, television and radio aerials and satellite dishes.

 

6.                                      Refuse

 

Providing and (when necessary) renewing or replacing any paladins, compactors or other receptacles for refuse for the Building and the cost of collecting, storing and disposing of refuse.

 

7.                                      Landscaping

 

Providing and maintaining floodlighting and any plants, shrubs, trees or garden or grassed areas in the Retained Parts.

 

8.                                      Miscellaneous items

 

8.1                               Leasing or hiring any of the items referred to in this Schedule.

 

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8.2                               Interest, commission and fees in respect of any monies borrowed to finance the provision of services and any of the items referred to in this Schedule provided that such interest, commission and fees are incurred on commercial terms and in an arms length manner.

 

8.3                               Enforcing for the general benefit of the tenants of the Building (as determined by the Landlord) the covenants in any of the other leases of the Building.

 

9.                                      Insurance

 

9.1                               Periodic valuations of the Building for insurance purposes but not more than once in any one year.

 

9.2                               Works required to the Building in order to satisfy the requirements of any insurer of the Building.

 

9.3                               Property owner’s liability, third party liability and employer’s liability and such other insurances as the Landlord may, from time to time, reasonably determine in the interest of good estate management.

 

9.4                               Any amount which may be deducted or disallowed by any insurer of the Building under any excess provision in the insurance policy on settlement of any claim by the Landlord.

 

10.                               Common facilities

 

Making, laying, repairing, maintaining, rebuilding, decorating, cleaning and lighting (as the case may require), any roads, ways, forecourts, passages, pavements, party walls or fences, party structures, Conduits or other conveniences and easements whatsoever which may belong to, or be capable of being used or enjoyed by, the Building in common with any Adjoining Property.

 

11.                               Outgoings

 

All existing or future rates during the Term or any extension or continuation thereof (including water rates) taxes, duties, charges, assessments, impositions and outgoings whatsoever (whether parliamentary, parochial, local or of any  other description and 

 

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whether or not of a capital or non-recurring nature or of a wholly novel character) payable by the Landlord in respect of the Retained Parts or any part of them but not the Landlord’s reversion.

 

12.                               Statutory requirements

 

Carrying out any works to the Building required to comply with any statute (other than works for which any tenant or occupier is responsible).

 

13.                               Representations

 

Taking any steps considered desirable or expedient by the Landlord for complying with, making representations against, or otherwise contesting liability under, any statute concerning town planning, public health, highways, streets, drainage and any other matters relating or alleged to relate to the Building or any part of it for which any tenant is not directly responsible or which the Landlord is not jointly liable to pay with the Tenant hereunder.

 

14.                               Management

 

14.1                        The proper and reasonable fees, costs, expenses and disbursements of the Surveyor or any other person employed or retained by the Landlord for, or in connection with, surveying and accounting functions, the performance of the services and any other duties in and about the Building or any part of it, and relating to the general management, administration, security, maintenance, protection and cleanliness of the Building and incurred in the interests of the occupiers of the Building and in accordance with the principles of good estate management.

 

14.2                       The proper and reasonable fees and expenses of the Landlord or a Group Company of the Landlord in connection with the management of the Building and any of the functions and duties referred to in paragraph 14.1 that may be undertaken by the Landlord or that Group Company, such fees and expenses to include overheads and profits commensurate with current market practice of property companies providing management services.

 

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15.                               Reserve Fund

 

Such annual provision as the Landlord may, in its discretion, determine as being proper and reasonable and in the interest of good estate management for the establishment and maintenance of a reserve fund for the replacement of any boilers, plant, machinery, apparatus and equipment or comprising the Retained Parts.

 

16.                               Generally

 

Any other costs and expenses which the Landlord incurs in providing such other services and in carrying out such other works as the Landlord may, in its discretion, consider desirable or necessary for the benefit of the Building or any part of it or the tenants or occupiers of it, or for securing or enhancing any amenity of, or within, the Building, or in the interest of good estate management.

 

17.                               Value Added Tax

 

Value Added Tax in respect of any item of expenditure referred to in this Schedule to the extent that it is not otherwise recoverable by the Landlord.

 

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SCHEDULE 6

 

Deeds and documents containing matters to which the premises are subject

 

All matters contained in the title registers for Title Number 314084 save for any financial charges.

 

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SCHEDULE 7

 

Authorised Guarantee Agreement to be given by Tenant pursuant to clause 19.3.2

 

THIS DEED is made the [                             ] day of [                                         ]

 

BETWEEN:

 

1.                                      [                                                                       ] whose registered office is at [                                                                                                                          ] (registered number: [                                                          ]) (the “Present Tenant”) [and]

 

2.                                      [                                                                       ] whose registered office is at: [                                                                                                                          ] (registered number: [                                                          ]) (the “Landlord”) [and]

 

3.                                      [                                                                       ] whose registered office is at [                                                                                                                          ] (registered number: [                                                          ]) (the “Guarantor”) [and]

 

WHEREAS:-

 

(A)                               This Agreement is made pursuant to the lease dated [                                ] 2010 and made between (1) O&H Q7 Limited; (2) GW Pharma Limited; and (3) GW Pharmaceuticals Limited (the “Lease”) which expression shall include (where the context so admits) all deeds and documents supplemental to it (whether expressed to be so or not) relating to the premises at 6th Floor, One Cavendish Place London W1 (the “Premises”).

 

(B)                               The Present Tenant holds the Premises under the Lease and wishes to assign the Lease to [   ] (the “Assignee”), and pursuant to the Lease the Landlord’s consent is required to such assignment (the “Assignment”) and such consent is given subject to a condition that the Present Tenant [and the Guarantor] [is/are] to enter into a deed in the form of this Deed.

 

1.                                      Authorised Guarantee

 

Pursuant to the condition referred to above, the Present Tenant covenants with the Landlord, as a primary obligation, that the Assignee or the Present Tenant shall, at all 

 

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times during the period (the “Guarantee Period”) from the completion of the Assignment until the Assignee shall have ceased to be bound by the tenant covenants (which in this Deed shall have the meaning attributed by section 28(1) of the Landlord and Tenant (Covenants) Act 1995 (the “1995 Act”)) contained in the Lease (including the payment of the rents and all other sums payable under the Lease in the manner and at the times specified in the Lease), duly perform and observe the tenant covenants.

 

2.                                      Present Tenant’s liability

 

2.1                               The Present Tenant agrees that the Landlord, in the enforcement of its rights under this Deed, may proceed against the Present Tenant as if the Present Tenant were the sole or principal debtor in respect of the tenant covenant in question.

 

2.2                               For the avoidance of doubt, notwithstanding the termination of the Guarantee Period the Present Tenant shall remain liable under this Deed in respect of any liabilities which may have accrued prior to such termination.

 

2.3                               For the avoidance of doubt the Present Tenant shall be liable under this Deed for any reasonable and proper costs and expenses incurred by the Landlord in enforcing the Present Tenant’s obligations under this Deed.

 

3.                                      Disclaimer of Lease

 

The Present Tenant further covenants with the Landlord that if the Crown or a liquidator or trustee in bankruptcy shall disclaim the Lease during the Guarantee Period the Present Tenant shall, if the Landlord by notice in writing given to the Present Tenant within six (6) months after such disclaimer so requires accept from, and execute and deliver to, the Landlord a counterpart of a new lease of the Premises for a term commencing on the date of the disclaimer and continuing for the residue then remaining unexpired of the term of the Lease, such new lease to be at the same rents and subject to the same covenants and provisions as are contained in the Lease.

 

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4.                                      Supplementary provisions

 

By way of provision incidental or supplementary to clauses 1, 2 and 3 of this Deed:-

 

4.1                               Postponement of claims by Present Tenant

 

The Present Tenant further covenants with the Landlord that the Present Tenant shall:-

 

4.1.1                     not claim in any liquidation, bankruptcy, composition or arrangement of the Assignee in competition with the Landlord and shall remit to the Landlord the proceeds of all judgments and all distributions it may receive from any liquidator, trustee in bankruptcy or supervisor of the Assignee;

 

4.1.2                     hold for the benefit of the Landlord all security and rights the Present Tenant may have over assets of the Assignee whilst any liabilities of the Present Tenant or the Assignee to the Landlord remain outstanding; and

 

4.1.3                     not exercise any right or remedy in respect of any amount paid or any liability incurred by the Present Tenant in performing or discharging its obligations contained in this Deed, or claim any contribution from any other guarantor.

 

4.2                               Postponement of participation by Present Tenant in security

 

The Present Tenant shall not be entitled to participate in any security held by the Landlord in respect of the Assignee’s obligations to the Landlord under the Lease or to stand in the place of the Landlord in respect of any such security until all the obligations of the Present Tenant or the Assignee to the Landlord under the Lease have been performed or discharged.

 

4.3                               No release of Present Tenant

 

None of the following, or any combination of them, shall release, determine, discharge or in any way lessen or affect the liability of the Present Tenant as principal obligor under this Deed or otherwise prejudice or affect the right of the Landlord to recover from the Present Tenant to the full extent of this guarantee:-

 

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4.3.1                     any neglect, delay or forbearance of the Landlord in endeavouring to obtain payment of any rents or other amounts required to be paid by the Assignee or in enforcing the performance or observance of any of the obligations of the Assignee under the Lease;

 

4.3.2                     any refusal by the Landlord to accept rent tendered by or on behalf of the Assignee at a time when the Landlord was entitled (or would after the service of a notice under Section 146 of the Law of Property Act 1925 have been entitled) to re-enter the Premises;

 

4.3.3                     any extension of time given by the Landlord to the Assignee;

 

4.3.4                     (subject to Section 18 of the 1995 Act) any variation of the terms of the Lease or the transfer of the Landlord’s reversion provided that any such variation or transfer does not increase the liability of the Present Tenant;

 

4.3.5                     any change in the constitution, structure or powers of either the Present Tenant, the Assignee or the Landlord or the liquidation, administration or bankruptcy (as the case may be) of either the Present Tenant or the Assignee;

 

4.3.6                     any legal limitation, or any immunity, disability or incapacity of the Assignee (whether or not known to the Landlord) or the fact that any dealings with the Landlord by the Assignee may be outside, or in excess of, the powers of the Assignee;

 

4.3.7                    any other deed, act, omission, failure, matter or thing whatsoever as a result of which, but for this provision, the Present Tenant would be exonerated either wholly or partly (other than a release executed and delivered as a deed by the Landlord or a release effected by virtue of the 1995 Act).

 

4.4                               Costs of new lease

 

The Landlord’s reasonable legal costs in connection with any new lease granted pursuant to clause 3 of this Deed shall be borne by the Present Tenant and paid to the Landlord (together with Value Added Tax) upon completion of such new lease.

 

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5.                                      Invalidity of certain provisions

 

If any term of this Deed or the application thereof to any person or circumstances shall to any extent be invalid or unenforceable the same shall be severable and the remainder of this Deed or the application of such term to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby and each term and provision of this Deed shall be valid and be enforced to the fullest extent permitted by law.

 

IN WITNESS  whereof this deed has been executed by the Present Tenant and is intended to be and is hereby delivered on the date first above written above.

 

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Executed as a Deed by

 

O&H Q7 LIMITED

 

	
acting   by a director in the presence of: 
    	
/s/   [ILLEGIBLE]
    
	
 
    	
 
    
	
Signature   of witness: 
    	
/s/   David Lyons
    
	
 
    	
 
    
	
Name   of witness (in BLOCK CAPITALS) 
    	
DAVID   LYONS
    

 

Address:

 

78Exhibit 10.32

 

	
 
    	
Lease
    
	
 
    	
 
    
	
 
    	
relating   to 2nd Floor, Sovereign House, Vision Park, Histon,
    
	
 
    	
Cambridge
    
	
 
    	
 
    
	
 
    	
(1)                                 Apia Nominee   1 Limited and Apia Nominee 2 Limited
    
	
 
    	
 
    
	
 
    	
(2)                                 G W Pharma   Limited
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Dated               24   May 2011
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Osborne   Clarke
    
	
 
    	
 
    
	
 
    	
2   Temple Back East
    
	
 
    	
Temple   Quay
    
	
 
    	
Bristol
    
	
 
    	
BS1   5EG
    
	
 
    	
Telephone
    	
+44   (0) 117 917 3000
    
	
 
    	
Fax
    	
+44   (0) 117 917 3005
    
	
 
    	
 
    
	
 
    	
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Contents

 

	
Prescribed clauses under Schedule 1A of the Land   Registration Rules 2003
    	
i
    
	
Lease Particular
    	
iii
    
	
1.
    	
Definitions   and interpretation
    	
1
    
	
2.
    	
Demise
    	
6
    
	
3.
    	
Tenant’s   covenants
    	
6
    
	
4.
    	
Landlord’s   Covenants
    	
15
    
	
5.
    	
Forfeiture
    	
16
    
	
6.
    	
Obligations   in schedules to this Lease
    	
17
    
	
7.
    	
Miscellaneous   provisions
    	
17
    
	
Schedule   1
    	
Rights   granted
    	
20
    
	
Schedule   2
    	
Exceptions   and Reservations
    	
21
    
	
Schedule   3
    	
Matters   to which the Lease is subject
    	
22
    
	
Schedule   4
    	
Insurance   provisions
    	
23
    
	
Schedule   5
    	
Rent   Review Provisions
    	
26
    
	
Schedule   6
    	
Guarantor   Covenants
    	
29
    
	
Schedule   7
    	
Part   I — Services
    	
31
    
	
Part   2
    	
Service   Charge
    	
34
    
	
Schedule   8
    	
Estate   Service Charge
    	
37
    
	
Schedule   9
    	
Form   of Authorised Guarantee Agreement
    	
40
    
	
Schedule   10
    	
Regulations
    	
45
    
				

 

 

Prescribed clauses under Schedule 1A of the
 Land Registration Rules 2003

 

	
LRI.   Date of lease
    	
 
    	
24   May 2011
    
	
 
    	
 
    	
 
    
	
LR2.   Title number(s)
    	
 
    	
LR2.1   Landlord’s title number CB170451

 

LR2.2   Other title numbers
    
	
 
    	
 
    	
 
    
	
LR3.   Parties to this lease
    	
 
    	
Landlord:   Apia Nominee I Limited (Company Number 05593236) and Apia Nominee 2 Limited (Company Number 05593237)s whose   registered office is at No 1 Poultry, London EC2R 8EJ

 

Tenant:   GW Pharma Limited (Company Number 03704998) whose registered office   is at Porton Down Science Park, Salisbury, Wiltshire SP4 0JQ
    
	
 
    	
 
    	
 
    
	
LR4.   Premises
    	
 
    	
In   the case of a conflict between this clause and the remainder of this lease   then, for the purposes of registration, this clause shall prevail.

 

The   Premises as defined in clause 1.1.
    
	
 
    	
 
    	
 
    
	
LR5.   Prescribed statements etc.
    	
 
    	
LR5.1   Not applicable

 

LR5.2   Not applicable
    
	
 
    	
 
    	
 
    
	
LR6.   Term for which the Premises is leased
    	
 
    	
The   term as specified in the definition of Contractual Term in the Lease   Particulars
    
	
 
    	
 
    	
 
    
	
LR7.   Premium
    	
 
    	
None
    
	
 
    	
 
    	
 
    
	
LR8.   Prohibitions or restrictions on disposing of this lease
    	
 
    	
This   lease contains a provision that prohibits or restricts dispositions.
    
	
 
    	
 
    	
 
    
	
LR9.   Rights of acquisition etc
    	
 
    	
LR9.1 Tenant’s contractual rights to renew this lease, to acquire the   reversion or another lease of the Premises, or to acquire an Interest in   other land

 

None

 

LR9.2 Tenant’s covenant to (or offer to) surrender this lease

 

None

 

LR9.3 Landlord’s contractual rights to acquire this lease

 

None
    
	
 
    	
 
    	
 
    
	
LR10.   Restrictive covenants given in this lease by the Landlord in respect of land   other than the Premises
    	
 
    	
None
    

 

i

 

	
LR11   Easements
    	
 
    	
LR11.1 Easements granted by this lease for the benefit of the   Premises

 

Contained   in schedule 1

 

LR11.2 Easements granted or reserved by this lease over the Premises   for the benefit of other Premises

 

Contained   in schedule 2
    
	
 
    	
 
    	
 
    
	
LR12.   Estate rentcharge burdening the Premises
    	
 
    	
None
    
	
 
    	
 
    	
 
    
	
LR13.   Application for standard form of restriction
    	
 
    	
None
    
	
 
    	
 
    	
 
    
	
LR14.   Declaration of trust where there is more than one person comprising the   Tenant
    	
 
    	
Not   applicable
    

 

ii

 

Lease Particular

 

	
Landlord:
    	
Apia   Nominee 1 Limited and Apia Nominee 2 Limited
    
	
 
    	
 
    
	
Company   Number:
    	
05593238   and 05593237 respectively
    
	
 
    	
 
    
	
Registered   Office:
    	
No   1 Poultry, London EC2R 8E1
    
	
 
    	
 
    
	
Tenant:
    	
GW   Pharma Limited
    
	
 
    	
 
    
	
Company   Number:
    	
03704998
    
	
 
    	
 
    
	
Registered   Office:
    	
Porton   Down Science Park, Salisbury,
   Wiltshire SP4 0JQ
    
	
 
    	
 
    
	
Premises:
    	
Second   Floor, Sovereign House, Vision Park, Histon, Cambridge shown edged red on   Plan 1
    
	
 
    	
 
    
	
Building:
    	
the   land and building known as Sovereign House, Vision Park, Histon, Cambridge   shown edged blue on Plan 2
    
	
 
    	
 
    
	
Contractual   Term:
    	
Ten   years starting on the Term Start Date
    
	
 
    	
 
    
	
Term   Start Date:
    	
24   May 2011
    
	
 
    	
 
    
	
Initial   Rent:
    	
£216,810 Two Hundred   and Sixteen Thousand Eight Hundred and Ten Pounds) per year
    
	
 
    	
 
    
	
Rent   Start Date:
    	
24   February 2012
    
	
 
    	
 
    
	
Review   Date:
    	
24   May 2016
    
	
 
    	
 
    
	
Permitted   Use:
    	
As   offices within Class B1(a) of the Schedule to the 1987 Order
    
	
 
    	
 
    
	
Break   Dates:
    	
23   May 2016 (First Break Date)
   23 May 2018 (Second Break Date)
   23 May 2019 (Third Break Date)
   and Break Date means any one of the Break   Dates as applicable
    

 

iii

 

This Lease is made on the date stated and between the parties specified in the Prescribed Clauses

 

It is agreed as follows:

 

1.                                     Definitions and interpretation

 

1.1                              In this Lease, unless the context otherwise requires, the following definitions and those set out in the Lease Particulars will apply:

 

“1954 Act” means the Landlord and Tenant Act 1954 (as amended),

 

“1987 Order” means the Town and Country Planning (Use Classes) Order 1987 as amended by the Town and  Country Planning (Use Classes) (Amendment) (England) Order 2005 (as existing at the date of this Lease),

 

“1995 Act” means the Landlord and Tenant (Covenants) Act 1995.

 

“2003 Order” means the Regulatory Reform (Business Tenancies) (England and Wales) Order 2003,

 

“Authorised Guarantee Agreement” means as defined by section 28(1) of the 1995 Act.

 

“Authority” means any statutory, public, local or other competent authority or court of competent jurisdiction.

 

“Building” means the building set out in the Lease Particulars or such other land (including the Premises) of a greater or lesser extent as the Landlord may designate from time to time,

 

“Business Day” means a day (other than a Saturday or Sunday) on which clearing banks are open for business In the City of London.

 

“‘Business Hours” means the hours between 8.00 am and 6.00 pm on Mondays to Fridays and between 8.00 am and 1,00pm on Saturdays other (in each case) than on public or general holidays

 

“Car Parking Spaces” means fifty eight (58) car parking spaces designated from time to time by the Landlord for the use of the Tenant and comprising part of the car parking areas within the Common Parts the spaces designated at the date of this Lease being those shown coloured yellow on Plan 2.

 

“Common Parts” means all parts of the Building which are not exclusively demised to any tenant and which are designated by the Landlord as available for use in common by the tenants and occupiers of the Building, the Landlord and those properly authorised or permitted by them to do so including the car parking areas, entrance areas, landscaped areas, entrance halls, reception areas, lifts, fire escapes, staircases, passages, landings and toilets of the Building and any other areas or amenities granting access to or egress from the Premises.

 

“Conduits” means gutters, pipes, ducts, cables, aerials, tanks, sewers, drains, shafts, fire prevention and security installations and all other facilities of a similar nature together with all meters and other apparatus used in connection with them.

 

“Due Date” means in respect of:

 

(a)                                the Yearly Rent and VAT on it, the Quarter Day it falls due; and

 

(b)                                any other rents or sums and VAT on them payable under this Lease, the date twenty (20) Business Days after written demand for payment by way of an invoice for the same is made.

 

1

 

“Due Proportion” means such proportion as is conclusively certified (save in the case of manifest error) by the Landlord’s surveyor (acting reasonably and properly) as representing the due proportion of the relevant expenditure reasonably attributable to the Premises.

 

“Energy Performance Certificate” means a certificate required to be produced by virtue of Regulation 11 of the Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007.

 

“Environmental Law” means all laws, regulations, directives and codes of practice applicable to the United Kingdom relating to the protection of the environment (as defined in section 1(2) of the Environmental Protection Act 1990), pollution control and human, animal and plant welfare,

 

“Estate” means Vision Park, Station Road, Histon, Cambridge which is for the purposes of identification shown edged green on Plan 3 and of which the Building forms part.

 

“Estate Roads” means the roads and footpaths within the Estate constructed or to be constructed for use by vehicular and pedestrian traffic and as referred to in the Transfer.

 

“Estate Service Charge” and “Interim Estate Service Charge” are defined in paragraph 1 of schedule 8

 

“External Areas” means any areas outside the Building which are within the Landlord’s registered title (CB170451) at the date of this Lease.

 

“Group Company” means a company which is either

 

(a)                                the holding company of the Tenant; or

 

(b)                                a wholly-owned subsidiary of either the Tenant or the Tenant’s holding company as both expressions are defined in S1159 Companies Act 2006,

 

“Guarantor” means the party so named in the Lease Particulars (if any) and any person from time to time who guarantees the obligations of the Tenant In this Lease,

 

“Insolvent” means as defined in clause 5.1.

 

“Insurance Rent” means the proper gross amount of all premiums and other expenses (including valuation fees and insurance premium tax) incurred by the Landlord in effecting and maintaining cover for the Premises against the items set out in paragraph 1 of schedule 4.

 

“Insured Risks” means the risks of loss or damage by fire, lightning, storm, flood, explosion, earthquake, impact from vehicles, aircraft, articles dropped from aircraft, riot, civil commotion, malicious damage, terrorism, bursting or overflowing of water tanks, apparatus or pipes and such other risks of a normally insurable nature against which the Landlord may, in Its reasonable discretion or at the reasonable request of the Tenant insure against from time to time.

 

“Interest” means interest at the Interest Rate (both before and after judgment) calculated on a daily basis from the Due Date until the date on which payment is made such interest to be compounded quarterly on the Quarter Days,

 

“Interest Rate” means 3% per year above the base lending rate from time to time of National Westminster Bank Plc (or such other bank as the Landlord may from time to time nominate) or (if base lending rates cease to be published) such other comparable rate of interest as the Landlord (acting reasonably) nominates.

 

“Landlord” means the party so named in the Lease Particulars and any person from time to time entitled to the immediate reversion to this Lease.

 

2

 

“Lease” means this lease (including the schedules) as supplemented or varied in writing from time to time whether by deed, licence or otherwise,

 

“Legal Obligations” means (under any jurisdiction whatever) all requirements of any law, treaty, statute, subordinate legislation or bye-law of any Authority at any time during the Term insofar as they relate to the Premises or their use or occupation or the business carried on by the Tenant at the Premises.

 

“Lettable Unit” means any part of the Building which is let, or intended or designed for letting from time to time to a tenant or tenants or occupied or intended for separate and exclusive occupation by a tenant or tenants (except in connection with managing the Building).

 

“Managing Agent” means a properly qualified surveyor appointed by the Landlord to properly manage the Building (who may be an employee of the Landlord).

 

“Neighbouring Premises” means the Building (except the Premises) the External Areas and any property owned by the Landlord adjoining or near to the Building.

 

“Permitted Part” means such part of the Premises as is self contained and capable of separate beneficial occupation,

 

“Plan” means the plans annexed to this Lease and references to Plan 1, Plan 2 and Plan 3 shall be deemed to refer to the Plans so marked,

 

“Planning Acts” means “the consolidating Acts” as defined in the Planning (Consequential Provisions) Act 1990, the Planning and Compensation Act 1991, the Planning and Compulsory Purchase Act 2004 and any other legislation relating to town and country planning in force in England and Wales from time to time which relate to the Tenant’s use of the Premises.

 

“Plant” means any plant equipment and machinery in or serving the Building during the Term but does not include the Tenants moveable office equipment,

 

“Premises” means the premises set out in the Lease Particulars and the whole or any part of them as altered or added to from time to time including:

 

(a)                                the Conduits and Plant within and exclusively serving them up to the point where they connect to those of statutory undertakers or those which are commonly used by the Building;

 

(b)                                all fixtures and fittings in them (except tenants or trade fixtures and fittings);

 

(c)                                 the internal finishes applied to the interior of any external and loadbearieg walls or structures of the Building but not any other parts of such external or loadbearing walls or structures:

 

(d)                                the whole of any internal walls which are not loadbearing within the Premises;

 

(e)                                 the inner half served medially of any internal walls which are not loadbearing and which divide the Premises from any other part of the Building;

 

(f)                                  the carpets and the floor screeds and other floor and ceiling finishes up to but excluding any floor slab or joists to which those finishes are affixed; and

 

(g)                                 the whole of the doors, windows, window frames and glass within the Premises but not any windows, window frames or any forms of glazing which are in or comprise part of the external wall of the Building;

 

but excluding the structural parts, loadbearing framework, roof, foundations, joists and external walls of the Building and any Conduits and Plant within (but riot exclusively serving) the Premises

 

3

 

 

 

1

 

 

 

 

 

and the air conditioning and heating Plant located on the roof and Conduits thereto regardless of the extent to which the same may exclusively serve the Premises

 

“Prescribed Clauses” means the prescribed clauses under Schedule 1A of the Land Registration Rules 2003 appearing at the front of this Lease.

 

“Quarter Days” means 25 March, 24 June, 29 September and 25 December in every year.

 

“Regulations” means the regulations in Schedule 10 which the Landlord may, having regard to the principles of good estate management, add to, amend or remove during the Term,

 

“Rent Restrictions” means any restriction on the assessment and recovery of rent imposed by statute or an Authority.

 

“Rents” means the payments due under clause 2.2 and the other sums reserved by or payable by the Tenant under this Lease.

 

“Review Period” means the period beginning on any Review Date or (as the case may be) on the Term Start Date and ending on the day before the next Review Date,

 

“Review Surveyor” means an independent chartered surveyor appointed under paragraph 3 of schedule 5 and, if to be nominated by or on behalf of the President for the time being of the Royal Institution of Chartered Surveyors, the President shall be requested to nominate an independent chartered surveyor having recent substantial experience in the letting and valuation of premises of a similar character and quality to those of the Premises,

 

“Service Charge” and “Interim Service Charge” are defined in paragraph 1 of part 2 of schedule 7.

 

“Services” means the services set out in part 1 of schedule 7.

 

“Substance” means any substance (whether in the form of a solid, liquid, gas or vapour) the presence, 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.

 

“Tenant Covenant” means as defined in section 28(1) of the 1995 Act.

 

“Tenant” means the party so named in the Lease Particulars and any person in whom this Lease is vested from time to time,

 

“Term” means the Contractual Term together with any continuation or extension of the Contractual Term whether by agreement, statute or otherwise,

 

“Transfer” means the transfer of part dated the 29th April 1994 made between Merivale Moore Construction Limited (1) Lloyds Bank S.P. Nominees Limited (2) and Vision Park Management Limited (3),

 

“Uninsured Damage” means damage or destruction to the Building and/or the Premises and/or any External Areas caused by any risks expressly specified in the definition of the Insured Risks so as to render the Premises wholly or partially unfit for occupation and use and/or inaccessible and which is not insured because insurance is not available or is not available at reasonable commercial rates such that the full cost of reinstatement and rebuilding caused by any such risks is not recoverable by the Landlord under its insurance policy.

 

“VAT” means value added tax as provided under the VATA.

 

4

 

“VATA” means Value Added Tax Act 1994 and references to the VATA shall include ail statutes, laws, regulations, notices, directions or similar provisions, relating to value added tax and any value added, turned, sales, purchase or similar tax of the United Kingdom or of any other jurisdiction and references to value added tax or to VAT shall be construed accordingly,

 

“Yearly Rent” means until the Review Date the initial Rent and thereafter any sum substituted for it under the provisions of schedule 5.

 

1.2                               In this Lease, unless the context otherwise requires:

 

(a)                                 where at any time a party to this Lease comprises more than one person all obligations and liabilities of or with that party are joint and several and references to that party include references to each such person;

 

(b)                                 words denoting persons include any individual, firm, body corporate, association or partnership, government or state (whether or not having a separate legal personality);

 

(c)                                  words in the singular include the plural and vice versa and words in one gender include any other gender;

 

(d)                                 references to clauses and schedules are to clauses and schedules of this Lease and references to paragraphs are references to paragraphs of the schedule in which they appear;

 

(e)                                  the Lease Particulars form part of this Lease but the table of contents and the headings are for convenience only and will not affect the construction or interpretation of this Lease;

 

(f)                                   any obligation by the Tenant not to do or omit to do something includes an obligation not to permit or to suffer that thing to be done or omitted,

 

(g)                                  where there is an obligation to obtain the consent or approval of the Landlord under this Lease such consent or approval must be contained in a formal deed or licence;

 

(h)                                 except for any references to the 1987 Order, any reference to a statute or statutory provision includes any subordinate legislation made under it and any statute or statutory provision which modifies, consolidates, re-enacts or supersedes it whether such statute or statutory provision comes into force before or after the date of this Agreement;

 

(i)                                     the word “assignment” includes equitable assignment and the words “assign” and “assignee” shall be construed accordingly;

 

(j)                                    references to any statute or legislation include any legislation of the European Union directly applicable in the United Kingdom;

 

(k)                                 it is a condition of any rights of entry provided for in this Lease that the person exercising such rights will;

 

(i)                                     give reasonable prior written notice to the person affected (except in case of emergency);

 

(ii)                               cause as little damage to the Premises or the Premises to which entry is gained (as the case may be) as is reasonably practicable in the exercise of such rights; and

 

(iii)                            make good any such damage as soon as reasonably practicable to the reasonable satisfaction of the person affected;

 

(l)                                     references to “occupier of the Premises” include anyone on the Premises;

 

5

 

(i)                                  deriving title under Tenant or any undertenant; or

 

(ii)                               with the express or implied authority of either the Tenant or any undertenant or anyone deriving title under the Tenant or undertenant.

 

And where there is a reference to the consequences of the Tenant’s acts, omissions or defaults, all references to the “Tenant” include references to any occupier of the Premises;

 

(m)                             references to the “end of the Term” are to the end of the Term however and whenever it determines:

 

(n)                                 references to a numbered plan are to the plan so numbered annexed to this Lease.

 

2.                                      Demise

 

2 1          The Landlord demises the Premises to the Tenant for the Term:

 

(a)                                 together with the rights set out in schedule 1;

 

(b)                                 excepting and reserving those rights as set out in schedule 2; and

 

(c)                                  subject to all rights, restrictions, covenants and liabilities affecting the Premises as set out in schedule 3 (if any).

 

2.2                               The Tenant will pay on each Due Date the following rents to the Landlord:

 

(a)                                 the Yearly Rent by equal quarterly payments in advance on the Quarter Days the first (or proportionate part) of such payments for the period beginning on the Rent Start Date and ending on the day immediately preceding the next Quarter Day to be paid on the Rent Start Date;

 

(b)                                 the insurance Rent;

 

(c)                                  the Interim Service Charge and the Service Charge payable in accordance with the provisions of schedule 7;

 

(d)                                 the Interim estate Service Charge and the Estate Service Charge payable in accordance with the provisions of Schedule 8.

 

(e)                                  any VAT payable by the Tenant from time to time; and

 

(f)                                   Interest payable by the Tenant under the terms of this Lease.

 

3.                                      Tenant’s covenants

 

The Tenant covenants with the Landlord throughout the Term;

 

3.1                               Rent

 

To pay to the Landlord the Rents without any deduction or set off (except where lawfully provided by statute) and (if required) by standing order or credit transfer to the Landlord’s bank account,

 

3.2                               Interest

 

Without prejudice to any other remedy of the Landlord, to pay interest on so much of the Rents as remain unpaid in cleared funds in the case of the Yearly Rent, after the Due Date and the in the case of all other Rents, for a period of ten (10) Business Days after the Due Date, whether or not any such sums have been properly refused by the Landlord so as not to waive any breach of covenant.

 

6

 

3.3                               Outgoings

 

To pay and indemnify the Landlord against the whole (or where appropriate a Due Proportion) of:

 

(a)                                 all proper taxes, assessments, impositions, duties, charges, and outgoings payable at any time during and until the end of the Term relating to the Premises by the owner or occupier of the Premises or otherwise due in respect of them (except any tax assessed on the Landlord in respect of its ownership of, rental income from, or any dealing with its reversionary Interest); and

 

(b)                                 all proper charges for gas, electricity and other services supplied to the Premises (including any proper connection and hiring charges and meter rents).

 

3.4                               Repair

 

(a)                                 To keep the Premises in good and substantial repair and condition (damage by Insured Risks excepted save to the extent that any insurance money is irrecoverable as a result of any act or default of the Tenant,

 

(b)                                 At appropriate intervals to maintain, service and clean all gas, electrical, hydraulic and other mechanical installations and equipment forming part of or in the Premises In accordance with any relevant manufacturers or installer’s maintenance manual and when necessary to have such installation and equipment repaired or (where beyond economic repair) replaced by qualified persons who are and at intervals which are approved by the manufacturers of such installation and equipment.

 

(c)                                  To clean the Premises (including all drains and gutters) whenever reasonably necessary (but not more than once a month in the case of windows) and keep them in a clean and tidy condition at all times,

 

(d)                                 To replace the carpets and other floor coverings at the Premises when necessary with others of equivalent quality to those at the Premises at the date of this Lease and to replace them in the last 6 months immediately prior to the end of the Term in colours approved by the Landlord (acting reasonably).

 

3.5                               Decoration

 

When necessary and in any event in the last 6 months immediately prior to the end of the Term to prepare and paint, decorate or otherwise treat as appropriate all parts of the Premises which are usually painted, decorated or treated (In respect of the internal parts of the Premises in such colours and with such materials as the Landlord may reasonably require in the last 6 months immediately prior to the end of the Term).

 

3.6                               Alterations

 

(a)                                 Not to erect any new building on the Premises nor to make any alterations or additions to the structure or exterior of the Premises or which affect the external appearance of the Premises nor (save as may be permitted under the remainder of this Lease) to make any other alterations or additions to the Premises.

 

(b)                                 Not without the Landlord’s prior written consent (which will not be unreasonably withheld or delayed):

 

(i)                                     to make any internal non-structural alterations or additions to the Premises: nor

 

(ii)                                  to make any alterations or additions to the mechanical and electrical systems in the Premises.

 

7

 

(c)                                  To supply to the Landlord such drawings and specifications as the Landlord reasonably requires to identify any proposed alterations or additions and to carry out such alterations or additions only in accordance with such drawings and specifications in a good and workmanlike manner and to the reasonable satisfaction of the Landlord,

 

(d)                                 To obtain all necessary consents and approvals pursuant to Legal Obligations for any proposed alterations or additions whether or not requiring the consent of the Landlord and to supply copies to the Landlord as soon as reasonably practicable.

 

(e)                                  To execute a formal licence in respect of any proposed alterations or additions requiring the consent of the Landlord in such form as the Landlord reasonably requires.

 

(f)                                   Unless otherwise required by the Landlord to reinstate the Premises at the end of the Term and to make good all consequential damage to the reasonable satisfaction of the Landlord,

 

3.7                               Signs

 

(a)                                 Not to exhibit any flashing sign or light on the Premises,

 

(b)                                 Not to exhibit any flag, sign, advertising notices or promotional material which is visible from the exterior of the Premises without the Landlord’s prior written consent which will not be unreasonably withheld or delayed in the case of a sign displaying the name and business of the Tenant of a style size and number appropriate to the Building and the Permitted Use,

 

(c)                                  At the end of the Term to remove any sign, poster, notice, advertisement or other item displayed in accordance with this clause and to make good all damage caused to the reasonable satisfaction of the Landlord,

 

3.8                               Permitted Use

 

Not to use the Premises otherwise than for the Permitted Use,

 

3.9                               Prohibited user and nuisance

 

(a)                                 Not to use the Premises for any noisy, offensive, dangerous, illegal or immoral purpose nor for residential or steeping purposes nor for gambling or betting nor for the sale of alcoholic liquor for consumption whether on or off the Premises.

 

(b)                                 Not to hold on the Premises any political meeting or public show or spectacle nor any sale by auction.

 

(c)                                  Not to do anything on the Premises (or on any land over which any right granted by this Lease is exercised) which may be or become a nuisance, damage or disturbance to the Landlord or any owner or occupier of any other land.

 

(d)                                 Not to deposit store exhibit stack or sell any goods materials articles or other objects outside the Premises.

 

(e)                                  At all times during the Term to use reasonable endeavours to ensure that the Premises are adequately secured when not in use.

 

(f)                                   Not to use the Car Parking Spaces otherwise than for the parking of private motor vehicles,

 

8

 

3.10                        Loading and deliveries

 

Not to bad or unload vetides except in the areas designated by the Landlord for such purpose and in the course of such loading or unloading:

 

(a)                                 to comply with any reasonable additional regulations of the Landlord and the requirements of the local highway authority which have been notified to the Tenant in writing; and

 

(b)                                 not to cause any avoidable obstruction.

 

3.11                        Overloading and damage

 

Not to overload the Premises nor damage, overload or obstruct any Conduits the Retained Parts or any Plant serving the Premises,

 

3.12                        Refuse and deleterious substances

 

(a)                                 Not to burn any rubbish on the Premises or the Common Parts and not to deposit any rubbish on the Premises or the Common Parts other than in proper receptacles.

 

(b)                                 To ensure that rubbish or refuse receptacles on the Premises are regularly emptied and to comply with the Landlord’s reasonable and proper requirements for the disposal of rubbish or refuse.

 

(c)                                  Not to permit any Substance to be in on or under or to escape from the Premises and if the Tenant becomes aware of any such Substance in on under or escaping from the Premises to give immediate written notice of it to the Landlord and to remove or remediate it in compliance with the lawful requirements of the Landlord or any competent authority provided that this clause 3.12 (c) shall not prevent the Tenant from keeping on the Premises reasonable quantities of any Substance which is consistent with the Permitted Use and lawfully kept in proper containers.

 

(d)                                 Not to permit the drains to be obstructed by oil grease or other deleterious matter,

 

3.13                        Dealings with this Lease

 

(a)                                 Unless otherwise permitted by this Lease not to;

 

(i)                                     hold the whole or any part of the Premises on trust for another person; or

 

(ii)                                  part with or share possession or occupation of the whole or any part of the Premises.

 

(b)                                 The Tenant may share occupation of the Premises with a Group Company of the Tenant for so long as the Tenant and that company remain members of the same Group without the consent of the Landlord and provided that:

 

(i)                                     within 20 Business Days of commencement of such sharing of occupation the Tenant shall notify the Landlord in writing of the name and registered office of such Group Company sharing occupation; and

 

(ii)                                  no relationship of landlord and tenant is created between the Tenant (or any undertenant) and such Group Company,

 

3.14                        Assignment

 

(a)                                 Not to assign part only of the Premises,

 

9

 

(b)                                 Not to assign the whole of the Premises without the prior written consent of the Landlord (which will not be unreasonably withheld or delayed),

 

(c)                                  Without prejudice to any other grounds on which the Landlord may lawfully withhold consent to any assignment or to any other conditions which it may lawfully impose the Landlord is entitled:

 

(i)                                     to withhold consent in any of the circumstances set out in clause 3.14(d) and/or

 

(ii)                                  to impose all or any of the conditions set out in clause 3.14(e)

 

(d)                                 For the purposes of section 19(1A) of the Landlord and Tenant Act 1927 the Landlord may withhold its consent to an assignment of the whole of the Premises where any one or more of the following circumstances apply:

 

(i)                                     the proposed assignee is a Group Company and the Landlord reasonably considers that the proposed assignee is of lesser financial standing than the Tenant (aggregated with any surety or other security for the proposed assignee);

 

(ii)                                  there is an outstanding material breach of covenant by the Tenant; and/or

 

(iii)                               the proposed assignee is not ordinarily resident within the United Kingdom or (where the proposed assignee is a company or Corporation) it is not incorporated in the United Kingdom.

 

(e)                                  For the purposes of section 19(1A) of the Landlord and Tenant Act 1927 any consent given by the Landlord to any proposed assignment may be subject to the following conditions:

 

(i)                                  the execution and delivery by the Tenant to the Landlord before completion of the assignment of a counterpart of a formal licence permitting such assignment in such form as the Landlord reasonably requires;

 

(ii)                               the execution and delivery by the Tenant to the Landlord before completion of the assignment of an Authorised Guarantee Agreement in the form of the guarantee agreement set out in schedule 9 (with such modifications as the Landlord may require acting reasonably); and

 

(iii)                            (if reasonably required by the Landlord) the execution and delivery by such persons as the Landlord reasonably requires to act as guarantors to the proposed assignee of a deed in the form of the Guarantor’s covenants set out in schedule 6.

 

3.15                        Underletting

 

(a)                                 In this clause, “Permitted Underlease” means an underlease which;

 

(i)                                     reserves not less than the open market rent for the Premises current at the grant of the underlease or (in the case of a letting of a Permitted Part) an appropriate proportion of such rent;

 

(ii)                                  provides for the review of the rent on the same dates and substantially on the same terms as contained in this Lease;

 

(iii)                               is not granted in consideration of any fine or premium;

 

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(iv)                              is granted on terms which are not inconsistent with this Lease (insofar as they relate to the underlet premises) and provide that any further underletting is prohibited;

 

(v)                                 comprises all the terms of the tenancy entered into between the Tenant and the undertenant;

 

(b)                                 Not to underlet part only of the Premises otherwise than by way of an underlease of a Permitted Part.

 

(c)                                  Not to underlet the whole or a Permitted Part of the Premises unless:

 

(i)                                     the undertenant first covenants with the Landlord In terms reasonably acceptable to the Landlord to observe all applicable terms of this Lease to the extent that the same relate to the underlet premises and save for the payment of the Rents;

 

(ii)                                  the underlease is a Permitted Underlease;

 

(iii)                            if the Landlord reasonably so requires, a guarantor or guarantors reasonably acceptable to the Landlord first guarantees or guarantee the undertenant’s obligations in the form set out in schedule 6 (but omitting the provisions relating to disclaimer of the underlease and otherwise amended to extend only to the obligations of the undertenant);

 

(iv)                              sections 24 to 28 (inclusive) of the 1954 Act are lawfully excluded from the underlease; and

 

(v)                                 the underletting of a Permitted Part does not produce more than 3 separate and concurrent occupancies of the Premises (excluding occupations pursuant to clause 3.13(b).

 

and (subject to the above) the Landlord has consented to such underletting (which consent will not be unreasonably withheld or delayed).

 

(d)                                 To use reasonable endeavours to enforce and not to vary or knowingly waive any of the terms of any underlease and not to agree any rent review in respect of any underlease without the Landlord’s consent (not to be unreasonably withheld or delayed) and to give details of every such rent review to the Landlord within 28 days of its outcome,

 

(e)                                  At any time (but not more than once in any 12 month period) to produce to the Landlord following written demand full details of any underlettings or occupations affecting the Premises and copies of any documents relating to such interests,

 

3.16                        Charging

 

(a)                                 Not to charge part of the Premises.

 

(b)                                 Not to charge the whole of the Premises without the prior written consent of the Landlord, which consent will not be unreasonably withheld or delayed.

 

3.17                        Registration

 

Within 28 days of any assignment, underlease, charge or any other dealing affecting this Lease or any interest deriving title under it to produce to the Landlords solicitors a certified copy of the relevant document and to pay a registration fee of £50 plus VAT,

 

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3.18                        Encroachments

 

(a)                                 Not to block up or obstruct (either wholly or partially) any window, opening, access way, Conduits or any other facility enjoyed by the Premises nor to give any acknowledgement that any such facility is enjoyed by the consent of any other person.

 

(b)                                 Not knowingly to permit any encroachment upon or any easement to be created over or in respect of the Premises in favour of a third party.

 

(c)                                  As soon as reasonably practicable after having become aware of any such encroachment or easement being created or threatened to give notice to the Landlord.

 

3.19                        Planning and environmental

 

(a)                                 To comply in all respects with the Planning Acts and with all requirements of Environmental Law in so far as the same relate to the Premises and the rights granted by this Lease.

 

(b)                                 Not to make any application under the Planning Acts (whether for planning permission or otherwise) in relation to the Premises without the prior written consent of the Landlord (which will not be unreasonably withheld or delayed where the Landlord’s consent or approval is also obtained under the Lease for a permitted alteration, a sign or a change in the Permitted Use).

 

(c)                                  Not to implement any planning permission if the Landlord makes reasonable and proper objections to any of the conditions subject to which it has been granted.

 

(d)                                 Where it is a condition of (or a planning obligation associate with) any planning permission that any works be carried out, to carry out such works before the end of the Term if the relevant planning permission is implemented,

 

(e)                                  As soon as reasonably practicable upon receipt to supply copies to the Landlord of all applications, notices, decisions and other formal communications relating to the Premises or served on the Tenant or any undertenant at the Premises and at the Landlord’s expense to take such action as the Landlord may require in respect of such communication provided that such actions are not adverse to the Tenant’s interests and its business activities.

 

(f)                                   Not to enter into any agreement or obligation or serve any purchase notice under the Planning Acts without the prior written consent of the Landlord (not to be unreasonably withheld or delayed).

 

(g)                                  Not without the Landlord’s prior written consent (which will not be unreasonably withheld or delayed) to make any application under Environmental Law in relation to the Premises or any activity carried on there or any use of them.

 

(h)                                 Not to use any part of the Premises in any way or for any purpose which may be or become a breach of Environmental Law

 

(i)                                     Not without the Landlord’s prior written consent (which will not he unreasonably withheld or delayed) to commission any Energy Performance Certificate in relation to or for the benefit of the Premises or any premises of which they form part or otherwise to take any action which may invalidate any Energy Performance Certificate which may be in existence from time to time for the benefit of the Premises or the Building and, in relation to or for the benefit of the Premises, to provide full details to the Landlord (including but not limited to the unique reference number attributable to it).

 

(j)                                    Upon written request from the Landlord to provide to the Landlord such information as the Landlord may reasonably request to enable an Energy Performance Certificate to be produced in relation to the Premises or any premises of which the Premises form part.

 

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3.20                        Legal Obligations

 

(a)                                 To observe and comply with all Legal Obligations in relation to the Premises and the exercise and purported exercise of the rights granted by this Lease

 

(b)                                 Where any Legal Obligation requires the carrying out of works to the Premises.

 

(i)                                     to carry out those works In accordance with the terms of this Lease: and

 

(ii)                               to carry out those works with good quality materials in a good and workmanlike manner and to the reasonable satisfaction of the Landlord.

 

(c)                                  As soon as reasonably practicable following receipt of any notice of any Legal Obligation from an Authority or of any formal notice from any third party in relation to the Premises to produce a copy of that notice to the Landlord and if so required to make such proper representation or objections in relation to it as the Landlord (acting reasonably and properly) may require provided that any such representation or objection is not adverse to the Tenant’s interests or business activities,

 

(d)                                 To give notice to the Landlord of any defect of which the Tenant becomes aware in the Premises which might render the Landlord liable whether under the Defective Premises Act 1972 or this Lease or otherwise immediately upon becoming aware of such defect.

 

(e)                                  To use reasonable endeavours to observe and perform all provisions contained or referred to in the documents listed in schedule 3 so far as they are enforceable and relate to and affect the Premises,

 

3.21                        Rights of entry

 

Subject to clause 1.2 (k) to permit the Landlord and anyone authorised by the Landlord to enter the Premises at all reasonable times with any machinery, tools and equipment.

 

(a)                                 to exercise any of the rights excepted and reserved out of this Lease;

 

(b)                                 to inspect the Premises including but not limited to carrying out tests and investigations;

 

(c)                                  to carry out any relevant works or take any relevant steps pursuant to the Landlord’s rights relating to the use of the Premises and Legal Obligations;

 

(d)                                 to inspect or carry out works of repair, maintenance, construction, alteration or otherwise to any part of the Building;

 

(e)                                  in exercise of a right or to comply with an obligation of repair, maintenance or renewal under this Lease; or

 

(f)                                   to provide the Services in accordance with the provisions of schedule 7.

 

Provided that the Landlord may only exercise such entry to the extent that the Landlord cannot otherwise reasonably do any of the matters referred to in this Clause 3,21 from outside the Premises,

 

3.22                        Comply with notices to repair

 

(a)                                 To carry out all reasonable works necessary to remedy any material breach of covenant of which the Landlord has given proper written notice to the Tenant within two months (or sooner if necessary) after receipt of written notice.

 

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(b)                                 if the Tenant fails to comply with a notice served under clause 3.22(a) to the Landlord’s reasonable satisfaction, the Landlord may (without prejudice to the Landlord’s right of re-entry contained in this Lease) enter the Premises to carry out such works, and the Tenant will to pay to the Landlord on demand as a debt all proper costs and expenses properly incurred by the Landlord In carrying out such works.

 

3.23                        Costs

 

To pay the Landlord all proper costs and expenses (including bailiffs’ and professional fees) properly incurred by the Landlord (both during and after the end of the Term):

 

(a)                                 for the preparation and service of:

 

(i)                                     a notice under section 146 or 147 of the Law of Premises Act 1925 or pursuant to a provision in this Lease and proceedings pursuant to such notices even if forfeiture is avoided otherwise than by relief granted by the Court; or

 

(ii)                                  a schedule of dilapidations (including any documents supporting the Landlord’s claim and valuation served in accordance with a relevant pre-action protocol) served during or within six months after the termination of this Lease (but in respect only of dilapidations arising during the subsistence of the Lease);

 

(b)                                 in the recovery or attempted recovery of arrears of rents due under this Lease from the Tenant or in the enforcement of any of the Tenant’s covenants under this Lease;

 

(c)                                  dealing with any liquidator, administrative receiver, administrator, receiver or manager, supervisor or trustee in bankruptcy of the Tenant; and

 

(d)                                 in connection with any application for the consent of the Landlord whether or not granted (unless the consent is unlawfully refused or is granted but subject to unlawful conditions) and in the case of this clause 3.23(d) any such costs and expenses will be reasonable and proper in amount and will be reasonably and properly incurred.

 

3.24                        Indemnity

 

To indemnity the Landlord against all claims and proceedings brought against and all damages, costs and liabilities suffered or incurred by the Landlord in connection with the breach of any covenant or obligation of the Tenant under the terms of this Lease,

 

3.25                        Yielding up

 

At the end of the Term:

 

(a)                                 unless otherwise requested by the Landlord prior to the end of the Term to reinstate the Premises to the reasonable satisfaction of the Landlord to their condition prior to any alteration or addition made during the Term or prior to it under any agreement to grant the Term.

 

(b)                                 unless otherwise requested by the Landlord prior to the end of the Term to remove all signs, Tenants fixtures and fittings and loose items from the Premises making good any damage caused by such removal to the reasonable satisfaction of the Landlord;

 

(c)                                  to hand over any health and safety file required to be compiled under the Construction (Design and Management) Regulations 2007;

 

(d)                                 to yield up the Premises to the Landlord with vacant possession in a state and condition consistent with the performance and observance of the Tenant’s covenants and obligations under this Lease; and

 

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(e)                                  at the end of the Term, to apply to the Land Registry to remove any entry relating to this Lease or rights appurtenant to it from the Landlord’s registered title and within 20 Business Days to deliver to the Landlord a copy of the application.

 

3.26                        Taxation

 

(a)                                 To pay VAT on any sums payable or supplies made under this Lease on the basis that all consideration under this Lease is exclusive of VAT (if any) and that such VAT will be deemed to fall due on the date the relevant sum is payable or the supply is made.

 

(b)                                 To pay on demand the VAT payable on all sums reimbursed to the Landlord under this Lease save to the extent that the Landlord is able to recover such sums as input tax.

 

(c)                                  For the purposes of VAT in respect of any supplies of goods or services made by the Landlord under this Lease, and for so long as the Landlord has exercised the option to tax, not to use or permit the use of the Premises or act in a manner as would cause the option to tax not to have effect or to cause a supply not to be a taxable supply provided always that the use by the Tenant for commercial purposes for the Permitted Use shall not be deemed to be a breach of this clause 3.26(c).

 

3.27                        Regulations

 

To observe and perform or cause to be observed and performed the Regulations.

 

3.28                        Registration of Lease

 

If this Lease is subject to registration at the Land Registry to apply to the Land Registry for registration of the Tenant as proprietor of this Lease at the Land Registry as soon as reasonably practicable and as soon as reasonably practicable following registration deliver to the Landlord official copies of the registered title evidencing that the Tenant is the registered proprietor.

 

4.                                      Landlord’s Covenants

 

The Landlord covenants with the Tenant as follows:

 

4.1                               Quiet enjoyment

 

That the Tenant will peaceably and quietly hold and enjoy the Premises during the Term without any interruption by the Landlord or by any person lawfully claiming through, under or in trust for the Landlord.

 

4.2                               Services

 

(a)                                 The Landlord shall use all reasonable endeavours to provide the Services:

 

(b)                                 Despite clause 4,2(a) the Landlord is not obliged to provide Services to the extent only that:

 

(i)                                     it is temporarily prevented from doing so by circumstances beyond its control, including breakdown, damage, the need for inspection, maintenance, repair or replacement, shortage of fuel, equipment or materials or inclement weather; or

 

(ii)                                  the Services cannot reasonably be provided temporarily because the Landlord is temporarily inspecting or doing works to the Building or the External Areas provided that the Landlord reinstates the Services immediately following the inspection or works (as appropriate); or

 

(iii)                               the Landlord has varied or discontinued the Services in accordance with clause 4.2(c);

 

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but in the circumstances envisaged in clauses 4,2(b)(i) and 4,2(b)(ii) the Landlord shall restore the Services affected as soon as reasonably practicable and shall keep any temporary Interruption to a minimum.

 

(c)                                  The Landlord (acting reasonably and properly) may add to, vary or discontinue any of the Services where it reasonably considers it appropriate to do so having regard to the principles of good estate management and the Tenant’s use and enjoyment of the Property in accordance with the provisions of this Lease provided that where the extent nature or quality of any Service may be varied the Landlord shall act reasonably and properly in deciding the extent, nature and quality of the relevant Service and any discontinuance or withholding which materially adversely affects the Tenant’s use and enjoyment of the Premises or the exercise of the rights granted under Schedule 1 may only be on a temporary basis.

 

(d)                                 In the case of Services involving the need to react to disrepair or other circumstances, the Landlord shall not be liable for any failure to react and thus provide the relevant Service until such time as the Landlord has notice of the disrepair or other circumstances and has failed within a reasonable time (which shall be an urgent response in the case of emergency) to provide the relevant Service,

 

5.                                      Forfeiture

 

5.1                               “Insolvent” means (by reference to the relevant provisions of the Insolvency Act 1986 and the Insolvent Partnership Order 1994 (as the case may be)):

 

(a)                                 In relation to a company or other corporation which is the Tenant or a Guarantor:

 

(i)                                     passes a resolution for its winding up or is the subject of a winding up or dissolution order (other than in respect of a solvent voluntary liquidation for the purpose only of reconstruction or amalgamation);

 

(ii)                                  enters into any composition in satisfaction of its debts or any scheme or arrangement of its affairs (company voluntary arrangement) or assignment for the benefit of Its creditors;

 

(iii)                               is the subject of an administration order;

 

(iv)                              the appointment of a receiver administrative receiver administrator or similar officer over any of its business or assets; or

 

(b)                                 in relation to an individual who is the Tenant or a Guarantor:

 

(i)                                     is the subject of a bankruptcy order;

 

(ii)                                  enters Into a composition in satisfaction of his debts or a scheme of arrangement of his affairs (individual voluntary arrangement);

 

(iii)                               is the subject of an interim order; or

 

(iv)                              the appointment of a receiver or interim receiver;

 

(c)                                  in relation to a partnership which is the Tenant or a Guarantor:

 

(i)                                     is the subject of an administration order;

 

(ii)                                  the entry into a voluntary arrangement.

 

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5.2                               The Landlord may terminate this Lease by re-entering the Premises (or a part of them in the name of the whole) itself or by an authorised agent at any time if:

 

(a)                                 any rents are unpaid for 15 Business Days after the Due Date whether formally demanded or not); or

 

(b)                                 there is a material breach of the Tenant’s obligations under this Lease; or

 

(c)                                  the Tenant or any Guarantor becomes insolvent.

 

5.3                               Re-entry in exercise of the right in clause 5.2 does not affect any other right or remedy of the Landlord for breach of covenant by the Tenant occurring before the termination of this Lease (including any breach in respect of which re-entry is made).

 

6.                                      Obligations in schedules to this Lease

 

The Landlord and Tenant mutually covenant to observe and perform their respective obligations and conditions in the schedules.

 

7.                                      Miscellaneous provisions

 

7.1                               Other Premises

 

(a)                                 The Tenant is not entitled to and the Premises do not enjoy any right, easement or privilege which might limit or prejudice the unrestricted use of any other premises for any purpose whatsoever,

 

(b)                                 No rights are granted by this Lease other than those expressly set out in schedule 1 and for the avoidance of doubt the operation of section 62 of the Law of Premises Act 1925 is excluded from this Lease.

 

(c)                                  The Tenant has no benefit and no right to control the enforcement or the proposed release or modification of any covenants, obligations or any other matter relating to any other premises,

 

7.2                               Use

 

No warranty is given by the Landlord that the Premises can lawfully be used for any purpose authorised by this Lease or otherwise.

 

7.3                               Common Parts and Conduits

 

(a)                                 The Landlord acting reasonably may on reasonable written notice from time to time change the location area or arrangements for use by the Tenant of any part of the Common Parts or the Conduits so long as there remain available for the benefit of the Premises rights reasonably commensurate with those granted by this Lease,

 

(b)                                 The Landlord acting reasonably may temporarily suspend the rights granted for the benefit of the Tenant in this Lease where reasonably necessary to enable essential repair or maintenance work to be carried out provided that the Landlord uses all reasonable endeavours to reinstate such rights as soon as reasonably practicable and to minimise the period of disruption to the Tenant and any legal occupiers or their business at the Premises and where a reasonable alternative is available such reasonable alternative is offered to the Tenant and the legal occupiers of the Premises.

 

7.4                               Compensation

 

The Tenant is not entitled to claim any compensation from the Landlord whether on vacating the Premises or otherwise unless and to the extent that any statutory rights to compensation precludes the operation of this clause.

 

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7.5                               Abandoned goods

 

In addition to any other remedy available to the Landlord if any fixtures, furniture or other items are left in the Premises at the end of the Term and the Tenant does not remove them within 10 Business Days of being requested to do so then:

 

(a)                                 the Landlord may (without any obligation as trustee or bailee) sell such Premises as agent of the Tenant and hold the sale proceeds after deduction of the proper costs of removal, storage and sale on trust for the Tenant: and

 

(b)                                 the Tenant will indemnify the Landlord against any liability to a third party whose Premises has been so sold by the Landlord,

 

7.6                               Notices

 

(a)                                 Any notice to a party under this Lease 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 special delivery or fax to the address of the party as set out in the Leese Particulars or as otherwise notified in writing to the other party(ies) from time to time or, in the case of the Tenant, to the Premises.

 

(b)                                 Except as referred to in clause 7.6(c) a notice is deemed to have been served:

 

(i)                                     at the time of delivery if delivered personally;

 

(ii)                                  48 hours after posting in the case of an address in the United Kingdom and 96 hours after posting for any other address; or

 

(iii)                               2 hours after transmission if served by fax during normal business hours of the recipient, and at the opening of the next normal Business Day if not sent during such normal business hours,

 

If the deemed time of service is not during normal business hours in the country of receipt, the notice is deemed served at, or, in the case of faxes, two hours after the opening of business on the next Business Day of that country.

 

(c)                                  The deemed service provisions set out in clause 7.8(b) do not apply to:

 

(i)                                     a notice served by post, if there is a national or local disruption of postal services which affects the giving of the notice; and

 

(ii)                                  a notice served by fax, if the receiving party informs the sending party that the notice has been received in a form which is unclear,

 

(d)                                 A party to this Lease must not attempt to prevent or delay the service on it of a notice connected with this Lease.

 

(e)                                  If the receiving party consists of more than one person then a notice to one of them is notice to all.

 

7.7                               Tenant’s Break Option

 

(a)                                 The Tenant may terminate this Lease on any Break Date by giving to the Landlord not less than six months’ prior notice in writing provided that by the relevant Break Date:

 

(i)                                     The Tenant has paid the Yearly Rent up to and including the relevant Break Date but not for any period after the relevant Break Date; and

 

(ii)                                  In the case of either the Second Break Date or the Third Break Date only, the Tenant has by the relevant Break Date paid to the Landlord in cleared funds a 

 

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further sum by way of contractual compensation calculated as equivalent to three (3) months Yearly Rent (at the rate applicable immediately prior to the relevant Break Date) together with any VAT chargeable thereon, if applicable.

 

(b)                                 Subject to compliance with clause 7.7(a) only this Lease will terminate on the relevant Break Date but without prejudice to any claim in respect of any prior breach of the obligations contained in this Lease.

 

(c)                                  Time is of the essence for the purposes of this clause 7.7.

 

7.8                               New Guarantor

 

If a Guarantor becomes Insolvent or dies or has a receiver appointed under the Mental Health Act 1983, the Tenant will (if the Landlord so reasonably requires):

 

(a)                                 provide a new guarantor in place of the outgoing guarantor;

 

(b)                                 procure that the new guarantor enters into a deed in the material terms of the covenants contained in schedule 6;

 

(c)                                  pay to the Landlord within 14 days of written demand the Landlord’s reasonable and proper legal costs in connection with such deed.

 

7.9                               Landlord and Tenant (Covenants) Act 1995

 

(a)                                 The clauses of this Lease will only take effect insofar as they do not contravene the provisions of the 1995 Act.

 

(b)                                 Insofar as any provisions of this Lease contravene the provisions of the 1995 Act the relevant provisions (or if applicable, the relevant parts of them) are deemed to be deleted so far as necessary to ensure such compliance.

 

(c)                                  Any such deemed deletion does not affect the remaining provisions of this Lease.

 

7.10                        Exclusion of third party rights

 

Unless expressly provided in this Lease, no express term of this Lease or any term implied under It is enforceable pursuant to the Contract’s (Rights of Third Parties) Act 1999 by any person who is not a party to it.

 

7.11                        Governing law and jurisdiction

 

(a)                                 This Lease and any dispute, claim or obligation (whether contractual or non-contractual) arising out of or in connection with it, its subject matter or formation shall be governed by English law.

 

(b)                                 The parties irrevocably agree that the English courts Shall have exclusive jurisdiction to settle any dispute or claim (whether contractual or non-contractual) arising out of or in connection with this Lease, its subject matter or formation unless any such dispute or claim is dealt with pursuant to schedule 4 paragraph 4.2 or schedule 5 paragraph 3.

 

This Lease is executed and delivered as a deed on the date appearing at the head of the Lease Particulars.

 

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Schedule 1

 

Rights granted

 

1.                                      The right in common with the Landlord, and ail others authorised by the Landlord or otherwise entitled, for the Tenant and any occupier of the Premises at all times:

 

(a)                                 to use with or without vehicles as appropriate the External Areas designed to provide access, but the Landlord may:

 

(i)                                     erect barriers if the Landlord provides the Tenant with a key to them; and

 

(ii)                                  realign any accessway after notifying the Tenant provided that the Tenant shall at all times have access to the Car Parking Spaces and the Building,

 

(b)                                 to have access to end from the Building and the Premises at all times;

 

(c)                                  to use all Conduits and Plant serving the Premises;

 

(d)                                 to use the Common Parts for the purpose which they are designed or made available;

 

(e)                                  to have support and protection for the Premises from the remainder of the Building;

 

(f)                                   to park 58 private motor cars in the Car Parking Spaces;

 

(g)                                  to display (and maintain at all times) the name and logo of the Tenant (or the permitted occupier) on a notice board provided by the Landlord in the entrance hall of the Building and on the Common Parts at the entrance to the Premises and on each Car Parking Space, in each case in a manner approved by the Landlord such approval not to be unreasonably withheld or delayed; and

 

(h)                                 to exclusively use the toilets and washrooms on the second floor.

 

2.                                      Insofar as reasonably necessary for the use and enjoyment of the Premises for the Permitted Use the rights granted by the Transfer for the benefit of the Building and the External Areas in common with the Landlord and all others authorised by the Landlord or otherwise entitled, including the right at all times to pass with or without vehicles over the Estate Roads.

 

3.                                     Subject to clause 1.2(k) a right to enter (at all reasonable times and after giving reasonable written notice to the Landlord except in the case of emergency) such other parts of the Building as may reasonably be necessary for the purpose of the Tenant, installing any new Conduits in the Premises and carrying out any clearing of or repairs to any Conduits forming part of the Premises the Tenant doing as little damage as reasonable practicable,

 

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Schedule 2

 

Exceptions and Reservations

 

1.                                      Subject to clause 1.2 (k) the right for the Landlord:

 

1.1                               whether by itself, or in agreeing or consenting to others doing so, to do works on, or to use, any Neighbouring Premises in whatever manner the Landlord desires or allows, even if:

 

(a)                                 the access of light and air to the Premises; and

 

(b)                                 any other amenity enjoyed by them;

 

is affected in any way (but not so as to derogate from the rights granted in schedule 1);

 

1.2                               to use any Conduits or Plant in the Premises;

 

1.3                               to enter the Premises only where entry is required to the extent any works are reasonably necessary and can not reasonably or practicably be carried out without such entry.

 

(a)                                 to install or do any works to the Plant;

 

(b)                                 to lay, connect to, re-route or do anything else in relation to Conduits serving Neighbouring Premises;

 

(c)                                  to inspect or do any works or anything else in relation to the riser cupboards within the Premises;

 

(d)                                 where it is reasonably necessary to provide the Services referred to in part 1 of schedule 7);

 

(e)                                  to inspect, clean, alter, repair, maintain, renew, demolish or rebuild any part of the Building;

 

(f)                                   for any purposes referred to elsewhere in this Lease.

 

1.4                               to erect temporary scaffolding outside the Building provided that (save in the case of emergency or where the scaffolding is required to remedy a breach by the Tenant of its obligations under this Lease) the Landlord shall first notify the Tenant of the proposal to erect scaffolding and shall have regard to any reasonable representation the Tenant may make and wherever the Landlord or some other person on its behalf or with its authority exercises any right to erect or maintain scaffolding outside or affixed to the Premises the Landlord shall use all reasonable endeavours to procure:

 

(a)                                 That the scaffolding is removed as soon as practicable on completion of the relevant works and remains in situ for the minimum practical period to enable the relevant works to be carried out; and

 

(b)                                 That the person erecting such scaffolding shall make good all physical damage caused to the Premises and/or Building as soon as reasonably practicable after the removal of the same

 

1.5                               to have support and protection for the Building from the Premises.

 

2.                                      The exceptions and reservations contained in the Transfer.

 

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Schedule 3

 

Matters to which the Lease is subject

 

All deeds and documents contained or referred to in the register of Title Number CB170451 as at 2 February 2011 at 12:58:01

 

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Schedule 4

 

Insurance provisions

 

1.                                      Landlord’s covenant

 

The Landlord will keep the Building insured with an insurer of repute (subject to such excesses, conditions and limitations as the insurers may require or the Landlord may negotiate) against:

 

1.1                              damage or destruction by all of the Insured Risks in a sum equal to the Landlord’s reasonable estimate from time to time (acting reasonably) of the full reinstatement cost of the Premises including:

 

(a)                                 the costs of demolition, shoring up and site clearance works;

 

(b)                                 all architects’ surveyors’ and other professional fees and incidental expenses in connection with reinstatement; and

 

(c)                                  VAT liability on such items to the extent applicable and to the extent that the Landlord may not be able to recover VAT.

 

1.2                               not less than 3 year’s loss of the Yearly Rent;

 

1.3                               third party and public liability risks; and

 

1.4                               liability under the Defective Premises Act 1972 (and any other enactment in respect of which the Landlord requires insurance).

 

2.                                      Tenant’s covenants

 

The Tenant will:

 

2.1                               not do or omit to do anything which may render any insurance policy relating to the Premises void or voidable in whole or part;

 

2.2                               not do or omit to do anything which may result in the increase of any premium payable under any insurance policy and if such increased premium becomes payable nonetheless pay to the Landlord within 14 days of demand the amount of such increase;

 

2.3                               comply with all lawful requirements of the insurers in relation to the Premises notified in writing to the Tenant and in particular (but not by way of limitation) Install and maintain such fire equipment and observe such fire precautions as the insurers and the fire authority require;

 

2.4                               notify the Landlord as soon as practicable upon becoming aware of any loss or damage relating to the Premises;

 

2.5                               not effect any insurance which duplicates the insurance effected by the Landlord in relation to the Premises and if the Tenant does so in breach of this paragraph, it will hold any such policy and any proceeds received upon trust for the Landlord and pay such proceeds to the Landlord immediately upon receipt;

 

2.6                               pay to the Landlord within 14 days of written demand any proper sums under an insurance policy relating to the Premises which:

 

(a)                                 the Landlord is unable to recover owing to the act, neglect or default of the Tenant or any occupier of the Premises;

 

(b)                                 relate to any excess to which the insurance cover is subject provided that in the case of such excess the Tenant shall only be liable to pay its Due Proportion,

 

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3.                                      Reinstatement

 

3.1                               If the Building, the Premises or any of the Common Parts or External Areas reasonably required for the use of the Premises in accordance with this Lease are damaged or destroyed by any of the Insured Risks, the Landlord will (unless and to the extent the insurance has been vitiated by the Tenant or any occupier of the Premises) apply the net insurance proceeds (other than any received in respect of loss of the Yearly Rent) and any money paid by the Tenant pursuant to paragraph 2,6 in repairing or reinstating the Building, the Premises and/or any such Common Parts or External Areas with all due speed subject to:

 

(a)                                 the Landlord obtaining any necessary planning and other permissions, consents, licences and approvals (which the Landlord will use its reasonable endeavours to obtain but the Landlord will not be obliged to institute or pursue any appeal);

 

(b)                                 the necessary labour and materials being available (which the Landlord will use all reasonable endeavours to obtain as soon as practicable); and

 

(c)                                  the payment by the Tenant to the Landlord of any money payable under paragraph 2.6.

 

3.2                               The Landlord will not be obliged to reinstate the Premises and/or any such Common Parts in precisely the same form as previously so long as the Tenant is provided with accommodation and facilities which are reasonably comparable to those existing before the damage or destruction.

 

4.                                      Rent abatement

 

4.1                               If the Premises or any of the Common Parts reasonably required for the use of the Premises in accordance with this Lease are destroyed or damaged by any of the Insured Risks so as to render the Premises unfit for occupation and use (and/or inaccessible), then (provided that the insurance and the recovery of any monies under it has not been prejudiced (either in whole or part) by the act, neglect or default of the Tenant or any occupier of the Premises the Yearly Rent and Service Charge (or a fair proportion of them according to the nature and extent of the damage) ceases to be payable until the Premises and/or any such Common Parts are again fit for occupation and use and accessible or, if earlier, until expiry of the period insured for the loss of the Yearly Rent.

 

4.2                               Any dispute concerning the amount or duration of such abatement of the Yearly Rent and Service Charge will be determined in accordance with the Arbitration Act 1996 by an arbitrator appointed in default of agreement between the parties by the President of the Royal Institution of Chartered Surveyors on the application of either party,

 

5.                                      Option to determine

 

5.1                               If the Premises (or any part) or any part of the Common Parts or External Areas required for the use of the Premises and the exercise of the rights granted to the Tenant in accordance with this Lease, are destroyed or damaged by an Insured Risk and the Landlord has not commenced rebuilding or reinstating the Premises and/or any such Common Parts and/or External Areas within two years of the damage or destruction occurring for any reason beyond the control of the Landlord either the Landlord or the Tenant may terminate this Lease with immediate effect by giving to the other written notice to that effect at any time after the expiry of the period of 2 years,

 

5.2                               If at the date of expiry of the period from time to time insured for loss of the Yearly Rent all destruction or damage by an Insured Risk to the Premises or any of the Common Parts or External Areas required for the use of the Premises and the exercise of the rights granted to the Tenant in accordance with this Lease have not been reinstated and made good and the Premises are still unfit for occupation and use and/or inaccessible, the Landlord or the Tenant may by written notice to the other given at any time within six months after such date and whilst the Premises are still unfit for occupation and use and/or inaccessible determine the Term with immediate effect.

 

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5.3                               Any determination of this Lease under this paragraph will be without prejudice to any claim in respect of any antecedent breach of the obligations under this Lease.

 

6.                                      Retention of insurance proceeds

 

On the termination of this Lease under paragraph 5, or if this Lease is terminated by the operation of the doctrine of frustration, the Landlord will be entitled to retain the insurance proceeds for its exclusive benefit.

 

7.                                      Uninsured Damage

 

The following provisions apply in the event of Uninsured Damage:

 

7.1                               Within six (6) months following any Uninsured Damage occurring the Landlord will give written notice to the Tenant (an “Election Notice”) stating whether or not it proposes to rebuild or reinstate the Building, the Premises and the External Areas which has been the subject of the Uninsured Damage.

 

7.2                               If the Election Notice states that the Landlord proposes to rebuild or reinstate the Premises and the External Areas then for the purposes of this Lease the Uninsured Damage shall be deemed to have been damage by Insured Risks, and the provisions of paragraphs 3 and 5.1 will apply and in such circumstances the Landlord will use its own moneys in the place of the insurance proceeds to effect such rebuilding or reinstatement;

 

7.3                               If the Election Notices states that the Landlord does not propose to rebuild or reinstate the Premises and/or the External Areas or if no Election Notice is served strictly within the period of six months referred to in paragraph 7.1 then the Tenant may at any time after service of the Election Notice or the expiry of such six month period (as the case may be), give written notice to the Landlord to determine the Term with immediate effect and the provisions of paragraph 5.3 shall apply.

 

7.4                              The Yearly Rent and Service Charge (or a fair proportion of them according to the nature and extent of the damage) ceases to be payable from the date of occurrence of the Uninsured Damage until the earlier of the termination of the Lease pursuant to Clause 7.3 and the date on which the Premises are again fit for occupation and use and accessible.

 

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Schedule 5

 

Rent Review Provisions

 

1.                                      Upwards only rent review

 

Until the Review Date the Yearly Rent will be the Initial Rent and thereafter during each successive Review Period the Yearly Rent will be whichever is the greater of:

 

1.1                               the Yearly Rent reserved by this Lease immediately prior to the Review Date; and

 

1.2                               the Open Market Rent agreed or in default of agreement determined in accordance with this schedule,

 

2.                                      Open Market Rent

 

The Open Market Rent will be the annual rent at which the Premises might be expected to be let in the open market on the Review Date:

 

2.1                               as a whole by a single lease;

 

2.2                               by a willing landlord to a willing tenant;

 

2.3                               with vacant possession;

 

2.4                               following the expiry of any period at the beginning of the term which might be negotiated in the open market for the purpose of fitting out only, during which no rent or a concessionary rent is payable;

 

2.5                               without a fine or premium;

 

2.6                               for a term of 5 years commencing on the Review Date with a tenant’s break option at the end of the second and third years;

 

2.7                               otherwise on the same terms (other than as to the amount of the Yearly Rent but including provisions for rent review at 5 yearly intervals) as contained in this Lease;

 

2.8                               on the assumptions that:

 

(a)                                 the Premises are ready to receive the willing tenants fitting out works but are otherwise fit and available for immediate occupation and use;

 

(b)                                 all obligations contained in this Lease on the part of the Landlord and the Tenant have been fully complied with;

 

(c)                                  if the Premises or any premises of which they form part or any part of them have been damaged or destroyed they have been fully reinstated;

 

(d)                                 the Premises may be lawfully used for the Permitted Use;

 

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2.9                               but disregarding any effect on rent of:

 

(a)                                 the fact that the Tenant or any undertenant or any of their respective predecessors in title or any other occupier of the Premises has been or is in occupation of the Premises;

 

(b)                                 any goodwill attaching to the Premises by reason of any business carried on at the Premises the Tenant or any permitted undertenant or other permitted occupier of the Premises or any predecessor in title to such business;

 

(c)                                  any effect on rent attributable to the existence of any alteration or improvement to the Premises completed at the expense of the Tenant or a permitted undertenant or any of their respective predecessors in title or any other authorised occupier (including the Tenant’s fit out works) with the consent of the Landlord during the Term or prior to the Term under an agreement for the grant of this lease and not in pursuance of an obligation to the Landlord or its predecessors in title provided that any obligation in any licence for alterations requiring the work thereby permitted to be carried out to a certain standard or regulating the manner or the time within which such works are to be carried out or obligations requiring compliance with any statute, order or regulations or requirements of the Landlord’s insurers shall not be deemed to be an obligation to the Landlord or its predecessors In title;

 

(d)                                 any work carried out to the Premises which has diminished the rental value of the Premises at the Review Date; and

 

(e)           so far as may be permitted by law any Rent Restrictions.

 

3.                                      Determination by the Review Surveyor

 

3.1                               The Open Market Rent may be agreed in writing between the Landlord and the Tenant at any time but if the Landlord and the Tenant have not agreed the Open Market Rent three months prior to the Review Date then:

 

(a)                                 either party may require that it be determined by the Review Surveyor;

 

(b)                                 in default of agreement between the Landlord and the Tenant as to the identity of the Review Surveyor either party may apply to the President of the Royal Institution of Chartered Surveyors or his nominee for the appointment of the Review Surveyor.

 

3.2                               The Review Surveyor will act as an arbitrator in accordance with the Arbitration Act 1996 unless prior to his appointment as an arbitrator the Landlord and the Tenant agree in writing that he should be appointed as an expert.

 

3.3                               If the Review Surveyor acts as an expert:

 

(a)                                 he will give both parties the opportunity to make representations to him before making his determination and will have due regard to those representations (but he will not he bound to take them into account in reaching his decision);

 

(b)                                 he will be entitled to order that the costs of the determination be borne by the parties in whatever proportions he may prescribe and if no order is made they will be borne equally and the parties will otherwise bear their own costs; and

 

(c)                                  his determination will be final and binding (save as to questions of law or in case of manifest error).

 

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3.4                               In any event:

 

(a)                                 if requested by either party in writing the Review Surveyor will be bound to provide detailed reasons for his determination;

 

(b)                                 if either party falls to pay any sums in respect of the Review Surveyors costs of the determination then the other party may make such payment and will be entitled to recover the cost from the first party on demand; and

 

(c)                                  if the Review Surveyor dies or becomes unwilling to act or incapable of acting for any reason or fails to act with reasonable expedition another surveyor will be appointed in his place in a like manner and this process may be repeated as many times as necessary.

 

4.                                     Interim payment

 

4.1                               If the reviewed Yearly Rent has not been agreed or the Review Surveyors determination has not been published before the Review Date:

 

(a)                                 the Tenant will continue to pay Yearly Rent at the rate applicable immediately prier to the Review Date; and

 

(b)                                 if the reviewed rent when agreed or determined is greater than the Yearly Rent reserved by this Lease immediately prior to the Review Date the Tenant will within 14 days of the reviewed rent having been agreed or determined, pay to the Landlord an amount equal to the difference between the reviewed rent and the Yearly Rent actually paid for the period since the Review Date together with Interest (calculated at 3% below the Interest Rate for the purposes of this schedule only) on such sum.

 

4.2                               If any Rent Restrictions are in force at the Review Date:

 

(a)                                 if the Rent Restrictions prohibit or restrict the right of the Landlord to review the Yearly Rent on the Review Date in accordance with the terms of this Lease the Landlord may on each occasion that any such Rent Restriction is removed or relaxed require the rent to be reviewed by giving notice in writing to the Tenant expiring on or after the date of each such removal or relaxation; and

 

(b)                                 if the Rent Restrictions prohibit or restrict the right of the Landlord to collect any increased Yearly Rent following a rent review such increased Yearly Rent wilt remain due and payable as between the Landlord and the Tenant and will be paid to the Landlord following the removal or relaxation of the Rent Restrictions (to the extent then permitted) in accordance with paragraph 4.1(b) as if the removal or relaxation of the Rent Restriction were the agreement or determination of the rent review.

 

5.                                      Memorandum of reviewed rent

 

As soon as possible after the reviewed rent is agreed or determined pursuant to this schedule, a memorandum recording the outcome of the review will be signed on behalf of the Landlord and the Tenant respectively.

 

6.                                      Time not of the essence

 

Time is not of the essence for the purposes of this schedule.

 

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Schedule 6

 

Guarantor Covenants

 

1.

 

1.1                               The Guarantor covenants with the Landlord (as principal and not merely as surety) that at all times during the Term when the Tenant is bound by the Tenant Covenants of this Lease (whether directly or indirectly) (the “Liability Period”) the Tenant will pay the Yearly Rent and observe and perform the Tenant’s obligations in accordance with this Lease and if the Tenant defaults the Guarantor will pay and make good to the Landlord on demand all losses, damages, costs and expenses incurred by the Landlord or arising as a result of the Tenant’s default.

 

1.2                               The Guarantor’s guarantee made pursuant to paragraph 1.1 of this schedule 6 shall at all times be a continuing security and shall cover the ultimate balance of all monies payable by the Tenant to the Landlord under this Lease irrespective of any intermediate payment or discharge in full or in part of the Guarantor’s obligations to the Landlord under this Lease.

 

2.                                      The Guarantors liability under paragraph 1.1 will be unaffected by:

 

2.1                               any delay of the Landlord in enforcement of any breach;

 

2.2                               any time or indulgence given to the Tenant by the Landlord;

 

2.3                               any refusal by the Landlord to accept any payment from the Tenant or any failure to demand such payment following the breach of any obligation;

 

2.4                               any agreement with the Tenant, any licence or consent granted to the Tenant or any variation of the terms of this Lease;

 

2.5                               the Tenant ceasing to exist; or

 

2.6                               any increase or reduction in the Premises or the Yearly Rent (but not so as to render the Guarantor liable in relation to any premises surrendered in respect of the period after such surrender).

 

3.                                      The Guarantor covenants with the Landlord (as principal and not merely as surety) that at all times during the Liability Period when the Tenant is bound by an Authorised Guarantee Agreement the Tenant will fulfil Its obligations under that agreement and if the Tenant defaults the Guarantor will on demand do so instead and indemnify the Landlord against all consequences of that failure notwithstanding:

 

3.1                               any time or indulgence given to the Tenant by the Landlord;

 

3.2                              any variation of the terms of the Authorised Guarantee Agreement by agreement between the Landlord and the Tenant;

 

3.3                               any other act, matter or thing apart from the express release in writing of the Guarantor by the Landlord.

 

4.                                      If this Lease is disclaimed following the liquidation or bankruptcy of the Tenant or is forfeited or the Tenant (being a company) is struck off or ceases to exist (the “Event”) the Guarantor will:

 

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4.1                               if required by the Landlord in writing within six months after the date the Landlord receives written notice of the Event accept (and execute and deliver to the Landlord the counterpart of) a new lease of the Premises for a term equal to the residue of the Term from the date of the Event at the then current Yearly Rent and otherwise on the same terms as the Lease and pay the legal costs of such new lease; or

 

4.2                               (if the Landlord does not require the Guarantor to take a new lease of the Premises pursuant to paragraph 4.1) pay to the Landlord on demand an amount equal to the difference between any money received by the Landlord for the use and occupation of the Premises and (if higher) the Yearly Rent and any other sums which would have been payable had the Event not occurred for the period from the date of the Event until whichever is the earlier of:

 

(a)                                 the date six months after receipt of notice of the Event; and

 

(b)                                 the date upon which the Premises are wholly relet provided that for the purpose of this paragraph 4.2 the Premises shall not be deemed to have been relet until the expiry of any rent free period granted by the Landlord to the ingoing tenant,

 

5.                                      If on the commencement date of the new lease of the Premises granted pursuant to paragraph 4,1 a Review Date has occurred but the reviewed Yearly Rent has not been agreed or determined then the rent first reserved by such new lease will initially be equal to the Yearly Rent payable under this Lease immediately prior to such Review Date but the second day of the term of such new lease will be an additional Review Date.

 

6.                                      Where two or more persons have guaranteed the obligations of the Tenant the release of one or more of them will not release the other(s).

 

7.                                      Until the Guarantor has fully satisfied all its obligations to the Landlord under this Lease the Guarantor will not seek to exercise any right or remedy against the Tenant or its assets nor accept any security therefor nor any assets in satisfaction of such liability and such rights and remedies will rank in all respects after the obligations to the Landlord under this Lease,

 

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Schedule 7

 

Part I - Services

 

1.                                      Building

 

The Fabric of the Building

 

1.1                               Inspecting, cleaning, decorating and keeping in good and substantial repair and condition:

 

(a)                                 The foundations, roof, structure and outside of the Building;

 

(b)                                 The Common Parts;

 

(c)                                  Plant and Conduits (but not those within and exclusively service the Premises or Lettable Areas);

 

(d)                                 Any access pass system operated by the Landlord at the Building and where such system is operated the provision of a reasonable number of access pass cards to the relevant tenants; and

 

(e)                                  Any other parts of the Building and External Areas not comprised in Lettable Areas.

 

1.2                               Providing utility supplies to and drainage from the Building.

 

1.3                               Entering into maintenance and any other requisite contracts in relation to the Plant,

 

The Common Parts and External Areas

 

1.4                               Outside window-cleaning,

 

1.5                               Lighting the Common Parts and the Car Park,

 

1.6                               Carpeting, furnishing and equipping the Common Parts.

 

1.7                               Providing heating, air conditioning and hot and cold water to the Building including the toilets on the second floor of the Building.

 

1.8                               Equipping and cleaning any toilets in the Common Parts including the toilets on the second floor of the Building.

 

1.9                              Providing appropriate signage both in the Common Parts and External Areas.

 

1.10                        Providing refuse bins and the operation of a refuse collection service.

 

1.11                        Providing security for the Building and the External Areas, including patrols, observation and communications systems, and installing additional equipment.

 

1.12                        Cleansing and maintaining the External Areas, including tending any landscaping.

 

1.13                        Pest control,

 

1.14                        Providing, either permanently or at times which the Landlord (acting reasonably) considers appropriate, pictures, plants, floral displays and other decorations in the Common Parts,

 

1.15                        Paying rates, taxes or assessments on the Common Parts, the External Areas and any property used exclusively (or substantially so) for providing the Services,

 

1.16                        Provision of a security guard during Business Hours,

 

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Legal Compliance

 

1.17                        In relation to the Building (except Lettable Areas) and the External Areas:

 

(a)                                 Complying with all laws and the matters subject to which this Lease is granted.

 

(b)                                 Doing any works and providing any services, facilities or Plant as may be required by law.

 

1.18                        Providing fire prevention, fire fighting and fire alarm equipment and signage as may be required by law, a competent authority or insurers (other than anything which tenants of Lettable Areas must provide,

 

1.19                        Making representations against, or otherwise contesting the incidence of, any legal requirement or prospective legal requirement which will or may affect the Building or the External Areas.

 

1.20                        Payments which the Landlord may be required to make:

 

(a)                                 To other persons in respect of the matters subject to which this Lease is granted; and

 

(b)                                 To the repair, decoration, inspecting, testing, maintenance or renewal of any areas, facilities, structures or amenities used by the Building. or External Areas in common with other property or persons.

 

1.21                       Enforcing the Regulations and any covenants against occupiers of the Building,

 

Staff and Agents

 

1.22                        Engaging the Managing Agent or, if the Landlord does not engage an independent Managing Agent, a sum payable to the Landlord equal to 10% of the Service Charge and Estate Service Charge,

 

1.23                        Employing staff in connection with the Services, including all Incidental expenditure such as pensions, national and other welfare insurance, training, redundancy, clothing, tolls, machinery, equipment and vehicles which, in each case, the Landlord considers are required for the proper performance by the staff of their duties or which arise out of the employment of the staff by the Landlord.

 

1.24                        Engaging professional advisers in relation to the delivery of any Services and the incidence and recovery of the Service Charge and the Estate Service Charge,

 

General

 

1.25                        Dealing with insurance claims relating to the Building, the Common Parts and the External Areas,

 

1.26                        Leasing any item required in connection with the Services.

 

1.27                        Preparing and issue of certificates, accounts and audits in respect of the Service Charge and the Estate Service Charge and each tenant’s service charge.

 

1.28                        Payment of irrecoverable VAT.

 

1.29                        Doing other works or providing other services which the Landlord (acting reasonably) considers appropriate for maintaining or improving services in the Building and the External Areas for the benefit of tenants in the Building generally, having regard to the principles of good estate management.

 

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2.                                      Estate

 

2.1                               To clean maintain service repair rebuild renew reinstate and where appropriate wash down treat repaint and redecorate and otherwise keep in good condition:

 

(a)                                 the Estate Roads the lake and other landscaped areas the Estate lighting system the Estate signboards the boundary walls and fences of the Estate and all other parts of the Estate and the facilities thereon the use and enjoyment of which is common to the tenants of the Building and the other tenants or occupiers on the Estate

 

(b)                                 all Conduits the use of or benefit from which is common to the tenants of the Building and the other tenants or occupiers on the Estate

 

2.2                               To provide maintain renew replace repair and keep in good and serviceable order and condition all fixtures and fittings bins receptacles tools appliances materials and other things which the Landlord (acting reasonably) may in the interests of good estate management deem reasonably desirable or reasonably necessary for the maintenance upkeep or cleanliness on the Estate

 

2.3                               To employ such staff or contract for the services of such firms or companies as the Landlord may at its reasonable discretion deem reasonably desirable or reasonably necessary to enable the Landlord to carry out its obligations hereunder in relation to the Estate or any of them and for the general conduct management and security of the Estate and all parts thereof

 

2.4                               To bear pay and discharge all existing and future rates (including water rates) taxes duties assessments charges (including metered water charges) impositions and outgoings whatsoever assessed charged and imposed upon the Estate or on the owner in respect thereof but excluding any assessment made in respect of the Building or any other premises on the Estate demised or intended to be demised to a tenant on terms that the tenant is responsible for such outgoings

 

2.5                               To maintain cultivate and as and when necessary to re-plant all the landscaped areas on the Estate

 

2.6                               To clean maintain the lake and stock the same with fish

 

2.7                               To provide reasonable lighting of the common parts of the Estate

 

2.8                               The insurance of the common parts of the Estate in accordance with the Transfer

 

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Part 2 - Service Charge

 

1.

 

1.1                              “Annual Service Cost” in each Accounting Period shall be the aggregate of the sums actually and properly expended or liabilities properly incurred by the Landlord in connection with the following matters:

 

(a)                                the reasonable and proper cost of providing those Services set out in paragraph 1 of part 1 of schedule 7

 

(b)                                the reasonable and proper cost of taking out and maintaining in force an effective insurance policy or policies against any claim or liability which the Landlord may reasonably deem prudent in connection with the management and/or maintenance of the Building

 

(c)                                 the reasonable and proper cost of employing (whether by the Landlord or the Managing Agent or any other individual firm or company) such staff as the Landlord may in its reasonable discretion deem necessary for the performance of those Services set out in paragraph 1 of part 1 of schedule 7 and all reasonable and proper incidental expenditure in relation to such employment including insurance pension and welfare contributions transport facilities the provision of uniforms and working clothes and the provision of necessary accommodation (but not residential accommodation) either in the Building the Estate or elsewhere

 

(d)                                the reasonable and proper cost of the carrying out of other work or providing services of any kind whatsoever which may be reasonably necessary for the purpose of maintaining or improving services to the Building for the benefit of the occupiers of the Building as a whole

 

(e)                                 all reasonable and proper fees and expenses (and any VAT payable on them) payable to any person firm or company whom the Landlord may from time to time employ in connection with the general management administration security maintenance protection and cleansing of the Building including the performance of the Landlord’s covenants and the cost of collecting the service charge and preparing statements of the Annual Service Cost

 

(f)                                  the reasonable and proper cost of complying with all statutory requirements regulations or requirements of any competent local or other authority relating to the Building insofar as such requirements are not the obligation of the Tenant or other tenants or occupiers of the Building

 

(g)                                 the reasonable and proper cost of the Landlord of abating a nuisance in respect of the Building or any part thereof insofar as the same is not the liability of any individual tenant

 

(h)                                the reasonable and proper cost of the provision of electricity for the Common Parts and the lift

 

(i)                                    provided that there shall be excluded from the Service Charge:

 

(i)                                    any expenditure on any part of the Building for which any other tenant shall be directly responsible;

 

(ii)                                 the initial construction and equipping of the Premises or the Building or any subsequent development or redevelopment of the Building including any costs and expenditure in respect of the replacement of the roof of the Building (whether the same occurs prior to or after the date of this Lease) and the cost of any expenditure relating to the remedying of any defects in the roof repair and/or replacement works carried out by the roofing contractor appointed by the Landlord to carry out such work in compliance with the Landlord’s obligation in 

 

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the agreement for this Lease and any expenditure in respect of any upgrade in the specification of the air conditioning plant on the roof of the Building;

 

(iii)                              collection of rents (other than Service Charge) the review of rents and the letting of other dispositions within the Building;

 

(iv)                             any loss or damage resulting from an Insured Risk excluding any excess which is standard for the class of insurance which is attributable to the Common Parts;

 

(v)                                the carrying out of any work or any expenditure in relation to Lettable Units which works or expenditure would be the responsibility of the tenant of such Lettable Units if it was demised by a lease containing provisions similar to those contained in this Lease;

 

(vi)                             enforcing covenants against any tenant or occupier of any part of the Building;

 

(vii)                          expenditure to the extent that the amount of it is recovered by the Landlord from any party other than a tenant or occupier of Lettable Units pursuant to the service charge payable by such tenant or occupier;

 

(viii)                       all costs relating to the replacement or other substantial works (but not ongoing maintenance contracts) carried out to or in respect of any air conditioning plant which exclusively serves one or more other Lettable Units in the Building but which does not serve the Premises;

 

(ix)                             all auditors’ fees other than in respect of auditing the service charge accounts once a year;

 

(x)                                all costs relating to the replacement of any items except where the same are uneconomic to repair;

 

(xi)                             the amount by which the service charge for any other tenant or occupier of the Building exceeds any service charge cap for such tenant or occupier.

 

1.2                              “Interim Service Charge” means such reasonable sum to be paid on account of the Service Charge in respect of each Accounting Period as the Landlord shall specify the first payment of the Interim Service Charge (on account of the Service Charge for the Accounting Period during which this lease is executed) shall be made on the execution hereof and thereafter shall be paid by equal payments in advance on the 24 June and 25 December in each year and in case of default shall be recoverable as rent in arrear

 

1.3                              “Service Charge”‘ means a fair and reasonable proportion of the Annual Service Cost in relation to the Building in respect of each calendar year running from 1 January and ending on 31 December next following or such other period as the Landlord may determine (“Accounting Period”)

 

3.                                     As soon as practicable after the end of each Accounting Period (and the Landlord shall use all reasonable endeavours to provide the same within 6 months of the end of each Accounting Period) the Landlord will submit to the Tenant an itemised statement certified by the auditor for the time being of the Landlord or of the Managing Agents (“Auditor”) containing the following information:

 

(a)                                the amount of the Annual Service Cost

 

(b)                                the amount of the interim Service Charge paid by the Tenant in respect of that Accounting Period together with any surplus carried forward from the previous Accounting Period

 

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(c)                                 the amount of the Service Charge in respect of that Accounting Period and of any excess or deficiency of the Service Charge over the Interim Service Charge

 

2.                                     The Certificate of the Auditor as to the amount of the Annual Service Cost and as to the amount of the Service Charge in respect of the Demised Premises in any Accounting Period shall (save In the case of manifest error) be conclusive and binding on the Landlord and the Tenant

 

3.                                     If the Interim Service Charge paid by the Tenant in respect of any Accounting Period exceeds the Service Charge for that period the surplus of the interim Service Charge so paid over and above the Service Charge shall be paid by the Landlord to the Tenant within ten (10) working days of being ascertained

 

4.                                     If the Service Charge in respect of any Accounting Period exceeds the Interim Service Charge paid by the Tenant in respect of that Accounting Period together with any surplus from previous years carried forward as aforesaid then the Tenant shall pay the excess to the Landlord within 28 days of service upon the Tenant of the statement referred to above and in case of default the same shall be recoverable from the Tenant as rent in arrear

 

5.                                     Any disagreement or dispute between the parties relating to the Service Charge shall be referred to an independent surveyor acting as an expert appointed jointly by the Landlord and Tenant or in the case of dispute an independent surveyor of at least ten years standing with experience of service charge disputes nominated at the request of either the Landlord or of the Tenant by or on behalf of the President for the time being of the Royal Institution of Chartered Surveyors (whose nomination shall be binding on the parties hereto)

 

36

 

Schedule 8

 

Estate Service Charge

 

1.

 

1.1                              “Estate Service Charge” means a fair and reasonable proportion of the Building’s Proportion of the Estate Annual Service Cost in respect of each calendar year running from 1 January and ending on 31 December next following or such other period as the Landlord may determine (“Accounting Period”)

 

1.2                              “Interim Estate Service Charge” means such fair and reasonable and proper sum to be paid on account of the Estate Service Charge in respect of each Accounting Period as the Landlord shall reasonably specify.  The first payment of the Interim Estate Charge (on account of the Estate Service Charge for the Accounting Period during which this Lease is executed) shall be made on the execution hereof and thereafter shall be paid by equal payments in advance on 24 June and the 25 December in each year and in case of default shall be recoverable as rent in arrear

 

1.3

 

(a)                                “Building’s Proportion” means the proportion which the Area of the Building bears to the Total Estate Area

 

(b)                                “Area” means the net lettable area of the Building measured in accordance with the Code of Measuring Practice issued by the Royal Institution of Chartered Surveyors from time to time

 

(c)                                 “Total Estate Area” means the aggregate of the net lettable areas of all the buildings on the Estate from time to time (including the Building) which are either let or if unlet are or were constructed or adapted for letting from time to time and measured In accordance with 1.3(b) above

 

(d)                                If at any time during the Term there is a change in the Total Estate Area the Landlord’s Surveyor shall give notice in writing of such change to the Tenant and the resulting variation of the Building’s Proportion shall be agreed between the parties or (in default of agreement within two months of the service of the Landlord’s Surveyor’s notice) determined by the Landlord’s Surveyor (acting as an expert and not as an arbitrator)

 

If the Landlord’s Surveyor’s notice is served during the first half of the Accounting Period the variation of the Building’s Proportion agreed or determined as provided above shall take effect from the beginning of that Accounting Period If the Surveyor’s notice is served during the second half of the Accounting Period the variation of the Building’s Proportion agreed or determined as provided above shall take effect from the beginning of the Accounting Period next following the service of such notice

 

1.4                              “Estate Annual Service Cost” in each Accounting Period shall be the aggregate of the reasonable and proper sums expended or liabilities incurred by the Landlord in connection with the following matters together with such reserve as is provided for in paragraph 2 of this schedule:

 

(a)                                 the reasonable and proper cost of providing those Services set out in paragraph 2 of part 1 of schedule 7

 

(b)                                 the reasonable and proper cost of taking out and maintaining in force an effective insurance policy or policies against:

 

37

 

(i)                                    the Insured Risks in respect of those parts of the Estate or the facilities thereof the use and benefit of which is common to the Tenant and the tenants and occupiers of the Estate

 

(ii)                                 provided that there shall be excluded from the Estate Service Charge any claim or liability which the Landlord may reasonably deem prudent in connection with the management and/or maintenance of the Estate

 

(c)                                 the reasonable and proper cost of employing (whether by the Landlord, managing agents or any other individual firm or company) such staff as the Landlord may in its reasonable discretion deem reasonably necessary for the performance of those Services set out in paragraph 2 of part 1 of schedule 7 and all reasonable and proper incidental expenditure in relation to such employment including insurance pension and welfare contributions transport facilities the provision of uniforms and working clothes and the provision of necessary accommodation (but not residential accommodation) either on the Estate or elsewhere

 

(d)                                the amount which the Landlord shall be called upon to pay as a contribution towards the expense of repairing maintaining and cleansing all ways roads pavements sewers drains pipes water-courses party walls party structures party fences walls or other conveniences which may belong to or be used for the benefit of the Estate in common with other premises near or adjoining thereto

 

(e)                                 the reasonable cost of the carrying out of other work or providing services of any kind whatsoever which the Landlord may reasonably consider necessary for the purpose of maintaining or improving services to the Estate for the benefit of the occupiers of the Estate as a whole

 

(f)                                  all reasonable and proper fees and expenses (and any VAT payable on them) properly payable to any person firm or company (other than the Landlord) whom the Landlord may from time to time employ in connection with the general management administration security maintenance protection and cleansing of the Estate including the performance of the Landlord’s covenants and the cost of collecting the Estate Service Charge and preparing statements of the Estate Annual Service Cost provided that such fees and expenses shall riot exceed 15% of the Estate Annual Service Cost

 

(g)                                 the proper cost of complying with all statutory requirements regulations or requirements of any competent local or other authority relating to the Estate insofar as such requirements are not the obligation of the Tenant or other tenants or occupiers of the Estate

 

(h)                                the reasonable and proper cost of the Landlord of abating a nuisance in respect of the Estate or any part thereof insofar as the same is not the liability of any individual tenant

 

(i)                                    the cost of the provision of electricity for the Estate lighting system

 

(j)                                   any reasonable interest and banking charges reasonably incurred in respect of money properly borrowed to fund any deficit of the Estate Annual Service Cost

 

(k)                                the cost of keeping the lake stocked with fish

 

provided that there shall be excluded from the Estate Service Charge any expenditure on any part of the Estate for which any other tenant shall be directly responsible.

 

2.                                     Any reserve for anticipated future expenditure to be incurred in relation to the Estate Annual Services Costs as the Estate management company may reasonably deem appropriate (in accordance with the terms of the Transfer) and the amounts so provided shall form part of the Estate Annual Service Cost.

 

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3.                                     As soon as practicable after the end of each Accounting Period the Landlord will submit to the Tenant an itemised statement certified by the Auditor containing the following information:

 

3.1                              the amount of the Estate Annual Service Cost

 

3.2                              the amount of the Estate Interim Service Charge paid by the Tenant in respect of that together with any surplus carried forward from the previous Accounting Period

 

3.3                              the amount of the Estate Service Charge in respect of that Accounting Period and of any excess or deficiency of the Estate Service Charge over the Estate Interim Service Charge

 

4.                                     The Certificate of the Auditor as to the amount of the Estate Annual Service Cost and as to the amount of the Estate Service Charge in respect of the Premises in any Accounting Period shall (save in the case of manifest error) be conclusive and binding on the Landlord and the Tenant provided that the Tenant shall be entitled to inspect all invoices receipts and vouchers in respect of the Estate Annual Service Cost

 

5.                                     If the Estate Interim Service Charge paid by the Tenant in respect of any Accounting Period exceeds the Estate Service Charge for that period the surplus of the Estate interim Service Charge so paid over and above the Estate Service Charge shall be carried forward by the Landlord and credited to the account of the Tenant in computing the Estate Service Charge in succeeding Account Periods

 

6.                                     If the Estate Service Charge in respect of any Accounting Period exceeds the Estate Interim Service Charge paid by the Tenant in respect of that Accounting Period together with any surplus from previous years carried forward as aforesaid then the Tenant shall pay the excess to the Landlord within twenty eight days of service upon the Tenant of the statement referred to above and in case of default the same shall be recoverable from the Tenant as rent in arrear

 

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Schedule 9

 

Form of Authorised Guarantee Agreement

 

This Agreement is made on                                          20··

 

Between:

 

(1)                                · a [Limited (company number: ·) whose registered office is at (of] · (the “Landlord”): and

 

(2)                                · [Limited (company number: ·) whose registered office is at] [cal · (the “Tenant”)[; and][.]

 

((3)                            · a [Limited (company number: ·) whose registered office is at] (of) · (the “Guarantor”)}

 

It is agreed as follows:

 

1.                                     Definitions and interpretation

 

1.1                              In this Agreement, unless the context otherwise requires, the following definitions will apply:

 

“1954 Act” means the Landlord and Tenant Act 1954 (as amended).

 

“1995 Act” means the Landlord and Tenant (Covenants) Act 1995.

 

“2003 Order” means the Regulatory Reform (Business Tenancies) (England and Wales) Order 2003.

 

“Agreement” means this authorised guarantee agreement.

 

“Assignee” means the assignee so named in the licence to assign (of even date](dated ·].

 

“Business Day” means a day (other than a Saturday or Sunday) on which clearing banks are open for business in the City of London.

 

“Lease” means the lease of the Premises dated · made between · (1) [(and] · (2) [and · (3)] for a term of · years expiring on · (as supplemented or varied from time to time whether by deed, licence or otherwise) together with any continuation or extension of it whether by agreement, statute or otherwise.

 

“New Lease” means a new lease of the Premises on the terms set out in clause 3,2,

 

“Premises” means the premises known as · more particularly described in and demised by the Lease.

 

“Relevant Period” means the period starting on the date of assignment or transfer of the Lease to the Assignee and ending on the date when the Assignee is effectively released from the tenant covenants under the Lease by virtue of the 1995 Act,

 

“Term” means for a term of · years expiring on ·.

 

40

 

1.2                               In this Agreement, unless the context otherwise requires:

 

1.2.1.1.   the terms “authorised guarantee agreement” and “tenant covenants” have the same meanings as given in section 28(1) of the 1995 Act;

 

1.2.1.2.   a reference to:

 

1.2.1.2.1.   a “person” includes any individual, firm, body corporate, association or partnership, government or state (whether or not having a separate legal personality); and

 

1.2.1.2.2.   clauses and schedules are to clauses of and schedules to this Agreement and references to paragraphs are references to paragraphs of the schedule in which they appear;

 

1.2.1.3.   words in the singular include the plural and vice versa and words in one gender include any other gender; and

 

1.2.1.4.   the table of contents and headings are for convenience only and will not affect the interpretation of this Agreement.

 

2.                                      Authorised guarantee agreement

 

In consideration of the Landlord consenting to the assignment of the Lease by the Tenant to the Assignee the Tenant covenants with the Landlord as principal debtor and (without the need for any express assignment) with all of the Landlord’s successors in title:

 

2.1                               that during the Relevant Period the Assignee will pay the rents and other sums payable under the Lease and observe and perform all the covenants and conditions on the part of the tenant contained in the Lease, and in the event of the Assignee’s default, the Tenant will pay or observe and perform them;

 

2.2                               to indemnify the Landlord on demand against all losses, claims, demands, damages, costs and expenses incurred by the Landlord or arising as a result of any breach by the Assignee during the Relevant Period of the tenant covenants of the Lease, provided that the liability of the Tenant under this clause shall be no more onerous than the liability to which it would be subject as sole or principal obligor in respect of such tenant covenants.

 

3.                                      New lease

 

3.1                               If the Lease is disclaimed by a liquidator or a trustee in bankruptcy of the Assignee or the Assignee is wound up or ceases to exist [:

 

(a)                                 ]the Tenant will accept the New Lease from the Landlord [;and

 

3.1.1.                  the Guarantor will guarantee the performance by the Tenant of its obligations under the New Lease on the same terms as the guarantee contained in the Lease]

 

(if so required by the Landlord by written notice to the Tenant [and the Guarantor] within 6 months after the Landlord receives notice of that disclaimer or winding up or cessation of existence) and the Tenant [and the Guarantor] shall execute and deliver a counterpart of the Lease within one month after service of the Landlord’s request.

 

3.2                               The rights and obligations under the New Lease shall take effect from the date of the disclaimer or forfeiture or winding up or cessation of existence and the New Lease shall:

 

(a)                                 be for a term that expires on the same date as the Term;

 

41

 

3.2.1.                  (subject to the provisions of clause 3.3) reserve as an initial annual rent an amount equal to the rent which is reserved by the Lease on the date of the disclaimer or winding up or cessation of existence and which is subject to review on the same terms and dates provided by the Lease; [and]

 

3.2.2.                  otherwise be on terms no more onerous than the Lease.

 

3.3                               If on the commencement date of the New Lease a rent review date has occurred under the terms of the Lease but the reviewed rent has not been agreed or determined then the rent first reserved by the New Lease will initially be equal to the rent payable under the Lease immediately prior to such rent review date but the second day of the term of the New Lease will be an additional rent review date under the New Lease.

 

3.4                             The Tenant shall pay the Landlord’s solicitors costs and disbursements (on a full indemnity basis) and any VAT on them in relation to the New Lease.

 

3.5                               If the Landlord does not require the Tenant to take a new lease of the Premises, the Tenant will pay to the Landlord on demand a sum equivalent to the rents or other sums payable under the Lease for a period of 6 months or until the Landlord re-lets the Premises, whichever is the earlier.

 

4.                                      Tenant’s liability

 

4.1                               The liability of the Tenant under this Agreement will not be affected by:

 

(a)                                 any neglect or forbearance of the Landlord in enforcing payment of rents or observance or performance of any of the covenants and conditions of the Lease; or

 

4.1.1.                  any refusal by the Landlord at any time to accept any rent or other payment due under the Lease where the Landlord believes that the acceptance of such rent or payment may prejudice its ability to re-enter the Premises; or

 

4.1.2.                  the surrender by the Assignee of part of the Premises (but not so as to render the Tenant liable in relation to any part of the Premises surrendered in respect of the period after such surrender); or

 

4.1.3.                  any variation of the terms of the Lease or any other act or omission, matter or thing (other than a release by deed given by the Landlord and subject always to the provisions of section 18 of the 1995 Act) by which but for this provision the obligations of the Tenant would have been discharged or diminished.

 

4.2                               If the Tenant is more than one person then each of those persons shall be jointly and severally liable for their respective obligations arising by virtue of this Agreement.

 

5.                                      [Guarantor

 

The Guarantor consents to the provisions of this Agreement and confirms that the guarantee given by it in respect of the Tenant’s obligations under the Lease will continue in full force and effect and will extend to any obligations of the Tenant contained in this Agreement and shall cover the ultimate balance of all monies payable by the Tenant to the Landlord under the Lease and this Agreement irrespective of any intermediate payment or discharge in full or in part of the Guarantor’s obligations to the Landlord under the Lease or this Agreement.]

 

6.                                      Additional provisions

 

6.1                               The Tenant shall not claim in competition with the Landlord in any insolvency proceedings or arrangement of the Assignee in respect of any payment made by the Tenant pursuant to the guarantee and indemnity in this Agreement. If it otherwise receives any money in such proceedings or arrangement, it shall hold that money on trust for the Landlord to the extent of its liability to the Landlord.

 

6.2                               The Tenant warrants that it has not taken and covenants that it shall not take any security from or over the assets of the Assignee in respect of any liability of the Assignee to the Tenant. If it does take or hold any such security it shall hold it for the benefit of the Landlord.

 

42

 

6.3                               The Tenant shall not be entitled to claim or participate in any other security held by the Landlord in respect of the Assignee’s obligations or to stand in the Landlord’s place in respect of any such security.

 

6.4                               Provisions in this Agreement are to be construed independently and if any provision is void or wholly or partly unenforceable, then that provision, to the extent that it is unenforceable, will be deemed not to form part of this Agreement, but the validity and enforceability of the remainder of that provision or this Agreement will not be affected.

 

7.                                      Indemnity

 

The Tenant shall indemnify the Landlord against all costs and claims arising from any breach of the terms of this Agreement.

 

8.                                      Notices

 

8.1                               Any notice to a party under this Agreement 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 special delivery or fax to the address of the party as set out at the top of page 1 or as otherwise notified in writing to the other party(ies) from time to time.

 

8.2                               Except as referred to in clause 8.3, a notice is deemed to have been served;

 

(a)                                 at the time of delivery if delivered personally;

 

3.2.1.                  48 hours after posting in the case of an address in the United Kingdom and 96 hours after posting for any other address; or

 

3,2.2,                  2 hours after transmission if served by fax during normal business hours of the recipient, and at the opening of the next normal Business Day if not sent during such normal business hours.

 

If the deemed time of service is not during normal business hours in the country of receipt, the notice is deemed served at, or, in the case of faxes, two hours after the opening of business on the next Business Day of that country.

 

8.3                               The deemed service provisions set out in clause 8.2 do not apply to:

 

(a)                                 a notice served by post, if there is a national or local disruption of postal services which affects the giving of the notice; and

 

8.3.1                     a notice served by fax, if the receiving party informs the sending party that the notice has been received in a form which is unclear.

 

8.4                               A party must not attempt to prevent or delay the service on it of a notice connected with this Agreement.

 

8.5                               If the receiving party consists of more than one person then a notice to one of them is notice to all.

 

9.                                      Governing law end jurisdiction

 

9.1                               This Agreement and any dispute, claim or obligation (whether contractual or non-contractual) arising out of or in connection with it, its subject matter or formation shall be governed by English law,

 

9.2                               The parties irrevocably agree that the English courts shall have exclusive jurisdiction to settle any dispute or claim (whether contractual or neon-contractual) arising out of or in connection with this Agreement, its subject matter or formation.

 

43

 

10.                               Exclusion of third party rights

 

Unless expressly provided in this Agreement, no express term of this Agreement or any term implied under it is enforceable pursuant to the Contracts (Rights of Third Parties) Act 1999 by any person who is not a party to it,

 

In witness this Deed has been executed and delivered on the date appearing at the head of page 1.

 

44

 

Schedule 10

 

Regulations

 

1.                                      To give the Landlord names and contact details for two individuals with keys to the Premises.

 

2.                                      in the interests of security, the Landlord may:

 

(a)                                 require those attending the Building to identify themselves and who they are visiting;

 

(b)                                 prevent anyone entering the Building unless they have a key to the Premises or authority from the Tenant or the permitted occupier of the Premises;

 

(c)                                  require the Tenant or the permitted occupier of the Premises to escort any visitor between the security or reception desk and the Premises; and

 

(d)                                 prevent anyone removing anything from the Building, unless they are authorise to do so by the Landlord, the Tenant or the permitted occupier of the Building;

 

and the required authority must be produced to the person requiring it or be confirmed by a statement from the person giving it.

 

3.                                      Delivery and despatch of goods, mail and other items to the Premises and access for workmen and materials may only be made through the service areas in the Common Parts and through the service entrances, lifts, stairs and corridors (if any).

 

4.                                      Where vehicles are allowed into any service area in the Building for deliveries:

 

(a)                                 they are only allowed at the times the Landlord specifies as notified to the Tenant in writing; and

 

(b)                                 the Landlord may specify a maximum time during which any vehicle may remain there;

 

and the Landlord may remove or immobilise any vehicles not complying with this regulation.

 

5.                                      The Tenant must:

 

(a)                                 keep refuse in suitable containers; and

 

(b)                                 ensure that the containers are available for collection when the Landlord specifies.

 

6.                                      The Tenant must not allow sound from loudspeakers or other artificially generated noise to be heard outside the Premises.

 

7.                                      The Tenant must not light or maintain open fires in the Building.

 

8.                                      The Tenant must not do or allow anything that is an annoyance or disturbance to the reasonable use of the Building by the Landlord or any occupiers.

 

9.                                      If the Tenant has parking rights, it must keep the spaces clean and tidy and only use them to park taxed, insured and roadworthy cars, motorcycles or light commercial vehicles,

 

10.                               To give the Landlord all the documents end other information it needs to keep the health and safety file for the Building up to date under the Construction (Design and Management) Regulations 2007.

 

45

 

Executed as a deed by Apia Nominee I Limited

 

acting by:

 

Director

 

Director / Secretary

 

Executed as a deed by Apia Nominee 2 Limited

 

acting by:

 

Director

 

Director / Secretary

 

Executed as a deed by G W Pharrna Limited

 

acting by:

 

Director

 

Director / Secretary

 

46

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